Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | OptimumBank Holdings, Inc. | |
Entity Central Index Key | 1,288,855 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,099,826 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 11,337,000 | $ 10,162,000 |
Interest-bearing deposits with banks | 103,000 | 203,000 |
Total cash and cash equivalents | 11,440,000 | 10,365,000 |
Securities available for sale | 21,931,000 | 25,749,000 |
Loans, net of allowance for loan losses of $4,169 and $2,295 | 81,332,000 | 82,573,000 |
Federal Home Loan Bank stock | 1,018,000 | 966,000 |
Premises and equipment, net | 2,680,000 | 2,703,000 |
Foreclosed real estate, net | 2,412,000 | 4,029,000 |
Accrued interest receivable | 389,000 | 462,000 |
Other assets | 519,000 | 631,000 |
Total assets | 121,721,000 | 127,478,000 |
Liabilities: | ||
Noninterest-bearing demand deposits | 9,715,000 | 9,478,000 |
Savings, NOW and money-market deposits | 22,943,000 | 24,034,000 |
Time deposits | 57,650,000 | 64,059,000 |
Total deposits | 90,308,000 | 97,571,000 |
Federal Home Loan Bank advances | 20,500,000 | 20,000,000 |
Junior subordinated debenture | 5,155,000 | 5,155,000 |
Advanced payment by borrowers for taxes and insurance | 682,000 | 251,000 |
Official checks | 159,000 | 130,000 |
Other liabilities | 1,600,000 | 1,404,000 |
Total liabilities | 118,404,000 | 124,511,000 |
Stockholders' equity: | ||
Preferred stock, no par value; 6,000,000 shares authorized, 7 shares issued and outstanding in 2016 and 4 shares issued and outstanding in 2015 | ||
Common stock, $.01 par value; 5,000,000 shares authorized, 1,099,826 shares issued and outstanding in 2016 and 50,000,000 shares authorized, 9,628,863 shares issued and outstanding in 2015 | 11,000 | 96,000 |
Additional paid-in capital | 34,025,000 | 33,330,000 |
Accumulated deficit | (30,629,000) | (30,321,000) |
Accumulated other comprehensive income (loss) | (90,000) | (138,000) |
Total stockholders' equity | 3,317,000 | 2,967,000 |
Total liabilities and stockholders' equity | $ 121,721,000 | $ 127,478,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 4,169 | $ 2,295 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 7 | 4 |
Preferred stock, shares outstanding | 7 | 4 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 1,099,826 | 9,628,863 |
Common stock, shares outstanding | 1,099,826 | 9,628,863 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Loans | $ 1,082 | $ 974 | $ 3,156 | $ 2,828 |
Securities | 117 | 148 | 367 | 455 |
Other | 24 | 20 | 75 | 58 |
Total interest income | 1,223 | 1,142 | 3,598 | 3,341 |
Interest expense: | ||||
Deposits | 181 | 162 | 550 | 479 |
Borrowings | 91 | 60 | 260 | 176 |
Total interest expense | 272 | 222 | 810 | 655 |
Net interest income | 951 | 920 | 2,788 | 2,686 |
Net interest income after provision for loan losses | 951 | 920 | 2,788 | 2,686 |
Noninterest income: | ||||
Service charges and fees | 22 | 61 | 63 | 91 |
Gain on sale of securities available for sale | 2 | 28 | 48 | 60 |
Other | 7 | 83 | 14 | 221 |
Total noninterest income | 31 | 172 | 125 | 372 |
Noninterest expenses: | ||||
Salaries and employee benefits | 430 | 460 | 1,385 | 1,402 |
Occupancy and equipment | 112 | 118 | 346 | 365 |
Data processing | 77 | 84 | 250 | 224 |
Professional fees | 151 | 171 | 480 | 423 |
Insurance | 27 | 29 | 78 | 88 |
Foreclosed real estate, net | 5 | 358 | 42 | 404 |
Regulatory assessment | 74 | 78 | 221 | 225 |
Other | 84 | 68 | 419 | 377 |
Total noninterest expenses | 960 | 1,366 | 3,221 | 3,508 |
Earnings (loss) before tax benefit | 22 | (274) | (308) | (450) |
Income tax benefit | (320) | (320) | ||
Net earnings (loss) | $ 22 | $ 46 | $ (308) | $ (130) |
Net (loss) earnings per share: | ||||
Basic and diluted | $ .02 | $ .05 | $ (.30) | $ (.12) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 22 | $ 46 | $ (308) | $ (130) |
Unrealized (loss) gain on securities available for sale: | ||||
Unrealized (loss) gain arising during the period | (281) | 206 | 129 | 53 |
Reclassification adjustment for realized gains on securities available for sale | (2) | (28) | (48) | (60) |
Net change in unrealized (loss) gain | (283) | 178 | 81 | (7) |
Deferred income taxes (benefit) on above change | (107) | 67 | 33 | (3) |
Total other comprehensive (loss) income | (176) | 111 | 48 | (4) |
Comprehensive (loss) income | $ (154) | $ 157 | $ (260) | $ (134) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance beginning at Dec. 31, 2014 | $ 93 | $ 32,961 | $ (30,158) | $ 83 | $ 2,979 | |
Balance beginning, shares at Dec. 31, 2014 | 9,305,236 | |||||
Proceeds from sale of common stock | 30 | 30 | ||||
Proceeds from sale of common stock, shares | 37,500 | |||||
Proceeds from sale of preferred stock | 75 | 75 | ||||
Proceeds from sale of preferred stock, shares | 3 | |||||
Common stock issued as compensation to directors | $ 2 | 227 | 229 | |||
Common stock issued as compensation to directors, shares | 251,123 | |||||
Net loss | (130) | (130) | ||||
Net change in unrealized (gain) loss on securities available for sale, net of taxes | (4) | (4) | ||||
Balance ending at Sep. 30, 2015 | $ 95 | 33,293 | (30,288) | 79 | 3,179 | |
Balance ending, shares at Sep. 30, 2015 | 3 | 9,593,859 | ||||
Balance beginning at Dec. 31, 2015 | $ 96 | 33,330 | (30,321) | (138) | 2,967 | |
Balance beginning, shares at Dec. 31, 2015 | 4 | 9,628,863 | ||||
Proceeds from sale of common stock | $ 1 | 374 | 375 | |||
Proceeds from sale of common stock, shares | 92,980 | |||||
Proceeds from sale of preferred stock | 75 | 75 | ||||
Proceeds from sale of preferred stock, shares | 3 | |||||
Common stock issued as compensation to directors | $ 1 | 231 | 232 | |||
Common stock issued as compensation to directors, shares | 53,855 | |||||
Net loss | (308) | (308) | ||||
Net change in unrealized (gain) loss on securities available for sale, net of taxes | 48 | 48 | ||||
Reverse common stock split (1-for-10) | $ (87) | 87 | ||||
Reverse common stock split (1-for-10), shares | (8,665,694) | |||||
Common stock issued for services | 128 | 128 | ||||
Common stock issued for services, shares | 36,118 | |||||
Reversal of common stock issued as compensation to directors | (200) | (200) | ||||
Reversal of common stock issued as compensation to directors, shares | (46,296) | |||||
Balance ending at Sep. 30, 2016 | $ 11 | $ 34,025 | $ (30,629) | $ (90) | $ 3,317 | |
Balance ending, shares at Sep. 30, 2016 | 7 | 1,099,826 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |
Reverse stock split ratio | 0.10 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (308) | $ (130) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 118 | 120 |
Gain on sale of securities available for sale | (48) | (60) |
Common stock issued as compensation to directors | 32 | 229 |
Common stock issued as compensation for services | 128 | |
Net amortization of fees, premiums and discounts | 38 | 483 |
Decrease (increase) in other assets | 79 | (68) |
Write-down of foreclosed real estate | 280 | |
Decrease (increase) in accrued interest receivable | 73 | (19) |
Increase in official checks and other liabilities | 225 | 1 |
Net cash provided by operating activities | 337 | 836 |
Cash flows from investing activities: | ||
Principal repayments and maturity of securities available for sale | 3,074 | 3,462 |
Proceeds from sale of securities | 18,028 | 8,255 |
Purchases of securities available for sale | (17,294) | (11,053) |
Net decrease (increase) in loans | 1,342 | (1,221) |
Purchase of premises and equipment | (95) | (23) |
Proceeds from sale of foreclosed real estate, net | 1,617 | 610 |
(Purchase) Redemption of Federal Home Loan Bank stock | (52) | 359 |
Net cash provided by investing activities | 6,620 | 389 |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (7,263) | 1,201 |
Increase in advanced payment by borrowers for taxes and insurance | 431 | 415 |
Purchase (Repayment) of Federal Home Loan Bank advances, net | 500 | (6,740) |
Proceeds from sale of common stock | 375 | 30 |
Proceeds from sale of preferred stock | 75 | 75 |
Net cash used in financing activities | (5,882) | (5,019) |
Net increase (decrease) in cash and cash equivalents | 1,075 | (3,794) |
Cash and cash equivalents at beginning of the period | 10,365 | 12,074 |
Cash and cash equivalents at end of the period | 11,440 | 8,280 |
Cash paid during the period for: | ||
Interest | 671 | 537 |
Noncash transactions: | ||
Change in accumulated other comprehensive income (loss), net change in unrealized (loss) gain on securities available for sale | $ 48 | $ (4) |
General
General | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
General | (1) General. In the opinion of management, the accompanying condensed consolidated financial statements of the Company contain all adjustments (consisting principally of normal recurring accruals) necessary to present fairly the financial position at September 30, 2016, the results of operations and comprehensive (loss) income for the three and nine month periods ended September 30, 2016 and 2015 and cash flows for the nine month periods ending September 30, 2016 and 2015. The results of operations for the three and nine months ended September 30, 2016, are not necessarily indicative of the results to be expected for the full year. Going Concern Status In March of 2016, the Trustee received a direction from certain equity owners of the Trust that hold the Debenture to Sell the Debenture to a Director of the Company. Based upon the receipt of other conflicting directions, on August 26, 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. On September 14, 2016, a Notice of Removal was filed and the case was removed to the United States District Court for the District of Minnesota. On October 10, 2016, the Trustee and the various Interested Parties filed a Stipulation to Transfer Venue to the United States District Court for the Southern District of New York (the “Stipulation”). Based upon the Stipulation, on October 13, 2016, the Minnesota Federal Court entered its Order to Transfer Venue of the case to the United States District Court for the Southern District of New York. The parties are seeking to have this matter assigned to the same District Court Judge who was assigned the Interpleader Action. To date no scheduling order has been entered. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. Comprehensive (Loss) Income. Income Taxes. Recent Pronouncements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) In June 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-13 Financial Instruments-Credit Losses (Topic 326) Reclassification. Recent Regulatory Developments. Basel III Rules. The phase-in period for the final rules began for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. The provisions of the final rules are not expected to have a material impact on the Bank. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | (2) Securities. Amortized Gross Gross Fair At September 30, 2016: Securities Available for Sale- Mortgage-backed securities $ 3,288 $ 50 $ — $ 3,338 Collateralized mortgage obligations 18,787 26 (220 ) 18,593 Total $ 22,075 $ 76 $ (220 ) $ 21,931 At December 31, 2015: Securities Available for Sale- Mortgage-backed securities $ 10,107 $ 31 $ (52 ) $ 10,086 Collateralized mortgage obligations 15,223 21 (227 ) 15,017 SBA Pool Security 644 2 — 646 Total $ 25,974 $ 54 $ (279 ) $ 25,749 The following summarizes the sales of securities (in thousands): Nine Months Ended September 30 2016 2015 Proceeds from sales of securities $ 18,028 $ 8,255 Gross gains from sale of securities 66 87 Gross losses from sale of securities (18 ) (27 ) Net gains from sales of securities $ 48 $ 60 Securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands): At September 30, 2016 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale- Collateralized mortgage obligations $ (13 ) $ 942 $ (207 ) $ 12,811 At December 31, 2015 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale: Mortgage-backed securities $ — $ — $ (52 ) $ 5,526 Collateralized mortgage obligations — — (227 ) 11,783 $ — $ — $ (279 ) $ 17,309 At September 30, 2016, the unrealized losses on eight investment securities were caused by market conditions. It is expected that the securities would not be settled at a price less than the book value of the investments. Because the decline in fair value is attributable to market conditions and not credit quality, and because the Company has the ability and intent to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. A security is impaired if the fair value is less than its carrying value at the financial statement date. When a security is impaired, the Company determines whether this impairment is temporary or other-than-temporary. In estimating other-than-temporary impairment (“OTTI”) losses, management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized in operations. For securities that do not meet the aforementioned criteria, the amount of impairment recognized in operations is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). Management utilizes cash flow models to segregate impairments to distinguish between impairment related to credit losses and impairment related to other factors. To assess for OTTI, management considers, among other things, (i) the severity and duration of the impairment; (ii) the ratings of the security; (iii) the overall transaction structure (the Company’s position within the structure, the aggregate, near-term financial performance of the underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, and discounted cash flows); and (iv) the timing and magnitude of a break in modeled cash flows. In evaluating securities with unrealized losses, management utilizes various resources, including input from independent third-party firms to perform an analysis of expected future cash flows. The process begins with an assessment of the underlying collateral backing the mortgage pools. Management develops specific assumptions using as much market data as possible and includes internal estimates as well as estimates published by rating agencies and other third-party sources. The data for the individual borrowers in the underlying mortgage pools are generally segregated by state, FICO score at issue, loan to value at issue, and income documentation criteria. Mortgage pools are evaluated for current and expected levels of delinquencies and foreclosures, based on where they fall in the prescribed data set of FICO score, locations, LTV and documentation type, and a level of loss severity is assigned to each security based on its experience. The above-described historical data is used to develop current and expected measures of cumulative default rates as well as ultimate loss frequency and severity within the underlying mortgages. This reveals the expected future cash flows within the mortgage pool. The data described above is then input to an industry recognized model to assess the behavior of the particular security tranche owned by the Company. Significant inputs in this process include the structure of any subordination structures, if applicable, and are dictated by the structure of each particular security as laid out in the offering documents. The forecasted cash flows from the mortgage pools are input through the security structuring model to derive expected cash flows for the specific security owned by the Company to determine if the future cash flows are expected to exceed the book value of the security. The values for the significant inputs are updated on a regular basis. The Company did not record any OTTI losses for securities available for sale. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans | (3) Loans. At September 30, At December 31, 2016 2015 Residential real estate $ 28,244 $ 16,203 Multi-family real estate 5,789 3,697 Commercial real estate 31,405 34,771 Land and construction 4,096 5,258 Commercial 13,327 21,770 Consumer 2,098 3,015 Total loans 84,959 84,714 Add (deduct): Net deferred loan fees, costs and premiums 542 154 Allowance for loan losses (4,169 ) (2,295 ) Loans, net $ 81,332 $ 82,573 Residential Multi-Family Commercial Land Real Real Real and Estate Estate Estate Construction Commercial Consumer Unallocated Total Three Months Ended September 30, 2016: Beginning balance $ 262 $ 39 $ 1,012 $ 64 $ 200 $ 156 $ 2,507 $ 4,240 Provision (credit) for loan losses 58 19 89 (4 ) 48 75 (285 ) — Charge-offs — — (14 ) — — (72 ) — (86 ) Recoveries — — — 6 — 9 — 15 Ending balance $ 320 $ 58 $ 1,087 $ 66 $ 248 $ 168 $ 2,222 $ 4,169 Nine Months Ended September 30, 2016: Beginning balance $ 116 $ 26 $ 1,085 $ 77 $ 120 $ 151 $ 720 $ 2,295 Provision (credit) for loan losses 204 32 (2,033 ) (29 ) 128 196 1,502 — Charge-offs — — (14 ) — — (195 ) — (209 ) Recoveries — — 2,049 18 — 16 — 2,083 Ending balance $ 320 58 1,087 66 248 168 2,222 4,169 Three Months Ended September 30, 2015: Beginning balance $ 48 $ 25 $ 1,408 $ 34 $ 77 $ 147 $ 440 $ 2,179 Provision (credit) for loan losses 181 (14 ) (143 ) 14 (36 ) 19 (21 ) — Charge-offs (195 ) — — — — — — (195 ) Recoveries — — — — — 3 — 3 Ending balance $ 34 $ 11 $ 1,265 $ 48 $ 41 $ 169 $ 419 $ 1,987 Nine Months Ended September 30, 2015: Beginning balance $ 66 $ 2 $ 1,794 $ 99 $ 17 $ — $ 266 $ 2,244 Provision (credit) for loan losses 235 9 (529 ) (51 ) 24 159 153 — Charge-offs (267 ) — — — — — — (267 ) Recoveries — — — — — 10 — 10 Ending balance $ 34 $ 11 $ 1,265 $ 48 $ 41 $ 169 $ 419 $ 1,987 Residential Multi-Family Commercial Land Real Real Real and Estate Estate Estate Construction Commercial Consumer Unallocated Total At September 30, 2016: Individually evaluated for impairment: Recorded investment $ 379 $ — $ 2,129 $ — $ — $ — $ — $ 2,508 Balance in allowance for loan losses $ — $ — $ 374 $ — $ — $ — $ — $ 374 Collectively evaluated for impairment: Recorded investment $ 27,865 $ 5,789 $ 29,276 $ 4,096 $ 13,327 $ 2,098 $ — $ 82,451 Balance in allowance for loan losses $ 320 $ 58 $ 713 $ 66 $ 248 $ 168 $ 2,222 $ 3,795 At December 31, 2015: Individually evaluated for impairment: Recorded investment $ 1,319 $ — $ 4,273 $ — $ — $ — $ — $ 5,592 Balance in allowance for loan losses $ — $ — $ 13 $ — $ — $ — $ — $ 13 Collectively evaluated for impairment: Recorded investment $ 14,884 $ 3,697 $ 30,498 $ 5,258 $ 21,770 $ 3,015 $ — $ 79,122 Balance in allowance for loan losses $ 116 $ 26 $ 1,072 $ 77 $ 120 $ 151 $ 720 $ 2,282 Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction. Commercial. Consumer. Pass OLEM (Other Loans Especially Mentioned) Sub-standard Doubtful Loss Total At September 30, 2016: Residential real estate $ 26,226 $ 1,639 $ 379 $ — $ — $ 28,244 Multi-family real estate 5,789 — — — — 5,789 Commercial real estate 27,000 1,187 3,218 — — 31,405 Land and construction 4,050 46 — — — 4,096 Commercial 11,582 — 1,745 — — 13,327 Consumer 2,098 — — — — 2,098 Total $ 76,745 $ 2,872 $ 5,342 $ — $ — $ 84,959 At December 31, 2015: Residential real estate $ 15,132 $ — $ 1,071 $ — $ — $ 16,203 Multi-family real estate 3,697 — — — — 3,697 Commercial real estate 29,925 573 4,273 — — 34,771 Land and construction 5,212 46 — — — 5,258 Commercial 19,916 — 1,854 — — 21,770 Consumer 3,015 — — — — 3,015 Total $ 76,897 $ 619 $ 7,198 $ — $ — $ 84,714 Pass – a Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. These are loans that conform in all aspects to bank policy and regulatory requirements, and no repayment risk has been identified. OLEM (Other Loans Especially Mentioned) – an Other Loan Especially Mentioned has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Substandard – a Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Included in this category are loans that are current on their payments, but the Bank is unable to document the source of repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – a loan classified as Doubtful has all the weaknesses inherent in one classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company charges off any loan classified as Doubtful. Loss – a loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company fully charges off any loan classified as Loss. Accruing Loans 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Nonaccrual Loans Total Loans At September 30, 2016: Residential real estate $ — $ — $ — $ — $ 27,865 $ 379 $ 28,244 Multi-family real estate — — — — 5,789 — 5,789 Commercial real estate — — — — 30,287 1,118 31,405 Land and construction — — — — 4,096 — 4,096 Commercial — — — — 13,327 — 13,327 Consumer — — — — 2,098 — 2,098 Total $ — $ — $ — $ — $ 83,462 $ 1,497 $ 84,959 At December 31, 2015: Residential real estate $ — $ — $ — $ — $ 15,132 $ 1,071 $ 16,203 Multi-family real estate — — — — 3,697 — 3,697 Commercial real estate — — — — 31,539 3,232 34,771 Land and construction — — — — 5,258 — 5,258 Commercial — — — — 21,770 — 21,770 Consumer — — — — 3,015 — 3,015 Total $ — $ — $ — $ — $ 80,411 $ 4,303 $ 84,714 The following summarizes the amount of impaired loans (in thousands): At September 30, 2016 At December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 379 $ 684 $ — $ 1,319 $ 2,243 $ — Commercial real estate — — — 3,232 6,584 — With related allowance recorded - Commercial real estate $ 2,129 $ 2,292 374 1,041 1,041 13 Total Residential real estate $ 379 $ 684 $ — $ 1,319 $ 2,243 $ — Commercial real estate $ 2,129 $ 2,292 $ 374 $ 4,273 $ 7,625 $ 13 Total $ 2,508 $ 2,976 $ 374 $ 5,592 $ 9,868 $ 13 Three Months Ended September 30, 2016 2015 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 598 $ 3 $ 16 $ 4,532 $ 35 $ 58 Commercial real estate $ 1,829 $ 16 $ 22 $ 4,898 $ 18 $ 65 Total $ 2,427 $ 19 $ 38 $ 9,430 $ 53 $ 123 Nine Months Ended September 30, 2016 2015 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 1,057 $ 36 $ 64 $ 5,367 $ 104 $ 211 Commercial real estate $ 2,483 $ 63 $ 89 $ 5,074 $ 57 $ 215 Total $ 3,540 $ 99 $ 153 $ 10,441 $ 161 $ 426 No loans have been determined to be troubled debt restructurings during the nine months ended September 30, 2016 or 2015. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital | |
Regulatory Capital | (4) Regulatory Capital. Bank Consent Order Tier I capital to total average assets 7.78 % 8.00 % Tier I capital to risk-weighted assets 11.07 % N/A Common equity Tier I capital to risk-weighted assets 11.07 % N/A Total capital to risk-weighted assets 12.37 % 12.00 % At September 30, 2016, the Bank is well-capitalized. As a result of the Consent Order discussed in Note 9, the Bank cannot be categorized higher than “adequately capitalized” until the Consent Order is lifted, even if its ratios were to exceed those required to be a “well capitalized” bank. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Net (loss) earnings per share: | |
Earnings (Loss) Per Share | (5) Earnings (Loss) Per Share. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Weighted-average number of common shares outstanding used to calculate basic and diluted earnings (loss) per common share 1,097,644 955,802 1,024,704 951,977 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (6) Stock-Based Compensation. As of September 30, 2016, only common stock has been issued as compensation to directors for services rendered under this plan. 7,559 and 25,112 shares of common stock (adjusted for one-for-ten reverse stock split) were issued for the periods ended September 30, 2016 and 2015, respectively. A total of $32,000 and $229,000 of compensation was recorded during the 2016 and 2015 periods. At September 30, 2016 a total of 149,482 (adjusted for one-for-ten reverse stock split) shares remain available for grant. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value MeasurementS | (7) Fair Value Measurements. Losses Fair Total Recorded in Value Level 1 Level 2 Level 3 Losses Operations At September 30, 2016: Residential real estate $ 379 $ — $ — $ 379 $ 125 $ — Commercial real estate 850 — — 850 268 $ 268 $ 1,229 $ — $ — $ 1,229 $ 393 $ 268 Foreclosed real estate $ 2,412 $ — $ — $ 2,412 $ 1,118 $ — At December 31, 2015: Residential real estate $ 423 $ — $ — $ 423 $ 125 $ — Commercial real estate 2,094 — — 2,094 2,055 — $ 2,517 $ — $ — $ 2,517 $ 2,180 $ — Foreclosed real estate $ 4,029 $ — $ — $ 4,029 $ 1,403 $ 260 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (8) Fair Value of Financial Instruments. At September 30, 2016 At December 31, 2015 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 11,440 $ 11,440 1 $ 10,365 $ 10,365 1 Securities available for sale 21,931 21,931 2 25,749 25,749 2 Loans 81,332 81,419 3 82,573 82,429 3 Federal Home Loan Bank stock 1,018 1,018 3 966 966 3 Accrued interest receivable 389 389 3 462 462 3 Financial liabilities: Deposit liabilities 90,308 90,647 3 97,571 97,837 3 Federal Home Loan Bank advances 20,500 20,544 3 20,000 20,000 3 Junior subordinated debenture 5,155 N/A (1) 3 5,155 N/A (1) 3 Off-balance sheet financial instruments — — — — — 3 (1) The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note 10 for further information. Discussion regarding the assumptions used to compute the estimated fair values of financial instruments can be found in Note 1 to the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2015. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Matters | |
Regulatory Matters | (9) Regulatory Matters. Effective January 1, 2015, the Bank, became subject to the new Basel III capital level threshold requirements under the Prompt Corrective Action regulations with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. These new regulations were designed to ensure that banks maintain strong capital positions even in the event of severe economic downturns or unforeseen losses. Changes that could affect the Bank going forward include additional constraints on the inclusion of deferred tax assets in capital and increased risk weightings for nonperforming loans and acquisition/development loans in regulatory capital. Under the new regulations in the first quarter of 2015, the Bank elected an irreversible one-time opt-out to exclude accumulated other comprehensive income (loss) from regulatory capital. The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at September 30, 2016 and December 31, 2015 (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Requirements of Consent Order Amount % Amount % Amount % Amount % As of September 30, 2016: Total Capital to Risk-Weighted Assets $ 10,564 12.37 % $ 6,832 8.0 % $ 8,540 10.0 % $ 10,248 12.0 % Tier I Capital to Risk-Weighted Assets 9,458 11.07 5,124 6.0 6,832 8.0 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,458 11.07 3,843 4.5 5,551 6.5 N/A N/A Tier I Capital to Total Assets 9,458 7.78 4,865 4.0 6,081 5.0 9,730 8.0 As of December 31, 2015: Total Capital to Risk-Weighted Assets $ 10,319 11.40 % $ 7,240 8.0 % $ 9,050 10.0 % $ 10,860 12.0 % Tier I Capital to Risk-Weighted Assets 9,173 10.14 5,430 6.0 7,240 8.0 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,173 10.14 4,073 4.5 5,883 6.5 N/A N/A Tier I Capital to Total Assets 9,173 7.59 4,836 4.0 6,045 5.0 9,672 8.0 Regulatory Enforcement Actions Bank Consent Order. On April 16, 2010, the Bank agreed to the issuance of the Consent Order by the FDIC and the OFR (the “Original Consent Order”), which was amended on February 28, 2014. Under the Original Consent Order, the Bank was required to take certain measures to improve its capital position, reduce its level of problem assets, reduce its loan concentrations in certain portfolios, improve management practices and board supervision and assure that its reserve for loan losses is maintained at an appropriate level. The Original Consent Order required the Bank to maintain a Tier 1 leverage ratio of at least 8% and a total risk-based capital ratio of 12%. At September 30, 2016, the Bank had a Tier 1 leverage ratio of 7.78%, and a total risk-based capital ratio of 12.37%. See Footnote 13 to the Consolidated Financial Statements included in the Company’s 2015 Form 10-K for additional information concerning the requirements of the Original Consent Order. During the second quarter of 2016, the Bank was notified by the FDIC and the OFR that the Bank had not complied with certain of the terms of the Original Consent Order, and that the Bank continues to exhibit weaknesses in its level of capital, loan quality, earnings, liquidity and sensitivity to market risks. The FDIC and OFR also noted issues related to the management of the Bank, including issues with capital adequacy, risk management, loan concentrations, operating deficits, compliance with the Original Consent Order, weaknesses in the Bank’s customer related due diligence, insider conflicts of interest and regulatory compliance. On November 2, 2016, at the request of the FDIC and the OFR, the Bank agreed to the entry of a new Consent Order to be issued by the FDIC and the OFR (the “New Order”). The New Order will become effective when issued by the FDIC and the OFR. The New Order addresses many of the issues addressed in the Original Consent Order, as well as issues related to board supervision and composition, management composition, asset quality, lending practices, allowance for loan losses, asset growth, and compliance with the Bank Secrecy act and related regulations. The New Order will continue to restrict the ability of the Bank to pay dividends. Management believes that the Bank has made substantial progress in improving its financial condition through a significant reduction in non-performing assets and the receipt of capital increases from investors since the date of the Original Consent Order. The Bank is also seeking to address the other issues raised by the FDIC and the OFR, although the Bank has been hampered by difficulties in raising capital due to the default under the Debenture and the limits placed on the Company and the Bank under the Original Consent Order and the Written Agreement. Management intends to continue its efforts to meet the conditions of the New Consent Order and the Written Agreement. Company Written Agreement with Reserve Bank. On June 22, 2010, the Company and the Reserve Bank entered into a Written Agreement with respect to certain aspects of the operation and management of the Company The Written Agreement prohibits, without the prior approval of the Reserve Bank, the payment of dividends, taking dividends or payments from the Bank, making any interest, principal or other distributions on trust preferred securities (including the Debenture), incurring, increasing or guaranteeing any debt, purchasing or redeeming any shares of stock, or appointing any new director or senior executive officer. Management believes that the Company is in substantial compliance with the requirements of the Written Agreement. |
Junior Subordinated Debenture
Junior Subordinated Debenture | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debenture | (10) Junior Subordinated Debenture. A Director of the Company has offered to purchase the Debenture and this offer has been approved by certain equity owners of the Trust that holds the Debenture. The Director has also agreed to enter into a forbearance agreement with the Company with respect to payments due under the Debenture upon consummation of the Director’s purchase of the debenture. Although the Director tendered the purchase price for the Debenture in 2014, the Trustee has received conflicting directions and therefore on December 11, 2014, the Trustee commenced an Action for Interpleader in the United States District Court for the Southern District of New York. On August 31, 2015, the court held that the Trustee could not sell the Debenture to the Director because certain conditions and requirements set forth in the indenture for the Trust had not been fulfilled. The Director has continued his efforts to acquire the Debenture. To date the Trustee has not accelerated the outstanding balance of the debenture. In March of 2016, the Trustee received a direction from certain equity owners of the Trust that hold the Debenture to Sell the Debenture to a Director of the Company. Based upon the receipt of other conflicting directions, on August 26, 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. On September 14, 2016, a Notice of Removal was filed and the case was removed to the United States District Court for the District of Minnesota. On October 10, 2016, the Trustee and the various Interested Parties filed a Stipulation to Transfer Venue to the United States District Court for the Southern District of New York (the “Stipulation”). Based upon the Stipulation, on October 13, 2016, the Minnesota Federal Court entered its Order to Transfer Venue of the case to the United States District Court for the Southern District of New York. The parties are seeking to have this matter assigned to the same District Court Judge who was assigned the Interpleader Action. To date no schedule order has been entered. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. |
Reverse Common Stock Split
Reverse Common Stock Split | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Reverse Common Stock Split | (11) Reverse Common Stock Split. |
Loan Loss Recovery
Loan Loss Recovery | 9 Months Ended |
Sep. 30, 2016 | |
Loan Loss Recovery | |
Loan Loss Recovery | (12) Loan Loss Recovery. |
Reclassification
Reclassification | 9 Months Ended |
Sep. 30, 2016 | |
Reclassification | |
Reclassification | (13) Reclassification. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Comprehensive (Loss) Income | Comprehensive (Loss) Income. |
Income Taxes | Income Taxes. |
Recent Pronouncements and Recent Regulatory Developments | Recent Pronouncements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) In June 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-13 Financial Instruments-Credit Losses (Topic 326) Recent Regulatory Developments. Basel III Rules. The phase-in period for the final rules began for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. The provisions of the final rules are not expected to have a material impact on the Bank. |
Reclassification | Reclassification. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, unrealized gross gains and losses and fair values of securities available for sale | Amortized Gross Gross Fair At September 30, 2016: Securities Available for Sale- Mortgage-backed securities $ 3,288 $ 50 $ — $ 3,338 Collateralized mortgage obligations 18,787 26 (220 ) 18,593 Total $ 22,075 $ 76 $ (220 ) $ 21,931 At December 31, 2015: Securities Available for Sale- Mortgage-backed securities $ 10,107 $ 31 $ (52 ) $ 10,086 Collateralized mortgage obligations 15,223 21 (227 ) 15,017 SBA Pool Security 644 2 — 646 Total $ 25,974 $ 54 $ (279 ) $ 25,749 |
Schedule of sales of securities | The following summarizes the sales of securities (in thousands): Nine Months Ended September 30 2016 2015 Proceeds from sales of securities $ 18,028 $ 8,255 Gross gains from sale of securities 66 87 Gross losses from sale of securities (18 ) (27 ) Net gains from sales of securities $ 48 $ 60 |
Schedule of securities with continuous unrealized loss position | Securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands): At September 30, 2016 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale- Collateralized mortgage obligations $ (13 ) $ 942 $ (207 ) $ 12,811 At December 31, 2015 Over Twelve Months Less Than Twelve Months Gross Fair Gross Fair Securities Available for Sale: Mortgage-backed securities $ — $ — $ (52 ) $ 5,526 Collateralized mortgage obligations — — (227 ) 11,783 $ — $ — $ (279 ) $ 17,309 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of components of loans | T he components of loans are as follows (in thousands): At September 30, At December 31, 2016 2015 Residential real estate $ 28,244 $ 16,203 Multi-family real estate 5,789 3,697 Commercial real estate 31,405 34,771 Land and construction 4,096 5,258 Commercial 13,327 21,770 Consumer 2,098 3,015 Total loans 84,959 84,714 Add (deduct): Net deferred loan fees, costs and premiums 542 154 Allowance for loan losses (4,169 ) (2,295 ) Loans, net $ 81,332 $ 82,573 |
Schedule of change in the allowance for loan losses | Residential Multi-Family Commercial Land Real Real Real and Estate Estate Estate Construction Commercial Consumer Unallocated Total Three Months Ended September 30, 2016: Beginning balance $ 262 $ 39 $ 1,012 $ 64 $ 200 $ 156 $ 2,507 $ 4,240 Provision (credit) for loan losses 58 19 89 (4 ) 48 75 (285 ) — Charge-offs — — (14 ) — — (72 ) — (86 ) Recoveries — — — 6 — 9 — 15 Ending balance $ 320 $ 58 $ 1,087 $ 66 $ 248 $ 168 $ 2,222 $ 4,169 Nine Months Ended September 30, 2016: Beginning balance $ 116 $ 26 $ 1,085 $ 77 $ 120 $ 151 $ 720 $ 2,295 Provision (credit) for loan losses 204 32 (2,033 ) (29 ) 128 196 1,502 — Charge-offs — — (14 ) — — (195 ) — (209 ) Recoveries — — 2,049 18 — 16 — 2,083 Ending balance $ 320 58 1,087 66 248 168 2,222 4,169 Three Months Ended September 30, 2015: Beginning balance $ 48 $ 25 $ 1,408 $ 34 $ 77 $ 147 $ 440 $ 2,179 Provision (credit) for loan losses 181 (14 ) (143 ) 14 (36 ) 19 (21 ) — Charge-offs (195 ) — — — — — — (195 ) Recoveries — — — — — 3 — 3 Ending balance $ 34 $ 11 $ 1,265 $ 48 $ 41 $ 169 $ 419 $ 1,987 Nine Months Ended September 30, 2015: Beginning balance $ 66 $ 2 $ 1,794 $ 99 $ 17 $ — $ 266 $ 2,244 Provision (credit) for loan losses 235 9 (529 ) (51 ) 24 159 153 — Charge-offs (267 ) — — — — — — (267 ) Recoveries — — — — — 10 — 10 Ending balance $ 34 $ 11 $ 1,265 $ 48 $ 41 $ 169 $ 419 $ 1,987 Residential Multi-Family Commercial Land Real Real Real and Estate Estate Estate Construction Commercial Consumer Unallocated Total At September 30, 2016: Individually evaluated for impairment: Recorded investment $ 379 $ — $ 2,129 $ — $ — $ — $ — $ 2,508 Balance in allowance for loan losses $ — $ — $ 374 $ — $ — $ — $ — $ 374 Collectively evaluated for impairment: Recorded investment $ 27,865 $ 5,789 $ 29,276 $ 4,096 $ 13,327 $ 2,098 $ — $ 82,451 Balance in allowance for loan losses $ 320 $ 58 $ 713 $ 66 $ 248 $ 168 $ 2,222 $ 3,795 At December 31, 2015: Individually evaluated for impairment: Recorded investment $ 1,319 $ — $ 4,273 $ — $ — $ — $ — $ 5,592 Balance in allowance for loan losses $ — $ — $ 13 $ — $ — $ — $ — $ 13 Collectively evaluated for impairment: Recorded investment $ 14,884 $ 3,697 $ 30,498 $ 5,258 $ 21,770 $ 3,015 $ — $ 79,122 Balance in allowance for loan losses $ 116 $ 26 $ 1,072 $ 77 $ 120 $ 151 $ 720 $ 2,282 |
Schedule of loans by credit quality indicator | Pass OLEM (Other Loans Especially Mentioned) Sub-standard Doubtful Loss Total At September 30, 2016: Residential real estate $ 26,226 $ 1,639 $ 379 $ — $ — $ 28,244 Multi-family real estate 5,789 — — — — 5,789 Commercial real estate 27,000 1,187 3,218 — — 31,405 Land and construction 4,050 46 — — — 4,096 Commercial 11,582 — 1,745 — — 13,327 Consumer 2,098 — — — — 2,098 Total $ 76,745 $ 2,872 $ 5,342 $ — $ — $ 84,959 At December 31, 2015: Residential real estate $ 15,132 $ — $ 1,071 $ — $ — $ 16,203 Multi-family real estate 3,697 — — — — 3,697 Commercial real estate 29,925 573 4,273 — — 34,771 Land and construction 5,212 46 — — — 5,258 Commercial 19,916 — 1,854 — — 21,770 Consumer 3,015 — — — — 3,015 Total $ 76,897 $ 619 $ 7,198 $ — $ — $ 84,714 |
Schedule of aging analysis of past due loans | Accruing Loans 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Nonaccrual Loans Total Loans At September 30, 2016: Residential real estate $ — $ — $ — $ — $ 27,865 $ 379 $ 28,244 Multi-family real estate — — — — 5,789 — 5,789 Commercial real estate — — — — 30,287 1,118 31,405 Land and construction — — — — 4,096 — 4,096 Commercial — — — — 13,327 — 13,327 Consumer — — — — 2,098 — 2,098 Total $ — $ — $ — $ — $ 83,462 $ 1,497 $ 84,959 At December 31, 2015: Residential real estate $ — $ — $ — $ — $ 15,132 $ 1,071 $ 16,203 Multi-family real estate — — — — 3,697 — 3,697 Commercial real estate — — — — 31,539 3,232 34,771 Land and construction — — — — 5,258 — 5,258 Commercial — — — — 21,770 — 21,770 Consumer — — — — 3,015 — 3,015 Total $ — $ — $ — $ — $ 80,411 $ 4,303 $ 84,714 |
Schedule of impaired loans | The following summarizes the amount of impaired loans (in thousands): At September 30, 2016 At December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 379 $ 684 $ — $ 1,319 $ 2,243 $ — Commercial real estate — — — 3,232 6,584 — With related allowance recorded - Commercial real estate $ 2,129 $ 2,292 374 1,041 1,041 13 Total Residential real estate $ 379 $ 684 $ — $ 1,319 $ 2,243 $ — Commercial real estate $ 2,129 $ 2,292 $ 374 $ 4,273 $ 7,625 $ 13 Total $ 2,508 $ 2,976 $ 374 $ 5,592 $ 9,868 $ 13 Three Months Ended September 30, 2016 2015 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 598 $ 3 $ 16 $ 4,532 $ 35 $ 58 Commercial real estate $ 1,829 $ 16 $ 22 $ 4,898 $ 18 $ 65 Total $ 2,427 $ 19 $ 38 $ 9,430 $ 53 $ 123 Nine Months Ended September 30, 2016 2015 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 1,057 $ 36 $ 64 $ 5,367 $ 104 $ 211 Commercial real estate $ 2,483 $ 63 $ 89 $ 5,074 $ 57 $ 215 Total $ 3,540 $ 99 $ 153 $ 10,441 $ 161 $ 426 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Tables | |
Schedule of regulatory capital requirements | The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at September 30, 2016 and December 31, 2015 (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Requirements of Consent Order Amount % Amount % Amount % Amount % As of September 30, 2016: Total Capital to Risk-Weighted Assets $ 10,564 12.37 % $ 6,832 8.0 % $ 8,540 10.0 % $ 10,248 12.0 % Tier I Capital to Risk-Weighted Assets 9,458 11.07 5,124 6.0 6,832 8.0 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,458 11.07 3,843 4.5 5,551 6.5 N/A N/A Tier I Capital to Total Assets 9,458 7.78 4,865 4.0 6,081 5.0 9,730 8.0 As of December 31, 2015: Total Capital to Risk-Weighted Assets $ 10,319 11.40 % $ 7,240 8.0 % $ 9,050 10.0 % $ 10,860 12.0 % Tier I Capital to Risk-Weighted Assets 9,173 10.14 5,430 6.0 7,240 8.0 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,173 10.14 4,073 4.5 5,883 6.5 N/A N/A Tier I Capital to Total Assets 9,173 7.59 4,836 4.0 6,045 5.0 9,672 8.0 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net (loss) earnings per share: | |
Schedule of weighted average number of shares | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Weighted-average number of common shares outstanding used to calculate basic and diluted earnings (loss) per common share 1,097,644 955,802 1,024,704 951,977 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a nonrecurring basis | Losses Fair Total Recorded in Value Level 1 Level 2 Level 3 Losses Operations At September 30, 2016: Residential real estate $ 379 $ — $ — $ 379 $ 125 $ — Commercial real estate 850 — — 850 268 $ 268 $ 1,229 $ — $ — $ 1,229 $ 393 $ 268 Foreclosed real estate $ 2,412 $ — $ — $ 2,412 $ 1,118 $ — At December 31, 2015: Residential real estate $ 423 $ — $ — $ 423 $ 125 $ — Commercial real estate 2,094 — — 2,094 2,055 — $ 2,517 $ — $ — $ 2,517 $ 2,180 $ — Foreclosed real estate $ 4,029 $ — $ — $ 4,029 $ 1,403 $ 260 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair value of financial instruments | At September 30, 2016 At December 31, 2015 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 11,440 $ 11,440 1 $ 10,365 $ 10,365 1 Securities available for sale 21,931 21,931 2 25,749 25,749 2 Loans 81,332 81,419 3 82,573 82,429 3 Federal Home Loan Bank stock 1,018 1,018 3 966 966 3 Accrued interest receivable 389 389 3 462 462 3 Financial liabilities: Deposit liabilities 90,308 90,647 3 97,571 97,837 3 Federal Home Loan Bank advances 20,500 20,544 3 20,000 20,000 3 Junior subordinated debenture 5,155 N/A (1) 3 5,155 N/A (1) 3 Off-balance sheet financial instruments — — — — — 3 (1) The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note 10 for further information. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Matters Tables | |
Schedule of regulatory capital requirements | The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at September 30, 2016 and December 31, 2015 (dollars in thousands): Actual For Capital Adequacy Purposes Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Requirements of Consent Order Amount % Amount % Amount % Amount % As of September 30, 2016: Total Capital to Risk-Weighted Assets $ 10,564 12.37 % $ 6,832 8.0 % $ 8,540 10.0 % $ 10,248 12.0 % Tier I Capital to Risk-Weighted Assets 9,458 11.07 5,124 6.0 6,832 8.0 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,458 11.07 3,843 4.5 5,551 6.5 N/A N/A Tier I Capital to Total Assets 9,458 7.78 4,865 4.0 6,081 5.0 9,730 8.0 As of December 31, 2015: Total Capital to Risk-Weighted Assets $ 10,319 11.40 % $ 7,240 8.0 % $ 9,050 10.0 % $ 10,860 12.0 % Tier I Capital to Risk-Weighted Assets 9,173 10.14 5,430 6.0 7,240 8.0 N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,173 10.14 4,073 4.5 5,883 6.5 N/A N/A Tier I Capital to Total Assets 9,173 7.59 4,836 4.0 6,045 5.0 9,672 8.0 |
General (Details Narrative)
General (Details Narrative) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Junior subordinated debenture | $ 5,155,000 | $ 5,155,000 |
Accrued and unpaid interest payable | $ 1,095,700 |
Securities (Details Narrative)
Securities (Details Narrative) | Sep. 30, 2016 |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities in unrealized loss position | 8 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | $ 22,075 | $ 25,974 |
Gross Unrealized Gains | 76 | 54 |
Gross Unrealized Losses | (220) | (279) |
Fair Value | 21,931 | 25,749 |
Mortgage-backed securities [Member] | ||
Amortized Cost | 3,288 | 10,107 |
Gross Unrealized Gains | 50 | 31 |
Gross Unrealized Losses | (52) | |
Fair Value | 3,338 | 10,086 |
Collateralized Mortgage Obligations [Member] | ||
Amortized Cost | 18,787 | 15,223 |
Gross Unrealized Gains | 26 | 21 |
Gross Unrealized Losses | (220) | (227) |
Fair Value | $ 18,593 | 15,017 |
SBA Pool Security [Member] | ||
Amortized Cost | 644 | |
Gross Unrealized Gains | 2 | |
Fair Value | $ 646 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sale of securities | $ 18,028 | $ 8,255 | ||
Gross gains from sale of securities | 66 | 87 | ||
Gross losses from sale of securities | (18) | (27) | ||
Net gains from sale of securities | $ 2 | $ 28 | $ 48 | $ 60 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Securities in an Unrealized Loss Position Less than 12 Months | ||
Gross unrealized Losses | $ (279) | |
Fair Value | 17,309 | |
Collateralized Mortgage Obligations [Member] | ||
Securities in an Unrealized Loss Position Over 12 Months | ||
Gross unrealized Losses | $ (13) | |
Fair Value | 942 | |
Securities in an Unrealized Loss Position Less than 12 Months | ||
Gross unrealized Losses | (207) | (227) |
Fair Value | $ 12,811 | 11,783 |
Mortgage-backed securities [Member] | ||
Securities in an Unrealized Loss Position Less than 12 Months | ||
Gross unrealized Losses | (52) | |
Fair Value | $ 5,526 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans, gross | $ 84,959 | $ 84,714 | ||||
Net deferred loan fees, costs and premiums | 542 | 154 | ||||
Allowance for loan losses | (4,169) | $ (4,240) | (2,295) | $ (1,987) | $ (2,179) | $ (2,244) |
Loans, net | 81,332 | 82,573 | ||||
Residential real estate [Member] | ||||||
Loans, gross | 28,244 | 16,203 | ||||
Allowance for loan losses | (320) | (262) | (116) | (34) | (48) | (66) |
Multi-family real estate [Member] | ||||||
Loans, gross | 5,789 | 3,697 | ||||
Allowance for loan losses | (58) | (39) | (26) | (11) | (25) | (2) |
Commercial Real Estate [Member] | ||||||
Loans, gross | 31,405 | 34,771 | ||||
Allowance for loan losses | (1,087) | (1,012) | (1,085) | (1,265) | (1,408) | (1,794) |
Land and construction [Member] | ||||||
Loans, gross | 4,096 | 5,258 | ||||
Allowance for loan losses | (66) | (64) | (77) | (48) | (34) | (99) |
Commercial [Member] | ||||||
Loans, gross | 13,327 | 21,770 | ||||
Allowance for loan losses | (248) | (200) | (120) | (41) | (77) | $ (17) |
Consumer [Member] | ||||||
Loans, gross | 2,098 | 3,015 | ||||
Allowance for loan losses | $ (168) | $ (156) | $ (151) | $ (169) | $ (147) |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | $ 4,240 | $ 2,179 | $ 2,295 | $ 2,244 |
Charge-offs | (86) | (195) | (209) | (267) |
Recoveries | 15 | 3 | 2,083 | 10 |
Ending balance | 4,169 | 1,987 | 4,169 | 1,987 |
Residential real estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 262 | 48 | 116 | 66 |
Provision (credit) for loan losses | 58 | 181 | 204 | 235 |
Charge-offs | (195) | (267) | ||
Ending balance | 320 | 34 | 320 | 34 |
Multi-family real estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 39 | 25 | 26 | 2 |
Provision (credit) for loan losses | 19 | (14) | 32 | 9 |
Ending balance | 58 | 11 | 58 | 11 |
Commercial Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 1,012 | 1,408 | 1,085 | 1,794 |
Provision (credit) for loan losses | 89 | (143) | (2,033) | (529) |
Charge-offs | (14) | (14) | ||
Recoveries | 2,049 | |||
Ending balance | 1,087 | 1,265 | 1,087 | 1,265 |
Land and construction [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 64 | 34 | 77 | 99 |
Provision (credit) for loan losses | (4) | 14 | (29) | (51) |
Recoveries | 6 | 18 | ||
Ending balance | 66 | 48 | 66 | 48 |
Commercial [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 200 | 77 | 120 | 17 |
Provision (credit) for loan losses | 48 | (36) | 128 | 24 |
Ending balance | 248 | 41 | 248 | 41 |
Consumer [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 156 | 147 | 151 | |
Provision (credit) for loan losses | 75 | 19 | 196 | 159 |
Charge-offs | (72) | (195) | ||
Recoveries | 9 | 3 | 16 | 10 |
Ending balance | 168 | 169 | 168 | 169 |
Unallocated [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 2,507 | 440 | 720 | 266 |
Provision (credit) for loan losses | (285) | (21) | 1,502 | 153 |
Ending balance | $ 2,222 | $ 419 | $ 2,222 | $ 419 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | $ 2,508 | $ 5,592 |
Allowance for loan losses, Individually evaluated for impairment | 374 | 13 |
Recorded investment, Collectively evaluated for impairment | 82,451 | 79,122 |
Allowance for loan losses, Collectively evaluated for impairment | 3,795 | 2,282 |
Residential real estate [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | 379 | 1,319 |
Recorded investment, Collectively evaluated for impairment | 27,865 | 14,884 |
Allowance for loan losses, Collectively evaluated for impairment | 320 | 116 |
Multi-family real estate [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 5,789 | 3,697 |
Allowance for loan losses, Collectively evaluated for impairment | 58 | 26 |
Commercial Real Estate [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Individually evaluated for impairment | 2,129 | 4,273 |
Allowance for loan losses, Individually evaluated for impairment | 374 | 13 |
Recorded investment, Collectively evaluated for impairment | 29,276 | 30,498 |
Allowance for loan losses, Collectively evaluated for impairment | 713 | 1,072 |
Land and construction [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 4,096 | 5,258 |
Allowance for loan losses, Collectively evaluated for impairment | 66 | 77 |
Commercial [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 13,327 | 21,770 |
Allowance for loan losses, Collectively evaluated for impairment | 248 | 120 |
Consumer [Member] | ||
Allowance balance attributed to loans: | ||
Recorded investment, Collectively evaluated for impairment | 2,098 | 3,015 |
Allowance for loan losses, Collectively evaluated for impairment | 168 | 151 |
Unallocated [Member] | ||
Allowance balance attributed to loans: | ||
Allowance for loan losses, Collectively evaluated for impairment | $ 2,222 | $ 720 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Risk rated loans | $ 84,959 | $ 84,714 |
Pass [Member] | ||
Risk rated loans | 76,745 | 76,897 |
OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 2,872 | 619 |
Substandard [Member] | ||
Risk rated loans | 5,342 | 7,198 |
Residential real estate [Member] | ||
Risk rated loans | 28,244 | 16,203 |
Residential real estate [Member] | Pass [Member] | ||
Risk rated loans | 26,226 | 15,132 |
Residential real estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 1,639 | |
Residential real estate [Member] | Substandard [Member] | ||
Risk rated loans | 379 | 1,071 |
Multi-family real estate [Member] | ||
Risk rated loans | 5,789 | 3,697 |
Multi-family real estate [Member] | Pass [Member] | ||
Risk rated loans | 5,789 | 3,697 |
Commercial Real Estate [Member] | ||
Risk rated loans | 31,405 | 34,771 |
Commercial Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 27,000 | 29,925 |
Commercial Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 1,187 | 573 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | 3,218 | 4,273 |
Land and construction [Member] | ||
Risk rated loans | 4,096 | 5,258 |
Land and construction [Member] | Pass [Member] | ||
Risk rated loans | 4,050 | 5,212 |
Land and construction [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 46 | 46 |
Commercial [Member] | ||
Risk rated loans | 13,327 | 21,770 |
Commercial [Member] | Pass [Member] | ||
Risk rated loans | 11,582 | 19,916 |
Commercial [Member] | Substandard [Member] | ||
Risk rated loans | 1,745 | 1,854 |
Consumer [Member] | ||
Risk rated loans | 2,098 | 3,015 |
Consumer [Member] | Pass [Member] | ||
Risk rated loans | $ 2,098 | $ 3,015 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Aging analysis of past due loans | ||
Current Loans | $ 83,462 | $ 80,411 |
Nonaccrual Loans | 1,497 | 4,303 |
Total loans | 84,959 | 84,714 |
Consumer [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 2,098 | 3,015 |
Total loans | 2,098 | 3,015 |
Residential real estate [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 27,865 | 15,132 |
Nonaccrual Loans | 379 | 1,071 |
Total loans | 28,244 | 16,203 |
Multi-family real estate [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 5,789 | 3,697 |
Total loans | 5,789 | 3,697 |
Commercial Real Estate [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 30,287 | 31,539 |
Nonaccrual Loans | 1,118 | 3,232 |
Total loans | 31,405 | 34,771 |
Land and construction [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 4,096 | 5,258 |
Total loans | 4,096 | 5,258 |
Commercial [Member] | ||
Aging analysis of past due loans | ||
Current Loans | 13,327 | 21,770 |
Total loans | $ 13,327 | $ 21,770 |
Loans (Details 5)
Loans (Details 5) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans with an allowance recorded: | ||
Related Allowance | $ 374 | $ 13 |
Total recorded investment | 2,508 | 5,592 |
Total unpaid principal balance | 2,976 | 9,868 |
Residential real estate [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment , With no related allowance recorded | 379 | 1,319 |
Unpaid Principal Balance, With no related allowance recorded | 684 | 2,243 |
Loans with an allowance recorded: | ||
Total recorded investment | 379 | 1,319 |
Total unpaid principal balance | 684 | 2,243 |
Commercial Real Estate [Member] | ||
Loans with no related allowance recorded: | ||
Recorded Investment , With no related allowance recorded | 3,232 | |
Unpaid Principal Balance, With no related allowance recorded | 6,584 | |
Loans with an allowance recorded: | ||
Recorded Investment , With related allowance recorded | 2,129 | 1,041 |
Unpaid Principal Balance, With related allowance recorded | 2,292 | 1,041 |
Related Allowance | 374 | 13 |
Total recorded investment | 2,129 | 4,273 |
Total unpaid principal balance | $ 2,292 | $ 7,625 |
Loans (Details 6)
Loans (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Impaired Loans: | ||||
Impaired loans - Average Recorded Investment | $ 2,427 | $ 9,430 | $ 3,540 | $ 10,441 |
Impaired loans - Interest Income Recognized | 19 | 53 | 99 | 161 |
Impaired loans - Interest Income Received | 38 | 123 | 153 | 426 |
Residential real estate [Member] | ||||
Impaired Loans: | ||||
Impaired loans - Average Recorded Investment | 598 | 4,532 | 1,057 | 5,367 |
Impaired loans - Interest Income Recognized | 3 | 35 | 36 | 104 |
Impaired loans - Interest Income Received | 16 | 58 | 64 | 211 |
Commercial Real Estate [Member] | ||||
Impaired Loans: | ||||
Impaired loans - Average Recorded Investment | 1,829 | 4,898 | 2,483 | 5,074 |
Impaired loans - Interest Income Recognized | 16 | 18 | 63 | 57 |
Impaired loans - Interest Income Received | $ 22 | $ 65 | $ 89 | $ 215 |
Regulatory Capital (Details)
Regulatory Capital (Details) | Sep. 30, 2016 | Dec. 31, 2015 |
Actual | ||
Tier 1 Capital (to total average assets) ratio | 7.78% | 7.59% |
Tier 1 Capital (to risk-weighted assets) ratio | 11.07% | 10.14% |
Common Equity Tier 1 Capital (to risk-weighted assets) | 11.07% | 10.14% |
Total Capital (to risk-weighted assets) ratio | 12.37% | 11.40% |
Consent Order | ||
Minimum Tier 1 capital to total average assets under consent order, ratio | 8.00% | 8.00% |
Minimum Total capital to risk-weighted assets under consent order, ratio | 12.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net (loss) earnings per share: | ||||
Weighted-average number of common shares outstanding used to calculate basic and diluted earnings (loss) per common share | 1,097,644 | 955,802 | 1,024,704 | 951,977 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | May 01, 2016shares | Dec. 27, 2011shares | |
Reverse stock split ratio | 0.10 | |||
Common stock issued as compensation to directors | $ | $ 32 | $ 229 | ||
Shares available for grant | 149,482 | |||
Post-Split [Member] | ||||
Common stock issued as compensation to directors, shares | 7,559 | 25,112 | ||
2011 Compensation Plan [Member] | ||||
Shares authorized for grant | 210,000 | 105,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Foreclosed real estate, Fair Value | $ 2,412 | $ 4,029 |
Signficiant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 81,419 | 82,429 |
Fair Value [Member] | ||
Loans receivable, Fair Value | 81,419 | 82,429 |
Nonrecurring [Member] | ||
Cumulative Fair value losses | 393 | 2,180 |
Losses recorded in operations during the period | 268 | |
Nonrecurring [Member] | Foreclosed Real Estate [Member] | ||
Cumulative Fair value losses | 1,118 | 1,403 |
Losses recorded in operations during the period | 260 | |
Nonrecurring [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 1,229 | 2,517 |
Foreclosed real estate, Fair Value | 2,412 | 4,029 |
Nonrecurring [Member] | Fair Value [Member] | ||
Loans receivable, Fair Value | 1,229 | 2,517 |
Foreclosed real estate, Fair Value | 2,412 | 4,029 |
Nonrecurring [Member] | Residential real estate [Member] | ||
Cumulative Fair value losses | 125 | 125 |
Nonrecurring [Member] | Residential real estate [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 379 | 423 |
Nonrecurring [Member] | Residential real estate [Member] | Fair Value [Member] | ||
Loans receivable, Fair Value | 379 | 423 |
Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Cumulative Fair value losses | 268 | 2,055 |
Losses recorded in operations during the period | 268 | |
Nonrecurring [Member] | Commercial Real Estate [Member] | Signficiant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 850 | 2,094 |
Nonrecurring [Member] | Commercial Real Estate [Member] | Fair Value [Member] | ||
Loans receivable, Fair Value | $ 850 | $ 2,094 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financial assets: | |||
Securities available for sale | $ 21,931 | $ 25,749 | |
Accrued interest receivable | 389 | 462 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 11,440 | 10,365 | |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Securities available for sale | 21,931 | 25,749 | |
Signficiant Unobservable Inputs (Level 3) [Member] | |||
Financial assets: | |||
Loans | 81,419 | 82,429 | |
Federal Home Loan Bank stock | 1,018 | 966 | |
Accrued interest receivable | 389 | 462 | |
Financial liabilities: | |||
Deposit liabilities | 90,647 | 97,837 | |
Federal Home Loan Bank advances | 20,544 | 20,000 | |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 11,440 | 10,365 | |
Securities available for sale | 21,931 | 25,749 | |
Loans | 81,332 | 82,573 | |
Federal Home Loan Bank stock | 1,018 | 966 | |
Accrued interest receivable | 389 | 462 | |
Financial liabilities: | |||
Deposit liabilities | 90,308 | 97,571 | |
Federal Home Loan Bank advances | 20,500 | 20,000 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 11,440 | 10,365 | |
Securities available for sale | 21,931 | 25,749 | |
Loans | 81,419 | 82,429 | |
Federal Home Loan Bank stock | 1,018 | 966 | |
Accrued interest receivable | 389 | 462 | |
Financial liabilities: | |||
Deposit liabilities | 90,647 | 97,837 | |
Federal Home Loan Bank advances | 20,544 | 20,000 | |
Junior subordinated debenture | [1] | ||
[1] | The Company is unable to determine value based on significant unobservable inputs required in the calculation. Refer to Note 10 for further information. |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Actual | ||
Total Capital | $ 10,564 | $ 10,319 |
Total Capital (to risk-weighted assets) ratio | 12.37% | 11.40% |
Tier 1 Capital | $ 9,458 | $ 9,173 |
Tier 1 Capital (to risk-weighted assets) ratio | 11.07% | 10.14% |
Common equity Tier I capital to Risk-Weighted Assets | $ 9,458 | $ 9,173 |
Common equity Tier I capital to Risk-Weighted Assets, ratio | 11.07% | 10.14% |
Tier 1 Capital | $ 9,458 | $ 9,173 |
Tier 1 Capital (to average assets) ratio | 7.78% | 7.59% |
For Capital Adequacy Purposes | ||
Minimum amount of capital for adequacy purposes | $ 6,832 | $ 7,240 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 5,124 | $ 5,430 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 6.00% |
Common equity Tier I capital to Risk-Weighted Assets | $ 3,843 | $ 4,073 |
Common equity Tier I capital to Risk-Weighted Assets, ratio | 4.50% | 4.50% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 4,865 | $ 4,836 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum to be Well Capitalized | ||
Minimum Tier 1 Capital required to be well-capitalized | $ 8,540 | $ 9,050 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 6,832 | $ 7,240 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 8.00% | 8.00% |
Common equity Tier I capital to Risk-Weighted Assets | $ 5,551 | $ 5,883 |
Common equity Tier I capital to Risk-Weighted Assets, ratio | 6.50% | 6.50% |
Minimum Capital required to be well-capitalized | $ 6,081 | $ 6,045 |
Minimum Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Consent Order | ||
Minimum Capital required under consent order | $ 10,248 | $ 10,860 |
Minimum Capital required under consent order, ratio | 12.00% | 12.00% |
Minimum Tier 1 Capital required under consent order | $ 9,730 | $ 9,672 |
Minimum Tier 1 Capital required under consent order, ratio | 8.00% | 8.00% |
Junior Subordinated Debenture (
Junior Subordinated Debenture (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Junior subordinated debenture | $ 5,155,000 | $ 5,155,000 |
Debt term | 30 years | |
Debt Instrument Interest Rate Stated | 6.40% | |
Debt interest rate terms | Three-month LIBOR rate plus 2.45% | |
Basis spread on variable rate | 2.45% | |
Interest rate during period | 3.13% | |
Deferred interest payments | $ 1,095,700 |
Reverse Common Stock Split (Det
Reverse Common Stock Split (Details Narrative) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Reverse stock split ratio | 0.10 |
Loan Loss Recovery (Details Nar
Loan Loss Recovery (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Loan Loss Recovery | ||||||
Recovery of previously charged-off amounts to the Allowance for Loan and Lease Losses | $ 1,800 | |||||
Allowance for Loan and Lease Losses | $ 4,169 | $ 4,240 | $ 2,295 | $ 1,987 | $ 2,179 | $ 2,244 |
Reclassification (Details Narra
Reclassification (Details Narrative) - Chairman [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Common stock granted | shares | 46,926 |
Share-based compensation expense | $ | $ 200 |