Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 13, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | UNITED BANCSHARES INC /PA | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 944,792 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 826,921 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | upoh |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Cash and cash equivalents | |||
Cash and due from banks | $ 2,704,816 | $ 1,919,494 | |
Interest-bearing deposits with banks | 310,411 | 310,088 | |
Federal funds sold | 5,307,000 | 1,007,000 | |
Cash and cash equivalents | 8,322,227 | 3,236,582 | |
Investment securities available-for-sale, at fair value | 7,466,244 | 8,539,892 | |
Loans held for sale | 2,924,173 | 6,160,183 | |
Loans held at fair value | 1,489,535 | 628,750 | |
Net loans | |||
Loans, net of unearned discounts and deferred fees | 36,686,522 | 40,861,890 | |
Less allowance for loan losses | (595,718) | (734,567) | |
Net loans | 36,090,804 | 40,127,323 | |
Bank premises and equipment, net | 509,252 | 549,466 | |
Accrued interest receivable | 231,180 | 249,571 | |
Other real estate owned | 757,043 | 563,543 | |
Prepaid expenses and other assets | 586,802 | 408,956 | |
Total assets | 58,377,260 | 60,464,266 | |
Liabilities: | |||
Demand deposits, noninterest-bearing | 15,404,464 | 14,984,387 | |
Demand deposits, interest-bearing | 12,993,626 | 13,738,476 | |
Savings deposits | 11,678,718 | 12,091,282 | |
Time deposits, under $100,000 | 5,660,950 | 6,533,300 | |
Time deposits, $100,000 and over | 9,267,036 | 9,614,868 | |
Total deposits | 55,004,794 | 56,962,313 | |
Accrued interest payable | 14,154 | 16,253 | |
Accrued expenses and other liabilities | 302,224 | 305,060 | |
Total liabilities | 55,321,172 | 57,283,626 | |
Shareholders' equity: | |||
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 124,342 issued and outstanding at June 30, 2015 and 136,842 issued and outstanding at December 31, 2014 | 1,243 | 1,368 | |
Common Stock | 8,269 | 10,686 | |
Additional paid-in-capital | 14,752,394 | 14,749,852 | |
Accumulated deficit | (11,671,362) | (11,568,043) | |
Accumulated other comprehensive loss | (34,456) | (13,223) | |
Total shareholders' equity | 3,056,088 | 3,180,640 | |
Total liabilities and shareholders' equity | 58,377,260 | 60,464,266 | |
Common Stock | |||
Shareholders' equity: | |||
Common Stock | [1] | $ 8,269 | 8,769 |
Class B Non-voting Common Stock | |||
Shareholders' equity: | |||
Common Stock | [2] | $ 1,917 | |
[1] | Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding at June 30, 2015 and 876,921 issued and outstanding at December 31, 2014 | ||
[2] | Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value;191,667 issued and outstanding at December 31, 2014 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 826,921 | 876,921 |
Common stock, shares outstanding | 826,921 | 876,921 |
Series A Preferred Stock | ||
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 124,342 | 136,842 |
Preferred stock, shares outstanding | 124,342 | 136,842 |
Preferred stock, Dividend Rate | 6.00% | 6.00% |
Class B Non-voting Common Stock | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 191,667 | |
Common stock, shares outstanding | 191,667 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 582,012 | $ 638,877 | $ 1,244,690 | $ 1,286,163 |
Interest on investment securities | 44,843 | 58,857 | 92,591 | 119,792 |
Interest on federal funds sold | 2,968 | 2,236 | 4,259 | 4,573 |
Interest on time deposits with other banks | 164 | 164 | 326 | 2,987 |
Total interest income | 629,987 | 700,134 | 1,341,866 | 1,413,515 |
Interest expense: | ||||
Interest on time deposits | 9,837 | 9,728 | 19,792 | 19,503 |
Interest on demand deposits | 6,162 | 6,750 | 12,279 | 13,351 |
Interest on savings deposits | 1,465 | 1,571 | 2,937 | 3,146 |
Total interest expense | 17,464 | 18,049 | 35,008 | 36,000 |
Net interest income | 612,523 | 682,085 | 1,306,858 | 1,377,515 |
(Credit) provision for loan losses | (40,000) | 30,000 | (100,000) | 70,000 |
Net interest income after provision for loan losses | 652,523 | 652,085 | 1,406,858 | 1,307,515 |
Noninterest income: | ||||
Customer service fees | 139,274 | 102,163 | 235,552 | 197,975 |
ATM fee income | 31,745 | 45,292 | 63,149 | 87,247 |
Gain on sale of loans | 473,706 | |||
Loss on sale of other real estate | (2,289) | (2,289) | ||
Net change in fair value of financial instruments | 32,143 | (2,579) | (238,431) | (2,579) |
Loan syndication fees | 85,000 | 87,550 | 85,000 | 87,550 |
Other income | 21,633 | 19,644 | 26,610 | 52,886 |
Total noninterest income | 307,506 | 252,070 | 643,297 | 423,079 |
Noninterest expense: | ||||
Salaries, wages and employee benefits | 404,366 | 396,901 | 803,379 | 813,990 |
Occupancy and equipment | 249,740 | 241,978 | 502,244 | 496,503 |
Office operations and supplies | 81,922 | 69,854 | 150,382 | 133,977 |
Marketing and public relations | 8,337 | 18,846 | 26,189 | 37,270 |
Professional services | 74,964 | 74,534 | 165,415 | 146,140 |
Data processing | 89,615 | 107,029 | 187,087 | 219,871 |
Other real estate expense | (23,182) | 24,573 | (63,214) | 37,156 |
Loan and collection costs | 46,490 | 20,272 | 103,771 | 38,928 |
Deposit insurance assessments | 34,200 | 38,000 | 66,400 | 72,000 |
Other operating | 111,526 | 115,114 | 211,598 | 158,958 |
Total noninterest expense | 1,077,978 | 1,107,101 | 2,153,251 | 2,154,793 |
Net loss before income taxes | $ (117,949) | $ (202,946) | $ (103,096) | $ (424,199) |
Provision for income taxes | ||||
Net loss | $ (117,949) | $ (202,946) | $ (103,096) | $ (424,199) |
Net loss per common share-basic and diluted | $ (0.14) | $ (0.19) | $ (0.10) | $ (0.40) |
Weighted average number of common shares | 826,921 | 1,068,588 | 986,262 | 1,068,588 |
Comprehensive loss: | ||||
Net loss | $ (117,949) | $ (202,946) | $ (103,096) | $ (424,199) |
Unrealized (losses) gains on available for sale securities | (78,421) | 131,690 | (21,233) | 255,063 |
Total comprehensive loss | $ (196,370) | $ (71,256) | $ (124,329) | $ (169,136) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (103,096) | $ (424,199) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
(Credit) provision for loan losses | (100,000) | 70,000 |
Amortization of premiums on investments | 9,083 | 11,724 |
Depreciation on fixed assets | 88,678 | 86,615 |
Net change in fair value of financial instruments | 238,431 | 2,579 |
Gain on sale of loans | (473,706) | |
Loss on sale of other real estate | 2,289 | |
(Write-up) Write-down of other real estate owned | (88,460) | 13,052 |
Proceeds from the sale of loans held-for-sale | 4,407,339 | 1,645,832 |
Loans originated for sale | (1,823,367) | |
(Increase) decrease in accrued interest receivable and other assets | (180,910) | 71,913 |
Increase (decrease) in accrued interest payable and other liabilities | (4,937) | (64,096) |
Net cash provided by operating activities | 1,971,344 | 1,413,420 |
Cash flows from investing activities: | ||
Proceeds from maturity and principal reductions of available-for-sale investment securities | 1,064,615 | 156,613 |
Purchase of securities available-for-sale | (49) | |
Proceeds from sale of other real estate | 40,913 | |
Net decrease (increase) in loans | 4,014,805 | (643,154) |
Purchase of bank premises and equipment | (48,464) | (24,965) |
Net cash provided by (used in) investing activities | 5,071,820 | (511,506) |
Cash flows from financing activities: | ||
Net decrease in deposits | (1,957,519) | (882,133) |
Net cash used in financing activities | (1,957,519) | (882,133) |
Net increase in cash and cash equivalents | 5,085,645 | 19,781 |
Cash and cash equivalents at beginning of period | 3,236,582 | 5,789,778 |
Cash and cash equivalents at end of period | 8,322,227 | 5,809,559 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 37,107 | $ 35,320 |
Noncash transfer of loans to other real estate | $ 148,241 |
1. Significant Accounting Polic
1. Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
1. 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, 2014 when reviewing this Form 10-Q. 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 June 30, 2015 and December 31, 2014 and the consolidated results of its operations and its cash flows for the three and six months ended June 30, 2015 and 2014. Management’s Use of Estimates The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities. 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 From time to time, 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 estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 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. Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries. 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 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 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 are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations. |
2. Net Loss Per Share
2. Net Loss Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
2. Net Loss Per Share | 2. Net Loss Per Share The calculation of net loss per share follows: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Basic: Net loss available to common shareholders $(117,949) $(202,946) $(103,096) $(424,199) Average common shares outstanding-basic 826,921 1,068,588 986,262 1,068,588 Net loss per share-basic $(0.14) $(0.19) $(0.10) $(0.40) Diluted: Average common shares-diluted 826,921 1,068,588 986,262 1,068,588 Net loss per share-diluted $(0.14) $(0.19) $(0.10) $(0.40) Wells Fargo (formerly Wachovia Corporation) owned 241,666 shares of UBS Common Stock (50,000 voting shares); however, on February 18, 2015, Wells Fargo returned all shares (voting and non voting) for cancellation. 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 per share calculations. |
3. Changes in Accumulated Other
3. Changes in Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
3. Changes in Accumulated Other Comprehensive Income | 3.Changes in Accumulated Other Comprehensive Income The following table presents the changes in other comprehensive income: Three Months Ended June 30, 2015 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $(104) $26 $(78) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $(104) $26 $(78) Three Months Ended June 30, 2014 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $198 $(66) $132 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $198 $(66) $132 Six Months Ended June 30, 2015 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $(32) $11 $(21) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $(32) $11 $(21) Six Months Ended June 30, 2014 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $381 $(126) $255 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $381 $(126) $255 |
4. New Authoritative Accounting
4. New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
4. New Authoritative Accounting Guidance | 4. New Authoritative Accounting Guidance ASU 2014-04 Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers |
5. Investment Securities
5. Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
5. Investment Securities | 5. Investment Securities The following is a summary of the Company's investment portfolio: (In 000Â’s) June 30, 2015 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value Available-for-sale: U.S. Government agency securities $3,347 $- $(52) $3,295 Government Sponsored Enterprises residential mortgage-backed securities 4,041 42 (42) 4,041 Investments in money market funds 130 - - 130 $7,518 $42 $(94) $7,466 December 31, 2014 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: U.S. Government agency securities $4,097 $- $(61) $4,036 Government Sponsored Enterprises residential mortgage-backed securities 4,333 60 (20) 4,374 Investments in money market funds 130 - - 130 $8,560 $60 $(81) $8,540 The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2015, are as follows: (In 000Â’s) Amortized Cost Fair Value Due in one year $- $- Due after one year through five years - - Due after five years through ten years 3,347 3,295 Government Sponsored Enterprises residential mortgage-backed securities 4,041 4,041 Total debt securities 7,388 7,336 Investments in money market funds 130 130 $7,518 $7,466 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. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2015: 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 $11 $2,455 $(43) $590 $(9) $3,045 $(52) Government Sponsored Enterprises residential mortgage-backed securities 9 2,050 (29) 228 (13) 2,277 (42) Total temporarily impaired investment securities $20 $4,504 $72 $818 $(20 $5,322 $(94) The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2014: 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 $13 $246 $(4) $3,290 $(57) $3,536 $(61) Government Sponsored Enterprises residential mortgage-backed securities 6 - - 1,440 (20) 1,440 (20) Total temporarily impaired investment securities $19 $246 $(4) $4,730 $(77) $4,976 $(81) 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 CompanyÂ’s ability and intent to hold the security for a period of time that allows for the recovery in value. |
6. Loans and Allowance For Loan
6. Loans and Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
6. Loans and Allowance For Loan Losses | 6. Loans and Allowance for Loan Losses The composition of the Bank’s loan portfolio is as follows: (Dollars in thousands) June 30, 2015 December 31, 2014 Commercial and industrial $4,089 $4,635 Commercial real estate 28,262 31,556 Consumer real estate 3,039 3,297 Consumer loans other 1,296 1,373 Total loans $36,686 $40,861 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 six months ended June 30, 2015 the Bank did not change any of its qualitative factors in any segment of the loan portfolio. In addition, the average historical loss factors were relatively unchanged as there were no charge-offs during the quarter. To the extent actual outcomes differ from management’s estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods. The following table presents an analysis of the allowance for loan losses. (in 000's) For the Three months ended June 30, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $344 $300 $21 $15 $680 Provision (credit) for loan losses 24 (64) - - (40) Charge-offs (48) - - (2) (50) Recoveries - - 2 4 7 Net (charge-offs) recoveries (48) - 2 2 (43) Ending balance $320 $236 $23 $17 $596 (in 000's) For the Three months ended June 30, 2014 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $296 $297 $20 $13 $626 Provision (credit) for loan losses 1 (2) 31 - 30 Charge-offs - - - (11) (11) Recoveries - - 1 11 12 Net recoveries - - 1 - 1 Ending balance $297 $295 $52 $13 $657 (in 000's) For the Six months ended June 30, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $403 $300 $20 $12 $735 Provision (credit) for loan losses (36) (64) - (100) Charge-offs (48) - - (14) (62) Recoveries 1 - 3 19 23 Net (charge-offs) recoveries (47) - 3 5 (39) Ending balance $320 $236 $23 $17 $596 (in 000's) For the Six months ended June 30, 2014 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $483 $280 $59 $17 $839 Provision (credit) for loan losses 65 15 (10) - 70 Charge-offs (253) - - (18) (271) Recoveries 2 - 3 14 19 Net (charge-offs)recoveries (251) - 3 (4) (252) Ending balance $297 $295 $52 $13 $657 (in 000's) June 30, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Total Period-end amount allocated to: Loans individually evaluated for impairment $220 $47 $- $- $267 Loans collectively evaluated for impairment 100 189 23 17 329 $320 $236 $23 $17 $596 Loans, ending balance: Loans individually evaluated for impairment $383 $1,399 $- $- $1,782 Loans collectively evaluated for impairment 3,706 26,863 3,039 1,296 34,904 Total $4,089 $28,262 $3,039 $1,296 $36,686 December 31, 2014 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Total Period-end amount allocated to: Loans individually evaluated for impairment $247 $27 $- $- $274 Loans collectively evaluated for impairment 156 273 20 12 461 $403 $300 $20 $12 $735 Loans, ending balance: Loans individually evaluated for impairment $382 $1,623 $- $- $2,005 Loans collectively evaluated for impairment 4,253 29,933 3,297 1,373 38,856 Total $4,635 $31,556 $3,297 $1,373 $40,861 Nonperforming and Nonaccrual and Past Due Loans An age analysis of past due loans, segregated by class of loans, as of June 30, 2015 is as follows: Accruing Loans Loans 90 or (In 000's) 30-89 Days More Days Total Past Current Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $- $- $243 $243 $2,245 $2,488 SBA loans - - - - 156 156 Asset-based - - - - 1,445 1,445 Total Commercial and industrial - - 243 243 3,846 4,089 Commercial real estate: Commercial mortgages 167 54 975 1,196 12,956 14,152 SBA loans - - 112 112 405 517 Construction - - - - 2,321 2,321 Religious organizations - - 488 488 10,784 11,272 Total Commercial real estate 167 54 1,575 1,796 26,466 28,262 Consumer real estate: Home equity loans 73 126 360 559 444 1,003 Home equity lines of credit - - - - 22 22 1-4 family residential mortgages 55 - 75 130 1884 2,014 Total consumer real estate 128 126 435 689 2,350 3,039 Total real estate 295 180 2,010 2,485 28,799 31,301 Consumer and other: Consumer installment - - - - - - Student loans 90 90 - 180 979 1,159 Other 1 - - 1 136 137 Total consumer and other 91 90 - 181 1,115 1,296 Total loans $386 $270 $2,253 $2,909 $33,751 $36,686 An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 is as follows: Accruing Loans Loans 90 or 30-89 Days More Days Total Past Current (In 000's) Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $- $- $248 $248 $2,315 $2,563 SBA loans - - 48 48 120 168 Asset-based - - - - 1,904 1,904 Total Commercial and industrial - - 296 296 4,339 4,635 Commercial real estate: Commercial mortgages 17 83 985 1,085 14,385 15,470 SBA loans - - 118 118 407 525 Construction - - - - 3,423 3,423 Religious organizations - - 520 520 11,618 12,138 Total Commercial real estate 17 83 1,623 1,723 29,833 31,556 Consumer real estate: Home equity loans 246 - 368 614 433 1,047 Home equity lines of credit - - - - 22 22 1-4 family residential mortgages - - 194 194 2,034 2,228 Total consumer real estate 246 - 562 808 2,489 3,297 Total real estate 263 83 2,185 2,531 32,322 34,853 Consumer and other: Consumer installment - - - - 7 7 Student loans 136 88 - 224 997 1,221 Other 12 - - 12 133 145 Total consumer and other 148 88 - 236 1,137 1,373 Total loans $411 $171 $2,481 $3,063 $37,798 $40,861 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. 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, but no later than 90 days past due. The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above. (In 000's) Commercial Loans June 30, 2015 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $250 $1,322 $453 $- $330 $133 $2,488 SBA loans - 10 106 - 40 - 156 Asset-based - 1,274 125 - 46 - 1,445 250 2,606 684 - 416 133 4,089 Commercial real estate: Commercial mortgages - 11,794 701 55 1,286 316 14,152 SBA Loans - 238 167 - 112 - 517 Construction - 2,321 - - - - 2,321 Religious organizations - 8,897 1,162 725 488 - 11,272 - 23,250 2,030 780 1,886 316 28,262 Total commercial loans $250 $25,856 $2,714 $780 $2,302 $449 $32,351 Residential Mortgage and Consumer Loans June 30, 2015 Performing Nonperforming Total Consumer Real Estate: Home equity $643 $360 $1,003 Home equity line of credit 22 - 22 1-4 family residential mortgages 1,939 75 2,014 2,604 435 3,039 Consumer Other: Consumer Installment 1,159 - 1,159 Student loans 137 - 137 Other - - - 1,295 - 1,296 Total consumer loans $3,900 $435 $4,335 Total loans $36,686 (In 000's) Commercial Loans, December 31, 2014 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $300 $1,321 $474 $220 $113 $135 $2,563 SBA loans - 80 - - 88 - 168 Asset-based - 1,734 124 - 46 - 1,904 300 3,135 598 220 247 135 4,635 Commercial real estate: Commercial mortgages - 13,024 724 57 1,348 317 15,470 SBA Loans - 237 170 - 118 - 525 Construction - 3,423 - - - - 3,423 Religious organizations - 9,730 1,185 703 520 - 12,138 - 26,414 2,079 760 1,986 317 31,556 Total commercial loans $300 $29,549 $2,677 $980 $2,233 $452 $36,191 Residential Mortgage and Consumer Loans December 31, 2014 Performing Nonperforming Total Consumer Real Estate: Home equity $679 $368 $1,047 Home equity line of credit 22 - 22 1-4 family residential mortgages 2,034 194 2,228 2,735 562 3,297 Consumer Other: Consumer Installment 7 - 7 Student loans 1,221 - 1,221 Other 145 - 145 1,373 - 1,373 Total consumer loans $4,108 $562 $4,670 Total loans $40,861 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 June 30, 2015 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 $297 $125 $212 $297 $212 SBA Loans 40 40 - 40 - Asset-based 46 - 46 46 8 Total commercial and industrial 383 165 258 383 220 Commercial real estate: Commercial mortgages 1,051 409 390 799 41 SBA Loans 112 - 112 112 6 Religious organizations 488 488 - 488 - Total commercial real estate 1,651 1,222 502 1,399 47 Total loans $2,034 $1,387 $760 $1,782 $267 Impaired loans as of December 31, 2014 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 $501 $38 $210 $248 $199 SBA loans 94 46 48 94 48 Asset-based 40 40 - 40 - Total commercial and industrial 635 124 258 382 247 Commercial real estate: Commercial mortgages 985 616 369 985 27 SBA Loans 118 118 - 118 - Religious organizations 520 520 - 520 - Total commercial real estate 1,623 1,254 369 1,623 27 Total loans $2,258 $1,378 $627 $2,005 $274 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 June 30, 2015 Three Months Ended June 30, 2014 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $201 $- $182 $- SBA loans 46 1 48 - Asset-based 73 1 - - Total commercial and industrial 320 2 230 - Commercial real estate: Commercial mortgages 934 - 998 - SBA loans 113 - 125 - Religious organizations 487 - 617 - Total commercial real estate 1,534 - 1,740 - Total loans $1,854 $2 $1,970 $- (In 000's) Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $200 $- $269 $- SBA loans 46 2 48 - Asset-based 40 1 - - Total commercial and industrial 286 3 317 - Commercial real estate: Commercial mortgages 896 - 875 - SBA loans 112 - 126 - Religious organizations 488 - 620 2 Total commercial real estate 1,496 - 1,621 2 Total loans $1,782 $3 $1,938 $2 Troubled debt restructurings |
7. Other Real Estate Owned
7. Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
7. 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 June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Beginning balance $708 $433 $564 $433 Additions, transfers from loans 59 - 148 - Sales (43) (43) - 726 - 669 - Write-ups (downs) 33 (13) 88 (13) Ending Balance $757 $420 $757 $420 The following schedule reflects the components of other real estate owned: (in 000's) June 30, 2015 December 31, 2014 Commercial real estate $335 $191 Residential real estate 422 373 Total $757 $564 The following table details the components of net expense of other real estate owned: Three Months Ended Three Months Ended Six Months Ended Six Months Ended (in 000's) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Insurance $4 $7 $8 $11 Professional fees - - - - Real estate taxes 3 4 6 11 Utilities 1 1 1 2 Other - - 10 - Transfer-in write-up (31) - (88) - Impairment charges (net) - 13 - 13 Total {verbose} $(23) $25 $(63) $37 |
8. Fair Value
8. Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
8. Fair Value | 8. 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 instrumentÂ’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. Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. (in 000Â’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at June 30, 2015 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 $3,295 $- $3,295 $- Government Sponsored Enterprises residential mortgage-backed securities 4,041 - 4,042 - Money Market Funds 130 130 - - Total $7,466 $130 $7,337 $- Loans held for sale $2,924 $- $2,924 $- Loans held at fair value $1,490 $- $- $1,490 (in 000Â’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at December 31, 2014 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 $4,036 $- $4,036 $- Government Sponsored Enterprises residential mortgage-backed securities 4,374 - 4,374 - Money Market Funds 130 130 - - Total $8,540 $130 $8,410 $- Loans held for sale $6,160 $- $6,160 $- Loans held at fair value $629 $- $- $629 The fair value of the BankÂ’s AFS securities portfolio was approximately $7,466,000 and $8,540,000 at June 30, 2015 and December 31, 2014, 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 June 30, 2015 and 2014. 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 000Â’s) Assets measured at fair value June 30, 2015 Fair value December 31, 2014 Fair Value Principal valuation techniques Significant observable inputs June 30, 2015 Range of inputs December 31, 2014 Range of inputs Loans held at fair value: $1,490 $629 Discounted cash flow Constant prepayment rate 6.63% to 9.31% 7.58% to 8.52% Weighted average discount rate 7.42% to 9.47% 9.02% to 9.24% Weighted average life 3.51 yrs to 8.76 yrs 3.75 yrs to 4.25 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 000Â’s) Loans held at fair value Balance at December 31, 2014 $629 Origination of loans 1,820 Principal repayments (486) Change in fair value of financial instruments (473) Balance at June 30, 2015 $1,490 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 June 30, 2015 and December 31, 2014, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2015 and year ended December 31, 2014. Carrying Value at June 30, 2015: (in 000Â’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value gain (loss) during 6 months ended Impaired loans $1,513 $- $- $1,513 $- Other real estate owned (“OREO”) $757 $- $- $757 $88 Carrying Value at December 31, 2014: (in 000Â’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value gain (loss) during 12 months ended Impaired Loans $1,731 $- $- $1,731 $(142) Other real estate owned (“OREO”) $564 $- $- $564 $(13) The measured impairment for collateral dependent impaired loans is determined by the fair value of the collateral less estimated liquidation costs. Collateral values for loans and OREO are determined by annual or more frequent appraisals if warranted by volatile market conditions, which may be discounted up to 10% based upon managementÂ’s review and the estimated cost of liquidation. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made on the appraisal process by the appraisers for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation allowance for impaired loans is adjusted as necessary based on changes in the value of collateral as well as the cost of liquidation. It is included in the allowance for loan losses in the consolidated statements of condition. 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 following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash and cash equivalents: The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assetsÂ’ fair values. Investment securities: Fair values for investment securities available-for-sale are as described above. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans held for sale: Fair values for loans held for sale are estimated by using actual quoted market bids on a loan by loan basis. Loans held at fair value: The fair value of loans held at fair value was estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, default and voluntary prepayments as well as loan specific assumptions for losses and recoveries. Loans (other than impaired loans): The fair value of loans was estimated using a discounted cash flow analysis, which considered estimated preÂpayments, amortizations, and non performance risk. Prepayments and discount rates were based on current marketplace estimates and rates. Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value. Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amounts payable on demand at the reporting date (e.g., their carrying amounts). The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate the fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation. The Treasury yield curve was utilized for discounting cash flows as it approximates the average marketplace certificate of deposit rates across the relevant maturity spectrum. Accrued interest payable: The carrying amounts of accrued interest payable approximate fair value. Commitments to extend credit: The carrying amounts for commitments to extend credit approximate fair value as such commitments are not substantially different from the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparts. The carrying amount of accrued interest payable approximates fair market value. The fair value of assets and liabilities are depicted below: June 30, 2015 December 31, 2014 (in 000Â’s) Level in Carrying Fair Carrying Fair Value Hierarchy Amount Value Amount Value (Dollars in thousands) Assets: Cash and cash equivalents Level 1 $8,322 $8,322 $3,237 $3,237 Available for sale securities (1) 7,466 7,466 8,540 8,540 Loans held for sale Level 2 2,924 2,924 6,160 6,160 Loans held at fair value Level 3 1,490 1,490 629 629 Loans, net of allowance for loan losses (2) 36,686 35,832 40,127 40,069 Accrued interest receivable Level 2 231 231 250 250 Liabilities: Demand deposits Level 2 28,398 28,398 28,723 28,723 Savings deposits Level 2 11,679 11,679 12,091 12,091 Time deposits Level 2 14,928 14,939 16,148 16,157 Accrued interest payable Level 2 14 14 16 16 (1) Level 1 for money market funds; Level 2 for all other securities. (2) Level 2 for non-impaired loans; Level 3 for impaired loans. |
9. Regulatory
9. Regulatory | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
9. Regulatory | 9. Regulatory On January 31, 2012, the Bank entered into stipulations consenting to the issuance of Consent Orders with the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“Department”). The material terms of the Consent Orders are identical. The requirements and status of items included in the Consent Orders are as follows: Requirement Status 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; Board participation improved with attendance at board and committee meetings. 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; A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements. Retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan; An engagement letter from a qualified consultant was received and approved by the Bank’s regulators. Upon acceptance, the review commenced in May 2012 and was completed in June 2012. Formulate and implement written profit and budget plans for each year during which the orders are in effect; Profit and budget plans have been prepared and submitted to regulators as required annually. Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually; An annual comprehensive strategic plan was prepared and submitted to regulators as required. 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%, within a reasonable but unspecified time period; A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually. Formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its regulatory examination; A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required. Eliminate all assets classified as “Loss” at its current regulatory examination; All assets classified as “Loss” have been eliminated. Revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination; The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required. Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses; The ALLL policy and methodology for determining the allowance for loan losses were submitted as required. Requirement Status Develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes; The Bank’s interest rate risk policy and procedures were submitted to regulators as required. Revise its liquidity and funds management policy and update and review the policy annually; The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required. Refrain from accepting any brokered deposits; The Bank did not accept brokered deposits. Refrain from paying cash dividends without prior approval of the FDIC and the Department; The Bank did not pay cash dividends. Establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders. Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders. Quarterly reports were prepared and submitted as required. 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. As of June 20, 2015 and December 31, 2014, the Bank’s tier one leverage capital ratio was 5.12% and 5.18%, respectively, and its total risk based capital ratio was 9.37% and 8.60%, respectively. The net loss for the six months ended June 30, 2015 resulted in a decline in the tier one leverage ratio; however, the total risk based capital ratio increased because of the decrease in loans during the period that generally carry a higher risk weight than cash or investments. Management has developed and submitted a Capital Plan that focuses on the following: 1. Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital. 2. External equity investments—an investment banker has been engaged to help the Bank generate external capital investments. As a result of the above actions, management believes that the Bank has and will continue to attempt to comply with the terms and conditions of the Orders and will continue to operate as a going concern and an independent financial institution for the foreseeable future. |
1. Significant Accounting Pol15
1. Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Management's Use of Estimates | ManagementÂ’s Use of Estimates The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities. |
Commitments | 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 | 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 | Loans Held for Sale From time to time, 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 estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 |
Loans Held At Fair Value | Loans Held at Fair Value The Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market. Management has elected to carry these loans at fair value. Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries. |
Loans | Loans The Bank has both the positive intent and ability to hold the majority of its loans to maturity. These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses. Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount. |
Allowance For Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses. Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance. When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition. Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance. 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. | Non-accrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due. The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more. If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. 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 | 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 managementÂ’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 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 are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations. |
2. Net Loss Per Share_ Schedule
2. Net Loss Per Share: Schedule of Net Loss per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Net Loss per Common Share | The calculation of net loss per share follows: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Basic: Net loss available to common shareholders $(117,949) $(202,946) $(103,096) $(424,199) Average common shares outstanding-basic 826,921 1,068,588 986,262 1,068,588 Net loss per share-basic $(0.14) $(0.19) $(0.10) $(0.40) Diluted: Average common shares-diluted 826,921 1,068,588 986,262 1,068,588 Net loss per share-diluted $(0.14) $(0.19) $(0.10) $(0.40) |
3. Changes in Accumulated Oth17
3. Changes in Accumulated Other Comprehensive Income: Schedule of Components of Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Components of Other Comprehensive Loss | The following table presents the changes in other comprehensive income: Three Months Ended June 30, 2015 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $(104) $26 $(78) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $(104) $26 $(78) Three Months Ended June 30, 2014 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $198 $(66) $132 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $198 $(66) $132 Six Months Ended June 30, 2015 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $(32) $11 $(21) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $(32) $11 $(21) Six Months Ended June 30, 2014 Before tax Net of tax (in (000Â’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $381 $(126) $255 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $381 $(126) $255 |
5. Investment Securities_ Sched
5. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Available-for-sale Securities Reconciliation | The following is a summary of the Company's investment portfolio: (In 000Â’s) June 30, 2015 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value Available-for-sale: U.S. Government agency securities $3,347 $- $(52) $3,295 Government Sponsored Enterprises residential mortgage-backed securities 4,041 42 (42) 4,041 Investments in money market funds 130 - - 130 $7,518 $42 $(94) $7,466 December 31, 2014 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: U.S. Government agency securities $4,097 $- $(61) $4,036 Government Sponsored Enterprises residential mortgage-backed securities 4,333 60 (20) 4,374 Investments in money market funds 130 - - 130 $8,560 $60 $(81) $8,540 |
5. Investment Securities_ Sch19
5. Investment Securities: Schedule of Investments Classified by Contractual Maturity Date (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2015, are as follows: (In 000Â’s) Amortized Cost Fair Value Due in one year $- $- Due after one year through five years - - Due after five years through ten years 3,347 3,295 Government Sponsored Enterprises residential mortgage-backed securities 4,041 4,041 Total debt securities 7,388 7,336 Investments in money market funds 130 130 $7,518 $7,466 |
5. Investment Securities_ Sch20
5. Investment Securities: Schedule of Continuous Unrealized Loss Positions on Held-To-Maturity Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Continuous Unrealized Loss Positions on Held-To-Maturity Investments | The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2015: 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 $11 $2,455 $(43) $590 $(9) $3,045 $(52) Government Sponsored Enterprises residential mortgage-backed securities 9 2,050 (29) 228 (13) 2,277 (42) Total temporarily impaired investment securities $20 $4,504 $72 $818 $(20 $5,322 $(94) The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2014: 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 $13 $246 $(4) $3,290 $(57) $3,536 $(61) Government Sponsored Enterprises residential mortgage-backed securities 6 - - 1,440 (20) 1,440 (20) Total temporarily impaired investment securities $19 $246 $(4) $4,730 $(77) $4,976 $(81) |
6. Loans and Allowance For Lo21
6. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of the Composition of Net Loans | The composition of the BankÂ’s loan portfolio is as follows: (Dollars in thousands) June 30, 2015 December 31, 2014 Commercial and industrial $4,089 $4,635 Commercial real estate 28,262 31,556 Consumer real estate 3,039 3,297 Consumer loans other 1,296 1,373 Total loans $36,686 $40,861 |
6. Loans and Allowance For Lo22
6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Age Analysis of Allowance for Loan Losses | The following table presents an analysis of the allowance for loan losses. (in 000's) For the Three months ended June 30, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $344 $300 $21 $15 $680 Provision (credit) for loan losses 24 (64) - - (40) Charge-offs (48) - - (2) (50) Recoveries - - 2 4 7 Net (charge-offs) recoveries (48) - 2 2 (43) Ending balance $320 $236 $23 $17 $596 (in 000's) For the Three months ended June 30, 2014 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $296 $297 $20 $13 $626 Provision (credit) for loan losses 1 (2) 31 - 30 Charge-offs - - - (11) (11) Recoveries - - 1 11 12 Net recoveries - - 1 - 1 Ending balance $297 $295 $52 $13 $657 (in 000's) For the Six months ended June 30, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $403 $300 $20 $12 $735 Provision (credit) for loan losses (36) (64) - (100) Charge-offs (48) - - (14) (62) Recoveries 1 - 3 19 23 Net (charge-offs) recoveries (47) - 3 5 (39) Ending balance $320 $236 $23 $17 $596 (in 000's) For the Six months ended June 30, 2014 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $483 $280 $59 $17 $839 Provision (credit) for loan losses 65 15 (10) - 70 Charge-offs (253) - - (18) (271) Recoveries 2 - 3 14 19 Net (charge-offs)recoveries (251) - 3 (4) (252) Ending balance $297 $295 $52 $13 $657 (in 000's) June 30, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Total Period-end amount allocated to: Loans individually evaluated for impairment $220 $47 $- $- $267 Loans collectively evaluated for impairment 100 189 23 17 329 $320 $236 $23 $17 $596 Loans, ending balance: Loans individually evaluated for impairment $383 $1,399 $- $- $1,782 Loans collectively evaluated for impairment 3,706 26,863 3,039 1,296 34,904 Total $4,089 $28,262 $3,039 $1,296 $36,686 December 31, 2014 Commercial and industrial Commercial real estate Consumer real estate Consumer loans other Total Period-end amount allocated to: Loans individually evaluated for impairment $247 $27 $- $- $274 Loans collectively evaluated for impairment 156 273 20 12 461 $403 $300 $20 $12 $735 Loans, ending balance: Loans individually evaluated for impairment $382 $1,623 $- $- $2,005 Loans collectively evaluated for impairment 4,253 29,933 3,297 1,373 38,856 Total $4,635 $31,556 $3,297 $1,373 $40,861 |
6. Loans and Allowance For Lo23
6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Age Analysis of Past Due Loans | An age analysis of past due loans, segregated by class of loans, as of June 30, 2015 is as follows: Accruing Loans Loans 90 or (In 000's) 30-89 Days More Days Total Past Current Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $- $- $243 $243 $2,245 $2,488 SBA loans - - - - 156 156 Asset-based - - - - 1,445 1,445 Total Commercial and industrial - - 243 243 3,846 4,089 Commercial real estate: Commercial mortgages 167 54 975 1,196 12,956 14,152 SBA loans - - 112 112 405 517 Construction - - - - 2,321 2,321 Religious organizations - - 488 488 10,784 11,272 Total Commercial real estate 167 54 1,575 1,796 26,466 28,262 Consumer real estate: Home equity loans 73 126 360 559 444 1,003 Home equity lines of credit - - - - 22 22 1-4 family residential mortgages 55 - 75 130 1884 2,014 Total consumer real estate 128 126 435 689 2,350 3,039 Total real estate 295 180 2,010 2,485 28,799 31,301 Consumer and other: Consumer installment - - - - - - Student loans 90 90 - 180 979 1,159 Other 1 - - 1 136 137 Total consumer and other 91 90 - 181 1,115 1,296 Total loans $386 $270 $2,253 $2,909 $33,751 $36,686 An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 is as follows: Accruing Loans Loans 90 or 30-89 Days More Days Total Past Current (In 000's) Past Due Past Due Nonaccrual Due Loans Loans Total Loans Commercial and industrial: Commercial $- $- $248 $248 $2,315 $2,563 SBA loans - - 48 48 120 168 Asset-based - - - - 1,904 1,904 Total Commercial and industrial - - 296 296 4,339 4,635 Commercial real estate: Commercial mortgages 17 83 985 1,085 14,385 15,470 SBA loans - - 118 118 407 525 Construction - - - - 3,423 3,423 Religious organizations - - 520 520 11,618 12,138 Total Commercial real estate 17 83 1,623 1,723 29,833 31,556 Consumer real estate: Home equity loans 246 - 368 614 433 1,047 Home equity lines of credit - - - - 22 22 1-4 family residential mortgages - - 194 194 2,034 2,228 Total consumer real estate 246 - 562 808 2,489 3,297 Total real estate 263 83 2,185 2,531 32,322 34,853 Consumer and other: Consumer installment - - - - 7 7 Student loans 136 88 - 224 997 1,221 Other 12 - - 12 133 145 Total consumer and other 148 88 - 236 1,137 1,373 Total loans $411 $171 $2,481 $3,063 $37,798 $40,861 |
6. Loans and Allowance For Lo24
6. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Bank Loans by Class According to Credit Quality | The tables below detail the BankÂ’s loans by class according to their credit quality indictors discussed above. (In 000's) Commercial Loans June 30, 2015 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $250 $1,322 $453 $- $330 $133 $2,488 SBA loans - 10 106 - 40 - 156 Asset-based - 1,274 125 - 46 - 1,445 250 2,606 684 - 416 133 4,089 Commercial real estate: Commercial mortgages - 11,794 701 55 1,286 316 14,152 SBA Loans - 238 167 - 112 - 517 Construction - 2,321 - - - - 2,321 Religious organizations - 8,897 1,162 725 488 - 11,272 - 23,250 2,030 780 1,886 316 28,262 Total commercial loans $250 $25,856 $2,714 $780 $2,302 $449 $32,351 Residential Mortgage and Consumer Loans June 30, 2015 Performing Nonperforming Total Consumer Real Estate: Home equity $643 $360 $1,003 Home equity line of credit 22 - 22 1-4 family residential mortgages 1,939 75 2,014 2,604 435 3,039 Consumer Other: Consumer Installment 1,159 - 1,159 Student loans 137 - 137 Other - - - 1,295 - 1,296 Total consumer loans $3,900 $435 $4,335 Total loans $36,686 (In 000's) Commercial Loans, December 31, 2014 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $300 $1,321 $474 $220 $113 $135 $2,563 SBA loans - 80 - - 88 - 168 Asset-based - 1,734 124 - 46 - 1,904 300 3,135 598 220 247 135 4,635 Commercial real estate: Commercial mortgages - 13,024 724 57 1,348 317 15,470 SBA Loans - 237 170 - 118 - 525 Construction - 3,423 - - - - 3,423 Religious organizations - 9,730 1,185 703 520 - 12,138 - 26,414 2,079 760 1,986 317 31,556 Total commercial loans $300 $29,549 $2,677 $980 $2,233 $452 $36,191 Residential Mortgage and Consumer Loans December 31, 2014 Performing Nonperforming Total Consumer Real Estate: Home equity $679 $368 $1,047 Home equity line of credit 22 - 22 1-4 family residential mortgages 2,034 194 2,228 2,735 562 3,297 Consumer Other: Consumer Installment 7 - 7 Student loans 1,221 - 1,221 Other 145 - 145 1,373 - 1,373 Total consumer loans $4,108 $562 $4,670 Total loans $40,861 |
6. Loans and Allowance For Lo25
6. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Impaired Loans | Impaired loans as of June 30, 2015 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 $297 $125 $212 $297 $212 SBA Loans 40 40 - 40 - Asset-based 46 - 46 46 8 Total commercial and industrial 383 165 258 383 220 Commercial real estate: Commercial mortgages 1,051 409 390 799 41 SBA Loans 112 - 112 112 6 Religious organizations 488 488 - 488 - Total commercial real estate 1,651 1,222 502 1,399 47 Total loans $2,034 $1,387 $760 $1,782 $267 Impaired loans as of December 31, 2014 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 $501 $38 $210 $248 $199 SBA loans 94 46 48 94 48 Asset-based 40 40 - 40 - Total commercial and industrial 635 124 258 382 247 Commercial real estate: Commercial mortgages 985 616 369 985 27 SBA Loans 118 118 - 118 - Religious organizations 520 520 - 520 - Total commercial real estate 1,623 1,254 369 1,623 27 Total loans $2,258 $1,378 $627 $2,005 $274 |
6. Loans and Allowance For Lo26
6. Loans and Allowance For Loan Losses: Interest income on impaired loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Interest income on impaired loans | 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 June 30, 2015 Three Months Ended June 30, 2014 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $201 $- $182 $- SBA loans 46 1 48 - Asset-based 73 1 - - Total commercial and industrial 320 2 230 - Commercial real estate: Commercial mortgages 934 - 998 - SBA loans 113 - 125 - Religious organizations 487 - 617 - Total commercial real estate 1,534 - 1,740 - Total loans $1,854 $2 $1,970 $- (In 000's) Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $200 $- $269 $- SBA loans 46 2 48 - Asset-based 40 1 - - Total commercial and industrial 286 3 317 - Commercial real estate: Commercial mortgages 896 - 875 - SBA loans 112 - 126 - Religious organizations 488 - 620 2 Total commercial real estate 1,496 - 1,621 2 Total loans $1,782 $3 $1,938 $2 |
7. Other Real Estate Owned_ Sch
7. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Change in Other Real Estate Owned | Activity in other real estate owned for the periods was as follows: (in 000's) Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Beginning balance $708 $433 $564 $433 Additions, transfers from loans 59 - 148 - Sales (43) (43) - 726 - 669 - Write-ups (downs) 33 (13) 88 (13) Ending Balance $757 $420 $757 $420 |
7. Other Real Estate Owned_ S28
7. Other Real Estate Owned: Schedule of Components Of Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Components Of Other Real Estate Owned | The following schedule reflects the components of other real estate owned: (in 000's) June 30, 2015 December 31, 2014 Commercial real estate $335 $191 Residential real estate 422 373 Total $757 $564 |
7. Other Real Estate Owned_ S29
7. Other Real Estate Owned: Schedule of Components of Net Expense of Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Components of Net Expense of Other Real Estate Owned | The following table details the components of net expense of other real estate owned: Three Months Ended Three Months Ended Six Months Ended Six Months Ended (in 000's) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Insurance $4 $7 $8 $11 Professional fees - - - - Real estate taxes 3 4 6 11 Utilities 1 1 1 2 Other - - 10 - Transfer-in write-up (31) - (88) - Impairment charges (net) - 13 - 13 Total {verbose} $(23) $25 $(63) $37 |
8. Fair Value_ Schedule of Fair
8. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Fair Value of Assets on a Recurring Basis | Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. (in 000Â’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at June 30, 2015 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 $3,295 $- $3,295 $- Government Sponsored Enterprises residential mortgage-backed securities 4,041 - 4,042 - Money Market Funds 130 130 - - Total $7,466 $130 $7,337 $- Loans held for sale $2,924 $- $2,924 $- Loans held at fair value $1,490 $- $- $1,490 (in 000Â’s) Fair Value Measurements at Reporting Date Using: Assets/Liabilities Measured at Fair Value at December 31, 2014 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 $4,036 $- $4,036 $- Government Sponsored Enterprises residential mortgage-backed securities 4,374 - 4,374 - Money Market Funds 130 130 - - Total $8,540 $130 $8,410 $- Loans held for sale $6,160 $- $6,160 $- Loans held at fair value $629 $- $- $629 |
8. Fair Value_ Schedule of Fa31
8. Fair Value: Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Fair Value of Assets Measured on a Nonrecurring Basis | The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of June 30, 2015 and December 31, 2014, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2015 and year ended December 31, 2014. Carrying Value at June 30, 2015: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value gain (loss) during 6 months ended Impaired loans $1,513 $- $- $1,513 $- Other real estate owned (“OREO”) $757 $- $- $757 $88 Carrying Value at December 31, 2014: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value gain (loss) during 12 months ended Impaired Loans $1,731 $- $- $1,731 $(142) Other real estate owned (“OREO”) $564 $- $- $564 $(13) |
8. Fair Value_ Schedule of Fa32
8. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Fair Value of Financial Instruments at Year-End | The fair value of assets and liabilities are depicted below: June 30, 2015 December 31, 2014 (in 000Â’s) Level in Carrying Fair Carrying Fair Value Hierarchy Amount Value Amount Value (Dollars in thousands) Assets: Cash and cash equivalents Level 1 $8,322 $8,322 $3,237 $3,237 Available for sale securities (1) 7,466 7,466 8,540 8,540 Loans held for sale Level 2 2,924 2,924 6,160 6,160 Loans held at fair value Level 3 1,490 1,490 629 629 Loans, net of allowance for loan losses (2) 36,686 35,832 40,127 40,069 Accrued interest receivable Level 2 231 231 250 250 Liabilities: Demand deposits Level 2 28,398 28,398 28,723 28,723 Savings deposits Level 2 11,679 11,679 12,091 12,091 Time deposits Level 2 14,928 14,939 16,148 16,157 Accrued interest payable Level 2 14 14 16 16 |
9. Regulatory_ The requirements
9. Regulatory: The requirements and status of items included in the Consent Orders (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
The requirements and status of items included in the Consent Orders | The requirements and status of items included in the Consent Orders are as follows: Requirement Status 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; Board participation improved with attendance at board and committee meetings. 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; A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements. Retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan; An engagement letter from a qualified consultant was received and approved by the Bank’s regulators. Upon acceptance, the review commenced in May 2012 and was completed in June 2012. Formulate and implement written profit and budget plans for each year during which the orders are in effect; Profit and budget plans have been prepared and submitted to regulators as required annually. Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually; An annual comprehensive strategic plan was prepared and submitted to regulators as required. 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%, within a reasonable but unspecified time period; A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually. Formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its regulatory examination; A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required. Eliminate all assets classified as “Loss” at its current regulatory examination; All assets classified as “Loss” have been eliminated. Revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination; The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required. Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses; The ALLL policy and methodology for determining the allowance for loan losses were submitted as required. Requirement Status Develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes; The Bank’s interest rate risk policy and procedures were submitted to regulators as required. Revise its liquidity and funds management policy and update and review the policy annually; The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required. Refrain from accepting any brokered deposits; The Bank did not accept brokered deposits. Refrain from paying cash dividends without prior approval of the FDIC and the Department; The Bank did not pay cash dividends. Establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders. Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders. Quarterly reports were prepared and submitted as required. |
2. Net Loss Per Share_ Schedu34
2. Net Loss Per Share: Schedule of Net Loss per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Net loss available to common shareholders | $ (117,949) | $ (202,946) | $ (103,096) | $ (424,199) |
Average common shares outstanding-basic | 826,921 | 1,068,588 | 986,262 | 1,068,588 |
Net loss per share-basic | $ (0.14) | $ (0.19) | $ (0.10) | $ (0.40) |
Average common shares-diluted | 826,921 | 1,068,588 | 986,262 | 1,068,588 |
Net loss per share-diluted | $ (0.14) | $ (0.19) | $ (0.10) | $ (0.40) |
2. Net Loss Per Share (Details)
2. Net Loss Per Share (Details) | 3 Months Ended |
Mar. 31, 2015shares | |
Details | |
Shares cancelled during the period | 50,000 |
3. Changes in Accumulated Oth36
3. Changes in Accumulated Other Comprehensive Income: Schedule of Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Unrealized holding loss arising during period, before tax amount | $ (104) | $ 198 | $ (32) | $ 381 |
Unrealized holding loss arising during period, taxes | 26 | (66) | 11 | (126) |
Unrealized holding loss arising during period, net of tax amount | (78) | 132 | (21) | 255 |
Less: reclassification adjustment for gains(losses) realized in net loss, before tax amount | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for gains(losses) realized in net loss, taxes | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for gains(losses) realized in net loss, net of tax amount | 0 | 0 | 0 | 0 |
Other comprehensive loss, net, before tax amount | (104) | 198 | (32) | 381 |
Other comprehensive loss, net, taxes | 26 | (66) | 11 | (126) |
Other comprehensive loss, net, net after tax amount | $ (78) | $ 132 | $ (21) | $ 255 |
5. Investment Securities_ Sch37
5. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Available-for-sale Securities, Amortized Cost Basis | $ 7,518,000 | $ 8,560,000 |
Available-for-sale Securities, Gross Unrealized Gain | 42,000 | 60,000 |
Available-for-sale Securities, Gross Unrealized Loss | (94,000) | (81,000) |
Investment securities available-for-sale, at fair value | 7,466,244 | 8,539,892 |
US Government Agency Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 3,347,000 | 4,097,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | (52,000) | (61,000) |
Investment securities available-for-sale, at fair value | 3,295,000 | 4,036,000 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 4,041,000 | 4,333,000 |
Available-for-sale Securities, Gross Unrealized Gain | 42,000 | 60,000 |
Available-for-sale Securities, Gross Unrealized Loss | (42,000) | (20,000) |
Investment securities available-for-sale, at fair value | 4,041,000 | 4,374,000 |
Investments in money market funds | ||
Available-for-sale Securities, Amortized Cost Basis | 130,000 | 130,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Investment securities available-for-sale, at fair value | $ 130,000 | $ 130,000 |
5. Investment Securities_ Sch38
5. Investment Securities: Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Amortized Cost, due in one year | $ 0 | |
Fair Value, due in one year | 0 | |
Amortized Cost, due after one year through five years | 0 | |
Fair Value, due after one year through five years | 0 | |
Amortized Cost, due after five years through ten years | 3,347,000 | |
Fair Value, due after five years through ten years | 3,295,000 | |
Available-for-sale Securities, Amortized Cost Basis | 7,518,000 | $ 8,560,000 |
Investment securities available-for-sale, at fair value | 7,466,244 | 8,539,892 |
Total debt securities, Amortized Cost Basis | 7,388,000 | |
Total debt securities, Fair Value | 7,336,000 | |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 4,041,000 | 4,333,000 |
Investment securities available-for-sale, at fair value | 4,041,000 | 4,374,000 |
Investments in money market funds | ||
Available-for-sale Securities, Amortized Cost Basis | 130,000 | 130,000 |
Investment securities available-for-sale, at fair value | $ 130,000 | $ 130,000 |
5. Investment Securities_ Sch39
5. Investment Securities: Schedule of Continuous Unrealized Loss Positions on Held-To-Maturity Investments (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Number of Securities | 20 | 19 |
Less than Twelve Months, Fair Value | $ 4,504 | $ 246 |
Less than 12 Months, Unrealized Losses | 72 | (4) |
Twelve Months or Longer, Fair Value | 818 | 4,730 |
12 Months or Longer, Unrealized Losses | (20) | (77) |
Total Fair Value | 5,322 | 4,976 |
Total Unrealized Losses | $ (94) | $ (81) |
US Government Agency Securities | ||
Number of Securities | 11 | 13 |
Less than Twelve Months, Fair Value | $ 2,455 | $ 246 |
Less than 12 Months, Unrealized Losses | (43) | (4) |
Twelve Months or Longer, Fair Value | 590 | 3,290 |
12 Months or Longer, Unrealized Losses | (9) | (57) |
Total Fair Value | 3,045 | 3,536 |
Total Unrealized Losses | $ (52) | $ (61) |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Number of Securities | 9 | 6 |
Less than Twelve Months, Fair Value | $ 2,050 | $ 0 |
Less than 12 Months, Unrealized Losses | (29) | 0 |
Twelve Months or Longer, Fair Value | 228 | 1,440 |
12 Months or Longer, Unrealized Losses | (13) | (20) |
Total Fair Value | 2,277 | 1,440 |
Total Unrealized Losses | $ (42) | $ (20) |
6. Loans and Allowance For Lo40
6. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Commercial and industrial | $ 4,089 | $ 4,635 |
Commercial real estate | 28,262 | 31,556 |
Consumer real estate | 3,039 | 3,297 |
Consumer loans other | 1,296 | 1,373 |
Loans, net | $ 36,686 | $ 40,861 |
6. Loans and Allowance For Lo41
6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Beginning balance | $ 680,000 | $ 626,000 | $ 735,000 | $ 839,000 | |
Provision (credit) for loan losses | (40,000) | 30,000 | (100,000) | 70,000 | |
Charge-offs | (50,000) | (11,000) | (62,000) | (271,000) | |
Recoveries | 7,000 | 12,000 | 23,000 | 19,000 | |
Net recoveries | (43,000) | 1,000 | (39,000) | (252,000) | |
Ending balance | 596,000 | 657,000 | 596,000 | 657,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 267,000 | 267,000 | $ 274,000 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 329,000 | 329,000 | 461,000 | ||
Period-end amount allocated to: Total | 595,718 | 595,718 | 734,567 | ||
Loans, ending balance: Loans individually evaluated for impairment | 1,782,000 | 1,782,000 | 2,005,000 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 34,904,000 | 34,904,000 | 38,856,000 | ||
Loans, ending balance: Total | 36,686,522 | 36,686,522 | 40,861,890 | ||
Commercial And Industrial | |||||
Beginning balance | 344,000 | 296,000 | 403,000 | 483,000 | |
Provision (credit) for loan losses | 24,000 | 1,000 | (36,000) | 65,000 | |
Charge-offs | (48,000) | 0 | (48,000) | (253,000) | |
Recoveries | 0 | 0 | 1,000 | 2,000 | |
Net recoveries | (48,000) | 0 | (47,000) | (251,000) | |
Ending balance | 320,000 | 297,000 | 320,000 | 297,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 220,000 | 220,000 | 247,000 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 100,000 | 100,000 | 156,000 | ||
Period-end amount allocated to: Total | 320,000 | 320,000 | 403,000 | ||
Loans, ending balance: Loans individually evaluated for impairment | 383,000 | 383,000 | 382,000 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 3,706,000 | 3,706,000 | 4,253,000 | ||
Loans, ending balance: Total | 4,089,000 | 4,089,000 | 4,635,000 | ||
Commercial Real Estate Portfolio Segment | |||||
Beginning balance | 300,000 | 297,000 | 300,000 | 280,000 | |
Provision (credit) for loan losses | (64,000) | (2,000) | (64,000) | 15,000 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 236,000 | 295,000 | 236,000 | 295,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 47,000 | 47,000 | 27,000 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 189,000 | 189,000 | 273,000 | ||
Period-end amount allocated to: Total | 236,000 | 236,000 | 300,000 | ||
Loans, ending balance: Loans individually evaluated for impairment | 1,399,000 | 1,399,000 | 1,623,000 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 26,863,000 | 26,863,000 | 29,933,000 | ||
Loans, ending balance: Total | 28,262,000 | 28,262,000 | 31,556,000 | ||
Consumer Real Estate | |||||
Beginning balance | 21,000 | 20,000 | 20,000 | 59,000 | |
Provision (credit) for loan losses | 0 | 31,000 | 0 | (10,000) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 2,000 | 1,000 | 3,000 | 3,000 | |
Net recoveries | 2,000 | 1,000 | 3,000 | 3,000 | |
Ending balance | 23,000 | 52,000 | 23,000 | 52,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 23,000 | 23,000 | 20,000 | ||
Period-end amount allocated to: Total | 23,000 | 23,000 | 20,000 | ||
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 3,039,000 | 3,039,000 | 3,297,000 | ||
Loans, ending balance: Total | 3,039,000 | 3,039,000 | 3,297,000 | ||
Consumer And Other Loans | |||||
Beginning balance | 15,000 | 13,000 | 12,000 | 17,000 | |
Provision (credit) for loan losses | 0 | 0 | 0 | ||
Charge-offs | (2,000) | (11,000) | (14,000) | (18,000) | |
Recoveries | 4,000 | 11,000 | 19,000 | 14,000 | |
Net recoveries | 2,000 | 0 | 5,000 | (4,000) | |
Ending balance | 17,000 | $ 13,000 | 17,000 | $ 13,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 17,000 | 17,000 | 12,000 | ||
Period-end amount allocated to: Total | 17,000 | 17,000 | 12,000 | ||
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 1,296,000 | 1,296,000 | 1,373,000 | ||
Loans, ending balance: Total | $ 1,296,000 | $ 1,296,000 | $ 1,373,000 |
6. Loans and Allowance For Lo42
6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Past Due Loans | $ 2,909,000 | $ 3,063,000 |
Nonaccrual | 2,253,000 | 2,481,000 |
Current Loans | 33,751,000 | 37,798,000 |
Total Loans | 36,686,522 | 40,861,890 |
Commercial And Industrial | ||
Past Due Loans | 243,000 | 296,000 |
Nonaccrual | 243,000 | 296,000 |
Current Loans | 3,846,000 | 4,339,000 |
Total Loans | 4,089,000 | 4,635,000 |
Commercial And Industrial | Commercial | ||
Past Due Loans | 243,000 | 248,000 |
Nonaccrual | 243,000 | 248,000 |
Current Loans | 2,245,000 | 2,315,000 |
Total Loans | 2,488,000 | 2,563,000 |
Commercial And Industrial | SBA Loans | ||
Past Due Loans | 0 | 48,000 |
Nonaccrual | 0 | 48,000 |
Current Loans | 156,000 | 120,000 |
Total Loans | 156,000 | 168,000 |
Commercial And Industrial | Asset Based Loans | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 1,445,000 | 1,904,000 |
Total Loans | 1,445,000 | 1,904,000 |
Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 1,796,000 | 1,723,000 |
Nonaccrual | 1,575,000 | 1,623,000 |
Current Loans | 26,466,000 | 29,833,000 |
Total Loans | 28,262,000 | 31,556,000 |
Commercial Real Estate Portfolio Segment | SBA Loans | ||
Past Due Loans | 112,000 | 118,000 |
Nonaccrual | 112,000 | 118,000 |
Current Loans | 405,000 | 407,000 |
Total Loans | 517,000 | 525,000 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Past Due Loans | 1,196,000 | 1,085,000 |
Nonaccrual | 975,000 | 985,000 |
Current Loans | 12,956,000 | 14,385,000 |
Total Loans | 14,152,000 | 15,470,000 |
Commercial Real Estate Portfolio Segment | Construction | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 2,321,000 | 3,423,000 |
Total Loans | 2,321,000 | 3,423,000 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Past Due Loans | 488,000 | 520,000 |
Nonaccrual | 488,000 | 520,000 |
Current Loans | 10,784,000 | 11,618,000 |
Total Loans | 11,272,000 | 12,138,000 |
Consumer Real Estate | ||
Past Due Loans | 689,000 | 808,000 |
Nonaccrual | 435,000 | 562,000 |
Current Loans | 2,350,000 | 2,489,000 |
Total Loans | 3,039,000 | 3,297,000 |
Consumer Real Estate | Home Equity Line of Credit | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 22,000 | 22,000 |
Total Loans | 22,000 | 22,000 |
Consumer Real Estate | Home Equity Loans | ||
Past Due Loans | 559,000 | 614,000 |
Nonaccrual | 360,000 | 368,000 |
Current Loans | 444,000 | 433,000 |
Total Loans | 1,003,000 | 1,047,000 |
Consumer Real Estate | 1-4 family residential mortgages | ||
Past Due Loans | 130,000 | 194,000 |
Nonaccrual | 75,000 | 194,000 |
Current Loans | 1,884,000 | 2,034,000 |
Total Loans | 2,014,000 | 2,228,000 |
Total Real Estate | ||
Past Due Loans | 2,485,000 | 2,531,000 |
Nonaccrual | 2,010,000 | 2,185,000 |
Current Loans | 28,799,000 | 32,322,000 |
Total Loans | 31,301,000 | 34,853,000 |
Consumer And Other Loans | ||
Past Due Loans | 181,000 | 236,000 |
Nonaccrual | 0 | 0 |
Current Loans | 1,115,000 | 1,137,000 |
Total Loans | 1,296,000 | 1,373,000 |
Consumer And Other Loans | Consumer Installment | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 0 | 7,000 |
Total Loans | 0 | 7,000 |
Consumer And Other Loans | Student Loans | ||
Past Due Loans | 180,000 | 224,000 |
Nonaccrual | 0 | 0 |
Current Loans | 979,000 | 997,000 |
Total Loans | 1,159,000 | 1,221,000 |
Consumer And Other Loans | Other | ||
Past Due Loans | 1,000 | 12,000 |
Nonaccrual | 0 | 0 |
Current Loans | 136,000 | 133,000 |
Total Loans | 137,000 | 145,000 |
Loans 30-89 Days Past Due | ||
Past Due Loans | 386,000 | 411,000 |
Loans 30-89 Days Past Due | Commercial And Industrial | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Commercial And Industrial | Commercial | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Commercial And Industrial | SBA Loans | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Commercial And Industrial | Asset Based Loans | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 167,000 | 17,000 |
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Past Due Loans | 167,000 | 17,000 |
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | Construction | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Consumer Real Estate | ||
Past Due Loans | 128,000 | 246,000 |
Loans 30-89 Days Past Due | Consumer Real Estate | Home Equity Line of Credit | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Consumer Real Estate | Home Equity Loans | ||
Past Due Loans | 73,000 | 246,000 |
Loans 30-89 Days Past Due | Consumer Real Estate | 1-4 family residential mortgages | ||
Past Due Loans | 55,000 | 0 |
Loans 30-89 Days Past Due | Total Real Estate | ||
Past Due Loans | 295,000 | 263,000 |
Loans 30-89 Days Past Due | Consumer And Other Loans | ||
Past Due Loans | 91,000 | 148,000 |
Loans 30-89 Days Past Due | Consumer And Other Loans | Consumer Installment | ||
Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Consumer And Other Loans | Student Loans | ||
Past Due Loans | 90,000 | 136,000 |
Loans 30-89 Days Past Due | Consumer And Other Loans | Other | ||
Past Due Loans | 1,000 | 12,000 |
Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 270,000 | 171,000 |
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | Commercial | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | SBA Loans | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | Asset Based Loans | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 54,000 | 83,000 |
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Past Due Loans | 54,000 | 83,000 |
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | Construction | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | ||
Past Due Loans | 126,000 | 0 |
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | Home Equity Line of Credit | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | Home Equity Loans | ||
Past Due Loans | 126,000 | 0 |
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | 1-4 family residential mortgages | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Total Real Estate | ||
Past Due Loans | 180,000 | 83,000 |
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | ||
Past Due Loans | 90,000 | 88,000 |
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | Consumer Installment | ||
Past Due Loans | 0 | 0 |
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | Student Loans | ||
Past Due Loans | 90,000 | 88,000 |
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | Other | ||
Past Due Loans | $ 0 | $ 0 |
6. Loans and Allowance For Lo43
6. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Commercial real estate | $ 28,262,000 | $ 31,556,000 |
Consumer real estate | 3,039,000 | 3,297,000 |
Consumer loans other | 1,296,000 | 1,373,000 |
Total loans | 36,686,000 | 40,861,000 |
Total Loans | 36,686,522 | 40,861,890 |
Commercial And Industrial | ||
Total Loans | 4,089,000 | 4,635,000 |
Commercial And Industrial | Commercial | ||
Total Loans | 2,488,000 | 2,563,000 |
Commercial And Industrial | SBA Loans | ||
Total Loans | 156,000 | 168,000 |
Commercial Real Estate Portfolio Segment | ||
Total Loans | 28,262,000 | 31,556,000 |
Commercial Real Estate Portfolio Segment | SBA Loans | ||
Total Loans | 517,000 | 525,000 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Total Loans | 14,152,000 | 15,470,000 |
Commercial Real Estate Portfolio Segment | Construction | ||
Total Loans | 2,321,000 | 3,423,000 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Total Loans | 11,272,000 | 12,138,000 |
Consumer Real Estate | ||
Total Loans | 3,039,000 | 3,297,000 |
Consumer And Other Loans | ||
Total Loans | 1,296,000 | 1,373,000 |
Good/Excellent | ||
Total commercial loans | 250,000 | 300,000 |
Good/Excellent | Commercial And Industrial | ||
Total commercial loans | 250,000 | |
Good/Excellent | Commercial And Industrial | Commercial | ||
Total commercial loans | 250,000 | 300,000 |
Good/Excellent | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 0 | 0 |
Good/Excellent | Commercial And Industrial | Asset Based | ||
Total commercial loans | 0 | 0 |
Good/Excellent | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 0 | 0 |
Good/Excellent | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 0 | 0 |
Good/Excellent | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 0 | 0 |
Good/Excellent | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 0 | 0 |
Good/Excellent | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 0 | 0 |
Satisfactory | ||
Total commercial loans | 25,856,000 | 29,549,000 |
Satisfactory | Commercial And Industrial | ||
Total commercial loans | 2,606,000 | |
Satisfactory | Commercial And Industrial | Commercial | ||
Total commercial loans | 1,322,000 | 1,321,000 |
Satisfactory | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 10,000 | 80,000 |
Satisfactory | Commercial And Industrial | Asset Based | ||
Total commercial loans | 1,274,000 | 1,734,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 23,250,000 | 26,414,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 238,000 | 237,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 11,794,000 | 13,024,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 2,321,000 | 3,423,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 8,897,000 | 9,730,000 |
Pass | ||
Total commercial loans | 2,714,000 | 2,677,000 |
Pass | Commercial And Industrial | ||
Total commercial loans | 684,000 | |
Pass | Commercial And Industrial | Commercial | ||
Total commercial loans | 453,000 | 474,000 |
Pass | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 106,000 | 0 |
Pass | Commercial And Industrial | Asset Based | ||
Total commercial loans | 125,000 | 124,000 |
Pass | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 2,030,000 | 2,079,000 |
Pass | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 167,000 | 170,000 |
Pass | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 701,000 | 724,000 |
Pass | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 0 | 0 |
Pass | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 1,162,000 | 1,185,000 |
Special Mention | ||
Total commercial loans | 780,000 | 980,000 |
Special Mention | Commercial And Industrial | ||
Total commercial loans | 0 | |
Special Mention | Commercial And Industrial | Commercial | ||
Total commercial loans | 0 | 220,000 |
Special Mention | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 0 | 0 |
Special Mention | Commercial And Industrial | Asset Based | ||
Total commercial loans | 0 | 0 |
Special Mention | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 780,000 | 760,000 |
Special Mention | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 0 | 0 |
Special Mention | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 55,000 | 57,000 |
Special Mention | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 0 | 0 |
Special Mention | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 725,000 | 703,000 |
Substandard | ||
Total commercial loans | 2,302,000 | 2,233,000 |
Substandard | Commercial And Industrial | ||
Total commercial loans | 416,000 | |
Substandard | Commercial And Industrial | Commercial | ||
Total commercial loans | 330,000 | 113,000 |
Substandard | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 40,000 | 88,000 |
Substandard | Commercial And Industrial | Asset Based | ||
Total commercial loans | 46,000 | 46,000 |
Substandard | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 1,886,000 | 1,986,000 |
Substandard | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 112,000 | 118,000 |
Substandard | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 1,286,000 | 1,348,000 |
Substandard | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 0 | 0 |
Substandard | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 488,000 | 520,000 |
Doubtful | ||
Total commercial loans | 449,000 | 452,000 |
Doubtful | Commercial And Industrial | ||
Total commercial loans | 133,000 | |
Doubtful | Commercial And Industrial | Commercial | ||
Total commercial loans | 133,000 | 135,000 |
Doubtful | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 0 | 0 |
Doubtful | Commercial And Industrial | Asset Based | ||
Total commercial loans | 0 | 0 |
Doubtful | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 316,000 | 317,000 |
Doubtful | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 0 | 0 |
Doubtful | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 316,000 | 317,000 |
Doubtful | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 0 | 0 |
Doubtful | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 0 | 0 |
Total | ||
Total commercial loans | 32,351,000 | 36,191,000 |
Consumer real estate | 3,039,000 | |
Consumer loans other | 1,296,000 | |
Total consumer loans | 4,335,000 | 4,670,000 |
Total | Commercial And Industrial | ||
Total commercial loans | 4,089,000 | |
Total | Commercial And Industrial | Commercial | ||
Total commercial loans | 2,488,000 | 2,563,000 |
Total | Commercial And Industrial | SBA Loans | ||
Total commercial loans | 156,000 | 168,000 |
Total | Commercial And Industrial | Asset Based | ||
Total commercial loans | 1,445,000 | 1,904,000 |
Total | Commercial Real Estate Portfolio Segment | ||
Commercial real estate | 28,262,000 | 31,556,000 |
Total | Commercial Real Estate Portfolio Segment | SBA Loans | ||
Commercial real estate | 517,000 | 525,000 |
Total | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Commercial real estate | 14,152,000 | 15,470,000 |
Total | Commercial Real Estate Portfolio Segment | Construction | ||
Commercial real estate | 2,321,000 | 3,423,000 |
Total | Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Commercial real estate | 11,272,000 | 12,138,000 |
Total | Consumer Real Estate | Home Equity | ||
Consumer real estate | 1,003,000 | 1,047,000 |
Total | Consumer Real Estate | Home Equity Line Of Credit | ||
Consumer real estate | 22,000 | 22,000 |
Total | Consumer Real Estate | 1-4 Family Residential Mortgages | ||
Consumer real estate | 2,014,000 | 2,228,000 |
Total | Consumer And Other Loans | Consumer Installment | ||
Consumer loans other | 1,159,000 | 7,000 |
Total | Consumer And Other Loans | Student Loans | ||
Consumer loans other | 137,000 | 1,221,000 |
Total | Consumer And Other Loans | Other | ||
Consumer loans other | 0 | 145,000 |
Performing | ||
Consumer real estate | 2,604,000 | |
Consumer loans other | 1,295,000 | |
Total consumer loans | 3,900,000 | 4,108,000 |
Performing | Consumer Real Estate | Home Equity | ||
Consumer real estate | 643,000 | 679,000 |
Performing | Consumer Real Estate | Home Equity Line Of Credit | ||
Consumer real estate | 22,000 | 22,000 |
Performing | Consumer Real Estate | 1-4 Family Residential Mortgages | ||
Consumer real estate | 1,939,000 | 2,034,000 |
Performing | Consumer And Other Loans | Consumer Installment | ||
Consumer loans other | 1,159,000 | 7,000 |
Performing | Consumer And Other Loans | Student Loans | ||
Consumer loans other | 137,000 | 1,221,000 |
Performing | Consumer And Other Loans | Other | ||
Consumer loans other | 0 | 145,000 |
Nonperforming | ||
Consumer real estate | 435,000 | |
Consumer loans other | 0 | |
Total consumer loans | 435,000 | 562,000 |
Nonperforming | Consumer Real Estate | Home Equity | ||
Consumer real estate | 360,000 | 368,000 |
Nonperforming | Consumer Real Estate | Home Equity Line Of Credit | ||
Consumer real estate | 0 | 0 |
Nonperforming | Consumer Real Estate | 1-4 Family Residential Mortgages | ||
Consumer real estate | 75,000 | 194,000 |
Nonperforming | Consumer And Other Loans | Consumer Installment | ||
Consumer loans other | 0 | 0 |
Nonperforming | Consumer And Other Loans | Student Loans | ||
Consumer loans other | 0 | 0 |
Nonperforming | Consumer And Other Loans | Other | ||
Consumer loans other | $ 0 | $ 0 |
6. Loans and Allowance For Lo44
6. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Unpaid Contractual Principal Balance | $ 2,034 | $ 2,258 |
Recorded Investment With No Allowance | 1,387 | 1,378 |
Recorded Investment With Allowance | 760 | 627 |
Total Recorded Investment | 1,782 | 2,005 |
Related Allowance | 267 | 274 |
Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 383 | 635 |
Recorded Investment With No Allowance | 165 | 124 |
Recorded Investment With Allowance | 258 | 258 |
Total Recorded Investment | 383 | 382 |
Related Allowance | 220 | 247 |
Commercial And Industrial | Commercial | ||
Unpaid Contractual Principal Balance | 297 | 501 |
Recorded Investment With No Allowance | 125 | 38 |
Recorded Investment With Allowance | 212 | 210 |
Total Recorded Investment | 297 | 248 |
Related Allowance | 212 | 199 |
Commercial And Industrial | SBA Loans | ||
Unpaid Contractual Principal Balance | 40 | 94 |
Recorded Investment With No Allowance | 40 | 46 |
Recorded Investment With Allowance | 0 | 48 |
Total Recorded Investment | 40 | 94 |
Related Allowance | 0 | 48 |
Commercial And Industrial | Asset Based Loans | ||
Unpaid Contractual Principal Balance | 46 | 40 |
Recorded Investment With No Allowance | 0 | 40 |
Recorded Investment With Allowance | 46 | 0 |
Total Recorded Investment | 46 | 40 |
Related Allowance | 8 | 0 |
Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 1,651 | 1,623 |
Recorded Investment With No Allowance | 1,222 | 1,254 |
Recorded Investment With Allowance | 502 | 369 |
Total Recorded Investment | 1,399 | 1,623 |
Related Allowance | 47 | 27 |
Commercial Real Estate Portfolio Segment | SBA Loans | ||
Unpaid Contractual Principal Balance | 112 | 118 |
Recorded Investment With No Allowance | 0 | 118 |
Recorded Investment With Allowance | 112 | 0 |
Total Recorded Investment | 112 | 118 |
Related Allowance | 6 | 0 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||
Unpaid Contractual Principal Balance | 1,051 | 985 |
Recorded Investment With No Allowance | 409 | 616 |
Recorded Investment With Allowance | 390 | 369 |
Total Recorded Investment | 799 | 985 |
Related Allowance | 41 | 27 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ||
Unpaid Contractual Principal Balance | 488 | 520 |
Recorded Investment With No Allowance | 488 | 520 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 488 | 520 |
Related Allowance | $ 0 | $ 0 |
6. Loans and Allowance For Lo45
6. Loans and Allowance For Loan Losses: Interest income on impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Average Recorded Investment | $ 1,854 | $ 1,970 | $ 1,782 | $ 1,938 |
Interest recognized on impaired loans | 2 | 0 | 3 | 2 |
Commercial And Industrial | ||||
Average Recorded Investment | 320 | 230 | 286 | 317 |
Interest recognized on impaired loans | 2 | 0 | 3 | 0 |
Commercial And Industrial | Commercial | ||||
Average Recorded Investment | 201 | 182 | 200 | 269 |
Interest recognized on impaired loans | 0 | 0 | 0 | 0 |
Commercial And Industrial | SBA Loans | ||||
Average Recorded Investment | 46 | 48 | 46 | 48 |
Interest recognized on impaired loans | 1 | 0 | 2 | 0 |
Commercial And Industrial | Asset Based Loans | ||||
Average Recorded Investment | 73 | 0 | 40 | 0 |
Interest recognized on impaired loans | 1 | 0 | 1 | 0 |
Commercial Real Estate Portfolio Segment | ||||
Average Recorded Investment | 1,534 | 1,740 | 1,496 | 1,621 |
Interest recognized on impaired loans | 0 | 0 | 0 | 2 |
Commercial Real Estate Portfolio Segment | SBA Loans | ||||
Average Recorded Investment | 113 | 125 | 112 | 126 |
Interest recognized on impaired loans | 0 | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ||||
Average Recorded Investment | 934 | 998 | 896 | 875 |
Interest recognized on impaired loans | 0 | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ||||
Average Recorded Investment | 487 | 617 | 488 | 620 |
Interest recognized on impaired loans | $ 0 | $ 0 | $ 0 | $ 2 |
7. Other Real Estate Owned_ S46
7. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Other Real Estate, Beginning Balance | $ 707,544 | $ 433,000 | $ 563,543 | $ 433,000 |
Additions, transfers from loans | 59,000 | 0 | 148,000 | 0 |
Sales | (43,000) | (43,000) | 0 | |
Write-ups (downs) | 33,000 | (13,000) | 88,000 | (13,000) |
Other Real Estate, Ending Balance | $ 757,043 | $ 420,000 | $ 757,043 | $ 420,000 |
7. Other Real Estate Owned_ S47
7. Other Real Estate Owned: Schedule of Components Of Other Real Estate Owned (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Other real estate owned | $ 757,043 | $ 707,544 | $ 563,543 | $ 420,000 | $ 433,000 | $ 433,000 |
Commercial Real Estate | ||||||
Other real estate owned | 335,000 | 191,000 | ||||
Residential Real Estate | ||||||
Other real estate owned | $ 422,000 | $ 373,000 |
7. Other Real Estate Owned_ S48
7. Other Real Estate Owned: Schedule of Components of Net Expense of Other Real Estate Owned (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Professional fees | $ 74,964 | $ 74,534 | $ 165,415 | $ 146,140 |
Impairment charges (net) | 88,460 | (13,052) | ||
Total | (23,182) | 24,573 | (63,214) | 37,156 |
Other Real Estate | ||||
Insurance | 4,000 | 7,000 | 8,000 | 11,000 |
Professional fees | 0 | 0 | 0 | 0 |
Real estate taxes | 3,000 | 4,000 | 6,000 | 11,000 |
Utilities | 1,000 | 1,000 | 1,000 | 2,000 |
Other | 0 | 0 | 10,000 | 0 |
Transfer-in write up | (31,000) | 0 | (88,000) | 0 |
Impairment charges (net) | $ 0 | $ 13,000 | $ 0 | $ 13,000 |
8. Fair Value_ Schedule of Fa49
8. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Assets Measured at Fair Value | $ 7,466,000 | $ 8,540,000 |
Loans held for sale, at fair value | 2,924,173 | 6,160,183 |
Loans held at fair value | 1,489,535 | 628,750 |
US Government Agency Securities | ||
Assets Measured at Fair Value | 3,295,000 | 4,036,000 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Assets Measured at Fair Value | 4,041,000 | 4,374,000 |
Investments in money market funds | ||
Assets Measured at Fair Value | 130,000 | 130,000 |
Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 130,000 | 130,000 |
Loans held for sale, at fair value | 0 | 6,160,183 |
Loans held at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | US Government Agency Securities | ||
Assets Measured at Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 | Government Sponsored Enterprises residential mortgage-backed securities | ||
Assets Measured at Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 | Investments in money market funds | ||
Assets Measured at Fair Value | 130,000 | 130,000 |
Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 7,337,000 | 8,410,000 |
Loans held for sale, at fair value | 2,924,173 | 6,160,183 |
Loans held at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | US Government Agency Securities | ||
Assets Measured at Fair Value | 3,295,000 | 4,036,000 |
Fair Value, Inputs, Level 2 | Government Sponsored Enterprises residential mortgage-backed securities | ||
Assets Measured at Fair Value | 4,042,000 | 4,374,000 |
Fair Value, Inputs, Level 2 | Investments in money market funds | ||
Assets Measured at Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | 0 | 0 |
Loans held for sale, at fair value | 0 | 6,160,183 |
Loans held at fair value | 1,489,535 | 628,750 |
Fair Value, Inputs, Level 3 | US Government Agency Securities | ||
Assets Measured at Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 | Government Sponsored Enterprises residential mortgage-backed securities | ||
Assets Measured at Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 | Investments in money market funds | ||
Assets Measured at Fair Value | $ 0 | $ 0 |
8. Fair Value (Details)
8. Fair Value (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Investment securities available-for-sale, at fair value | $ 7,466,244 | $ 8,539,892 |
Loans held at fair value | 1,489,535 | 628,750 |
Loans Held at Fair Value | ||
Balance, Starting | 629,000 | |
Origination of loans | 1,820,000 | |
Principal repayments | (486,000) | |
Change in fair value of financial instruments | (473,000) | |
Balance, Ending | 1,490,000 | 629,000 |
Fair Value, Inputs, Level 3 | ||
Loans held at fair value | $ 1,489,535 | $ 628,750 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Minimum | ||
Constant prepayment rate | 6.63% | 7.58% |
Weighted average discount rate | 7.42% | 9.02% |
Weighted average life | 3 years 6 months 4 days | 3 years 9 months |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Maximum | ||
Constant prepayment rate | 9.31% | 8.52% |
Weighted average discount rate | 9.47% | 9.24% |
Weighted average life | 8 years 9 months 4 days | 4 years 3 months |
8. Fair Value_ Schedule of Fa51
8. Fair Value: Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | $ 1,513 | $ 1,731 |
Total fair value loss during the year | 0 | (142) |
Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 757 | 564 |
Total fair value loss during the year | 88 | (13) |
Fair Value, Inputs, Level 1 | Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 | Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 0 | |
Fair Value, Inputs, Level 2 | Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 0 | |
Fair Value, Inputs, Level 3 | Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 1,513 | 1,731 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | $ 757 | $ 564 |
8. Fair Value_ Schedule of Fa52
8. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Assets: | |||||
Cash and cash equivalents | $ 8,322,227 | $ 3,236,582 | $ 5,809,559 | $ 5,789,778 | |
Available for sale securities | 7,466,244 | 8,539,892 | |||
Loans held for sale | 2,924,173 | 6,160,183 | |||
Loans held at fair value | 1,489,535 | 628,750 | |||
Loans, net of allowance for loan losses | 36,090,804 | 40,127,323 | |||
Liabilities: | |||||
Savings deposits | 11,678,718 | 12,091,282 | |||
Accrued interest payable | 14,154 | 16,253 | |||
Fair Value, Inputs, Level 1 | |||||
Assets: | |||||
Loans held for sale | 0 | 6,160,183 | |||
Loans held at fair value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | |||||
Assets: | |||||
Loans held for sale | 2,924,173 | 6,160,183 | |||
Loans held at fair value | 0 | 0 | |||
Fair Value, Inputs, Level 3 | |||||
Assets: | |||||
Loans held for sale | 0 | 6,160,183 | |||
Loans held at fair value | 1,489,535 | 628,750 | |||
Carrying Amount | |||||
Assets: | |||||
Available for sale securities | [1] | 7,466,244 | 8,539,892 | ||
Carrying Amount | Fair Value, Inputs, Level 1 | |||||
Assets: | |||||
Cash and cash equivalents | 8,322,000 | 3,237,000 | |||
Carrying Amount | Fair Value, Inputs, Level 2 | |||||
Assets: | |||||
Loans held for sale | 2,924,173 | 2,415,669 | |||
Loans, net of allowance for loan losses | [2] | 36,686,522 | 40,127,323 | ||
Accrued interest receivable | 231,180 | 249,571 | |||
Liabilities: | |||||
Demand Deposits | 28,398,000 | 28,723,000 | |||
Savings deposits | 11,679,000 | 12,091,000 | |||
Time deposits | 14,928,000 | 16,148,000 | |||
Accrued interest payable | 14,000 | 16,000 | |||
Carrying Amount | Fair Value, Inputs, Level 3 | |||||
Assets: | |||||
Loans held at fair value | 1,489,535 | 628,750 | |||
Fair Value | |||||
Assets: | |||||
Available for sale securities | [1] | 7,466,244 | 8,539,892 | ||
Fair Value | Fair Value, Inputs, Level 1 | |||||
Assets: | |||||
Cash and cash equivalents | 8,322,000 | 3,237,000 | |||
Fair Value | Fair Value, Inputs, Level 2 | |||||
Assets: | |||||
Loans held for sale | 2,924,173 | 6,160,183 | |||
Loans, net of allowance for loan losses | [2] | 35,832,000 | 40,069,000 | ||
Accrued interest receivable | 231,180 | 249,571 | |||
Liabilities: | |||||
Demand Deposits | 28,398,000 | 28,723,000 | |||
Savings deposits | 11,679,000 | 12,091,000 | |||
Time deposits | 14,939,000 | 16,157,000 | |||
Accrued interest payable | 14,000 | 16,000 | |||
Fair Value | Fair Value, Inputs, Level 3 | |||||
Assets: | |||||
Loans held at fair value | $ 1,489,535 | $ 628,750 | |||
[1] | Level 1 for money market funds; Level 2 for all other securities. | ||||
[2] | Level 2 for non-impaired loans; Level 3 for impaired loans. |
9. Regulatory_ The requiremen53
9. Regulatory: The requirements and status of items included in the Consent Orders (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Details | |
Description of Regulatory Requirements, Prompt Corrective Action | Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period; |
9. Regulatory (Details)
9. Regulatory (Details) - BankMember | Jun. 30, 2015 | Dec. 31, 2014 |
Tier One Leverage Capital Ratio | 5.12% | 5.18% |
Risk Based Capital Ratio | 9.37% | 8.60% |