Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | UNITED BANCSHARES INC /PA | |
Entity Central Index Key | 0000944792 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | No | |
Document Period End Date | Sep. 30, 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Common Stock Shares Outstanding | 843,050 | |
Document Quarterly 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 State Or Province | PA | |
Entity Address Postal Zip Code | 19102 | |
Entity Address City Or Town | Philadelphia | |
City Area Code | 215 | |
Local Phone Number | 351-4600 | |
Entity Address Address Line 1 | 30 S. 15th Street | |
Entity Address Address Line 2 | Suite 1200 | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 1,569,933 | $ 2,003,085 |
Interest-bearing deposits with banks | 5,449,578 | 3,360,937 |
Federal funds sold and other cash equivalents | 5,468,524 | 3,074,021 |
Cash and cash equivalents | 12,488,035 | 8,438,043 |
Investment securities available-for-sale, at fair value | 4,431,700 | 4,580,610 |
Loans held for sale | 8,426,558 | 10,072,777 |
Loans held at fair value | 5,886,789 | 5,420,004 |
Loans, net of unearned discounts and deferred fees | 17,365,120 | 20,542,863 |
Less allowance for loan losses | (218,910) | (278,095) |
Net loans | 17,146,210 | 20,264,768 |
Operating lease right of use asset | 1,644,806 | 0 |
Bank premises and equipment, net | 106,172 | 163,124 |
Accrued interest receivable | 167,303 | 152,953 |
Other real estate owned | 235,571 | 391,571 |
Servicing asset | 253,738 | 313,489 |
Prepaid expenses and other assets | 448,561 | 397,284 |
Total assets | 51,235,442 | 50,194,623 |
Liabilities: | ||
Demand deposits, noninterest-bearing | 16,788,603 | 16,216,607 |
Demand deposits, interest-bearing | 14,170,026 | 13,599,641 |
Savings deposits | 10,555,548 | 10,589,054 |
Time deposits, under $250,000 | 3,372,630 | 3,467,732 |
Time deposits, $250,000 and over | 1,504,397 | 4,399,159 |
Total deposits | 46,391,204 | 48,272,193 |
Operating lease liability | 1,750,369 | 0 |
Accrued interest payable | 6,100 | 17,376 |
Accrued expenses and other liabilities | 164,429 | 145,308 |
Total liabilities | 48,277,091 | 48,434,877 |
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 | (12,748,217) | (13,834,625) |
Accumulated other comprehensive income (loss) | 19,662 | (92,535) |
Total shareholders' equity | 2,958,351 | 1,759,746 |
Total liabilities and shareholders' equity | 51,235,442 | 50,194,623 |
Series B Preferred Stocks [Member] | ||
Shareholders' equity: | ||
Noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 99,342 issued and outstanding | 18 | 18 |
Series A Preferred Stocks [Member] | ||
Shareholders' equity: | ||
Noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 99,342 issued and outstanding | $ 993 | $ 993 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
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 stock, shares Outstanding (in shares) | 826,921 | 826,921 |
Under deposit | $ 250,000 | |
Over deposit | $ 250,000 | |
Series B Preferred Stocks [Member] | ||
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 |
Series A Preferred Stocks [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 A Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Authorized | 500,000 | 500,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Interest and fees on loans | $ 451,587 | $ 600,438 | $ 1,489,830 | $ 1,745,278 |
Interest on investment securities | 26,407 | 28,394 | 82,322 | 86,743 |
Interest on federal funds sold | 30,459 | 27,531 | 92,545 | 115,980 |
Interest on interest bearing deposits with other banks | 35,291 | 21,950 | 89,315 | 22,690 |
Total interest income | 543,744 | 678,313 | 1,754,012 | 1,970,691 |
Interest expense: | ||||
Interest on time deposits | 3,189 | 10,787 | 21,289 | 35,064 |
Interest on demand deposits | 5,855 | 6,675 | 17,432 | 19,708 |
Interest on savings deposits | 1,320 | 1,395 | 3,906 | 4,234 |
Total interest expense | 10,364 | 18,857 | 42,627 | 59,006 |
Net interest income | 533,380 | 659,456 | 1,711,385 | 1,911,685 |
(Credit) provision for loan losses | (10,000) | 20,000 | (32,000) | 45,000 |
Net interest income after (credit) provision for loan losses | 543,380 | 639,456 | 1,743,385 | 1,866,685 |
Noninterest income: | ||||
Customer service fees | 104,134 | 106,909 | 290,042 | 309,849 |
ATM fee income | 24,628 | 24,777 | 73,288 | 76,134 |
Gain on sale of loans | 0 | 41,204 | 81,475 | 265,022 |
Net change in fair value of financial instruments | (6,196) | 83,278 | (715,621) | 103,794 |
Gain (loss) on sale of other real estate | 0 | 16 | (18,723) | (11,588) |
Loan syndication fees | 65,000 | 100,000 | 65,000 | 100,000 |
Grant income | 0 | 0 | 2,500,000 | 0 |
Service fees on loans | 38,180 | 27,345 | 106,303 | 55,515 |
Other income | 9,689 | 8,902 | 32,364 | 28,828 |
Total noninterest income | 235,435 | 392,431 | 2,414,128 | 927,554 |
Noninterest expense: | ||||
Salaries, wages and employee benefits | 315,293 | 372,642 | 979,050 | 1,154,522 |
Occupancy and equipment | 247,143 | 244,865 | 707,993 | 746,000 |
Office operations and supplies | 51,060 | 62,202 | 150,663 | 200,825 |
Marketing and public relations | 5,490 | 1,742 | 9,809 | 27,069 |
Professional services | 50,089 | 65,481 | 160,717 | 137,753 |
Data processing | 111,014 | 98,878 | 324,908 | 307,735 |
Deposit insurance assessments | 24,000 | 24,000 | 56,353 | 73,000 |
Other real estate expense | 6,581 | 13,850 | 21,989 | 38,629 |
Loan and collection expense | 73,543 | 50,974 | 253,623 | 115,968 |
Other operating | 118,675 | 154,132 | 356,540 | 399,689 |
Total noninterest expense | 1,002,887 | 1,088,766 | 3,021,644 | 3,201,190 |
Net (loss) income before income taxes | (224,072) | (56,879) | 1,135,869 | (406,951) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net (loss) income | $ (224,072) | $ (56,879) | $ 1,135,869 | $ (406,951) |
Net (loss) income per common share-basic and diluted | $ (0.27) | $ (0.07) | $ 1.37 | $ (0.49) |
Weighted average number of common shares outstanding | 826,921 | 826,921 | 826,921 | 826,921 |
Comprehensive (loss) income: | ||||
Net (loss) income | $ (224,072) | $ (56,879) | $ 1,135,869 | $ (406,951) |
Unrealized gains (losses) on available for sale securities, net of taxes | 13,401 | (26,040) | 112,196 | (96,179) |
Total comprehensive (loss) income | $ (210,671) | $ (82,919) | $ 1,248,065 | $ (503,130) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) | Total | Series B, Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss | Series A, Preferred Stocks |
Balance, shares at Dec. 31, 2017 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Dec. 31, 2017 | $ 3,280,522 | $ 18 | $ 8,269 | $ 15,677,626 | $ (12,348,988) | $ (57,396) | $ 993 |
Net loss | (198,026) | 0 | 0 | 0 | (198,026) | 0 | |
Other comprehensive loss, net of tax | (53,879) | $ 0 | $ 0 | 0 | 0 | (53,879) | |
Balance, shares at Mar. 31, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Mar. 31, 2018 | 3,028,617 | $ 18 | $ 8,269 | 15,677,626 | (12,547,014) | (111,275) | $ 993 |
Balance, shares at Dec. 31, 2017 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Dec. 31, 2017 | 3,280,522 | $ 18 | $ 8,269 | 15,677,626 | (12,348,988) | (57,396) | $ 993 |
Net loss | (406,951) | ||||||
Net income | 1,911,685 | ||||||
Balance, shares at Sep. 30, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Sep. 30, 2018 | 2,777,392 | $ 18 | $ 8,269 | 15,677,626 | (12,755,939) | (153,575) | $ 993 |
Balance, shares at Mar. 31, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Mar. 31, 2018 | 3,028,617 | $ 18 | $ 8,269 | 15,677,626 | (12,547,014) | (111,275) | $ 993 |
Net loss | (152,046) | 0 | 0 | 0 | (152,046) | 0 | |
Other comprehensive loss, net of tax | (16,259) | $ 0 | $ 0 | 0 | 0 | (16,259) | |
Balance, shares at Jun. 30, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Jun. 30, 2018 | 2,860,312 | $ 18 | $ 8,269 | 15,677,626 | (12,699,060) | (127,534) | $ 993 |
Net loss | (56,879) | 0 | 0 | 0 | (56,879) | 0 | |
Other comprehensive loss, net of tax | (26,041) | $ 0 | $ 0 | 0 | 0 | (26,041) | |
Net income | 659,456 | ||||||
Balance, shares at Sep. 30, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Sep. 30, 2018 | 2,777,392 | $ 18 | $ 8,269 | 15,677,626 | (12,755,939) | (153,575) | $ 993 |
Balance, shares at Dec. 31, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Dec. 31, 2018 | 1,759,746 | $ 18 | $ 8,269 | 15,677,626 | (13,834,625) | (92,535) | $ 993 |
Net loss | (227,508) | 0 | 0 | 0 | (227,508) | 0 | 0 |
Other comprehensive loss, net of tax | 57,890 | $ 0 | $ 0 | 0 | 0 | 57,890 | $ 0 |
Cumulative effect of adoption of ASU 2016-02, Leases (Topic 842) | (49,460) | (49,460) | |||||
Balance, shares at Mar. 31, 2019 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Mar. 31, 2019 | 1,540,668 | $ 18 | $ 8,269 | 15,677,626 | (14,111,593) | (34,645) | $ 993 |
Balance, shares at Dec. 31, 2018 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Dec. 31, 2018 | 1,759,746 | $ 18 | $ 8,269 | 15,677,626 | (13,834,625) | (92,535) | $ 993 |
Net loss | 1,135,869 | ||||||
Net income | 1,711,385 | ||||||
Balance, shares at Sep. 30, 2019 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Sep. 30, 2019 | 2,958,351 | $ 18 | $ 8,269 | 15,677,626 | (12,748,217) | 19,662 | $ 993 |
Balance, shares at Mar. 31, 2019 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Mar. 31, 2019 | 1,540,668 | $ 18 | $ 8,269 | 15,677,626 | (14,111,593) | (34,645) | $ 993 |
Other comprehensive loss, net of tax | 40,905 | 0 | 0 | 0 | 0 | 40,905 | 0 |
Net income | 1,587,448 | $ 0 | $ 0 | 0 | 1,587,448 | 0 | $ 0 |
Balance, shares at Jun. 30, 2019 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Jun. 30, 2019 | 3,169,021 | $ 18 | $ 8,269 | 15,677,626 | (12,524,145) | 6,260 | $ 993 |
Net loss | (224,072) | 0 | 0 | 0 | (224,072) | 0 | 0 |
Other comprehensive loss, net of tax | 13,402 | $ 0 | $ 0 | 0 | 0 | 13,402 | $ 0 |
Net income | 533,380 | ||||||
Balance, shares at Sep. 30, 2019 | 1,850 | 826,921 | 99,342 | ||||
Balance, amount at Sep. 30, 2019 | $ 2,958,351 | $ 18 | $ 8,269 | $ 15,677,626 | $ (12,748,217) | $ 19,662 | $ 993 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,135,869 | $ (406,951) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
(Credit) provision for loan losses | (32,000) | 45,000 |
Amortization of premiums on investments, net | 4,203 | 5,360 |
Loss on disposition of other real estate | 18,723 | 11,588 |
Write-down of other real estate | 0 | 5,000 |
Amortization of servicing asset | 24,198 | 91,919 |
Depreciation on fixed assets | 60,233 | 137,032 |
Net change in fair value of financial instruments | 715,621 | (103,794) |
Gain on sale of loans | (81,475) | (265,022) |
Proceeds from the sale of loans held-for-sale | 1,144,073 | 3,098,258 |
Loans originated for sale | (598,785) | (5,747,443) |
Increase in accrued interest receivable and other assets | (30,074) | (115,552) |
Increase (decrease) in accrued interest payable and other liabilities | 28,937 | (100,436) |
Net cash provided by (used in) operating activities | 2,389,523 | (3,345,041) |
Cash flows from investing activities: | ||
Proceeds from maturity and principal reductions of available-for-sale investment securities | 256,903 | 457,629 |
Purchase of securities available-for-sale | 0 | (1,765) |
Net decrease in loans | 3,150,558 | 3,627,344 |
Proceeds from sale of other real estate | 137,277 | 217,911 |
Purchase of bank premises and equipment | (3,281) | (20,086) |
Net cash provided by investing activities | 3,541,457 | 4,281,031 |
Cash flows from financing activities: | ||
Net decrease in deposits | (1,880,989) | (4,385,667) |
Net cash used in financing activities | (1,880,990) | (4,385,667) |
Net increase (decrease) in cash and cash equivalents | 4,049,992 | (3,449,677) |
Cash and cash equivalents at beginning of period | 8,438,043 | 11,671,253 |
Cash and cash equivalents at end of period | 12,488,035 | 8,221,576 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 53,903 | 61,390 |
Transfer of investment to other cash equivalents | 0 | 133,296 |
Transfer of loans from held-for-sale to held at fair value | 1,580,482 | 731,625 |
Non-cash addition of operating lease right of use asset | (1,644,806) | 0 |
Non-cash addition of operating lease liability | $ 1,750,369 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies | |
SIGNIFICANT ACCOUNTING POLICIES | 1. Significant Accounting Policies United Bancshares, Inc. (the "Company") is a bank holding company registered under the Bank Holding Company Act of 1956. The Company's principal activity is the ownership and management of its wholly owned subsidiary, United Bank of Philadelphia (the "Bank"). During interim periods, the Company follows the accounting policies set forth in its Annual Report on Form 10-K filed with the Securities and Exchange Commission. Readers are encouraged to refer to the Company's Form 10-K for the fiscal year ended December 31, 2018 when reviewing this Form 10-Q. Because this report is based on an interim period, certain information and footnote disclosures normally included in the Annual Report on Form 10-K have been condensed or omitted. Quarterly results reported herein are not necessarily indicative of results to be expected for other quarters. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the Company's consolidated financial position as of September 30, 2019 and December 31, 2018 and the consolidated results of its operations and its cash flows for the three and nine months ended September 30, 2019 and 2018. 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 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. Commitments In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments. Contingencies The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company. 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. 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 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. 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. Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination. It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Bank does not allocate reserves for unfunded commitments to fund lines of credit. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank will identify and assess loans that may be impaired through any of the following processes: · During regularly scheduled meetings of the Asset Quality Committee · During regular reviews of the delinquency report · During the course of routine account servicing, annual review, or credit file update · Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable Loan-to-Value ratio Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures. Non-accrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received within 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. Interest on loans past due 90 days or more ceases to accrue except for loans that are well collateralized and in the process of collection. When a loan is placed on nonaccrual status, previously accrued and unpaid interest is reversed out of income. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Income Taxes Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities. Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not. For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset, other than the asset/liability related to the available for sale investment, has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards. If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount. 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 is 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. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Net (Loss) Income Per Share | |
Net (Loss) Income Per Share | 2. Net (Loss) Income Per Share The calculation of net (loss) income per share follows: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Basic: Net (loss) income available to common shareholders $ (224,072 ) $ (56,879 ) $ 1,135,869 $ (406,951 ) Average common shares outstanding-basic 826,921 826,921 826,921 826,921 Net (loss) income per share-basic $ (0.27 ) $ (0.07 ) $ 1.37 $ (0.49 ) Diluted: Average common shares-diluted 826,921 826,921 826,921 826,921 Net (loss) income per share-diluted $ (0.27 ) $ (0.07 ) $ 1.37 $ (0.49 ) 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 (loss) income per share calculations. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Changes in Accumulated Other Comprehensive Income (Loss) | 3. Changes in Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) which is solely comprised of the unrealized gain or loss of available for sale investment securities: Three Months Ended September 30, 2019 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ 8 $ (2 ) $ 6 Unrealized gain on securities: Unrealized holding gain arising during period 18 (4 ) 14 Other comprehensive income, net 18 (4 ) 14 Ending balance $ 26 $ (6 ) $ 20 Three Months Ended September 30, 2018 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ (161 ) $ 34 $ (127 ) Unrealized loss on securities: Unrealized holding loss arising during period (32 ) 6 (26 ) Other comprehensive loss, net (32 ) 6 (26 ) Ending balance $ (193 ) $ 40 $ (153 ) Nine Months Ended September 30, 2019 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ (117 ) $ 25 $ (92 ) Unrealized gain on securities: Unrealized holding gain arising during period 143 (31 ) 112 Other comprehensive gain, net 143 (31 ) 112 Ending balance $ 26 $ (6 ) $ 20 Nine Months Ended September 30, 2018 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ (73 ) $ 16 $ (57 ) Unrealized loss on securities: Unrealized holding loss arising during period (120 ) 24 (96 ) Other comprehensive loss, net (120 24 (96 ) Ending balance $ (193 ) $ 40 $ (153 ) |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 9 Months Ended |
Sep. 30, 2019 | |
New Authoritative Accounting Guidance | |
New Authoritative Accounting Guidance | 4. New Authoritative Accounting Guidance Adoption of Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842) — Targeted Improvements Effect of Upcoming Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments 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 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Investment Securities | 5. Investment Securities The following is a summary of the Company's investment portfolio: (In 000’s) September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: U.S. Government agency securities $ 2,349 $ - $ (3 ) $ 2,346 Government Sponsored Enterprises residential mortgage-backed securities 2,057 31 (3 ) 2,085 $ 4,406 $ 31 $ (6 ) $ 4,431 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: 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 The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of September 30, 2019, are as follows: (In 000’s) Amortized Cost Fair Value Due in one year $ - $ - Due after one year through five years - - Due after five years through ten years 2,349 2,346 Government Sponsored Enterprises residential mortgage-backed securities 2,057 2,085 $ 4,406 $ 4,431 Expected maturities will differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without any penalties. There were no sales of securities during the three and nine months ended September 30, 2019 and 2018. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at September 30, 2019: (in 000’s) 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 4 $ 749 $ (1 ) $ 747 $ (2 ) $ 1,496 $ (3 ) Government Sponsored Enterprises residential mortgage-backed securities 3 491 (3 ) - - 491 (3 ) Total temporarily impaired investment Securities 7 $ 1,240 $ (4 ) $ 747 $ (2 ) $ 1,987 $ (6 ) The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2018: (in 000’s) 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 ) Government Sponsored Enterprises residential 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 ) Government Sponsored Enterprises residential mortgage-backed securities. U.S. Government and Agency 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, the Company reviews 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, the intent to sell a security or whether it is more likely than not the Company 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, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in value. As of September 30, 2019 and December 31, 2018, investment securities with a carrying value of $774,000 and $3,668,000, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | 6. Loans and Allowance for Loan Losses The composition of the Bank’s loan portfolio is as follows: (in 000’s) September 30, 2019 December 31, 2018 Commercial and industrial $ 1,340 $ 1,545 Commercial real estate 14,293 17,038 Consumer real estate 1,083 1,226 Consumer loans other 649 734 Total loans $ 17,365 $ 20,543 At September 30, 2019 and December 31, 2018, there was no unearned discount. 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 · Historical Charge-Off Component · Qualitative Factors Component All of these factors may be susceptible to significant change. During the nine months ended September 30, 2019, the Bank did not change any of its qualitative factors in any segment of the loan portfolio; however, the average historical loss factor increased significantly for commercial and industrial loans because of net charge-offs that resulted in an increase in general reserves. Credits to the provision for the nine months ended September 30, 2019 were primarily related to decreases in the balance of commercial real estate loans as well as the origination of SBA loans that are accounted for at fair value and are not included in the calculation of the allowance for loan losses. (in 000's) For the Three months ended September 30, 2019 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 49 $ 185 $ 2 $ - $ - $ 236 (Credit) provision for loan losses (11 ) 3 (1 ) - (1 ) (10 ) Charge-offs - (20 ) - (1 ) - (21 ) Recoveries - 12 - 1 1 14 Net charge-offs - (8 ) - - 1 (7 ) Ending balance $ 38 $ 180 $ 1 $ - $ - $ 219 (in 000's) For the Three months ended September 30, 2018 Commercial and industrial Commercial real Estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 3 $ 150 $ 4 $ 8 $ 15 $ 180 Provision (credit) for loan losses 80 (37 ) - (8 ) (15 ) 20 Charge-offs - - - (1 ) - (1 ) Recoveries 1 1 - 1 - 3 Net recoveries 1 1 - - - 2 Ending balance $ 84 $ 114 $ 4 $ - $ - $ 202 (in 000's) For the Nine months ended September 30, 2019 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 102 $ 139 $ 4 $ - $ 33 $ 278 Provision (credit) for loan losses (48 ) 62 (12 ) (1 ) (33 ) (32 ) Charge-offs (19 ) (41 ) (12 ) (7 ) - (79 ) Recoveries 3 20 21 8 - 52 Net (charge-offs) recoveries (16 ) (21 ) 9 1 - (27 ) Ending balance $ 38 $ 180 $ 1 $ - $ - $ 219 (in 000's) For the Nine months ended September 30, 2018 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 7 $ 155 $ 10 $ 8 $ - $ 180 Provision (credit) for loan losses 84 (26 ) (6 ) (7 ) 45 Charge-offs (10 ) (18 ) - (8 ) - (36 ) Recoveries 3 3 - 7 - 13 Net charge-offs (7 ) (15 ) - (1 ) - (23 ) Ending balance $ 84 $ 114 $ 4 $ - $ - $ 202 (in 000's) September 30, 2019 Commercial and industrial Commercial real Estate Consumer real estate Consumer loans Other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 81 $ - $ - $ - $ 81 Loans collectively evaluated for impairment 38 99 1 - - 138 $ 38 $ 180 $ 1 $ - $ - $ 219 Loans, ending balance: Loans individually evaluated for impairment $ 76 $ 1,249 $ - $ - $ - $ 1,325 Loans collectively evaluated for impairment 1,264 13,044 1,083 649 - 16,040 Total $ 1,340 $ 14,293 $ 1,083 $ 649 $ - $ 17,365 (in 000's) 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 Nonperforming and Nonaccrual and Past Due Loans An age analysis of past due loans, segregated by class of loans, as of September 30, 2019 is as follows: Accruing Nonaccrual Loans Loans 90 or Loans 90 or (In 000's) 30-89 Days More Days More Days Total Past Current Past Due Past Due Past Due Due Loans Loans Total Loans Commercial and industrial: Commercial $ - $ - $ - $ - $ 1,039 $ 1,039 SBA loans - - - - - - Asset-based - - 76 76 225 301 Total Commercial and industrial - - 76 76 1,264 1,340 Commercial real estate: Commercial mortgages - - 1,010 1,010 6,358 7,368 SBA loans - - 60 60 175 235 Construction - - - - - - Religious organizations 369 - 179 548 6,142 6,690 Total Commercial real estate 369 - 1,249 1,618 12,675 14,293 Consumer real estate: Home equity loans - 148 240 388 151 539 Home equity lines of credit - - - - 13 13 1-4 family residential mortgages - - - - 531 531 Total consumer real estate - 148 240 388 695 1,083 Total real estate 369 148 1,489 2,006 13,370 15,376 Consumer and other: Student loans 6 5 - 11 553 564 Other 1 - - 1 84 85 Total consumer and other 7 5 - 12 637 649 Total loans $ 376 $ 153 $ 1,565 $ 2,094 $ 15,271 $ 17,365 An age analysis of past due loans, segregated by class of loans, as of December 31, 2018 is as follows: Accruing Nonaccrual Loans Loans 90 or Loans 90 or 30-89 Days More Days More Days Total Past Current (In 000's) Past Due Past Due Past Due 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 Total real estate - 195 1,516 1,711 16,553 18,264 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 Loan Origination/Risk Management 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 indicators discussed above. (In 000's) Commercial Loans September 30, 2019 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 250 $ 578 $ - $ - $ 211 $ - $ 1,039 SBA loans - - - - - - - Asset-based - 225 - - - 76 301 250 803 - - 211 76 1,340 Commercial real estate: Commercial mortgages - 4,864 1,705 - 613 186 7,368 SBA Loans - 175 - - 60 - 235 Construction - - - - - - - Religious organizations 8 4,469 2,034 - 179 - 6,690 8 9,508 3,739 - 852 186 14,293 Total commercial loans $ 258 $ 10,311 $ 3,739 $ - $ 1,063 $ 262 $ 15,633 Residential Mortgage and Consumer Loans September 30, 2019 Performing Nonperforming Total Consumer Real Estate: Home equity $ 151 $ 388 $ 539 Home equity line of credit 13 - 13 1-4 family residential mortgages 291 - 531 455 388 1,083 Consumer Other: Student loans 559 5 564 Other 85 - 85 644 5 649 Total consumer loans $ 1,099 $ 393 $ 1,732 (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 Asset-based - 272 124 - 18 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 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 makes partial charge-offs of impaired loans when the impairment is deemed permanent and is considered a loss. Specific reserves are allocated to cover “other-than-permanent” Consumer real estate and other loans are not individually evaluated for impairment, but collectively evaluated, because they are pools of smaller balance homogeneous loans. Impaired loans as of September 30, 2019 are set forth in the following table. (In 000's) Unpaid Contractual Recorded Investment Recorded Investment Total Principal With No With Recorded Related Balance Allowance Allowance Investment Allowance Commercial and industrial: Commercial $ - $ - $ - $ - $ - SBA loans - - - - - Asset-based 76 76 - 76 - Total commercial and industrial 76 76 - 76 - Commercial real estate: Commercial mortgages 1,010 799 211 1,010 81 SBA Loans 60 60 - 60 - Religious organizations 179 179 - 179 - Total commercial real estate 1,249 1,038 211 1,249 81 Total loans $ 1,325 $ 1,114 $ 211 $ 1,325 $ 81 Impaired loans as of December 31, 2018 are set forth in the following table. (In 000's) Unpaid Contractual Recorded Investment Recorded Investment Total Principal With No With Recorded Related Balance Allowance Allowance Investment Allowance Commercial and industrial: Commercial $ 213 $ - $ 213 $ 213 $ 81 SBA - - - - - Asset based 76 - 76 76 14 Total Commercial and industrial 289 - 289 289 95 Commercial real estate: Commercial mortgages 898 739 159 898 13 SBA Loans 71 71 - 71 - Religious Organizations 179 - 179 179 31 Total Commercial real estate 1,148 810 338 1,148 44 Total loans $ 1,437 $ 810 $ 627 $ 1,437 $ 139 The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank. If these factors do not exist, the Bank will record interest payments on the cost recovery basis. The following tables present additional information about impaired loans. (In 000's) Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ - $ - $ 25 $ - SBA loans - - - - Asset-based 76 - 76 - Total commercial and industrial 76 - 101 - Commercial real estate: Commercial mortgages 1,104 5 936 1 SBA loans 62 - 73 - Religious organizations 179 - 180 - Total commercial real estate 1,345 5 1,189 - Total loans $ 1,421 $ 5 $ 1,290 $ 1 (In 000's) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ 183 $ - $ 8 $ 2 SBA loans - - - - Asset-based 76 - 76 - Total commercial and industrial 259 - 84 2 Commercial real estate: Commercial mortgages 847 - 946 1 SBA loans 65 - 76 - Religious organizations 179 - 182 - Total commercial real estate 1,091 - 1,204 - Total loans $ 1,350 $ - $ 1,288 $ 3 Troubled debt restructurings |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate Owned | |
Other Real Estate Owned | 7. 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. Activity in other real estate owned for the periods was as follows: (in 000's) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Beginning balance $ 236 $ 402 $ 392 $ 626 Additions, transfers from loans - - - - Sales - (10 ) (156 ) (229 ) 236 392 236 397 Write-ups (downs) - - - (5 ) Ending Balance $ 236 $ 392 $ 236 $ 392 There were no loans in the process of foreclosure at September 30, 2019 and December 31, 2018. The following schedule reflects the components of other real estate owned: (in 000's) September 30, 2019 December 31, 2018 Commercial real estate $ 161 $ 168 Residential real estate 75 224 Total $ 236 $ 392 |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Lease Commitments | |
Lease Commitments | 8 . Lease Commitments Due to the adoption of ASU 2016-02, Leases (Topic 842) The Company has elected to account for the variable non-lease components, such as common area maintenance charges, utilities, real estate taxes, and insurance, separately from the lease component. Such variable non-lease components are reported in net occupancy expense on the Consolidated Statements of Operations when paid. These variable non-lease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. The following table presents the lease cost associated with both operating and financing leases for the three-month period ending March 31, 2019 (in thousands). Total operating rent expense recorded during the three-month period ended September 30, 2019 and 2018 was $134,000 and $119,000, respectively. Total operating rent expense recorded during the nine-month period ended September 30, 2019 and 2018 was $385,000 and $354,000, respectively. Certain of the Company’s leases contain options to renew the lease after the initial term. Management considers the Company’s historical pattern of exercising renewal options on leases and the positive performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease as of January 1, 2019. The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at September 30, 2019. Operating Weighted-average remaining term (years) 4.62 Weighted-average discount rate 3.50 % The following table presents the undiscounted cash flows due related to operating and financing leases as of September 30, 2019, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. Operating Undiscounted cash flows due: Within 1 year $ 433 After 1 year but within 2 years 438 After 2 years but within 3 years 447 After 3 years but within 4 years 455 After 4 years but within 5 years 92 After 5 years 133 Total undiscounted cash flows 1,998 Discount on cash flows (248 ) Total lease liabilities $ 1,750 Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. As of September 30, 2019, the Company had one lease for its Mount Airy branch that had a term of twelve months or less that did not include a purchase option. This lease is excluded from total lease liabilities. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value | |
FAIR VALUE MEASUREMENTS | 9. Fair Value Fair Value Measurement The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance in FASB ASC 820 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 at fair value in three levels as follows: Level 1 · Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 · 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 · 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. A financial instrument’s 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 (“AFS”): 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 Measured at Fair Value at September 30, 2019 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 $ 2,346 $ - $ 2,346 $ - Government Sponsored Enterprises residential mortgage-backed securities 2,085 - 2,085 - Total $ 4,431 - $ 4,431 - Loans held for sale $ 8,426 $ - $ 8,426 $ - Loans held at fair value $ 5,887 $ - $ - $ 5,887 Servicing asset $ 254 $ - $ - $ 254 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets 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 The fair value of the Bank’s AFS securities portfolio was approximately $4,431,000 and $4,581,000 at September 30, 2019 and December 31, 2018, 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 all relevant information. There were no transfers between Level 1 and Level 2 assets during the periods ended September 30, 2019 and 2018. When estimating the fair value of Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows: (in 000’s) Assets measured at fair value September 30, 2019 Fair value December 31, 2018 Fair Value Principal valuation techniques Significant observable inputs September 30, 2019 Range of inputs December 31, 2018 Range of inputs Loans held at fair value $ 5,887 $ 5,420 Discounted cash flow Constant prepayment rate 0% to 23.24% 0% to 16.5% Discount rate 7.95% to 10.37% 5.49% to 9.76% Weighted average life 1.69 yrs. to 4.42 yrs. 2.04 yrs. to 6.89 yrs. Projected default rate 2.22% to 11.59% 1.07% to 10.12% (in 000’s) Assets measured at fair value September 30, 2019 Fair value December 31, 2018 Fair Value Principal valuation techniques Significant observable inputs September 30, 2019 Range of inputs December 31, 2018 Range of inputs Servicing asset $ 254 $ 313 Discounted cash flow Constant prepayment rate 7.24% to 21.96% 4.94% to 15.92 % Discount rate 8.71% to 26.59% 11.38% to 19.61% Weighted average life 1.52 yrs. to 4.42 yrs. 2.04 yrs. to 6.77 yrs. 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: (in 000’s) Loans held at fair value Servicing Asset Balance at December 31, 2018 $ 5,420 $ 313 Origination of loans/transfers 1,822 17 Principal repayments/amortization (742 ) (24 ) Change in fair value of financial instruments (613 ) (52 ) Balance at September 30, 2019 $ 5,887 $ 254 Fair Value on a Nonrecurring Basis Certain assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of September 30, 2019 and December 31, 2018, for which a nonrecurring change in fair value has been recorded during the nine months ended September 30, 2019 and year ended December 31, 2018. Carrying Value at September 30, 2019: (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 $ 131 $ - $ - $ 131 Other real estate owned (“OREO”) $ 236 $ - $ - $ 236 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 (“OREO”) $ 392 $ - $ - $ 392 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 September 30, 2019 and December 31, 2018, the fair values shown above exclude estimated selling costs of $28,500 and $15,000, 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 requires disclosure of the fair value of financial assets and financial 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 assets and liabilities not previously disclosed are depicted below: September 30, 2019 December 31, 2018 (in 000’s) Level in Carrying Fair Carrying Fair Value Hierarchy Amount Value Amount Value (Dollars in thousands) Assets: Cash and cash equivalents Level 1 $ 12,488 $ 12,488 $ 8,438 $ 8,438 Loans, net of allowance for loan losses (1) 17,146 17,196 20,265 21,979 Accrued interest receivable Level 1 167 167 153 153 Liabilities: Demand deposits Level 1 30,959 30,959 29,816 29,816 Savings deposits Level 1 10,556 10,556 10,589 10,589 Time deposits (2) 4,877 4,814 7,867 7,757 Accrued interest payable Level 1 6 6 17 17 (1) Level 2 for non-impaired loans; Level 3 for impaired loans. (2) Level 1 for variable rate instruments, level 3 for fixed rate instruments. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
REVENUE RECOGNITION | 10. 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. 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 three and nine months ended September 30, 2019 and 2018. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands) Noninterest income: In-scope of Topic 606 Customer Service Fees $ 104 $ 107 $ 290 $ 310 ATM Fee Income 24 25 73 76 Loan Syndication Fees 65 100 65 100 Other income 48 36 2,638 84 Noninterest income (in-scope of Topic 606) 241 268 3,066 570 Noninterest income (out-of-scope of Topic 606) (6 ) 124 (652 ) 358 Total noninterest income $ 235 $ 392 $ 2,414 $ 928 |
Regulatory
Regulatory | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory | |
Regulatory | 11. Regulatory 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 September 30, 2019 and December 31, 2018, the Bank’s tier one leverage capital ratio was 5.37% and 3.00%, respectively, and its total risk-based capital ratio was 11.96%and 6.34%, 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. At June 30, 2022, the Bank’s Tier 1 leverage ratio was 9.50% and its total risk-based capital ratio was 21.92% which is considered “well capitalized” under the regulatory framework for prompt and corrective action. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2019 | |
Going Concern | |
Going Concern | 12. 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 $224,000 for the quarter ended September 30, 2019 and net loss of approximately $57,000 for the same quarter in 2018. Additionally, the Company reported net income of $1,136,000 for the nine months ended September 30, 2019 and a net loss of $407,000 for the nine months ended September 30, 2018. Further, the Company has entered into Consent Orders with the FDIC and the Department which, among other provisions, require the Bank to increase its tier one leverage capital ratio to 8.50% and its total risk-based capital ratio to 12.50%. As of September 30, 2019, the Bank’s tier one leverage capital ratio was 5.37% and its total risk-based capital ratio was 11.96%. The Bank’s failure to comply with the terms of the Consent Orders could result in additional regulatory supervision and/or actions. The ability of the Bank to continue as a going concern is dependent on many factors, including achieving required capital levels, earnings and fully complying with the Consent Orders. The Consent Orders raise substantial doubt about the Company’s ability to continue as a going concern. Management has developed a plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern. This plan is primarily based on the following: · Increase earnings: Core profitability is essential to stop the erosion of capital. Noninterest income will continue to be an important element of the Bank’s earnings enhancement plan, specifically noninterest income from SBA loans will continue to be an important income strategy for the Bank. In addition, management will seek to reduce noninterest expense by reducing targeted areas of overhead including the closure of the Mount Airy branch in 2018 as well as the projected recovery of SBA loan fair value write-downs and other cost reduction strategies. During 2018 and in 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 management believes will result in the recovery of some fair value write-downs. · Strengthen Capital: A concentrated effort will continue to be made to stabilize and strengthen the Bank’s capital. Management has identified potential sources of external capital that have been received in 2020 and 2021. This capital will be used to further strengthen the Bank’s balance sheet. At June 30, 2022, the Bank’s Tier 1 leverage ratio was 9.50% and its total risk-based capital ratio was 21.92% 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. Management plans to implement the Restoration Plan in an attempt to comply with the terms and conditions of the Orders. Based on management’s assessment of the Company’s ability to alleviate the substantial doubt about the its ability to continue as a going concern, these consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events | |
Subsequent Events | 13. Subsequent Events 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 June 30, 2022, the Bank’s Tier 1 leverage ratio was 9.50% and its total risk-based capital ratio was 21.92% which is considered “well capitalized” under the regulatory framework for prompt and corrective action. On October 31, 2022, the Board of Directors unanimously approved an Offer of Settlement with the Securities and Exchange Commission over the Company’s failure to comply with the Exchange Act Section 12(a) and Rules 13a-1 and 13a-13 thereunder because it has not filed periodic reports with the Commission since the period ended December 31, 2018. The Offer of Settlement revokes the registration of each class of the Company’s securities registered pursuant to Section 12 of the Exchange Act as of the effective date of the Offer of Settlement until there are two consecutive timely filings. There is currently no financial impact related to the revocation; however, management is working to remedy the matter to avoid further action. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies | |
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 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. |
Commitments | In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments. |
Contingencies | The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company. |
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. 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 |
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. |
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. Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination. It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Bank does not allocate reserves for unfunded commitments to fund lines of credit. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank will identify and assess loans that may be impaired through any of the following processes: · During regularly scheduled meetings of the Asset Quality Committee · During regular reviews of the delinquency report · During the course of routine account servicing, annual review, or credit file update · Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable Loan-to-Value ratio Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures. |
Non-accrual and Past Due Loans | Loans are considered past due if the required principal and interest payments have not been received within 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. Interest on loans past due 90 days or more ceases to accrue except for loans that are well collateralized and in the process of collection. When a loan is placed on nonaccrual status, previously accrued and unpaid interest is reversed out of income. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Income Taxes | Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities. Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not. For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset, other than the asset/liability related to the available for sale investment, has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards. If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount. 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 is 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. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations. |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net (Loss) Income Per Share | |
Schedule of calculation of net (loss) income per share | Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Basic: Net (loss) income available to common shareholders $ (224,072 ) $ (56,879 ) $ 1,135,869 $ (406,951 ) Average common shares outstanding-basic 826,921 826,921 826,921 826,921 Net (loss) income per share-basic $ (0.27 ) $ (0.07 ) $ 1.37 $ (0.49 ) Diluted: Average common shares-diluted 826,921 826,921 826,921 826,921 Net (loss) income per share-diluted $ (0.27 ) $ (0.07 ) $ 1.37 $ (0.49 ) |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Schedule of changes in accumulated other comprehensive income | Three Months Ended September 30, 2019 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ 8 $ (2 ) $ 6 Unrealized gain on securities: Unrealized holding gain arising during period 18 (4 ) 14 Other comprehensive income, net 18 (4 ) 14 Ending balance $ 26 $ (6 ) $ 20 Three Months Ended September 30, 2018 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ (161 ) $ 34 $ (127 ) Unrealized loss on securities: Unrealized holding loss arising during period (32 ) 6 (26 ) Other comprehensive loss, net (32 ) 6 (26 ) Ending balance $ (193 ) $ 40 $ (153 ) Nine Months Ended September 30, 2019 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ (117 ) $ 25 $ (92 ) Unrealized gain on securities: Unrealized holding gain arising during period 143 (31 ) 112 Other comprehensive gain, net 143 (31 ) 112 Ending balance $ 26 $ (6 ) $ 20 Nine Months Ended September 30, 2018 Before tax Deferred Net of tax (in (000’s) Amount Taxes Amount Beginning balance $ (73 ) $ 16 $ (57 ) Unrealized loss on securities: Unrealized holding loss arising during period (120 ) 24 (96 ) Other comprehensive loss, net (120 24 (96 ) Ending balance $ (193 ) $ 40 $ (153 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Schedule of summary of Company Investment Portfolio | (In 000’s) September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: U.S. Government agency securities $ 2,349 $ - $ (3 ) $ 2,346 Government Sponsored Enterprises residential mortgage-backed securities 2,057 31 (3 ) 2,085 $ 4,406 $ 31 $ (6 ) $ 4,431 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: 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 |
Schedule of debt securities classified as available-for-sale by contractual | (In 000’s) Amortized Cost Fair Value Due in one year $ - $ - Due after one year through five years - - Due after five years through ten years 2,349 2,346 Government Sponsored Enterprises residential mortgage-backed securities 2,057 2,085 $ 4,406 $ 4,431 |
Schedule of length of time individual securities | (in 000’s) 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 4 $ 749 $ (1 ) $ 747 $ (2 ) $ 1,496 $ (3 ) Government Sponsored Enterprises residential mortgage-backed securities 3 491 (3 ) - - 491 (3 ) Total temporarily impaired investment Securities 7 $ 1,240 $ (4 ) $ 747 $ (2 ) $ 1,987 $ (6 ) (in 000’s) 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 ) Government Sponsored Enterprises residential 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 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Loan Losses | |
Schedule of Composition of Net Loans | (in 000’s) September 30, 2019 December 31, 2018 Commercial and industrial $ 1,340 $ 1,545 Commercial real estate 14,293 17,038 Consumer real estate 1,083 1,226 Consumer loans other 649 734 Total loans $ 17,365 $ 20,543 |
Schedule of allowances for loan losses | (in 000's) For the Three months ended September 30, 2019 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 49 $ 185 $ 2 $ - $ - $ 236 (Credit) provision for loan losses (11 ) 3 (1 ) - (1 ) (10 ) Charge-offs - (20 ) - (1 ) - (21 ) Recoveries - 12 - 1 1 14 Net charge-offs - (8 ) - - 1 (7 ) Ending balance $ 38 $ 180 $ 1 $ - $ - $ 219 (in 000's) For the Three months ended September 30, 2018 Commercial and industrial Commercial real Estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 3 $ 150 $ 4 $ 8 $ 15 $ 180 Provision (credit) for loan losses 80 (37 ) - (8 ) (15 ) 20 Charge-offs - - - (1 ) - (1 ) Recoveries 1 1 - 1 - 3 Net recoveries 1 1 - - - 2 Ending balance $ 84 $ 114 $ 4 $ - $ - $ 202 (in 000's) For the Nine months ended September 30, 2019 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 102 $ 139 $ 4 $ - $ 33 $ 278 Provision (credit) for loan losses (48 ) 62 (12 ) (1 ) (33 ) (32 ) Charge-offs (19 ) (41 ) (12 ) (7 ) - (79 ) Recoveries 3 20 21 8 - 52 Net (charge-offs) recoveries (16 ) (21 ) 9 1 - (27 ) Ending balance $ 38 $ 180 $ 1 $ - $ - $ 219 (in 000's) For the Nine months ended September 30, 2018 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Unallocated Total Beginning balance $ 7 $ 155 $ 10 $ 8 $ - $ 180 Provision (credit) for loan losses 84 (26 ) (6 ) (7 ) 45 Charge-offs (10 ) (18 ) - (8 ) - (36 ) Recoveries 3 3 - 7 - 13 Net charge-offs (7 ) (15 ) - (1 ) - (23 ) Ending balance $ 84 $ 114 $ 4 $ - $ - $ 202 (in 000's) September 30, 2019 Commercial and industrial Commercial real Estate Consumer real estate Consumer loans Other Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 81 $ - $ - $ - $ 81 Loans collectively evaluated for impairment 38 99 1 - - 138 $ 38 $ 180 $ 1 $ - $ - $ 219 Loans, ending balance: Loans individually evaluated for impairment $ 76 $ 1,249 $ - $ - $ - $ 1,325 Loans collectively evaluated for impairment 1,264 13,044 1,083 649 - 16,040 Total $ 1,340 $ 14,293 $ 1,083 $ 649 $ - $ 17,365 (in 000's) 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 |
Schdule of past due loans | Accruing Nonaccrual Loans Loans 90 or Loans 90 or (In 000's) 30-89 Days More Days More Days Total Past Current Past Due Past Due Past Due Due Loans Loans Total Loans Commercial and industrial: Commercial $ - $ - $ - $ - $ 1,039 $ 1,039 SBA loans - - - - - - Asset-based - - 76 76 225 301 Total Commercial and industrial - - 76 76 1,264 1,340 Commercial real estate: Commercial mortgages - - 1,010 1,010 6,358 7,368 SBA loans - - 60 60 175 235 Construction - - - - - - Religious organizations 369 - 179 548 6,142 6,690 Total Commercial real estate 369 - 1,249 1,618 12,675 14,293 Consumer real estate: Home equity loans - 148 240 388 151 539 Home equity lines of credit - - - - 13 13 1-4 family residential mortgages - - - - 531 531 Total consumer real estate - 148 240 388 695 1,083 Total real estate 369 148 1,489 2,006 13,370 15,376 Consumer and other: Student loans 6 5 - 11 553 564 Other 1 - - 1 84 85 Total consumer and other 7 5 - 12 637 649 Total loans $ 376 $ 153 $ 1,565 $ 2,094 $ 15,271 $ 17,365 Accruing Nonaccrual Loans Loans 90 or Loans 90 or 30-89 Days More Days More Days Total Past Current (In 000's) Past Due Past Due Past Due 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 Total real estate - 195 1,516 1,711 16,553 18,264 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 |
Schdule of Bank loan by class according to their credit quality indicators | (In 000's) Commercial Loans September 30, 2019 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 250 $ 578 $ - $ - $ 211 $ - $ 1,039 SBA loans - - - - - - - Asset-based - 225 - - - 76 301 250 803 - - 211 76 1,340 Commercial real estate: Commercial mortgages - 4,864 1,705 - 613 186 7,368 SBA Loans - 175 - - 60 - 235 Construction - - - - - - - Religious organizations 8 4,469 2,034 - 179 - 6,690 8 9,508 3,739 - 852 186 14,293 Total commercial loans $ 258 $ 10,311 $ 3,739 $ - $ 1,063 $ 262 $ 15,633 Residential Mortgage and Consumer Loans September 30, 2019 Performing Nonperforming Total Consumer Real Estate: Home equity $ 151 $ 388 $ 539 Home equity line of credit 13 - 13 1-4 family residential mortgages 291 - 531 455 388 1,083 Consumer Other: Student loans 559 5 564 Other 85 - 85 644 5 649 Total consumer loans $ 1,099 $ 393 $ 1,732 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 |
Schedule of Impaired Loan | (In 000's) Unpaid Contractual Recorded Investment Recorded Investment Total Principal With No With Recorded Related Balance Allowance Allowance Investment Allowance Commercial and industrial: Commercial $ - $ - $ - $ - $ - SBA loans - - - - - Asset-based 76 76 - 76 - Total commercial and industrial 76 76 - 76 - Commercial real estate: Commercial mortgages 1,010 799 211 1,010 81 SBA Loans 60 60 - 60 - Religious organizations 179 179 - 179 - Total commercial real estate 1,249 1,038 211 1,249 81 Total loans $ 1,325 $ 1,114 $ 211 $ 1,325 $ 81 (In 000's) Unpaid Contractual Recorded Investment Recorded Investment Total Principal With No With Recorded Related Balance Allowance Allowance Investment Allowance Commercial and industrial: Commercial $ 213 $ - $ 213 $ 213 $ 81 SBA - - - - - Asset based 76 - 76 76 14 Total Commercial and industrial 289 - 289 289 95 Commercial real estate: Commercial mortgages 898 739 159 898 13 SBA Loans 71 71 - 71 - Religious Organizations 179 - 179 179 31 Total Commercial real estate 1,148 810 338 1,148 44 Total loans $ 1,437 $ 810 $ 627 $ 1,437 $ 139 (In 000's) Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ - $ - $ 25 $ - SBA loans - - - - Asset-based 76 - 76 - Total commercial and industrial 76 - 101 - Commercial real estate: Commercial mortgages 1,104 5 936 1 SBA loans 62 - 73 - Religious organizations 179 - 180 - Total commercial real estate 1,345 5 1,189 - Total loans $ 1,421 $ 5 $ 1,290 $ 1 (In 000's) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ 183 $ - $ 8 $ 2 SBA loans - - - - Asset-based 76 - 76 - Total commercial and industrial 259 - 84 2 Commercial real estate: Commercial mortgages 847 - 946 1 SBA loans 65 - 76 - Religious organizations 179 - 182 - Total commercial real estate 1,091 - 1,204 - Total loans $ 1,350 $ - $ 1,288 $ 3 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate Owned | |
Summary Of the Change in Other Real Estate Owned | (in 000's) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Beginning balance $ 236 $ 402 $ 392 $ 626 Additions, transfers from loans - - - - Sales - (10 ) (156 ) (229 ) 236 392 236 397 Write-ups (downs) - - - (5 ) Ending Balance $ 236 $ 392 $ 236 $ 392 |
Schedule Of Components Of Other Real Estate | (in 000's) September 30, 2019 December 31, 2018 Commercial real estate $ 161 $ 168 Residential real estate 75 224 Total $ 236 $ 392 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lease Commitments | |
Scheduled Of weighted-average remaining lease term and discount rate | Operating Weighted-average remaining term (years) 4.62 Weighted-average discount rate 3.50 % |
Scheduled Of undiscounted cash flows due related to operating and financing leases | Operating Undiscounted cash flows due: Within 1 year $ 433 After 1 year but within 2 years 438 After 2 years but within 3 years 447 After 3 years but within 4 years 455 After 4 years but within 5 years 92 After 5 years 133 Total undiscounted cash flows 1,998 Discount on cash flows (248 ) Total lease liabilities $ 1,750 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value | |
Schdule of asset measured at fair value on recurring basis | (in 000’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at September 30, 2019 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 $ 2,346 $ - $ 2,346 $ - Government Sponsored Enterprises residential mortgage-backed securities 2,085 - 2,085 - Total $ 4,431 - $ 4,431 - Loans held for sale $ 8,426 $ - $ 8,426 $ - Loans held at fair value $ 5,887 $ - $ - $ 5,887 Servicing asset $ 254 $ - $ - $ 254 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets 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 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Assets measured at fair value September 30, 2019 Fair value December 31, 2018 Fair Value Principal valuation techniques Significant observable inputs September 30, 2019 Range of inputs December 31, 2018 Range of inputs Loans held at fair value $ 5,887 $ 5,420 Discounted cash flow Constant prepayment rate 0% to 23.24% 0% to 16.5% Discount rate 7.95% to 10.37% 5.49% to 9.76% Weighted average life 1.69 yrs. to 4.42 yrs. 2.04 yrs. to 6.89 yrs. Projected default rate 2.22% to 11.59% 1.07% to 10.12% Assets measured at fair value September 30, 2019 Fair value December 31, 2018 Fair Value Principal valuation techniques Significant observable inputs September 30, 2019 Range of inputs December 31, 2018 Range of inputs Servicing asset $ 254 $ 313 Discounted cash flow Constant prepayment rate 7.24% to 21.96% 4.94% to 15.92 % Discount rate 8.71% to 26.59% 11.38% to 19.61% Weighted average life 1.52 yrs. to 4.42 yrs. 2.04 yrs. to 6.77 yrs. (in 000’s) Loans held at fair value Servicing Asset Balance at December 31, 2018 $ 5,420 $ 313 Origination of loans/transfers 1,822 17 Principal repayments/amortization (742 ) (24 ) Change in fair value of financial instruments (613 ) (52 ) Balance at September 30, 2019 $ 5,887 $ 254 |
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 $ 131 $ - $ - $ 131 Other real estate owned (“OREO”) $ 236 $ - $ - $ 236 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 (“OREO”) $ 392 $ - $ - $ 392 |
Schedule of Fair Value of Financial Instruments not Previously Disclosed | September 30, 2019 December 31, 2018 (in 000’s) Level in Carrying Fair Carrying Fair Value Hierarchy Amount Value Amount Value (Dollars in thousands) Assets: Cash and cash equivalents Level 1 $ 12,488 $ 12,488 $ 8,438 $ 8,438 Loans, net of allowance for loan losses (1) 17,146 17,196 20,265 21,979 Accrued interest receivable Level 1 167 167 153 153 Liabilities: Demand deposits Level 1 30,959 30,959 29,816 29,816 Savings deposits Level 1 10,556 10,556 10,589 10,589 Time deposits (2) 4,877 4,814 7,867 7,757 Accrued interest payable Level 1 6 6 17 17 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Disaggregation of Revenue | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands) Noninterest income: In-scope of Topic 606 Customer Service Fees $ 104 $ 107 $ 290 $ 310 ATM Fee Income 24 25 73 76 Loan Syndication Fees 65 100 65 100 Other income 48 36 2,638 84 Noninterest income (in-scope of Topic 606) 241 268 3,066 570 Noninterest income (out-of-scope of Topic 606) (6 ) 124 (652 ) 358 Total noninterest income $ 235 $ 392 $ 2,414 $ 928 |
Net (Loss) Income Per Share (De
Net (Loss) Income Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic: | ||||
Net (loss) income available to common shareholders | $ (224,072) | $ (56,879) | $ 1,135,869 | $ (406,951) |
Average common shares outstanding-basic | 826,921 | 826,921 | 826,921 | 826,921 |
Net (loss) income per share-basic | $ (0.27) | $ (0.07) | $ 1.37 | $ (0.49) |
Diluted: | ||||
Average common shares-diluted | 826,921 | 826,921 | 826,921 | 826,921 |
Net (loss) income per share-diluted | $ (0.27) | $ (0.07) | $ 1.37 | $ (0.49) |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income (Loss) (Details) | ||||
Other Comprehensive Income, Before Tax Amount | $ 8 | $ (161) | $ (117) | $ (73) |
Other Comprehensive Income, Taxes | (2) | 34 | 25 | 16 |
Other Comprehensive Income, Begining Net of Tax Amount | 6 | (127) | (92) | (57) |
Unrealized holding gain arising during period Before tax Amount | 18 | (32) | 143 | (120) |
Unrealized holding gain arising during period, taxes | (4) | 6 | (31) | 24 |
Unrealized holding gain arising during period, net of tax amount | 14 | (26) | 112 | (96) |
Other comprehensive loss, net, before tax amount | 18 | (32) | 143 | (120) |
Other comprehensive income loss, net, tax (expense) benefit | (4) | 6 | (31) | 24 |
Other comprehensive income loss, net, net after tax amount | 14 | (26) | 112 | (96) |
Other Comprehensive Income, Before Tax Amount Ending Before tax amount | 26 | (193) | 26 | (193) |
Other Comprehensive Income, Ending Taxes | (6) | 40 | (6) | 40 |
Other Comprehensive Income, Ending Net of Tax Amount | $ 20 | $ (153) | $ 20 | $ (153) |
New Authoritative Accounting _2
New Authoritative Accounting Guidance (Details Narrative) | Sep. 30, 2019 USD ($) |
Operating Lease Right Of UseAsset | $ 1,824,729 |
Operating Lease Liability | 1,931,239 |
Retained Earnings Accumulated Deficit | $ 49,460 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
U.S. Government agency securities [Member] | ||
Available-for-sale securities, Gross unrealized gains | $ 0 | $ 0 |
Available-for-sale securities, Gross unrealized losses | 3 | 72 |
Available-for-sale securities, Amortized cost | 2,349 | 2,349 |
Available-for-sale securities, Fair Value | 2,346 | 2,277 |
Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
Available-for-sale securities, Gross unrealized gains | (31) | (9) |
Available-for-sale securities, Gross unrealized losses | 3 | 54 |
Available-for-sale securities, Amortized cost | 2,057 | 2,349 |
Available-for-sale securities, Fair Value | 2,085 | 2,304 |
Other Debt Obligations [Member] | ||
Available-for-sale securities, Gross unrealized gains | (31) | (9) |
Available-for-sale securities, Gross unrealized losses | 6 | 126 |
Available-for-sale securities, Amortized cost | 4,406 | 4,698 |
Available-for-sale securities, Fair Value | $ 4,431 | $ 4,581 |
Investment Securities (Details
Investment Securities (Details 1) $ in Thousands | Dec. 31, 2018 USD ($) |
Amortized Cost [Member] | |
Due after one year through five years | $ 0 |
Due after five years through ten years | 2,349 |
Due in one year or less | 0 |
Government-sponsored enterprises residential mortgage-backed securities | 2,057 |
Total | 4,406 |
Fair Value, Recurring [Member] | |
Due after five years through ten years | 2,346 |
Due after one year through five years | 0 |
Due in one year or less | 0 |
Government-sponsored enterprises residential mortgage-backed securities | 2,085 |
Total | $ 4,431 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities, fair value | $ 4,431,700 | $ 4,580,610 |
U.S. Government agency securities [Member] | ||
Available-for-sale securities, greater than 12 months, fair value | 747,000 | 2,277,000 |
Available-for-sale securities, greater than 12 months, gross unrealized losses | 2,000 | 72,000 |
Available-for-sale securities, less than 12 months, fair value | 749,000 | 0 |
Available-for-sale securities, less than 12 months, gross unrealized losses | 1,000 | 0 |
Available-for-sale securities, fair value | 1,496,000 | 2,277,000 |
Available-for-sale securities, gross unrealized losses | $ 3,000 | $ 72,000 |
Number of Securities | 4 | 7 |
Other Debt Obligations [Member] | ||
Available-for-sale securities, greater than 12 months, fair value | $ 747,000 | $ 3,576,000 |
Available-for-sale securities, greater than 12 months, gross unrealized losses | 2,000 | 116,000 |
Available-for-sale securities, less than 12 months, fair value | 1,240,000 | 718,000 |
Available-for-sale securities, less than 12 months, gross unrealized losses | 4,000 | 10,000 |
Available-for-sale securities, fair value | 1,987,000 | 4,294,000 |
Available-for-sale securities, gross unrealized losses | $ 6,000 | $ 126,000 |
Number of Securities | 7 | 21 |
Mortgages-backed Securities [Member] | ||
Available-for-sale securities, greater than 12 months, fair value | $ 0 | $ 1,299,000 |
Available-for-sale securities, greater than 12 months, gross unrealized losses | 0 | 44,000 |
Available-for-sale securities, less than 12 months, fair value | 491,000 | 718,000 |
Available-for-sale securities, less than 12 months, gross unrealized losses | 3,000 | 10,000 |
Available-for-sale securities, fair value | 491,000 | 2,017,000 |
Available-for-sale securities, gross unrealized losses | $ 3,000 | $ 54,000 |
Number of Securities | 3 | 14 |
Investment Securities (Detail_3
Investment Securities (Details Narrative) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Investment securities with a carrying value | $ 774,000 | $ 3,668,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commercial And Industrials [Member] | ||
Loans, net | $ 1,340 | $ 1,545 |
Commercial Real Estate [Member] | ||
Loans, net | 14,293 | 17,038 |
Consumer Real Estate [Member] | ||
Loans, net | 1,083 | 1,226 |
Consumer And Other [Member] | ||
Loans, net | 649 | 734 |
Fair Value, Recurring [Member] | ||
Loans, net | $ 17,365 | $ 20,543 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for loan lossses, Beginning balance | $ 236 | $ 180 | $ 278 | $ 180 |
Provision (credit) for loan losses | (10) | 20 | (32) | 45 |
Charge-offs | (21) | (1) | (79) | (36) |
Recoveries | 14 | 3 | 52 | 13 |
Net (charge-offs) recoveries | (7) | 2 | (27) | (23) |
Allowance for loan lossses, Ending balance | 219 | 202 | 219 | 202 |
Consumer Real Estate [Member] | ||||
Allowance for loan lossses, Beginning balance | 2 | 4 | 4 | 10 |
Provision (credit) for loan losses | (1) | 0 | (12) | (6) |
Charge-offs | 0 | 0 | (12) | 0 |
Recoveries | 0 | 0 | 21 | 0 |
Net (charge-offs) recoveries | 0 | 0 | 9 | 0 |
Allowance for loan lossses, Ending balance | 1 | 4 | 1 | 4 |
Consumer loans other [Member] | ||||
Allowance for loan lossses, Beginning balance | 0 | 8 | 0 | 8 |
Provision (credit) for loan losses | 0 | (8) | (1) | (7) |
Charge-offs | (1) | (1) | (7) | (8) |
Recoveries | 1 | 1 | 8 | 7 |
Net (charge-offs) recoveries | 0 | 0 | 1 | (1) |
Allowance for loan lossses, Ending balance | 0 | 0 | 0 | 0 |
Commercial And Industrial [Member] | ||||
Allowance for loan lossses, Beginning balance | 49 | 3 | 102 | 7 |
Provision (credit) for loan losses | (11) | 80 | (48) | 84 |
Charge-offs | 0 | 0 | (19) | (10) |
Recoveries | 0 | 1 | 3 | 3 |
Net (charge-offs) recoveries | 0 | 1 | (16) | (7) |
Allowance for loan lossses, Ending balance | 38 | 84 | 38 | 84 |
Commercial Real Estates [Member] | ||||
Allowance for loan lossses, Beginning balance | 185 | 150 | 139 | 155 |
Provision (credit) for loan losses | 3 | (37) | 62 | (26) |
Charge-offs | (20) | 0 | (41) | (18) |
Recoveries | 12 | 1 | 20 | 3 |
Net (charge-offs) recoveries | (8) | 1 | (21) | (15) |
Allowance for loan lossses, Ending balance | 180 | 114 | 180 | 114 |
Unallocated [Member] | ||||
Allowance for loan lossses, Beginning balance | 0 | 15 | 33 | 0 |
Provision (credit) for loan losses | (1) | (15) | (33) | |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 0 | 0 | 0 |
Net (charge-offs) recoveries | 1 | 0 | 0 | 0 |
Allowance for loan lossses, Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 2) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans individually evaluated for impairment | $ 81,000 | $ 139,000 |
Loans collectively evaluated for impairment | 138,000 | 139,000 |
Total Loans | 219,000 | 278,000 |
Loans individually evaluated for impairment ending | 1,325,000 | 1,437,000 |
Loans collectively evaluated for impairment ending | 16,040,000 | 19,106,000 |
Total Loans ending balance | 17,365,000 | 20,543,000 |
Loans individually evaluated for impairment | 218,910 | 278,095 |
Commercial real estate loan [Member] | ||
Total Loans | 180,000 | 139,000 |
Loans individually evaluated for impairment ending | 1,249,000 | 1,148,000 |
Loans collectively evaluated for impairment ending | 13,044,000 | 15,890,000 |
Total Loans ending balance | 14,293,000 | 17,038,000 |
Loans individually evaluated for impairment | 81,000 | 44,000 |
Loans collectively evaluated for impairment | 99,000 | 95,000 |
Unallocated Loans [Member] | ||
Loans collectively evaluated for impairment | 0 | 33,000 |
Total Loans | 0 | 33,000 |
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 |
Consumer Real Estate Loan [Member] | ||
Loans collectively evaluated for impairment | 1,000 | 4,000 |
Total Loans | 1,000 | 4,000 |
Loans individually evaluated for impairment ending | 0 | 0 |
Loans collectively evaluated for impairment ending | 1,083,000 | 1,226,000 |
Total Loans ending balance | 1,083,000 | 1,226,000 |
Loans individually evaluated for impairment | 0 | 0 |
Consumer loans other loan [Member] | ||
Loans collectively evaluated for impairment | 0 | 0 |
Total Loans | 0 | 0 |
Loans individually evaluated for impairment ending | 0 | 0 |
Loans collectively evaluated for impairment ending | 649,000 | 734,000 |
Total Loans ending balance | 649,000 | 734,000 |
Loans individually evaluated for impairment | 0 | 0 |
Commercial and industrial loans [Member] | ||
Loans individually evaluated for impairment | 0 | 95,000 |
Loans collectively evaluated for impairment | 38,000 | 7,000 |
Total Loans | 38,000 | 102,000 |
Loans individually evaluated for impairment ending | 76,000 | 289,000 |
Loans collectively evaluated for impairment ending | 1,264,000 | 1,256,000 |
Total Loans ending balance | $ 1,340,000 | $ 1,545,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 3) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans, net | $ 17,365 | $ 20,543 |
Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 153,000 | 252,000 |
Nonaccrual [Member] | ||
Loans, net | 1,565,000 | 1,661,000 |
Total Past Due Loans [Member] | ||
Loans, net | 2,094,000 | 1,928,000 |
Current Loans [Member] | ||
Loans, net | 15,271,000 | 18,615,000 |
Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 376,000 | 15,000 |
Commercial Real Estate [Member] | ||
Loans, net | 14,293,000 | 17,038,000 |
Commercial Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 45,000 |
Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 1,249,000 | 1,150,000 |
Commercial Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 1,618,000 | 1,195,000 |
Commercial Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 12,675,000 | 15,843,000 |
Commercial Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 369,000 | 0 |
Consumer Real Estate [Member] | ||
Loans, net | 1,083,000 | 1,226,000 |
Consumer Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 148,000 | 150,000 |
Consumer Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 240,000 | 366,000 |
Consumer Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 388,000 | 516,000 |
Consumer Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 695,000 | 710,000 |
Consumer Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | ||
Loans, net | 539,000 | 628,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 148,000 | 150,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Nonaccrual [Member] | ||
Loans, net | 240,000 | 281,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Total Past Due Loans [Member] | ||
Loans, net | 388,000 | 431,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Current Loans [Member] | ||
Loans, net | 151,000 | 197,000 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||
Loans, net | 13,000 | 15,000 |
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] | 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] | Current Loans [Member] | ||
Loans, net | 13,000 | 15,000 |
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] | 1-4 Family Residential Mortgages [Member] | ||
Loans, net | 531,000 | 583,000 |
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 | 0 | 85,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Total Past Due Loans [Member] | ||
Loans, net | 0 | 85,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Current Loans [Member] | ||
Loans, net | 531,000 | 498,000 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | ||
Loans, net | 649,000 | 734,000 |
Consumer And Other [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 5,000 | 57,000 |
Consumer And Other [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | Total Past Due Loans [Member] | ||
Loans, net | 12,000 | 72,000 |
Consumer And Other [Member] | Current Loans [Member] | ||
Loans, net | 637,000 | 662,000 |
Consumer And Other [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 7,000 | 15,000 |
Consumer And Other [Member] | Student Loans [Member] | ||
Loans, net | 564,000 | 622,000 |
Consumer And Other [Member] | Student Loans [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 5,000 | 57,000 |
Consumer And Other [Member] | Student Loans [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | Student Loans [Member] | Total Past Due Loans [Member] | ||
Loans, net | 11,000 | 71,000 |
Consumer And Other [Member] | Student Loans [Member] | Current Loans [Member] | ||
Loans, net | 553,000 | 551,000 |
Consumer And Other [Member] | Student Loans [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 6,000 | 14,000 |
Consumer And Other [Member] | Other [Member] | ||
Loans, net | 85,000 | 112,000 |
Consumer And Other [Member] | Other [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | Other [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Consumer And Other [Member] | Other [Member] | Total Past Due Loans [Member] | ||
Loans, net | 1,000 | 1,000 |
Consumer And Other [Member] | Other [Member] | Current Loans [Member] | ||
Loans, net | 84,000 | 111,000 |
Consumer And Other [Member] | Other [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 1,000 | 1,000 |
Total Real Estate [Member] | ||
Loans, net | 17,365,000 | 20,543,000 |
Total Real Estate Accruing Loans 90 or More Days [Member] | ||
Loans, net | 148,000 | 195,000 |
Total Real Estate Non Accrual Loans 90 or More Days [Member] | ||
Loans, net | 1,489,000 | 1,516,000 |
Total Real Estate Past Due Laons [Member] | ||
Loans, net | 2,006,000 | 1,711,000 |
Total Real Estate Current Loans [Member] | ||
Loans, net | 13,370,000 | 16,553,000 |
Total Real Estate Loans [Member] | ||
Loans, net | 15,376,000 | 18,264,000 |
Commercial And Industrials [Member] | ||
Loans, net | 1,340,000 | 1,545,000 |
Commercial And Industrials [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial And Industrials [Member] | Nonaccrual [Member] | ||
Loans, net | 76,000 | 94,000 |
Commercial And Industrials [Member] | Total Past Due Loans [Member] | ||
Loans, net | 76,000 | 94,000 |
Commercial And Industrials [Member] | Current Loans [Member] | ||
Loans, net | 1,264,000 | 1,451,000 |
Commercial And Industrials [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Asset-Based [Member] | Commercial And Industrials [Member] | ||
Loans, net | 301,000 | 472,000 |
Asset-Based [Member] | Commercial And Industrials [Member] | Totals [Member] | ||
Loans, net | 301,000 | 472,000 |
Asset-Based [Member] | Commercial And Industrials [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Asset-Based [Member] | Commercial And Industrials [Member] | Nonaccrual [Member] | ||
Loans, net | 76,000 | 76,000 |
Asset-Based [Member] | Commercial And Industrials [Member] | Total Past Due Loans [Member] | ||
Loans, net | 76,000 | 76,000 |
Asset-Based [Member] | Commercial And Industrials [Member] | Current Loans [Member] | ||
Loans, net | 225,000 | 396,000 |
Asset-Based [Member] | Commercial And Industrials [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial Mortgages [Member] | Commercial Real Estate [Member] | ||
Loans, net | 7,368,000 | 9,532,000 |
Commercial Mortgages [Member] | Commercial Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 45,000 |
Commercial Mortgages [Member] | Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 1,010,000 | 902,000 |
Commercial Mortgages [Member] | Commercial Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 1,010,000 | 947,000 |
Commercial Mortgages [Member] | Commercial Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 6,358,000 | 8,585,000 |
Commercial Mortgages [Member] | Commercial Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
SBA Loans [Member] | Commercial Real Estate [Member] | ||
Loans, net | 235,000 | 248,000 |
SBA Loans [Member] | Commercial Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
SBA Loans [Member] | Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 60,000 | 69,000 |
SBA Loans [Member] | Commercial Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 60,000 | 69,000 |
SBA Loans [Member] | Commercial Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 175,000 | 179,000 |
SBA Loans [Member] | Commercial Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
SBA Loans [Member] | Commercial And Industrials [Member] | ||
Loans, net | 0 | 18,000 |
SBA Loans [Member] | Commercial And Industrials [Member] | Loans 30-89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
SBA Loans [Member] | Commercial And Industrials [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
SBA Loans [Member] | Commercial And Industrials [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 18,000 |
SBA Loans [Member] | Commercial And Industrials [Member] | Total Past Due Loans [Member] | ||
Loans, net | 0 | 18,000 |
SBA Loans [Member] | Commercial And Industrials [Member] | Current Loans [Member] | ||
Loans, net | 0 | 0 |
Construction Portfolio [Member] | Commercial Real Estate [Member] | ||
Loans, net | 0 | 0 |
Construction Portfolio [Member] | Commercial Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Construction Portfolio [Member] | Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Construction Portfolio [Member] | Commercial Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 0 | 0 |
Construction Portfolio [Member] | Commercial Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 0 | 0 |
Construction Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Religious Organizations [Member] | Commercial Real Estate [Member] | ||
Loans, net | 6,690,000 | 7,257,000 |
Religious Organizations [Member] | Commercial Real Estate [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Religious Organizations [Member] | Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Loans, net | 179,000 | 179,000 |
Religious Organizations [Member] | Commercial Real Estate [Member] | Total Past Due Loans [Member] | ||
Loans, net | 548,000 | 179,000 |
Religious Organizations [Member] | Commercial Real Estate [Member] | Current Loans [Member] | ||
Loans, net | 6,142,000 | 7,078,000 |
Religious Organizations [Member] | Commercial Real Estate [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 369,000 | 0 |
Commercial [Member] | Commercial And Industrials [Member] | ||
Loans, net | 1,039,000 | 1,055,000 |
Commercial [Member] | Commercial And Industrials [Member] | Accruing Loans 90 or More Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Commercial And Industrials [Member] | Nonaccrual [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Commercial And Industrials [Member] | Total Past Due Loans [Member] | ||
Loans, net | 0 | 0 |
Commercial [Member] | Commercial And Industrials [Member] | Current Loans [Member] | ||
Loans, net | 1,039,000 | 1,055,000 |
Commercial [Member] | Commercial And Industrials [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | ||
Loans, net | 0 | 0 |
Total Loan 30-89 Days[Member] | ||
Loans, net | $ 369,000 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total of Commercial and industrial | $ 1,340 | $ 1,545 |
Commercial Real Estate [Member] | ||
Total | 14,293 | 17,038 |
Construction [Member] | ||
Total | 0 | 0 |
SBA Loans [Member] | ||
Total | 0 | 18 |
Asset-Based [Member] | ||
Total | 301 | 472 |
Commercial Real Estate Commercial Mortgage [Member] | ||
Total | 7,368 | 9,532 |
SBA Loans 1 [Member] | ||
Total | 235 | 248 |
Religious Organizations [Member] | ||
Total | 6,690 | 7,258 |
Commercial [Member] | ||
Total | 1,039 | 1,055 |
Total[Member] | ||
Total commercial loans | 15,633 | 18,583 |
Good / Excellentl [Member] | ||
Total commercial loans | 258 | 274 |
Good / Excellentl [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Good / Excellentl [Member] | Commercial And Industrial Of Commercial [Member] | ||
Total | 250 | 250 |
Loans receivable | 250 | 250 |
Good / Excellentl [Member] | Commercial And Industrial Of SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Good / Excellentl [Member] | Commercial Real Estate Commercial Mortgage [Member] | ||
Loans receivable | 0 | 0 |
Good / Excellentl [Member] | Commercial Real Estate SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Total | 8 | 24 |
Good / Excellentl [Member] | Commercial Real Estate Religious Organizations [Member] | ||
Loans receivable | 8 | 24 |
Good / Excellentl [Member] | Commercial And Industrial Of Asset Based [Member] | ||
Loans receivable | 0 | 0 |
Satisfactory [Member] | ||
Total commercial loans | 10,311 | 11,898 |
Satisfactory [Member] | Construction [Member] | ||
Total | 0 | 0 |
Satisfactory [Member] | Commercial And Industrial Of Commercial [Member] | ||
Total | 803 | 864 |
Loans receivable | 578 | 592 |
Satisfactory [Member] | Commercial And Industrial Of SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Satisfactory [Member] | Commercial Real Estate Commercial Mortgage [Member] | ||
Loans receivable | 4,864 | 5,814 |
Satisfactory [Member] | Commercial Real Estate SBA Loans [Member] | ||
Loans receivable | 175 | 179 |
Satisfactory [Member] | Commercial Real Estate Religious Organizations [Member] | ||
Loans receivable | 4,469 | 5,041 |
Total | 9,508 | 11,034 |
Satisfactory [Member] | Commercial And Industrial Of Asset Based [Member] | ||
Loans receivable | 225 | 272 |
Pass [Member] | ||
Total commercial loans | 3,739 | 4,896 |
Pass [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Pass [Member] | Commercial And Industrial Of Commercial [Member] | ||
Loans receivable | 0 | 0 |
Pass [Member] | Commercial And Industrial Of SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Total | 0 | 124 |
Pass [Member] | Commercial Real Estate Commercial Mortgage [Member] | ||
Loans receivable | 1,705 | 2,759 |
Pass [Member] | Commercial Real Estate SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Pass [Member] | Commercial Real Estate Religious Organizations [Member] | ||
Loans receivable | 2,034 | 2,013 |
Total | 3,739 | 4,772 |
Pass [Member] | Commercial And Industrial Of Asset Based [Member] | ||
Loans receivable | 0 | 124 |
Special Mention [Member] | ||
Loans receivable | 0 | 52 |
Special Mention [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Commercial And Industrial Of SBA Loans Member [Member] | ||
Loans receivable | 0 | 0 |
Total | 0 | 0 |
Special Mention [Member] | Commercial Real Estate Commercial Mortgage [Member] | ||
Loans receivable | 0 | 52 |
Special Mention [Member] | Commercial Real Estate SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Commercial Real Estate Religious Organizations [Member] | ||
Total | 0 | 52 |
Loans receivable | 0 | 0 |
Special Mention [Member] | Commercial And Industrial Of Commerciall [Member] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Commercial And Industrial Of Asset Based [Member] | ||
Loans receivable | 0 | 0 |
Substandard [Member] | ||
Total commercial loans | 1,063 | 1,183 |
Substandard [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Total | 852 | 952 |
Substandard [Member] | Commercial And Industrial Of Commercial [Member] | ||
Loans receivable | 211 | 213 |
Substandard [Member] | Commercial And Industrial Of SBA Loans Member [Member] | ||
Loans receivable | 0 | 0 |
Total | 211 | 231 |
Substandard [Member] | Commercial Real Estate Commercial Mortgage [Member] | ||
Loans receivable | 613 | 703 |
Substandard [Member] | Commercial Real Estate Religious Organizations [Member] | ||
Loans receivable | 179 | 180 |
Substandard [Member] | Commercial And Industrial Of Asset Based [Member] | ||
Loans receivable | 0 | 18 |
Substandard [Member] | Commercial Real EState SBA Loans [Member] | ||
Loans receivable | 60 | 69 |
Doubtful [Member] | ||
Total commercial loans | 262 | 280 |
Doubtful [Member] | Commercial Real Estate Construction [Member] | ||
Loans receivable | 0 | 0 |
Total | 186 | 204 |
Doubtful [Member] | Commercial And Industrial Of Commercial [Member] | ||
Loans receivable | 0 | 0 |
Total | 76 | 76 |
Doubtful [Member] | Commercial And Industrial Of SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Commercial Real Estate Commercial Mortgage [Member] | ||
Loans receivable | 186 | 204 |
Doubtful [Member] | Commercial Real Estate SBA Loans [Member] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Commercial Real Estate Religious Organizations [Member] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Commercial And Industrial Of Asset Based [Member] | ||
Loans receivable | $ 76 | $ 76 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Consumer Other [Member] | ||
Acquired with deteriorated credit quality | $ 649 | $ 734 |
Total Consumer Loans [Member] | ||
Acquired with deteriorated credit quality | 1,732 | 1,960 |
Performing [Member] | ||
Acquired with deteriorated credit quality | 1,099 | 1,387 |
Performing [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 644 | 677 |
Nonperforming Financial Instruments [Member] | ||
Acquired with deteriorated credit quality | 393 | 573 |
Nonperforming Financial Instruments [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 5 | 57 |
Student Loans [Member] | NonPerforming Financial Instruments [Member] | Conusmer Other [Member] | ||
Acquired with deteriorated credit quality | 5 | 57 |
Other [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 85 | 112 |
Other [Member] | Performing [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 85 | 112 |
Other [Member] | Nonperforming Financial Instruments [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 0 | 0 |
Student Loan [Member] | Performing [Member] | Consumer Other [Member] | ||
Acquired with deteriorated credit quality | 559 | 565 |
Consumer Real Estate [Member] | Home Equity Loans [Member] | ||
Acquired with deteriorated credit quality | 539 | 628 |
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||
Acquired with deteriorated credit quality | 13 | 15 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Acquired with deteriorated credit quality | 531 | 583 |
Consumer And Other [Member] | Student Loans [Member] | ||
Acquired with deteriorated credit quality | 564 | 622 |
Consumer Real Estate [Member] | ||
Acquired with deteriorated credit quality | 1,083 | 1,226 |
Consumer Real Estate [Member] | Performing [Member] | ||
Acquired with deteriorated credit quality | 455 | 710 |
Consumer Real Estate [Member] | Performing [Member] | Home Equity [Member] | ||
Acquired with deteriorated credit quality | 151 | 197 |
Consumer Real Estate [Member] | Nonperforming Financial Instruments [Member] | ||
Acquired with deteriorated credit quality | 388 | 516 |
Consumer Real Estate [Member] | Nonperforming Financial Instruments [Member] | Home Equity [Member] | ||
Acquired with deteriorated credit quality | 388 | 431 |
Home equity line of credit [Member] | Performing Financial Instruments [Member] | Consumer Real Estates [Member] | ||
Acquired with deteriorated credit quality | 13 | 15 |
Home equity line of credit [Member] | Nonperforming Financial Instruments [Member] | ||
Acquired with deteriorated credit quality | 0 | 0 |
Residential 1 - 4 Family Residential Mortgage [Member] | Performing Financial Instruments [Member] | ||
Acquired with deteriorated credit quality | 291 | 498 |
Residential 1 - 4 Family residential mortgages [Member] | Nonperforming Financial Instruments [Member] | Concumer Real Estate [Member] | ||
Acquired with deteriorated credit quality | $ 0 | $ 85 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details 6) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total Recorded Investment [Member] | |||||
Loans, Impaired | $ 1,325,000 | $ 1,437,000 | |||
Total Recorded Investment [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 1,249,000 | 1,148,000 | |||
Total Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 289,000 | |||
Related Allowance [Member] | |||||
Loans, Impaired | 81,000 | 139,000 | |||
Related Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 81,000 | 44,000 | |||
Related Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 95,000 | |||
Recorded Investment With No Allowance [Member] | |||||
Loans, Impaired | 1,114,000 | 810,000 | |||
Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 1,038,000 | 810,000 | |||
Recorded Investment With No Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 0 | |||
Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | $ 0 | $ 0 | 0 | $ 0 | |
Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 2,000 | |||
Recorded Investment With Allowance [Member] | |||||
Loans, Impaired | 211,000 | 627,000 | |||
Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 211,000 | 338,000 | |||
Recorded Investment With Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 289,000 | |||
Unpaid Contractual Principal Balance [Member] | |||||
Loans, Impaired | 1,325,000 | 1,437,000 | |||
Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 1,249,000 | 1,148,000 | |||
Unpaid Contractual Principal Balance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 289,000 | |||
Asset-Based [Member] | Total Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 76,000 | |||
Asset-Based [Member] | Related Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 14,000 | |||
Asset-Based [Member] | Recorded Investment With No Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 0 | |||
Asset-Based [Member] | Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | ||||
Asset-Based [Member] | Recorded Investment With Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 76,000 | |||
Asset-Based [Member] | Unpaid Contractual Principal Balance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 76,000 | |||
SBA Loans [Member] | Total Recorded Investment [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 60,000 | 71,000 | |||
SBA Loans [Member] | Total Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | |||
SBA Loans [Member] | Related Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 0 | 0 | |||
SBA Loans [Member] | Related Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | |||
SBA Loans [Member] | Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 60,000 | 71,000 | |||
SBA Loans [Member] | Recorded Investment With No Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | |||
SBA Loans [Member] | Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 0 | 10,000 | |||
SBA Loans [Member] | Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | ||||
SBA Loans [Member] | Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 0 | 0 | |||
SBA Loans [Member] | Recorded Investment With Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | |||
SBA Loans [Member] | Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 60,000 | 71,000 | |||
SBA Loans [Member] | Unpaid Contractual Principal Balance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | |||
Religious Organizations [Member] | Total Recorded Investment [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 179,000 | 179,000 | |||
Religious Organizations [Member] | Related Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 0 | 31,000 | |||
Religious Organizations [Member] | Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 179,000 | 0 | |||
Religious Organizations [Member] | Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 0 | 0 | 0 | 0 | |
Religious Organizations [Member] | Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 0 | 179,000 | |||
Religious Organizations [Member] | Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 179,000 | 179,000 | |||
Commercial [Member] | Total Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 213,000 | |||
Commercial [Member] | Related Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 81,000 | |||
Commercial [Member] | Recorded Investment With No Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | |||
Commercial [Member] | Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | 0 | 2,000 | |
Commercial [Member] | Recorded Investment With Allowance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 213,000 | |||
Commercial [Member] | Unpaid Contractual Principal Balance [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 213,000 | |||
Commercial Mortgages [Member] | Total Recorded Investment [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 1,010,000 | 898,000 | |||
Commercial Mortgages [Member] | Related Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 81,000 | 13,000 | |||
Commercial Mortgages [Member] | Recorded Investment With No Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 799,000 | 739,000 | |||
Commercial Mortgages [Member] | Interest recognized on impaired loans [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | $ 5,000 | $ 1,000 | 0 | $ 1,000 | |
Commercial Mortgages [Member] | Recorded Investment With Allowance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | 211,000 | 159,000 | |||
Commercial Mortgages [Member] | Unpaid Contractual Principal Balance [Member] | Commercial Real Estate [Member] | |||||
Loans, Impaired | $ 1,010,000 | $ 898,000 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Details 7) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | $ 0 | $ 2,000 | |||
Average Recorded Investment [Member] | |||||
Loans, Impaired | $ 1,421,000 | $ 1,290,000 | 1,350,000 | 1,288,000 | |
Average Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 101,000 | 259,000 | 84,000 | |
Commercial [Member] | Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 0 | 0 | 2,000 | |
Commercial [Member] | Average Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | 25,000 | 183,000 | 8,000 | |
Asset-Based [Member] | Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | ||||
Asset-Based [Member] | Average Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 76,000 | 76,000 | 76,000 | 76,000 | |
SBA Loans [Member] | Interest recognized on impaired loans [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 0 | ||||
SBA Loans [Member] | Average Recorded Investment [Member] | Commercial And Industrials [Member] | |||||
Loans, Impaired | 5,000 | 5,000 | 0 | 3,000 | |
Commercial Real Estate [Member] | Interest recognized on impaired loans [Member] | |||||
Loans, Impaired | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Average Recorded Investment [Member] | |||||
Loans, Impaired | 1,345,000 | 1,189,000 | 1,091,000 | 1,204,000 | |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Interest recognized on impaired loans [Member] | |||||
Loans, Impaired | 5,000 | 1,000 | 0 | 1,000 | |
Commercial Real Estate [Member] | Commercial Mortgages [Member] | Average Recorded Investment [Member] | |||||
Loans, Impaired | 1,104,000 | 936,000 | 847,000 | 946,000 | |
Commercial Real Estate [Member] | Religious Organizations [Member] | Interest recognized on impaired loans [Member] | |||||
Loans, Impaired | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Religious Organizations [Member] | Average Recorded Investment [Member] | |||||
Loans, Impaired | 179,000 | 180,000 | 179,000 | 182,000 | |
Commercial Real Estate [Member] | SBA Loans [Member] | Interest recognized on impaired loans [Member] | |||||
Loans, Impaired | 0 | $ 10,000 | |||
Commercial Real Estate [Member] | SBA Loans [Member] | Average Recorded Investment [Member] | |||||
Loans, Impaired | $ 62,000 | $ 73,000 | $ 65,000 | $ 76,000 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Real Estate Owned (Details) | ||||
Beginning Balance | $ 236 | $ 402 | $ 392 | $ 626 |
Additions, transfers from loans | 0 | 0 | 0 | 0 |
Sales | 0 | (10) | (156) | (229) |
Other real estate subtotal | 236 | 392 | 236 | 397 |
Write-downs | 0 | 0 | 0 | (5) |
Real Estates | $ 236 | $ 392 | $ 236 | $ 392 |
Other Real Estate Owned (Deta_2
Other Real Estate Owned (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Total | $ 236 | $ 236 | $ 392 | $ 402 | $ 626 |
Commercial Real Estate [Member] | |||||
Total | 161 | 168 | |||
Residential Real Estate [Member] | |||||
Total | $ 75 | $ 224 |
Lease Commitments (Details)
Lease Commitments (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Lease Commitments (Details) | |
Weighted average remaining term years | 4 years 7 months 13 days |
Weighted average discount rate | 3.50% |
Lease Commitments (Details 1)
Lease Commitments (Details 1) $ in Thousands | Sep. 30, 2019 USD ($) |
Lease Commitments (Details) | |
Within 1 year | $ 433 |
After 1 year but within 2 years | 438 |
After 2 years but within 3 years | 447 |
After 3 years but within 4 years | 455 |
After 4 years but within 5 years | 92 |
After 5 years | 133 |
Total undiscounted cash flows | 1,998 |
Discount on cash flows | (248) |
Total lease liabilities | $ 1,750 |
Lease Commitments (Details Narr
Lease Commitments (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lease Commitments (Details) | ||||
Operating rent expenses | $ 134,000 | $ 119,000 | $ 385,000 | $ 354,000 |
Fair Value (Details )
Fair Value (Details ) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans held at fair value | $ 5,886,789 | $ 5,420,004 |
Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
Securities, available-for-sale | 2,085,000 | 2,304,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Loans held at fair value | 17,196,000 | 21,979,000 |
Fair Value, Recurring [Member] | ||
Securities, available-for-sale | 4,431,000 | 4,581,000 |
Loans held for sale | 8,426,000 | 10,073,000 |
Loans held at fair value | 5,887,000 | 5,420,000 |
Servicing asset | 254,000 | 313,000 |
Fair Value, Recurring [Member] | U.S. Government agency securities [Member] | ||
Securities, available-for-sale | 2,346,000 | 2,277,000 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Loans held for sale | 0 | 0 |
Loans held at fair value | 0 | 0 |
Servicing asset | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government agency securities [Member] | ||
Securities, available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
Securities, available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities, available-for-sale | 4,431,000 | 4,581,000 |
Loans held for sale | 8,426,000 | 10,073,000 |
Loans held at fair value | 0 | 0 |
Servicing asset | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency securities [Member] | ||
Securities, available-for-sale | 2,346,000 | 2,277,000 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
Securities, available-for-sale | 2,085,000 | 2,304,000 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities, available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held at fair value | 5,887,000 | 5,420 |
Servicing asset | 254,000 | 313,000 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Government agency securities [Member] | ||
Securities, available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Government Sponsored Enterprises residential mortgage-backed securities [Member] | ||
Securities, available-for-sale | $ 0 | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Loans Held At Fair Value [Member] | ||
Balance at end of year | $ 5,887 | $ 5,420 |
Loans Held At Fair Value [Member] | Maxiimum [Member] | ||
Constant repayment rate | 23.24% | 16.50% |
Discount rate | 10.37% | 9.76% |
Weighted average life | 4 years 5 months 1 day | 6 years 10 months 20 days |
Project default rate | 11.59% | 10.12% |
Minimum [Member] | Loans Held At Fair Value [Member] | ||
Constant repayment rate | 0% | 0% |
Discount rate | 7.95% | 5.49% |
Weighted average life | 1 year 8 months 8 days | 2 years 14 days |
Project default rate | 2.22% | 1.07% |
Fair Value, Inputs, Level 3 [Member] | Servicing Assets [Member] | ||
Balance at end of year | $ 254 | $ 313 |
Fair Value, Inputs, Level 3 [Member] | Servicing Assets [Member] | ||
Balance at end of year | $ 254 | $ 313 |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Servicing Assets [Member] | ||
Constant repayment rate | 7.24% | 4.94% |
Discount rate | 8.71% | 11.38% |
Weighted average life | 1 year 6 months 7 days | 2 years 14 days |
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Servicing Assets [Member] | ||
Constant repayment rate | 21.96% | 15.92% |
Discount rate | 26.59% | 19.61% |
Weighted average life | 4 years 5 months 1 day | 6 years 9 months 7 days |
Fair Value (Details 2)
Fair Value (Details 2) $ in Thousands | 9 Months Ended |
Sep. 30, 2019 USD ($) | |
Loans Held At Fair Value [Member] | |
Balance at beginning of year | $ 5,420 |
Origination of loans | 1,822 |
Principal repayments | (742) |
Change in fair value | (613) |
Balance at end of year | 5,887 |
Fair Value, Inputs, Level 3 [Member] | Servicing Assets [Member] | |
Balance at beginning of year | 313 |
Origination of loans | 17 |
Principal repayments | (24) |
Change in fair value | (52) |
Balance at end of year | $ 254 |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Other real estate owned | $ 236 | $ 236 | $ 392 | $ 402 | $ 626 |
Fair Value, Recurring [Member] | |||||
Impairment loans | 131 | 324 | |||
Other real estate owned | 236 | 392 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Impairment loans | 0 | 0 | |||
Other real estate owned | 0 | 0 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Impairment loans | 0 | 0 | |||
Other real estate owned | 0 | 0 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Impairment loans | 131 | 324 | |||
Other real estate owned | $ 236 | $ 392 |
Fair Value (Details 4)
Fair Value (Details 4) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans, net of allowance for loan losses, fair value | $ 5,886,789 | $ 5,420,004 |
Accrued interest Payable, Carrying value | 167,303 | 152,953 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents, Carrying value | 12,488,000 | 8,438,000 |
Cash and cash equivalents, fair value | 12,488,000 | 8,438,000 |
Loans, net of allowance for loan losses, Carrying value | 17,146,000 | 20,265,000 |
Loans, net of allowance for loan losses, fair value | 17,196,000 | 21,979,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Accrued interest receivable, Carrying value | 167,000 | 153,000 |
Accrued interest receivable, fair value | 167,000 | 153,000 |
Demand deposits, Carrying value | 30,959,000 | 29,816,000 |
Demand deposits, fair value | 30,959,000 | 29,816,000 |
Savings deposits, Carrying value | 10,556,000 | 10,589,000 |
Savings deposits, fair value | 10,556,000 | 10,589,000 |
Time deposits, Carrying value | 4,877,000 | 7,867,000 |
Time deposits, fair value | 4,814,000 | 7,757,000 |
Accrued interest Payable, Carrying value | 6,000 | 17,000 |
Accrued interest Payable, fair value | $ 6,000 | $ 17,000 |
Fair Value (Details Narrative)
Fair Value (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Fair value vailable for sale | $ 4,431,000 | $ 4,581,000 |
Estimated selling cost | $ 28,500 | $ 15,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noninterest income (in-scope of Topic 606) | $ 241 | $ 268 | $ 3,066 | $ 570 |
Noninterest income (out-of-scope of Topic 606) | (6) | 124 | (652) | 358 |
Total non-interest income | 235 | 392 | 2,414 | 928 |
Other Income [Member] | ||||
Revenues | 480 | 360 | 26,380 | 840 |
Customer Service Fees [Member] | ||||
Revenues | 1,040 | 1,070 | 2,900 | 3,100 |
ATM Fee Income [Member] | ||||
Revenues | 24 | 25 | 73 | 76 |
Loan Syndication Fees [Member] | ||||
Revenues | $ 650 | $ 1,000 | $ 650 | $ 1,000 |
Regulatory (Details Narrative)
Regulatory (Details Narrative) | 1 Months Ended | 9 Months Ended | ||||
Aug. 31, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2022 | May 31, 2021 USD ($) | Dec. 31, 2018 | |
Leverage capital ratio | 5.37 | 9.50 | 3 | |||
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 | |||||
Capital investment | $ 600,000 | |||||
External investments | $ 925,000 | |||||
Risk-based capital ratio | 11.96 | 21.92 | 6.34 | |||
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 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2022 | |
Going Concern (Details Narrative) | |||
Leverage capital ratio | 5.37% | 9.50% | |
net loss of approximately | $ 224,000 | $ 57,000 | |
Net Loss | $ 1,136,000 | $ (407,000) | |
Description of consent orders | Further, the Company has entered into Consent Orders with the FDIC and the Department which, among other provisions, require the Bank to increase its tier one leverage capital ratio to 8.50% and its total risk-based capital ratio to 12.50% | ||
Risk based capital ratio | 11.96% | 21.92% | |
Write down of loans held at fair value | $ 1,200,000 | $ 1,200,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | |||||
May 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2022 | Aug. 31, 2021 | Sep. 30, 2019 | |
Leverage capital ratio | 9.50% | 5.37% | ||||
Risk based capital ratio | 21.92% | 11.96% | ||||
Subsequent Event [Member] | ||||||
Leverage capital ratio | 9.50% | |||||
Total grants awarded | $ 1,286,000 | |||||
External investment received | $ 600,000 | |||||
Covid 19 pandemic effect description | 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 | |||||
Grant received | $ 3,400,000 | |||||
Noninterest grant income | 2,800,000 | |||||
Deferred Revenue | $ 617,000 | |||||
Risk based capital ratio | 21.92% |