Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Nov. 30, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | UNITED BANCSHARES INC /PA | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 944,792 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 826,921 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | uboh |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | ||
Assets | ||||
Cash and due from banks | $ 2,009,676 | $ 2,107,359 | ||
Interest-bearing deposits with banks | 311,012 | 310,739 | ||
Federal funds sold | 2,902,000 | 8,364,000 | ||
Cash and cash equivalents | 5,222,688 | 10,782,098 | ||
Investment securities available-for-sale, at fair value | 6,702,889 | 7,572,029 | ||
Loans held for sale | 7,136,996 | 3,260,761 | ||
Loans held at fair value | 3,237,904 | 2,458,930 | ||
Loans, net of unearned discounts and deferred fees | 30,713,493 | 33,519,042 | ||
Less allowance for loan losses | (354,563) | (418,013) | ||
Net loans | 30,358,930 | 33,101,029 | ||
Bank premises and equipment, net | 462,764 | 492,730 | ||
Accrued interest receivable | 202,565 | 175,416 | ||
Other real estate owned | 446,777 | 479,627 | ||
Core Deposit intangible | 251,582 | 199,781 | ||
Prepaid expenses and other assets | 478,041 | 461,837 | ||
Total assets | 54,501,137 | 58,984,238 | ||
Liabilities: | ||||
Demand deposits, noninterest-bearing | 16,045,953 | 16,417,150 | ||
Demand deposits, interest-bearing | 12,372,375 | 13,605,888 | ||
Savings deposits | 11,322,524 | 11,680,878 | ||
Time deposits, under $100,000 | 4,002,748 | 7,505,729 | ||
Time deposits, $100,000 and over | 7,563,345 | 6,752,759 | ||
Total deposits | 51,306,945 | 55,962,404 | ||
Accrued interest payable | 12,998 | 9,157 | ||
Accrued expenses and other liabilities | 294,812 | 332,915 | ||
Total liabilities | 51,614,756 | 56,304,476 | ||
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 | 993 | 993 | ||
Additional paid-in-capital | 14,752,644 | 14,752,644 | ||
Accumulated deficit | (11,946,971) | (12,062,818) | ||
Accumulated other comprehensive loss | 71,261 | (19,326) | ||
Total shareholders' equity | 2,886,382 | 2,679,762 | ||
Total liabilities and shareholders' equity | 54,501,137 | 58,984,238 | ||
Class B Non-voting Common Stock | ||||
Shareholders' equity: | ||||
Common stock | 0 | 0 | [1] | |
Common Stock | ||||
Shareholders' equity: | ||||
Common stock | [2] | $ 8,269 | $ 8,269 | |
[1] | Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value; 191,667 issued and outstanding at December 31, 2015 | |||
[2] | Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding at June 30, 2016 and 876,921 issued and outstanding at December 31, 2015 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 99,442 | 99,442 |
Preferred stock, shares outstanding | 99,442 | 99,442 |
Preferred stock, Dividend Rate | 6.00% | 6.00% |
Common Stock | ||
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 | 826,921 |
Common stock, shares outstanding | 826,921 | 826,921 |
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 | 191,667 |
Common stock, shares outstanding | 191,667 | 191,667 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Interest and fees on loans | $ 689,160 | $ 582,012 | $ 1,228,940 | $ 1,244,690 |
Interest on investment securities | 40,699 | 44,843 | 84,952 | 92,591 |
Interest on federal funds sold | 7,585 | 2,968 | 17,227 | 4,259 |
Interest on time deposits with other banks | 171 | 164 | 290 | 326 |
Total interest income | 737,615 | 629,987 | 1,331,409 | 1,341,866 |
Interest expense: | ||||
Interest on time deposits | 8,852 | 9,837 | 17,356 | 19,792 |
Interest on demand deposits | 5,987 | 6,162 | 12,099 | 12,279 |
Interest on savings deposits | 1,398 | 1,465 | 2,816 | 2,937 |
Total interest expense | 16,237 | 17,464 | 32,271 | 35,008 |
Net interest income | 721,378 | 612,523 | 1,299,138 | 1,306,858 |
(Credit) provision for loan losses | 30,000 | (40,000) | (5,000) | (100,000) |
Net interest income after provision for loan losses | 691,378 | 652,523 | 1,304,138 | 1,406,858 |
Noninterest income: | ||||
Customer service fees | 90,412 | 139,274 | 176,267 | 235,552 |
ATM fee income | 29,294 | 31,745 | 56,014 | 63,149 |
Gain on sale of loans | 99,414 | 0 | 311,973 | 473,706 |
Loss on sale of other real estate | 0 | (2,289) | (2,495) | (2,289) |
Net change in fair value of financial instruments | 0 | 32,143 | (73,873) | (238,431) |
Loan syndication fees | 0 | 85,000 | 0 | 85,000 |
Other income | 486,485 | 21,633 | 524,159 | 26,610 |
Total noninterest income | 705,605 | 307,506 | 992,045 | 643,297 |
Noninterest expense: | ||||
Salaries, wages and employee benefits | 372,676 | 404,366 | 764,616 | 803,379 |
Occupancy and equipment | 240,481 | 249,740 | 478,637 | 502,244 |
Office operations and supplies | 83,114 | 81,922 | 166,414 | 150,382 |
Marketing and public relations | 11,325 | 8,337 | 27,720 | 26,189 |
Professional services | 75,973 | 74,964 | 149,131 | 165,415 |
Data processing | 100,547 | 89,615 | 209,295 | 187,087 |
Other real estate expense | 22,800 | (23,182) | 57,000 | (63,214) |
Loan and collection costs | 23,929 | 46,490 | 37,561 | 103,771 |
Deposit insurance assessments | 30,174 | 34,200 | 58,576 | 66,400 |
Other operating | 119,612 | 111,526 | 231,198 | 211,598 |
Total noninterest expense | 1,080,631 | 1,077,978 | 2,180,148 | 2,153,251 |
Net loss before income taxes | 316,352 | (117,949) | 116,035 | (103,096) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net profit (loss) | $ 316,352 | $ (117,949) | $ 116,035 | $ (103,096) |
Net loss per common share-basic and diluted | $ 0.38 | $ (0.14) | $ 0.14 | $ (0.10) |
Weighted average number of common shares outstanding | 826,921 | 826,921 | 826,921 | 986,262 |
Comprehensive loss: | ||||
Net profit (loss) | $ 316,352 | $ (117,949) | $ 116,035 | $ (103,096) |
Unrealized (losses) gains on available for sale securities | 26,639 | (78,421) | 90,586 | (21,233) |
Total comprehensive profit (loss) | $ 342,991 | $ (196,370) | $ 206,621 | $ (124,329) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ 116,035 | $ (103,096) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
(Credit) provision for loan losses | (5,000) | (100,000) |
Amortization of premiums on investments | 7,111 | 9,083 |
Proceeds from sale of other real estate | 30,355 | 40,913 |
Depreciation on fixed assets | 92,791 | 88,678 |
Net change in fair value of financial instruments | (73,873) | 238,431 |
Gain on sale of loans | (311,973) | (473,706) |
Loss on sale of other real estate | 2,495 | 2,289 |
Write-down of other real estate owned | 0 | (88,460) |
Proceeds from the sale of loans held-for-sale | 3,137,250 | 4,407,339 |
Amortization of servicing asset | 11,317 | 0 |
Loans originated for sale | (7,406,612) | (1,823,367) |
(Increase) decrease in accrued interest receivable and other assets | (106,471) | (180,910) |
Increase (decrease) in accrued interest payable and other liabilities | (34,262) | (4,937) |
Net cash provided by operating activities | (4,540,837) | 2,012,257 |
Cash flows from investing activities: | ||
Proceeds from maturity and principal reductions of available-for-sale investment securities | 3,302,847 | 1,064,615 |
Purchase of securities available-for-sale | (2,350,234) | (49) |
Net decrease (increase) in loans | 2,747,098 | 4,014,805 |
Purchase of bank premises and equipment | (62,825) | (48,464) |
Net cash provided by (used in) investing activities | 3,636,886 | 5,030,907 |
Cash flows from financing activities: | ||
Net decrease in deposits | (4,655,459) | (1,957,519) |
Net cash used in financing activities | (4,655,459) | (1,957,519) |
Net increase in cash and cash equivalents | (5,559,410) | 5,085,645 |
Cash and cash equivalents at beginning of period | 10,782,098 | 3,236,582 |
Cash and cash equivalents at end of period | 5,222,688 | 8,322,227 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 28,430 | 37,107 |
Noncash transfer of loans to other real estate | $ 0 | $ 148,241 |
1. Significant Accounting Polic
1. Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
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, 2015 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, 2016 and December 31, 2015 and the consolidated results of its operations and its cash flows for the three and six months ended June 30, 2016 and 2015. 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, 2016 | |
Disclosure Text Block [Abstract] | |
2. Net Loss Per Share | 2. Net Loss Per Share The calculation of net loss per share follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Basic: Net loss available to common shareholders $ 316,352 $ (117,949) $ 116,035 $ (103,096) Average common shares outstanding-basic 826,921 826,921 826,921 986,262 Net loss per share-basic $ 0.38 $ (0.14) $ 0.14 $ (0.10) Diluted: Average common shares-diluted 826,921 826,921 826,921 986,262 Net loss per share-diluted $ 0.38 $ (0.14) $ 0.14 $ (0.10) 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, 2016 | |
Disclosure Text Block [Abstract] | |
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, 2016 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $ 40 $ 13 $ 27 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $ 40 $ 13 $ 27 Three Months Ended June 30, 2015 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $ (104) $ 26 $ (78) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $ (104) $ 26 $ (78) Six Months Ended June 30, 2016 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $ 135 $ 44 $ 91 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $ 135 $ 44 $ 91 Six Months Ended June 30, 2015 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $ (32) $ 11 $ (21) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $ (32) $ 11 $ (21) |
4. New Authoritative Accounting
4. New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
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, 2016 | |
Disclosure Text Block [Abstract] | |
5. Investment Securities | 5. Investment Securities The following is a summary of the Company's investment portfolio: (In 000’s) June 30, 2016 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value Available-for-sale: U.S. Government agency securities $ 2,950 $ 3 $ - $ 2,953 Government Sponsored Enterprises residential mortgage-backed securities 3,517 103 - 3,620 Investments in money market funds 130 - - 130 $6,597 $ 106 $ - $ 6,703 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: U.S. Government agency securities $ 3,697 $ 3 $ (38) $ 3,662 Government Sponsored Enterprises residential mortgage-backed securities 3,774 36 (30) 3,780 Investments in money market funds 130 - - 130 $ 7,601 $ 39 $ (68) $ 7,572 The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2016, are as follows: (In 000’s) Amortized Cost Fair Value Due in one year $- $- Due after one year through five years - - Due after five years through ten years 2,950 2,953 Government Sponsored Enterprises residential mortgage-backed securities 3,517 3,620 Total debt securities 6,467 6,573 Investments in money market funds 130 130 $6,597 $6,703 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, 2016: 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 9 $ 2,703 $ 3 $ - $ - $ 2,703 $ 3 Government Sponsored Enterprises residential mortgage-backed securities 55 2,042 50 53 1,341 3,383 103 Total temporarily impaired investment Securities 64 $ 4,745 $ 53 $ 53 $ 1,341 $ 6,086 $ 106 The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 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 9 $ 2,416 $ (32) $ 243 $ (6) $ 2,659 $ (38) Government Sponsored Enterprises residential mortgage-backed securities 8 1,486 (19) 227 (11) 1,713 (30) Total temporarily impaired investment securities 17 $ 3,902 $ (51) $ 470 $ (17) $ 4,372 $ (68) Government Sponsored Enterprises residential mortgage-backed securities. U.S. Government and Agency Securities. The Company has a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. On a quarterly basis, the Company reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. The Company considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, the intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in value. |
6. Loans and Allowance For Loan
6. Loans and Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
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, 2016 December 31, 2015 Commercial and industrial $ 2,904 $ 3,062 Commercial real estate 24,066 26,414 Consumer real estate 2,709 2,841 Consumer loans other 1,042 1,202 Total loans $ 30,722 $ 33,519 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, 2016 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, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $120 $241 $14 $9 $384 Provision (credit) for loan losses - - - - - Charge-offs - - - - - Recoveries - - - - - Net (charge-offs) recoveries - - - - - Ending balance $87 $245 $13 $10 $355 (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 6 Net (charge-offs) recoveries (48) - 2 2 (44) Ending balance $320 $236 $23 $17 $596 (in 000's) For the Six months ended June 30, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $151 $250 $8 $9 $418 Provision (credit) for loan losses (5) - - - (5) Charge-offs - (41) (22) (3) (66) Recoveries 2 - 2 4 8 Net (charge-offs) recoveries 2 (41) - 1 (58) Ending balance $87 $245 $13 $10 $355 (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) June 30, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 71 $ - $ - $ 71 Loans collectively evaluated for impairment 173 99 2 10 284 $ 173 $ 170 $ 2 $ 10 $ 355 Loans, ending balance: Loans individually evaluated for impairment $ 437 $ 1,747 $ - $ - $ 2,184 Loans collectively evaluated for impairment 2,468 22,319 2,709 1,042 28,538 Total $ 2,905 $ 24,066 $ 2,709 $ 1,042 $ 30,722 December 31, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 91 $ - $ - $ 91 Loans collectively evaluated for impairment 151 159 8 9 327 $ 151 $ 50 $ 8 $ 9 $ 418 Loans, ending balance: Loans individually evaluated for impairment $ 439 $ 2,076 $ - $ - $ 2,515 Loans collectively evaluated for impairment 2,623 24,338 2,841 1,202 31,004 Total $ 3,062 $ 26,414 $ 2,841 $ 1,202 $ 33,519 Nonperforming and Nonaccrual and Past Due Loans An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 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 $ - $ - $ 109 $ 109 $ 1,348 $ 1,457 SBA loans - - 39 39 - 39 Asset-based - - 289 289 1,120 1,409 Total Commercial and industrial - - 437 437 2,468 2,905 Commercial real estate: Commercial mortgages - 18 1,280 1,298 11,538 12,836 SBA loans - - 263 263 325 588 Construction - - - - 1,250 1,250 Religious organizations - - 204 204 9,188 9,392 Total Commercial real estate - 18 1,747 1,765 22,301 24,066 Consumer real estate: Home equity loans - 147 333 480 353 833 Home equity lines of credit - - - - 20 20 1-4 family residential mortgages - - 129 129 1,727 1,856 Total consumer real estate - 147 462 609 2,100 2,709 Total real estate - 165 2,209 2,374 24,401 26,775 Consumer and other: Consumer installment - - - - - - Student loans 24 71 - 95 826 921 Other - 1 - 1 120 121 Total consumer and other 24 72 - 96 946 1,042 Total loans $ 24 $ 237 $ 2,646 $ 2,907 $ 27,815 $ 30,722 An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 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 $ - $ - $ 110 $ 110 $ 1,425 $ 1,535 SBA loans - - 40 40 - 40 Asset-based 11 - 289 300 1,187 1,487 Total Commercial and industrial 11 - 439 450 2,612 3,062 Commercial real estate: Commercial mortgages 169 39 1,335 1,543 12,231 13,774 SBA loans - - 271 271 82 353 Construction - - - - 2,175 2,175 Religious organizations - - 471 471 9,641 10,112 Total Commercial real estate 169 39 2,077 2,285 24,129 26,414 Consumer real estate: Home equity loans 56 125 358 539 358 897 Home equity lines of credit - - - - 20 20 1-4 family residential mortgages 35 - 129 164 1,760 1,924 Total consumer real estate 91 125 487 703 2,138 2,841 Total real estate 260 164 2,564 2,988 26,267 29,255 Consumer and other: Consumer installment - - - - - - Student loans 66 129 - 195 886 1,081 Other 2 - - 2 119 121 Total consumer and other 68 129 - 197 1,005 1,202 Total loans $ 339 $ 293 $ 3,003 $ 3,635 $ 29,884 $ 33,519 Loan Origination/Risk Management Credit Quality Indicators 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, 2016 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 250 $ 894 $ 12 $ 48 $ 253 $ - $ 1,457 SBA loans - - - - 39 - 39 Asset-based - 834 210 - 289 76 1,409 250 1,728 222 48 581 76 2,905 Commercial real estate: Commercial mortgages - 9,035 1,937 567 1,076 221 12,836 SBA Loans - 325 - - 263 - 588 Construction - 1,250 - - - - 1,250 Religious organizations 35 6,274 1,882 997 204 - 9,392 35 16,884 3,819 1,564 1,543 221 24,066 Total commercial loans $ 285 $ 18,612 $ 4,041 $ 1,612 $ 2,124 $ 297 $ 26,971 Residential Mortgage and Consumer Loans June 30, 2016 Performing Nonperforming Total Consumer Real Estate: Home equity $ 500 $ 333 $ 833 Home equity line of credit 20 - 20 1-4 family residential mortgages 1,727 129 1,856 2,247 462 2,709 Consumer Other: Consumer Installment - - - Student loans 921 - 921 Other 121 - 121 1,042 - 1,042 Total consumer loans $ 3,289 $ 462 $ 3,751 Total loans $ 30,722 (In 000's) Commercial Loans, December 31, 2015 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 285 $ 922 $ 16 $ 58 $ 254 $ - $ 1,535 SBA loans - - - - 40 - 40 Asset-based - 900 222 - 289 76 1,487 285 1,822 238 58 583 76 3,062 Commercial real estate: Commercial mortgages - 10,689 1,098 613 1,151 223 13,774 SBA Loans - 82 - - 271 - 353 Construction - 2,175 - - - - 2,175 Religious organizations - 7,624 1,131 886 471 - 10,112 - 20,570 2,229 1,499 1,893 223 26,414 Total commercial loans $ 285 $ 22,392 $ 2,467 $ 1,557 $ 2,476 $ 299 $ 29,476 Residential Mortgage and Consumer Loans December 31, 2015 Performing Nonperforming Total Consumer Real Estate: Home equity $ 539 $ 358 $ 897 Home equity line of credit 20 - 20 1-4 family residential mortgages 1,795 129 1,924 2,354 487 2,841 Consumer Other: Consumer Installment - - - Student loans 1,081 - 1,081 Other 121 - 121 1,202 - 1,202 Total consumer loans $ 3,556 $ 487 $ 4,043 Total loans $ 33,519 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” impairment for which the underlying collateral value may fluctuate with market conditions. There were no partial charge-offs. 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, 2016 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 $ 109 $ 109 $ - $ 109 $ - SBA Loans 39 39 - 39 - Asset-based 289 46 243 289 - Total commercial and industrial 437 194 243 437 - Commercial real estate: Commercial mortgages 1,280 806 474 1,280 67 SBA Loans 263 163 100 263 4 Religious organizations 204 204 - 204 - Total commercial real estate 1,747 1,173 574 1,747 71 Total loans $ 2,184 $ 1,367 $ 817 $ 2,184 $ 71 Impaired loans as of December 31, 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 $ 818 $ 353 $ - $ 353 $ - SBA loans 46 - 46 46 - Asset-based 40 40 - 40 - Total commercial and industrial 904 393 46 439 - Commercial real estate: Commercial mortgages 1,334 810 524 1,334 91 SBA Loans 271 271 - 271 - Religious organizations 471 471 - 471 - Total commercial real estate 2,076 1,552 524 2,076 91 Total loans $2,980 $ 1,945 $ 570 $ 2,515 $ 91 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, 2016 Three Months Ended June 30, 2015 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ 109 $ - $ 201 $ - SBA loans 39 - 46 1 Asset-based 289 3 73 1 Total commercial and industrial 437 3 320 2 Commercial real estate: Commercial mortgages 1,308 4 934 - SBA loans 264 - 113 - Religious organizations 242 - 487 - Total commercial real estate 1,814 4 1,534 - Total loans $ 2,251 $ 7 $ 1,854 $ 2 (In 000's) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ 109 $ - $ 200 $ - SBA loans 39 - 46 2 Asset-based 289 - 40 1 Total commercial and industrial 437 - 286 3 Commercial real estate: Commercial mortgages 1,097 13 896 - SBA loans 103 5 112 - Religious organizations 348 - 488 - Total commercial real estate 1,548 18 1,496 - Total loans $ 1,985 $ 18 $ 1,782 $ 3 Troubled debt restructurings |
7. Other Real Estate Owned
7. Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
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 Three Months Ended Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Beginning balance $564 $708 $433 $564 Additions, transfers from loans 237 59 477 148 Sales (305) (43) (140) (43) 496 726 770 669 Write-ups (downs) (49) 33 (13) 88 Ending Balance $447 $757 $757 $757 The following schedule reflects the components of other real estate owned: (in 000's) June 30, 2016 December 31, 2015 Commercial real estate $ 316 $ 297 Residential real estate 131 183 Total $ 447 $ 480 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, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Insurance $2 $4 $6 $8 Legal Fees 16 16 Professional fees - 4 Real estate taxes 4 3 10 6 Utilities 1 1 1 1 Other - - - 10 Transfer-in write-up 49 (31) 49 (88) Impairment charges (net) - - - - Total $72 $(23) $86 $(63) |
8. Fair Value
8. Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
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 Level 2 Level 3 A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Value on a Recurring Basis Securities Available for Sale (“AFS”): Loans Held for Sale Loans Held at Fair Value. Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. (in 000’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities available-for-sale: U.S. Government agency securities $ 2,953 $ - $ 2,953 $ - Government Sponsored Enterprises residential mortgage-backed securities 3,620 - 3,620 - Money Market Funds 130 130 - - Total $ 6,703 $ 130 $ 6,573 $ - Loans held for sale $ 7,137 $ - $ 7,137 $ - Loans held at fair value $ 3,238 $ - $ - $ 3,238 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at December 31, 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 $ 3,662 $ - $ 3,662 $ - Government Sponsored Enterprises residential mortgage-backed securities 3,780 - 3,780 - Money Market Funds 130 130 - - Total $ 7,572 $ 130 $ 7,442 $ - Loans held for sale $ 3,261 $ - $ 3,261 $ - Loans held at fair value $ 2,459 $ - $ - $ 2,459 The fair value of the Bank’s AFS securities portfolio was approximately $7,572,000 and $7,442,000 at June 30, 2016 and December 31, 2015, 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, 2016 and 2015. When estimating the fair value of Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows: (in 000’s) Assets measured at fair value June 30, 2016 Fair value December 31, 2015 Fair Value Principal valuation techniques Significant observable inputs June 30, 2016 Range of inputs December 31, 2015 Range of inputs Loans held at fair value: $ 3,238 $ 2,459 Discounted cash flow Constant prepayment rate 7.33% to 10.189 % 7.10% to 9.88% Weighted average discount rate 7.22% to 10.12% 7.76% to 9.94% Weighted average life 3.20yrs to 9.86 yrs 3.40 yrs to 8.78 yrs Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period. The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value: (in 000’s) Loans held at fair value Balance at December 31, 2015 $ 2,459 Origination of loans - Principal repayments - Change in fair value of financial instruments - Balance at June 30, 2016 $ 3,238 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, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2016 and year ended December 31, 2015. Carrying Value at June 30, 2016: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value gain (loss) during 3 months ended Impaired loans $ 2,184 $ - $ - $ 2,184 $ - Other real estate owned (“OREO”) $ 447 $ - $ - $ 447 - Carrying Value at December 31, 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 12 months ended Impaired Loans $ 2,424 $ - $ - $ 2,424 $ - Other real estate owned (“OREO”) $ 480 $ - $ - $ 480 $ 39 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 management’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 assets’ 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 prepayments, amortizations, and non performance risk. Prepayments and discount rates were based on current marketplace estimates and rates. Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value. Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amounts payable on demand at the reporting date (e.g., their carrying amounts). The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate the fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation. The Treasury yield curve was utilized for discounting cash flows as it approximates the average marketplace certificate of deposit rates across the relevant maturity spectrum. Accrued interest payable: The carrying amounts of accrued interest payable approximate fair value. Commitments to extend credit: The carrying amounts for commitments to extend credit approximate fair value as such commitments are not substantially different from the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparts. The carrying amount of accrued interest payable approximates fair market value. The fair value of assets and liabilities are depicted below: June 30, 2016 December 31, 2015 (in 000’s) Level in Carrying Fair Carrying Fair Value Hierarchy Amount Value Amount Value (Dollars in thousands) Assets: Cash and cash equivalents Level 1 $ 5,223 $ 5,223 $ 10,782 $ 10,782 Available for sale securities (1) 6,703 6,703 7,572 7,572 Loans held for sale Level 2 7,137 7,137 3,261 3,261 Loans held at fair value Level 3 3,238 3,238 2,459 2,459 Loans, net of allowance for loan losses (2) 30,359 30,359 33,101 33,082 Accrued interest receivable Level 2 203 203 175 175 Liabilities: Demand deposits Level 2 28,418 28,418 30,022 30,022 Savings deposits Level 2 11,323 11,323 11,681 11,681 Time deposits Level 2 11,566 11,566 14,259 14,242 Accrued interest payable Level 2 13 13 9 9 (1) (2) |
9. Regulatory
9. Regulatory | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
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, 2016 and December 31, 2015, the Bank’s tier one leverage capital ratio was 5.06% and 4.57%, respectively, and its total risk based capital ratio was 8.56% and 8.50%, 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. 2. 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 Pol_2
1. Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policy Text Block [Abstract] | |
Management's Use of Estimates | Management’s Use of Estimates The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities. |
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 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 (Tables)
2. Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
Schedule of Net Loss per Common Share | The calculation of net loss per share follows: Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Basic: Net loss available to common shareholders $ 316,352 $ (117,949) $ 116,035 $ (103,096) Average common shares outstanding-basic 826,921 826,921 826,921 986,262 Net loss per share-basic $ 0.38 $ (0.14) $ 0.14 $ (0.10) Diluted: Average common shares-diluted 826,921 826,921 826,921 986,262 Net loss per share-diluted $ 0.38 $ (0.14) $ 0.14 $ (0.10) |
3. Changes in Accumulated Oth_2
3. Changes in Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
Schedule of Components of Other Comprehensive Income | The following table presents the changes in other comprehensive income: Three Months Ended June 30, 2016 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $ 40 $ 13 $ 27 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $ 40 $ 13 $ 27 Three Months Ended June 30, 2015 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $ (104) $ 26 $ (78) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $ (104) $ 26 $ (78) Six Months Ended June 30, 2016 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized loss on securities: Unrealized holding loss arising during period $ 135 $ 44 $ 91 Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive loss, net $ 135 $ 44 $ 91 Six Months Ended June 30, 2015 Before tax Net of tax (in (000’s) Amount Taxes Amount Unrealized gain on securities: Unrealized holding gain arising during period $ (32) $ 11 $ (21) Less: reclassification adjustment for gains (losses) realized in net loss - - - Other comprehensive income, net $ (32) $ 11 $ (21) |
5. Investment Securities (Table
5. Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following is a summary of the Company's investment portfolio: (In 000’s) June 30, 2016 Gross Gross Amortized Unrealized unrealized Fair Cost Gains losses Value Available-for-sale: U.S. Government agency securities $ 2,950 $ 3 $ - $ 2,953 Government Sponsored Enterprises residential mortgage-backed securities 3,517 103 - 3,620 Investments in money market funds 130 - - 130 $6,597 $ 106 $ - $ 6,703 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale: U.S. Government agency securities $ 3,697 $ 3 $ (38) $ 3,662 Government Sponsored Enterprises residential mortgage-backed securities 3,774 36 (30) 3,780 Investments in money market funds 130 - - 130 $ 7,601 $ 39 $ (68) $ 7,572 |
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, 2016, are as follows: (In 000’s) Amortized Cost Fair Value Due in one year $- $- Due after one year through five years - - Due after five years through ten years 2,950 2,953 Government Sponsored Enterprises residential mortgage-backed securities 3,517 3,620 Total debt securities 6,467 6,573 Investments in money market funds 130 130 $6,597 $6,703 |
Schedule of Unrealized Loss on Investments | The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2016: 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 9 $ 2,703 $ 3 $ - $ - $ 2,703 $ 3 Government Sponsored Enterprises residential mortgage-backed securities 55 2,042 50 53 1,341 3,383 103 Total temporarily impaired investment Securities 64 $ 4,745 $ 53 $ 53 $ 1,341 $ 6,086 $ 106 The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 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 9 $ 2,416 $ (32) $ 243 $ (6) $ 2,659 $ (38) Government Sponsored Enterprises residential mortgage-backed securities 8 1,486 (19) 227 (11) 1,713 (30) Total temporarily impaired investment securities 17 $ 3,902 $ (51) $ 470 $ (17) $ 4,372 $ (68) |
6. Loans and Allowance For Lo_2
6. Loans and Allowance For Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
Schedule of the Composition of Net Loans | (Dollars in thousands) June 30, 2016 December 31, 2015 Commercial and industrial $ 2,904 $ 3,062 Commercial real estate 24,066 26,414 Consumer real estate 2,709 2,841 Consumer loans other 1,042 1,202 Total loans $ 30,722 $ 33,519 |
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, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $120 $241 $14 $9 $384 Provision (credit) for loan losses - - - - - Charge-offs - - - - - Recoveries - - - - - Net (charge-offs) recoveries - - - - - Ending balance $87 $245 $13 $10 $355 (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 6 Net (charge-offs) recoveries (48) - 2 2 (44) Ending balance $320 $236 $23 $17 $596 (in 000's) For the Six months ended June 30, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Beginning balance $151 $250 $8 $9 $418 Provision (credit) for loan losses (5) - - - (5) Charge-offs - (41) (22) (3) (66) Recoveries 2 - 2 4 8 Net (charge-offs) recoveries 2 (41) - 1 (58) Ending balance $87 $245 $13 $10 $355 (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) June 30, 2016 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 71 $ - $ - $ 71 Loans collectively evaluated for impairment 173 99 2 10 284 $ 173 $ 170 $ 2 $ 10 $ 355 Loans, ending balance: Loans individually evaluated for impairment $ 437 $ 1,747 $ - $ - $ 2,184 Loans collectively evaluated for impairment 2,468 22,319 2,709 1,042 28,538 Total $ 2,905 $ 24,066 $ 2,709 $ 1,042 $ 30,722 December 31, 2015 Commercial and industrial Commercial real estate Consumer real estate Consumer loans Other Total Period-end amount allocated to: Loans individually evaluated for impairment $ - $ 91 $ - $ - $ 91 Loans collectively evaluated for impairment 151 159 8 9 327 $ 151 $ 50 $ 8 $ 9 $ 418 Loans, ending balance: Loans individually evaluated for impairment $ 439 $ 2,076 $ - $ - $ 2,515 Loans collectively evaluated for impairment 2,623 24,338 2,841 1,202 31,004 Total $ 3,062 $ 26,414 $ 2,841 $ 1,202 $ 33,519 |
Schedule of Age Analysis of Past Due Loans | An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 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 $ - $ - $ 109 $ 109 $ 1,348 $ 1,457 SBA loans - - 39 39 - 39 Asset-based - - 289 289 1,120 1,409 Total Commercial and industrial - - 437 437 2,468 2,905 Commercial real estate: Commercial mortgages - 18 1,280 1,298 11,538 12,836 SBA loans - - 263 263 325 588 Construction - - - - 1,250 1,250 Religious organizations - - 204 204 9,188 9,392 Total Commercial real estate - 18 1,747 1,765 22,301 24,066 Consumer real estate: Home equity loans - 147 333 480 353 833 Home equity lines of credit - - - - 20 20 1-4 family residential mortgages - - 129 129 1,727 1,856 Total consumer real estate - 147 462 609 2,100 2,709 Total real estate - 165 2,209 2,374 24,401 26,775 Consumer and other: Consumer installment - - - - - - Student loans 24 71 - 95 826 921 Other - 1 - 1 120 121 Total consumer and other 24 72 - 96 946 1,042 Total loans $ 24 $ 237 $ 2,646 $ 2,907 $ 27,815 $ 30,722 An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 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 $ - $ - $ 110 $ 110 $ 1,425 $ 1,535 SBA loans - - 40 40 - 40 Asset-based 11 - 289 300 1,187 1,487 Total Commercial and industrial 11 - 439 450 2,612 3,062 Commercial real estate: Commercial mortgages 169 39 1,335 1,543 12,231 13,774 SBA loans - - 271 271 82 353 Construction - - - - 2,175 2,175 Religious organizations - - 471 471 9,641 10,112 Total Commercial real estate 169 39 2,077 2,285 24,129 26,414 Consumer real estate: Home equity loans 56 125 358 539 358 897 Home equity lines of credit - - - - 20 20 1-4 family residential mortgages 35 - 129 164 1,760 1,924 Total consumer real estate 91 125 487 703 2,138 2,841 Total real estate 260 164 2,564 2,988 26,267 29,255 Consumer and other: Consumer installment - - - - - - Student loans 66 129 - 195 886 1,081 Other 2 - - 2 119 121 Total consumer and other 68 129 - 197 1,005 1,202 Total loans $ 339 $ 293 $ 3,003 $ 3,635 $ 29,884 $ 33,519 |
Schedule of Bank Loans by Class According to Credit Quality | The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above. (In 000's) Commercial Loans June 30, 2016 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 250 $ 894 $ 12 $ 48 $ 253 $ - $ 1,457 SBA loans - - - - 39 - 39 Asset-based - 834 210 - 289 76 1,409 250 1,728 222 48 581 76 2,905 Commercial real estate: Commercial mortgages - 9,035 1,937 567 1,076 221 12,836 SBA Loans - 325 - - 263 - 588 Construction - 1,250 - - - - 1,250 Religious organizations 35 6,274 1,882 997 204 - 9,392 35 16,884 3,819 1,564 1,543 221 24,066 Total commercial loans $ 285 $ 18,612 $ 4,041 $ 1,612 $ 2,124 $ 297 $ 26,971 Residential Mortgage and Consumer Loans June 30, 2016 Performing Nonperforming Total Consumer Real Estate: Home equity $ 500 $ 333 $ 833 Home equity line of credit 20 - 20 1-4 family residential mortgages 1,727 129 1,856 2,247 462 2,709 Consumer Other: Consumer Installment - - - Student loans 921 - 921 Other 121 - 121 1,042 - 1,042 Total consumer loans $ 3,289 $ 462 $ 3,751 Total loans $ 30,722 (In 000's) Commercial Loans, December 31, 2015 Good/ Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Commercial and industrial: Commercial $ 285 $ 922 $ 16 $ 58 $ 254 $ - $ 1,535 SBA loans - - - - 40 - 40 Asset-based - 900 222 - 289 76 1,487 285 1,822 238 58 583 76 3,062 Commercial real estate: Commercial mortgages - 10,689 1,098 613 1,151 223 13,774 SBA Loans - 82 - - 271 - 353 Construction - 2,175 - - - - 2,175 Religious organizations - 7,624 1,131 886 471 - 10,112 - 20,570 2,229 1,499 1,893 223 26,414 Total commercial loans $ 285 $ 22,392 $ 2,467 $ 1,557 $ 2,476 $ 299 $ 29,476 Residential Mortgage and Consumer Loans December 31, 2015 Performing Nonperforming Total Consumer Real Estate: Home equity $ 539 $ 358 $ 897 Home equity line of credit 20 - 20 1-4 family residential mortgages 1,795 129 1,924 2,354 487 2,841 Consumer Other: Consumer Installment - - - Student loans 1,081 - 1,081 Other 121 - 121 1,202 - 1,202 Total consumer loans $ 3,556 $ 487 $ 4,043 Total loans $ 33,519 |
Schedule of Impaired Loans | Impaired loans as of June 30, 2016 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 $ 109 $ 109 $ - $ 109 $ - SBA Loans 39 39 - 39 - Asset-based 289 46 243 289 - Total commercial and industrial 437 194 243 437 - Commercial real estate: Commercial mortgages 1,280 806 474 1,280 67 SBA Loans 263 163 100 263 4 Religious organizations 204 204 - 204 - Total commercial real estate 1,747 1,173 574 1,747 71 Total loans $ 2,184 $ 1,367 $ 817 $ 2,184 $ 71 Impaired loans as of December 31, 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 $ 818 $ 353 $ - $ 353 $ - SBA loans 46 - 46 46 - Asset-based 40 40 - 40 - Total commercial and industrial 904 393 46 439 - Commercial real estate: Commercial mortgages 1,334 810 524 1,334 91 SBA Loans 271 271 - 271 - Religious organizations 471 471 - 471 - Total commercial real estate 2,076 1,552 524 2,076 91 Total loans $2,980 $ 1,945 $ 570 $ 2,515 $ 91 |
Schedule of 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, 2016 Three Months Ended June 30, 2015 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ 109 $ - $ 201 $ - SBA loans 39 - 46 1 Asset-based 289 3 73 1 Total commercial and industrial 437 3 320 2 Commercial real estate: Commercial mortgages 1,308 4 934 - SBA loans 264 - 113 - Religious organizations 242 - 487 - Total commercial real estate 1,814 4 1,534 - Total loans $ 2,251 $ 7 $ 1,854 $ 2 (In 000's) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Average Interest recognized Average Interest recognized Recorded on impaired Recorded on impaired Investment Loans Investment Loans Commercial and industrial: Commercial $ 109 $ - $ 200 $ - SBA loans 39 - 46 2 Asset-based 289 - 40 1 Total commercial and industrial 437 - 286 3 Commercial real estate: Commercial mortgages 1,097 13 896 - SBA loans 103 5 112 - Religious organizations 348 - 488 - Total commercial real estate 1,548 18 1,496 - Total loans $ 1,985 $ 18 $ 1,782 $ 3 |
7. Other Real Estate Owned (Tab
7. Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
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 Three Months Ended Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Beginning balance $564 $708 $433 $564 Additions, transfers from loans 237 59 477 148 Sales (305) (43) (140) (43) 496 726 770 669 Write-ups (downs) (49) 33 (13) 88 Ending Balance $447 $757 $757 $757 |
Schedule of Components of Other Real Estate Owned | The following schedule reflects the components of other real estate owned: (in 000's) June 30, 2016 December 31, 2015 Commercial real estate $ 316 $ 297 Residential real estate 131 183 Total $ 447 $ 480 |
Schedule of Components of Net Expense (income) 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, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Insurance $2 $4 $6 $8 Legal Fees 16 16 Professional fees - 4 Real estate taxes 4 3 10 6 Utilities 1 1 1 1 Other - - - 10 Transfer-in write-up 49 (31) 49 (88) Impairment charges (net) - - - - Total $72 $(23) $86 $(63) |
8. Fair Value (Tables)
8. Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
Schedule of Fair Value of Assets on a Recurring Basis | Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. (in 000’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities available-for-sale: U.S. Government agency securities $ 2,953 $ - $ 2,953 $ - Government Sponsored Enterprises residential mortgage-backed securities 3,620 - 3,620 - Money Market Funds 130 130 - - Total $ 6,703 $ 130 $ 6,573 $ - Loans held for sale $ 7,137 $ - $ 7,137 $ - Loans held at fair value $ 3,238 $ - $ - $ 3,238 (in 000’s) Fair Value Measurements at Reporting Date Using: Assets Measured at Fair Value at December 31, 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 $ 3,662 $ - $ 3,662 $ - Government Sponsored Enterprises residential mortgage-backed securities 3,780 - 3,780 - Money Market Funds 130 130 - - Total $ 7,572 $ 130 $ 7,442 $ - Loans held for sale $ 3,261 $ - $ 3,261 $ - Loans held at fair value $ 2,459 $ - $ - $ 2,459 |
Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments | These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows: (in 000’s) Assets measured at fair value June 30, 2016 Fair value December 31, 2015 Fair Value Principal valuation techniques Significant observable inputs June 30, 2016 Range of inputs December 31, 2015 Range of inputs Loans held at fair value: $ 3,238 $ 2,459 Discounted cash flow Constant prepayment rate 7.33% to 10.189 % 7.10% to 9.88% Weighted average discount rate 7.22% to 10.12% 7.76% to 9.94% Weighted average life 3.20yrs to 9.86 yrs 3.40 yrs to 8.78 yrs Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period. The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value: (in 000’s) Loans held at fair value Balance at December 31, 2015 $ 2,459 Origination of loans - Principal repayments - Change in fair value of financial instruments - Balance at June 30, 2016 $ 3,238 |
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, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2016 and year ended December 31, 2015. Carrying Value at June 30, 2016: (in 000’s) Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total fair value gain (loss) during 3 months ended Impaired loans $ 2,184 $ - $ - $ 2,184 $ - Other real estate owned (“OREO”) $ 447 $ - $ - $ 447 - Carrying Value at December 31, 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 12 months ended Impaired Loans $ 2,424 $ - $ - $ 2,424 $ - Other real estate owned (“OREO”) $ 480 $ - $ - $ 480 $ 39 |
Schedule of Fair Value of Financial Instruments at Year-End | June 30, 2016 December 31, 2015 (in 000’s) Level in Carrying Fair Carrying Fair Value Hierarchy Amount Value Amount Value (Dollars in thousands) Assets: Cash and cash equivalents Level 1 $ 5,223 $ 5,223 $ 10,782 $ 10,782 Available for sale securities (1) 6,703 6,703 7,572 7,572 Loans held for sale Level 2 7,137 7,137 3,261 3,261 Loans held at fair value Level 3 3,238 3,238 2,459 2,459 Loans, net of allowance for loan losses (2) 30,359 30,359 33,101 33,082 Accrued interest receivable Level 2 203 203 175 175 Liabilities: Demand deposits Level 2 28,418 28,418 30,022 30,022 Savings deposits Level 2 11,323 11,323 11,681 11,681 Time deposits Level 2 11,566 11,566 14,259 14,242 Accrued interest payable Level 2 13 13 9 9 |
9. Regulatory (Tables)
9. Regulatory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Table Text Block Supplement [Abstract] | |
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_ Schedule
2. Net Loss Per Share: Schedule of Net Loss per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Text Block [Abstract] | ||||
Net loss available to common shareholders | $ 316,352 | $ (117,949) | $ 116,035 | $ (103,096) |
Average common shares outstanding-basic | 826,921 | 826,921 | 826,921 | 986,262 |
Net loss per share-basic | $ 0.38 | $ (0.14) | $ 0.14 | $ (0.10) |
Average common shares-diluted | 826,921 | 826,921 | 826,921 | 986,262 |
Net loss per share-diluted | $ 0.38 | $ (0.14) | $ 0.14 | $ (0.10) |
2. Net Loss Per Share (Details)
2. Net Loss Per Share (Details) | 6 Months Ended |
Jun. 30, 2015shares | |
Common Stock | |
Shares cancelled | 50,000 |
3. Changes in Accumulated Oth_3
3. Changes in Accumulated Other Comprehensive Income: Schedule of Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Text Block [Abstract] | ||||
Unrealized holding gain arising during period, before tax amount | $ 40 | $ (104) | $ 135 | $ (32) |
Unrealized holding gain arising during period, taxes | 13 | 26 | 44 | 11 |
Unrealized holding gain arising during period, net of tax amount | 27 | (78) | 91 | (21) |
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 | 40 | (104) | 135 | (32) |
Other comprehensive loss, net, taxes | 13 | 26 | 44 | 11 |
Other comprehensive loss, net, net after tax amount | $ 27 | $ (78) | $ 91 | $ (21) |
5. Investment Securities_ Sched
5. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities, Amortized Cost Basis | $ 6,597,000 | $ 7,601,000 |
Available-for-sale Securities, Gross Unrealized Gain | 106,000 | 39,000 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (68,000) |
Investment securities available-for-sale, at fair value | 6,702,889 | 7,572,029 |
US Government Agency Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 2,950,000 | 3,697,000 |
Available-for-sale Securities, Gross Unrealized Gain | 3,000 | 3,000 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (38,000) |
Investment securities available-for-sale, at fair value | 2,953,000 | 3,662,000 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 3,517,000 | 3,774,000 |
Available-for-sale Securities, Gross Unrealized Gain | 103,000 | 36,000 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (30,000) |
Investment securities available-for-sale, at fair value | 3,620,000 | 3,780,000 |
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_ Sch_2
5. Investment Securities: Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 2,950,000 | |
Fair Value, due after five years through ten years | 2,953,000 | |
Available-for-sale Securities, Amortized Cost Basis | 6,597,000 | $ 7,601,000 |
Investment securities available-for-sale, at fair value | 6,702,889 | 7,572,029 |
Total debt securities, Amortized Cost Basis | 6,467,000 | |
Total debt securities, Fair Value | 6,573,000 | |
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 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 3,517,000 | 3,774,000 |
Investment securities available-for-sale, at fair value | $ 3,620,000 | $ 3,780,000 |
5. Investment Securities_ Sch_3
5. Investment Securities: Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Number of Securities | 64 | 17 |
Less than Twelve Months, Fair Value | $ 4,745 | $ 3,902 |
Less than 12 Months, Unrealized Losses | (53) | (51) |
Twelve Months or Longer, Fair Value | 53 | 470 |
12 Months or Longer, Unrealized Losses | (1,341) | (17) |
Total Fair Value | 6,086 | 4,372 |
Total Unrealized Losses | $ (106) | $ (68) |
US Government Agency Securities | ||
Number of Securities | 9 | 9 |
Less than Twelve Months, Fair Value | $ 2,703 | $ 2,416 |
Less than 12 Months, Unrealized Losses | (3) | (32) |
Twelve Months or Longer, Fair Value | 0 | 243 |
12 Months or Longer, Unrealized Losses | 0 | (6) |
Total Fair Value | 2,703 | 2,659 |
Total Unrealized Losses | $ (3) | $ (38) |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Number of Securities | 55 | 8 |
Less than Twelve Months, Fair Value | $ 2,042 | $ 1,486 |
Less than 12 Months, Unrealized Losses | (50) | (19) |
Twelve Months or Longer, Fair Value | 53 | 227 |
12 Months or Longer, Unrealized Losses | (1,341) | (11) |
Total Fair Value | 3,383 | 1,713 |
Total Unrealized Losses | $ (103) | $ (30) |
6. Loans and Allowance For Lo_3
6. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Text Block [Abstract] | ||
Commercial and industrial | $ 2,904 | $ 3,062 |
Commercial real estate | 24,066 | 26,414 |
Consumer real estate | 2,709 | 2,841 |
Consumer loans other | 1,042 | 1,202 |
Loans, net | $ 30,722 | $ 33,519 |
6. Loans and Allowance For Lo_4
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Beginning balance | $ 384,000 | $ 680,000 | $ 418,000 | $ 735,000 | |
Provision (credit) for loan losses | 0 | (40,000) | (5,000) | (100,000) | |
Charge-offs | 0 | (50,000) | (66,000) | (62,000) | |
Recoveries | 0 | 6,000 | 8,000 | 23,000 | |
Net (charge-offs) recoveries | 0 | (44,000) | (58,000) | (39,000) | |
Ending balance | 355,000 | 596,000 | 355,000 | 596,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 71,000 | 71,000 | $ 2,184,000 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 284,000 | 284,000 | 28,538,000 | ||
Period-end amount allocated to: Total | (354,563) | (354,563) | (418,013) | ||
Loans, ending balance: Loans individually evaluated for impairment | 91,000 | 91,000 | 2,515,000 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 327,000 | 327,000 | 31,004,000 | ||
Loans, ending balance: Total | 30,713,493 | 30,713,493 | 33,519,042 | ||
Commercial And Industrial | |||||
Beginning balance | 120,000 | 344,000 | 151,000 | 403,000 | |
Provision (credit) for loan losses | 0 | 24,000 | (5,000) | (36,000) | |
Charge-offs | 0 | (48,000) | 0 | (48,000) | |
Recoveries | 0 | 0 | 2,000 | 1,000 | |
Net (charge-offs) recoveries | 0 | (48,000) | 2,000 | (47,000) | |
Ending balance | 87,000 | 320,000 | 87,000 | 320,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 0 | 0 | 437,000 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 173,000 | 173,000 | 2,468,000 | ||
Period-end amount allocated to: Total | (173,000) | (173,000) | (2,905,000) | ||
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 | 439,000 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 151,000 | 151,000 | 2,623,000 | ||
Loans, ending balance: Total | 2,905,000 | 2,905,000 | 3,062,000 | ||
Commercial Real Estate Portfolio Segment | |||||
Beginning balance | 241,000 | 300,000 | 250,000 | 300,000 | |
Provision (credit) for loan losses | 0 | (64,000) | 0 | (64,000) | |
Charge-offs | 0 | 0 | (41,000) | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | (41,000) | 0 | |
Ending balance | 245,000 | 236,000 | 245,000 | 236,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 71,000 | 71,000 | 1,747,000 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 99,000 | 99,000 | 22,319,000 | ||
Period-end amount allocated to: Total | (170,000) | (170,000) | (24,066,000) | ||
Loans, ending balance: Loans individually evaluated for impairment | 91,000 | 91,000 | 2,076,000 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 159,000 | 159,000 | 24,338,000 | ||
Loans, ending balance: Total | 24,066,000 | 24,066,000 | 26,414,000 | ||
Consumer Real Estate | |||||
Beginning balance | 14,000 | 21,000 | 8,000 | 20,000 | |
Provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | (22,000) | 0 | |
Recoveries | 0 | 2,000 | 2,000 | 3,000 | |
Net (charge-offs) recoveries | 0 | 2,000 | 0 | 3,000 | |
Ending balance | 13,000 | 23,000 | 13,000 | 23,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 2,000 | 2,000 | 2,709,000 | ||
Period-end amount allocated to: Total | (2,000) | (2,000) | (2,709,000) | ||
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 8,000 | 8,000 | 2,841,000 | ||
Loans, ending balance: Total | 2,709,000 | 2,709,000 | 2,841,000 | ||
Consumer And Other Loans | |||||
Beginning balance | 9,000 | 15,000 | 9,000 | 12,000 | |
Provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | (2,000) | (3,000) | (14,000) | |
Recoveries | 0 | 4,000 | 4,000 | 19,000 | |
Net (charge-offs) recoveries | 0 | 2,000 | 1,000 | 5,000 | |
Ending balance | 10,000 | $ 17,000 | 10,000 | $ 17,000 | |
Period-end amount allocated to: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Period-end amount allocated to: Loans collectively evaluated for impairment | 10,000 | 10,000 | 1,042,000 | ||
Period-end amount allocated to: Total | (10,000) | (10,000) | (1,042,000) | ||
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans, ending balance: Loans collectively evaluated for impairment | 9,000 | 9,000 | 1,202,000 | ||
Loans, ending balance: Total | $ 1,042,000 | $ 1,042,000 | $ 1,202,000 |
6. Loans and Allowance For Lo_5
6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Past Due Loans | $ 2,907,000 | $ 3,635,000 |
Nonaccrual | 2,646,000 | 3,003,000 |
Current Loans | 27,815,000 | 29,884,000 |
Total Loans | 30,713,493 | 33,519,042 |
Loans 30-89 Days Past Due | ||
Past Due Loans | 24,000 | 339,000 |
Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 237,000 | 293,000 |
Commercial And Industrial | ||
Past Due Loans | 437,000 | 450,000 |
Nonaccrual | 437,000 | 439,000 |
Current Loans | 2,468,000 | 2,612,000 |
Total Loans | 2,905,000 | 3,062,000 |
Commercial And Industrial | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 11,000 |
Commercial And Industrial | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 1,765,000 | 2,285,000 |
Nonaccrual | 1,747,000 | 2,077,000 |
Current Loans | 22,301,000 | 24,129,000 |
Total Loans | 24,066,000 | 26,414,000 |
Commercial Real Estate Portfolio Segment | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 169,000 |
Commercial Real Estate Portfolio Segment | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 18,000 | 39,000 |
Consumer Real Estate | ||
Past Due Loans | 609,000 | 703,000 |
Nonaccrual | 462,000 | 487,000 |
Current Loans | 2,100,000 | 2,138,000 |
Total Loans | 2,709,000 | 2,841,000 |
Consumer Real Estate | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 91,000 |
Consumer Real Estate | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 147,000 | 125,000 |
Total Real Estate | ||
Past Due Loans | 2,374,000 | 2,988,000 |
Nonaccrual | 2,209,000 | 2,564,000 |
Current Loans | 24,401,000 | 26,267,000 |
Total Loans | 26,775,000 | 29,255,000 |
Total Real Estate | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 260,000 |
Total Real Estate | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 165,000 | 164,000 |
Consumer And Other Loans | ||
Past Due Loans | 96,000 | 197,000 |
Nonaccrual | 0 | 0 |
Current Loans | 946,000 | 1,005,000 |
Total Loans | 1,042,000 | 1,202,000 |
Consumer And Other Loans | Loans 30-89 Days Past Due | ||
Past Due Loans | 24,000 | 68,000 |
Consumer And Other Loans | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 72,000 | 129,000 |
Home Equity Line of Credit | Consumer Real Estate | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 20,000 | 20,000 |
Total Loans | 20,000 | 20,000 |
Home Equity Line of Credit | Consumer Real Estate | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Home Equity Line of Credit | Consumer Real Estate | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Commercial | Commercial And Industrial | ||
Past Due Loans | 109,000 | 110,000 |
Nonaccrual | 109,000 | 110,000 |
Current Loans | 1,348,000 | 1,425,000 |
Total Loans | 1,457,000 | 1,535,000 |
Commercial | Commercial And Industrial | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Commercial | Commercial And Industrial | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial And Industrial | ||
Past Due Loans | 39,000 | 40,000 |
Nonaccrual | 39,000 | 40,000 |
Current Loans | 0 | 0 |
Total Loans | 39,000 | 40,000 |
SBA Loans | Commercial And Industrial | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 263,000 | 271,000 |
Nonaccrual | 263,000 | 271,000 |
Current Loans | 325,000 | 82,000 |
Total Loans | 588,000 | 353,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Asset Based Loans | Commercial And Industrial | ||
Past Due Loans | 289,000 | 300,000 |
Nonaccrual | 289,000 | 289,000 |
Current Loans | 1,120,000 | 1,187,000 |
Total Loans | 1,409,000 | 1,487,000 |
Asset Based Loans | Commercial And Industrial | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 11,000 |
Asset Based Loans | Commercial And Industrial | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 1,298,000 | 1,543,000 |
Nonaccrual | 1,280,000 | 1,335,000 |
Current Loans | 11,538,000 | 12,231,000 |
Total Loans | 12,836,000 | 13,774,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 169,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 18,000 | 39,000 |
Construction | Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 1,250,000 | 2,175,000 |
Total Loans | 1,250,000 | 2,175,000 |
Construction | Commercial Real Estate Portfolio Segment | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Past Due Loans | 204,000 | 471,000 |
Nonaccrual | 204,000 | 471,000 |
Current Loans | 9,188,000 | 9,641,000 |
Total Loans | 9,392,000 | 10,112,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Home Equity Loans | Consumer Real Estate | ||
Past Due Loans | 480,000 | 539,000 |
Nonaccrual | 333,000 | 358,000 |
Current Loans | 353,000 | 358,000 |
Total Loans | 833,000 | 897,000 |
Home Equity Loans | Consumer Real Estate | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 56,000 |
Home Equity Loans | Consumer Real Estate | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 147,000 | 125,000 |
1-4 family residential mortgages | Consumer Real Estate | ||
Past Due Loans | 129,000 | 164,000 |
Nonaccrual | 129,000 | 129,000 |
Current Loans | 1,727,000 | 1,760,000 |
Total Loans | 1,856,000 | 1,924,000 |
1-4 family residential mortgages | Consumer Real Estate | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 35,000 |
1-4 family residential mortgages | Consumer Real Estate | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Consumer Installment | Consumer And Other Loans | ||
Past Due Loans | 0 | 0 |
Nonaccrual | 0 | 0 |
Current Loans | 0 | 0 |
Total Loans | 0 | 0 |
Consumer Installment | Consumer And Other Loans | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 0 |
Consumer Installment | Consumer And Other Loans | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 0 | 0 |
Student Loans | Consumer And Other Loans | ||
Past Due Loans | 95,000 | 195,000 |
Nonaccrual | 0 | 0 |
Current Loans | 826,000 | 886,000 |
Total Loans | 921,000 | 1,081,000 |
Student Loans | Consumer And Other Loans | Loans 30-89 Days Past Due | ||
Past Due Loans | 24,000 | 66,000 |
Student Loans | Consumer And Other Loans | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | 71,000 | 129,000 |
Other | Consumer And Other Loans | ||
Past Due Loans | 1,000 | 2,000 |
Nonaccrual | 0 | 0 |
Current Loans | 120,000 | 119,000 |
Total Loans | 121,000 | 121,000 |
Other | Consumer And Other Loans | Loans 30-89 Days Past Due | ||
Past Due Loans | 0 | 2,000 |
Other | Consumer And Other Loans | Accruing Loans 90 or More Days Past Due | ||
Past Due Loans | $ 1,000 | $ 0 |
6. Loans and Allowance For Lo_6
6. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Commercial real estate | $ 24,066,000 | $ 26,414,000 |
Consumer real estate | 2,709,000 | 2,841,000 |
Consumer loans other | 1,042,000 | 1,202,000 |
Total consumer loans | 3,751,000 | 4,043,000 |
Total Loans | 30,713,493 | 33,519,042 |
Good/Excellent | ||
Total commercial loans | 285,000 | 285,000 |
Satisfactory | ||
Total commercial loans | 18,612,000 | 22,392,000 |
Pass | ||
Total commercial loans | 4,041,000 | 2,467,000 |
Special Mention | ||
Total commercial loans | 1,612,000 | 1,557,000 |
Substandard | ||
Total commercial loans | 2,124,000 | 2,476,000 |
Doubtful | ||
Total commercial loans | 297,000 | 299,000 |
Total | ||
Total commercial loans | 26,971,000 | 29,476,000 |
Performing | ||
Consumer real estate | 2,247,000 | 2,354,000 |
Consumer loans other | 1,042,000 | 1,202,000 |
Total consumer loans | 3,289,000 | 3,556,000 |
Nonperforming | ||
Consumer real estate | 462,000 | 487,000 |
Consumer loans other | 0 | 0 |
Total consumer loans | 462,000 | 487,000 |
Commercial And Industrial | ||
Total Loans | 2,905,000 | 3,062,000 |
Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 250,000 | 285,000 |
Commercial And Industrial | Satisfactory | ||
Total commercial loans | 1,728,000 | 1,822,000 |
Commercial And Industrial | Pass | ||
Total commercial loans | 222,000 | 238,000 |
Commercial And Industrial | Special Mention | ||
Total commercial loans | 48,000 | 58,000 |
Commercial And Industrial | Substandard | ||
Total commercial loans | 581,000 | 583,000 |
Commercial And Industrial | Doubtful | ||
Total commercial loans | 76,000 | 76,000 |
Commercial And Industrial | Total | ||
Total commercial loans | 2,905,000 | 3,062,000 |
Consumer And Other Loans | ||
Total Loans | 1,042,000 | 1,202,000 |
Consumer And Other Loans | Total | Consumer Installment | ||
Consumer loans other | 0 | 0 |
Consumer And Other Loans | Total | Student Loans | ||
Consumer loans other | 921,000 | 1,081,000 |
Consumer And Other Loans | Total | Other | ||
Consumer loans other | 121,000 | 121,000 |
Consumer And Other Loans | Performing | Consumer Installment | ||
Consumer loans other | 0 | 0 |
Consumer And Other Loans | Performing | Student Loans | ||
Consumer loans other | 921,000 | 1,081,000 |
Consumer And Other Loans | Performing | Other | ||
Consumer loans other | 121,000 | 121,000 |
Consumer And Other Loans | Nonperforming | Consumer Installment | ||
Consumer loans other | 0 | 0 |
Consumer And Other Loans | Nonperforming | Student Loans | ||
Consumer loans other | 0 | 0 |
Consumer And Other Loans | Nonperforming | Other | ||
Consumer loans other | 0 | 0 |
Consumer Real Estate | ||
Total Loans | 2,709,000 | 2,841,000 |
Consumer Real Estate | Total | Home Equity | ||
Consumer real estate | 833,000 | 897,000 |
Consumer Real Estate | Total | Home Equity Line Of Credit | ||
Consumer real estate | 20,000 | 20,000 |
Consumer Real Estate | Total | 1-4 Family Residential Mortgages | ||
Consumer real estate | 1,856,000 | 1,924,000 |
Consumer Real Estate | Performing | Home Equity | ||
Consumer real estate | 500,000 | 539,000 |
Consumer Real Estate | Performing | Home Equity Line Of Credit | ||
Consumer real estate | 20,000 | 20,000 |
Consumer Real Estate | Performing | 1-4 Family Residential Mortgages | ||
Consumer real estate | 1,727,000 | 1,795,000 |
Consumer Real Estate | Nonperforming | Home Equity | ||
Consumer real estate | 333,000 | 358,000 |
Consumer Real Estate | Nonperforming | Home Equity Line Of Credit | ||
Consumer real estate | 0 | 0 |
Consumer Real Estate | Nonperforming | 1-4 Family Residential Mortgages | ||
Consumer real estate | 129,000 | 129,000 |
Commercial Real Estate Portfolio Segment | ||
Total Loans | 24,066,000 | 26,414,000 |
Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 35,000 | 0 |
Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 16,884,000 | 20,570,000 |
Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 3,819,000 | 2,229,000 |
Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 1,564,000 | 1,499,000 |
Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 1,543,000 | 1,893,000 |
Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 221,000 | 223,000 |
Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 24,066,000 | 26,414,000 |
Commercial | Commercial And Industrial | ||
Total Loans | 1,457,000 | 1,535,000 |
Commercial | Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 250,000 | 285,000 |
Commercial | Commercial And Industrial | Satisfactory | ||
Total commercial loans | 894,000 | 922,000 |
Commercial | Commercial And Industrial | Pass | ||
Total commercial loans | 12,000 | 16,000 |
Commercial | Commercial And Industrial | Special Mention | ||
Total commercial loans | 48,000 | 58,000 |
Commercial | Commercial And Industrial | Substandard | ||
Total commercial loans | 253,000 | 254,000 |
Commercial | Commercial And Industrial | Doubtful | ||
Total commercial loans | 0 | 0 |
Commercial | Commercial And Industrial | Total | ||
Total commercial loans | 1,457,000 | 1,535,000 |
SBA Loans | Commercial And Industrial | ||
Total Loans | 39,000 | 40,000 |
SBA Loans | Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Satisfactory | ||
Total commercial loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Pass | ||
Total commercial loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Special Mention | ||
Total commercial loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Substandard | ||
Total commercial loans | 39,000 | 40,000 |
SBA Loans | Commercial And Industrial | Doubtful | ||
Total commercial loans | 0 | 0 |
SBA Loans | Commercial And Industrial | Total | ||
Total commercial loans | 39,000 | 40,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Total Loans | 588,000 | 353,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 325,000 | 82,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 263,000 | 271,000 |
SBA Loans | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 588,000 | 353,000 |
Asset Based | Commercial And Industrial | Good/Excellent | ||
Total commercial loans | 0 | 0 |
Asset Based | Commercial And Industrial | Satisfactory | ||
Total commercial loans | 834,000 | 900,000 |
Asset Based | Commercial And Industrial | Pass | ||
Total commercial loans | 210,000 | 222,000 |
Asset Based | Commercial And Industrial | Special Mention | ||
Total commercial loans | 0 | 0 |
Asset Based | Commercial And Industrial | Substandard | ||
Total commercial loans | 289,000 | 289,000 |
Asset Based | Commercial And Industrial | Doubtful | ||
Total commercial loans | 76,000 | 76,000 |
Asset Based | Commercial And Industrial | Total | ||
Total commercial loans | 1,409,000 | 1,487,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Total Loans | 12,836,000 | 13,774,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 0 | 0 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 9,035,000 | 10,689,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 1,937,000 | 1,098,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 567,000 | 613,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 1,076,000 | 1,151,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 221,000 | 223,000 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 12,836,000 | 13,774,000 |
Construction | Commercial Real Estate Portfolio Segment | ||
Total Loans | 1,250,000 | 2,175,000 |
Construction | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 1,250,000 | 2,175,000 |
Construction | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 0 | 0 |
Construction | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | 1,250,000 | 2,175,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Total Loans | 9,392,000 | 10,112,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Good/Excellent | ||
Commercial real estate | 35,000 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Satisfactory | ||
Commercial real estate | 6,274,000 | 7,624,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Pass | ||
Commercial real estate | 1,882,000 | 1,131,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Special Mention | ||
Commercial real estate | 997,000 | 886,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Substandard | ||
Commercial real estate | 204,000 | 471,000 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Doubtful | ||
Commercial real estate | 0 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | Total | ||
Commercial real estate | $ 9,392,000 | $ 10,112,000 |
6. Loans and Allowance For Lo_7
6. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Unpaid Contractual Principal Balance | $ 2,184 | $ 2,980 |
Recorded Investment With No Allowance | 1,367 | 1,945 |
Recorded Investment With Allowance | 817 | 570 |
Total Recorded Investment | 2,184 | 2,515 |
Related Allowance | 71 | 91 |
Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 437 | 904 |
Recorded Investment With No Allowance | 194 | 393 |
Recorded Investment With Allowance | 243 | 46 |
Total Recorded Investment | 437 | 439 |
Related Allowance | 0 | 0 |
Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 1,747 | 2,076 |
Recorded Investment With No Allowance | 1,173 | 1,552 |
Recorded Investment With Allowance | 574 | 524 |
Total Recorded Investment | 1,747 | 2,076 |
Related Allowance | 71 | 91 |
Commercial | Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 109 | 818 |
Recorded Investment With No Allowance | 109 | 353 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 109 | 353 |
Related Allowance | 0 | 0 |
SBA Loans | Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 39 | 46 |
Recorded Investment With No Allowance | 39 | 0 |
Recorded Investment With Allowance | 0 | 46 |
Total Recorded Investment | 39 | 46 |
Related Allowance | 0 | 0 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 263 | 271 |
Recorded Investment With No Allowance | 163 | 271 |
Recorded Investment With Allowance | 100 | 0 |
Total Recorded Investment | 263 | 271 |
Related Allowance | 4 | 0 |
Asset Based Loans | Commercial And Industrial | ||
Unpaid Contractual Principal Balance | 289 | 40 |
Recorded Investment With No Allowance | 46 | 40 |
Recorded Investment With Allowance | 243 | 0 |
Total Recorded Investment | 289 | 40 |
Related Allowance | 0 | 0 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 1,280 | 1,334 |
Recorded Investment With No Allowance | 806 | 810 |
Recorded Investment With Allowance | 474 | 524 |
Total Recorded Investment | 1,280 | 1,334 |
Related Allowance | 67 | 91 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||
Unpaid Contractual Principal Balance | 204 | 471 |
Recorded Investment With No Allowance | 204 | 471 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 204 | 471 |
Related Allowance | $ 0 | $ 0 |
6. Loans and Allowance For Lo_8
6. Loans and Allowance For Loan Losses: Schedule of Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Average Recorded Investment | $ 2,251 | $ 1,854 | $ 1,985 | $ 1,782 |
Interest recognized on impaired loans | 7 | 2 | 18 | 3 |
Commercial And Industrial | ||||
Average Recorded Investment | 437 | 320 | 437 | 286 |
Interest recognized on impaired loans | 3 | 2 | 0 | 3 |
Commercial Real Estate Portfolio Segment | ||||
Average Recorded Investment | 1,814 | 1,534 | 1,548 | 1,496 |
Interest recognized on impaired loans | 4 | 0 | 18 | 0 |
Commercial | Commercial And Industrial | ||||
Average Recorded Investment | 109 | 201 | 109 | 200 |
Interest recognized on impaired loans | 0 | 0 | 0 | 0 |
SBA Loans | Commercial And Industrial | ||||
Average Recorded Investment | 39 | 46 | 39 | 46 |
Interest recognized on impaired loans | 0 | 1 | 0 | 2 |
SBA Loans | Commercial Real Estate Portfolio Segment | ||||
Average Recorded Investment | 264 | 113 | 103 | 112 |
Interest recognized on impaired loans | 0 | 0 | 5 | 0 |
Asset Based Loans | Commercial And Industrial | ||||
Average Recorded Investment | 289 | 73 | 289 | 40 |
Interest recognized on impaired loans | 3 | 1 | 0 | 1 |
Commercial Mortgages | Commercial Real Estate Portfolio Segment | ||||
Average Recorded Investment | 1,308 | 934 | 1,097 | 896 |
Interest recognized on impaired loans | 4 | 0 | 13 | 0 |
Religious Organizations | Commercial Real Estate Portfolio Segment | ||||
Average Recorded Investment | 242 | 487 | 348 | 488 |
Interest recognized on impaired loans | $ 0 | $ 0 | $ 0 | $ 0 |
7. Other Real Estate Owned_ Sch
7. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Text Block [Abstract] | ||||
Other Real Estate, Beginning Balance | $ 564,000 | $ 708,000 | $ 479,627 | $ 564,000 |
Additions, transfers from loans | 237,000 | 59,000 | 477,000 | 148,000 |
Sales | (305,000) | (43,000) | (140,000) | (43,000) |
Other Real Estate Owned | 496,000 | 726,000 | 770,000 | 669,000 |
Write-ups (downs) | (49,000) | 33,000 | (13,000) | 88,000 |
Other Real Estate, Ending Balance | $ 446,777 | $ 757,000 | $ 446,777 | $ 757,000 |
7. Other Real Estate Owned_ S_2
7. Other Real Estate Owned: Schedule of Components of Other Real Estate Owned (Details) - USD ($) | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Other real estate owned | $ 446,777 | $ 564,000 | $ 479,627 | $ 757,000 | $ 708,000 | $ 564,000 |
Commercial Real Estate | ||||||
Other real estate owned | 316,000 | 297,000 | ||||
Residential Real Estate | ||||||
Other real estate owned | $ 131,000 | $ 183,000 |
7. Other Real Estate Owned_ S_3
7. Other Real Estate Owned: Schedule of Components of Net Expense (income) of Other Real Estate Owned (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Professional fees | $ 75,973 | $ 74,964 | $ 149,131 | $ 165,415 |
Impairment charges (net) | 0 | 88,460 | ||
Other Real Estate {1} | ||||
Insurance | 2 | 4 | 6 | 8 |
Legal Fees | 16 | 16 | ||
Professional fees | 0 | 4 | ||
Real estate taxes | 4 | 3 | 10 | 6 |
Utilities | 1 | 1 | 1 | 1 |
Other | 0 | 0 | 0 | 10 |
Transfer-in write up | 49 | (31) | 49 | (88) |
Impairment charges (net) | 0 | 0 | 0 | 0 |
Total | $ 72 | $ (23) | $ 86 | $ (63) |
8. Fair Value_ Schedule of Fair
8. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Assets Measured at Fair Value | $ 6,703,000 | $ 7,572,000 |
Loans held for sale, at fair value | 7,136,996 | 3,260,761 |
Loans held at fair value | 3,237,904 | 2,458,930 |
Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 130,000 | 130,000 |
Loans held for sale, at fair value | 0 | 0 |
Loans held at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 6,573,000 | 7,442,000 |
Loans held for sale, at fair value | 7,137,000 | 3,261,000 |
Loans held 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 | 0 |
Loans held at fair value | 3,238,000 | 2,459,000 |
US Government Agency Securities | ||
Assets Measured at Fair Value | 2,953,000 | 3,662,000 |
US Government Agency Securities | Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 0 | 0 |
US Government Agency Securities | Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 2,953,000 | 3,662,000 |
US Government Agency Securities | Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | 0 | 0 |
Government Sponsored Enterprises residential mortgage-backed securities | ||
Assets Measured at Fair Value | 3,620,000 | 3,780,000 |
Government Sponsored Enterprises residential mortgage-backed securities | Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 0 | 0 |
Government Sponsored Enterprises residential mortgage-backed securities | Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 3,620,000 | 3,780,000 |
Government Sponsored Enterprises residential mortgage-backed securities | Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | 0 | 0 |
Investments in money market funds | ||
Assets Measured at Fair Value | 130,000 | 130,000 |
Investments in money market funds | Fair Value, Inputs, Level 1 | ||
Assets Measured at Fair Value | 130,000 | 130,000 |
Investments in money market funds | Fair Value, Inputs, Level 2 | ||
Assets Measured at Fair Value | 0 | 0 |
Investments in money market funds | Fair Value, Inputs, Level 3 | ||
Assets Measured at Fair Value | $ 0 | $ 0 |
8. Fair Value_ Schedule of Inpu
8. Fair Value: Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Loans held at fair value | $ 3,237,904 | $ 2,458,930 |
Fair Value, Inputs, Level 3 | ||
Loans held at fair value | $ 3,238,000 | $ 2,459,000 |
Principal valuation technique | Discounted cash flow | Discounted cash flow |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Minimum | ||
Constant prepayment rate | 7.33% | 7.10% |
Weighted average discount rate | 7.22% | 7.76% |
Weighted average life | 3 years 2 months 12 days | 3 years 4 months 24 days |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Maximum | ||
Constant prepayment rate | 10.189% | 9.88% |
Weighted average discount rate | 10.12% | 9.94% |
Weighted average life | 9 years 10 months 10 days | 8 years 9 months 11 days |
8. Fair Value (Details)
8. Fair Value (Details) - Loans Held at Fair Value $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Balance, Starting | $ 2,459 |
Origination of loans | 0 |
Principal repayments | 0 |
Change in fair value of financial instruments | 0 |
Balance, Ending | $ 3,238 |
8. Fair Value_ Schedule of Fa_2
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, 2016 | Dec. 31, 2015 | |
Assets, Fair Value, Nonrecurring | $ 6,703 | $ 7,572 |
Fair Value, Inputs, Level 1 | ||
Assets, Fair Value, Nonrecurring | 130 | 130 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value, Nonrecurring | 6,573 | 7,442 |
Fair Value, Inputs, Level 3 | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Impaired Loans, Carrying Value | ||
Assets, Fair Value, Nonrecurring | 2,184 | 2,424 |
Total fair value loss during the year | 0 | 0 |
Impaired Loans, Carrying Value | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Impaired Loans, Carrying Value | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Impaired Loans, Carrying Value | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value, Nonrecurring | 2,184 | 2,424 |
Other Real Estate Owned | ||
Assets, Fair Value, Nonrecurring | 447 | 480 |
Total fair value loss during the year | 0 | 39 |
Other Real Estate Owned | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Other Real Estate Owned | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value, Nonrecurring | 0 | 0 |
Other Real Estate Owned | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value, Nonrecurring | $ 447 | $ 480 |
8. Fair Value_ Schedule of Fa_3
8. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets: | |||
Available for sale securities | $ 6,702,889 | $ 7,572,029 | |
Loans held for sale | 7,136,996 | 3,260,761 | |
Loans held at fair value | 3,237,904 | 2,458,930 | |
Loans, net of allowance for loan losses | 30,358,930 | 33,101,029 | |
Savings deposits | 11,322,524 | 11,680,878 | |
Accrued interest payable | 12,998 | 9,157 | |
Fair Value, Inputs, Level 1 | |||
Assets: | |||
Loans held for sale | 0 | 0 | |
Loans held at fair value | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Assets: | |||
Loans held for sale | 7,137,000 | 3,261,000 | |
Loans held at fair value | 0 | 0 | |
Fair Value, Inputs, Level 3 | |||
Assets: | |||
Loans held for sale | 0 | 0 | |
Loans held at fair value | 3,238,000 | 2,459,000 | |
Carrying Amount | |||
Assets: | |||
Available for sale securities | [1] | 6,703,000 | 7,572,000 |
Loans, net of allowance for loan losses | [2] | 30,359,000 | 33,101,000 |
Carrying Amount | Fair Value, Inputs, Level 1 | |||
Assets: | |||
Cash and cash equivalents | 5,223,000 | 10,782,000 | |
Carrying Amount | Fair Value, Inputs, Level 2 | |||
Assets: | |||
Loans held for sale | 7,137,000 | 3,261,000 | |
Accrued interest receivable | 203,000 | 175,000 | |
Demand Deposits | 28,418,000 | 30,022,000 | |
Savings deposits | 11,323,000 | 11,681,000 | |
Time deposits | 11,566,000 | 14,259,000 | |
Accrued interest payable | 13,000 | 9,000 | |
Carrying Amount | Fair Value, Inputs, Level 3 | |||
Assets: | |||
Loans held at fair value | 3,238,000 | 2,459,000 | |
Fair Value | |||
Assets: | |||
Available for sale securities | [1] | 6,703,000 | 7,572,000 |
Loans, net of allowance for loan losses | [2] | 30,359,000 | 33,082,000 |
Fair Value | Fair Value, Inputs, Level 1 | |||
Assets: | |||
Cash and cash equivalents | 5,223,000 | 10,782,000 | |
Fair Value | Fair Value, Inputs, Level 2 | |||
Assets: | |||
Loans held for sale | 7,137,000 | 3,261,000 | |
Accrued interest receivable | 203,000 | 175,000 | |
Demand Deposits | 28,418,000 | 30,022,000 | |
Savings deposits | 11,323,000 | 11,681,000 | |
Time deposits | 11,566,000 | 14,242,000 | |
Accrued interest payable | 13,000 | 9,000 | |
Fair Value | Fair Value, Inputs, Level 3 | |||
Assets: | |||
Loans held at fair value | $ 3,238,000 | $ 2,459,000 | |
[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 requirements
9. Regulatory: The requirements and status of items included in the Consent Orders (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Description of Regulatory Requirements, Prompt Corrective Action | Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period; |
9. Regulatory (Details)
9. Regulatory (Details) - BankMember | Jun. 30, 2016 | Dec. 31, 2015 |
Tier One Leverage Capital Ratio | 5.06% | 4.57% |
Risk Based Capital Ratio | 8.56% | 8.50% |