Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 30, 2021 | Jun. 30, 2020 | |
Document and Entity Information: | |||
Entity Registrant Name | UNITED BANCSHARES INC /PA | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000944792 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 826,921 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 0 | ||
Entity Interactive Data Current | No | ||
Entity, File Number | 0-25976 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Address, Address Line One | The Graham Building | ||
Entity Address, Address Line Two | 30 South 15th Street | ||
Entity Address, Address Line Three | Suite 1200 | ||
Entity Address, City or Town | Philadelphia | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19102 | ||
City Area Code | 215 | ||
Local Phone Number | 351-4600 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 2,075,258 | $ 2,262,491 |
Interest-bearing deposits with banks | 311,995 | 311,340 |
Federal funds sold | 9,284,000 | 5,229,000 |
Cash and cash equivalents | 11,671,253 | 7,802,831 |
Investment securities, available-for-sale, at fair value | 5,144,707 | 5,578,159 |
Loans held for sale, at fair value | 10,297,168 | 7,793,785 |
Loans held at fair value | 4,450,901 | 4,207,338 |
Loans, net of unearned discounts and deferred fees | 25,725,700 | 26,835,035 |
Less allowance for loan losses | (179,949) | (300,428) |
Net loans | 25,545,751 | 26,534,607 |
Bank premises and equipment, net | 303,298 | 380,471 |
Accrued interest receivable | 153,415 | 141,453 |
Other real estate owned | 626,071 | 447,371 |
Servicing asset | 319,368 | 312,814 |
Prepaid expenses and other assets | 496,935 | 413,542 |
Total assets | 59,008,867 | 53,612,371 |
Liabilities: | ||
Demand deposits, noninterest-bearing | 19,606,017 | 14,797,174 |
Demand deposits, interest-bearing | 15,004,238 | 13,699,578 |
Savings deposits | 11,505,417 | 11,734,512 |
Time deposits, under $250,000 | 4,331,306 | 4,776,622 |
Time deposits, $250,000 and over | 5,008,276 | 5,634,280 |
Total deposits | 55,455,254 | 50,642,166 |
Accrued interest payable | 13,939 | 10,997 |
Accrued expenses and other liabilities | 259,152 | 299,293 |
Total liabilities | 55,728,345 | 50,952,456 |
Shareholders' equity: | ||
Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding | 8,269 | 8,269 |
Additional paid-in-capital | 15,677,626 | 14,752,644 |
Accumulated deficit | (12,348,988) | (12,038,281) |
Accumulated other comprehensive loss | (57,396) | (63,710) |
Total shareholders' equity | 3,280,522 | 2,659,915 |
Total liabilities and shareholders' equity | 59,008,867 | 53,612,371 |
Series A Preferred Stock | ||
Shareholders' equity: | ||
Preferred stock value | 993 | 993 |
Series B Preferred Stock | ||
Shareholders' equity: | ||
Preferred stock value | $ 18 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Common Stock, Shares, Issued | 826,921 | 826,921 |
Common Stock, Shares, Outstanding | 826,921 | 826,921 |
Series A Preferred Stock | ||
Preferred Stock, Dividend Rate, Percentage | 6.00% | 6.00% |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 500,000 | 500,000 |
Preferred Stock, Shares Issued | 99,342 | 99,342 |
Preferred Stock, Shares Outstanding | 99,342 | 99,342 |
Series B Preferred Stock | ||
Preferred Stock, Dividend Rate, Percentage | 7.00% | 7.00% |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 7,000 | 7,000 |
Preferred Stock, Shares Issued | 1,850 | 1,850 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | ||
Interest and fees on loans | $ 2,313,675 | $ 2,403,274 |
Interest on investment securities | 122,083 | 152,086 |
Interest on federal funds sold | 103,975 | 31,394 |
Interest on time deposits with other banks | 778 | 639 |
Total interest income | 2,540,511 | 2,587,393 |
Interest expense: | ||
Interest on time deposits | 40,042 | 35,733 |
Interest on demand deposits | 25,786 | 24,479 |
Interest on savings deposits | 5,853 | 5,760 |
Total interest expense | 71,681 | 65,972 |
Net interest income | 2,468,830 | 2,521,421 |
Credit to provision for loan losses | (82,000) | (69,000) |
Net interest income after credit to provision for loan losses | 2,550,830 | 2,590,421 |
Noninterest income: | ||
Customer service fees | 396,731 | 353,807 |
ATM fee income | 119,561 | 114,673 |
Loan syndication fee income | 154,402 | 150,900 |
Net loss on sale of other real estate | 0 | (3,239) |
Net change in fair value of financial instruments | 337,567 | 365,900 |
Gain on sale of loans | 387,177 | 732,411 |
Other income | 95,858 | 208,406 |
Total noninterest income | 1,491,296 | 1,922,858 |
Noninterest expense: | ||
Salaries, wages and employee benefits | 1,580,068 | 1,555,590 |
Occupancy and equipment | 995,985 | 969,532 |
Office operations and supplies | 327,032 | 330,945 |
Marketing and public relations | 23,468 | 41,280 |
Professional services | 189,875 | 301,734 |
Data processing | 400,120 | 393,525 |
Loan and collection costs | 194,783 | 169,334 |
Other real estate owned, net | 78,730 | 126,066 |
Deposit insurance assessments | 95,965 | 117,000 |
Other operating | 475,526 | 483,736 |
Total noninterest expense | 4,361,552 | 4,488,742 |
Net (loss) income before income taxes | (319,426) | 24,537 |
Provision for income taxes | 0 | 0 |
Net (loss) income | $ (319,426) | $ 24,537 |
Net (loss) income per common share-basic and diluted | $ (0.39) | $ 0.03 |
Weighted average number of common shares | 826,921 | 826,921 |
Comprehensive (Loss) | ||
Net (loss) income | $ (319,426) | $ 24,537 |
Unrealized gains (losses) on available for sale securities | 15,033 | (44,384) |
Total comprehensive loss | $ (304,393) | $ (19,847) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Series A Preferred Stock | Series B Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other comprehensive Loss | Total |
Balance at Beginning at Dec. 31, 2015 | $ 993 | $ 8,269 | $ 14,752,644 | $ (12,062,818) | $ (19,326) | $ 2,679,762 | |
Shares, Outstanding, Beginning Balance at Dec. 31, 2015 | 99,342 | 826,921 | |||||
Net income (loss) | 24,537 | 24,537 | |||||
Other comprehensive loss, net of tax | (44,384) | (44,384) | |||||
Balance at year end at Dec. 31, 2016 | $ 993 | $ 8,269 | 14,752,644 | (12,038,281) | (63,710) | 2,659,915 | |
Shares, Outstanding, Ending Balance at Dec. 31, 2016 | 99,342 | 826,921 | |||||
Net income (loss) | (319,426) | (319,426) | |||||
Other comprehensive loss, net of tax | 15,033 | 15,033 | |||||
Effect of adoption of ASU 2018-02 | 8,719 | (8,719) | |||||
Issuance of Series B Preferred Stock, value | $ 18 | 924,982 | 925,000 | ||||
Issuance of Series B Preferred Stock, shares | 1,850 | ||||||
Balance at year end at Dec. 31, 2017 | $ 993 | $ 18 | $ 8,269 | $ 15,677,626 | $ (12,348,988) | $ (57,396) | $ 3,280,522 |
Shares, Outstanding, Ending Balance at Dec. 31, 2017 | 99,342 | 1,850 | 826,921 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (319,426) | $ 24,537 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Credit to provision for loan losses | (82,000) | (69,000) |
Net loss on sale of other real estate | 0 | 3,239 |
Gain on sale of loans | (387,177) | (732,411) |
Amortization of premiums on investments | 9,594 | 13,839 |
Depreciation on fixed assets | 185,882 | 190,334 |
Write-down of other real estate owned | 4,972 | 0 |
Loans originated for sale | (4,763,580) | (13,162,229) |
Proceeds from sale of loans held-for-sale | 2,741,378 | 7,979,932 |
Amortization of servicing asset | 50,154 | 46,693 |
Net change in fair value of financial instruments | (337,567) | (365,900) |
Increase in accrued interest receivable and other assets | (159,465) | (55,608) |
Decrease in accrued interest payable and other liabilities | (37,199) | (31,782) |
Net cash used in operating activities | (3,094,434) | (6,158,356) |
Cash flows from investing activities: | ||
Purchase of available-for-sale investment securities | 0 | (4,099,785) |
Proceeds from maturities, calls and principal reductions of available-for-sale investment securities | 446,293 | 6,013,572 |
Net decrease in loans | 887,184 | 6,634,598 |
Proceeds from sale of other real estate owned | 0 | 29,017 |
Purchase of bank premises and equipment | (108,709) | (78,075) |
Net cash provided by investing activities | 1,224,768 | 8,499,327 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 4,813,088 | (5,320,238) |
Proceeds from sale of preferred stock | 925,000 | 0 |
Net cash provided by (used in) financing activities | 5,738,088 | (5,320,238) |
Net increase (decrease) in cash and cash equivalents | 3,868,422 | (2,979,267) |
Cash and cash equivalents at beginning of year | 7,802,831 | 10,782,098 |
Cash and cash equivalents at end of year | 11,671,253 | 7,802,831 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 68,739 | 64,133 |
Noncash transfer of loans to other real estate owned | $ 183,672 | $ 0 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
1. Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES United Bancshares, Inc. (“the Company”) is the holding company for United Bank of Philadelphia (the “Bank”). The Company was incorporated under the laws of the Commonwealth of Pennsylvania on April 8, 1993 and provides financial services through the Bank. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances have been eliminated. Management’s Use of Estimates The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities. Marketing and Advertising Marketing and advertising costs are expensed as incurred. Statement of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks that mature within 90 days and federal funds sold on an overnight basis. Changes in loans made to and deposits received from customers are reported on a net basis. Securities Bonds, notes, and debentures for which the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investment securities that would be held for indefinite periods of time but not necessarily to maturity, including securities that would be used as part of the Bank’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors are classified as “Available for Sale.” These securities are carried at fair value, with any temporary unrealized gains or losses reported as a separate component of other comprehensive loss, net of the related income tax effect. Gains and losses on the sale of such securities are accounted for on the specific identification basis in the statements of operations on the trade date. If transfers between the available-for-sale and held-to-maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer. For securities transferred to available-for-sale from held-to-maturity, unrealized gains and losses as of the date of the transfer are recognized in accumulated other comprehensive loss as a separate component of shareholders’ equity. For securities transferred into the held-to-maturity portfolio from available-for-sale, unrealized gains and losses as of the date of the transfer continue to be reported in accumulated other comprehensive loss, and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive loss. In evaluating whether impairment is temporary or other-than-temporary, management first considers whether the Bank intends to sell the security or it is more-likely-than-not that the Bank will be required to sell the security prior to recovery. In these circumstances, the loss is determined to be other-than-temporary and the difference between the security’s fair value and its amortized cost is reflected as a loss in the statement of operations. If management does not intend to sell the security and likely will not be required to sell the security prior to forecasted recovery, management evaluates whether it expects to recover the entire amortized cost of the debt security or if there is a credit loss. In evaluating whether there is a credit loss, management considers various qualitative factors which include (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in the fair value, and (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events. If, based on an analysis of these factors, management concludes that there is a credit loss, then management calculates the expected cash flows and records a loss in earnings equal to the difference between the amortized cost of the debt security and the expected present value of cash flows. The portion of the decline in fair value that is due to factors other than credit loss is recognized in other comprehensive loss. No investment securities held by the Bank as of December 31, 2017 and 2016 were subjected to a write-down due to credit related other-than-temporary impairment. Interest income from securities adjusted for the amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the contractual lives of the related securities. Realized gains and losses, determined using the amortized cost value of the specific securities sold, are included in noninterest income in the statement of operations. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when all the components meet the definition of a participating interest and when control over the assets has been surrendered. A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial assets, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (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 Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans Held for Sale The Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market. These loans are carried at fair value based on a loan-by-loan valuation using actual market bids for the specific loans held or for loan sales for similar assets in the marketplace that have occurred near the valuation date. Any change in the balance of the loan and its fair value is recorded as income or expense in each reporting period. When the guaranteed portion of the loan is sold, the gain on the sale is reduced by the income previously recognized as part of the fair value adjustment. Loans Held at Fair Value The Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market. Management has elected to carry these loans at fair value in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. Fair value of these loans is estimated based on the present value of future cash flows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries which is based primarily on the risk spread to LIBOR spot curve. Loans The Bank has both the positive intent and ability to hold the majority of its loans to maturity. These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses. Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount. Non-accrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due. The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more. If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash payments on nonaccrual loans are applied as principal payments. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses. Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance. When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition. Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance. An allowance for loan losses is not calculated for loans held for sale or carried at fair value. Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination. It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those 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. The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Bank does not allocate reserves for unfunded commitments to fund lines of credit. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank will identify and assess loans that may be impaired through any of the following processes: During regularly scheduled meetings of the Asset Quality Committee During regular reviews of the delinquency report During the course of routine account servicing, annual review, or credit file update Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable loan-to-value ratio Impairment is measured on a loan by loan basis for commercial loans 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. Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures. Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Amortization of leasehold improvements is computed over the shorter of the related lease term or the useful life of the assets. Income Taxes The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent on generating sufficient taxable income in the future. The Tax Cuts and Jobs Act, enacted on December 22, 2017, lowered the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the carrying value of net deferred tax assets was reduced which increased income tax expense by $1,551,000 but also reduced the valuation allowance against the net deferred tax assets by the same amount, therefore, there was no net effect on income tax expense. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. It is the Bank’s policy to recognize interest and penalties related to unrecognized tax liabilities within income tax expense in the statement of operations. The Bank does not have an accrual for uncertain tax positions as of December 31, 2017 or 2016, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Income (Loss) Per Share (“EPS”) Basic EPS excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Off-Balance-Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the financial statements when they become payable. Other Real Estate Owned Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value, net of estimated cost to sell, at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less the cost to sell. Revenue and expenses from operations and changes in valuation subsequent to the initial foreclosure are charged to operations. Segments The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the other. For example, commercial lending is dependent upon the ability of the Bank to fund it with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the 2017 presentation, with no impact on earnings or shareholders’ equity. Comprehensive Loss Comprehensive income (loss) includes net income (loss) as well as certain other items that result in a change to equity during the period. The components of accumulated other comprehensive loss are as follows: December 31, 2017 (in 000’s) Before tax Tax Net of tax amount Benefit Amount Beginning balance $ (96) $ 33 $ (63) Unrealized gain on securities 23 (8) 15 Less: reclassification adjustment for gains realized in net loss - - - Reclassification due to adoption of ASU 2018-02 - 9 (9) Other comprehensive loss, net 23 1 6 Ending balance $ (73) $ 34 $ (57) December 31, 2016 Before tax Tax Net of tax a mount Benefit Amount Beginning balance $ (30) $ 11 $ (19) Unrealized loss on securities: (66) 22 (44) Less: reclassification adjustment for gains realized in net loss - - - Other comprehensive loss, net (66) 22 (44) Ending balance $ (96) $ 33 $ (63) Effect of the Adoption of Accounting Standards In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic On February 14, 2018, the FASB finalized ASU 2018-02 - Income Statement-Reporting Comprehensive Income (Topic 220). This accounting standard allows companies to reclassify the "stranded" tax effect in accumulated other comprehensive income that resulted from the U.S. federal government enacted tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act), which requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws. The Bank has elected to adopt this accounting standard, which provides a benefit to the financial statements by more accurately aligning the impacts of the items carried in accumulated other comprehensive income with the associate tax effect. The adoption was applied on a modified retrospective basis and resulted in a one-time cumulative effect adjustment of $8,719 between Accumulated Deficit and Accumulated Other Comprehensive Loss on the Consolidated Balance Sheet as of the beginning of the current period. The adjustment had no impact on Net (Loss) Income or any prior periods presented. Effect of Upcoming Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements Leases Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements |
2. Cash and Due From Bank Balan
2. Cash and Due From Bank Balances | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
2. Cash and Due From Bank Balances | 2. CASH AND DUE FROM BANK BALANCES The Bank maintains various deposit accounts with other banks to meet normal fund transaction requirements and to compensate other banks for certain correspondent services. The withdrawal or usage restrictions of these balances did not have a significant impact on the operations of the Bank as of December 31, 2017. Required reserve balances were $100,000 as of December 31, 2017 and 2016. |
3. Investments
3. Investments | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
3. Investments | 3. INVESTMENTS The amortized cost, gross unrealized holding gains and losses, and estimated fair value of the investment securities by major security type at December 31, 2017 and 2016 are as follows: (in $000) 2017 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value U.S. Government agency securities $ 2,349 $ - $ (76) $ 2,273 Government Sponsored Enterprises residential mortgage-backed securities 2,737 21 (18) 2,740 Investments in money market funds 132 - - 132 $ 5,218 $ 21 $ (94) $ 5,145 2016 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value U.S. Government agency securities $ 2,350 $ - $ (82) $ 2,268 Government Sponsored Enterprises residential mortgage-backed securities 3,193 25 (38) 3,180 Investments in money market funds 130 - - 130 $ 5,673 $ 25 $ (120) $ 5,578 In 2017, no securities were called. In 2016, $5,450,000 in U.S. Government agencies securities were called. There were no gross gains or losses from these transactions during 2016. There were no sales of securities in 2017 and 2016. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2017 (in thousands): Number Less than 12 months 12 months or longer Total Description of Of Fair Unrealized Fair Unrealized Fair Unrealized Securities Securities value Losses Value Losses value Losses U.S. Government agency securities 7 $ 245 $ (5) $2,028 $ (71) $2,273 $ (76) Mortgage backed Securities 8 1,124 (7) 377 (11) 1,501 (18) Total temporarily impaired investment Securities 15 $1,369 $ (12) $ 2,405 $(82) $ 3,774 $ (94) The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2016 (in thousands): Number Less than 12 months 12 months or longer Total Description of Of Fair Unrealized Fair Unrealized Fair Unrealized Securities Securities Value Losses Value Losses Value Losses U.S. Government agency securities 7 $ 2,268 $ (82) $ - $ - $ 2,268 $ (82) Mortgage backed - Securities 10 2,026 (38) - - 2,026 (38) Total temporarily impaired investment Securities 17 $ 4,294 $ (120) $ - $ - $ 4,294 $ (120) U.S. Government and Agency Securities Residential Government Sponsored Enterprise Mortgage-Backed Securities The Company has a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. On a quarterly basis, we review all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. The Company considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value. Maturities of investment securities at December 31, 2017 were as follows. Expected maturities may differ from contractual maturities because the underlying mortgages supporting mortgage backed securities may be prepaid without any penalties. Consequently, mortgage-backed securities are not presented by maturity category. (In 000’s) Amortized Fair Cost Value Due in one year $ - $ - Due after one year through five years 500 483 Due after five years through ten years 1,849 1,791 Government-sponsored enterprises residential mortgage-backed securities 2,737 2,740 Total debt securities 5,086 5,013 Investments in money market funds 132 132 $ 5,218 $ 5,145 As of December 31, 2017 and 2016, investment securities with a carrying value of $4,297,000 and $4,432,000, respectively, were pledged as collateral to secure public deposits and contingent borrowing at the Federal Reserve Discount Window |
4. Loans and Allowance For Loan
4. Loans and Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
4. Loans and Allowance For Loan Losses | 4. LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the net loans is as follows: December 31, December 31, (In 000's) 2017 2016 Commercial and industrial: Commercial $ 909 $ 890 SBA loans 19 - Asset-based 870 1,259 Total commercial and industrial 1,798 2,149 Commercial real estate: Commercial mortgages 11,671 11,385 SBA loans 669 255 Construction 419 542 Religious organizations 8,630 9,306 Total commercial real estate 21,389 21,488 Consumer real estate: Home equity loans 641 799 Home equity lines of credit 17 19 1-4 family residential mortgages 1,071 1,414 Total consumer real estate 1,729 2,232 Consumer and other: Student loans 700 855 Other 109 111 Total consumer and other 809 966 Allowance for loan losses (180) (300) Loans, net $ 25,545 $ 26,535 At December 31, 2017 and 2016, the unearned discount totaled $10,858 and $10,857, respectively, and is included in the related loan accounts. Loan Origination/Risk Management Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate prudently to service the projected debt. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Bank’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable. The Bank may also seek credit enhancements for commercial and industrial loans from the Small Business Administration, Department of Transportation or other available programs. Generally, the Bank utilizes an advance formula for loans secured by eligible accounts receivable and other available programs to mitigate risk. Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed as cash flow loans first and secondarily as loans secured by real estate. Commercial real estate loans typically have higher principal amounts and the repayment of these loans is dependent on the successful operation of property securing the loan or business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The Bank tracks the level of owner occupied versus non-owner occupied loans. Typically, owner-occupied real estate loans represent less risk for the Bank. The Bank’s commercial real estate loans are largely concentrated in loans to religious organizations. These loans are generally made to these organizations are primarily for expansion and repair of church facilities (construction loans). The source of repayment is viewed as cash flow from tithes and offerings and secondarily as loans secured by real estate. The Bank’s construction lending has primarily involved lending for construction of commercial properties although the Bank does lend funds for construction of single-family residences. Construction loans are underwritten utilizing feasibility studies, independent appraisals, analysis of lease rates, and the financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates can be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Loan proceeds are disbursed during the construction phase according to a draw schedule based on the stage of completion. Construction projects are inspected by contracted inspectors or bank personnel. These loans are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, regulations of real property, general economic conditions and the availability of long-term financing. Consumer loans are underwritten after an analysis of the borrower’s past and present financial information including credit score, personal financial statements, tax returns and other information deemed necessary to calculate debt service ratios that determine the ability of a borrower to repay the loan. Minimum debt service ratios have been established by policy. Underwriting standards for home equity loans are also heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80% and documentation requirements. The Bank performs an annual loan review by an independent third party firm that reviews and validates the credit risk program. The results of these reviews are presented to the board and management. The loan review process reinforces the risk identification and assessment decisions made by lenders and credit administration personnel, as well as the Bank’s policies and procedures. Concentrations of Credit Related Party Loans 2017 2016 Balance outstanding at December 31, $ 866,934 $ 775,078 Principal additions (affiliations) - 159,974 Disaffiliations - - Principal reductions (187,322) (68,118) Balance outstanding at December 31, $ 679,612 $ 866,934 Non-accrual and Past Due Loans. An age analysis of past due loans, segregated by class of loans, as of December 31, 2017 is as follows: (In 000's) Accruing Loans Loans 90 or 30-89 Days More Days Total Past Current Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $ - $ - $ - $ - $ 909 $ 909 SBA loans - - - - 19 19 Asset-based - - 76 76 794 794 Total commercial and industrial - - 76 76 1,722 1,798 Commercial real estate: Commercial mortgages 50 208 935 1,193 10,478 11,671 SBA loans - - 81 81 588 669 Construction - - - - 419 419 Religious organizations - - 187 187 8,443 8,630 Total commercial real estate 50 208 1,203 1,461 19,928 21,389 Consumer real estate: Home equity loans 38 123 289 450 191 641 Home equity lines of credit - - - - 17 17 1-4 family residential mortgages 64 - 48 112 959 1,071 Total consumer real estate 102 123 337 561 1,168 1,729 Consumer and other: Student loans 32 55 - 87 613 700 Other 6 1 - 7 102 109 Total consumer and other 38 56 - 94 715 809 Total loans $ 190 $ 387 $ 1,616 $ 2,192 $ 23,533 $ 25,725 An age analysis of past due loans, segregated by class of loans, as of December 31, 2016 is as follows: (In 000's) Accruing Loans Loans 90 or 30-89 Days More Days Total Past Current Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $ - $ - $ 33 $ 33 $ 857 $ 890 SBA loans - - - - - - Asset-based 27 243 75 345 914 1,259 Total Commercial and industrial 27 243 108 378 1,771 2,149 Commercial real estate: Commercial mortgages - 11 1,270 1,281 10,104 11,385 SBA loans - 162 93 255 - 255 Construction - - - - 542 542 Religious organizations 110 - 196 306 9,000 9,306 Total Commercial real estate 110 173 1,559 1,842 19,646 21,488 Consumer real estate: Home equity loans - 153 345 498 301 799 Home equity lines of credit - - - - 19 19 1-4 family residential mortgages 59 - 75 134 1,280 1,414 Total consumer real estate 59 153 420 632 1,600 2,232 Total real estate Consumer and other: Student loans 38 61 - 99 756 855 Other - 1 - 1 110 111 Total consumer and other 38 62 - 100 866 966 Total loans $ 234 $ 631 $ 2,087 $ 2,952 $ 23,883 $ 26,835 Impaired Loans In accordance with guidance provided by ASC 310-10, Accounting by Creditors for Impairment of a Loan, management employs one of three methods to determine and measure impairment: the Present Value of Future Cash Flow Method; the Fair Value of Collateral Method; or the Observable Market Price of a Loan Method. To perform an impairment analysis, the Company reviews a loan’s internally assigned grade, its outstanding balance, guarantors, collateral, strategy, and a current report of the action being implemented. Based on the nature of the specific loans, one of the impairment methods is chosen for the respective loan and any impairment is determined, based on criteria established in ASC 310-10. The Company records partial charge-offs of impaired loans when the impairment is deemed permanent and is considered a loss. To date, these charge-offs have only included the unguaranteed portion of Small Business Administration (“SBA”) loans. Specific reserves are allocated to cover “other-than-permanent” impairment for which the underlying collateral value may fluctuate with market conditions. In 2017 and 2016, the Bank made partial charge-offs totaling approximately $52,000 and $41,000, respectively, related several impaired commercial real estate loans. Consumer real estate and other loans are not individually evaluated for impairment, but collectively evaluated, because they are pools of smaller balance homogeneous loans. Year-end 2017 impaired loans are set forth in the following table. (In 000’s) Unpaid Contractual Recorded Investment Recorded Investment Total Average Interest recognized Principal With No With Recorded Related Recorded on impaired Balance Allowance Allowance Investment Allowance Investment loans Commercial and industrial: Commercial $ - $ - $ - $ - $ - $ 14 $ 30 SBA - - - - - - - Asset based 76 76 - 76 - 256 - Total Commercial and industrial - - - - - 270 30 Commercial real estate: Commercial mortgages 933 933 - 933 - 1,215 - SBA Loans 81 81 - 81 - 208 10 Religious Organizations 187 187 - 187 - 191 - Total Commercial real estate 1,201 1,201 - 1,201 - 1,613 10 Total Loans $ 1,277 $ 1,277 $ - $ 1,277 $ - $ 1,883 $ 40 Year-end 2016 impaired loans are set forth in the following table. (In 000’s) Unpaid Contractual Recorded Investment Recorded Investment Total Average Interest recognized Principal With No With Recorded Related Recorded on impaired Balance Allowance Allowance Investment Allowance Investment loans Commercial and industrial: Commercial $ 33 $ 33 $ - $ 33 $ - $ 33 $ - SBA loans - - - - - 36 - Asset-based 319 319 - 319 - 361 - Total Commercial and industrial 352 352 - 352 - 430 - Commercial real estate: Commercial mortgages 1,321 808 473 1,281 54 1,303 19 SBA Loans 255 255 - 255 - 262 7 Religious Organizations 195 195 - 195 - 273 - Total Commercial real estate 1,771 1,258 473 1,731 54 1,838 26 Total Loans $ 2,123 $ 1,610 $ 473 $ 2,083 $ 54 $ 2,268 $ 26 Credit Quality Indicators ● Risk ratings of “1” through “3” are used for loans that are performing and meet and are expected to continue to meet all of the terms and conditions set forth in the original loan documentation and are generally current on principal and interest payments. Loans with these risk ratings are reflected as “Good/Excellent” and “Satisfactory” in the following table. ● Risk ratings of “4” are assigned to “Pass/Watch” loans which may require a higher degree of regular, careful attention. Borrowers may be exhibiting weaker balance sheets and positive but inconsistent cash flow coverage. Borrowers in this classification generally exhibit a higher level of credit risk and are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Loans with this rating would not normally be acceptable as new credits unless they are adequately secured and/or carry substantial guarantors. Loans with this rating are reflected as “Pass” in the following table. ● Risk ratings of “5” are assigned to “Special Mention” loans that do not presently expose the Bank to a significant degree of risks, but have potential weaknesses/deficiencies deserving Management’s closer attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. No loss of principal or interest is envisioned. Borrower is experiencing adverse operating trends, which potentially could impair debt, services capacity and may necessitate restructuring of credit. Secondary sources of repayment are accessible and considered adequate to cover the Bank's exposure. However a restructuring of the debt should result in repayment. The asset is currently protected, but is potentially weak. This category may include credits with inadequate loan agreements, control over the collateral or an unbalanced position in the balance sheet which has not reached a point where the liquidation is jeopardized but exceptions are considered material. These borrowers would have limited ability to obtain credit elsewhere. ● Risk ratings of “6” are assigned to ‘Substandard” loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets must have a well-defined weakness. They are characterized by the distinct possibility that some loss is possible if the deficiencies are not corrected. The borrower’s recent performance indicated an inability to repay the debt, even if restructured. Primary source of repayment is gone or severely impaired and the Bank may have to rely upon the secondary source. Secondary sources of repayment (e.g., guarantors and collateral) should be adequate for a full recovery. Flaws in documentation may leave the bank in a subordinated or unsecured position when the collateral is needed for the repayment. ● Risk ratings of “7” are assigned to “Doubtful” loans which have all the weaknesses inherent in those classified “Substandard” with the added characteristic that the weakness makes the collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. The borrower's recent performance indicates an inability to repay the debt. Recovery from secondary sources is uncertain. The possibility of a loss is extremely high, but because of certain important and reasonably- specific pending factors, its classification as a loss is deferred. ● Risk rating of “8” are assigned to “Loss” loans which are considered non-collectible and do not warrant classification as active assets. They are recommended for charge-off if attempts to recover will be long term in nature. This classification does not mean that an asset has no recovery or salvage value, but rather, that it is not practical or desirable to defer writing off the loss, although a future recovery may be possible. Loss should always be taken in the period in which they surface and are identified as non-collectible as a result there is no tabular presentation. For consumer and residential mortgage loans, management uses performing versus nonperforming as the best indicator of credit quality. Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to contractual terms is in doubt as well as loans that are 90 days or more past due and have not been placed on nonaccrual. These credit quality indicators are updated on an ongoing basis. A loan is placed on nonaccrual status as soon as management believes there is doubt as to the ultimate ability to collect interest on a loan. The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above. (In 000's) Commercial Loans, December 31, 2017 Good/ Excellent Special Mention Total Commercial and industrial: Commercial $ 250 $ 423 $ - $ 19 $ 217 $ - $ 909 SBA loans - - 19 - - - 19 Asset-based - 549 152 - 93 76 870 250 972 171 19 310 76 1,798 Commercial real estate: Commercial mortgages - 7,876 2,764 17 797 217 11,671 SBA Loans - 588 - - 81 - 669 Construction - 419 - - - - 419 Religious organizations 48 7,560 835 - 187 - 8,630 48 16,049 3,599 17 1,065 217 21,389 Total commercial loans $ 298 $ 17,021 $ 3,770 $ 36 $ 1,375 $ 293 $ 23,187 Residential Mortgage and Consumer Loans December 31, 2017 Performing Nonperforming Total Consumer Real Estate: Home equity $ 352 $ 289 $ 641 Home equity line of credit 17 - 17 1-4 family residential mortgages 1,023 48 1,071 1,392 337 1,729 Consumer Other: Student loans 700 - 700 Other 109 - 109 809 - 809 Total consumer loans $ 2,201 $ 337 $ 2,538 (In 000's) Commercial Loans, December 31, 2016 Good/ Excellent Special Mention Substandard Doubtful Commercial and industrial: Commercial $ 260 $ 331 $ 9 $ 38 $ 252 $ - $ 890 SBA loans - - - - - - - Asset-based - 742 198 - 243 76 1,259 260 1,073 207 38 495 76 2,149 Commercial real estate: Commercial mortgages - 8,193 1,375 537 1,059 221 11,385 SBA Loans - 2 - 160 93 - 255 Construction - 542 - - - - 542 Religious organizations 49 8,201 751 109 196 - 9,306 49 16,938 2,126 806 1,348 221 21,488 Total commercial loans $ 309 $ 18,011 $ 2,333 $ 844 $ 1,843 $ 297 $ 23,637 Residential Mortgage and Consumer Loans December 31, 2016 Performing Nonperforming Total Consumer Real Estate: Home equity $ 301 $ 498 $ 799 Home equity line of credit 19 - 19 1-4 family residential mortgages 1,339 75 1,414 1,659 573 2,232 Consumer Other: Student loans 794 61 855 Other 110 1 111 904 62 966 Total consumer loans $ 2,563 $ 635 $ 3,198 Allowance for loan losses. The determination of the allowance for loan losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance is the accumulation of three components that are calculated based on various independent methodologies that are based on management’s estimates. The three components are as follows: ● Specific Loan Evaluation Component – Includes the specific evaluation of impaired loans. ● Historical Charge-Off Component – Applies a rolling, eight-quarter historical charge-off rate to all pools of non-classified loans. ● Qualitative Factors Component – The loan portfolio is broken down into multiple homogenous sub classifications, upon which multiple factors (such as delinquency trends, economic conditions, concentrations, growth/volume trends, and management/staff ability) are evaluated, resulting in an allowance amount for each of the sub classifications. The sum of these amounts comprises the Qualitative Factors Component. All of these factors may be susceptible to significant change. There were changes in qualitative factors in 2017. During 2016, the Bank reduced several of its qualitative factors in the commercial real estate segment of the loan portfolio for which it has not experienced losses or charge-offs. Also, because the Bank is generally not originating commercial and industrial loans, the growth/volume trend factor was reduced. In general, because of the improving economy, the economic conditions factor was reduced for all categories of loans. To the extent actual outcomes differ from management’s estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods. According to the Bank’s policy, a loss (“charge-off”) is to be recognized and charged to the allowance for loan losses as soon as a loan is recognized as uncollectible. All credits that are 90 days or more past due must be analyzed for the Bank’s ability to collect the outstanding principal and/or interest. Once a loss is known to exist, the charge-off approval process must be followed for all loan types. An analysis of the activity in the allowance for loan losses for the years 2017 and 2016 is as follows: (in 000's) Year to Date ended December 31, 2017 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Beginning balance $ 68 $ 179 $ 10 $ 11 $32 $ 300 Provision for possible loan losses (65) 28 (10) (3) (32) (82) Charge-offs - (52) (18) (5) - (75) Recoveries 4 - 28 5 - 37 Net charge-offs 4 (52) 10 - - (38) Ending balance $ 7 $ 155 $ 10 $ 8 $ - $ 180 There was a decrease in the historical loss factor for commercial and industrial loans when comparing 2016 and 2017 as a result of no charge-offs during the eight rolling quarters. In addition, the average balance of commercial and industrial loans declined because of loan paydowns and a shift in strategy away from this loan type. There were no changes in qualitative factors. The overall result was a reduction in the general reserve requirement for commercial and industrial loans. There was a decrease in the historical loss factor for consumer real estate loans when comparing 2016 and 2017 as a result of a reduction in the average balance of consumer real estate loans declined as a result of loan paydowns coupled with a shift in strategy away from this loan type. There were no changes in qualitative factors. The overall result was a reduction in the general reserve requirement for consumer real estate loans. (in 000's) Year to Date ended December 31, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Beginning balance $ 151 $ 250 $ 8 $ 9 $ - $ 418 Provision for possible loan losses (87) (30) 15 1 32 (69) Charge-offs - (41) (22) (5) - (68) Recoveries 4 - 9 6 - 19 Net charge-offs 4 (41) (13) 1 - (49) Ending balance $ 68 $ 179 $ 10 $ 11 $ 32 $ 300 There was a decrease in the historical loss factor for commercial and industrial loans when comparing 2015 and 2016 because the average balance of commercial and industrial loans declined due to loan paydowns and a shift in strategy away from this loan type. There was also a reduction in the qualitative factors related to economic conditions and management ability because of improvements in each of these areas. The overall result was a reduction in the general reserve requirement for commercial and industrial loans. There was a decrease in the historical loss factor for commercial real estate loans when comparing 2015 and 2016 as a result of no charge-offs during the eight rolling quarters. In addition, the average balance of commercial real estate loans declined because of loan paydowns and a shift in strategy away from non-SBA real estate loans. There was also a reduction in the qualitative factors related to economic conditions and management ability because of improvements in each of these areas. The overall result was a reduction in the general reserve requirement for commercial and industrial loans. (in 000's) Year to Date ended December 31, 2017 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 7 155 10 8 180 $ 7 $ 155 $ 10 $ 8 $ - $ 180 Loans, ending balance: Loans individually evaluated for impairment $ 76 $ 1,201 $ - $ - $ - $1,277 Loans collectively evaluated for impairment 1,722 20,188 1,729 809 24,448 Total $ 1,798 $ 21,389 $ 1,729 $ 809 $ - $25,725 (in 000's) Year to Date ended December 31, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 54 $ - $ - $ - $54 Loans collectively evaluated for impairment 68 125 10 11 32 246 $ 68 $ 179 $ 10 $ 11 $ 32 $300 Loans, ending balance: Loans individually evaluated for impairment $ 352 $ 1,731 $ - $ - $ - $2,083 Loans collectively evaluated for impairment 1,797 19,757 2,232 966 24,752 Total $ 2,149 $ 21,488 $ 2,232 $ 966 $ - $26,835 Troubled debt restructurings |
5. Bank Premises and Equipment
5. Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
5. Bank Premises and Equipment | 5. BANK PREMISES AND EQUIPMENT The major classes of bank premises and equipment and the total accumulated depreciation are as follows at December 31: (In 000’s) Estimated useful life 2017 2016 Leasehold improvements 10-15 years $ 832 $ 832 Furniture and equipment 3- 7 years 1,439 1,332 2,271 2,164 Less accumulated depreciation (1,968) (1,784) $ 303 $ 380 Depreciation expense on fixed assets totaled $185,882 and $190,334 for the years ended December 31, 2017 and 2016, respectively. The Bank leases its facilities and certain equipment under non-cancelable operating lease agreements. The amount of expense for operating leases for the years ended December 31, 2017 and 2016 was $477,689 and $471,540, respectively. Future minimum lease payments under operating leases are as follows: (In 000’s) Year ending December 31, Operating leases 2018 503 2019 514 2020 437 2021 446 2022 371 Thereafter 204 Total minimum lease payments $2,475 |
6. Other Real Estate Owned
6. Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
6. Other Real Estate Owned | 6. Other Real Estate Owned Other real estate owned (“OREO”) consists of properties acquired as a result of deed in-lieu-of foreclosure and foreclosures. Properties or other assets are classified as OREO and are reported at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of assets are capitalized, and costs relating to holding the property are charged to expense. The following schedule reflects the components of other real estate owned at December 31, 2017 and 2016: (in 000’s) 2017 2016 Commercial real estate $ 294 $ 298 Residential real estate 332 149 Total $ 626 $ 447 A summary of the change in other real estate owned follows: (in 000’s) Year Ended December 31, 2017 Year Ended December 31, 2016 Beginning Balance $ 447 $ 480 Additions, transfers from loans 184 - Sales - (33) Subtotal 631 447 Write-ups (write-downs) (5) - Ending Balance $ 626 $ 447 The following table details the components of net expense of other real estate owned. (in 000’s) Year ended December 31, 2017 Year ended December 31, 2016 Insurance $ 15 $ 23 Legal fees - 16 Foreclosure fees - 56 Maintenance 25 - Professional fees 3 4 Real estate taxes 22 21 Utilities 3 2 Transfer-in write-up 5 - Impairment charges - - Other 5 4 Total $ 78 $ 126 |
7. Deposits
7. Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
7. Deposits | 7. DEPOSITS At December 31, 2017, the scheduled maturities of time deposits (certificates of deposit) are as follows: (In 000’s) 2018 $ 8,692 2019 326 2020 89 2021 125 2022 74 Thereafter 34 $ 9,340 The Company has a significant deposit relationship with the City of Philadelphia for which deposits totaled approximately $2.5 million at December 31, 2017. Total deposits in excess of $250,000 totaled approximately $17,010,000 and $12,150,000 at December 31, 2017 and 2016, respectively. Additionally, deposits held by related parties totaled $121,484 at December 31, 2017. |
8. Borrowings
8. Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
8. Borrowings | 8. BORROWINGS At December 31, 2017, the Bank has the ability to borrow up to $700,000 on a fully secured basis at the Discount Window of the Federal Reserve Bank for which the Bank currently has $750,000 in securities pledged. As of December 31, 2017 and 2016, the Bank had no borrowings outstanding. |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
9. Income Taxes | 9. INCOME TAXES At December 31, 2017, the Bank has net operating loss carry forwards of approximately $10,670,000 for income tax purposes that expire in 2024 through 2038. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. For financial reporting purposes, a valuation allowance of $2,505,700 and $3,914,233 as of December 31, 2017 and 2016, respectively, has been recognized to offset the net deferred tax assets related to the cumulative temporary differences and the tax loss carry forwards. Significant components of the Bank’s net deferred tax assets are as follows: December 31, (in 000’s) 2017 2016 Deferred tax assets(liabilities): Provision for loan losses $ 7 $ 36 Unrealized (loss) gain on investment securities (15) (32) Depreciation (22) (36) Net operating carryforwards 2,243 3,578 Other, net 278 326 Valuation allowance for deferred tax assets (2,506) (3,904) Net deferred tax assets $ (15) $ (32) 2017 2016 Effective rate reconciliation: Tax at statutory rate (34%) $ (109) $ 8 Change in tax rate 1,551 - Nondeductible expenses 8 9 Increase in valuation allowance (1,371) (31) True-up of NOL (74) 3 Other (5) 11 Total tax expense $ - $ - At December 31, 2017 and 2016, no valuation allowance was recorded for the deferred tax asset related to the unrealized holding losses on securities available-for-sale because the Company had the intent and the ability to hold these securities until recovery of the unrealized losses, which may be at maturity. The Company will continue to monitor its deferred tax position and may make changes to the valuation allowance recorded as circumstances change. Management has evaluated the Bank’s tax positions and concluded that the Bank has taken no uncertain tax positions that require adjustment to the financial statements. With few exceptions, the Bank is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for the years before 2014. |
10. Financial Instrument Commit
10. Financial Instrument Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
10. Financial Instrument Commitments | 10. FINANCIAL INSTRUMENT COMMITMENTS The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, which are conditional commitments issued by the Bank to guarantee the performance of an obligation of a customer to a third party. Both arrangements have credit risk essentially the same as that involved in extending loans and are subject to the Bank’s normal credit policies. Collateral may be obtained based on management’s assessment of the customer. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments is represented by the contractual amount of those instruments. A summary of the Bank’s financial instrument commitments is as follows: 2017 2016 Commitments to extend credit $4,670,000 $3,784,000 Outstanding letters of credit 317,000 317,000 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 and unused credit card lines. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
11. Fair Value Measurements
11. Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
11. Fair Value Measurements | 11. FAIR VALUE MEASUREMENTS The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Bank's various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried or disclosed at fair value in three levels as follows: Level 1 Inputs · Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs · Quoted prices for similar assets or liabilities in active markets. · Quoted prices for identical or similar assets or liabilities in markets that are not active. · Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” Level 3 Inputs · Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. · These 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 the determination of fair value requires significant management judgment or estimation. An asset’s or liability’s financial categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Value on a Recurring Basis Securities Available for Sale Loans Held for Sale Loans Held at Fair Value. Servicing Assets. Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 2) (Level 3) Investment securities available-for-sale: U.S. Government agency securities $ 2,273 $ - $2,273 $ - Government Sponsored Enterprises residential mortgage-backed securities 2,740 - 2,740 - Money Market Funds 132 132 - Total $5,145 $132 $5,013 - Loans held for sale $10,297 $ - $10,297 $ - Loans held at fair value $ 4,451 $ - $ - $4,451 Servicing asset $ 319 $ - $ - $ 319 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities available-for-sale: U.S. Government agency securities $2,268 $ - $2,268 $ - Government Sponsored Enterprises residential mortgage-backed securities 3,180 3,180 - Money Market Funds 130 130 - - Total $5,578 $130 $5,448 - Loans held for sale $7,794 $ - $7,794 - Loans held at fair value $4,207 $ - $ - $4,207 Servicing asset $313 $ - $ - $313 As of December 31, 2017 and 2016, the fair value of the Bank’s available-for-sale securities portfolio was approximately $5,145,000 and $5,578,000 respectively. All the residential mortgage-backed securities were issued or guaranteed by the Government National Mortgage Association (“GNMA”), the Federal National Mortgage Association (“FNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”). The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States. The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar instruments and model-based valuation techniques for which the significant assumptions can be corroborated by market data. There were no transfers between Level 1 and Level 2 assets during the years ended December 31, 2017 or 2016. When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include estimated cash flows, prepayment speeds, average projected loss rate and discount rates as follows: (in 000’s) Assets measured at fair value December 31, 2017 Fair value December 31, 2016 Fair value Principal valuation techniques Significant observable inputs December 31, 2017 Range of inputs December 31, 2016 Range of inputs Loans held at fair value: $4,451 $4,207 Discounted cash flow Constant prepayment rate 8.54% to 10.41 % 7.53% to 9.62 % Weighted average life 2.67 yrs. to 9.29 yrs. 3.05 yrs. to 9.95 yrs. Discount rate 9.00% to 11.62% 8.11% to 10.58 Projected default rate 0.75% to 7.61 % 0.77% to 6.64% (in 000’s) Assets measured at fair value December 31, 2017 Fair value December 31, 2016 Fair Value Principal valuation techniques Significant observable inputs December 31, 2017 Range of inputs December 31, 2016 Range of inputs Servicing asset $319 $313 Discounted cash flow Constant prepayment rate 5.58% to 10.67 % 4.89% to 9.96% Weighted average life 2.67 yrs. to 9.09 yrs. 3.05 yrs. to 9.70 yrs. Weighted average discount rate 11.75% to 19.74% 10.50% to 15.31% Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period. The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value: Loans Held at Fair Value: (in 000’s) 2017 2016 Balance at December 31, $ 4,207 $ 2,459 Origination of loans 816 2,068 Principal repayments (191) (324) Change in fair value (381) 4 Balance at December 31, $4,451 $4,207 Servicing Asset: (in 000’s) 2017 2016 Balance at December 31, $ 313 $ 200 Additions related to new loan originations 57 160 Change in fair value (51) (47) Balance at December 31, $319 $313 Fair Value on a Nonrecurring Basis Certain assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the assets carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2017 for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2017. Carrying Value at December 31, 2017: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value loss during the year ended December 31, 2017 Impaired Loans $134 - - $134 $(32) Other real estate owned $626 - - $ 626 $ - The following table presents the assets and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2016, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2016. Carrying Value at December 31, 2016: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value loss during the year ended December 31, 2016 Impaired Loans $418 - -- $418 $ - Other real estate owned $ 447 - - $ 447 $ - The Company has measured impairment on impaired loans generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. Additionally, management makes estimates about expected costs to sell the property which are also included in the net realizable value. If the fair value of the collateral dependent loan is less than the carrying amount of the loan a specific reserve for the loan is made in the allowance for loan losses or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated selling costs) and the loan is included in the table above as a Level 3 measurement. If the fair value of the collateral exceeds the carrying amount of the loan, then the loan is not included in the table above as it is not currently being carried at its fair value. At December 31, 2017 and December 31, 2016, the fair values shown above exclude estimated selling costs of $16,000 and $48,000, respectively OREO is carried at the lower of cost or fair value, which is measured at the foreclosure date. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is based on comparable sales for similar properties in the same geographic region as the subject property, and is included in the above table as a Level 2 measurement. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the loans are categorized in the above table as Level 3 measurement since these adjustments are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are included in net expenses from OREO. Fair Value of Financial Instruments FASB ASC Topic 825 “Disclosure About Fair Value of Financial Instruments”, requires the disclosure of the fair value of financial assets and liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments not carried at fair value: Cash and cash equivalents: The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values. Loans (other than impaired loans): The fair value of loans was estimated using a discounted cash flow analysis, which considered estimated prepayments, amortizations, and non-performance risk. Prepayments and discount rates were based on current marketplace estimates and rates. Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value. Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amounts payable on demand at the reporting date (e.g., their carrying amounts). The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate the fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation. The Treasury yield curve was utilized for discounting cash flows as it approximates the average marketplace certificate of deposit rates across the relevant maturity spectrum. Accrued interest payable: The carrying amounts of accrued interest payable approximate fair value. Commitments to extend credit: The carrying amounts for commitments to extend credit approximate fair value as such commitments are not substantially different from the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparts. The carrying amount of accrued interest payable approximates fair market value. The fair value of financial instruments not previously disclosed are depicted below: (in 000’s) Level in 2017 2016 Value Carrying Fair Carrying Fair Assets: Hierarchy Amount Value Amount Value Cash and cash equivalents Level 1 $11,671 $11,671 $ 7,803 $ 7,803 Loans, net of allowance for loan losses (1) 25,545 25,831 26,535 26,617 Servicing asset Level 3 319 319 313 313 Accrued interest receivable Level 2 153 153 141 141 Liabilities: Demand deposits Level 2 34,610 34,610 28,497 28,497 Savings deposits Level 2 11,505 11,505 11,735 11,735 Time deposits (2) 9,339 9,280 10,411 10,395 Accrued interest Payable Level 2 14 14 11 11 (1) Level 2 for non-impaired loans; Level 3 for certain impaired loans. (2) Level 1 for variable rate instruments, Level 3 for fixed rate instruments |
12. Consolidated Financial Info
12. Consolidated Financial Information-parent Company Only | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
12. Consolidated Financial Information-parent Company Only | 12. CONSOLIDATED FINANCIAL INFORMATION—PARENT COMPANY ONLY Condensed Balance Sheets (Dollars in thousands) 2017 2016 Assets: Cash and cash equivalents $ 38 $ - Investment in United Bank of Philadelphia 3,242 2,660 Total assets $3,280 $2,660 Shareholders’ equity: Series A preferred stock $ 1 $ 1 Common stock 8 8 Additional paid-in capital 15,677 14,753 Accumulated deficit (12,349) (12,038) Net unrealized holding losses on securities available-for-sale (57) (64) Total shareholders’ equity $3,280 $2,660 Condensed Statements of Operations Years ended December 31, (Dollars in thousands) 2017 2016 Net loss $ (12) $ - Equity in net (loss) income of subsidiary (307) $ 25 Net (loss) income $ (319) $ 25 Years ended December 31, (Dollars in thousands) 2017 2016 Cash flows from operating activities: Net (loss) income $ (319) $ 25 Adjustments: Equity in net income (loss) of subsidiary 307 (25) Net cash used in operating activities (12) - Cash flows from investing activities: Investment in subsidiary (875) - Total cash flows from investing activities (875) - Cash flows from financing activities: Issuance of Series B Preferred Stock 925 - Total cash flows from financing activities 925 - Cash and cash equivalents at beginning of year - - Cash and cash equivalents at end of year $ 38 $ - |
13. Regulatory Matters
13. Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
13. Regulatory Matters | 13. REGULATORY MATTERS The Bank engages in the commercial banking business, with a particular focus on serving African Americans, Hispanics and women, and is subject to substantial competition from financial institutions in the Bank’s service area. As a bank holding company and a banking subsidiary, the Company and the Bank, respectively, are subject to regulation by the FDIC and the Pennsylvania Department of Banking (“PADOB”) and are required to maintain capital requirements established by those regulators. Effective January 1, 2010, the FDIC became the Bank’s primary regulator after it voluntarily surrendered its Federal Reserve Membership. Prompt corrective actions may be taken by those regulators against banks that do not meet minimum capital requirements. Prompt corrective actions range from restriction or prohibition of certain activities to the appointment of a receiver or conservator of an institution’s net assets. 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 Bank’s financial statements. Under capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices, the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total Tier I capital (as defined in the regulations) for capital adequacy purposes to risk-weighted assets (as defined). The most recent notification as of December 31, 2017, from the FDIC and PADOB categorized the Bank as “well capitalized” under the regulatory framework for prompt and corrective action due to the Consent Orders described below. The Bank’s growth and other operating factors such as the need for additional provisions to the allowance for loans losses may have an adverse effect on its capital ratios. The Company and the Bank’s actual capital amounts and ratios are as follow as of December 31, 2017: (In 000’s) Actual Minimum to be Well Capitalized Minimum to be Adequately Capitalized Amount Ratio Amount Ratio Amount Ratio Total (Tier II) capital to risk weighted assets: Company $3,338 10.22% N/A Bank 3,300 10.11 3,265 10.0% $2,612 8.00% Tier I capital to risk weighted assets Company 3,158 9.67 N/A Bank 3,120 9.56 2,612 8.00% 1,959 6.00% Common equity Tier I capital to risk weighted assets Company 3,158 9.67 N/A Bank 3,120 9.56 2,122 6.50% 1,469 4.50% Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company 3,158 5.58 N/A Bank 3,120 5.51 2,829 5.00% 2,263 4.00% Tangible common equity to tangible assets Company 3,158 5.58 N/A N/A N/A N/A Bank 3,120 5.51 N/A N/A N/A N/A The Company and the Bank’s actual capital amounts and ratios are as follow as of December 31, 2016: (In 000’s) Actual Minimum to be Well Capitalized Minimum to be Adequately Capitalized Amount Ratio Amount Ratio Amount Ratio Total (Tier II) capital to risk weighted assets: Company $2,897 9.08% N/A Bank 2,897 9.08 3,190 10.00% $2,552 8.00% Tier I capital to risk weighted assets Company 2,597 8.14 N/A Bank 2,597 8.14 2,074 8.00% $1,914 6.00% Common equity Tier I capital to risk weighted assets Company 2,597 8.14 N/A Bank 2,597 8.14 2,074 6.50% $1,436 4.50% Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company 2,597 4.82 N/A Bank 2,597 4.82 2,692 5.00% $2,154 4.00% Tangible common equity to tangible assets Company 2,597 4.82 N/A N/A N/A N/A Bank 2,597 4.82 N/A N/A N/A N/A On April 25, 2018, the Bank entered into stipulations consenting to the issuance of amended and restated Consent Orders with the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“Department”) which serve as a prescriptive Restoration Plan providing benchmarks for capital, earnings and asset quality. The material terms of the Consent Orders are identical. The requirements and status of items included in the Orders are as follows: The Orders will remain in effect until modified or terminated by the FDIC and the Department and do not restrict the Bank from transacting its normal banking business. The Bank will continue to serve its customers in all areas including making loans, establishing lines of credit, accepting deposits and processing banking transactions. Customer deposits remain fully insured to the highest limits set by the FDIC. The FDIC and the Department did not impose or recommend any monetary penalties in connection with the Consent Orders. The Board of Directors is optimistic about the Bank’s ability to achieve the requirements as stated. These Orders represent a more tailored approach by regulators to strengthen and preserve minority-owned financial institutions like United Bank of Philadelphia. The priority for the Board of Directors and management is to comply with the Order promptly. The requirements of the Orders are as follows: · Increase participation of the Bank’s board of directors in the Bank’s affairs by having the board assume full responsibility for approving the Bank’s policies and objectives and for supervising the Bank’s management; · Have and retain qualified management, and notify the FDIC and the Department of any changes in the Bank’s board of directors or senior executive officers. Add two additional board members with banking experience. · Complete audited financial statements for 2016, 2017, and 2018. · Formulate and implement a Restoration/Strategic Plan to increase profitability reduce expenses and improve operating performance and related ratios. · Develop and implement a Strategic Plan for each year during which the orders are in effect, to be revised Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, by September 2019; · Formulate a written plan to improve asset quality and reduce the Bank’s risk positions in assets classified as “Doubtful” or “Substandard” at its regulatory examination; · Eliminate all assets classified as “Loss” at its current regulatory examination; · Refrain from accepting any brokered deposits; Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the Orders. · Refrain from paying cash dividends without prior approval of the FDIC and the Department; As of December 31, 2017 and December 31, 2016, the Bank’s tier one leverage capital ratio was 5.51% and 4.82%, respectively, and its total risk based capital ratio was 10.11% and 9.08%, respectively. These ratios are below the levels required by the Consent Orders. Management is in the process of addressing all matters outlined in the Consent Orders. The net loss during the quarter resulted in a decrease in the capital ratios. Management has developed and submitted a Capital Plan that focuses on the following: · Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital. · External equity investments—During 2017, the Company received external investments of $925,000 and from other financial institutions. External capital investments will continue to be sought. · Performance grants---Management has developed a performance grant strategy to attract funding based on economic impact and job creation/retention. The goal is to obtain grant funding from local entities that are seeking a “return on impact”. In April 2019, the Bank received a $2.5 million economic stimulus grant from the City of Philadelphia. Also, in September 2020, the Bank received a grant totaling $3.4 million from the Pennsylvania CDFI Network to provide financial assistance related to potential losses related to the COVID-19 pandemic. Approximately $2.8 million of this grant was recorded as contributed capital and $617,000 was recorded as deferred revenue. The deferred revenue portion of the grant was allocated to be used to make principal and interest payments for up to six months for struggling small businesses in the Bank’s loan portfolio. As a result of the above actions, management believes that the Bank has and will be able to comply with the terms and conditions of the Orders. |
14. Commitments and Contingenci
14. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
14. Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES The Bank is a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company. |
15. Subsequent Events
15. Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
15. Subsequent Events | 15. SUBSEQUENT EVENTS In December 31, 2018, there was a significant decline in asset quality that resulted in fair value write-downs of defaulted SBA loans totaling $473,000. In addition, an increase of $139,000 in specific reserves related to non-SBA loans was required due to an increase in impaired loan exposure. These write-downs resulted in a reduction in the Bank’s Tier 1 Capital Ratio to 3.75%, below the minimum of 4% considered to be “adequately” capitalized. In April 2019, the Bank received an economic stimulus grant from the City of Philadelphia of $2,500,000 that served to improve its Tier I leverage capital ratio. At December 31, 2019, the Bank’s tier one leverage capital ratio was 5.66% and its total risk based capital ratio was 11.91% that is considered “adequately capitalized” under the regulatory framework for prompt and corrective action. The Bank’s growth and other operating factors such as the need for additional provisions to the allowance for loans losses may have an adverse effect on its capital ratios. Beginning in March 2020, the onset of the COVID-19 pandemic has had an adverse economic effect on a global, national, and local level. Following the outbreak, market interest rates have declined significantly, as the 10-year Treasury bond fell below 1.00% in early March 2020 that could lead to a reduction in the Bank’s net interest margin. In addition, this event may adversely affect asset quality related to the Company’s small business loan customers that have been affected by a reduction in their business operations because of government-imposed restrictions. As a result, the Company has deferred loan payments as necessary for those customers that have been impacted by the pandemic. The pandemic has also affected the way that the Company is conducting business. Since notice of the pandemic, the Company has temporarily closed its Center City branch office and consolidated all customer service activity at its Progress Plaza branch. In addition, the Company has maintained limited on site presence of four employees or less in the Lending Department while all other employees work remotely in an effort to slow the spread of the pandemic. The full extent of the effect of the pandemic is not yet known. In September 2020, the Bank received a grant totaling $3.4 million from the Pennsylvania CDFI Network to provide financial assistance related to potential losses related to the COVID-19 pandemic. Approximately $2.8 million of this grant was recorded as contributed capital and $617,000 was recorded as deferred revenue. The deferred revenue portion of the grant was allocated to be used to make principal and interest payments for up to six months for struggling small businesses in the Bank’s loan portfolio. At December 31, 2018, there was a significant decline in asset quality that resulted in fair value write-downs of defaulted SBA loans totaling $473,000. In addition, an increase of $139,000 in specific reserves related to non-SBA loans was required due to an increase in impaired loan exposure. These write-downs resulted in a reduction in the Bank’s tier one capital ratio to 3.75%, below the minimum of 4% considered to be “adequately”. At September 30, 2020, the Bank’s tier one leverage capital ratio was 10.59% and its total risk based capital ratio was 21.17% which is considered “well capitalized” under the regulatory framework for prompt and corrective action. |
16. Earnings Per Share Computa
16. Earnings Per Share Computation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
16. Earnings Per Share Computation | 16. EARNINGS PER SHARE COMPUTATION Net income (loss) per common share is calculated as follows: Year ended December 31, 2017 Loss Shares Per share (numerator) (denominator) amount Net loss $ (319,426) Basic EPS Income attributable to common stockholders $ (319,426) 826,921 $(0.39) Diluted EPS Income attributable to common stockholders $ (319,426) 826,921 $ (0.39) Year ended December 31, 2016 Loss Shares Per share (numerator) (denominator) amount Net income $ 24,537 Basic EPS Income attributable to common stockholders $ 24,537 826,921 $ 0.03 Diluted EPS Income attributable to common stockholders $ 24,537 826,921 $ 0.03 There were no common stock equivalents for the years December 31, 2017 and 2016. The preferred stock is non-cumulative and the Company is restricted from paying dividends. Therefore, no effect of the preferred stock is included in the earnings per share calculations. |
17. Summary of Quarterly Result
17. Summary of Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
17. Summary of Quarterly Results (unaudited) | 17. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) The following summarizes the company’s consolidated results of operations during 2017 and 2016, on a quarterly basis: (Dollars in thousands) 2017 Fourth Third Second First Quarter Quarter Quarter Quarter Interest income $ 651 $ 674 $ 583 $633 Interest expense 20 19 16 17 Net interest income 631 655 567 616 Provision (credit) for loan losses 9 (15) (46) (30) Net interest after provision (credit) for loan losses 622 670 613 646 Noninterest income 453 490 307 241 Noninterest expense 1,105 1,131 1,035 1,090 Net (loss) income $ (30) $ 29 $ (115) $ (203) Basic (loss) income per common share $ (0.03) $ 0.03 $(0.14) $ (0.25) Diluted (loss) income per common share $ (0.03) $ 0.03 $(0.14) $ (0.25) (Dollars in thousands) 2016 Fourth Third Second First Quarter Quarter Quarter Quarter Interest income $ 614 $ 642 $ 737 $593 Interest expense 17 17 16 16 Net interest income 597 625 721 577 Provision (credit) for loan losses (19) (45) 30 (35) Net interest after provision (credit) for loan losses 616 670 691 612 Noninterest income 538 392 705 288 Noninterest expense 1,146 1,162 1,080 1,099 Net income (loss) $ 8 $ (100) $ 316 $ (199) Basic income (loss) per common share $ 0.01 $ (0.12) $0.38 $ (0.24) Diluted income (loss) per common share $ 0.01 $ (0.12) $0.38 $ (0.24) |
18. Going Concern
18. Going Concern | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
18. Going Concern | 18. GOING CONCERN The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in its consolidated financial statements, the Company reported a net loss of approximately $319,000 for the year ended December 31, 2017 and net income of approximately $25,000 for the year ended December 31, 2016. Further, the Company has entered into Consent Orders with the FDIC and the Department that, among other provisions, require the Bank to increase its tier one leverage capital ratio to 8.00% and its total risk based capital ratio to 12.50%. As of December 31, 2017, the Bank’s tier one leverage capital ratio was 5.51% and its total risk based capital ratio was 10.11%. Assuming no change in average assets, the Bank’s capital would need to decline by $857,000 to be less than adequately capitalized. The Bank’s failure to comply with the terms of the Consent Orders could result in additional regulatory supervision and/or actions. The ability of the Bank to continue as a going concern is dependent on many factors, including achieving required capital levels, earnings and fully complying with the Consent Orders. The Consent Orders raise substantial doubt about the Company’s ability to continue as a going concern. Management has developed a plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern. This plan is primarily based on the following: · Increase earnings: Core profitability is essential to stop the erosion of capital. Noninterest income will continue to be an important element of the Bank’s earnings enhancement plan, specifically noninterest income from SBA loans will continue to be an important income strategy for the Bank. In addition, management will seek to reduce noninterest expense by reducing targeted areas of overhead including the closure of the Mount Airy branch in 2018 as well as the projected recovery of SBA loan fair value write-downs and other cost reduction strategies. During 2018 and 2019, there were SBA fair value write-downs on defaulted loans that totaled more than $1 million. Management has developed forbearance agreements and implemented other collection strategies including the sale of underlying collateral to mitigate the exposure on these loans that will result in the reversal of some fair value write-downs. · Strengthen Capital: A concentrated effort will continue to be made to stabilize and strengthen the Bank’s capital. Management has identified potential sources of external capital that have been received in 2020. This capital will be used to further strengthen the Bank’s balance sheet. · Comply with the Consent Orders: Management has developed a Restoration Plan to address matters outlined in the Consent Orders including strengthening management, asset quality, profitability and capital. This plan received a “non-objection” from the Bank’s primary regulators in February 2020. Management plans to implement the Restoration Plan in an attempt to comply with the terms and conditions of the Orders. Based on management’s assessment of the Company’s ability to alleviate the substantial doubt about the its ability to continue as a going concern, these consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policy Text Block [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances have been eliminated. |
Management's Use of Estimates | Management’s Use of Estimates The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities. |
Marketing and Advertising | Marketing and Advertising Marketing and advertising costs are expensed as incurred. |
Statement of Cash Flows | Statement of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks that mature within 90 days and federal funds sold on an overnight basis. Changes in loans made to and deposits received from customers are reported on a net basis. |
Securities | Securities Bonds, notes, and debentures for which the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investment securities that would be held for indefinite periods of time but not necessarily to maturity, including securities that would be used as part of the Bank’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors are classified as “Available for Sale.” These securities are carried at fair value, with any temporary unrealized gains or losses reported as a separate component of other comprehensive loss, net of the related income tax effect. Gains and losses on the sale of such securities are accounted for on the specific identification basis in the statements of operations on the trade date. If transfers between the available-for-sale and held-to-maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer. For securities transferred to available-for-sale from held-to-maturity, unrealized gains and losses as of the date of the transfer are recognized in accumulated other comprehensive loss as a separate component of shareholders’ equity. For securities transferred into the held-to-maturity portfolio from available-for-sale, unrealized gains and losses as of the date of the transfer continue to be reported in accumulated other comprehensive loss, and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive loss. In evaluating whether impairment is temporary or other-than-temporary, management first considers whether the Bank intends to sell the security or it is more-likely-than-not that the Bank will be required to sell the security prior to recovery. In these circumstances, the loss is determined to be other-than-temporary and the difference between the security’s fair value and its amortized cost is reflected as a loss in the statement of operations. If management does not intend to sell the security and likely will not be required to sell the security prior to forecasted recovery, management evaluates whether it expects to recover the entire amortized cost of the debt security or if there is a credit loss. In evaluating whether there is a credit loss, management considers various qualitative factors which include (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in the fair value, and (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events. If, based on an analysis of these factors, management concludes that there is a credit loss, then management calculates the expected cash flows and records a loss in earnings equal to the difference between the amortized cost of the debt security and the expected present value of cash flows. The portion of the decline in fair value that is due to factors other than credit loss is recognized in other comprehensive loss. No investment securities held by the Bank as of December 31, 2017 and 2016 were subjected to a write-down due to credit related other-than-temporary impairment. Interest income from securities adjusted for the amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the contractual lives of the related securities. Realized gains and losses, determined using the amortized cost value of the specific securities sold, are included in noninterest income in the statement of operations. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when all the components meet the definition of a participating interest and when control over the assets has been surrendered. A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial assets, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (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 Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Loans Held For Sale | Loans Held for Sale The Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market. These loans are carried at fair value based on a loan-by-loan valuation using actual market bids for the specific loans held or for loan sales for similar assets in the marketplace that have occurred near the valuation date. Any change in the balance of the loan and its fair value is recorded as income or expense in each reporting period. When the guaranteed portion of the loan is sold, the gain on the sale is reduced by the income previously recognized as part of the fair value adjustment. |
Loans Held At Fair Value | Loans Held at Fair Value The Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market. Management has elected to carry these loans at fair value in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. Fair value of these loans is estimated based on the present value of future cash flows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries which is based primarily on the risk spread to LIBOR spot curve. |
Loans | Loans The Bank has both the positive intent and ability to hold the majority of its loans to maturity. These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses. Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount. |
Non-accrual and Past Due Loans. | Non-accrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due. The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more. If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Cash payments on nonaccrual loans are applied as principal payments. |
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. Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance. When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition. Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance. An allowance for loan losses is not calculated for loans held for sale or carried at fair value. Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination. It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those 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. The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Bank does not allocate reserves for unfunded commitments to fund lines of credit. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank will identify and assess loans that may be impaired through any of the following processes: · During regularly scheduled meetings of the Asset Quality Committee · During regular reviews of the delinquency report · During the course of routine account servicing, annual review, or credit file update · Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable loan-to-value ratio Impairment is measured on a loan by loan basis for commercial loans 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. Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Amortization of leasehold improvements is computed over the shorter of the related lease term or the useful life of the assets. |
Income Taxes | Income Taxes The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent on generating sufficient taxable income in the future. The Tax Cuts and Jobs Act, enacted on December 22, 2017, lowered the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the carrying value of net deferred tax assets was reduced which increased income tax expense by $1,551,000 but also reduced the valuation allowance against the net deferred tax assets by the same amount, therefore, there was no net effect on income tax expense. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. It is the Bank’s policy to recognize interest and penalties related to unrecognized tax liabilities within income tax expense in the statement of operations. The Bank does not have an accrual for uncertain tax positions as of December 31, 2017 or 2016, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. |
Income (Loss) Per Share (“EPS”) | Income (Loss) Per Share (“EPS”) Basic EPS excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. |
Off-Balance-Sheet Financial Instruments | Off-Balance-Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the financial statements when they become payable. |
Other Real Estate Owned | Other Real Estate Owned Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value, net of estimated cost to sell, at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less the cost to sell. Revenue and expenses from operations and changes in valuation subsequent to the initial foreclosure are charged to operations. |
Segments | Segments The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the other. For example, commercial lending is dependent upon the ability of the Bank to fund it with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the 2017 presentation, with no impact on earnings or shareholders’ equity. |
Comprehensive Loss | Comprehensive Loss Comprehensive income (loss) includes net income (loss) as well as certain other items that result in a change to equity during the period. The components of accumulated other comprehensive loss are as follows: December 31, 2017 (in 000’s) Before tax Tax Net of tax amount Benefit Amount Beginning balance $ (96) $ 33 $ (63) Unrealized gain on securities 23 (8) 15 Less: reclassification adjustment for gains realized in net loss - - - Reclassification due to adoption of ASU 2018-02 - 9 (9) Other comprehensive loss, net 23 1 6 Ending balance $ (73) $ 34 $ (57) December 31, 2016 Before tax Tax Net of tax a mount Benefit Amount Beginning balance $ (30) $ 11 $ (19) Unrealized loss on securities: (66) 22 (44) Less: reclassification adjustment for gains realized in net loss - - - Other comprehensive loss, net (66) 22 (44) Ending balance $ (96) $ 33 $ (63) |
Effect of the Adoption of Accounting Standards | Effect of the Adoption of Accounting Standards In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic On February 14, 2018, the FASB finalized ASU 2018-02 - Income Statement-Reporting Comprehensive Income (Topic 220). This accounting standard allows companies to reclassify the "stranded" tax effect in accumulated other comprehensive income that resulted from the U.S. federal government enacted tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act), which requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws. The Bank has elected to adopt this accounting standard, which provides a benefit to the financial statements by more accurately aligning the impacts of the items carried in accumulated other comprehensive income with the associate tax effect. The adoption was applied on a modified retrospective basis and resulted in a one-time cumulative effect adjustment of $8,719 between Accumulated Deficit and Accumulated Other Comprehensive Loss on the Consolidated Balance Sheet as of the beginning of the current period. The adjustment had no impact on Net (Loss) Income or any prior periods presented. |
Effect of Upcoming Accounting Standards | Effect of Upcoming Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements Leases Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Components of Other Comprehensive Loss | Comprehensive income (loss) includes net income (loss) as well as certain other items that result in a change to equity during the period. The components of accumulated other comprehensive loss are as follows: December 31, 2017 (in 000’s) Before tax Tax Net of tax amount Benefit Amount Beginning balance $ (96) $ 33 $ (63) Unrealized gain on securities 23 (8) 15 Less: reclassification adjustment for gains realized in net loss - - - Reclassification due to adoption of ASU 2018-02 - 9 (9) Other comprehensive loss, net 23 1 6 Ending balance $ (73) $ 34 $ (57) December 31, 2016 Before tax Tax Net of tax a mount Benefit Amount Beginning balance $ (30) $ 11 $ (19) Unrealized loss on securities: (66) 22 (44) Less: reclassification adjustment for gains realized in net loss - - - Other comprehensive loss, net (66) 22 (44) Ending balance $ (96) $ 33 $ (63) |
3. Investments (Tables)
3. Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized holding gains and losses, and estimated fair value of the investment securities by major security type at December 31, 2017 and 2016 are as follows: (in $000) 2017 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value U.S. Government agency securities $ 2,349 $ - $ (76) $ 2,273 Government Sponsored Enterprises residential mortgage-backed securities 2,737 21 (18) 2,740 Investments in money market funds 132 - - 132 $ 5,218 $ 21 $ (94) $ 5,145 2016 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value U.S. Government agency securities $ 2,350 $ - $ (82) $ 2,268 Government Sponsored Enterprises residential mortgage-backed securities 3,193 25 (38) 3,180 Investments in money market funds 130 - - 130 $ 5,673 $ 25 $ (120) $ 5,578 |
Schedule of Continuous Unrealized Loss Positions on Held-To-Maturity Investments | The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2017 (in thousands): Number Less than 12 months 12 months or longer Total Description of Of Fair Unrealized Fair Unrealized Fair Unrealized Securities Securities value Losses Value Losses value Losses U.S. Government agency securities 7 $ 245 $ (5) $2,028 $ (71) $2,273 $ (76) Mortgage backed Securities 8 1,124 (7) 377 (11) 1,501 (18) Total temporarily impaired investment Securities 15 $1,369 $ (12) $ 2,405 $(82) $ 3,774 $ (94) The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2016 (in thousands): Number Less than 12 months 12 months or longer Total Description of Of Fair Unrealized Fair Unrealized Fair Unrealized Securities Securities Value Losses Value Losses Value Losses U.S. Government agency securities 7 $ 2,268 $ (82) $ - $ - $ 2,268 $ (82) Mortgage backed - Securities 10 2,026 (38) - - 2,026 (38) Total temporarily impaired investment Securities 17 $ 4,294 $ (120) $ - $ - $ 4,294 $ (120) |
Schedule of Investments Classified by Contractual Maturity Date | (In 000’s) Amortized Fair Cost Value Due in one year $ - $ - Due after one year through five years 500 483 Due after five years through ten years 1,849 1,791 Government-sponsored enterprises residential mortgage-backed securities 2,737 2,740 Total debt securities 5,086 5,013 Investments in money market funds 132 132 $ 5,218 $ 5,145 |
4. Loans and Allowance For Lo_2
4. Loans and Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of the Composition of Net Loans | The composition of the net loans is as follows: December 31, December 31, (In 000's) 2017 2016 Commercial and industrial: Commercial $ 909 $ 890 SBA loans 19 - Asset-based 870 1,259 Total commercial and industrial 1,798 2,149 Commercial real estate: Commercial mortgages 11,671 11,385 SBA loans 669 255 Construction 419 542 Religious organizations 8,630 9,306 Total commercial real estate 21,389 21,488 Consumer real estate: Home equity loans 641 799 Home equity lines of credit 17 19 1-4 family residential mortgages 1,071 1,414 Total consumer real estate 1,729 2,232 Consumer and other: Student loans 700 855 Other 109 111 Total consumer and other 809 966 Allowance for loan losses (180) (300) Loans, net $ 25,545 $ 26,535 |
Schedule of Activity in Related Party Loans | Activity in related party loans is presented in the following table. 2017 2016 Balance outstanding at December 31, $ 866,934 $ 775,078 Principal additions (affiliations) - 159,974 Disaffiliations - - Principal reductions (187,322) (68,118) Balance outstanding at December 31, $ 679,612 $ 866,934 |
Schedule of Age Analysis of Past Due Loans | An age analysis of past due loans, segregated by class of loans, as of December 31, 2017 is as follows: (In 000's) Accruing Loans Loans 90 or 30-89 Days More Days Total Past Current Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $ - $ - $ - $ - $ 909 $ 909 SBA loans - - - - 19 19 Asset-based - - 76 76 794 794 Total commercial and industrial - - 76 76 1,722 1,798 Commercial real estate: Commercial mortgages 50 208 935 1,193 10,478 11,671 SBA loans - - 81 81 588 669 Construction - - - - 419 419 Religious organizations - - 187 187 8,443 8,630 Total commercial real estate 50 208 1,203 1,461 19,928 21,389 Consumer real estate: Home equity loans 38 123 289 450 191 641 Home equity lines of credit - - - - 17 17 1-4 family residential mortgages 64 - 48 112 959 1,071 Total consumer real estate 102 123 337 561 1,168 1,729 Consumer and other: Student loans 32 55 - 87 613 700 Other 6 1 - 7 102 109 Total consumer and other 38 56 - 94 715 809 Total loans $ 190 $ 387 $ 1,616 $ 2,192 $ 23,533 $ 25,725 An age analysis of past due loans, segregated by class of loans, as of December 31, 2016 is as follows: (In 000's) Accruing Loans Loans 90 or 30-89 Days More Days Total Past Current Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $ - $ - $ 33 $ 33 $ 857 $ 890 SBA loans - - - - - - Asset-based 27 243 75 345 914 1,259 Total Commercial and industrial 27 243 108 378 1,771 2,149 Commercial real estate: Commercial mortgages - 11 1,270 1,281 10,104 11,385 SBA loans - 162 93 255 - 255 Construction - - - - 542 542 Religious organizations 110 - 196 306 9,000 9,306 Total Commercial real estate 110 173 1,559 1,842 19,646 21,488 Consumer real estate: Home equity loans - 153 345 498 301 799 Home equity lines of credit - - - - 19 19 1-4 family residential mortgages 59 - 75 134 1,280 1,414 Total consumer real estate 59 153 420 632 1,600 2,232 Total real estate Consumer and other: Student loans 38 61 - 99 756 855 Other - 1 - 1 110 111 Total consumer and other 38 62 - 100 866 966 Total loans $ 234 $ 631 $ 2,087 $ 2,952 $ 23,883 $ 26,835 |
Schedule of Impaired Loans | Year-end 2017 impaired loans are set forth in the following table. (In 000’s) Unpaid Contractual Recorded Investment Recorded Investment Total Average Interest recognized Principal With No With Recorded Related Recorded on impaired Balance Allowance Allowance Investment Allowance Investment loans Commercial and industrial: Commercial $ - $ - $ - $ - $ - $ 14 $ 30 SBA - - - - - - - Asset based 76 76 - 76 - 256 - Total Commercial and industrial - - - - - 270 30 Commercial real estate: Commercial mortgages 933 933 - 933 - 1,215 - SBA Loans 81 81 - 81 - 208 10 Religious Organizations 187 187 - 187 - 191 - Total Commercial real estate 1,201 1,201 - 1,201 - 1,613 10 Total Loans $ 1,277 $ 1,277 $ - $ 1,277 $ - $ 1,883 $ 40 Year-end 2016 impaired loans are set forth in the following table. (In 000’s) Unpaid Contractual Recorded Investment Recorded Investment Total Average Interest recognized Principal With No With Recorded Related Recorded on impaired Balance Allowance Allowance Investment Allowance Investment loans Commercial and industrial: Commercial $ 33 $ 33 $ - $ 33 $ - $ 33 $ - SBA loans - - - - - 36 - Asset-based 319 319 - 319 - 361 - Total Commercial and industrial 352 352 - 352 - 430 - Commercial real estate: Commercial mortgages 1,321 808 473 1,281 54 1,303 19 SBA Loans 255 255 - 255 - 262 7 Religious Organizations 195 195 - 195 - 273 - Total Commercial real estate 1,771 1,258 473 1,731 54 1,838 26 Total Loans $ 2,123 $ 1,610 $ 473 $ 2,083 $ 54 $ 2,268 $ 26 |
Schedule of Bank Loans by Class According to Credit Quality | The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above. (In 000's) Commercial Loans, December 31, 2017 Good/Excellent Special Mention Total Commercial and industrial: Commercial $ 250 $ 423 $ - $ 19 $ 217 $ - $ 909 SBA loans - - 19 - - - 19 Asset-based - 549 152 - 93 76 870 250 972 171 19 310 76 1,798 Commercial real estate: Commercial mortgages - 7,876 2,764 17 797 217 11,671 SBA Loans - 588 - - 81 - 669 Construction - 419 - - - - 419 Religious organizations 48 7,560 835 - 187 - 8,630 48 16,049 3,599 17 1,065 217 21,389 Total commercial loans $ 298 $ 17,021 $ 3,770 $ 36 $ 1,375 $ 293 $ 23,187 Residential Mortgage and Consumer Loans December 31, 2017 Performing Nonperforming Total Consumer Real Estate: Home equity $ 352 $ 289 $ 641 Home equity line of credit 17 - 17 1-4 family residential mortgages 1,023 48 1,071 1,392 337 1,729 Consumer Other: Student loans 700 - 700 Other 109 - 109 809 - 809 Total consumer loans $ 2,201 $ 337 $ 2,538 (In 000's) Commercial Loans, December 31, 2016 Good/Excellent Special Mention Substandard Doubtful Commercial and industrial: Commercial $ 260 $ 331 $ 9 $ 38 $ 252 $ - $ 890 SBA loans - - - - - - - Asset-based - 742 198 - 243 76 1,259 260 1,073 207 38 495 76 2,149 Commercial real estate: Commercial mortgages - 8,193 1,375 537 1,059 221 11,385 SBA Loans - 2 - 160 93 - 255 Construction - 542 - - - - 542 Religious organizations 49 8,201 751 109 196 - 9,306 49 16,938 2,126 806 1,348 221 21,488 Total commercial loans $ 309 $ 18,011 $ 2,333 $ 844 $ 1,843 $ 297 $ 23,637 Residential Mortgage and Consumer Loans December 31, 2016 Performing Nonperforming Total Consumer Real Estate: Home equity $ 301 $ 498 $ 799 Home equity line of credit 19 - 19 1-4 family residential mortgages 1,339 75 1,414 1,659 573 2,232 Consumer Other: Student loans 794 61 855 Other 110 1 111 904 62 966 Total consumer loans $ 2,563 $ 635 $ 3,198 |
Schedule of Age Analysis of Allowance for Loan Losses | An analysis of the activity in the allowance for loan losses for the years 2017 and 2016 is as follows: (in 000's) Year to Date ended December 31, 2017 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Beginning balance $ 68 $ 179 $ 10 $ 11 $32 $ 300 Provision for possible loan losses (65) 28 (10) (3) (32) (82) Charge-offs - (52) (18) (5) - (75) Recoveries 4 - 28 5 - 37 Net charge-offs 4 (52) 10 - - (38) Ending balance $ 7 $ 155 $ 10 $ 8 $ - $ 180 (in 000's) Year to Date ended December 31, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Beginning balance $ 151 $ 250 $ 8 $ 9 $ - $ 418 Provision for possible loan losses (87) (30) 15 1 32 (69) Charge-offs - (41) (22) (5) - (68) Recoveries 4 - 9 6 - 19 Net charge-offs 4 (41) (13) 1 - (49) Ending balance $ 68 $ 179 $ 10 $ 11 $ 32 $ 300 (in 000's) Year to Date ended December 31, 2017 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 7 155 10 8 180 $ 7 $ 155 $ 10 $ 8 $ - $ 180 Loans, ending balance: Loans individually evaluated for impairment $ 76 $ 1,201 $ - $ - $ - $1,277 Loans collectively evaluated for impairment 1,722 20,188 1,729 809 24,448 Total $ 1,798 $ 21,389 $ 1,729 $ 809 $ - $25,725 (in 000's) Year to Date ended December 31, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 54 $ - $ - $ - $54 Loans collectively evaluated for impairment 68 125 10 11 32 246 $ 68 $ 179 $ 10 $ 11 $ 32 $300 Loans, ending balance: Loans individually evaluated for impairment $ 352 $ 1,731 $ - $ - $ - $2,083 Loans collectively evaluated for impairment 1,797 19,757 2,232 966 24,752 Total $ 2,149 $ 21,488 $ 2,232 $ 966 $ - $26,835 |
5. Bank Premises and Equipment
5. Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Major Classes of Bank Premises and Equipment | The major classes of bank premises and equipment and the total accumulated depreciation are as follows at December 31: (In 000’s) Estimated useful life 2017 2016 Leasehold improvements 10-15 years $ 832 $ 832 Furniture and equipment 3- 7 years 1,439 1,332 2,271 2,164 Less accumulated depreciation (1,968) (1,784) $ 303 $ 380 |
Schedule of Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases are as follows: (In 000’s) Year ending December 31, Operating leases 2018 503 2019 514 2020 437 2021 446 2022 371 Thereafter 204 Total minimum lease payments $2,475 |
6. Other Real Estate Owned (Tab
6. Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Components Of Other Real Estate Owned | The following schedule reflects the components of other real estate owned at December 31, 2017 and 2016: (in 000’s) 2017 2016 Commercial real estate $ 294 $ 298 Residential real estate 332 149 Total $ 626 $ 447 |
Schedule of Change in Other Real Estate Owned | A summary of the change in other real estate owned follows: (in 000’s) Year Ended December 31, 2017 Year Ended December 31, 2016 Beginning Balance $ 447 $ 480 Additions, transfers from loans 184 - Sales - (33) Subtotal 631 447 Write-ups (write-downs) (5) - Ending Balance $ 626 $ 447 |
Schedule of Components of Net Expense of Other Real Estate Owned | The following table details the components of net expense of other real estate owned. (in 000’s) Year ended December 31, 2017 Year ended December 31, 2016 Insurance $ 15 $ 23 Legal fees - 16 Foreclosure fees - 56 Maintenance 25 - Professional fees 3 4 Real estate taxes 22 21 Utilities 3 2 Transfer-in write-up 5 - Impairment charges - - Other 5 4 Total $ 78 $ 126 |
7. Deposits (Tables)
7. Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Maturity of Time Deposits | At December 31, 2017, the scheduled maturities of time deposits (certificates of deposit) are as follows: (In 000’s) 2018 $ 8,692 2019 326 2020 89 2021 125 2022 74 Thereafter 34 $ 9,340 |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Bank’s net deferred tax assets are as follows: December 31, (in 000’s) 2017 2016 Deferred tax assets(liabilities): Provision for loan losses $ 7 $ 36 Unrealized (loss) gain on investment securities (15) (32) Depreciation (22) (36) Net operating carryforwards 2,243 3,578 Other, net 278 326 Valuation allowance for deferred tax assets (2,506) (3,904) Net deferred tax assets $ (15) $ (32) |
Schedule of Effective Income Tax Rate Reconciliation | 2017 2016 Effective rate reconciliation: Tax at statutory rate (34%) $ (109) $ 8 Change in tax rate 1,551 - Nondeductible expenses 8 9 Increase in valuation allowance (1,371) (31) True-up of NOL (74) 3 Other (5) 11 Total tax expense $ - $ - |
10. Financial Instrument Comm_2
10. Financial Instrument Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Financial Instruments Commitments | A summary of the Bank’s financial instrument commitments is as follows: 2017 2016 Commitments to extend credit $4,670,000 $3,784,000 Outstanding letters of credit 317,000 317,000 |
11. Fair Value Measurements (Ta
11. Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Fair Value of Assets on a Recurring Basis | Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 2) (Level 3) Investment securities available-for-sale: U.S. Government agency securities $ 2,273 $ - $2,273 $ - Government Sponsored Enterprises residential mortgage-backed securities 2,740 - 2,740 - Money Market Funds 132 132 - Total $5,145 $132 $5,013 - Loans held for sale $10,297 $ - $10,297 $ - Loans held at fair value $ 4,451 $ - $ - $4,451 Servicing asset $ 319 $ - $ - $ 319 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities available-for-sale: U.S. Government agency securities $2,268 $ - $2,268 $ - Government Sponsored Enterprises residential mortgage-backed securities 3,180 3,180 - Money Market Funds 130 130 - - Total $5,578 $130 $5,448 - Loans held for sale $7,794 $ - $7,794 - Loans held at fair value $4,207 $ - $ - $4,207 Servicing asset $313 $ - $ - $313 |
Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments | When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include estimated cash flows, prepayment speeds, average projected loss rate and discount rates as follows: (in 000’s) Assets measured at fair value December 31, 2017 Fair value December 31, 2016 Fair value Principal valuation techniques Significant observable inputs December 31, 2017 Range of inputs December 31, 2016 Range of inputs Loans held at fair value: $4,451 $4,207 Discounted cash flow Constant prepayment rate 8.54% to 10.41 % 7.53% to 9.62 % Weighted average life 2.67 yrs. to 9.29 yrs. 3.05 yrs. to 9.95 yrs. Discount rate 9.00% to 11.62% 8.11% to 10.58 Projected default rate 0.75% to 7.61 % 0.77% to 6.64% (in 000’s) Assets measured at fair value December 31, 2017 Fair value December 31, 2016 Fair Value Principal valuation techniques Significant observable inputs December 31, 2017 Range of inputs December 31, 2016 Range of inputs Servicing asset $319 $313 Discounted cash flow Constant prepayment rate 5.58% to 10.67 % 4.89% to 9.96% Weighted average life 2.67 yrs. to 9.09 yrs. 3.05 yrs. to 9.70 yrs. The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value: Loans Held at Fair Value: (in 000’s) 2017 2016 Balance at December 31, $ 4,207 $ 2,459 Origination of loans 816 2,068 Principal repayments (191) (324) Change in fair value (381) 4 Balance at December 31, $4,451 $4,207 Servicing Asset: (in 000’s) 2017 2016 Balance at December 31, $ 313 $ 200 Additions related to new loan originations 57 160 Change in fair value (51) (47) Balance at December 31, $319 $313 |
Schedule of Fair Value of Assets Measured on a Nonrecurring Basis | The following table presents the assets carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2017 for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2017. Carrying Value at December 31, 2017: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value loss during the year ended December 31, 2017 Impaired Loans $134 - - $134 $(32) Other real estate owned $626 - - $ 626 $ - The following table presents the assets and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2016, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2016. Carrying Value at December 31, 2016: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value loss during the year ended December 31, 2016 Impaired Loans $418 - -- $418 $ - Other real estate owned $ 447 - - $ 447 $ - |
Schedule of Fair Value of Financial Instruments at Year-End | The fair value of financial instruments not previously disclosed are depicted below: (in 000’s) Level in 2017 2016 Value Carrying Fair Carrying Fair Assets: Hierarchy Amount Value Amount Value Cash and cash equivalents Level 1 $11,671 $11,671 $ 7,803 $ 7,803 Loans, net of allowance for loan losses (1) 25,545 25,831 26,535 26,617 Servicing asset Level 3 319 319 313 313 Accrued interest receivable Level 2 153 153 141 141 Liabilities: Demand deposits Level 2 34,610 34,610 28,497 28,497 Savings deposits Level 2 11,505 11,505 11,735 11,735 Time deposits (2) 9,339 9,280 10,411 10,395 Accrued interest Payable Level 2 14 14 11 11 (1) Level 2 for non-impaired loans; Level 3 for certain impaired loans. (2) Level 1 for variable rate instruments, Level 3 for fixed rate instruments |
12. Consolidated Financial In_2
12. Consolidated Financial Information-parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets (Dollars in thousands) 2017 2016 Assets: Cash and cash equivalents $ 38 $ - Investment in United Bank of Philadelphia 3,242 2,660 Total assets $3,280 $2,660 Shareholders’ equity: Series A preferred stock $ 1 $ 1 Common stock 8 8 Additional paid-in capital 15,677 14,753 Accumulated deficit (12,349) (12,038) Net unrealized holding losses on securities available-for-sale (57) (64) Total shareholders’ equity $3,280 $2,660 |
Schedule of Condensed Statement Of Operations | Condensed Statements of Operations Years ended December 31, (Dollars in thousands) 2017 2016 Net loss $ (12) $ - Equity in net (loss) income of subsidiary (307) $ 25 Net (loss) income $ (319) $ 25 |
Schedule of Condensed Cash Flow Statement | Years ended December 31, (Dollars in thousands) 2017 2016 Cash flows from operating activities: Net (loss) income $ (319) $ 25 Adjustments: Equity in net income (loss) of subsidiary 307 (25) Net cash used in operating activities (12) - Cash flows from investing activities: Investment in subsidiary (875) - Total cash flows from investing activities (875) - Cash flows from financing activities: Issuance of Series B Preferred Stock 925 - Total cash flows from financing activities 925 - Cash and cash equivalents at beginning of year - - Cash and cash equivalents at end of year $ 38 $ - |
13. Regulatory Matters (Tables)
13. Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of the Company and the Bank's Actual Capital | The Company and the Bank’s actual capital amounts and ratios are as follow as of December 31, 2017: (In 000’s) Actual Minimum to be Well Capitalized Minimum to be Adequately Capitalized Amount Ratio Amount Ratio Amount Ratio Total (Tier II) capital to risk weighted assets: Company $3,338 10.22% N/A Bank 3,300 10.11 3,265 10.0% $2,612 8.00% Tier I capital to risk weighted assets Company 3,158 9.67 N/A Bank 3,120 9.56 2,612 8.00% 1,959 6.00% Common equity Tier I capital to risk weighted assets Company 3,158 9.67 N/A Bank 3,120 9.56 2,122 6.50% 1,469 4.50% Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company 3,158 5.58 N/A Bank 3,120 5.51 2,829 5.00% 2,263 4.00% Tangible common equity to tangible assets Company 3,158 5.58 N/A N/A N/A N/A Bank 3,120 5.51 N/A N/A N/A N/A The Company and the Bank’s actual capital amounts and ratios are as follow as of December 31, 2016: (In 000’s) Actual Minimum to be Well Capitalized Minimum to be Adequately Capitalized Amount Ratio Amount Ratio Amount Ratio Total (Tier II) capital to risk weighted assets: Company $2,897 9.08% N/A Bank 2,897 9.08 3,190 10.00% $2,552 8.00% Tier I capital to risk weighted assets Company 2,597 8.14 N/A Bank 2,597 8.14 2,074 8.00% $1,914 6.00% Common equity Tier I capital to risk weighted assets Company 2,597 8.14 N/A Bank 2,597 8.14 2,074 6.50% $1,436 4.50% Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company 2,597 4.82 N/A Bank 2,597 4.82 2,692 5.00% $2,154 4.00% Tangible common equity to tangible assets Company 2,597 4.82 N/A N/A N/A N/A Bank 2,597 4.82 N/A N/A N/A N/A |
16. Earnings Per Share Computai
16. Earnings Per Share Computaion (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Net Loss per Common Share | Net income (loss) per common share is calculated as follows: Year ended December 31, 2017 Loss Shares Per share (numerator) (denominator) amount Net loss $ (319,426) Basic EPS Income attributable to common stockholders $ (319,426) 826,921 $(0.39) Diluted EPS Income attributable to common stockholders $ (319,426) 826,921 $ (0.39) Year ended December 31, 2016 Loss Shares Per share (numerator) (denominator) amount Net income $ 24,537 Basic EPS Income attributable to common stockholders $ 24,537 826,921 $ 0.03 Diluted EPS Income attributable to common stockholders $ 24,537 826,921 $ 0.03 |
17. Summary of Quarterly Resu_2
17. Summary of Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block Supplement [Abstract] | |
Schedule of Condensed Income Statement | The following summarizes the company’s consolidated results of operations during 2017 and 2016, on a quarterly basis: (Dollars in thousands) 2017 Fourth Third Second First Quarter Quarter Quarter Quarter Interest income $ 651 $ 674 $ 583 $633 Interest expense 20 19 16 17 Net interest income 631 655 567 616 Provision (credit) for loan losses 9 (15) (46) (30) Net interest after provision (credit) for loan losses 622 670 613 646 Noninterest income 453 490 307 241 Noninterest expense 1,105 1,131 1,035 1,090 Net (loss) income $ (30) $ 29 $ (115) $ (203) Basic (loss) income per common share $ (0.03) $ 0.03 $(0.14) $ (0.25) Diluted (loss) income per common share $ (0.03) $ 0.03 $(0.14) $ (0.25) (Dollars in thousands) 2016 Fourth Third Second First Quarter Quarter Quarter Quarter Interest income $ 614 $ 642 $ 737 $593 Interest expense 17 17 16 16 Net interest income 597 625 721 577 Provision (credit) for loan losses (19) (45) 30 (35) Net interest after provision (credit) for loan losses 616 670 691 612 Noninterest income 538 392 705 288 Noninterest expense 1,146 1,162 1,080 1,099 Net income (loss) $ 8 $ (100) $ 316 $ (199) Basic income (loss) per common share $ 0.01 $ (0.12) $0.38 $ (0.24) Diluted income (loss) per common share $ 0.01 $ (0.12) $0.38 $ (0.24) |
1. Summary of Significant Acc_4
1. Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Text Block [Abstract] | |
Entity Incorporation, Date of Incorporation | Apr. 8, 1993 |
Federal income tax rate | 21.00% |
Deferred tax assets, net | $ 1,551,000 |
1. Summary of Significant Acc_5
1. Summary of Significant Accounting Policies: Comprehensive Loss: Schedule of Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||
Other comprehensive income, before tax amount, beginning | $ (96) | $ (30) |
Other comprehensive income, Taxes, beginning | 33 | 11 |
Other comprehensive income, Net of tax Amount, beginning | (63) | (19) |
Unrealized holding gain arising during period, before tax amount | 23 | (66) |
Unrealized holding gain arising during period, taxes | (8) | 22 |
Unrealized holding gain arising during period, net of tax amount | 15 | (44) |
Less: reclassification adjustment for gains(losses) realized in net loss, before tax amount | 0 | 0 |
Less: reclassification adjustment for gains(losses) realized in net loss, taxes | 0 | 0 |
Less: reclassification adjustment for gains(losses) realized in net loss, net of tax amount | 0 | 0 |
Reclassification due to adoption of ASU 2018-02, before tax amount | 0 | |
Reclassification due to adoption of ASU 2018-02, taxes | 9 | |
Reclassification due to adoption of ASU 2018-02, net of tax amount | (9) | |
Other comprehensive loss, net, before tax amount | 23 | (66) |
Other comprehensive loss, net, taxes | 1 | 22 |
Other comprehensive loss, net, net after tax amount | 6 | (44) |
Other comprehensive income, before tax amount, ending | (73) | (96) |
Other comprehensive income, Taxes, ending | 34 | 33 |
Other comprehensive income, Net of tax Amount, ending | $ (57) | $ (63) |
2. Cash and Due From Bank Bal_2
2. Cash and Due From Bank Balances (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Text Block [Abstract] | ||
Reserve balances, due from banks | $ 100,000 | $ 100,000 |
3. Investments (Details)
3. Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 | |
Proceeds from sale of available-for sale investment securities | 0 | $ 0 |
Held-to-maturity Securities Pledged as Collateral | 4,297,000 | 4,432,000 |
US Government Agency Securities | ||
Held-to-maturity Securities | $ 0 | $ 5,450,000 |
3. Investment Securities_ Sched
3. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale Securities, Amortized Cost Basis | $ 5,218,000 | $ 5,673,000 |
Available-for-sale Securities, Gross Unrealized Gain | 21,000 | 25,000 |
Available-for-sale Securities, Gross Unrealized Loss | (94,000) | (120,000) |
Investment securities available-for-sale, at fair value | 5,144,707 | 5,578,159 |
US Government Agency Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 2,349,000 | 2,350,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | (76,000) | (82,000) |
Investment securities available-for-sale, at fair value | 2,273,000 | 2,268,000 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 2,737,000 | 3,193,000 |
Available-for-sale Securities, Gross Unrealized Gain | 21,000 | 25,000 |
Available-for-sale Securities, Gross Unrealized Loss | (18,000) | (38,000) |
Investment securities available-for-sale, at fair value | 2,740,000 | 3,180,000 |
Investments in money market funds | ||
Available-for-sale Securities, Amortized Cost Basis | 132,000 | 130,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Investment securities available-for-sale, at fair value | $ 132,000 | $ 130,000 |
3. Investment Securities_ Sch_2
3. Investment Securities: Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Number of Securities | 15 | 17 |
Less than Twelve Months, Fair Value | $ 1,369 | $ 4,294 |
Less than 12 Months, Unrealized Losses | (12) | (120) |
Twelve Months or Longer, Fair Value | 2,405 | 0 |
12 Months or Longer, Unrealized Losses | (82) | 0 |
Total Fair Value | 3,774 | 4,294 |
Total Unrealized Losses | $ (94) | $ (120) |
US Government Agency Securities | ||
Number of Securities | 7 | 7 |
Less than Twelve Months, Fair Value | $ 245 | $ 2,268 |
Less than 12 Months, Unrealized Losses | (5) | (82) |
Twelve Months or Longer, Fair Value | 2,028 | 0 |
12 Months or Longer, Unrealized Losses | (71) | 0 |
Total Fair Value | 2,273 | 2,268 |
Total Unrealized Losses | $ (76) | $ (82) |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Number of Securities | 8 | 10 |
Less than Twelve Months, Fair Value | $ 1,124 | $ 2,026 |
Less than 12 Months, Unrealized Losses | (7) | (38) |
Twelve Months or Longer, Fair Value | 377 | 0 |
12 Months or Longer, Unrealized Losses | (11) | 0 |
Total Fair Value | 1,501 | 2,026 |
Total Unrealized Losses | $ (18) | $ (38) |
3. Investments_ Schedule of Inv
3. Investments: Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost, due in one year | $ 0 | |
Fair Value, due in one year | 0 | |
Amortized Cost, due after one year through five years | 500,000 | |
Fair Value, due after one year through five years | 483,000 | |
Amortized Cost, due after five years through ten years | 1,849,000 | |
Fair Value, due after five years through ten years | 1,791,000 | |
Available-for-sale Securities, Amortized Cost Basis | 5,218,000 | $ 5,673,000 |
Available-for-sale, at fair value | 5,144,707 | 5,578,159 |
Total debt securities, Amortized Cost Basis | 5,086,000 | |
Total debt securities, Fair Value | 5,013,000 | |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 2,737,000 | 3,193,000 |
Available-for-sale, at fair value | 2,740,000 | 3,180,000 |
Investments in money market funds | ||
Available-for-sale Securities, Amortized Cost Basis | 132,000 | 130,000 |
Available-for-sale, at fair value | $ 132,000 | $ 130,000 |
4. Loans and Allowance For Lo_3
4. Loans and Allowance For Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unearned discount | $ 10,858 | $ 10,857 |
Commercial real estate | 21,488,000 | 26,414,000 |
Commercial And Industrial | ||
Net Credit Loss on Loans Managed or Securitized or Asset-backed Financing Arrangement | 52,000 | $ 41,000 |
Owner Occupied | ||
Commercial real estate | 19,700,000 | |
Religious Organizations | ||
Commercial real estate | $ 8,600,000 | |
Loans Receivable Portfolio Percentage (by segment) | 34.00% |
4. Loans and Allowance For Lo_4
4. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial real estate | $ 21,488,000 | $ 26,414,000 |
Consumer real estate | 1,729,000 | 2,232,000 |
Allowance for loan losses | (180,000) | (300,000) |
Loans, net | 25,545,000 | 26,535,000 |
Commercial And Industrial | ||
Commercial and industrial | 1,798,000 | 2,149,000 |
Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 21,389,000 | 21,488,000 |
Consumer Real Estate | ||
Consumer real estate | 1,729,000 | 2,232,000 |
Consumer And Other Loans | ||
Consumer loans other | 809,000 | 966,000 |
Home Equity Line of Credit | Consumer Real Estate | ||
Consumer real estate | 17,000 | 19,000 |
Commercial | Commercial And Industrial | ||
Commercial and industrial | 909,000 | 890,000 |
SBA Loans | Commercial And Industrial | ||
Commercial and industrial | 19,000 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 669,000 | 255,000 |
Asset Based Loans | Commercial And Industrial | ||
Commercial and industrial | 870,000 | 1,259,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 11,671,000 | 11,385,000 |
Construction | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 419,000 | 542,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 8,630,000 | 9,306,000 |
Home Equity Loans | Consumer Real Estate | ||
Consumer real estate | 641,000 | 799,000 |
Family Residential Mortgage | Consumer Real Estate | ||
Consumer real estate | 1,071,000 | 1,414,000 |
Student Loans | Consumer And Other Loans | ||
Consumer loans other | 700,000 | 855,000 |
Other | Consumer And Other Loans | ||
Consumer loans other | $ 109,000 | $ 111,000 |
4. Loans and Allowance For Lo_5
4. Loans and Allowance For Loan Losses: Schedule of Activity in Related Party Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||
Balance outstanding, starting | $ 866,934 | $ 775,078 |
Principal additions (affiliations) | 0 | 159,974 |
Disafilliations | 0 | 0 |
Principal Reductions | (187,322) | (68,118) |
Balance outstanding, ending | $ 679,612 | $ 866,934 |
4. Loans and Allowance For Lo_6
4. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Nonaccrual | $ 1,616 | $ 2,087 |
Past Due Loans | 2,192 | 2,952 |
Current Loans | 23,533 | 23,883 |
Loans and Leases Receivable, Gross | 25,725 | 26,835 |
Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 190 | 234 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 387 | 631 |
Commercial And Industrial | ||
Nonaccrual | 76 | 108 |
Past Due Loans | 76 | 378 |
Current Loans | 1,722 | 1,771 |
Loans and Leases Receivable, Gross | 1,798 | 2,149 |
Commercial And Industrial | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 27 |
Commercial And Industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 243 |
Commercial Real Estate Portfolio Segment | ||
Nonaccrual | 1,203 | 1,559 |
Past Due Loans | 1,461 | 1,842 |
Current Loans | 19,928 | 19,646 |
Loans and Leases Receivable, Gross | 21,389 | 21,488 |
Commercial Real Estate Portfolio Segment | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 50 | 110 |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 208 | 173 |
Consumer Real Estate | ||
Nonaccrual | 337 | 420 |
Past Due Loans | 561 | 632 |
Current Loans | 1,168 | 1,600 |
Loans and Leases Receivable, Gross | 1,729 | 2,232 |
Consumer Real Estate | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 102 | 59 |
Consumer Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 123 | 153 |
Consumer Real Estate | Home Equity Line of Credit | ||
Nonaccrual | 0 | 0 |
Past Due Loans | 0 | 0 |
Current Loans | 17 | 19 |
Loans and Leases Receivable, Gross | 17 | 19 |
Consumer Real Estate | Home Equity Line of Credit | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Consumer Real Estate | Home Equity Line of Credit | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 0 |
Consumer And Other Loans | ||
Nonaccrual | 0 | 0 |
Past Due Loans | 94 | 100 |
Current Loans | 715 | 866 |
Loans and Leases Receivable, Gross | 809 | 966 |
Consumer And Other Loans | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 38 | 38 |
Consumer And Other Loans | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 56 | 62 |
Commercial | Commercial And Industrial | ||
Nonaccrual | 0 | 33 |
Past Due Loans | 0 | 33 |
Current Loans | 909 | 857 |
Loans and Leases Receivable, Gross | 909 | 890 |
Commercial | Commercial And Industrial | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Commercial | Commercial And Industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial And Industrial | ||
Nonaccrual | 0 | 0 |
Past Due Loans | 0 | 0 |
Current Loans | 19 | 0 |
Loans and Leases Receivable, Gross | 19 | 0 |
SBA Loans | Commercial And Industrial | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Nonaccrual | 81 | 93 |
Past Due Loans | 81 | 255 |
Current Loans | 588 | 0 |
Loans and Leases Receivable, Gross | 669 | 255 |
SBA Loans | Commercial Real Estate Portfolio Segment | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 162 |
Asset Based Loans | Commercial And Industrial | ||
Nonaccrual | 76 | 75 |
Past Due Loans | 76 | 345 |
Current Loans | 794 | 914 |
Loans and Leases Receivable, Gross | 794 | 1,259 |
Asset Based Loans | Commercial And Industrial | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 27 |
Asset Based Loans | Commercial And Industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 243 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Nonaccrual | 935 | 1,270 |
Past Due Loans | 1,193 | 1,281 |
Current Loans | 10,478 | 10,104 |
Loans and Leases Receivable, Gross | 11,671 | 11,385 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 50 | 0 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 208 | 11 |
Construction | Commercial Real Estate Portfolio Segment | ||
Nonaccrual | 0 | 0 |
Past Due Loans | 0 | 0 |
Current Loans | 419 | 542 |
Loans and Leases Receivable, Gross | 419 | 542 |
Construction | Commercial Real Estate Portfolio Segment | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Nonaccrual | 187 | 196 |
Past Due Loans | 187 | 306 |
Current Loans | 8,443 | 9,000 |
Loans and Leases Receivable, Gross | 8,630 | 9,306 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 0 | 110 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 0 |
Home Equity Loans | Consumer Real Estate | ||
Nonaccrual | 289 | 345 |
Past Due Loans | 450 | 498 |
Current Loans | 191 | 301 |
Loans and Leases Receivable, Gross | 641 | 799 |
Home Equity Loans | Consumer Real Estate | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 38 | 0 |
Home Equity Loans | Consumer Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 123 | 153 |
Family Residential Mortgage | Consumer Real Estate | ||
Nonaccrual | 48 | 75 |
Past Due Loans | 112 | 134 |
Current Loans | 959 | 1,280 |
Loans and Leases Receivable, Gross | 1,071 | 1,414 |
Family Residential Mortgage | Consumer Real Estate | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 64 | 59 |
Family Residential Mortgage | Consumer Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 0 | 0 |
Student Loans | Consumer And Other Loans | ||
Nonaccrual | 0 | 0 |
Past Due Loans | 87 | 99 |
Current Loans | 613 | 756 |
Loans and Leases Receivable, Gross | 700 | 855 |
Student Loans | Consumer And Other Loans | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 32 | 38 |
Student Loans | Consumer And Other Loans | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | 55 | 61 |
Other | Consumer And Other Loans | ||
Nonaccrual | 0 | 0 |
Past Due Loans | 7 | 1 |
Current Loans | 102 | 110 |
Loans and Leases Receivable, Gross | 109 | 111 |
Other | Consumer And Other Loans | Financing Receivables 30 To 89 Days Past Due | ||
Past Due Loans | 6 | 0 |
Other | Consumer And Other Loans | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Past Due Loans | $ 1 | $ 1 |
4. Loans and Allowance For Lo_7
4. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unpaid Contractual Principal Balance | $ 1,277 | $ 2,123 |
Recorded Investment With No Allowance | 1,277 | 1,610 |
Recorded Investment With Allowance | 0 | 473 |
Total Recorded Investment | 1,277 | 2,083 |
Related Allowance | 0 | 54 |
Average Recorded Investment | 1,883 | 2,268 |
Interest recognized on impaired loans | 40 | 26 |
Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 0 | 352 |
Recorded Investment With No Allowance | 0 | 352 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 352 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 270 | 430 |
Interest recognized on impaired loans | 30 | 0 |
Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 1,201 | 1,771 |
Recorded Investment With No Allowance | 1,201 | 1,258 |
Recorded Investment With Allowance | 0 | 473 |
Total Recorded Investment | 1,201 | 1,731 |
Related Allowance | 0 | 54 |
Average Recorded Investment | 1,613 | 1,838 |
Interest recognized on impaired loans | 10 | 26 |
Commercial | Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 0 | 33 |
Recorded Investment With No Allowance | 0 | 33 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 33 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 14 | 33 |
Interest recognized on impaired loans | 30 | 0 |
SBA Loans | Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 36 |
Interest recognized on impaired loans | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 81 | 255 |
Recorded Investment With No Allowance | 81 | 255 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 81 | 255 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 208 | 262 |
Interest recognized on impaired loans | 10 | 7 |
Asset Based Loans | Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 76 | 319 |
Recorded Investment With No Allowance | 76 | 319 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 76 | 319 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 256 | 361 |
Interest recognized on impaired loans | 0 | 0 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 933 | 1,321 |
Recorded Investment With No Allowance | 933 | 808 |
Recorded Investment With Allowance | 0 | 473 |
Total Recorded Investment | 933 | 1,281 |
Related Allowance | 0 | 54 |
Average Recorded Investment | 1,215 | 1,303 |
Interest recognized on impaired loans | 0 | 19 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 187 | 195 |
Recorded Investment With No Allowance | 187 | 195 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 187 | 195 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 191 | 273 |
Interest recognized on impaired loans | $ 0 | $ 0 |
4. Loans and Allowance For Lo_8
4. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial real estate | $ 21,488,000 | $ 26,414,000 |
Consumer real estate | 1,729,000 | 2,232,000 |
Consumer loans other | 809,000 | 966,000 |
Total consumer loans | 2,538,000 | 3,198,000 |
Good/Excellent | ||
Total commercial loans | 298,000 | 309,000 |
Satisfactory | ||
Total commercial loans | 17,021,000 | 18,011,000 |
Pass | ||
Total commercial loans | 3,770,000 | 2,333,000 |
Special Mention | ||
Total commercial loans | 36,000 | 844,000 |
Substandard | ||
Total commercial loans | 1,375,000 | 1,843,000 |
Doubtful | ||
Total commercial loans | 293,000 | 297,000 |
Total | ||
Total commercial loans | 23,187,000 | 23,637,000 |
Performing | ||
Consumer real estate | 1,392,000 | 1,659,000 |
Consumer loans other | 809,000 | 904,000 |
Total consumer loans | 2,201,000 | 2,563,000 |
Nonperforming | ||
Consumer real estate | 337,000 | 573,000 |
Consumer loans other | 0 | 62,000 |
Total consumer loans | 337,000 | 635,000 |
Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 250,000 | 260,000 |
Commercial And Industrial | Satisfactory | ||
Total commercial loans | 972,000 | 1,073,000 |
Commercial And Industrial | Pass | ||
Total commercial loans | 171,000 | 207,000 |
Commercial And Industrial | Special Mention | ||
Total commercial loans | 19,000 | 38,000 |
Commercial And Industrial | Substandard | ||
Total commercial loans | 310,000 | 495,000 |
Commercial And Industrial | Doubtful | ||
Total commercial loans | 76,000 | 76,000 |
Commercial And Industrial | Total | ||
Total commercial loans | 1,798,000 | 2,149,000 |
Consumer Real Estate | ||
Consumer real estate | 1,729,000 | 2,232,000 |
Consumer Real Estate | Total | Home Equity | ||
Consumer real estate | 641,000 | 799,000 |
Consumer Real Estate | Total | Home Equity Line Of Credit | ||
Consumer real estate | 17,000 | 19,000 |
Consumer Real Estate | Total | 1-4 Family Residential Mortgages | ||
Consumer real estate | 1,071,000 | 1,414,000 |
Consumer Real Estate | Performing | Home Equity | ||
Consumer real estate | 352,000 | 301,000 |
Consumer Real Estate | Performing | Home Equity Line Of Credit | ||
Consumer real estate | 17,000 | 19,000 |
Consumer Real Estate | Performing | 1-4 Family Residential Mortgages | ||
Consumer real estate | 1,023,000 | 1,339,000 |
Consumer Real Estate | Nonperforming | Home Equity | ||
Consumer real estate | 289,000 | 498,000 |
Consumer Real Estate | Nonperforming | Home Equity Line Of Credit | ||
Consumer real estate | 0 | 0 |
Consumer Real Estate | Nonperforming | 1-4 Family Residential Mortgages | ||
Consumer real estate | 48,000 | 75,000 |
Consumer And Other Loans | Total | Student Loans | ||
Consumer loans other | 700,000 | 855,000 |
Consumer And Other Loans | Total | Other | ||
Consumer loans other | 109,000 | 111,000 |
Consumer And Other Loans | Performing | Student Loans | ||
Consumer loans other | 700,000 | 794,000 |
Consumer And Other Loans | Performing | Other | ||
Consumer loans other | 109,000 | 110,000 |
Consumer And Other Loans | Nonperforming | Student Loans | ||
Consumer loans other | 0 | 61,000 |
Consumer And Other Loans | Nonperforming | Other | ||
Consumer loans other | 0 | 1,000 |
Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 21,389,000 | 21,488,000 |
Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 48,000 | 49,000 |
Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 16,049,000 | 16,938,000 |
Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 3,599,000 | 2,126,000 |
Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 17,000 | 806,000 |
Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 1,065,000 | 1,348,000 |
Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 217,000 | 221,000 |
Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 21,389,000 | 21,488,000 |
Commercial | Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 250,000 | 260,000 |
Commercial | Commercial And Industrial | Satisfactory | ||
Total commercial loans | 423,000 | 331,000 |
Commercial | Commercial And Industrial | Pass | ||
Total commercial loans | 0 | 9,000 |
Commercial | Commercial And Industrial | Special Mention | ||
Total commercial loans | 19,000 | 38,000 |
Commercial | Commercial And Industrial | Substandard | ||
Total commercial loans | 217,000 | 252,000 |
Commercial | Commercial And Industrial | Doubtful | ||
Total commercial loans | 0 | 0 |
Commercial | Commercial And Industrial | Total | ||
Total commercial loans | 909,000 | 890,000 |
SBA Loans | Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 0 | |
SBA Loans | Commercial And Industrial | Satisfactory | ||
Total commercial loans | 0 | |
SBA Loans | Commercial And Industrial | Pass | ||
Total commercial loans | 19,000 | |
SBA Loans | Commercial And Industrial | Special Mention | ||
Total commercial loans | 0 | |
SBA Loans | Commercial And Industrial | Substandard | ||
Total commercial loans | 0 | |
SBA Loans | Commercial And Industrial | Doubtful | ||
Total commercial loans | 0 | |
SBA Loans | Commercial And Industrial | Total | ||
Total commercial loans | 19,000 | |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 669,000 | 255,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 588,000 | 2,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 0 | 160,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 81,000 | 93,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 669,000 | 255,000 |
Asset Based | Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 0 | 0 |
Asset Based | Commercial And Industrial | Satisfactory | ||
Total commercial loans | 549,000 | 742,000 |
Asset Based | Commercial And Industrial | Pass | ||
Total commercial loans | 152,000 | 198,000 |
Asset Based | Commercial And Industrial | Special Mention | ||
Total commercial loans | 0 | 0 |
Asset Based | Commercial And Industrial | Substandard | ||
Total commercial loans | 93,000 | 243,000 |
Asset Based | Commercial And Industrial | Doubtful | ||
Total commercial loans | 76,000 | 76,000 |
Asset Based | Commercial And Industrial | Total | ||
Total commercial loans | 870,000 | 1,259,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 11,671,000 | 11,385,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 0 | 0 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 7,876,000 | 8,193,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 2,764,000 | 1,375,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 17,000 | 537,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 797,000 | 1,059,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 217,000 | 221,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 11,671,000 | 11,385,000 |
Construction | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 419,000 | 542,000 |
Construction | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 419,000 | 542,000 |
Construction | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 419,000 | 542,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 8,630,000 | 9,306,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 48,000 | 49,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 7,560,000 | 8,201,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 835,000 | 751,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 0 | 109,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 187,000 | 196,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 0 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | $ 8,630,000 | $ 9,306,000 |
4. Loans and Allowance For Lo_9
4. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 300,000 | $ 418,000 |
Provision for loan losses | (82,000) | (69,000) |
Charge-offs | (75,000) | (68,000) |
Recoveries | 37,000 | 19,000 |
Net charge-offs | (38,000) | (49,000) |
Ending balance | 180,000 | 300,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 54,000 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 180,000 | 246,000 |
Period-end amount allocated to: Total | 179,949 | 300,428 |
Loans, ending balance: Loans individually evaluated for impairment | 1,277,000 | 2,083,000 |
Loans, ending balance: Loans collectively evaluated for impairment | 24,448,000 | 24,752,000 |
Loans and Leases Receivable, Net of Deferred Income | 25,725,700 | 26,835,035 |
Commercial And Industrial | ||
Beginning balance | 68,000 | 151,000 |
Provision for loan losses | (65,000) | (87,000) |
Charge-offs | 0 | 0 |
Recoveries | 4,000 | 4,000 |
Net charge-offs | 4,000 | 4,000 |
Ending balance | 7,000 | 68,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 7,000 | 68,000 |
Period-end amount allocated to: Total | 7,000 | 68,000 |
Loans, ending balance: Loans individually evaluated for impairment | 76,000 | 352,000 |
Loans, ending balance: Loans collectively evaluated for impairment | 1,722,000 | 1,797,000 |
Loans and Leases Receivable, Net of Deferred Income | 1,798,000 | 2,149,000 |
Commercial Real Estate Portfolio Segment | ||
Beginning balance | 179,000 | 250,000 |
Provision for loan losses | 28,000 | (30,000) |
Charge-offs | (52,000) | (41,000) |
Recoveries | 0 | 0 |
Net charge-offs | (52,000) | (41,000) |
Ending balance | 155,000 | 179,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 54,000 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 155,000 | 125,000 |
Period-end amount allocated to: Total | 155,000 | 179,000 |
Loans, ending balance: Loans individually evaluated for impairment | 1,201,000 | 1,731,000 |
Loans, ending balance: Loans collectively evaluated for impairment | 20,188,000 | 19,757,000 |
Loans and Leases Receivable, Net of Deferred Income | 21,389,000 | 21,488,000 |
Consumer Real Estate | ||
Beginning balance | 10,000 | 8,000 |
Provision for loan losses | (10,000) | 15,000 |
Charge-offs | (18,000) | (22,000) |
Recoveries | 28,000 | 9,000 |
Net charge-offs | 10,000 | (13,000) |
Ending balance | 10,000 | 10,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 10,000 | 10,000 |
Period-end amount allocated to: Total | 10,000 | 10,000 |
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 |
Loans, ending balance: Loans collectively evaluated for impairment | 1,729,000 | 2,232,000 |
Loans and Leases Receivable, Net of Deferred Income | 1,729,000 | 2,232,000 |
Consumer And Other Loans | ||
Beginning balance | 11,000 | 9,000 |
Provision for loan losses | (3,000) | 1,000 |
Charge-offs | (5,000) | (5,000) |
Recoveries | 5,000 | 6,000 |
Net charge-offs | 0 | 1,000 |
Ending balance | 8,000 | 11,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,000 | 11,000 |
Period-end amount allocated to: Total | 8,000 | 11,000 |
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 |
Loans, ending balance: Loans collectively evaluated for impairment | 809,000 | 966,000 |
Loans and Leases Receivable, Net of Deferred Income | 809,000 | 966,000 |
Unallocated | ||
Beginning balance | 32,000 | 0 |
Provision for loan losses | (32,000) | 32,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Ending balance | 0 | 32,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 0 | 32,000 |
Period-end amount allocated to: Total | 0 | 32,000 |
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 |
Loans, ending balance: Loans collectively evaluated for impairment | 0 | |
Loans and Leases Receivable, Net of Deferred Income | $ 0 | $ 0 |
5. Bank Premises and Equipmen_2
5. Bank Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||
Depreciation on fixed assets | $ 185,882 | $ 190,334 |
Operating Leases, Rent Expense | $ 477,689 | $ 471,540 |
5. Bank Premises and Equipment_
5. Bank Premises and Equipment: Schedule of Major Classes of Bank Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment, Gross | $ 2,271,000 | $ 2,164,000 |
Less accumulated depreciation | (1,968,000) | (1,784,000) |
Bank premises and equipment, net | 303,298 | 380,471 |
Leaseholds and Leasehold Improvements | ||
Property, Plant and Equipment, Gross | 832,000 | 832,000 |
Furniture and Fixtures | ||
Property, Plant and Equipment, Gross | $ 1,439,000 | $ 1,332,000 |
Minimum | Leaseholds and Leasehold Improvements | ||
Estimated Useful Life | 10 years | |
Minimum | Furniture and Fixtures | ||
Estimated Useful Life | 3 years | |
Maximum | Leaseholds and Leasehold Improvements | ||
Estimated Useful Life | 15 years | |
Maximum | Furniture and Fixtures | ||
Estimated Useful Life | 7 years |
5. Bank Premises and Equipmen_3
5. Bank Premises and Equipment: Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Text Block [Abstract] | |
2018 | $ 503 |
2019 | 514 |
2020 | 437 |
2021 | 446 |
2022 | 371 |
Thereafter | 204 |
Total minimum lease payments | $ 2,475 |
6. Other Real Estate Owned_ Sch
6. Other Real Estate Owned: Schedule of Components Of Other Real Estate Owned (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other real estate owned | $ 626,071 | $ 447,371 | $ 480,000 |
Commercial Real Estate | |||
Other real estate owned | 294,000 | 298,000 | |
Residential Real Estate | |||
Other real estate owned | $ 332,000 | $ 149,000 |
6. Other Real Estate Owned_ S_2
6. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||
Other Real Estate, Beginning Balance | $ 447,371 | $ 480,000 |
Additions, transfers from loans | 184,000 | 0 |
Sales | 0 | (33,000) |
Other Real Estate, Period Increase (Decrease) | 631,000 | 447,000 |
Less: write-downs | (5,000) | 0 |
Other Real Estate, Ending Balance | $ 626,071 | $ 447,371 |
6. Other Real Estate Owned_ S_3
6. Other Real Estate Owned: Schedule of Components of Net Expense of Other Real Estate Owned (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Professional fees | $ 189,875 | $ 301,734 |
Impairment charges (net) | 4,972 | 0 |
Other Real Estate 1 | ||
Insurance | 15,000 | 23,000 |
Legal fees | 0 | 16,000 |
Foreclosure fees | 0 | 56,000 |
Maintenance | 25,000 | 0 |
Professional fees | 3,000 | 4,000 |
Real estate taxes | 22,000 | 21,000 |
Utilities | 3,000 | 2,000 |
Transfer-in write up | 5,000 | 0 |
Impairment charges (net) | 0 | 0 |
Other | 5,000 | 4,000 |
Totals | $ 78,000 | $ 126,000 |
7. Deposits (Details)
7. Deposits (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Total deposits | $ 55,455,254 | $ 50,642,166 |
Time deposits, $250,000 and over | 17,010,000 | $ 12,150,000 |
Deposits held by related parties | 121,484 | |
City Of Philadelphia | ||
Total deposits | $ 2,500,000 |
7. Deposits_ Schedule of Maturi
7. Deposits: Schedule of Maturity of Time Deposits (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Text Block [Abstract] | |
2018 | $ 8,692 |
2019 | 326 |
2020 | 89 |
2021 | 125 |
2022 | 74 |
Thereafter | 34 |
Time Deposits, Total | $ 9,340 |
8. Borrowings (Details)
8. Borrowings (Details) - Secured Borrowing Federal Reserve - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 700,000 | |
Securities Held as Collateral, at Fair Value | 750,000 | |
Long-term Line of Credit | $ 0 | $ 0 |
9. Income Taxes (Details)
9. Income Taxes (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Text Block [Abstract] | ||
Operating Loss Carryforwards | $ 10,670,000 | |
Valuation allowance for deferred tax assets | $ 2,506,000 | $ 3,904,000 |
9. Income Taxes_ Schedule of De
9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets (liabilities): | ||
Provision for loan losses | $ 7 | $ 36 |
Unrealized (loss) gain on investment securities | (15) | (32) |
Depreciation | (22) | (36) |
Net operating carryforwards | 2,243 | 3,578 |
Other, net | 278 | 326 |
Valuation allowance for deferred tax assets | (2,506) | (3,904) |
Net deferred tax assets | $ (15) | $ (32) |
9. Income Taxes_ Schedule of Ef
9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Effective rate reconciliation | ||
Tax at statutory rate (34%) | $ (109,000) | $ 8,000 |
Change in tax rate | 1,551,000 | 0 |
Nondeductible expenses | 8,000 | 9,000 |
Increase in valuation allowance | (1,371,000) | (31,000) |
True-up of NOL | (74,000) | 3,000 |
Other | (5,000) | 11,000 |
Provision for income taxes | $ 0 | $ 0 |
10. Financial Instrument Comm_3
10. Financial Instrument Commitments: Schedule of Financial Instruments Commitments (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Outstanding letters of credit | $ 317,000 | $ 317,000 |
Commitments to Extend Credit | ||
Commitments to extend credit | $ 4,670,000 | $ 3,784,000 |
11. Fair Value Measurements (De
11. Fair Value Measurements (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Text Block [Abstract] | ||
Available-for-sale, at fair value | $ 5,144,707 | $ 5,578,159 |
11. Fair Value_ Schedule of Fai
11. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets Measured at Fair Value | $ 5,145,000 | $ 5,578,000 |
Loans held for sale, at fair value | 10,297,168 | 7,793,785 |
Loans held at fair value | 4,450,901 | 4,207,338 |
Servicing asset | 319,368 | 312,814 |
Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 132,000 | 130,000 |
Loans held for sale, at fair value | 0 | 0 |
Loans held at fair value | 0 | 0 |
Servicing asset | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 5,013,000 | 5,448,000 |
Loans held for sale, at fair value | 10,297,000 | 7,794,000 |
Loans held at fair value | 0 | 0 |
Servicing asset | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans held at fair value | 4,451,000 | 4,207,000 |
Servicing asset | 319,000 | 313,000 |
US Government Agency Securities | ||
Assets Measured at Fair Value | 2,273,000 | 2,268,000 |
US Government Agency Securities | Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 0 | 0 |
US Government Agency Securities | Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 2,273,000 | 2,268,000 |
US Government Agency Securities | Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | 0 | 0 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Assets Measured at Fair Value | 2,740,000 | 3,180,000 |
Government Sponsored Enterprises residential mortgage-backed securities | Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 0 | 0 |
Government Sponsored Enterprises residential mortgage-backed securities | Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 2,740,000 | 3,180,000 |
Government Sponsored Enterprises residential mortgage-backed securities | Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | 0 | 0 |
Investments in money market funds | ||
Assets Measured at Fair Value | 132,000 | 130,000 |
Investments in money market funds | Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 132,000 | 130,000 |
Investments in money market funds | Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 0 | 0 |
Investments in money market funds | Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | $ 0 | $ 0 |
11. Fair Value_ Schedule of Inp
11. Fair Value: Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans held at fair value | $ 4,450,901 | $ 4,207,338 |
Servicing asset | 319,368 | 312,814 |
Servicing asset [Member] | ||
Servicing asset at beginning | 313,000 | 200,000 |
Additions related to new loan originations | 57,000 | 160,000 |
Change in fair value | (51,000) | (47,000) |
Servicing asset at end | 319,000 | 313,000 |
Loans Held At Fair Value | ||
Balance, Starting | 4,207,000 | 2,459,000 |
Origination of loans | 816,000 | 2,068,000 |
Principal repayments | (191,000) | (324,000) |
Change in fair value of financial instruments | (381,000) | 4,000 |
Balance, Ending | 4,451,000 | 4,207,000 |
Fair Value, Inputs, Level 3 | ||
Loans held at fair value | 4,451,000 | 4,207,000 |
Servicing asset | 319,000 | 313,000 |
Fair Value, Inputs, Level 3 | Loans Held At Fair Value | ||
Loans held at fair value | $ 4,451,000 | $ 4,207,000 |
Principal valuation technique | Discounted cash flow | Discounted cash flow |
Fair Value, Inputs, Level 3 | Servicing asset [Member] | ||
Principal valuation technique | Discounted cash flow | Discounted cash flow |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Servicing asset [Member] | ||
Servicing asset | $ 319,000 | $ 313,000 |
Minimum | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Loans Held At Fair Value | ||
Constant prepayment rate | 8.54% | 7.53% |
Weighted average life | 2 years 8 months 2 days | 3 years 18 days |
Weighted average discount rate | 9.00% | 8.11% |
Projected default rate | 0.75% | 0.77% |
Minimum | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Servicing asset [Member] | ||
Constant prepayment rate | 5.58% | 4.89% |
Weighted average life | 2 years 8 months 2 days | 3 years 18 days |
Weighted average discount rate | 11.75% | 10.50% |
Maximum | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Loans Held At Fair Value | ||
Constant prepayment rate | 10.41% | 9.62% |
Weighted average life | 9 years 3 months 15 days | 9 years 11 months 12 days |
Weighted average discount rate | 11.62% | 10.58% |
Projected default rate | 7.61% | 6.64% |
Maximum | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Servicing asset [Member] | ||
Constant prepayment rate | 10.67% | 9.96% |
Weighted average life | 9 years 1 month 2 days | 9 years 8 months 12 days |
Weighted average discount rate | 19.74% | 15.31% |
11. Fair Value_ Schedule of F_2
11. Fair Value: Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets, Fair Value, Nonrecurring | $ 5,145 | $ 5,578 |
Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 134 | 418 |
Total fair value loss during the year | 0 | 0 |
Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 626 | 447 |
Total fair value loss during the year | (32) | 0 |
Fair Value, Inputs, Level 1 | ||
Assets, Fair Value, Nonrecurring | 132 | 130 |
Fair Value, Inputs, Level 1 | Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 | Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value, Nonrecurring | 5,013 | 5,448 |
Fair Value, Inputs, Level 2 | Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 | Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 134 | 418 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | $ 626 | $ 447 |
11. Fair Value_ Schedule of F_3
11. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Loans, net of allowance for loan losses | $ 25,545,751 | $ 26,534,607 | |
Servicing asset | 319,368 | 312,814 | |
Liabilities: | |||
Savings deposits | 11,505,417 | 11,734,512 | |
Time deposits | 9,340,000 | ||
Accrued interest receivable | 13,939 | 10,997 | |
Carrying Amount | |||
Assets: | |||
Loans, net of allowance for loan losses | [1] | 25,545,000 | 26,535,000 |
Liabilities: | |||
Time deposits | [2] | 9,339,000 | 10,411,000 |
Fair Value | |||
Assets: | |||
Loans, net of allowance for loan losses | [1] | 25,831,000 | 26,617,000 |
Liabilities: | |||
Time deposits | [2] | 9,280,000 | 10,395,000 |
Fair Value, Inputs, Level 1 | |||
Assets: | |||
Servicing asset | 0 | 0 | |
Fair Value, Inputs, Level 1 | Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | 11,671,000 | 7,803,000 | |
Fair Value, Inputs, Level 1 | Fair Value | |||
Assets: | |||
Cash and cash equivalents | 11,671,000 | 7,803,000 | |
Fair Value, Inputs, Level 2 | |||
Assets: | |||
Servicing asset | 0 | 0 | |
Fair Value, Inputs, Level 2 | Carrying Amount | |||
Assets: | |||
Accrued interest receivable | 153,000 | 141,000 | |
Liabilities: | |||
Demand Deposits | 34,610,000 | 28,497,000 | |
Savings deposits | 11,505,000 | 11,735,000 | |
Accrued interest receivable | 14,000 | 11,000 | |
Fair Value, Inputs, Level 2 | Fair Value | |||
Assets: | |||
Accrued interest receivable | 153,000 | 141,000 | |
Liabilities: | |||
Demand Deposits | 34,610,000 | 28,497,000 | |
Savings deposits | 11,505,000 | 11,735,000 | |
Accrued interest receivable | 14,000 | 11,000 | |
Fair Value, Inputs, Level 3 | |||
Assets: | |||
Servicing asset | 319,000 | 313,000 | |
Fair Value, Inputs, Level 3 | Carrying Amount | |||
Assets: | |||
Servicing asset | 319,000 | 313,000 | |
Fair Value, Inputs, Level 3 | Fair Value | |||
Assets: | |||
Servicing asset | $ 319,000 | $ 313,000 | |
[1] | Level 2 for non-impaired loans; Level 3 for certain impaired loans. | ||
[2] | Level 1 for variable rate instruments, Level 3 for fixed rate instruments |
12. Consolidated Financial In_3
12. Consolidated Financial Information-parent Company Only: Schedule of Condensed Balance Sheet (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | |||
Cash and cash equivalents | $ 11,671,253 | $ 7,802,831 | $ 10,782,098 |
Total assets | 59,008,867 | 53,612,371 | |
Shareholders' equity: | |||
Common stock | 8,269 | 8,269 | |
Additional paid-in-capital | 15,677,626 | 14,752,644 | |
Accumulated deficit | (12,348,988) | (12,038,281) | |
Total shareholders' equity | 3,280,522 | 2,659,915 | 2,679,762 |
Parent Company | |||
Assets: | |||
Cash and cash equivalents | 38,000 | 0 | $ 0 |
Investment in United Bank of Philadelphia | 3,242,000 | 2,660,000 | |
Total assets | 3,280,000 | 2,660,000 | |
Shareholders' equity: | |||
Series A preferred stock | 1,000 | 1,000 | |
Common stock | 8,000 | 8,000 | |
Additional paid-in-capital | 15,677,000 | 14,753,000 | |
Accumulated deficit | (12,349,000) | (12,038,000) | |
Net unrealized holding losses on securities available-for-sale | (57,000) | (64,000) | |
Total shareholders' equity | $ 3,280,000 | $ 2,660,000 |
12. Consolidated Financial In_4
12. Consolidated Financial Information-parent Company Only: Schedule of Condensed Income Statement (Details) - Parent Company - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss | $ (12) | $ 0 |
Equity in net (loss) income of subsidiary | (307) | (25) |
Net (loss) income | $ (319) | $ 25 |
12. Consolidated Financial In_5
12. Consolidated Financial Information-parent Company Only: Schedule of Condensed Cash Flow Statement (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments: | ||
Net cash used in operating activities | $ (3,094,434) | $ (6,158,356) |
Cash flows from investing activities: | ||
Total cash flows from investing activities | 1,224,768 | 8,499,327 |
Cash flows from financing activities: | ||
Total cash flows from financing activities | 5,738,088 | (5,320,238) |
Cash and cash equivalents at beginning of year | 7,802,831 | 10,782,098 |
Cash and cash equivalents at end of year | 11,671,253 | 7,802,831 |
Parent Company | ||
Cash flows from operating activities: | ||
Net (loss) income | (319,000) | 25,000 |
Adjustments: | ||
Equity in net income (loss) of subsidiary | 307,000 | 25,000 |
Net cash used in operating activities | (12,000) | 0 |
Cash flows from investing activities: | ||
Investment in subsidiary | 875,000 | 0 |
Total cash flows from investing activities | (875,000) | 0 |
Cash flows from financing activities: | ||
Issuance of Series B Preferred Stock | 925,000 | 0 |
Total cash flows from financing activities | 925,000 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 |
Cash and cash equivalents at end of year | $ 38,000 | $ 0 |
13. Regulatory Matters (Details
13. Regulatory Matters (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Description of Regulatory Requirements, Prompt Corrective Action | Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, by September 2019 |
13. Regulatory Matters_ Schedul
13. Regulatory Matters: Schedule of the Company and the Bank's Actual Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Company | Actual Amount | ||
Total capital to risk-weighted assets: | ||
Capital | $ 3,338 | $ 2,897 |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital | 3,158 | 2,597 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital | 3,158 | 2,597 |
Tier One Leverage Capital | ||
Tier One Leverage Capital | 3,158 | 2,597 |
Tangible Capital | ||
Tangible Capital | $ 3,158 | $ 2,597 |
Company | Actual Ratio | ||
Total capital to risk-weighted assets: | ||
Capital Ratio | 10.22% | 9.08% |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital Ratio | 0.0967 | 0.0814 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital ratio | 0.0967 | 0.0814 |
Tier One Leverage Capital | ||
Tier One Leverage Capital ratio | 0.0558 | 0.0482 |
Tangible Capital | ||
Tangible Capital ratio | 0.0558 | 0.0482 |
Bank | Actual Amount | ||
Total capital to risk-weighted assets: | ||
Capital | $ 3,300 | $ 2,897 |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital | 3,120 | 2,597 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital | 3,120 | 2,597 |
Tier One Leverage Capital | ||
Tier One Leverage Capital | 3,120 | 2,597 |
Tangible Capital | ||
Tangible Capital | 3,120 | 2,597 |
Bank | Well Capitalized Amount | ||
Total capital to risk-weighted assets: | ||
Capital | 3,265 | 3,190 |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital | 2,612 | 2,074 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital | 2,122 | 2,074 |
Tier One Leverage Capital | ||
Tier One Leverage Capital | 2,829 | 2,692 |
Bank | Adequately Capitalized Amount | ||
Total capital to risk-weighted assets: | ||
Capital | 2,612 | 2,552 |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital | 1,959 | 1,914 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital | 1,469 | 1,436 |
Tier One Leverage Capital | ||
Tier One Leverage Capital | $ 2,263 | $ 2,154 |
Bank | Actual Ratio | ||
Total capital to risk-weighted assets: | ||
Capital Ratio | 10.11% | 9.08% |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital Ratio | 0.0956 | 0.0814 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital ratio | 0.0956 | 0.0814 |
Tier One Leverage Capital | ||
Tier One Leverage Capital ratio | 0.0551 | 0.0482 |
Tangible Capital | ||
Tangible Capital ratio | 0.0551 | 0.0482 |
Bank | Well Capitalized Ratio | ||
Total capital to risk-weighted assets: | ||
Capital Ratio | 10.00% | 10.00% |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital Ratio | 0.0800 | 0.08 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital ratio | 0.0650 | 0.065 |
Tier One Leverage Capital | ||
Tier One Leverage Capital ratio | 0.0500 | 0.05 |
Bank | Adequately Capitalized Ratio | ||
Total capital to risk-weighted assets: | ||
Capital Ratio | 8.00% | 8.00% |
Tier I capital to risk-weighted assets: | ||
Tier One Risk Based Capital Ratio | 0.0600 | 0.06 |
Common Equity Tier One Capital | ||
Common Equity Tier One Capital ratio | 0.0450 | 0.045 |
Tier One Leverage Capital | ||
Tier One Leverage Capital ratio | 0.0400 | 0.04 |
15. Subsequent Events (Details)
15. Subsequent Events (Details) $ in Thousands | 1 Months Ended | ||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2019 | Dec. 31, 2017 | |
Tier One Leverage Capital Ratio | 0.0551 | ||||
Risk Based Capital Ratio | 0.1011 | ||||
Subsequent Event [Member] | |||||
Tier One Leverage Capital Ratio | 0.1059 | 0.0566 | |||
Risk Based Capital Ratio | 0.2117 | 0.1191 | |||
Grant received | $ 3,400 | $ 2,500 | |||
Contributed capital | 2,800 | ||||
Deferred revenue | $ 617 | ||||
Loans write down | $ 473 |
16. Earnings Per Share Computat
16. Earnings Per Share Computation (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||
Common stock equivalents | 0 | 0 |
16. Earnings Per Share Comput_2
16. Earnings Per Share Computation: Schedule of Net Loss per Common Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||||||||||
Net Income (loss) | $ (30,000) | $ 29,000 | $ (115,000) | $ (203,000) | $ 8,000 | $ (100,000) | $ 316,000 | $ (199,000) | $ (319,426) | $ 24,537 |
Income (loss) attributable to common stockholders, basic (numerator) | $ (319,426,000) | $ 24,537,000 | ||||||||
Weighted Average Number of Shares Outstanding, Basic (denominator) | 826,921 | 826,921 | ||||||||
Earnings Per Share, Basic | $ (0.03) | $ 0.03 | $ (0.14) | $ (0.25) | $ 0.01 | $ (0.12) | $ 0.38 | $ (0.24) | $ (0.39) | $ 0.03 |
Income (loss) attributable to common stockholders, basic (numerator) | $ (319,426,000) | $ 24,537,000 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted (denominator) | 826,921 | 826,921 | ||||||||
Earnings Per Share, Diluted | $ (0.03) | $ 0.03 | $ (0.14) | $ (0.25) | $ 0.01 | $ (0.12) | $ 0.38 | $ (0.24) | $ (0.39) | $ 0.03 |
17. Summary of Quarterly Resu_3
17. Summary of Quarterly Results (unaudited): Schedule of Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Text Block [Abstract] | ||||||||||
Interest income | $ 651,000 | $ 674,000 | $ 583,000 | $ 633,000 | $ 614,000 | $ 642,000 | $ 737,000 | $ 593,000 | $ 2,540,511 | $ 2,587,393 |
Interest expense | 20,000 | 19,000 | 16,000 | 17,000 | 17,000 | 17,000 | 16,000 | 16,000 | 71,681 | 65,972 |
Net interest income | 631,000 | 655,000 | 567,000 | 616,000 | 597,000 | 625,000 | 721,000 | 577,000 | 2,468,830 | 2,521,421 |
Provision (credit) for loan losses | 9,000 | (15,000) | (46,000) | (30,000) | (19,000) | (45,000) | 30,000 | (35,000) | (82,000) | (69,000) |
Net interest after provision (credit) for loan losses | 622,000 | 670,000 | 613,000 | 646,000 | 616,000 | 670,000 | 691,000 | 612,000 | 2,550,830 | 2,590,421 |
Noninterest income | 453,000 | 490,000 | 307,000 | 241,000 | 538,000 | 392,000 | 705,000 | 288,000 | 1,491,296 | 1,922,858 |
Noninterest expense | 1,105,000 | 1,131,000 | 1,035,000 | 1,090,000 | 1,146,000 | 1,162,000 | 1,080,000 | 1,099,000 | 4,361,552 | 4,488,742 |
Net (loss) income | $ (30,000) | $ 29,000 | $ (115,000) | $ (203,000) | $ 8,000 | $ (100,000) | $ 316,000 | $ (199,000) | $ (319,426) | $ 24,537 |
Basic (loss) income per common share | $ (0.03) | $ 0.03 | $ (0.14) | $ (0.25) | $ 0.01 | $ (0.12) | $ 0.38 | $ (0.24) | $ (0.39) | $ 0.03 |
Diluted (loss) income per common share | $ (0.03) | $ 0.03 | $ (0.14) | $ (0.25) | $ 0.01 | $ (0.12) | $ 0.38 | $ (0.24) | $ (0.39) | $ 0.03 |
18. Going Concern (Details)
18. Going Concern (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Net income (loss) | $ (30,000) | $ 29,000 | $ (115,000) | $ (203,000) | $ 8,000 | $ (100,000) | $ 316,000 | $ (199,000) | $ (319,426) | $ 24,537 |
Tier One Leverage Capital Ratio | 0.0551 | 0.0551 | ||||||||
Risk Based Capital Ratio | 0.1011 | 0.1011 |