Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jul. 18, 2022 | Jul. 09, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | UNITED BANCSHARES INC /PA | ||
Entity Central Index Key | 0000944792 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | No | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Common Stock Shares Outstanding | 843,050 | ||
Entity Public Float | $ 0 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-25976 | ||
Entity Incorporation State Country Code | PA | ||
Entity Tax Identification Number | 23-2802415 | ||
Entity Address Address Line 1 | The Graham Building | ||
Entity Address Address Line 2 | 30 South 15th Street | ||
Entity Address Address Line 3 | 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 | ||
Entity Interactive Data Current | No | ||
Auditor Name | S.R. Snodgrass, P.C. | ||
Auditor Location | Cranberry Township, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 2,003,085 | $ 2,075,258 |
Interest-bearing deposits with banks | 3,360,937 | 311,995 |
Federal funds sold | 3,074,021 | 9,284,000 |
Cash and cash equivalents | 8,438,043 | 11,671,253 |
Investment securities, available-for-sale, at fair value | 4,580,610 | 5,144,707 |
Loans held for sale, at fair value | 10,072,777 | 10,297,168 |
Loans held at fair value | 5,420,004 | 4,450,901 |
Loans, net of unearned discounts and deferred fees | 20,542,863 | 25,725,700 |
Less allowance for loan losses | (278,095) | (179,949) |
Net loans | 20,264,768 | 25,545,751 |
Bank premises and equipment, net | 163,124 | 303,298 |
Accrued interest receivable | 152,953 | 153,415 |
Other real estate owned | 391,571 | 626,071 |
Servicing asset | 313,489 | 319,368 |
Prepaid expenses and other assets | 397,284 | 496,935 |
Total assets | 50,194,623 | 59,008,867 |
Liabilities: | ||
Demand deposits, noninterest-bearing | 16,216,607 | 19,606,017 |
Demand deposits, interest-bearing | 13,599,641 | 15,004,238 |
Savings deposits | 10,589,054 | 11,505,417 |
Time deposits, under $250,000 | 3,467,732 | 4,331,306 |
Time deposits, $250,000 and over | 4,399,159 | 5,008,276 |
Total deposits | 48,272,193 | 55,455,254 |
Accrued interest payable | 17,376 | 13,939 |
Accrued expenses and other liabilities | 145,308 | 259,152 |
Total liabilities | 48,434,877 | 55,728,345 |
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 | 15,677,626 |
Accumulated deficit | (13,834,625) | (12,348,988) |
Accumulated other comprehensive loss | (92,535) | (57,396) |
Total shareholders' equity | 1,759,746 | 3,280,522 |
Total liabilities and shareholders' equity | 50,194,623 | 59,008,867 |
Series A Preferred Stock [Member] | ||
Shareholders' equity: | ||
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 99,342 issued and outstanding | 993 | 993 |
Series B, Preferred Stock | ||
Shareholders' equity: | ||
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 99,342 issued and outstanding | $ 18 | $ 18 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock, shares issued (in shares) | 826,921 | 826,921 |
Common Share Outsatnding | 826,921 | 826,921 |
Series A Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Authorized | 500,000 | 500,000 |
Preferred stock,Issued | 99,342 | 99,342 |
Preferred stock,Outstanding | 99,342 | 99,342 |
Series B, Preferred Stock | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Authorized | 7,000 | 7,000 |
Preferred stock,Issued | 1,850 | 1,850 |
Preferred stock,Outstanding | 1,850 | 1,850 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | ||
Interest and fees on loans | $ 2,380,364 | $ 2,313,675 |
Interest on investment securities | 114,793 | 122,083 |
Interest on federal funds sold | 134,276 | 103,975 |
Interest on interest-bearing deposits with other banks | 49,781 | 778 |
Total interest income | 2,679,214 | 2,540,511 |
Interest expense: | ||
Interest on time deposits | 46,474 | 40,042 |
Interest on demand deposits | 25,783 | 25,786 |
Interest on savings deposits | 5,570 | 5,853 |
Total interest expense | 77,827 | 71,681 |
Net interest income | 2,601,387 | 2,468,830 |
Provision (credit) for loan losses | 317,000 | (82,000) |
Net interest income after provision (credit) for loan losses | 2,284,387 | 2,550,830 |
Noninterest income: | ||
Customer service fees | 408,843 | 396,731 |
ATM fee income | 101,174 | 119,561 |
Loan syndication fee income | 150,000 | 154,402 |
Net loss on sale of other real estate | (11,588) | 0 |
Net change in fair value of financial instruments | (636,945) | 337,567 |
Gain on sale of loans | 365,723 | 387,177 |
Other income | 130,754 | 95,858 |
Total noninterest income | 507,961 | 1,491,296 |
Noninterest expense: | ||
Salaries, wages and employee benefits | 1,536,971 | 1,580,068 |
Occupancy and equipment | 973,223 | 995,985 |
Office operations and supplies | 256,786 | 327,032 |
Marketing and public relations | 29,801 | 23,468 |
Professional services | 215,333 | 189,875 |
Data processing | 414,051 | 400,120 |
Loan and collection costs | 196,794 | 194,783 |
Other real estate owned, net | 47,134 | 78,730 |
Deposit insurance assessments | 97,000 | 95,965 |
Other operating | 510,892 | 475,526 |
Total noninterest expense | 4,277,985 | 4,361,552 |
Net loss before income taxes | (1,485,637) | (319,426) |
Provision for income taxes | 0 | 0 |
Net loss | $ (1,485,637) | $ (319,426) |
Net loss per common share-basic and diluted | $ (1.80) | $ (0.39) |
Weighted average number of common shares | 826,921 | 826,921 |
Comprehensive Loss | ||
Net loss | $ (1,485,637) | $ (319,426) |
Unrealized (losses) gains on available for sale securities, net of tax | (35,139) | 15,033 |
Total comprehensive loss | $ (1,520,776) | $ (304,393) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Series A Preferred Stock | Series B Preferred Stock |
Balance, shares at Dec. 31, 2016 | 826,921 | 99,342 | |||||
Balance, amount at Dec. 31, 2016 | $ 2,659,915 | $ 8,269 | $ 14,752,644 | $ (12,038,281) | $ (63,710) | $ 993 | $ 0 |
Net loss | (319,426) | 0 | 0 | (319,426) | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 15,033 | 0 | 0 | 0 | 15,033 | 0 | 0 |
Effect of adoption of ASU 2018-02 | 0 | $ 0 | 0 | 8,719 | (8,719) | $ 0 | $ 0 |
Issuance of Series B Preferred Stock, shares | 1,850 | ||||||
Issuance of Series B Preferred Stock, amount | 925,000 | 924,982 | 0 | 0 | $ 18 | ||
Balance, shares at Dec. 31, 2017 | 826,921 | 99,342 | 1,850 | ||||
Balance, amount at Dec. 31, 2017 | 3,280,522 | $ 8,269 | 15,677,626 | (12,348,988) | (57,396) | $ 993 | $ 18 |
Net loss | (1,485,637) | 0 | 0 | (1,485,637) | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (35,139) | $ 0 | 0 | 0 | (35,139) | $ 0 | $ 0 |
Balance, shares at Dec. 31, 2018 | 826,921 | 99,342 | 1,850 | ||||
Balance, amount at Dec. 31, 2018 | $ 1,759,746 | $ 8,269 | $ 15,677,626 | $ (13,834,625) | $ (92,535) | $ 993 | $ 18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (1,485,637) | $ (319,426) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision (credit) for loan losses | 317,000 | (82,000) |
Net loss on sale of other real estate | 11,588 | 0 |
Gain on sale of loans | (365,723) | (387,177) |
Amortization of premiums on investments | 6,843 | 9,594 |
Depreciation on fixed assets | 160,261 | 185,882 |
Write-down of other real estate owned | 5,000 | 4,972 |
Loans originated for sale | (4,868,111) | (4,763,580) |
Proceeds from sale of loans held-for-sale | 3,852,177 | 2,741,378 |
Amortization of servicing asset | 91,336 | 50,154 |
Net change in fair value of financial instruments | 636,945 | (337,567) |
Increase (decrease) in accrued interest receivable and other assets | 14,656 | (159,465) |
Decrease in accrued interest payable and other liabilities | (110,407) | (37,199) |
Net cash used in operating activities | (1,734,072) | (3,094,434) |
Cash flows from investing activities: | ||
Purchase of available-for-sale investment securities | (2,489) | 0 |
Proceeds from maturities, calls and principal reductions of available-for-sale investment securities | 524,604 | 446,293 |
Net decrease in loans | 4,963,983 | 887,184 |
Proceeds from sale of other real estate owned | 217,912 | 0 |
Purchase of bank premises and equipment | (20,087) | (108,709) |
Net cash provided by investing activities | 5,683,923 | 1,224,768 |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (7,183,061) | 4,813,088 |
Proceeds from sale of preferred stock | 0 | 925,000 |
Net cash (used in) provided by financing activities | (7,183,061) | 5,738,088 |
Net (decrease) increase in cash and cash equivalents | (3,233,210) | 3,868,422 |
Cash and cash equivalents at beginning of year | 11,671,253 | 7,802,831 |
Cash and cash equivalents at end of year | 8,438,043 | 11,671,253 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 74,391 | 68,739 |
Noncash transfer of loans to other real estate owned | $ 0 | $ 183,672 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 has 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 for sale, and 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, 2018 and 2017 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. 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 in 2017 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, 2018 or 2017, 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 2018 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, 2018 (in 000’s) Before tax Tax Net of tax amount Benefit Amount Beginning balance $ (73 ) $ 16 $ (57 ) Unrealized loss on securities (44 ) 9 (35 ) Other comprehensive loss, net (44 ) 9 (35 ) Ending balance $ (117 ) $ 25 $ (92 ) 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 Reclassification due to adoption of ASU 2018-02 - (9 ) (9 ) Other comprehensive loss, net 23 (17 ) 6 Ending balance $ (73 ) $ 16 $ (57 ) Effect of the Adoption of Accounting Standards Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers — Topic 606 and all subsequent ASUs that modified ASC 606. The standard required a company to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers at the time the transfer of goods or services takes place. The Company completed an assessment of revenue streams and review of the related contracts potentially affected by the new standard and concluded that ASU 2014-09 did not materially change the method in which it recognizes revenue. Therefore, implementation of the new standard had no material impact to the measurement or recognition of revenue of prior periods. However, additional disclosures were added in the current period, which can be found in Note 9. In January 2016, the FASB finalized ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company has adopted this standard during the reporting period. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 8 to the financial statements. The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the March 31, 2018 disclosure. The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is no active observable market for sale information on community bank loans and time deposits and, thus, Level III fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values. Effect of Upcoming Accounting Standards 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 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 In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) rates (IBORs) to new references rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions within Topic 848. ASU 2021-01 clarifies that the derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. ASU 2021-01 is effective immediately for all entities. Entities may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The amendments in this update do not apply to contract modifications made, as well as new hedging relationships entered into, after December 31, 2022, and to existing hedging relationships evaluated for effectiveness for periods after December 31, 2022, except for certain hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. This Update is not expected to have a significant impact on the Company’s financial statements. |
CASH AND DUE FROM BANK BALANCES
CASH AND DUE FROM BANK BALANCES | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND DUE FROM BANK BALANCES | |
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, 2018. Required reserve balances were $100,000 as of December 31, 2018 and 2017. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENTS | |
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, 2018 and 2017 are as follows: (in $000) 2018 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value U.S. Government agency securities $ 2,349 $ - $ (72 ) $ 2,277 Government Sponsored Enterprises residential mortgage-backed securities 2,349 9 (54 ) 2,304 $ 4,698 $ 9 $ (126 ) $ 4,581 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 Upon the adoption of ASU 2016-01, the balance of money market funds was reclassified into cash and cash equivalents on the Consolidated Balance Sheet. In 2018 and 2017, no securities were called. There were no sales of securities in 2018 and 2017. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2018 (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 $ - $ - $ 2,277 $ (72 ) $ 2,277 $ (72 ) Mortgage backed Securities 14 718 (10 ) 1,299 (44 ) 2,017 (54 ) Total temporarily impaired investment Securities 21 $ 718 $ (10 ) $ 3,576 $ (116 ) $ 4,294 $ (126 ) 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 ) 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, 2018 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 2,349 2,277 Due after five years through ten years - - Government-sponsored enterprises residential mortgage-backed securities 2,349 2,304 $ 4,698 $ 4,581 As of December 31, 2018 and 2017, investment securities with a carrying value of $3,668,000 and $4,297,000, respectively, were pledged as collateral to secure public deposits and contingent borrowing at the Federal Reserve Discount Window |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
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) 2018 2017 Commercial and industrial: Commercial $ 1,055 $ 909 SBA loans 18 19 Asset-based 472 870 Total commercial and industrial 1,545 1,798 Commercial real estate: Commercial mortgages 9,532 11,671 SBA loans 248 669 Construction - 419 Religious organizations 7,257 8,630 Total commercial real estate 17,038 21,389 Consumer real estate: Home equity loans 628 641 Home equity lines of credit 15 17 1-4 family residential mortgages 583 1,071 Total consumer real estate 1,226 1,729 Consumer and other: Student loans 622 700 Other 112 109 Total consumer and other 734 809 Allowance for loan losses (278 ) (180 ) Loans, net $ 20,265 $ 25,545 At December 31, 2018 there was no unearned discount. At December 31, 2017, the unearned discount totaled $10,858, 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 nonowner-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 2018 2017 Balance outstanding at December 31, $ 679,612 $ 866,934 Principal additions (affiliations) - - Disaffiliations - - Principal reductions (224,288 ) (187,322 ) Balance outstanding at December 31, $ 455,324 $ 679,612 Non-accrual and Past Due Loans. An age analysis of past due loans, segregated by class of loans, as of December 31, 2018 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 $ - $ - $ - $ - $ 1,055 $ 1,055 SBA loans - - 18 18 - 18 Asset-based - - 76 76 396 472 Total commercial and industrial - - 94 94 1,451 1,545 Commercial real estate: Commercial mortgages - 45 902 947 8,585 9,532 SBA loans - - 69 69 179 248 Construction - - - - - - Religious organizations - - 179 179 7,078 7,257 Total commercial real estate - 45 1,150 1,195 15,843 17,038 Consumer real estate: Home equity loans - 150 281 431 197 628 Home equity lines of credit - - - - 15 15 1-4 family residential mortgages - - 85 85 498 583 Total consumer real estate - 150 366 516 710 1,226 Consumer and other: Student loans 14 57 - 71 551 622 Other 1 - - 1 111 112 Total consumer and other 15 57 - 72 662 734 Total loans $ 15 $ 252 $ 1,661 $ 1,928 $ 18,615 $ 20,543 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 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 2018 and 2017, the Bank made partial charge-offs totaling approximately $18,000 and $52,000, 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 2018 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 $ 213 $ - $ 213 $ 213 $ 81 $ 213 $ 2 SBA - - - - - - - Asset based 76 - 76 76 14 76 - Total Commercial and industrial 289 - 289 289 95 289 2 Commercial real estate: Commercial mortgages 898 739 159 898 13 948 - SBA Loans 71 71 - 71 - 74 - Religious Organizations 179 - 179 179 31 182 - Total Commercial real estate 1,148 810 338 1,148 44 1,204 - Total Loans $ 1,437 $ 810 $ 627 $ 1,437 $ 139 $ 1,493 $ 2 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 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, 2018 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 250 $ 592 $ - $ - $ 213 $ - $ 1,055 SBA loans - - - - 18 - 18 Asset-based - 272 124 - - 76 472 250 864 124 - 231 76 1,545 Commercial real estate: Commercial mortgages - 5,814 2,759 52 703 204 9,532 SBA Loans - 179 - - 69 - 248 Construction - - - - - - - Religious organizations 24 5,041 2,013 - 180 - 7,258 24 11,034 4,772 52 952 204 17,038 Total commercial loans $ 274 $ 11,898 $ 4,896 $ 52 $ 1,183 $ 280 $ 18,583 Residential Mortgage and Consumer Loans December 31, 2018 Performing Nonperforming Total Consumer Real Estate: Home equity $ 197 $ 431 $ 628 Home equity line of credit 15 - 15 1-4 family residential mortgages 498 85 583 710 516 1,226 Consumer Other: Student loans 565 57 622 Other 112 - 112 677 57 734 Total consumer loans $ 1,387 $ 573 $ 1,960 (In 000’s) Commercial Loans, December 31, 2017 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful 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 $ 229 $ 412 $ 641 Home equity line of credit 17 - 17 1-4 family residential mortgages 1,023 48 1,071 1,269 460 1,729 Consumer Other: Student loans 645 55 700 Other 108 1 109 753 56 809 Total consumer loans $ 2,022 $ 516 $ 2,538 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 no changes in qualitative factors in 2018. There was a decrease in the historical loss factor for commercial and industrial loans in 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 in 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. 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 2018 and 2017 is as follows: (in 000’s) Year to Date ended December 31, 2018 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Beginning balance $ 7 $ 155 $ 10 $ 8 $ - $ 180 Provision for possible loan losses 300 (3 ) (6 ) (7 ) 33 317 Charge-offs (208 ) (18 ) - (8 ) - (234 ) Recoveries 3 5 - 7 - 15 Net charge-offs (205 ) (13 ) - - - (219 ) Ending balance $ 102 $ 139 $ 4 $ - $ 33 $ 278 (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 Credit 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 an increase in the historical loss factor for commercial and industrial loans when comparing 2017 and 2018 due to net charge-off activity; however, this increase was offset by a decline in the average balances because of a reduction in loan balances as the Bank shifted away from non-SBA commercial and industrial loan originations. There were no changes in qualitative factors. The overall result was the general reserve requirement for commercial and industrial loans remained relatively unchanged from 2017. There was a decrease in the historical loss factor for consumer installment loans when comparing 2017 and 2018 as a result of net recoveries coupled with a reduction in the average balance of consumer installment loans as a result of loan paydowns without replacement as the Bank no longer originates consumer loans. There were no changes in qualitative factors. The overall result was a reduction in the general reserve requirement for consumer real estate 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, 2018 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 95 $ 44 $ - $ - $ - $ 139 Loans collectively evaluated for impairment 7 95 4 - 33 139 $ 102 $ 139 $ 4 $ - $ 33 $ 278 Loans, ending balance: Loans individually evaluated for impairment $ 289 $ 1,148 $ - $ - $ - $ 1,437 Loans collectively evaluated for impairment 1,256 15,890 1,226 734 - 19,106 Total $ 1,545 $ 17,038 $ 1,226 $ 734 $ - $ 20,543 (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 Troubled debt restructurings |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
BANK PREMISES AND EQUIPMENT | |
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 2018 2017 Leasehold improvements 10-15 years $ 834 $ 832 Furniture and equipment 3- 7 years 1,457 1,439 2,291 2,271 Less accumulated depreciation (2,128 ) (1,968 ) $ 163 $ 303 Depreciation expense on fixed assets totaled $160,261 and $185,882 for the years ended December 31, 2018 and 2017, 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, 2018 and 2017 was $473,767 and $477,689, respectively. Future minimum lease payments under operating leases are as follows: (In 000’s) Year ending December 31, Operating leases 2019 $ 515 2020 438 2021 447 2022 455 2023 316 Thereafter - Total minimum lease payments $ 2,171 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2018 | |
OTHER REAL ESTATE OWNED | |
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, 2018 and 2017: (in 000’s) 2018 2017 Commercial real estate $ 168 $ 294 Residential real estate 224 332 Total $ 392 $ 626 A summary of the change in other real estate owned follows: (in 000’s) Year Ended December 31, 2018 Year Ended December 31, 2017 Beginning Balance $ 626 $ 447 Additions, transfers from loans - 184 Sales (229 ) - Subtotal 397 631 Write-downs (5 ) (5 ) Ending Balance $ 392 $ 626 There was no residential real estate in the process of foreclosure as of December 31, 2018 and 2017. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
DEPOSITS | |
7. DEPOSITS | 7. DEPOSITS At December 31, 2018, the scheduled maturities of time deposits (certificates of deposit) are as follows: (In 000’s) 2019 $ 7,010 2020 499 2021 116 2022 136 2023 84 Thereafter 22 $ 7,867 The Company has a significant deposit relationship with the City of Philadelphia for which deposits totaled approximately $2.5 million at December 31, 2018. Total deposits in excess of $250,000 totaled approximately $12,820,000 and $17,010,000 at December 31, 2018 and 2017, respectively. Additionally, deposits held by related parties totaled $223,246 at December 31, 2018. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
BORROWINGS | |
8. BORROWINGS | 8. BORROWINGS At December 31, 2018, 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, 2018 and 2017, the Bank had no borrowings outstanding. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | |
9. INCOME TAXES | 9. INCOME TAXES At December 31, 2018, the Bank has net operating loss carry forwards of approximately $11,763,000 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 $2,755,000 and $2,505,700 as of December 31, 2018 and 2017, 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) 2018 2017 Deferred tax assets (liabilities): Provision for loan losses $ 29 $ 7 Unrealized (loss) gain on investment securities (25 ) (15 ) Depreciation 37 (22 ) Net operating carryforwards 2,459 2,243 Other, net 230 278 Valuation allowance for deferred tax assets (2,755 ) (2,506 ) Net deferred tax assets $ (25 ) $ (15 ) 2018 2017 Effective rate reconciliation: Tax at statutory rate (21% in 2018, 34% in 2017) $ (312 ) $ (109 ) Change in tax rate - 1,551 Nondeductible expenses 6 8 Increase in valuation allowance 290 (1,371 ) True-up of NOL 6 (74 ) Other 10 (5 ) Total tax expense $ - $ - At December 31, 2018 and 2017, 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, as of December 31, 2018, 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. |
FINANCIAL INSTRUMENT COMMITMENT
FINANCIAL INSTRUMENT COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENT COMMITMENTS | |
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: 2018 2017 Commitments to extend credit $ 1,903,000 $ 4,670,000 Outstanding letters of credit 45,000 317,000 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE MEASUREMENTS | |
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 As of December 31, 2018 and 2017, the fair value of the Bank’s available-for-sale securities portfolio was approximately $4,581,000 and $5,145,000 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, 2018 or 2017. 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 December 31, 2018 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 $ 2,277 $ - $ 2,277 $ - Government Sponsored Enterprises residential mortgage-backed securities 2,304 $ - 2,304 - Total $ 4,581 $ - $ 4,581 - Loans held for sale $ 10,073 $ - $ 10,073 - Loans held at fair value $ 5,420 $ - $ - $ 5,420 Servicing asset $ 313 $ - $ - $ 313 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at December 31, 2017 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 $ 2,273 $ - $ 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 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, recovery rates, and discount rates as follows: (in 000’s Assets measured at fair value December 31, 2018 Fair value December 31, 2017 Fair value Principal valuation techniques Significant observable inputs December 31, 2018 Range of inputs (weighted average) December 31, 2017 Range of inputs Loans held at fair value: $5,420 $4,451 Discounted cash flow Constant prepayment rate 0% to 16.5% (10.35%) 8.54% to 10.41 % Weighted average life 2.04 yrs. to 6.89 yrs. (4.36 yrs.) 2.67 yrs. to 9.29 yrs. Discount rate 5.49% to 9.76% (7.86%) 9.00% to 11.62% Projected default rate 1.07% to 10.12% (3.57%) 0.75% to 7.61 % Projected recovery rate 9.66% to 51.86% (30.69%) (in 000’s) Assets measured at fair value December 31, 2018 Fair value December 31, 2017 Fair Value Principal valuation techniques Significant observable inputs December 31, 2018 Range of inputs (weighted average) December 31, 2017 Range of inputs Servicing asset $313 $319 Discounted cash flow Constant prepayment rate 4.94% to 15.92% (10.66%) 5.58% to 10.67 % Weighted average life 2.04 yrs. to 6.77 yrs. (4.35 yrs.) 2.67 yrs. to 9.09 yrs. Weighted average discount rate 11.38% to 19.61% (15.08%) 11.75% to 19.74% 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) 2018 2017 Balance at December 31, $ 4,451 $ 4,207 Origination of loans 1,420 816 Principal repayments (221 ) (191 ) Change in fair value (230 ) (381 ) Balance at December 31, $ 5,420 $ 4,451 Servicing Asset: (in 000’s) 2018 2017 Balance at December 31, $ 319 $ 313 Additions related to new loan origination 49 57 Change in fair value (55 ) (51 ) Balance at December 31, $ 313 $ 319 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 and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2018, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2018. Carrying Value at December 31, 2018: (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) Impaired Loans $ 324 $ - $ - $ 324 Other real estate owned $ 153 $ - $ - $ 153 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) Impaired Loans $ 134 $ - $ - $ 134 Other real estate owned $ 626 $ - $ - $ 626 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, 2018 and December 31, 2017, the fair values shown above exclude estimated selling costs of $ 15,000 and $16,000, 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 fair value of financial instruments not previously disclosed are depicted below: (in 000’s) Level in 2018 2017 Value Carrying Fair Carrying Fair Assets: Hierarchy Amount Value Amount Value Cash and cash equivalents Level 1 $ 8,438 $ 8,438 $ 11,671 $ 7,803 Loans, net of allowance for loan losses (1 ) 20,265 21,979 25,545 26,617 Accrued interest receivable Level 2 153 153 153 141 Liabilities: Demand deposits Level 2 29,816 29,816 34,610 28,497 Savings deposits Level 2 10,589 10,589 11,505 11,735 Time deposits (2 ) 7,867 7,757 9,339 10,395 Accrued interest Payable Level 2 17 17 14 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 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE RECOGNITION | |
12. REVENUE RECOGNITION | 12. REVENUE RECOGNITION Management determined that the primary sources of revenue associated with financial instruments, including interest income on loans and investments, along with certain noninterest revenue sources including gains on the sale of loans, the change in fair value of financial instruments, are not within the scope of Topic 606. As a result, no changes were made during the period related to these sources of revenue. The significant components of noninterest income within the scope of Topic 606 are as follows: Customer Service Fees and ATM Fees — The Company has contracts with its deposit account customers where fees are charged for certain items or services. Service charges include account analysis fees, monthly service fees, overdraft fees, and other deposit account related fees. Additionally, the Company collects revenue when outside customers utilize the Bank’s ATM machines for transactions. Revenue related to account analysis fees, ATM transactions and service fees is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. Fees attributable to specific performance obligations of the Company (i.e. overdraft fees, etc.) are recognized at a defined point in time based on completion of the requested service or transaction. Loan Syndication Fees – The Company contracts with certain corporate entities as an arranging institution for loan syndications whereby a fee is earned by the Company for soliciting, assembling, and obtaining commitments from other lenders related to certain facilities of the corporate entity. A portion of the fee is paid as an up-front payment for acting as the arranger, which is earned and recognized on the date the contract is signed without further commitment. Another portion of the fee is earned, and generally paid, upon completion of the loan syndication arrangement which is the performance obligation for that portion of the fee. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2018 and 2017. December 31, 2018 2017 (Dollars in thousands) Noninterest income: In-scope of Topic 606 Customer Service Fees $ 409 $ 397 ATM Fee Income 101 120 Loan Syndication Fees 150 154 Other income 37 48 Noninterest income (in-scope of Topic 606) 697 719 Noninterest income (out-of-scope of Topic 606) (189 ) 772 Total noninterest income $ 508 $ 1,491 |
CONSOLIDATED FINANCIAL INFORMAT
CONSOLIDATED FINANCIAL INFORMATION-PARENT COMPANY ONLY | 12 Months Ended |
Dec. 31, 2018 | |
13. CONSOLIDATED FINANCIAL INFORMATION-PARENT COMPANY ONLY | 13. CONSOLIDATED FINANCIAL INFORMATION—PARENT COMPANY ONLY Condensed Balance Sheets (Dollars in thousands) 2018 2017 Assets: Cash and cash equivalents $ 31 $ 38 Investment in United Bank of Philadelphia 1,728 3,242 Total assets $ 1,759 $ 3,280 Shareholders’ equity: Preferred stock $ 1 $ 1 Common stock 8 8 Additional paid-in capital 15,677 15,677 Accumulated deficit (13,834 ) (12,349 ) Accumulated other comprehensive loss (93 ) (57 ) Total shareholders’ equity $ 1,759 $ 3,280 Condensed Statements of Operations Years ended December 31, (Dollars in thousands) 2018 2017 Net loss $ (7 ) $ (12 ) Equity in net loss of subsidiary (1,479 ) (307 ) Net loss $ (1,486 ) $ (319 ) Years ended December 31, (Dollars in thousands) 2018 2017 Cash flows from operating activities: Net loss $ (1,486 ) $ (319 ) Adjustments: Equity in net loss of subsidiary 1,479 307 Net cash used in operating activities (7 ) (12 ) Cash flows from investing activities: Investment in subsidiary - (875 ) Total cash flows from investing activities - (75 ) Cash flows from financing activities: Issuance of Series B Preferred Stock - 925 Total cash flows from financing activities (7 ) 925 Cash and cash equivalents at beginning of year 38 - Cash and cash equivalents at end of year $ 31 $ 38 |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
14. REGULATORY MATTERS | 14. 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, 2018, from the FDIC and PADOB categorized the Bank as “under-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, 2018: (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 $ 1,817 6.48 % N/A $ 3,338 10.22 % Bank 1,777 6.34 2,803 10.00 % 3,300 10.11 Tier I capital to risk weighted assets Company 1,539 5.49 N/A 3,158 9.67 Bank 1,499 5.35 2,242 8.00 % 3,120 9.56 Common equity Tier I capital to risk weighted assets Company 1,539 5.49 N/A 3,158 9.67 Bank 1,499 5.35 1,822 6.50 % 3,120 9.56 Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company 1,539 3.08 N/A 3,158 5.58 Bank 1,499 3.00 2,502 5.00 % 3,120 5.51 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 % 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, 2018 and December 31, 2017, the Bank’s tier one leverage capital ratio was 3.00% and 5.51%, respectively, and its total risk-based capital ratio was 6.34% and 10.11%, 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. In May 2021, the Company received a $600,000 capital investment from another financial institution. · 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. · Other grants---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 grant revenue 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. Further, in August 2021, the Bank was awarded a grant totaling $1,286,000 from the US Treasury’s CDFI Rapid Response Program that was geared to strengthen the Bank as the economy recovers from the effects of the COVID-19 pandemic. This grant resulted in further improvement in the Bank’s capital ratios. 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. As of March 31, 2022, the Bank’s total risk-based capital ratio and Tier 1 risk-based capital ratios were 23.01% and 9.83%, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENT COMMITMENTS | |
15. COMMITMENTS AND CONTINGENCIES | 15. 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | |
16. SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS 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 and fair value write-downs may have an adverse effect on its capital ratios. During the year ended December 31, 2019, there were write-downs of loans held at fair value totaling approximately $639,000 primarily related to credit deterioration on the Bank’s SBA loan portfolio. 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 noninterest income 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. In May 2021, the Company received an external investment of $600,000 from another financial institution from the issuance of a combination of Common voting and Series C Preferred Stock. Further, in August 2021, the Bank was awarded a grant totaling $1,286,000 from the US Treasury’s CDFI Rapid Response Program that was geared to strengthen the Bank as the economy recovers from the effects of the COVID-19 pandemic. At March 31, 2022, the Bank’s Tier 1 leverage ratio was 9.83% and its total risk-based capital ratio was 23.01% which is considered “well capitalized” under the regulatory framework for prompt and corrective action. |
EARNINGS PER SHARE COMPUTATION
EARNINGS PER SHARE COMPUTATION | 12 Months Ended |
Dec. 31, 2018 | |
EARNINGS PER SHARE COMPUTATION | |
17. EARNINGS PER SHARE COMPUTATION | 17. EARNINGS PER SHARE COMPUTATION Net income (loss) per common share is calculated as follows: Year ended December 31, 2018 Loss Shares Per share (numerator) (denominator) amount Net loss $ (1,485,637 ) Basic EPS Income attributable to common stockholders $ (1,485,637 ) 826,921 $ (1.80 ) Diluted EPS Income attributable to common stockholders $ (1,485,637 ) 826,921 $ (1.80 ) 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 ) There were no common stock equivalents for the years December 31, 2018 and 2017. 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. |
SUMMARY OF QUARTERLY RESULTS (U
SUMMARY OF QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF QUARTERLY RESULTS (UNAUDITED) | |
18. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) | 18. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) The following summarizes the company’s consolidated results of operations during 2018 and 2017, on a quarterly basis: (Dollars in thousands) 2018 Fourth Third Second First Quarter Quarter Quarter Quarter Interest income $ 708 $ 678 $ 675 $ 618 Interest expense 19 19 20 20 Net interest income 689 659 654 598 Provision (credit) for loan losses 272 20 5 20 Net interest after provision (credit) for loan losses 417 639 649 578 Noninterest income (419 ) 392 221 314 Noninterest expense 1,077 1,089 1,023 1,090 Net income (loss) $ (1,079 ) $ (57 ) $ (152 ) $ (198 ) Basic income (loss) per common share $ (1.31 ) $ (0.07 ) $ (0.18 ) $ (0.24 ) Diluted income (loss) per common share $ (1.31 ) $ (0.07 ) $ (0.18 ) $ (0.24 ) (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 ) |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2018 | |
GOING CONCERN | |
19. GOING CONCERN | 19. 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 $1,486,000 and $319,000 for the years ended December 31, 2018 and 2017, respectively. 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, 2018, the Bank’s Tier 1 leverage capital ratio was 3.00% and its total risk-based capital ratio was 6.34%, which is considered “under- 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 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 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 approximately $1.2 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 has resulted in the reversal of approximately $200,000 in fair value write-downs. In 2020, as a result of collection efforts as well as increased capital levels, there has been an improvement in asset quality ratios that comply with the Bank’s Consent Orders. · Strengthen Capital: A concentrated effort will continue to be made to stabilize and strengthen the Bank’s capital. Management has identified sources of external capital that have been received in 2020 and 2021. This capital will be used to further strengthen the Bank’s balance sheet. As of March 31, 2022, the Bank’s tier one leverage capital ratio was 9.83% and its total risk-based capital ratio was 23.01%, which is considered “well - capitalized”. · 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 March 2021. Management plans to implement the Restoration Plan 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 has 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 for sale, and 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, 2018 and 2017 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. 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 in 2017 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, 2018 or 2017, 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 2018 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, 2018 (in 000’s) Before tax Tax Net of tax amount Benefit Amount Beginning balance $ (73 ) $ 16 $ (57 ) Unrealized loss on securities (44 ) 9 (35 ) Other comprehensive loss, net (44 ) 9 (35 ) Ending balance $ (117 ) $ 25 $ (92 ) 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 Reclassification due to adoption of ASU 2018-02 - (9 ) (9 ) Other comprehensive loss, net 23 (17 ) 6 Ending balance $ (73 ) $ 16 $ (57 ) |
Effect of the Adoption of Accounting standards | Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers — Topic 606 and all subsequent ASUs that modified ASC 606. The standard required a company to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers at the time the transfer of goods or services takes place. The Company completed an assessment of revenue streams and review of the related contracts potentially affected by the new standard and concluded that ASU 2014-09 did not materially change the method in which it recognizes revenue. Therefore, implementation of the new standard had no material impact to the measurement or recognition of revenue of prior periods. However, additional disclosures were added in the current period, which can be found in Note 9. In January 2016, the FASB finalized ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company has adopted this standard during the reporting period. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 8 to the financial statements. The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the March 31, 2018 disclosure. The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is no active observable market for sale information on community bank loans and time deposits and, thus, Level III fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values. |
Effect of Upcoming Accounting Standards | 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 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 In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) rates (IBORs) to new references rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions within Topic 848. ASU 2021-01 clarifies that the derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. ASU 2021-01 is effective immediately for all entities. Entities may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The amendments in this update do not apply to contract modifications made, as well as new hedging relationships entered into, after December 31, 2022, and to existing hedging relationships evaluated for effectiveness for periods after December 31, 2022, except for certain hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. This Update is not expected to have a significant impact on the Company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Comprehensive Income (Loss) | December 31, 2018 (in 000’s) Before tax Tax Net of tax amount Benefit Amount Beginning balance $ (73 ) $ 16 $ (57 ) Unrealized loss on securities (44 ) 9 (35 ) Other comprehensive loss, net (44 ) 9 (35 ) Ending balance $ (117 ) $ 25 $ (92 ) 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 Reclassification due to adoption of ASU 2018-02 - (9 ) (9 ) Other comprehensive loss, net 23 (17 ) 6 Ending balance $ (73 ) $ 16 $ (57 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENTS | |
Amortized cost, gross unrealized holding gains and losses, and estimated fair value | (in $000) 2018 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value U.S. Government agency securities $ 2,349 $ - $ (72 ) $ 2,277 Government Sponsored Enterprises residential mortgage-backed securities 2,349 9 (54 ) 2,304 $ 4,698 $ 9 $ (126 ) $ 4,581 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 |
Description of Securities | 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 $ - $ - $ 2,277 $ (72 ) $ 2,277 $ (72 ) Mortgage backed Securities 14 718 (10 ) 1,299 (44 ) 2,017 (54 ) Total temporarily impaired investment Securities 21 $ 718 $ (10 ) $ 3,576 $ (116 ) $ 4,294 $ (126 ) 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 ) |
Maturities of investment securities | (In 000’s) Amortized Fair Cost Value Due in one year $ - $ - Due after one year through five years 2,349 2,277 Due after five years through ten years - - Government-sponsored enterprises residential mortgage-backed securities 2,349 2,304 $ 4,698 $ 4,581 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
Schedule of Composition of Net Loans | December 31, December 31, (In 000’s) 2018 2017 Commercial and industrial: Commercial $ 1,055 $ 909 SBA loans 18 19 Asset-based 472 870 Total commercial and industrial 1,545 1,798 Commercial real estate: Commercial mortgages 9,532 11,671 SBA loans 248 669 Construction - 419 Religious organizations 7,257 8,630 Total commercial real estate 17,038 21,389 Consumer real estate: Home equity loans 628 641 Home equity lines of credit 15 17 1-4 family residential mortgages 583 1,071 Total consumer real estate 1,226 1,729 Consumer and other: Student loans 622 700 Other 112 109 Total consumer and other 734 809 Allowance for loan losses (278 ) (180 ) Loans, net $ 20,265 $ 25,545 |
Schedule of Activity in Related Party Loans | 2018 2017 Balance outstanding at December 31, $ 679,612 $ 866,934 Principal additions (affiliations) - - Disaffiliations - - Principal reductions (224,288 ) (187,322 ) Balance outstanding at December 31, $ 455,324 $ 679,612 |
Schedule of Age Analysis of Past Due Loans | (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 $ - $ - $ - $ - $ 1,055 $ 1,055 SBA loans - - 18 18 - 18 Asset-based - - 76 76 396 472 Total commercial and industrial - - 94 94 1,451 1,545 Commercial real estate: Commercial mortgages - 45 902 947 8,585 9,532 SBA loans - - 69 69 179 248 Construction - - - - - - Religious organizations - - 179 179 7,078 7,257 Total commercial real estate - 45 1,150 1,195 15,843 17,038 Consumer real estate: Home equity loans - 150 281 431 197 628 Home equity lines of credit - - - - 15 15 1-4 family residential mortgages - - 85 85 498 583 Total consumer real estate - 150 366 516 710 1,226 Consumer and other: Student loans 14 57 - 71 551 622 Other 1 - - 1 111 112 Total consumer and other 15 57 - 72 662 734 Total loans $ 15 $ 252 $ 1,661 $ 1,928 $ 18,615 $ 20,543 (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 |
Schedule of Impaired Loan | (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 $ 213 $ - $ 213 $ 213 $ 81 $ 213 $ 2 SBA - - - - - - - Asset based 76 - 76 76 14 76 - Total Commercial and industrial 289 - 289 289 95 289 2 Commercial real estate: Commercial mortgages 898 739 159 898 13 948 - SBA Loans 71 71 - 71 - 74 - Religious Organizations 179 - 179 179 31 182 - Total Commercial real estate 1,148 810 338 1,148 44 1,204 - Total Loans $ 1,437 $ 810 $ 627 $ 1,437 $ 139 $ 1,493 $ 2 (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 |
Schedule of Bank's Loans by Class According to their Credit Quality Indictors | (In 000’s) Commercial Loans, December 31, 2018 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 250 $ 592 $ - $ - $ 213 $ - $ 1,055 SBA loans - - - - 18 - 18 Asset-based - 272 124 - - 76 472 250 864 124 - 231 76 1,545 Commercial real estate: Commercial mortgages - 5,814 2,759 52 703 204 9,532 SBA Loans - 179 - - 69 - 248 Construction - - - - - - - Religious organizations 24 5,041 2,013 - 180 - 7,258 24 11,034 4,772 52 952 204 17,038 Total commercial loans $ 274 $ 11,898 $ 4,896 $ 52 $ 1,183 $ 280 $ 18,583 Residential Mortgage and Consumer Loans December 31, 2018 Performing Nonperforming Total Consumer Real Estate: Home equity $ 197 $ 431 $ 628 Home equity line of credit 15 - 15 1-4 family residential mortgages 498 85 583 710 516 1,226 Consumer Other: Student loans 565 57 622 Other 112 - 112 677 57 734 Total consumer loans $ 1,387 $ 573 $ 1,960 (In 000’s) Commercial Loans, December 31, 2017 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful 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 $ 229 $ 412 $ 641 Home equity line of credit 17 - 17 1-4 family residential mortgages 1,023 48 1,071 1,269 460 1,729 Consumer Other: Student loans 645 55 700 Other 108 1 109 753 56 809 Total consumer loans $ 2,022 $ 516 $ 2,538 |
Schedule of Activity in the Allowance for Loan Losses | (in 000’s) Year to Date ended December 31, 2018 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Beginning balance $ 7 $ 155 $ 10 $ 8 $ - $ 180 Provision for possible loan losses 300 (3 ) (6 ) (7 ) 33 317 Charge-offs (208 ) (18 ) - (8 ) - (234 ) Recoveries 3 5 - 7 - 15 Net charge-offs (205 ) (13 ) - - - (219 ) Ending balance $ 102 $ 139 $ 4 $ - $ 33 $ 278 (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 Credit 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 |
Schedule of Temporary Impairment Losses, Investments | (in 000’s) Year to Date ended December 31, 2018 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 95 $ 44 $ - $ - $ - $ 139 Loans collectively evaluated for impairment 7 95 4 - 33 139 $ 102 $ 139 $ 4 $ - $ 33 $ 278 Loans, ending balance: Loans individually evaluated for impairment $ 289 $ 1,148 $ - $ - $ - $ 1,437 Loans collectively evaluated for impairment 1,256 15,890 1,226 734 - 19,106 Total $ 1,545 $ 17,038 $ 1,226 $ 734 $ - $ 20,543 (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 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BANK PREMISES AND EQUIPMENT | |
Schedule of Bank Premises and Equipment | (In 000’s) Estimated useful life 2018 2017 Leasehold improvements 10-15 years $ 834 $ 832 Furniture and equipment 3- 7 years 1,457 1,439 2,291 2,271 Less accumulated depreciation (2,128 ) (1,968 ) $ 163 $ 303 |
Schedule of Future Minimum Lease Payments under Operating lleases | (In 000’s) Year ending December 31, Operating leases 2019 $ 515 2020 438 2021 447 2022 455 2023 316 Thereafter - Total minimum lease payments $ 2,171 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER REAL ESTATE OWNED | |
Schedule Of Components Of Other Real Estate | (in 000’s) 2018 2017 Commercial real estate $ 168 $ 294 Residential real estate 224 332 Total $ 392 $ 626 |
Summary Of the Change in Other Real Estate Owned | (in 000’s) Year Ended December 31, 2018 Year Ended December 31, 2017 Beginning Balance $ 626 $ 447 Additions, transfers from loans - 184 Sales (229 ) - Subtotal 397 631 Write-downs (5 ) (5 ) Ending Balance $ 392 $ 626 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DEPOSITS | |
Scheduled Of Maturities of Time Deposits | (In 000’s) 2019 $ 7,010 2020 499 2021 116 2022 136 2023 84 Thereafter 22 $ 7,867 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | |
Components of the Bank's Net Deferred Tax Assets | December 31, (in 000’s) 2018 2017 Deferred tax assets (liabilities): Provision for loan losses $ 29 $ 7 Unrealized (loss) gain on investment securities (25 ) (15 ) Depreciation 37 (22 ) Net operating carryforwards 2,459 2,243 Other, net 230 278 Valuation allowance for deferred tax assets (2,755 ) (2,506 ) Net deferred tax assets $ (25 ) $ (15 ) |
Schedule of Effective Income Tax Rate Reconciliation | 2018 2017 Effective rate reconciliation: Tax at statutory rate (21% in 2018, 34% in 2017) $ (312 ) $ (109 ) Change in tax rate - 1,551 Nondeductible expenses 6 8 Increase in valuation allowance 290 (1,371 ) True-up of NOL 6 (74 ) Other 10 (5 ) Total tax expense $ - $ - |
FINANCIAL INSTRUMENT COMMITME_2
FINANCIAL INSTRUMENT COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENT COMMITMENTS | |
Summary of the Bank's Financial Instrument Commitments | 2018 2017 Commitments to extend credit $ 1,903,000 $ 4,670,000 Outstanding letters of credit 45,000 317,000 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at December 31, 2018 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 $ 2,277 $ - $ 2,277 $ - Government Sponsored Enterprises residential mortgage-backed securities 2,304 $ - 2,304 - Total $ 4,581 $ - $ 4,581 - Loans held for sale $ 10,073 $ - $ 10,073 - Loans held at fair value $ 5,420 $ - $ - $ 5,420 Servicing asset $ 313 $ - $ - $ 313 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at December 31, 2017 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 $ 2,273 $ - $ 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 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Assets measured at fair value December 31, 2018 Fair value December 31, 2017 Fair value Principal valuation techniques Significant observable inputs December 31, 2018 Range of inputs (weighted average) December 31, 2017 Range of inputs Loans held at fair value: $5,420 $4,451 Discounted cash flow Constant prepayment rate 0% to 16.5% (10.35%) 8.54% to 10.41 % Weighted average life 2.04 yrs. to 6.89 yrs. (4.36 yrs.) 2.67 yrs. to 9.29 yrs. Discount rate 5.49% to 9.76% (7.86%) 9.00% to 11.62% Projected default rate 1.07% to 10.12% (3.57%) 0.75% to 7.61 % Projected recovery rate 9.66% to 51.86% (30.69%) Assets measured at fair value December 31, 2018 Fair value December 31, 2017 Fair Value Principal valuation techniques Significant observable inputs December 31, 2018 Range of inputs (weighted average) December 31, 2017 Range of inputs Servicing asset $313 $319 Discounted cash flow Constant prepayment rate 4.94% to 15.92% (10.66%) 5.58% to 10.67 % Weighted average life 2.04 yrs. to 6.77 yrs. (4.35 yrs.) 2.67 yrs. to 9.09 yrs. Weighted average discount rate 11.38% to 19.61% (15.08%) 11.75% to 19.74% |
Schedule of Assets and Liabilities Measured on a Nonrecurring Basis | (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) Impaired Loans $ 324 $ - $ - $ 324 Other real estate owned $ 153 $ - $ - $ 153 (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) Impaired Loans $ 134 $ - $ - $ 134 Other real estate owned $ 626 $ - $ - $ 626 |
Schedule of Fair Value of Financial Instruments not Previously Disclosed | Level in 2018 2017 Value Carrying Fair Carrying Fair Assets: Hierarchy Amount Value Amount Value Cash and cash equivalents Level 1 $ 8,438 $ 8,438 $ 11,671 $ 7,803 Loans, net of allowance for loan losses (1 ) 20,265 21,979 25,545 26,617 Accrued interest receivable Level 2 153 153 153 141 Liabilities: Demand deposits Level 2 29,816 29,816 34,610 28,497 Savings deposits Level 2 10,589 10,589 11,505 11,735 Time deposits (2 ) 7,867 7,757 9,339 10,395 Accrued interest Payable Level 2 17 17 14 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 |
Loans Held At Fair Value [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | (in 000’s) 2018 2017 Balance at December 31, $ 4,451 $ 4,207 Origination of loans 1,420 816 Principal repayments (221 ) (191 ) Change in fair value (230 ) (381 ) Balance at December 31, $ 5,420 $ 4,451 |
Servicing Asset [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | (in 000’s) 2018 2017 Balance at December 31, $ 319 $ 313 Additions related to new loan origination 49 57 Change in fair value (55 ) (51 ) Balance at December 31, $ 313 $ 319 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE RECOGNITION | |
Disaggregation of Revenue | December 31, 2018 2017 (Dollars in thousands) Noninterest income: In-scope of Topic 606 Customer Service Fees $ 409 $ 397 ATM Fee Income 101 120 Loan Syndication Fees 150 154 Other income 37 48 Noninterest income (in-scope of Topic 606) 697 719 Noninterest income (out-of-scope of Topic 606) (189 ) 772 Total noninterest income $ 508 $ 1,491 |
CONSOLIDATED FINANCIAL INFORM_2
CONSOLIDATED FINANCIAL INFORMATION-PARENT COMPANY ONLY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Balance Sheets | (Dollars in thousands) 2018 2017 Assets: Cash and cash equivalents $ 31 $ 38 Investment in United Bank of Philadelphia 1,728 3,242 Total assets $ 1,759 $ 3,280 Shareholders’ equity: Preferred stock $ 1 $ 1 Common stock 8 8 Additional paid-in capital 15,677 15,677 Accumulated deficit (13,834 ) (12,349 ) Accumulated other comprehensive loss (93 ) (57 ) Total shareholders’ equity $ 1,759 $ 3,280 |
Condensed Statement of Operations | Years ended December 31, (Dollars in thousands) 2018 2017 Net loss $ (7 ) $ (12 ) Equity in net loss of subsidiary (1,479 ) (307 ) Net loss $ (1,486 ) $ (319 ) |
Condensed Statement of Cash Flows | Years ended December 31, (Dollars in thousands) 2018 2017 Cash flows from operating activities: Net loss $ (1,486 ) $ (319 ) Adjustments: Equity in net loss of subsidiary 1,479 307 Net cash used in operating activities (7 ) (12 ) Cash flows from investing activities: Investment in subsidiary - (875 ) Total cash flows from investing activities - (75 ) Cash flows from financing activities: Issuance of Series B Preferred Stock - 925 Total cash flows from financing activities (7 ) 925 Cash and cash equivalents at beginning of year 38 - Cash and cash equivalents at end of year $ 31 $ 38 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
Schedule of Company and the Bank's Actual Capital Amounts and Ratios | (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 $ 1,817 6.48 % N/A $ 3,338 10.22 % Bank 1,777 6.34 2,803 10.00 % 3,300 10.11 Tier I capital to risk weighted assets Company 1,539 5.49 N/A 3,158 9.67 Bank 1,499 5.35 2,242 8.00 % 3,120 9.56 Common equity Tier I capital to risk weighted assets Company 1,539 5.49 N/A 3,158 9.67 Bank 1,499 5.35 1,822 6.50 % 3,120 9.56 Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company 1,539 3.08 N/A 3,158 5.58 Bank 1,499 3.00 2,502 5.00 % 3,120 5.51 (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 % |
EARNINGS PER SHARE COMPUTATION
EARNINGS PER SHARE COMPUTATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EARNINGS PER SHARE COMPUTATION | |
Schedule of Net Income (Loss) Per Common Share | Year ended December 31, 2018 Loss Shares Per share (numerator) (denominator) amount Net loss $ (1,485,637 ) Basic EPS Income attributable to common stockholders $ (1,485,637 ) 826,921 $ (1.80 ) Diluted EPS Income attributable to common stockholders $ (1,485,637 ) 826,921 $ (1.80 ) 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 ) |
SUMMARY OF QUARTERLY RESULTS _2
SUMMARY OF QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF QUARTERLY RESULTS (UNAUDITED) | |
Schedule of Quarterly Financial Information | 2018 Fourth Third Second First Quarter Quarter Quarter Quarter Interest income $ 708 $ 678 $ 675 $ 618 Interest expense 19 19 20 20 Net interest income 689 659 654 598 Provision (credit) for loan losses 272 20 5 20 Net interest after provision (credit) for loan losses 417 639 649 578 Noninterest income (419 ) 392 221 314 Noninterest expense 1,077 1,089 1,023 1,090 Net income (loss) $ (1,079 ) $ (57 ) $ (152 ) $ (198 ) Basic income (loss) per common share $ (1.31 ) $ (0.07 ) $ (0.18 ) $ (0.24 ) Diluted income (loss) per common share $ (1.31 ) $ (0.07 ) $ (0.18 ) $ (0.24 ) 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 ) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive loss, net | $ (35,139) | $ 15,033 |
Before tax [Member] | ||
Beginning balance | (73) | (96) |
Unrealized loss on securities | 44 | 23 |
Other comprehensive loss, net | (44) | 0 |
Reclassification due to adoption of ASU 2018-02 | 23 | |
Ending balance | (117) | (73) |
Tax Benefit [Member] | ||
Beginning balance | 16 | 33 |
Unrealized loss on securities | 9 | 8 |
Other comprehensive loss, net | 9 | (9) |
Reclassification due to adoption of ASU 2018-02 | (17) | |
Ending balance | 25 | 16 |
Net of tax [Member] | ||
Beginning balance | (57) | (63) |
Unrealized loss on securities | 35 | 15 |
Other comprehensive loss, net | (35) | (9) |
Reclassification due to adoption of ASU 2018-02 | 6 | |
Ending balance | $ (92) | $ (57) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | ||
Entity Incorporation, Date of Incorporation | April 8, 1993 | |
Increased income tax expense | $ 1,551,000 | |
Effective tax rate | 21% | 35% |
CASH AND DUE FROM BANK BALANC_2
CASH AND DUE FROM BANK BALANCES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH AND DUE FROM BANK BALANCES (Details Narrative) | ||
Required reserve balances | $ 100,000 | $ 100,000 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, Fair Value | $ 4,581,000 | $ 5,145,000 |
U.S. Government agency securities [Member] | ||
Available-for-sale securities, Gross unrealized gains | (72,000) | 0 |
Available-for-sale securities, Gross unrealized losses | 0 | 76,000 |
Available-for-sale securities, Amortized cost | 2,349,000 | 2,349,000 |
Available-for-sale securities, Fair Value | 2,277,000 | 2,273,000 |
Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
Available-for-sale securities, Gross unrealized gains | (9,000) | (21,000) |
Available-for-sale securities, Gross unrealized losses | 54,000 | 18,000 |
Available-for-sale securities, Amortized cost | 2,349,000 | 2,737,000 |
Available-for-sale securities, Fair Value | 2,304,000 | 2,740,000 |
Other Debt Obligations [Member] | ||
Available-for-sale securities, Gross unrealized gains | (9,000) | (21) |
Available-for-sale securities, Gross unrealized losses | 126 | 94,000 |
Available-for-sale securities, Amortized cost | 4,698,000 | 5,218,000 |
Available-for-sale securities, Fair Value | $ 4,581,000 | 5,145,000 |
Investments in money market funds [Member] | ||
Available-for-sale securities, Gross unrealized gains | 0 | |
Available-for-sale securities, Gross unrealized losses | 0 | |
Available-for-sale securities, Amortized cost | 132,000 | |
Available-for-sale securities, Fair Value | $ 132,000 |
INVESTMENTS (Details 1)
INVESTMENTS (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, fair value | $ 4,580,610 | $ 5,144,707 |
Mortgage-backed Securities [Member] | ||
Available-for-sale securities, greater than 12 months, fair value | 1,299 | 377,000 |
Available-for-sale securities, greater than 12 months, gross unrealized losses | 44 | 11,000 |
Available-for-sale securities, less than 12 months, fair value | 718,000 | 1,124,000 |
Available-for-sale securities, less than 12 months, gross unrealized losses | 10,000 | 7,000 |
Available-for-sale securities, fair value | 2,017,000 | 1,501,000 |
Available-for-sale securities, gross unrealized losses | $ 54,000 | $ 18,000 |
Number of Securities | 14,000 | 8,000 |
U.S. Government agency securities [Member] | ||
Available-for-sale securities, greater than 12 months, fair value | $ 2,277 | $ 2,028 |
Available-for-sale securities, greater than 12 months, gross unrealized losses | 72 | 71 |
Available-for-sale securities, less than 12 months, fair value | 0 | 245,000 |
Available-for-sale securities, less than 12 months, gross unrealized losses | 0 | 5,000 |
Available-for-sale securities, fair value | 2,277,000 | 2,273,000 |
Available-for-sale securities, gross unrealized losses | $ 72,000 | $ 76,000 |
Number of Securities | 7,000 | 7,000 |
Other Debt Obligations [Member] | ||
Available-for-sale securities, greater than 12 months, fair value | $ 3,576 | $ 2,405,000 |
Available-for-sale securities, greater than 12 months, gross unrealized losses | 116 | 82,000 |
Available-for-sale securities, less than 12 months, fair value | 718 | 1,369 |
Available-for-sale securities, less than 12 months, gross unrealized losses | 10 | 12 |
Available-for-sale securities, fair value | 4,294 | 3,774,000 |
Available-for-sale securities, gross unrealized losses | $ 126 | $ 94,000 |
Number of Securities | 21 | 15 |
INVESTMENTS (Details 2)
INVESTMENTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total | $ 4,581 | $ 5,145 |
Amortized Cost [Member] | ||
Total | 4,698 | |
Due after five years through ten years | 0 | |
Due after one year through five years | 2,349 | |
Due in one year or less | 0 | |
Government-sponsored enterprises residential mortgage-backed securities | 2,349 | |
Fair Value [Member] | ||
Due after five years through ten years | 0 | |
Due after one year through five years | 2,277 | |
Due in one year or less | 0 | |
Government-sponsored enterprises residential mortgage-backed securities | 2,304 | |
Total | $ 4,581 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities with a carrying value | $ 3,668,000 | $ 4,297,000 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses | $ (278,000) | $ (180,000) |
Loans, net | 20,264,768 | 25,545,751 |
Commercial Real Estate [Member] | ||
Loans, net | 17,038,000 | 21,389,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, net | 9,532,000 | 11,671,000 |
Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, net | 248,000 | 669,000 |
Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, net | 7,257,000 | 8,630,000 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | ||
Loans, net | 0 | 419,000 |
Consumer Real Estate [Member] | ||
Loans, net | 1,226,000 | 1,729,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | ||
Loans, net | 628,000 | 641,000 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||
Loans, net | 15,000 | 17,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Loans, net | 583,000 | 1,071,000 |
Consumer And Other [Member] | ||
Loans, net | 734,000 | 809,000 |
Consumer And Other [Member] | Student Loans [Member] | ||
Loans, net | 622,000 | 700,000 |
Consumer And Other [Member] | Other [Member] | ||
Loans, net | 112,000 | 109,000 |
Fair Value [Member] | ||
Loans, net | 20,265,000 | 25,545,000 |
Commercial And Industrials [Member] | ||
Loans, net | 1,545,000 | 1,798,000 |
Commercial And Industrials [Member] | SBA Loans [Member] | ||
Loans, net | 18,000 | 19,000 |
Commercial And Industrials [Member] | Commercial [Member] | ||
Loans, net | 1,055,000 | 909,000 |
Commercial And Industrials [Member] | Asset-Based [Member] | ||
Loans, net | $ 472,000 | $ 870,000 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - Related Party [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance outstanding beginning | $ 679,612 | $ 866,934 |
Principal additions (affiliations) | 0 | 0 |
Disaffiliations | 0 | 0 |
Principal reductions | 224,288 | 187,322 |
Balance outstanding ending | $ 455,324 | $ 679,612 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Loans, net | $ 20,264,768 | $ 25,545,751 |
Commercial And Industrials [Member] | ||
Loans, net | 1,545,000 | 1,798,000 |
Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 15,000 | 190,000 |
Financing Receivables 30 To 89 Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Current Loans [Member] | ||
Loans, net | 18,615,000 | 23,533,000 |
Current Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 1,451,000 | 1,722,000 |
Total Past Due Loans [Member] | ||
Loans, net | 1,928,000 | 2,192,000 |
Total Past Due Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 94,000 | 76,000 |
Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 252,000 | 387,000 |
Accruing Loans 90 or More Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Nonaccrual [Member] | ||
Loans, net | 1,661,000 | 1,616,000 |
Nonaccrual [Member] | Commercial And Industrials [Member] | ||
Loans, net | 94,000 | 76,000 |
SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 18,000 | 19,000 |
SBA Loans [Member] | Current Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 19,000 |
SBA Loans [Member] | Total Past Due Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 18,000 | 0 |
SBA Loans [Member] | Accruing Loans 90 or More Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
SBA Loans [Member] | Nonaccrual [Member] | Commercial And Industrials [Member] | ||
Loans, net | 18,000 | 0 |
SBA Loans [Member] | Loans 30-89 Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, net | 1,055,000 | 909,000 |
Commercial [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Current Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 1,055,000 | 909,000 |
Commercial [Member] | Total Past Due Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Accruing Loans 90 or More Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Nonaccrual [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, net | 472,000 | 870,000 |
Asset-Based [Member] | Commercial And Industrials [Member] | Totals [Member] | ||
Loans, net | 472,000 | 794,000 |
Asset-Based [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Asset-Based [Member] | Current Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 396,000 | 794,000 |
Asset-Based [Member] | Total Past Due Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 76,000 | 76,000 |
Asset-Based [Member] | Accruing Loans 90 or More Days Past Due [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 0 |
Asset-Based [Member] | Nonaccrual [Member] | Commercial And Industrials [Member] | ||
Loans, net | 76,000 | 76,000 |
Total Loan [Member] | ||
Loans, net | 20,543,000 | 25,725,000 |
Commercial Real Estate [Member] | ||
Loans, net | 17,038,000 | 21,389,000 |
Commercial Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 50,000 |
Commercial Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 15,843,000 | 19,928,000 |
Commercial Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 1,195,000 | 1,461,000 |
Commercial Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 45,000 | 208,000 |
Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 1,150,000 | 1,203,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, net | 9,532,000 | 11,671,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 50,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Current Loans [Member] | ||
Loans, net | 8,585,000 | 10,478,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Total Past Due Loans [Member] | ||
Loans, net | 947,000 | 1,193,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 45,000 | 208,000 |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Nonaccrual [Member] | ||
Loans, net | 902,000 | 935,000 |
Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, net | 248,000 | 669,000 |
Commercial Real Estate [Member] | SBA Loans [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | SBA Loans [Member] | Current Loans [Member] | ||
Loans, net | 179,000 | 588,000 |
Commercial Real Estate [Member] | SBA Loans [Member] | Total Past Due Loans [Member] | ||
Loans, net | 69,000 | 81,000 |
Commercial Real Estate [Member] | SBA Loans [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | SBA Loans [Member] | Nonaccrual [Member] | ||
Loans, net | 69,000 | 81,000 |
Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, net | 7,257,000 | 8,630,000 |
Commercial Real Estate [Member] | Religious Organizations [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | Religious Organizations [Member] | Current Loans [Member] | ||
Loans, net | 7,078,000 | 8,443,000 |
Commercial Real Estate [Member] | Religious Organizations [Member] | Total Past Due Loans [Member] | ||
Loans, net | 179,000 | 187,000 |
Commercial Real Estate [Member] | Religious Organizations [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | Religious Organizations [Member] | Nonaccrual [Member] | ||
Loans, net | 179,000 | 187,000 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | ||
Loans, net | 0 | 419,000 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | Current Loans [Member] | ||
Loans, net | 0 | 419,000 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | Total Past Due Loans [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | Construction Portfolio [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | ||
Loans, net | 1,226,000 | 1,729,000 |
Consumer Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 102,000 |
Consumer Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 710,000 | 1,168,000 |
Consumer Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 516,000 | 561,000 |
Consumer Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 150,000 | 123,000 |
Consumer Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 366,000 | 337,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | ||
Loans, net | 628,000 | 641,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 38,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Current Loans [Member] | ||
Loans, net | 197,000 | 191,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Total Past Due Loans [Member] | ||
Loans, net | 431,000 | 450,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 150,000 | 123,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Nonaccrual [Member] | ||
Loans, net | 281,000 | 289,000 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||
Loans, net | 15,000 | 17,000 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | Current Loans [Member] | ||
Loans, net | 15,000 | 17,000 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | Total Past Due Loans [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Loans, net | 583,000 | 1,071,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 64,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Current Loans [Member] | ||
Loans, net | 498,000 | 959,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Total Past Due Loans [Member] | ||
Loans, net | 85,000 | 112,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Nonaccrual [Member] | ||
Loans, net | 85,000 | 48,000 |
Consumer And Other [Member] | ||
Loans, net | 734,000 | 809,000 |
Consumer And Other [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 15,000 | 38,000 |
Consumer And Other [Member] | Current Loans [Member] | ||
Loans, net | 662,000 | 715,000 |
Consumer And Other [Member] | Total Past Due Loans [Member] | ||
Loans, net | 72,000 | 94,000 |
Consumer And Other [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 57,000 | 56,000 |
Consumer And Other [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | Student Loans [Member] | ||
Loans, net | 622,000 | 700,000 |
Consumer And Other [Member] | Student Loans [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 14,000 | 32,000 |
Consumer And Other [Member] | Student Loans [Member] | Current Loans [Member] | ||
Loans, net | 551,000 | 613,000 |
Consumer And Other [Member] | Student Loans [Member] | Total Past Due Loans [Member] | ||
Loans, net | 71,000 | 87,000 |
Consumer And Other [Member] | Student Loans [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 57,000 | 55,000 |
Consumer And Other [Member] | Student Loans [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | Other [Member] | ||
Loans, net | 112,000 | 109,000 |
Consumer And Other [Member] | Other [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 1,000 | 6,000 |
Consumer And Other [Member] | Other [Member] | Current Loans [Member] | ||
Loans, net | 111,000 | 102,000 |
Consumer And Other [Member] | Other [Member] | Total Past Due Loans [Member] | ||
Loans, net | 1,000 | 7,000 |
Consumer And Other [Member] | Other [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 1,000 |
Consumer And Other [Member] | Other [Member] | Nonaccrual [Member] | ||
Loans, net | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest recognized on impaired loans [Member] | ||
Loans, Impaired | $ 2,000 | $ 40,000 |
Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 2,000 | 30,000 |
Interest recognized on impaired loans [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Interest recognized on impaired loans [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 2,000 | 30,000 |
Interest recognized on impaired loans [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 14,000 | 0 |
Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 0 | 10,000 |
Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 0 | 0 |
Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 0 | 10,000 |
Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | 0 | 0 |
Unpaid Contractual Principal Balance [Member] | ||
Loans, Impaired | 1,437,000 | 1,277,000 |
Unpaid Contractual Principal Balance [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 289,000 | 0 |
Unpaid Contractual Principal Balance [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Unpaid Contractual Principal Balance [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 213,000 | 0 |
Unpaid Contractual Principal Balance [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 76,000 | 76,000 |
Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 1,148,000 | 1,201,000 |
Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 898,000 | 933,000 |
Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 71,000 | 81,000 |
Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | 179,000 | 187,000 |
Recorded Investment With No Allowance [Member] | ||
Loans, Impaired | 810,000 | 1,277,000 |
Recorded Investment With No Allowance [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Recorded Investment With No Allowance [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Recorded Investment With No Allowance [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Recorded Investment With No Allowance [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 76,000 |
Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 810,000 | 1,201,000 |
Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 739,000 | 933,000 |
Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 71,000 | 81,000 |
Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | 0 | 187,000 |
Recorded Investment With Allowance [Member] | ||
Loans, Impaired | 627,000 | 0 |
Recorded Investment With Allowance [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 289,000 | 0 |
Recorded Investment With Allowance [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Recorded Investment With Allowance [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 213,000 | 0 |
Recorded Investment With Allowance [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 76,000 | 76,000 |
Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 338,000 | 0 |
Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 159,000 | 0 |
Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 0 | 0 |
Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | 179,000 | 0 |
Total Recorded Investment [Member] | ||
Loans, Impaired | 1,437,000 | 1,277,000 |
Total Recorded Investment [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 289,000 | 0 |
Total Recorded Investment [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Total Recorded Investment [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 213,000 | 0 |
Total Recorded Investment [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Total Recorded Investment [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 1,148,000 | 1,201,000 |
Total Recorded Investment [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 898,000 | 933,000 |
Total Recorded Investment [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 71,000 | 81,000 |
Total Recorded Investment [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | 179,000 | 187,000 |
Related Allowance [Member] | ||
Loans, Impaired | 139,000 | 0 |
Related Allowance [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 95,000 | 0 |
Related Allowance [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Related Allowance [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 81,000 | 0 |
Related Allowance [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Related Allowance [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 44,000 | 0 |
Related Allowance [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 13,000 | 0 |
Related Allowance [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 0 | 0 |
Related Allowance [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | 31,000 | 0 |
Average Recorded Investment [Member] | ||
Loans, Impaired | 1,493,000 | 1,883,000 |
Average Recorded Investment [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 289,000 | 270,000 |
Average Recorded Investment [Member] | SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 0 |
Average Recorded Investment [Member] | Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 213,000 | 14,000 |
Average Recorded Investment [Member] | Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, Impaired | 0 | 256,000 |
Average Recorded Investment [Member] | Commercial Real Estate [Member] | ||
Loans, Impaired | 1,204,000 | 1,613,000 |
Average Recorded Investment [Member] | Commercial Real Estate [Member] | Commercial Mortgages [Member] | ||
Loans, Impaired | 948,000 | 1,215,000 |
Average Recorded Investment [Member] | Commercial Real Estate [Member] | SBA Loans [Member] | ||
Loans, Impaired | 74,000 | 208,000 |
Average Recorded Investment [Member] | Commercial Real Estate [Member] | Religious Organizations [Member] | ||
Loans, Impaired | $ 182,000 | $ 191,000 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total | $ 17,038 | $ 21,389 |
Total commercial loans | 18,583 | 23,187 |
Total of Commercial and industrial | 1,545 | 1,798 |
Construction [Member] | ||
Total | 0 | 419 |
Pass [Member] | ||
Total commercial loans | 4,896 | 3,770 |
Pass [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | ||
Loans receivable | 52,000 | 36,000 |
Special Mention [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Substandard [Member] | ||
Total commercial loans | 1,183 | 1,375 |
Substandard [Member] | Commercial Real Estate Construction [Member] | ||
Total | 952 | 1,065 |
Loans receivable | 0 | 0 |
Doubtful [Member] | ||
Total commercial loans | 280 | 293 |
Doubtful [Member] | Commercial Real Estate Construction [Member] | ||
Total | 204 | 217 |
Loans receivable | 0 | 0 |
Satisfactory [Member] | ||
Total commercial loans | 11,898 | 17,021 |
Satisfactory [Member] | Construction [Member] | ||
Total | 0 | 419 |
Good / Excellentl [Member] | ||
Total commercial loans | 274 | 298 |
Good / Excellentl [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Commercial [Member] | ||
Total | 1,055 | 909 |
Commercial And Industrial Of Commercial [Member] | Pass [Member] | ||
Loans receivable | 0 | 0 |
Commercial And Industrial Of Commercial [Member] | Substandard [Member] | ||
Loans receivable | 213,000 | 217,000 |
Commercial And Industrial Of Commercial [Member] | Doubtful [Member] | ||
Total | 76 | 76 |
Loans receivable | 0 | 0 |
Commercial And Industrial Of Commercial [Member] | Satisfactory [Member] | ||
Total | 864 | 972 |
Loans receivable | 592 | 423,000 |
Commercial And Industrial Of Commercial [Member] | Good / Excellentl [Member] | ||
Total | 250 | 250 |
Loans receivable | 250 | 250,000 |
Commercial And Industrial Of Commerciall [Member] | Special Mention [Member] | ||
Loans receivable | 0 | 19 |
Commercial And Industrial Of SBA Loans [Member] | Pass [Member] | ||
Total | 124 | 171 |
Loans receivable | 0 | 19,000 |
Commercial And Industrial Of SBA Loans [Member] | Doubtful [Member] | ||
Loans receivable | 0 | 0 |
Commercial And Industrial Of SBA Loans [Member] | Satisfactory [Member] | ||
Loans receivable | 0 | 0 |
Commercial And Industrial Of SBA Loans [Member] | Good / Excellentl [Member] | ||
Loans receivable | 0 | 0 |
Commercial And Industrial Of SBA Loans Member [Member] | Special Mention [Member] | ||
Total | 0 | 19 |
Loans receivable | 0 | 0 |
Commercial And Industrial Of SBA Loans Member [Member] | Substandard [Member] | ||
Total | 231 | 310 |
Loans receivable | 18,000 | 0 |
Commercial And Industrial Of Asset Based [Member] | Pass [Member] | ||
Loans receivable | 124,000 | 152,000 |
Commercial And Industrial Of Asset Based [Member] | Special Mention [Member] | ||
Loans receivable | 0 | 0 |
Commercial And Industrial Of Asset Based [Member] | Substandard [Member] | ||
Loans receivable | 0 | 93,000 |
Commercial And Industrial Of Asset Based [Member] | Doubtful [Member] | ||
Loans receivable | 76 | 76 |
Commercial And Industrial Of Asset Based [Member] | Satisfactory [Member] | ||
Loans receivable | 272,000 | 549,000 |
Commercial And Industrial Of Asset Based [Member] | Good / Excellentl [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate Commercial Mortgage [Member] | ||
Total | 9,532 | 11,671 |
Commercial Real Estate Commercial Mortgage [Member] | Pass [Member] | ||
Loans receivable | 2,759 | 2,764 |
Commercial Real Estate Commercial Mortgage [Member] | Special Mention [Member] | ||
Loans receivable | 52 | 17 |
Commercial Real Estate Commercial Mortgage [Member] | Substandard [Member] | ||
Loans receivable | 703 | 797 |
Commercial Real Estate Commercial Mortgage [Member] | Doubtful [Member] | ||
Loans receivable | 204 | 217 |
Commercial Real Estate Commercial Mortgage [Member] | Satisfactory [Member] | ||
Loans receivable | 5,814,000 | 7,876,000 |
Commercial Real Estate Commercial Mortgage [Member] | Good / Excellentl [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate SBA Loans [Member] | Pass [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate SBA Loans [Member] | Special Mention [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate SBA Loans [Member] | Doubtful [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate SBA Loans [Member] | Satisfactory [Member] | ||
Loans receivable | 179,000 | 588,000 |
Commercial Real Estate SBA Loans [Member] | Good / Excellentl [Member] | ||
Total | 24 | 48 |
Loans receivable | 0 | 0 |
Commercial Real EState SBA Loans [Member] | Substandard [Member] | ||
Loans receivable | 69,000 | 81,000 |
Commercial Real Estate Religious Organizations [Member] | Pass [Member] | ||
Total | 4,772 | 3,599 |
Loans receivable | 2,013,000 | 835,000 |
Commercial Real Estate Religious Organizations [Member] | Special Mention [Member] | ||
Total | 52 | 17 |
Loans receivable | 0 | 0 |
Commercial Real Estate Religious Organizations [Member] | Substandard [Member] | ||
Loans receivable | 180,000 | 187,000 |
Commercial Real Estate Religious Organizations [Member] | Doubtful [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate Religious Organizations [Member] | Satisfactory [Member] | ||
Total | 11,034 | 16,049 |
Loans receivable | 5,041,000 | 7,560,000 |
Commercial Real Estate Religious Organizations [Member] | Good / Excellentl [Member] | ||
Loans receivable | 24,000 | 48,000 |
SBA Loans [Member] | ||
Total | 18 | 19 |
Asset-Based [Member] | ||
Total | 472 | 870 |
SBA Loans 1 [Member] | ||
Total | 248 | 669 |
Religious Organizations [Member] | ||
Total | $ 7,258 | $ 8,630 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired with deteriorated credit quality | $ 1,960 | $ 2,538 |
Home Equity Loans [Member] | Consumer Real Estate [Member] | ||
Acquired with deteriorated credit quality | 628,000 | 641,000 |
Home Equity Lines of Credit [Member] | Consumer Real Estate [Member] | ||
Acquired with deteriorated credit quality | 15 | 17 |
1-4 Family Residential Mortgages [Member] | Consumer Real Estate [Member] | ||
Acquired with deteriorated credit quality | 583,000 | 1,071,000 |
Student Loans [Member] | Consumer And Other [Member] | ||
Acquired with deteriorated credit quality | 622,000 | 700,000 |
Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 734 | 809 |
Consumer Other [Member] | Other [Member] | ||
Acquired with deteriorated credit quality | 112,000 | 109,000 |
Consumer Real Estate[Member] | ||
Acquired with deteriorated credit quality | 1,226 | 1,729 |
Performing Financial Instruments [Member] | Residential 1 - 4 Family Residential Mortgage [Member] | ||
Acquired with deteriorated credit quality | 498,000 | 1,023,000 |
Performing Financial Instruments [Member] | Home equity line of credit [Member] | Consumer Real Estates [Member] | ||
Acquired with deteriorated credit quality | 15,000 | 17,000 |
Performing [Member] | ||
Acquired with deteriorated credit quality | 1,387 | 2,022 |
Performing [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 677 | 753 |
Performing [Member] | Consumer Other [Member] | Student Loan [Member] | ||
Acquired with deteriorated credit quality | 565,000 | 645,000 |
Performing [Member] | Consumer Other [Member] | Other [Member] | ||
Acquired with deteriorated credit quality | 112,000 | 108,000 |
Performing [Member] | Consumer Real Estate[Member] | ||
Acquired with deteriorated credit quality | 710 | 1,269 |
Performing [Member] | Consumer Real Estate[Member] | Home Equity [Member] | ||
Acquired with deteriorated credit quality | 197 | 229,000 |
Nonperforming Financial Instruments [Member] | ||
Acquired with deteriorated credit quality | 573 | 516 |
Nonperforming Financial Instruments [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 57 | 56 |
Nonperforming Financial Instruments [Member] | Consumer Other [Member] | Other [Member] | ||
Acquired with deteriorated credit quality | 0 | 1,000 |
Nonperforming Financial Instruments [Member] | Consumer Real Estate[Member] | ||
Acquired with deteriorated credit quality | 516 | 460 |
Nonperforming Financial Instruments [Member] | Consumer Real Estate[Member] | Home Equity [Member] | ||
Acquired with deteriorated credit quality | 431 | 412,000 |
Nonperforming Financial Instruments [Member] | Residential 1 - 4 Family residential mortgages [Member] | Concumer Real Estate [Member] | ||
Acquired with deteriorated credit quality | 85,000 | 48,000 |
Nonperforming Financial Instruments [Member] | Home equity line of credit [Member] | ||
Acquired with deteriorated credit quality | 0 | 0 |
NonPerforming Financial Instruments [Member] | Conusmer Other [Member] | Student Loans [Member] | ||
Acquired with deteriorated credit quality | $ 57 | $ 55 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan and lease losses beginning balance | $ 180,000 | $ 300,000 |
Provision charged to expenses | 3,170,000 | (82,000) |
Losses charged off | (234,000) | (75,000) |
Recoveries | 15,000 | 37,000 |
Net charge-offs | (219) | (38) |
Allowance for loan and lease losses ending balance | 278,000 | 180,000 |
Consumer Real Estate [Member] | ||
Allowance for loan and lease losses beginning balance | 10,000 | (10,000) |
Provision charged to expenses | (6,000) | (18,000) |
Losses charged off | 0 | (28,000) |
Recoveries | 0 | 10,000 |
Net charge-offs | 0 | 10 |
Allowance for loan and lease losses ending balance | 4,000 | 10,000 |
Commercial and industrial [Member] | ||
Allowance for loan and lease losses beginning balance | 7,000 | 68,000 |
Provision charged to expenses | 3,000,000 | (65,000) |
Losses charged off | (208,000) | 0 |
Recoveries | 3,000 | 4,000 |
Net charge-offs | (205) | 4 |
Allowance for loan and lease losses ending balance | 102,000 | 7,000 |
Commercial real estate [Member] | ||
Allowance for loan and lease losses beginning balance | 155,000 | 179,000 |
Provision charged to expenses | (3,000) | 28,000 |
Losses charged off | (18,000) | (52,000) |
Recoveries | 5,000 | 0 |
Net charge-offs | (13) | (52) |
Allowance for loan and lease losses ending balance | 139,000 | 155,000 |
Consumer loans other [Member] | ||
Allowance for loan and lease losses beginning balance | 8,000 | (3,000) |
Provision charged to expenses | (7,000) | 0 |
Losses charged off | (8,000) | (5,000) |
Recoveries | 7,000 | 5,000 |
Net charge-offs | 0 | 11 |
Allowance for loan and lease losses ending balance | 0 | 8,000 |
Unallocated [Member] | ||
Allowance for loan and lease losses beginning balance | 0 | 32,000 |
Provision charged to expenses | 330,000 | (32,000) |
Losses charged off | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Allowance for loan and lease losses ending balance | $ 33,000 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans individually evaluated for impairment | $ 139,000 | $ 0 | |
Loans collectively evaluated for impairment | 139,000 | 180,000 | |
Total Loans | 278,000 | 180,000 | |
Loans individually evaluated for impairment ending | 1,437,000 | 1,277,000 | |
Loans collectively evaluated for impairment ending | 19,106 | 24,448 | |
Total Loans ending balance | 20,543,000 | 25,725,000 | |
Loans individually evaluated for impairment | 278,000 | 180,000 | $ 300,000 |
Commercial real estate loan [Member] | |||
Loans collectively evaluated for impairment | 95,000 | 155,000 | |
Total Loans | 139,000 | 155,000 | |
Loans individually evaluated for impairment ending | 1,148,000 | 1,201,000 | |
Loans collectively evaluated for impairment ending | 15,890 | 20,188 | |
Total Loans ending balance | 17,038,000 | 21,389,000 | |
Loans individually evaluated for impairment | 44,000 | 0 | |
Unallocated Loans [Member] | |||
Loans collectively evaluated for impairment | 33,000 | 0 | |
Total Loans | 33,000 | 0 | |
Loans individually evaluated for impairment ending | 0 | 0 | |
Loans collectively evaluated for impairment ending | 0 | 0 | |
Total Loans ending balance | 0 | 0 | |
Loans individually evaluated for impairment | 0 | 0 | |
Commercial and industrial loans [Member] | |||
Loans individually evaluated for impairment | 95,000 | 0 | |
Loans collectively evaluated for impairment | 7,000 | 7,000 | |
Total Loans | 102,000 | 7,000 | |
Loans individually evaluated for impairment ending | 289,000 | 76,000 | |
Loans collectively evaluated for impairment ending | 1,256 | 1,722 | |
Total Loans ending balance | 1,545,000 | 1,798,000 | |
Consumer Real Estate Loan [Member] | |||
Loans collectively evaluated for impairment | 4,000 | 10,000 | |
Total Loans | 4,000 | 10,000 | |
Loans individually evaluated for impairment ending | 0 | 0 | |
Loans collectively evaluated for impairment ending | 1,226 | 1,729 | |
Total Loans ending balance | 1,226,000 | 1,729,000 | |
Loans individually evaluated for impairment | 0 | 0 | |
Consumer loans other loan [Member] | |||
Loans collectively evaluated for impairment | 0 | 8,000 | |
Total Loans | 0 | 8,000 | |
Loans individually evaluated for impairment ending | 0 | 0 | |
Loans collectively evaluated for impairment ending | 734 | 809 | |
Total Loans ending balance | 734,000 | 809,000 | |
Loans individually evaluated for impairment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unearned discount | $ 0 | $ 10,858 |
Maximum loan-to-value percentage | 80% | |
Small Business Administration [Member] | ||
Partial charge-offs of impaired loans | $ 18,000 | $ 52,000 |
Commercial Real Estate [Member] | ||
Secured loan | 16,200,000 | |
Loan amount | $ 7,300,000 | |
Loan portfolio in percentage | 35% |
BANK PREMISES AND EQUIPMENT (De
BANK PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Premises and equipment, gross | $ 2,291 | $ 2,271 |
Less accumulated depreciation | (2,128) | (1,968) |
Premises and equipment, net | 163 | 303 |
Leasehold improvements [Member] | ||
Premises and equipment, gross | $ 834 | 832 |
Leasehold improvements [Member] | Miniimum [Member] | ||
Premises and equipment useful lives | 10 years | |
Leasehold improvements [Member] | Maxiimum [Member] | ||
Premises and equipment useful lives | 15 years | |
Furniture and equipment [Member] | ||
Premises and equipment, gross | $ 1,457 | $ 1,439 |
Furniture and equipment [Member] | Miniimum [Member] | ||
Premises and equipment useful lives | 3 years | |
Furniture and equipment [Member] | Maxiimum [Member] | ||
Premises and equipment useful lives | 7 years |
BANK PREMISES AND EQUIPMENT (_2
BANK PREMISES AND EQUIPMENT (Details 1) $ in Thousands | Dec. 31, 2018 USD ($) |
CONSOLIDATED BALANCE SHEETS | |
2019 | $ 515 |
2020 | 438 |
2021 | 447 |
2022 | 455 |
2023 | 316 |
Thearafter | 0 |
Total | $ 2,171 |
BANK PREMISES AND EQUIPMENT (_3
BANK PREMISES AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED BALANCE SHEETS | ||
Depreciation expense | $ 160,261 | $ 185,882 |
Operating leases expense | $ 473,767 | $ 477,689 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Total | $ 392 | $ 626 | $ 447 |
Commercial Real Estate [Member] | |||
Total | 168 | 294 | |
Residential Real Estate [Member] | |||
Total | $ 224 | $ 332 |
OTHER REAL ESTATE OWNED (Deta_2
OTHER REAL ESTATE OWNED (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER REAL ESTATE OWNED (Details) | ||
Beginning Balance | $ 626 | $ 447 |
Additions, transfers from loans | 0 | 184 |
Sales | (229) | 0 |
Other real estate subtotal | 397 | 631 |
Write-downs | (5) | (5) |
Ending balance | $ 392 | $ 626 |
DEPOSITS (Details)
DEPOSITS (Details) $ in Thousands | Dec. 31, 2018 USD ($) |
CONSOLIDATED BALANCE SHEETS | |
2019 | $ 7,010 |
2020 | 499 |
2021 | 116 |
2022 | 136 |
2023 | 84 |
Thereafter | 22 |
Time Deposits, Total | $ 7,867 |
DEPOSITS (Details Narrative)
DEPOSITS (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total deposits | $ 12,820,000,000 | $ 17,010,000,000 |
Deposits in excess | 250,000,000 | |
Deposits held by related parties | 223,246,000 | |
Deposits | 48,272,193 | $ 55,455,254 |
City of Philadelphia [Member] | ||
Deposits | $ 2,500,000 |
BORROWINGS (Details Narrative)
BORROWINGS (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
BORROWINGS (Details Narrative) | ||
Securities pledged | $ 750,000 | |
Maximum amount to be borrowed | 700,000 | |
Outstanding borrowings | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CONSOLIDATED BALANCE SHEETS | ||
Provision for loan losses | $ 29 | $ 7 |
Unrealized (loss) gain on investment securities | (25) | (15) |
Depreciation | 37 | (22) |
Net operating carryforwards | 2,459 | 2,243 |
Other, net | 230 | 278 |
Valuation allowance for deferred tax assets | (2,755) | (2,506) |
Net deferred tax assets | $ (25) | $ (15) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED BALANCE SHEETS | ||
Tax at statutory rate (21% in 2018, 34% in 2017) | $ (312,000) | $ (109,000) |
Change in tax rate | 0 | 1,551,000 |
Nondeductible expenses | 6,000 | 8,000 |
Increase in valuation allowance | 290,000 | (1,371,000) |
True-up of NOL | 6,000 | (74,000) |
Other | 10,000 | (5,000) |
Total tax expense | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED BALANCE SHEETS | ||
Net operating loss carry forwards | $ 11,763,000 | |
Net operating loss carry forwards expiration | 2024 through 2038 | |
Valuation allowance for deferred tax assets | $ (2,755,000,000) | $ (2,505,700,000) |
FINANCIAL INSTRUMENT COMMITME_3
FINANCIAL INSTRUMENT COMMITMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
OTHER REAL ESTATE OWNED (Details) | ||
Commitments to extend credit | $ 1,903,000 | $ 4,670,000 |
Outstanding letters of credit | $ 45,000 | $ 317,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
SECURITIES, available-for-sale | $ 4,581,000 | $ 5,145,000 |
Loans held for sale | 10,073,000 | 10,297,000 |
Loans held at fair value | 5,420,000 | 4,451,000 |
Money market funds | 132 | |
Loans held at fair value | 5,420,004 | 4,450,901 |
Servicing asset | 313,489 | 319,368 |
Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
SECURITIES, available-for-sale | 2,304,000 | 2,740,000 |
Fair Value, Recurring [Member] | U.S. Government agency securities [Member] | ||
SECURITIES, available-for-sale | 2,277,000 | 2,273,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Loans held at fair value | 21,979 | 26,617 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
SECURITIES, available-for-sale | 0 | 132,000 |
Loans held for sale | 0 | 0 |
Money market funds | 132 | |
Loans held at fair value | 0 | 0 |
Servicing asset | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
SECURITIES, available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | U.S. Government agency securities [Member] | ||
SECURITIES, available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
SECURITIES, available-for-sale | 4,581,000 | 5,013,000 |
Loans held for sale | 10,073,000 | 10,297,000 |
Money market funds | 0 | |
Loans held at fair value | 0 | 0 |
Servicing asset | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
SECURITIES, available-for-sale | 2,304,000 | 2,740,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | U.S. Government agency securities [Member] | ||
SECURITIES, available-for-sale | 2,277,000 | 2,273,000 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
SECURITIES, available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held at fair value | 5,420,000 | 4,451,000 |
Servicing asset | 313,000 | 319,000 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
SECURITIES, available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | U.S. Government agency securities [Member] | ||
SECURITIES, available-for-sale | 0 | 0 |
Fair Value [Member] | ||
SECURITIES, available-for-sale | 4,581,000 | |
Servicing asset | $ 313,000 | $ 319,000 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Inputs, Level 3 [Member] | Servicing Asset [Member] | ||
Change in fair value | $ (55) | $ (51) |
Balance at end of year | $ 313 | $ 319 |
Fair Value, Inputs, Level 3 [Member] | Servicing Asset [Member] | Miniimum [Member] | ||
Constant repayment rate | 4.94% | 5.58% |
Discount rate | 11.38% | 11.75% |
Weighted average life | 2 years 14 days | 2 years 8 months 1 day |
Fair Value, Inputs, Level 3 [Member] | Servicing Asset [Member] | Maxiimum [Member] | ||
Constant repayment rate | 15.92% | 10.67% |
Discount rate | 19.61% | 19.74% |
Weighted average life | 6 years 9 months 7 days | 9 years 1 month 2 days |
Loans Held At Fair Value [Member] | ||
Change in fair value | $ (230) | $ (381) |
Balance at end of year | $ 5,420 | $ 4,451 |
Loans Held At Fair Value [Member] | Miniimum [Member] | ||
Constant repayment rate | 0% | 8.54% |
Discount rate | 5.49% | 9% |
Weighted average life | 2 years 14 days | 2 years 8 months 1 day |
Project default rate | 1.07% | 0.75% |
Project recovery rate | 9.66% | |
Loans Held At Fair Value [Member] | Maxiimum [Member] | ||
Constant repayment rate | 16.50% | 10.41% |
Discount rate | 9.76% | 11.62% |
Weighted average life | 6 years 10 months 20 days | 9 years 3 months 14 days |
Project default rate | 10.12% | 7.61% |
Project recovery rate | 51.86% |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Origination of loans | $ 4,868,111 | $ 4,763,580 |
Fair Value, Inputs, Level 3 [Member] | Servicing Asset [Member] | ||
Balance at beginning of year | 319,000 | 313,000 |
Additions related to new loan origination | 49,000 | 57,000 |
Change in fair value | (55,000) | (51,000) |
Balance at end of year | 313,000 | 319,000 |
Loans Held At Fair Value [Member] | ||
Balance at beginning of year | 4,451,000 | 4,207,000 |
Change in fair value | (230,000) | (381,000) |
Balance at end of year | 5,420,000 | 4,451,000 |
Origination of loans | 1,420,000 | 8,160,000 |
Principal repayments | $ (221,000) | $ (191,000) |
FAIR VALUE MEASUREMENTS (Deta_4
FAIR VALUE MEASUREMENTS (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Impairment loans | $ 324 | $ 134 | |
Other real estate owned | 392 | 626 | $ 447 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member] | |||
Impairment loans | 0 | 0 | |
Other real estate owned | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | |||
Impairment loans | 0 | 0 | |
Other real estate owned | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | |||
Impairment loans | 324 | 134 | |
Other real estate owned | 153 | 626 | |
Fair Value [Member] | |||
Other real estate owned | $ 153 | $ 626 |
FAIR VALUE MEASUREMENTS (Deta_5
FAIR VALUE MEASUREMENTS (Details 5) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans, net of allowance for loan losses, Carrying value | $ 278,000 | $ 180,000 | $ 300,000 |
Loans, net of allowance for loan losses, fair value | 5,420,004 | 4,450,901 | |
Time deposits, Carrying value | 7,867,000 | ||
Accrued interest Payable, Carrying value | 152,953 | 153,415 | |
Fair Value, Inputs, Level 1 [Member] | |||
Cash and cash equivalents, Carrying value | 8,438 | 11,671 | |
Cash and cash equivalents, fair value | 8,438 | 7,803 | |
Loans, net of allowance for loan losses, Carrying value | 20,265 | 25,545 | |
Loans, net of allowance for loan losses, fair value | 21,979 | 26,617 | |
Fair Value, Inputs, Level 2 [Member] | |||
Accrued interest receivable, Carrying value | 153 | 153 | |
Accrued interest receivable, fair value | 153 | 141 | |
Demand deposits, Carrying value | 29,816 | 34,610 | |
Demand deposits, fair value | 29,816 | 28,497 | |
Savings deposits, Carrying value | 10,589 | 11,505 | |
Savings deposits, fair value | 10,589 | 11,735 | |
Time deposits, Carrying value | 7,867 | 9,339 | |
Time deposits, fair value | 7,757 | 10,395 | |
Accrued interest Payable, Carrying value | 17 | 14 | |
Accrued interest Payable, fair value | $ 17 | $ 11 |
FAIR VALUE MEASUREMENTS (Deta_6
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CONSOLIDATED BALANCE SHEETS | ||
Fair value vailable for sale | $ 4,581,000 | $ 5,145,000 |
Estimated selling cost | $ 15,000 | $ 16,000 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Noninterest income (in-scope of Topic 606) | $ 697 | $ 719 |
Noninterest income (out-of-scope of Topic 606) | (189) | 772 |
Total non-interest income | 508,000 | 1,491,000 |
Other Income [Member] | ||
Revenues | 370,000 | 480,000 |
Customer Service Fees [Member] | ||
Revenues | 4,090,000 | 3,970,000 |
ATM Fee Income [Member] | ||
Revenues | 101,000 | 120,000 |
Loan Syndication Fees [Member] | ||
Revenues | $ 1,500,000 | $ 1,540,000 |
CONSOLIDATED FINANCIAL INFORM_3
CONSOLIDATED FINANCIAL INFORMATION-PARENT COMPANY ONLY (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Total assets | $ 50,194,623 | $ 59,008,867 | |
Common stock | 8,269 | 8,269 | |
Additional paid-in capital | 15,677,626 | 15,677,626 | |
Accumulated deficit | (13,834,625) | (12,348,988) | |
Accumulated other comprehensive loss | (92,535) | (57,396) | |
Shareholders' equity | 1,759,746 | 3,280,522 | $ 2,659,915 |
Parent Company [Member] | |||
Cash and cash equivalents | 31,000 | 38,000 | |
Investment in bank subsidiary | 1,728,000 | 3,242,000 | |
Total assets | 1,759,000 | 3,280,000 | |
Preferred stock | 1,000 | 1,000 | |
Common stock | 8,000 | 8,000 | |
Additional paid-in capital | 15,677,000 | 15,677,000 | |
Accumulated deficit | (13,834,000) | (12,349,000) | |
Accumulated other comprehensive loss | (93,000) | (57,000) | |
Shareholders' equity | $ 1,759,000 | $ 3,280,000 |
CONSOLIDATED FINANCIAL INFORM_4
CONSOLIDATED FINANCIAL INFORMATION-PARENT COMPANY ONLY (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net loss | $ (1,485,637) | $ (319,426) |
Net loss | (1,485,637) | (319,426) |
Parent Company [Member] | ||
Net loss | (7,000) | (12,000) |
Equity in net loss of subsidiary | (1,479,000) | (307,000) |
Net loss | $ (1,486,000) | $ (319,000) |
CONSOLIDATED FINANCIAL INFORM_5
CONSOLIDATED FINANCIAL INFORMATION-PARENT COMPANY ONLY (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net loss | $ (1,485,637) | $ (319,426) |
Net cash provided by operating activities | (1,734,072) | (3,094,434) |
Total cash flows from investing activities | 5,683,923 | 1,224,768 |
Net cash used in financing activities | (7,183,061) | 5,738,088 |
Cash and cash equivalents at beginning of year | 11,671,253 | 7,802,831 |
Cash and cash equivalents at end of year | 8,438,043 | 11,671,253 |
Parent Company [Member] | ||
Net loss | (1,486,000) | (319,000) |
Equity in net loss of subsidiary | 1,479,000 | 307,000 |
Net cash provided by operating activities | (7,000) | (12,000) |
Investment in subsidiary | 0 | (875,000) |
Total cash flows from investing activities | 0 | (75,000) |
Issuance of Series B Preferred Stock | 0 | 925,000 |
Net cash used in financing activities | (7,000) | 925,000 |
Cash and cash equivalents at beginning of year | 38,000 | 0 |
Cash and cash equivalents at end of year | $ 31,000 | $ 38,000 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tier I Leverage ratio (Tier I capital to total quarterly average assets) Bank [Member] | ||
Actual amount | $ 1,499 | $ 3,120 |
Minimum to be Adequately Capitalized Ratio | 5.51% | 4% |
Minimum to be Adequately Capitalized Amount | $ 3,120 | $ 2,263 |
Minimum to be Well Capitalized Ratio | 5% | 5% |
Minimum to be Well Capitalized Amount | $ 2,502 | $ 2,829 |
Actual ratio | 3% | 5.51% |
Tier I Leverage ratio (Tier I capital to total quarterly average assets) Company [Member] | ||
Actual amount | $ 1,539 | $ 3,158 |
Minimum to be Adequately Capitalized Ratio | 5.58% | 0% |
Minimum to be Adequately Capitalized Amount | $ 3,158 | $ 0 |
Minimum to be Well Capitalized Ratio | 0% | 0% |
Minimum to be Well Capitalized Amount | $ 0 | $ 0 |
Actual ratio | 3.08% | 5.58% |
Tier I capital to risk weighted assets Company [Member] | ||
Actual amount | $ 1,539 | $ 3,158 |
Minimum to be Adequately Capitalized Ratio | 9.67% | 0% |
Minimum to be Adequately Capitalized Amount | $ 3,158 | $ 0 |
Minimum to be Well Capitalized Ratio | 0% | 0% |
Minimum to be Well Capitalized Amount | $ 0 | $ 0 |
Actual ratio | 5.49% | 9.67% |
Total (Tier II) capital to risk weighted assets Company [Member] | ||
Actual amount | $ 1,817 | $ 3,338 |
Minimum to be Adequately Capitalized Ratio | 10.22% | 0% |
Minimum to be Adequately Capitalized Amount | $ 3,338 | $ 0 |
Minimum to be Well Capitalized Ratio | 0% | 0% |
Minimum to be Well Capitalized Amount | $ 0 | $ 0 |
Actual ratio | 6.48% | 10.22% |
Tier I capital to risk weighted assets Bank [Member] | ||
Actual amount | $ 1,499 | $ 3,120 |
Minimum to be Adequately Capitalized Ratio | 9.56% | 6% |
Minimum to be Adequately Capitalized Amount | $ 3,120 | $ 1,959 |
Minimum to be Well Capitalized Ratio | 8% | 8% |
Minimum to be Well Capitalized Amount | $ 2,242 | $ 2,612 |
Actual ratio | 5.35% | 9.56% |
Common equity Tier I capital to risk weighted assets Bank [Member] | ||
Actual amount | $ 1,499 | $ 3,120 |
Minimum to be Adequately Capitalized Ratio | 9.56% | 4.50% |
Minimum to be Adequately Capitalized Amount | $ 3,120 | $ 1,469 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum to be Well Capitalized Amount | $ 1,822 | $ 2,122 |
Actual ratio | 5.35% | 9.56% |
Common equity Tier I capital to risk weighted assets Company [Member] | ||
Actual amount | $ 1,539 | $ 3,158 |
Minimum to be Adequately Capitalized Ratio | 9.67% | 0% |
Minimum to be Adequately Capitalized Amount | $ 3,158 | $ 0 |
Minimum to be Well Capitalized Ratio | 0% | 0% |
Minimum to be Well Capitalized Amount | $ 0 | $ 0 |
Actual ratio | 5.49% | 9.67% |
Total (Tier II) capital to risk weighted assets Bank [Member] | ||
Actual amount | $ 1,777 | $ 3,300 |
Minimum to be Adequately Capitalized Ratio | 10.11% | 8% |
Minimum to be Adequately Capitalized Amount | $ 3,300 | $ 2,612 |
Minimum to be Well Capitalized Ratio | 10% | 10% |
Minimum to be Well Capitalized Amount | $ 2,803 | $ 3,265 |
Actual ratio | 6.34% | 10.11% |
REGULATORY MATTERS (Details Nar
REGULATORY MATTERS (Details Narrative) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2021 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 | |
Leverage capital ratio | 3 | 5.51 | |
Risk-weighted assets description | 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 | ||
Risk-based capital ratio | 6.34 | 10.11 | |
Other grants [Member] | |||
Grant | $ 1,286,000 | $ 3,400,000 | |
Grant revenue | 2,800,000 | ||
Deferred revenue | 617,000 | ||
City of Philadelphia [Member] | |||
Bank received | $ 2,500,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2022 | Aug. 31, 2021 | |
Leverage capital ratio | 3% | 9.83% | ||||||
Risk based capital ratio | 6.34% | 23.01% | ||||||
Write down of loans held at fair value | $ 1,200,000 | $ 1,200,000 | ||||||
Subsequent Event [Member] | ||||||||
Leverage capital ratio | 5.66% | 5.66% | 9.83% | |||||
Total grants awarded | $ 1,286,000 | |||||||
External investment received | $ 600,000 | |||||||
Grant received | $ 3,400,000 | $ 2,500,000 | ||||||
Risk based capital ratio | 11.91% | 11.91% | 23.01% | |||||
Write down of loans held at fair value | $ 639,000 | |||||||
Noninterest grant income | 2,800,000 | |||||||
Deferred Revenue | $ 617,000 |
EARNINGS PER SHARE COMPUTATIO_2
EARNINGS PER SHARE COMPUTATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE COMPUTATION | ||
Net loss | $ (1,485,637) | $ (319,426) |
Basic EPS loss attributable to common stockholders | $ (1,485,637) | $ (319,426) |
Basic EPS share atributable to common stockholders | 826,921 | 826,921 |
Diluted EPS loss attributable to common stockholders | $ (1,485,637) | $ (319,426) |
Diluted EPS share atributable to common stockholders | 826,921 | 826,921 |
Basic earning per share | $ (1.80) | $ (0.39) |
Diluted earning per share | $ (1.80) | $ (0.39) |
SUMMARY OF QUARTERLY RESULTS _3
SUMMARY OF QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense | $ 77,827 | $ 71,681 | ||||||||
Provision (credit) for loan losses | 3,170,000 | (82,000) | ||||||||
Net interest after provision (credit) for loan losses | 2,284,387 | 2,550,830 | ||||||||
Noninterest income | 508,000 | 1,491,000 | ||||||||
Noninterest expense | 4,277,985 | 4,361,552 | ||||||||
Net loss | $ (1,485,637) | $ (319,426) | ||||||||
Operating [Member] | ||||||||||
Interest income | $ 708,000 | $ 678,000 | $ 675,000 | $ 618,000 | $ 651,000 | $ 674,000 | $ 583,000 | $ 633,000 | ||
Interest expense | 19,000 | 19,000 | 20,000 | 20,000 | 20,000 | 19,000 | 16,000 | 17,000 | ||
Net interest income | 689,000 | 659,000 | 654,000 | 598,000 | 631,000 | 655,000 | 567,000 | 616,000 | ||
Provision (credit) for loan losses | 272,000 | 20,000 | 5,000 | 20,000 | 9,000 | (15,000) | (46,000) | (30,000) | ||
Net interest after provision (credit) for loan losses | 417,000 | 639,000 | 649,000 | 578,000 | 622,000 | 670,000 | 613,000 | 646,000 | ||
Noninterest income | (419,000) | 392,000 | 221,000 | 314,000 | 453,000 | 490,000 | 307,000 | 241,000 | ||
Noninterest expense | 1,077,000 | 1,089,000 | 1,023,000 | 1,090,000 | 1,105,000 | 1,131,000 | 1,035,000 | 1,090,000 | ||
Net loss | $ (1,079,000) | $ (57,000) | $ (152,000) | $ (198,000) | $ (30,000) | $ 29,000 | $ (115,000) | $ (203,000) | ||
Basic income (loss) per common share | $ (1.31) | $ (0.07) | $ (0.18) | $ (0.24) | $ (0.03) | $ 0.03 | $ (0.14) | $ (0.25) | ||
Diluted income (loss) per common share | $ (1.31) | $ (0.07) | $ (0.18) | $ (0.24) | $ (0.03) | $ 0.03 | $ (0.14) | $ (0.25) |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2022 | |
GOING CONCERN (Details Narrative) | ||||
Leverage capital ratio | 3% | 9.83% | ||
Description of consent orders | 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% | |||
Risk based capital ratio | 6.34% | 23.01% | ||
Write down of loans held at fair value | $ 1,200,000 | $ 1,200,000 | ||
Reversal of fair value write downs | 200,000 | |||
Net loss | $ (1,486,000) | $ (319,000) |