Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 13, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,103,447 | |
Trading Symbol | OPHC | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 18,330 | $ 17,563 |
Interest-bearing deposits with banks | 184 | 77 |
Total cash and cash equivalents | 18,514 | 17,640 |
Securities available for sale | 16,199 | 20,222 |
Loans, net of allowance for loan losses of $3,903 and $3,915 | 69,194 | 76,999 |
Federal Home Loan Bank stock | 979 | 1,113 |
Premises and equipment, net | 2,601 | 2,648 |
Accrued interest receivable | 366 | 380 |
Other assets | 619 | 701 |
Total assets | 108,472 | 119,703 |
Liabilities: | ||
Noninterest-bearing demand deposits | 8,813 | 7,131 |
Savings, NOW and money-market deposits | 21,705 | 22,153 |
Time deposits | 46,856 | 56,725 |
Total deposits | 77,374 | 86,009 |
Federal Home Loan Bank advances | 20,500 | 23,500 |
Junior subordinated debenture | 5,155 | 5,155 |
Advanced payment by borrowers for taxes and insurance | 518 | 221 |
Official checks | 44 | 114 |
Other liabilities | 2,252 | 1,623 |
Total liabilities | 105,843 | 116,622 |
Commitments and contingencies (Notes 1, 8 and 9) | ||
Stockholders' equity: | ||
Preferred stock, no par value; 6,000,000 shares authorized, 7 shares issued and outstanding in 2017 and 2016 | ||
Common stock, $.01 par value; 5,000,000 shares authorized, 1,103,447 shares issued and outstanding in 2017 and 2016 | 11 | 11 |
Additional paid-in capital | 34,039 | 34,039 |
Accumulated deficit | (31,227) | (30,717) |
Accumulated other comprehensive loss | (194) | (252) |
Total stockholders' equity | 2,629 | 3,081 |
Total liabilities and stockholders' equity | $ 108,472 | $ 119,703 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 3,903 | $ 3,915 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 7 | 7 |
Preferred stock, shares outstanding | 7 | 7 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 1,103,447 | 1,103,447 |
Common stock, shares outstanding | 1,103,447 | 1,103,447 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | ||||
Loans | $ 972 | $ 1,082 | $ 2,971 | $ 3,156 |
Securities | 96 | 117 | 306 | 367 |
Other | 65 | 24 | 162 | 75 |
Total interest income | 1,133 | 1,223 | 3,439 | 3,598 |
Interest expense: | ||||
Deposits | 167 | 181 | 524 | 550 |
Borrowings | 141 | 91 | 378 | 260 |
Total interest expense | 308 | 272 | 902 | 810 |
Net interest income | 825 | 951 | 2,537 | 2,788 |
Provision for loan losses | ||||
Net interest income after provision for loan losses | 825 | 951 | 2,537 | 2,788 |
Noninterest income: | ||||
Service charges and fees | 44 | 22 | 55 | 63 |
Gain on sale of securities available for sale | 7 | 2 | 7 | 48 |
Other | 3 | 7 | 9 | 14 |
Total noninterest income | 54 | 31 | 71 | 125 |
Noninterest expenses: | ||||
Salaries and employee benefits | 423 | 430 | 1,301 | 1,385 |
Occupancy and equipment | 91 | 112 | 293 | 346 |
Data processing | 96 | 77 | 262 | 250 |
Professional fees | 134 | 151 | 526 | 480 |
Insurance | 24 | 27 | 72 | 78 |
Regulatory assessment | 50 | 74 | 152 | 221 |
Other | 117 | 89 | 512 | 461 |
Total noninterest expenses | 935 | 965 | 3,118 | 3,263 |
Net (loss) earnings | $ (56) | $ 22 | $ (510) | $ (308) |
Net (loss) earnings per share- | ||||
Basic and diluted | $ (.05) | $ 0.02 | $ (.46) | $ (0.30) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net (loss) earnings | $ (56) | $ 22 | $ (510) | $ (308) |
Unrealized Gain (loss) on securities available for sale: | ||||
Unrealized Gain (loss) arising during the period | 29 | (281) | 100 | 129 |
Reclassification adjustment for realized gains on securities available for sale | (7) | (2) | (7) | (48) |
Net change in unrealized holding loss (gain) | 22 | (283) | 93 | 81 |
Deferred income taxes (benefit) on above change | 8 | (107) | 35 | 33 |
Total other comprehensive income (loss) | 14 | (176) | 58 | 48 |
Comprehensive loss | $ (42) | $ (154) | $ (452) | $ (260) |
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 Total Comprehensive Income (Loss) [Member] | Total |
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 | ||||
Reverse common stock split (1-for-10) | $ (87) | 87 | ||||
Reverse common stock split (1-for-10), shares | (8,665,694) | |||||
Proceeds from sale of preferred stock | 75 | 75 | ||||
Proceeds from sale of preferred stock, shares | 3 | |||||
Proceeds from sale of common stock | $ 1 | 374 | 375 | |||
Proceeds from sale of common stock, shares | 92,980 | |||||
Common stock issued as compensation to directors | $ 1 | 231 | $ 232 | |||
Common stock issued as compensation to directors, shares | 53,855 | 7,559 | ||||
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) | |||||
Net loss | (308) | (308) | ||||
Net change in unrealized loss on securities available for sale, net of taxes | 48 | 48 | ||||
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 | ||||
Balance beginning at Dec. 31, 2016 | $ 11 | 34,039 | (30,717) | (252) | $ 3,081 | |
Balance beginning, shares at Dec. 31, 2016 | 7 | 1,103,447 | ||||
Common stock issued as compensation to directors, shares | ||||||
Net loss | (510) | $ (510) | ||||
Net change in unrealized loss on securities available for sale, net of taxes | 58 | 58 | ||||
Balance ending at Sep. 30, 2017 | $ 11 | $ 34,039 | $ (31,227) | $ (194) | $ 2,629 | |
Balance ending, shares at Sep. 30, 2017 | 7 | 1,103,447 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |
Reverse common stock split | (1-for-10) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (510) | $ (308) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 117 | 118 |
Gain on sale of securities available for sale | (7) | (48) |
Common stock issued as compensation to directors | 32 | |
Common stock issued as compensation for services | 128 | |
Net amortization of fees, premiums and discounts | 316 | 38 |
Decrease in other assets | 47 | 79 |
Decrease in accrued interest receivable | 14 | 73 |
Increase in official checks and other liabilities | 559 | 225 |
Net cash provided by operating activities | 536 | 337 |
Cash flows from investing activities: | ||
Principal repayments and maturity of securities available for sale | 1,656 | 3,074 |
Proceeds from sale of securities available for sale | 2,278 | 18,028 |
Purchase of securities available for sale | (17,294) | |
Net decrease in loans | 7,678 | 1,342 |
Purchase of premises and equipment | (70) | (95) |
Proceeds from sale of foreclosed real estate, net | 1,617 | |
Redemption (Purchase) of Federal Home Loan Bank stock | 134 | (52) |
Net cash provided by investing activities | 11,676 | 6,620 |
Cash flows from financing activities: | ||
Net decrease in deposits | (8,635) | (7,263) |
Increase in advance payments by borrowers for taxes and insurance | 297 | 431 |
Repayment Purchase of Federal Home Loan Bank advances, net | (3,000) | 500 |
Proceeds from sale of common stock | 375 | |
Proceeds from sale of preferred stock | 75 | |
Net cash used in financing activities | (11,338) | (5,882) |
Net increase in cash and cash equivalents | 874 | 1,075 |
Cash and cash equivalents at beginning of the period | 17,640 | 10,365 |
Cash and cash equivalents at end of the period | 18,514 | 11,440 |
Cash paid during the period for: | ||
Interest | 748 | 671 |
Income Taxes | ||
Noncash — Investing Activity | ||
Change in accumulated other comprehensive Income, net change in unrealized loss on securities available for sale | $ 58 | $ 48 |
General
General | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
General | (1) General. Basis of Presentation Going Concern Status Management’s plans with regard to this matter are as follows: 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. In March 2016, the Trustee received a direction from certain equity owners of the Trust that holds the Debenture to sell the Debenture to a Director of the Company. Based upon the receipt of conflicting directions from other debt holders of the Trust, in August 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. The case was subsequently transferred to United States District Court for the Southern District of New York, where the case is currently pending. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. Comprehensive Loss 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 March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326). In March 2017, FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) In May 2017, the FASB issued new guidance related to Stock Compensation, Scope of Modification Accounting. The new guidance provides clarity and reduces both diversity in practice and cost and complexity when applying the guidance in Accounting Standards Codification Topic 718, Compensation—Stock Compensation. An entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award’s fair value, (ii) the award’s vesting conditions and (iii) the award’s classification as an equity or liability instrument. The amendments are effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of determining the effect of the amendments on its condensed consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, The ASU amends ASC 815 which makes limited changes to the Board’s guidance on classifying certain financial instruments as either liabilities or equity. The ASU’s objective is to improve (1) the accounting for instruments with “down-round” provisions and (2) the readability of the guidance in ASC 480 on distinguishing liabilities from equity by replacing the indefinite deferral of certain pending content with scope exceptions. In addition, the ASU amends the guidance on the recognition and measurement of freestanding equity-classified instruments (e.g., warrants) by adding requirements to ASC 260 for entities that disclose earnings per share (EPS). The ASU is effective for annual reporting periods beginning after December 15, 2018, early adoption is permitted upon its issuance. The Company currently has no financials instruments related to this ASU. As a result, the adoption of this guidance is not expected to be material to the condensed consolidated financial statements. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12, which amends the hedge accounting recognition and presentation requirements in ASC 815. The Board’s objectives in issuing the ASU are to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting by preparers. The ASU is effective for fiscal years beginning after December 15, 2018, early adoption is permitted upon its issuance. The Company currently has no hedging relationships. As a result, the adoption of this guidance is not expected to be material to the condensed consolidated financial statements. Reclassification. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | (2) Securities. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At September 30, 2017: Securities Available for Sale: Collateralized mortgage obligations $ 9,181 $ — $ (299 ) $ 8,882 SBA Pool Securities 7,330 8 (21 ) 7,317 Total $ 16,511 $ 8 $ (320 ) $ 16,199 At December 31, 2016: Securities Available for Sale: Collateralized mortgage obligations $ 10,157 $ — $ (405 ) $ 9,752 SBA Pool Securities 10,470 — — 10,470 Total $ 20,627 $ — $ (405 ) $ 20,222 The following summarizes the sales of securities (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales of securities $ 2,278 $ 8,180 $ 2,278 $ 18,028 Gross gains from sale of securities 7 20 7 66 Gross losses from sale of securities — (18 ) — (18 ) Net gain from sales of securities $ 7 $ 2 $ 7 $ 48 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, 2017 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale: Collateralized mortgage obligations $ (299) $ 8,882 $ — $ — SBA Pool Securities — — (21 ) 4,091 $ (299) $ 8,882 $ (21 ) $ 4,091 At December 31, 2016 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale- Collateralized mortgage obligations $ (46 ) $ 864 $ (359 ) $ 8,888 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrants such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospectus of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2017 and December 31, 2016, the unrealized losses on fourteen investment securities and six investment securities, respectively 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. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans | (3) Loans. At September 30, 2017 At December 31, 2016 Residential real estate $ 26,564 $ 27,334 Multi-family real estate 6,142 5,829 Commercial real estate 30,637 29,264 Land and construction 3,037 5,681 Commercial 5,390 10,514 Consumer 1,025 1,829 Total loans 72,795 80,451 Add (deduct): Net deferred loan fees, costs and premiums 302 463 Allowance for loan losses (3,903 ) (3,915 ) Loans, net $ 69,194 $ 76,999 An analysis of the change in the allowance for loan losses follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Three Months Ended September 30, 2017: Beginning balance $ 302 $ 62 $ 769 $ 61 $ 67 $ 148 $ 2,486 $ 3,895 Provision (credit) for loan losses 322 $ — $ 6 $ (2 ) $ (2 ) $ (3 ) $ (321 ) $ — Charge-offs — $ — $ — $ — $ — $ (3 ) $ — $ (3 ) Recoveries — $ — $ — $ 6 $ — $ 5 $ — $ 11 Ending balance $ 624 $ 62 $ 775 $ 65 $ 65 $ 147 $ 2,165 $ 3,903 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, 2017: Beginning balance $ 310 $ 58 $ 787 $ 120 $ 188 $ 165 $ 2,287 $ 3,915 Provision (credit) for loan losses 314 $ 4 $ (12 ) $ (73 ) $ (123 ) $ 12 $ (122 ) $ — Charge-offs — $ — $ — $ — $ — $ (43 ) $ — $ (43 ) Recoveries — $ — $ — $ 18 $ — $ 13 $ — $ 31 Ending balance $ 624 $ 62 $ 775 $ 65 $ 65 $ 147 $ 2,165 $ 3,903 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 Residential Real Estate Multi- Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At September 30, 2017: Individually evaluated for impairment: Recorded investment $ 1,354 $ — $ 981 $ — $ — $ — $ — $ 2,335 Balance in allowance for loan losses $ 336 $ — $ 76 $ — $ — $ — $ — $ 412 Collectively evaluated for impairment: Recorded investment $ 25,210 $ 6,142 $ 29,656 $ 3,037 $ 5,390 $ 1,025 $ — $ 70,460 Balance in allowance for loan losses $ 288 $ 62 $ 699 $ 65 $ 65 $ 147 $ 2,165 $ 3,491 At December 31, 2016: Individually evaluated for impairment: Recorded investment $ 375 $ — $ 1,004 $ — $ — $ — $ — $ 1,379 Balance in allowance for loan losses $ — $ — $ 104 $ — $ — $ — $ — $ 104 Collectively evaluated for impairment: Recorded investment $ 26,959 $ 5,829 $ 28,260 $ 5,681 $ 10,514 $ 1,829 $ — $ 79,072 Balance in allowance for loan losses $ 310 $ 58 $ 683 $ 120 $ 188 $ 165 $ 2,287 $ 3,811 Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction. Commercial. Consumer. The following summarizes the loan credit quality (in thousands): Pass OLEM (Other Loans Especially Mentioned) Sub- standard Doubtful Loss Total At September 30, 2017: Residential real estate $ 22,820 $ 3,375 $ 369 $ — $ — $ 26,564 Multi-family real estate 6,142 $ — $ — $ — $ — $ 6,142 Commercial real estate 26,773 $ 2,883 $ 981 $ — $ — $ 30,637 Land and construction 651 $ 2,386 $ — $ — $ — $ 3,037 Commercial 3,133 $ 2,257 $ — $ — $ — $ 5,390 Consumer 1,025 $ — $ — $ — $ — $ 1,025 Total $ 60,544 $ 10,901 $ 1,350 $ — $ — $ 72,795 At December 31, 2016: Residential real estate $ 25,326 $ 1,633 $ 375 $ — $ — $ 27,334 Multi-family real estate 5,829 — — — — 5,829 Commercial real estate 25,979 1,174 2,111 — — 29,264 Land and construction 5,636 45 — — — 5,681 Commercial 8,768 — 1,746 — — 10,514 Consumer 1,823 — 6 — — 1,829 Total $ 73,361 $ 2,852 $ 4,238 $ — $ — $ 80,451 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 – 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. Age analysis of past-due loans is as follows (in thousands): 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, 2017: Residential real estate $ — $ — $ — $ — $ 26,564 $ — $ 26,564 Multi-family real estate — — — — 6,142 — 6,142 Commercial real estate — — — — 30,637 — 30,637 Land and construction — — — — 3,037 — 3,037 Commercial — — — — 5,390 — 5,390 Consumer — — — — 1,025 — 1,025 Total $ — $ — $ $ — $ 72,795 $ — $ 72,795 At December 31, 2016: Residential real estate $ — $ — $ — $ — $ 26,959 $ 375 $ 27,334 Multi-family real estate — — — — 5,829 — 5,829 Commercial real estate — — — — 29,264 — 29,264 Land and construction — — — — 5,681 — 5,681 Commercial — — — — 10,514 — 10,514 Consumer — 6 — 6 1,823 — 1,829 Total $ — $ 6 $ — $ 6 $ 80,070 $ 375 $ 80,451 The following summarizes the amount of impaired loans (in thousands): At September 30, 2017 At December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 370 $ 495 $ — $ 375 $ 501 $ — Commercial real estate 232 232 — — — — With related allowance recorded: Residential real estate 984 984 336 — — — Commercial real estate $ 749 749 76 1,004 1,004 104 Total Residential real estate $ 1,354 $ 1,479 $ 336 $ 375 $ 501 $ — Commercial real estate $ 981 $ 981 $ 76 $ 1,004 $ 1,004 $ 104 Total $ 2,335 $ 2,460 $ 412 $ 1,379 $ 1,505 $ 104 The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): Three Months Ended September 30, 2017 2016 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 385 $ 12 $ 12 $ 598 $ 3 $ 16 Commercial real estate $ 907 $ 14 $ 14 $ 1,829 $ 16 $ 22 Total $ 1,292 $ 26 $ 26 $ 2,427 $ 19 $ 38 Nine Months Ended September 30, 2017 2016 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 375 $ 36 $ 36 $ 1,057 $ 36 $ 64 Commercial real estate $ 899 $ 39 $ 39 $ 2,483 $ 63 $ 89 Total $ 1,274 $ 75 $ 75 $ 3,540 $ 99 $ 153 No loans have been determined to be troubled debt restructurings during the three and nine month periods ended September 30, 2017 or 2016. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | (4) Regulatory Capital. Bank Consent Order Regulatory Requirement Tier I capital to total average assets 8.54 % 8.00 % Tier I capital to risk-weighted assets 13.12 % NA % Common equity Tier I capital to risk-weighted assets 13.12 % NA % Total capital to risk-weighted assets 14.42 % 12.00 % At September 30, 2017, 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. |
Loss (Earnings) Per Share
Loss (Earnings) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Loss (Earnings) Per Share | (5) (Loss) Earnings per Share. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted-average number of common shares outstanding used to calculate basic and diluted (loss) earnings per common share 1,103,447 1,097,644 1,103,447 1,024,704 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (6) Stock-Based Compensation. As of September 30, 2017, only common stock has been issued as compensation to directors for services rendered under this plan. There were no shares of common stock issued during the period ended September 30, 2017. A total of 7,559 shares of common stock (adjusted for one-for-ten reverse stock split) were issued during the period ended September 30, 2016. A total of $32,000 of compensation was recorded during the period ended September 30, 2016. Subsequently, $200,000 (46,296 shares) was reclassified to other liabilities (see Note 13). At September 30, 2017, a total of 145,861 (adjusted for one-for-ten reverse stock split) shares remain available for grant. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (7) Fair Value Measurements. Impaired Collateral Dependent Loans: Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations At September 30, 2017- Residential real estate $ 1,018 $ — $ — $ 1,018 $ 461 $ — Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations At December 31, 2016- Residential real estate $ 375 $ — $ — $ 375 $ 126 $ — Available-for-sale securities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements Using Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2017: Collateralized mortgage obligations $ 8,882 — $ 8,882 — SBA Pool Securities 7,317 — 7,317 — $ 16,199 — $ 16,199 — At December 31, 2016: Collateralized mortgage obligations $ 9,752 $ — $ 9,752 $ — SBA Pool Securities 10,470 — 10,470 — $ 20,222 $ — $ 20,222 $ — During the three and nine month periods ended September 30, 2017 and 2016, no securities were transferred in or out of Level 1, Level 2 or Level 3. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (8) Fair Value of Financial Instruments. At September 30, 2017 At December 31, 2016 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 18,514 $ 18,514 1 $ 17,640 $ 17,640 1 Securities available for sale 16,199 16,199 2 20,222 20,222 2 Loans 69,194 69,095 3 76,999 76,829 3 Federal Home Loan Bank stock 979 979 3 1,113 1,113 3 Accrued interest receivable 366 366 3 380 380 3 Financial liabilities: Deposit liabilities 77,374 77,935 3 86,009 86,364 3 Federal Home Loan Bank advances 20,500 20,458 3 23,500 23,500 3 Junior subordinated debenture 5,155 NA (1) 3 5,155 N/A (1) 3 Off-balance sheet financial instruments — — — — — — (1) The Company is unable to determine the fair value based on significant unobservable inputs required in the calculation refer to Note 10 for further information. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the condensed consolidated balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the counterparty. As of September 30, 2017, commitments to extend credit totaled $4.3 million. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
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. Beginning on January 1, 2016, the Bank became subject to the capital conservation buffer rules which places limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers. In order to avoid these limitations, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. As of September 30, 2017 and December 31, 2016, the Bank’s capital conversation buffer exceeds the minimum requirements of 0.625%. The required buffer is to be phased in over three years. Under the new regulations in the first quarter of 2015, the Bank elected an irreversible one-time opt-out to exclude accumulated other comprehensive loss from regulatory capital. The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at September 30, 2017 and December 31, 2016 (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, 2017: Total Capital to Risk-Weighted Assets $ 10,472 14.42 % $ 5,809 8.0 % $ 7,262 10.0 % $ 8,714 12.00 % Tier I Capital to Risk-Weighted Assets 9,527 13.12 % 4,357 6.0 % 5,809 8.0 % NA NA Common equity Tier I capital to Risk-Weighted Assets 9,527 13.12 % 3,268 4.5 % 4,720 6.5 % NA NA Tier I Capital to Total Assets 9,527 8.54 % 4,463 4.0 % 5,579 5.0 % 8,926 8.00 % As of December 31, 2016: Total Capital to Risk-Weighted Assets $ 10,662 12.79 % $ 6,609 8.0 % $ 8,261 10.0 % $ 9,913 12.0 % Tier I Capital to Risk-Weighted Assets 9,498 11.50 % 4,957 6.0 % 6,609 8.0 % N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,498 11.50 % 3,718 4.5 % 5,370 6.5 % N/A N/A Tier I Capital to Total Assets 9,498 8.06 % 4,714 4.0 % 5,893 5.0 % 9,428 8.0 % Regulatory Enforcement Actions Bank Consent Order ’ See Footnote 13 to the Consolidated Financial Statements included in the Company’s 2016 Form 10-K for additional information concerning the requirements of the Consent Order. Company Written Agreement with Reserve Bank |
Junior Subordinated Debenture
Junior Subordinated Debenture | 9 Months Ended |
Sep. 30, 2017 | |
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. 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, in August 26, 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. The case was subsequently transferred to the United States District Court for the Southern District of New York, were the case is currently pending. 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, 2017 | |
Equity [Abstract] | |
Reverse Common Stock Split | (11) Reverse Common Stock Split. |
Loan Loss Recovery
Loan Loss Recovery | 9 Months Ended |
Sep. 30, 2017 | |
Loan Loss Recovery | |
Loan Loss Recovery | (12) Loan Loss Recovery. |
Reclassification
Reclassification | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification | (13) Reclassification. |
Brokered Deposits
Brokered Deposits | 9 Months Ended |
Sep. 30, 2017 | |
Brokered Deposits | |
Brokered Deposits | (14) Brokered Deposits. |
Bank Secrecy Act (_BSA_) Lookba
Bank Secrecy Act (“BSA”) Lookback Review | 9 Months Ended |
Sep. 30, 2017 | |
Bank Secrecy Act Bsa Lookback Review | |
Bank Secrecy Act (“BSA”) Lookback Review | (15) Bank Secrecy Act (“BSA”) Lookback Review. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Going Concern Status | Going Concern Status Management’s plans with regard to this matter are as follows: 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. In March 2016, the Trustee received a direction from certain equity owners of the Trust that holds the Debenture to sell the Debenture to a Director of the Company. Based upon the receipt of conflicting directions from other debt holders of the Trust, in August 2016, the Trustee commenced an action in a Minnesota State Court seeking directions from the Court. The case was subsequently transferred to United States District Court for the Southern District of New York, where the case is currently pending. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. |
Comprehensive (Loss) Income | Comprehensive Loss |
Income Taxes | Income Taxes. |
Recent Pronouncements | 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 March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326). In March 2017, FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) In May 2017, the FASB issued new guidance related to Stock Compensation, Scope of Modification Accounting. The new guidance provides clarity and reduces both diversity in practice and cost and complexity when applying the guidance in Accounting Standards Codification Topic 718, Compensation—Stock Compensation. An entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award’s fair value, (ii) the award’s vesting conditions and (iii) the award’s classification as an equity or liability instrument. The amendments are effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of determining the effect of the amendments on its condensed consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, The ASU amends ASC 815 which makes limited changes to the Board’s guidance on classifying certain financial instruments as either liabilities or equity. The ASU’s objective is to improve (1) the accounting for instruments with “down-round” provisions and (2) the readability of the guidance in ASC 480 on distinguishing liabilities from equity by replacing the indefinite deferral of certain pending content with scope exceptions. In addition, the ASU amends the guidance on the recognition and measurement of freestanding equity-classified instruments (e.g., warrants) by adding requirements to ASC 260 for entities that disclose earnings per share (EPS). The ASU is effective for annual reporting periods beginning after December 15, 2018, early adoption is permitted upon its issuance. The Company currently has no financials instruments related to this ASU. As a result, the adoption of this guidance is not expected to be material to the condensed consolidated financial statements. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12, which amends the hedge accounting recognition and presentation requirements in ASC 815. The Board’s objectives in issuing the ASU are to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting by preparers. The ASU is effective for fiscal years beginning after December 15, 2018, early adoption is permitted upon its issuance. The Company currently has no hedging relationships. As a result, the adoption of this guidance is not expected to be material to the condensed consolidated financial statements. |
Reclassification | Reclassification. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Values of Securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At September 30, 2017: Securities Available for Sale: Collateralized mortgage obligations $ 9,181 $ — $ (299 ) $ 8,882 SBA Pool Securities 7,330 8 (21 ) 7,317 Total $ 16,511 $ 8 $ (320 ) $ 16,199 At December 31, 2016: Securities Available for Sale: Collateralized mortgage obligations $ 10,157 $ — $ (405 ) $ 9,752 SBA Pool Securities 10,470 — — 10,470 Total $ 20,627 $ — $ (405 ) $ 20,222 |
Schedule of Sales of Securities | The following summarizes the sales of securities (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales of securities $ 2,278 $ 8,180 $ 2,278 $ 18,028 Gross gains from sale of securities 7 20 7 66 Gross losses from sale of securities — (18 ) — (18 ) Net gain from sales of securities $ 7 $ 2 $ 7 $ 48 |
Schedule of Securities with Gross Unrealized Losses, by Investment Category | 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, 2017 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale: Collateralized mortgage obligations $ (299) $ 8,882 $ — $ — SBA Pool Securities — — (21 ) 4,091 $ (299) $ 8,882 $ (21 ) $ 4,091 At December 31, 2016 Over Twelve Months Less Than Twelve Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale- Collateralized mortgage obligations $ (46 ) $ 864 $ (359 ) $ 8,888 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Components of Loans | The components of loans are as follows (in thousands): At September 30, 2017 At December 31, 2016 Residential real estate $ 26,564 $ 27,334 Multi-family real estate 6,142 5,829 Commercial real estate 30,637 29,264 Land and construction 3,037 5,681 Commercial 5,390 10,514 Consumer 1,025 1,829 Total loans 72,795 80,451 Add (deduct): Net deferred loan fees, costs and premiums 302 463 Allowance for loan losses (3,903 ) (3,915 ) Loans, net $ 69,194 $ 76,999 |
Schedule of Change in Allowance for Loan Losses | An analysis of the change in the allowance for loan losses follows (in thousands): Residential Real Estate Multi-Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total Three Months Ended September 30, 2017: Beginning balance $ 302 $ 62 $ 769 $ 61 $ 67 $ 148 $ 2,486 $ 3,895 Provision (credit) for loan losses 322 $ — $ 6 $ (2 ) $ (2 ) $ (3 ) $ (321 ) $ — Charge-offs — $ — $ — $ — $ — $ (3 ) $ — $ (3 ) Recoveries — $ — $ — $ 6 $ — $ 5 $ — $ 11 Ending balance $ 624 $ 62 $ 775 $ 65 $ 65 $ 147 $ 2,165 $ 3,903 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, 2017: Beginning balance $ 310 $ 58 $ 787 $ 120 $ 188 $ 165 $ 2,287 $ 3,915 Provision (credit) for loan losses 314 $ 4 $ (12 ) $ (73 ) $ (123 ) $ 12 $ (122 ) $ — Charge-offs — $ — $ — $ — $ — $ (43 ) $ — $ (43 ) Recoveries — $ — $ — $ 18 $ — $ 13 $ — $ 31 Ending balance $ 624 $ 62 $ 775 $ 65 $ 65 $ 147 $ 2,165 $ 3,903 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 Residential Real Estate Multi- Family Real Estate Commercial Real Estate Land and Construction Commercial Consumer Unallocated Total At September 30, 2017: Individually evaluated for impairment: Recorded investment $ 1,354 $ — $ 981 $ — $ — $ — $ — $ 2,335 Balance in allowance for loan losses $ 336 $ — $ 76 $ — $ — $ — $ — $ 412 Collectively evaluated for impairment: Recorded investment $ 25,210 $ 6,142 $ 29,656 $ 3,037 $ 5,390 $ 1,025 $ — $ 70,460 Balance in allowance for loan losses $ 288 $ 62 $ 699 $ 65 $ 65 $ 147 $ 2,165 $ 3,491 At December 31, 2016: Individually evaluated for impairment: Recorded investment $ 375 $ — $ 1,004 $ — $ — $ — $ — $ 1,379 Balance in allowance for loan losses $ — $ — $ 104 $ — $ — $ — $ — $ 104 Collectively evaluated for impairment: Recorded investment $ 26,959 $ 5,829 $ 28,260 $ 5,681 $ 10,514 $ 1,829 $ — $ 79,072 Balance in allowance for loan losses $ 310 $ 58 $ 683 $ 120 $ 188 $ 165 $ 2,287 $ 3,811 |
Schedule of Loans by Credit Quality | The following summarizes the loan credit quality (in thousands): Pass OLEM (Other Loans Especially Mentioned) Sub- standard Doubtful Loss Total At September 30, 2017: Residential real estate $ 22,820 $ 3,375 $ 369 $ — $ — $ 26,564 Multi-family real estate 6,142 $ — $ — $ — $ — $ 6,142 Commercial real estate 26,773 $ 2,883 $ 981 $ — $ — $ 30,637 Land and construction 651 $ 2,386 $ — $ — $ — $ 3,037 Commercial 3,133 $ 2,257 $ — $ — $ — $ 5,390 Consumer 1,025 $ — $ — $ — $ — $ 1,025 Total $ 60,544 $ 10,901 $ 1,350 $ — $ — $ 72,795 At December 31, 2016: Residential real estate $ 25,326 $ 1,633 $ 375 $ — $ — $ 27,334 Multi-family real estate 5,829 — — — — 5,829 Commercial real estate 25,979 1,174 2,111 — — 29,264 Land and construction 5,636 45 — — — 5,681 Commercial 8,768 — 1,746 — — 10,514 Consumer 1,823 — 6 — — 1,829 Total $ 73,361 $ 2,852 $ 4,238 $ — $ — $ 80,451 |
Schedule of Age Analysis of Past-due Loans | Age analysis of past-due loans is as follows (in thousands): 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, 2017: Residential real estate $ — $ — $ — $ — $ 26,564 $ — $ 26,564 Multi-family real estate — — — — 6,142 — 6,142 Commercial real estate — — — — 30,637 — 30,637 Land and construction — — — — 3,037 — 3,037 Commercial — — — — 5,390 — 5,390 Consumer — — — — 1,025 — 1,025 Total $ — $ — $ $ — $ 72,795 $ — $ 72,795 At December 31, 2016: Residential real estate $ — $ — $ — $ — $ 26,959 $ 375 $ 27,334 Multi-family real estate — — — — 5,829 — 5,829 Commercial real estate — — — — 29,264 — 29,264 Land and construction — — — — 5,681 — 5,681 Commercial — — — — 10,514 — 10,514 Consumer — 6 — 6 1,823 — 1,829 Total $ — $ 6 $ — $ 6 $ 80,070 $ 375 $ 80,451 |
Schedule of Impaired Loans | The following summarizes the amount of impaired loans (in thousands): At September 30, 2017 At December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Residential real estate $ 370 $ 495 $ — $ 375 $ 501 $ — Commercial real estate 232 232 — — — — With related allowance recorded: Residential real estate 984 984 336 — — — Commercial real estate $ 749 749 76 1,004 1,004 104 Total Residential real estate $ 1,354 $ 1,479 $ 336 $ 375 $ 501 $ — Commercial real estate $ 981 $ 981 $ 76 $ 1,004 $ 1,004 $ 104 Total $ 2,335 $ 2,460 $ 412 $ 1,379 $ 1,505 $ 104 |
Schedule of Interest Income Recognized and Received On Impaired Loans | The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): Three Months Ended September 30, 2017 2016 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 385 $ 12 $ 12 $ 598 $ 3 $ 16 Commercial real estate $ 907 $ 14 $ 14 $ 1,829 $ 16 $ 22 Total $ 1,292 $ 26 $ 26 $ 2,427 $ 19 $ 38 Nine Months Ended September 30, 2017 2016 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income Investment Recognized Received Investment Recognized Received Residential real estate $ 375 $ 36 $ 36 $ 1,057 $ 36 $ 64 Commercial real estate $ 899 $ 39 $ 39 $ 2,483 $ 63 $ 89 Total $ 1,274 $ 75 $ 75 $ 3,540 $ 99 $ 153 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital Requirements | The following is a summary at September 30, 2017 of the regulatory capital requirements and the Bank’s capital on a percentage basis: Bank Consent Order Regulatory Requirement Tier I capital to total average assets 8.54 % 8.00 % Tier I capital to risk-weighted assets 13.12 % NA % Common equity Tier I capital to risk-weighted assets 13.12 % NA % Total capital to risk-weighted assets 14.42 % 12.00 % |
Loss (Earnings) Per Share (Tabl
Loss (Earnings) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | (Loss) earnings per common share have been computed based on the following (weighted-average number of common shares outstanding have been adjusted for the reverse stock split discussed in note 11): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted-average number of common shares outstanding used to calculate basic and diluted (loss) earnings per common share 1,103,447 1,097,644 1,103,447 1,024,704 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured On Nonrecurring Basis | Impaired Collateral Dependent Loans: Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations At September 30, 2017- Residential real estate $ 1,018 $ — $ — $ 1,018 $ 461 $ — Fair Value Level 1 Level 2 Level 3 Total Losses Losses Recorded in Operations At December 31, 2016- Residential real estate $ 375 $ — $ — $ 375 $ 126 $ — |
Schedule of Assets Measured On Recurring Basis | Available-for-sale securities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements Using Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At September 30, 2017: Collateralized mortgage obligations $ 8,882 — $ 8,882 — SBA Pool Securities 7,317 — 7,317 — $ 16,199 — $ 16,199 — At December 31, 2016: Collateralized mortgage obligations $ 9,752 $ — $ 9,752 $ — SBA Pool Securities 10,470 — 10,470 — $ 20,222 $ — $ 20,222 $ — |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Schedule of Estimated Fair Value of Financial Instruments | The estimated fair values and fair value measurement method with respect to the Company’s financial instruments were as follows (in thousands): At September 30, 2017 At December 31, 2016 Carrying Amount Fair Value Level Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ 18,514 $ 18,514 1 $ 17,640 $ 17,640 1 Securities available for sale 16,199 16,199 2 20,222 20,222 2 Loans 69,194 69,095 3 76,999 76,829 3 Federal Home Loan Bank stock 979 979 3 1,113 1,113 3 Accrued interest receivable 366 366 3 380 380 3 Financial liabilities: Deposit liabilities 77,374 77,935 3 86,009 86,364 3 Federal Home Loan Bank advances 20,500 20,458 3 23,500 23,500 3 Junior subordinated debenture 5,155 NA (1) 3 5,155 N/A (1) 3 Off-balance sheet financial instruments — — — — — — (1) The Company is unable to determine the fair 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, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Capital Amounts, Ratios and Regulatory Thresholds | The following table shows the Bank’s capital amounts and ratios and regulatory thresholds at September 30, 2017 and December 31, 2016 (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, 2017: Total Capital to Risk-Weighted Assets $ 10,472 14.42 % $ 5,809 8.0 % $ 7,262 10.0 % $ 8,714 12.00 % Tier I Capital to Risk-Weighted Assets 9,527 13.12 % 4,357 6.0 % 5,809 8.0 % NA NA Common equity Tier I capital to Risk-Weighted Assets 9,527 13.12 % 3,268 4.5 % 4,720 6.5 % NA NA Tier I Capital to Total Assets 9,527 8.54 % 4,463 4.0 % 5,579 5.0 % 8,926 8.00 % As of December 31, 2016: Total Capital to Risk-Weighted Assets $ 10,662 12.79 % $ 6,609 8.0 % $ 8,261 10.0 % $ 9,913 12.0 % Tier I Capital to Risk-Weighted Assets 9,498 11.50 % 4,957 6.0 % 6,609 8.0 % N/A N/A Common equity Tier I capital to Risk-Weighted Assets 9,498 11.50 % 3,718 4.5 % 5,370 6.5 % N/A N/A Tier I Capital to Total Assets 9,498 8.06 % 4,714 4.0 % 5,893 5.0 % 9,428 8.0 % |
General (Details Narrative)
General (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accounting Policies [Abstract] | |
Junior subordinated debenture | $ 5,155 |
Debt instrument periodic payment, principal | 5,155 |
Accrued and unpaid interest payable | $ 1,314 |
Securities (Details Narrative)
Securities (Details Narrative) - Number | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Investment securities in unrealized loss position | 14 | 6 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Approximate Fair Values of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | $ 16,511 | $ 20,627 |
Gross Unrealized Gains | 8 | |
Gross Unrealized Losses | (320) | (405) |
Fair Value | 16,199 | 20,222 |
Collateralized Mortgage Obligations [Member] | ||
Amortized Cost | 9,181 | 10,157 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (299) | (405) |
Fair Value | 8,882 | 9,752 |
SBA Pool Securities [Member] | ||
Amortized Cost | 7,330 | 10,470 |
Gross Unrealized Gains | 8 | |
Gross Unrealized Losses | (21) | |
Fair Value | $ 7,317 | $ 10,470 |
Securities - Schedule of Sales
Securities - Schedule of Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of securities | $ 2,278 | $ 8,180 | $ 2,278 | $ 18,028 |
Gross gains from sale of securities | 7 | 21 | 7 | 66 |
Gross losses from sale of securities | (18) | (18) | ||
Net gain from sales of securities | $ 7 | $ 2 | $ 7 | $ 48 |
Securities - Schedule of Securi
Securities - Schedule of Securities with Gross Unrealized Losses, by Investment Category (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Securities in an Unrealized Loss Position Over 12 Months, Gross unrealized Losses | $ (299) | |
Securities in an Unrealized Loss Position Over 12 Months, Fair Value | 8,882 | |
Securities in an Unrealized Loss Position Less than 12 Month, Gross unrealized Losses | (21) | |
Securities in an Unrealized Loss Position Less than 12 Month, Fair Value | 4,091 | |
Collateralized Mortgage Obligations [Member] | ||
Securities in an Unrealized Loss Position Over 12 Months, Gross unrealized Losses | (299) | $ (46) |
Securities in an Unrealized Loss Position Over 12 Months, Fair Value | 8,882 | 864 |
Securities in an Unrealized Loss Position Less than 12 Month, Gross unrealized Losses | (359) | |
Securities in an Unrealized Loss Position Less than 12 Month, Fair Value | $ 8,888 | |
SBA Pool Securities [Member] | ||
Securities in an Unrealized Loss Position Over 12 Months, Gross unrealized Losses | ||
Securities in an Unrealized Loss Position Over 12 Months, Fair Value | ||
Securities in an Unrealized Loss Position Less than 12 Month, Gross unrealized Losses | (21) | |
Securities in an Unrealized Loss Position Less than 12 Month, Fair Value | $ 4,091 |
Loans - Schedule of Components
Loans - Schedule of Components of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Jan. 06, 2016 | Dec. 31, 2015 |
Total loans | $ 72,795 | $ 80,451 | |||||
Net deferred loan fees, costs and premiums | 302 | 463 | |||||
Allowance for loan losses | (3,903) | $ (3,895) | (3,915) | $ (4,169) | $ (4,240) | $ (4,200) | $ (2,295) |
Loans, net | 69,194 | 76,999 | |||||
Residential Real Estate [Member] | |||||||
Total loans | 26,564 | 27,334 | |||||
Allowance for loan losses | (624) | (302) | (310) | (320) | (262) | (116) | |
Multi-Family Real Estate [Member] | |||||||
Total loans | 6,142 | 5,829 | |||||
Allowance for loan losses | (62) | (62) | (58) | (58) | (39) | (26) | |
Commercial Real Estate [Member] | |||||||
Total loans | 30,637 | 29,264 | |||||
Allowance for loan losses | (775) | (769) | (787) | (1,087) | (1,012) | (1,085) | |
Land and Construction [Member] | |||||||
Total loans | 3,037 | 5,681 | |||||
Allowance for loan losses | (65) | (61) | (120) | (66) | (64) | (77) | |
Commercial [Member] | |||||||
Total loans | 5,390 | 10,514 | |||||
Allowance for loan losses | (65) | (67) | (188) | (248) | (200) | (120) | |
Consumer [Member] | |||||||
Total loans | 1,025 | 1,829 | |||||
Allowance for loan losses | $ (147) | $ (148) | $ (165) | $ (168) | $ (156) | $ (151) |
Loans - Schedule of Change in A
Loans - Schedule of Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Beginning balance | $ 3,895 | $ 4,240 | $ 3,915 | $ 2,295 | |
Provision (credit) for loan losses | |||||
Charge-offs | (3) | (86) | (43) | (209) | |
Recoveries | 11 | 15 | 31 | 2,083 | |
Ending balance | 3,903 | 4,169 | 3,903 | 4,169 | |
Individually evaluated for impairment, Recorded investment | 2,335 | 2,335 | $ 1,379 | ||
Individually evaluated for impairment, Allowance for loan losses | 412 | 412 | 104 | ||
Collectively evaluated for impairment, Recorded investment | 70,460 | 70,460 | 79,072 | ||
Collectively evaluated for impairment, Allowance for loan losses | 3,491 | 3,491 | 3,811 | ||
Residential Real Estate [Member] | |||||
Beginning balance | 302 | 262 | 310 | 116 | |
Provision (credit) for loan losses | 322 | 58 | 314 | 204 | |
Charge-offs | |||||
Recoveries | |||||
Ending balance | 624 | 320 | 624 | 320 | |
Individually evaluated for impairment, Recorded investment | 1,354 | 1,354 | 375 | ||
Individually evaluated for impairment, Allowance for loan losses | 336 | 336 | |||
Collectively evaluated for impairment, Recorded investment | 25,210 | 25,210 | 26,959 | ||
Collectively evaluated for impairment, Allowance for loan losses | 288 | 288 | 310 | ||
Multi-Family Real Estate [Member] | |||||
Beginning balance | 62 | 39 | 58 | 26 | |
Provision (credit) for loan losses | 19 | 4 | 32 | ||
Charge-offs | |||||
Recoveries | |||||
Ending balance | 62 | 58 | 62 | 58 | |
Individually evaluated for impairment, Recorded investment | |||||
Individually evaluated for impairment, Allowance for loan losses | |||||
Collectively evaluated for impairment, Recorded investment | 6,142 | 6,142 | 5,829 | ||
Collectively evaluated for impairment, Allowance for loan losses | 62 | 62 | 58 | ||
Commercial Real Estate [Member] | |||||
Beginning balance | 769 | 1,012 | 787 | 1,085 | |
Provision (credit) for loan losses | 6 | 89 | (12) | (2,033) | |
Charge-offs | (14) | (14) | |||
Recoveries | 2,049 | ||||
Ending balance | 775 | 1,087 | 775 | 1,087 | |
Individually evaluated for impairment, Recorded investment | 981 | 981 | 1,004 | ||
Individually evaluated for impairment, Allowance for loan losses | 76 | 76 | 104 | ||
Collectively evaluated for impairment, Recorded investment | 29,656 | 29,656 | 28,260 | ||
Collectively evaluated for impairment, Allowance for loan losses | 699 | 699 | 683 | ||
Land and Construction [Member] | |||||
Beginning balance | 61 | 64 | 120 | 77 | |
Provision (credit) for loan losses | (2) | (4) | (73) | (29) | |
Charge-offs | |||||
Recoveries | 6 | 6 | 18 | 18 | |
Ending balance | 65 | 66 | 65 | 66 | |
Individually evaluated for impairment, Recorded investment | |||||
Individually evaluated for impairment, Allowance for loan losses | |||||
Collectively evaluated for impairment, Recorded investment | 3,037 | 3,037 | 5,681 | ||
Collectively evaluated for impairment, Allowance for loan losses | 65 | 65 | 120 | ||
Commercial [Member] | |||||
Beginning balance | 67 | 200 | 188 | 120 | |
Provision (credit) for loan losses | (2) | 48 | (123) | 128 | |
Charge-offs | |||||
Recoveries | |||||
Ending balance | 65 | 248 | 65 | 248 | |
Individually evaluated for impairment, Recorded investment | |||||
Individually evaluated for impairment, Allowance for loan losses | |||||
Collectively evaluated for impairment, Recorded investment | 5,390 | 5,390 | 10,514 | ||
Collectively evaluated for impairment, Allowance for loan losses | 65 | 65 | 188 | ||
Consumer [Member] | |||||
Beginning balance | 148 | 156 | 165 | 151 | |
Provision (credit) for loan losses | (3) | 75 | 12 | 196 | |
Charge-offs | (3) | (72) | (43) | (195) | |
Recoveries | 5 | 9 | 13 | 16 | |
Ending balance | 147 | 168 | 147 | 168 | |
Individually evaluated for impairment, Recorded investment | |||||
Individually evaluated for impairment, Allowance for loan losses | |||||
Collectively evaluated for impairment, Recorded investment | 1,025 | 1,025 | 1,829 | ||
Collectively evaluated for impairment, Allowance for loan losses | 147 | 147 | 165 | ||
Unallocated [Member] | |||||
Beginning balance | 2,486 | 2,507 | 2,287 | 720 | |
Provision (credit) for loan losses | (321) | (285) | (122) | 1,502 | |
Charge-offs | |||||
Recoveries | |||||
Ending balance | 2,165 | $ 2,222 | 2,165 | $ 2,222 | |
Individually evaluated for impairment, Recorded investment | |||||
Individually evaluated for impairment, Allowance for loan losses | |||||
Collectively evaluated for impairment, Recorded investment | |||||
Collectively evaluated for impairment, Allowance for loan losses | $ 2,165 | $ 2,165 | $ 2,287 |
Loans - Schedule of Loans by Cr
Loans - Schedule of Loans by Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Risk rated loans | $ 72,795 | $ 80,451 |
Pass [Member] | ||
Risk rated loans | 60,544 | 73,361 |
OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 10,901 | 2,852 |
Substandard [Member] | ||
Risk rated loans | 1,350 | 4,238 |
Doubtful [Member] | ||
Risk rated loans | ||
Loss [Member] | ||
Risk rated loans | ||
Residential Real Estate [Member] | ||
Risk rated loans | 26,564 | 27,334 |
Residential Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 22,820 | 25,326 |
Residential Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 3,375 | 1,633 |
Residential Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | 369 | 375 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Residential Real Estate [Member] | Loss [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | ||
Risk rated loans | 6,142 | 5,829 |
Multi-Family Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 6,142 | 5,829 |
Multi-Family Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Multi-Family Real Estate [Member] | Loss [Member] | ||
Risk rated loans | ||
Commercial Real Estate [Member] | ||
Risk rated loans | 30,637 | 29,264 |
Commercial Real Estate [Member] | Pass [Member] | ||
Risk rated loans | 26,773 | 25,979 |
Commercial Real Estate [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 2,883 | 1,174 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Risk rated loans | 981 | 2,111 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Commercial Real Estate [Member] | Loss [Member] | ||
Risk rated loans | ||
Land and Construction [Member] | ||
Risk rated loans | 3,037 | 5,681 |
Land and Construction [Member] | Pass [Member] | ||
Risk rated loans | 651 | 5,636 |
Land and Construction [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 2,386 | 45 |
Land and Construction [Member] | Substandard [Member] | ||
Risk rated loans | ||
Land and Construction [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Land and Construction [Member] | Loss [Member] | ||
Risk rated loans | ||
Commercial [Member] | ||
Risk rated loans | 5,390 | 10,514 |
Commercial [Member] | Pass [Member] | ||
Risk rated loans | 3,133 | 8,768 |
Commercial [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | 2,257 | |
Commercial [Member] | Substandard [Member] | ||
Risk rated loans | 1,746 | |
Commercial [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Commercial [Member] | Loss [Member] | ||
Risk rated loans | ||
Consumer [Member] | ||
Risk rated loans | 1,025 | 1,829 |
Consumer [Member] | Pass [Member] | ||
Risk rated loans | 1,025 | 1,823 |
Consumer [Member] | OLEM (Other Loans Especially Mentioned) [Member] | ||
Risk rated loans | ||
Consumer [Member] | Substandard [Member] | ||
Risk rated loans | 6 | |
Consumer [Member] | Doubtful [Member] | ||
Risk rated loans | ||
Consumer [Member] | Loss [Member] | ||
Risk rated loans |
Loans - Schedule of Age Analysi
Loans - Schedule of Age Analysis of Past-due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Total Past Due | $ 6 | |
Current Loans | 72,795 | 80,070 |
Nonaccrual Loans | 375 | |
Total Loans | 72,795 | 80,451 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | 6 | |
Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Residential Real Estate [Member] | ||
Total Past Due | ||
Current Loans | 26,564 | 26,959 |
Nonaccrual Loans | 375 | |
Total Loans | 26,564 | 27,334 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Current Loans | ||
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Residential Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Multi-Family Real Estate [Member] | ||
Total Past Due | ||
Current Loans | 6,142 | 5,829 |
Nonaccrual Loans | ||
Total Loans | 6,142 | 5,829 |
Multi-Family Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Multi-Family Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Multi-Family Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Commercial Real Estate [Member] | ||
Total Past Due | ||
Current Loans | 30,637 | 29,264 |
Nonaccrual Loans | ||
Total Loans | 30,637 | 29,264 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Commercial Real Estate [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Land and Construction [Member] | ||
Total Past Due | ||
Current Loans | 3,037 | 5,681 |
Nonaccrual Loans | ||
Total Loans | 3,037 | 5,681 |
Land and Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Land and Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Land and Construction [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Commercial [Member] | ||
Total Past Due | ||
Current Loans | 5,390 | 10,514 |
Nonaccrual Loans | ||
Total Loans | 5,390 | 10,514 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | ||
Commercial [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due | ||
Consumer [Member] | ||
Total Past Due | 6 | |
Current Loans | 1,025 | 1,823 |
Nonaccrual Loans | ||
Total Loans | 1,025 | 1,829 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Total Past Due | ||
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Total Past Due | 6 | |
Consumer [Member] | Financing Receivables, Greater Than 90 Days Past Due [Member] | ||
Total Past Due |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Recorded Investment , With no related allowance recorded | ||
Unpaid Principal Balance, With no related allowance recorded | ||
Recorded Investment , With related allowance recorded | ||
Unpaid Principal Balance, With related allowance recorded | ||
Related Allowance, With related allowance recorded | ||
Total recorded investment | 2,335 | 1,379 |
Total unpaid principal balance | 2,460 | 1,505 |
Total related allowance | 412 | 104 |
Residential Real Estate [Member] | ||
Recorded Investment , With no related allowance recorded | 370 | 375 |
Unpaid Principal Balance, With no related allowance recorded | 495 | 501 |
Recorded Investment , With related allowance recorded | 984 | |
Unpaid Principal Balance, With related allowance recorded | 984 | |
Related Allowance, With related allowance recorded | 336 | |
Total recorded investment | 1,354 | 375 |
Total unpaid principal balance | 1,479 | 501 |
Total related allowance | 336 | |
Commercial Real Estate [Member] | ||
Recorded Investment , With no related allowance recorded | 232 | |
Unpaid Principal Balance, With no related allowance recorded | 232 | |
Recorded Investment , With related allowance recorded | 749 | 1,004 |
Unpaid Principal Balance, With related allowance recorded | 749 | 1,004 |
Related Allowance, With related allowance recorded | 76 | 104 |
Total recorded investment | 981 | 1,004 |
Total unpaid principal balance | 981 | 1,004 |
Total related allowance | $ 76 | $ 104 |
Loans - Schedule of Interest In
Loans - Schedule of Interest Income Recognized and Received on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impaired loans - Average Recorded Investment | $ 1,292 | $ 2,427 | $ 1,274 | $ 3,540 |
Impaired loans - Interest Income Recognized | 26 | 19 | 75 | 99 |
Impaired loans - Interest Income Received | 26 | 38 | 75 | 153 |
Residential Real Estate [Member] | ||||
Impaired loans - Average Recorded Investment | 385 | 598 | 375 | 1,057 |
Impaired loans - Interest Income Recognized | 12 | 3 | 36 | 36 |
Impaired loans - Interest Income Received | 12 | 16 | 36 | 64 |
Commercial Real Estate [Member] | ||||
Impaired loans - Average Recorded Investment | 907 | 1,829 | 899 | 2,483 |
Impaired loans - Interest Income Recognized | 14 | 16 | 39 | 63 |
Impaired loans - Interest Income Received | $ 14 | $ 22 | $ 39 | $ 89 |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of Regulatory Capital Requirements (Details) | Sep. 30, 2017 | Dec. 31, 2016 |
Tier I capital to total average assets | 8.54% | 8.06% |
Tier I capital to risk-weighted assets | 13.12% | 11.50% |
Common equity Tier I capital to risk-weighted assets | 13.12% | 11.50% |
Total capital to risk-weighted assets | 14.42% | 12.79% |
Bank [Member] | ||
Tier I capital to total average assets | 8.54% | |
Tier I capital to risk-weighted assets | 13.12% | |
Common equity Tier I capital to risk-weighted assets | 13.12% | |
Total capital to risk-weighted assets | 14.42% | |
Consent Order Regulatory Requirement [Member] | ||
Tier I capital to total average assets | 8.00% | |
Tier I capital to risk-weighted assets | 0.00% | |
Common equity Tier I capital to risk-weighted assets | 0.00% | |
Total capital to risk-weighted assets | 12.00% |
Loss (Earnings) Per Share - Sch
Loss (Earnings) Per Share - Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of common shares outstanding used to calculate basic and diluted loss per common share | 1,103,447 | 1,097,644 | 1,103,447 | 1,024,704 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2016shares | Sep. 30, 2017USD ($)shares | Sep. 30, 2016USD ($)shares | Dec. 31, 2016USD ($) | May 01, 2016shares | Dec. 27, 2011shares | |
Reverse stock split ratio | 0.10 | 0.10 | ||||
Common stock issued as compensation to directors, shares | shares | 7,559 | |||||
Common stock issued as compensation to directors | $ | $ 32 | |||||
Accrued liability | $ | $ 200 | |||||
Reclassified to other liabilities | shares | 46,296 | |||||
Shares available for grant | shares | 145,861 | |||||
Directors [Member] | ||||||
Common stock issued as compensation to directors | $ | $ 32 | |||||
Chairman [Member] | ||||||
Common stock issued as compensation to directors, shares | shares | 46,926 | |||||
Common stock issued as compensation to directors | $ | ||||||
Accrued liability | $ | $ 200 | |||||
2011 Compensation Plan [Member] | ||||||
Shares authorized for grant | shares | 210,000 | 105,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Cumulative Fair value losses | $ 461 | $ 126 |
Losses recorded in operations during the period | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | ||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Loans receivable, Fair Value | 69,095 | 76,829 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | 1,018 | 375 |
Fair Value [Member] | Fair Value Measurements Nonrecurring [Member] | Residential Real Estate [Member] | ||
Loans receivable, Fair Value | $ 1,018 | $ 375 |
Fair Value Measurements - Sch47
Fair Value Measurements - Schedule of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale securities | $ 16,199 | $ 20,222 |
Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities | 8,882 | 9,752 |
SBA Pool Securities [Member] | ||
Available-for-sale securities | 7,317 | 10,470 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale securities | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | ||
Available-for-sale securities | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Available-for-sale securities | 16,199 | 20,222 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale securities | 16,199 | 20,222 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities | 8,882 | 9,752 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | ||
Available-for-sale securities | 7,317 | 10,470 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale securities | ||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities | ||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | ||
Available-for-sale securities | ||
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale securities | 16,199 | 20,222 |
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities | 8,882 | 9,752 |
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | ||
Available-for-sale securities | $ 7,317 | $ 10,470 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Details Narrative) $ in Thousands | Sep. 30, 2017USD ($) |
Investments, All Other Investments [Abstract] | |
Commitments to extend credit | $ 4,300 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Securities available for sale | $ 16,199 | $ 20,222 | |
Accrued interest receivable | 366 | 380 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Cash and cash equivalents | 18,514 | 17,640 | |
Off-balance sheet financial instruments | |||
Significant Other Observable Inputs (Level 2) [Member] | |||
Securities available for sale | 16,199 | 20,222 | |
Off-balance sheet financial instruments | |||
Significant Unobservable Inputs (Level 3) [Member] | |||
Loans | 69,095 | 76,829 | |
Federal Home Loan Bank stock | 979 | 1,113 | |
Accrued interest receivable | 366 | 380 | |
Deposit liabilities | 77,935 | 86,364 | |
Federal Home Loan Bank advances | 20,458 | 23,500 | |
Junior subordinated debenture | |||
Off-balance sheet financial instruments | |||
Carrying Amount [Member] | |||
Cash and cash equivalents | 18,514 | 17,640 | |
Securities available for sale | 16,199 | 20,222 | |
Loans | 69,194 | 76,999 | |
Federal Home Loan Bank stock | 979 | 1,113 | |
Accrued interest receivable | 366 | 380 | |
Deposit liabilities | 77,374 | 86,009 | |
Federal Home Loan Bank advances | 20,500 | 23,500 | |
Junior subordinated debenture | 5,155 | 5,155 | |
Off-balance sheet financial instruments | |||
Estimate of Fair Value Measurement [Member] | |||
Cash and cash equivalents | 18,514 | 17,640 | |
Securities available for sale | 16,199 | 20,222 | |
Loans | 69,095 | 76,829 | |
Federal Home Loan Bank stock | 979 | 1,113 | |
Accrued interest receivable | 366 | 380 | |
Deposit liabilities | 77,935 | 86,364 | |
Federal Home Loan Bank advances | 20,458 | 23,500 | |
Junior subordinated debenture | [1] | ||
Off-balance sheet financial instruments | |||
[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 Nar
Regulatory Matters (Details Narrative) | Sep. 30, 2017 | Dec. 31, 2016 |
Minimum requirement of capital conservation buffer, ratio | 0.625% | 0.625% |
Leverage ratio | 8.54% | |
Risk-based capital ratio | 14.42% | |
Beginning 90 Days from the Issuance [Member] | ||
Leverage ratio | 8.00% | |
Risk-based capital ratio | 12.00% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Capital Amounts, Ratios and Regulatory Thresholds (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Total Capital to Risk-Weighted Assets | $ 10,472 | $ 10,662 |
Total Capital to Risk-Weighted Assets ratio | 14.42% | 12.79% |
Tier I Capital to Risk-Weighted Assets | $ 9,527 | $ 9,498 |
Tier I Capital to Risk-Weighted Assets ratio | 13.12% | 11.50% |
Common equity Tier 1 capital to Risk-Weighted Assets | $ 9,527 | $ 9,498 |
Common equity Tier 1 capital to Risk-Weighted Assets, ratio | 13.12% | 11.50% |
Tier I Capital to Total Assets | $ 9,527 | $ 9,498 |
Tier I Capital to Total Assets ratio | 8.54% | 8.06% |
Minimum amount of capital for adequacy purposes | $ 5,809 | $ 6,609 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 4,357 | $ 4,957 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 6.00% |
Common equity Tier 1 capital to Risk-Weighted Assets for adequacy purposes | $ 3,268 | $ 3,718 |
Common equity Tier 1 capital to Risk-Weighted Assets for adequacy purposes, ratio | 4.50% | 4.50% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 4,463 | $ 4,714 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Capital required to be well-capitalized | $ 7,262 | $ 8,261 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 5,809 | $ 6,609 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 8.00% | 8.00% |
Common equity Tier I capital to Risk-Weighted Assets to be well-capitalized | $ 4,720 | $ 5,370 |
Common equity Tier I capital to Risk-Weighted Assets to be well-capitalized, ratio | 6.50% | 6.50% |
Minimum Capital required to be well-capitalized | $ 5,579 | $ 5,893 |
Minimum Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Minimum Capital required under consent order | $ 8,714 | $ 9,913 |
Minimum Capital required under consent order, ratio | 12.00% | 12.00% |
Minimum Tier 1 Capital required under consent order | $ 8,926 | $ 9,428 |
Minimum Tier 1 Capital required under consent order, ratio | 8.00% | 8.00% |
Junior Subordinated Debenture (
Junior Subordinated Debenture (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Disclosure [Abstract] | |
Junior subordinated debenture principal amount | $ 5,155 |
Debenture term | 30 years |
Debt instrument interest rate stated | 6.40% |
Debt interest rate terms | The interest rate was fixed at 6.4% for the first five years, and thereafter, the coupon rate floats quarterly at the three-month LIBOR rate plus 2.45% (3.78% at September 30, 2017). |
Variable rate basis description | three-month LIBOR rate plus 2.45% |
Basis spread on variable rate | 2.45% |
Effective interest rate | 0.00% |
Deferred interest payments on debenture | $ 1,314 |
Reverse Common Stock Split (Det
Reverse Common Stock Split (Details Narrative) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||
Reverse stock split ratio | 0.10 | 0.10 |
Loan Loss Recovery (Details Nar
Loan Loss Recovery (Details Narrative) - USD ($) $ in Thousands | Jan. 06, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
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 | $ 4,200 | $ 3,903 | $ 3,895 | $ 3,915 | $ 4,169 | $ 4,240 | $ 2,295 |
Reclassification (Details Narra
Reclassification (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Common stock issued as compensation to chairman, shares | 7,559 | |||
Accrued liability - stock issued to chairman | $ 200 | |||
Chairman [Member] | ||||
Common stock issued as compensation to chairman, shares | 46,926 | |||
Share-based compensation expense | $ 200 | |||
Accrued liability - stock issued to chairman | $ 200 |
Brokered Deposits (Details Narr
Brokered Deposits (Details Narrative) $ in Thousands | Sep. 30, 2017USD ($) |
Brokered Deposits | |
Brokered deposits | $ 25,100 |
Bank Secrecy Act (_BSA_) Look57
Bank Secrecy Act (“BSA”) Lookback Review (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Estimated cost under Bank Secrecy Act | $ 210 |
Minimum [Member] | |
Estimated cost under Bank Secrecy Act | 250 |
Maximum [Member] | |
Estimated cost under Bank Secrecy Act | $ 300 |