Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 14, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WCF Bancorp, Inc. | |
Entity Central Index Key | 0001667944 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Trading Symbol | WCFB | |
Entity Common Stock, Shares Outstanding | 2,561,542 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 3,432,865 | $ 3,587,631 |
Federal funds sold | 732,000 | 11,175,000 |
Cash and cash equivalents | 4,164,865 | 14,762,631 |
Time deposits in other financial institutions | 4,536,380 | 4,540,687 |
Securities available-for-sale, at fair value | 43,098,700 | 43,622,041 |
Loans receivable | 72,016,626 | 64,314,968 |
Allowance for loan losses | (528,958) | (508,920) |
Loans receivable, net | 71,487,668 | 63,806,048 |
Federal Home Loan Bank (FHLB) stock, at cost | 736,800 | 1,110,000 |
Bankers' Bank stock, at cost | 147,500 | 147,500 |
Office property and equipment, net | 3,532,392 | 3,585,740 |
Deferred taxes on income | 650,974 | 768,831 |
Income taxes receivable | 28,092 | 34,739 |
Accrued interest receivable | 512,012 | 424,909 |
Goodwill | 55,148 | 55,148 |
Bank-owned life insurance | 3,252,912 | 3,231,032 |
Prepaid expenses and other assets | 1,217,693 | 1,275,166 |
Total assets | 133,421,136 | 137,364,472 |
Liabilities and Stockholders' Equity | ||
Deposits | 89,117,264 | 83,577,825 |
FHLB advances | 14,500,000 | 24,000,000 |
Advance payments by borrowers for taxes and insurance | 367,109 | 556,494 |
Accrued interest payable | 162,952 | 18,221 |
Accrued expenses and other liabilities | 1,244,607 | 1,441,057 |
Total liabilities | 105,391,932 | 109,593,597 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; issued none | 0 | 0 |
Common stock, $0.01 par value. Authorized 30,000,000 shares; 2,561,542 issued and outstanding at March 31, 2019 and December 31, 2018 | 25,615 | 25,615 |
Additional paid-in capital | 14,223,738 | 14,223,738 |
Retained earnings, substantially restricted | 15,429,913 | 15,565,683 |
Unearned ESOP shares | (1,191,116) | (1,204,808) |
Accumulated other comprehensive (loss) | (458,946) | (839,353) |
Total stockholders' equity | 28,029,204 | 27,770,875 |
Total liabilities and stockholders' equity | $ 133,421,136 | $ 137,364,472 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 2,561,542 | 2,561,542 |
Common stock, shares outstanding (in shares) | 2,561,542 | 2,561,542 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Loans receivable | $ 753,735 | $ 739,664 |
Investment securities - taxable | 219,707 | 160,729 |
Investment securities - tax exempt | 53,424 | 62,793 |
Other interest earning assets | 57,909 | 34,042 |
Total interest income | 1,084,775 | 997,228 |
Interest expense: | ||
Deposits | 222,695 | 164,381 |
FHLB advances | 103,056 | 77,425 |
Overnight borrowings | 2,380 | 0 |
Total interest expense | 328,131 | 241,806 |
Net interest income | 756,644 | 755,422 |
Provision for losses on loans | 30,000 | 19,500 |
Net interest income after provision for losses on loans | 726,644 | 735,922 |
Noninterest income: | ||
Fees and service charges | 104,642 | 96,132 |
Gain (loss) on sale of securities available-for-sale, net | 10,509 | (14,465) |
Increase in cash value - bank-owned life insurance | 21,880 | 23,309 |
Gain on sale of land | 0 | 435,818 |
Other income (expense) | 217 | (9,923) |
Total noninterest income | 137,248 | 530,871 |
Noninterest expense: | ||
Compensation, payroll taxes, and employee benefits | 351,475 | 368,902 |
Advertising | 11,762 | 17,776 |
Office property and equipment | 91,772 | 107,903 |
Federal insurance premiums | 7,704 | 8,111 |
Data processing services | 126,449 | 123,327 |
Charitable contributions | 1,610 | 1,800 |
Other real estate expenses, net | 7,433 | 4,923 |
Dues and subscriptions | 7,882 | 10,797 |
Accounting, regulatory and professional fees | 177,652 | 139,137 |
Debit card expenses | 0 | 1,123 |
Other expenses | 95,705 | 92,468 |
Total noninterest expense | 879,444 | 876,267 |
(Loss) earnings before taxes on income | (15,552) | 390,526 |
Tax (benefit) expense | (329) | 106,002 |
Net (loss) income | $ (15,223) | $ 284,524 |
Basic earnings (loss) per common share (in usd per share) | $ (0.01) | $ 0.12 |
Diluted earnings (loss) per common share (in usd per share) | $ (0.01) | $ 0.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (15,223) | $ 284,524 |
Other comprehensive income (loss): | ||
Net change in unrealized gains (losses) on securities | 531,352 | (734,338) |
Reclassification adjustment for net losses (gains) realized in net income | (10,509) | 14,465 |
Income tax (expense) benefit | (140,436) | 152,273 |
Other comprehensive income (loss) | 380,407 | (567,600) |
Comprehensive income (loss) | $ 365,184 | $ (283,076) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Common stock | Additional paid-in capital | Retained earnings | Unearned ESOP shares | Accumulated other comprehensive income (loss) |
Balance at Dec. 31, 2017 | $ 28,429,514 | $ 25,615 | $ 14,215,017 | $ 15,758,825 | $ (1,259,576) | $ (310,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 284,524 | 284,524 | ||||
Other comprehensive income (loss) | (567,600) | (567,600) | ||||
Reclass of stranded tax effects of rate change | 61,135 | (61,135) | ||||
Release of ESOP Shares | 13,692 | 13,692 | ||||
Dividends paid on common stock ($0.05 per common share) | (120,171) | (120,171) | ||||
Balance at Mar. 31, 2018 | 28,039,959 | 25,615 | 14,215,017 | 15,984,313 | (1,245,884) | (939,102) |
Balance at Dec. 31, 2018 | 27,770,875 | 25,615 | 14,223,738 | 15,565,683 | (1,204,808) | (839,353) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (15,223) | (15,223) | ||||
Other comprehensive income (loss) | 380,407 | 380,407 | ||||
Reclass of stranded tax effects of rate change | (61,135) | |||||
Release of ESOP Shares | 13,692 | 13,692 | ||||
Dividends paid on common stock ($0.05 per common share) | (120,547) | (120,547) | ||||
Balance at Mar. 31, 2019 | $ 28,029,204 | $ 25,615 | $ 14,223,738 | $ 15,429,913 | $ (1,191,116) | $ (458,946) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (15,223) | $ 284,524 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 148,079 | 186,139 |
Provision for losses on loans | 30,000 | 19,500 |
ESOP expenses | 13,692 | 13,692 |
Deferred taxes on income | (22,579) | 65,769 |
(Gain) loss on sales of securities | (10,509) | 14,465 |
Gain on sales of one-to-four family residential loans | (1,725) | 0 |
Proceeds from sales of one-to-four family residential loans | 5,532,737 | 0 |
Originations of one-to-four family residential loans | (5,531,012) | 0 |
Loss on sale of other real estate owned | 0 | 9,417 |
Gain on sale of land | 0 | (435,818) |
Increase in cash value of bank-owned life insurance | (21,880) | (23,309) |
Change in: | ||
Accrued interest receivable | (87,103) | 25,395 |
Prepaid expenses and other assets | 57,473 | 7,062 |
Advance payments by borrowers for taxes and insurance | (189,385) | (246,458) |
Accrued interest payable | 144,731 | 96,874 |
Accrued expenses and other liabilities | (196,450) | (96,366) |
Income tax receivable | 6,647 | 40,320 |
Net cash used in operating activities | (142,507) | (38,794) |
Cash flows from investing activities: | ||
Proceeds from maturity of time deposits in other financial institutions | 984,307 | 1,719,298 |
Purchase of time deposits in other financial institutions | (980,000) | (1,719,000) |
Proceeds from calls and maturities of investment securities available-for-sale | 260,000 | 1,455,555 |
Proceeds from sale of investment securities available-for-sale | 1,700,899 | 2,121,241 |
Purchase of investment securities available-for-sale | (998,350) | (7,372,195) |
Purchase of loans | (5,396,137) | 0 |
Net change in loans receivable | (2,315,483) | 1,585,210 |
Net change in FHLB stock | 373,200 | |
Net change in FHLB stock | (6,600) | |
Proceeds from sale of land | 0 | 685,818 |
Purchase of office property and equipment | (2,587) | 0 |
Net cash used in investing activities | (6,374,151) | (1,530,673) |
Cash flows from financing activities: | ||
Net change in deposits | 5,539,439 | 11,751 |
Net change in FHLB advances | (9,500,000) | 0 |
Dividends paid | (120,547) | (120,171) |
Net cash used in financing activities | (4,081,108) | (108,420) |
Net decrease in cash and cash equivalents | (10,597,766) | (1,677,887) |
Cash and cash equivalents at beginning of year | 14,762,631 | 5,982,400 |
Cash and cash equivalents at end of quarter | 4,164,865 | 4,304,513 |
Cash paid during the year for: | ||
Interest | 183,400 | 144,932 |
Taxes on income | 0 | 0 |
Noncash investing activities: | ||
Transfers to other real estate owned from loans | 0 | 104,929 |
Loans to finance the sale of other real estate owned | $ 0 | $ 26,267 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (the Company), and its wholly owned subsidiaries, WCF Financial Bank (the Bank) and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with Securities and Exchange Commission (SEC) rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2018 . The consolidated balance sheet of the Company as of December 31, 2018 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain reclassifications, none of each were material, have been made to conform prior year financial statements to the March 31, 2019 presentation. These reclassifications did not change previously reported net income or stockholders' equity. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from the estimates. For further information with respect to significant accounting policies followed by the Company in preparation of the financial statements, refer to the Company’s annual report for the year ended December 31, 2018 . As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of March 31, 2019 , there is no significant difference in the comparability of the financial statements as a result of this extended transition period. Prior to July 1, 2018, the Bank was a federally chartered bank regulated by The Office of the Comptroller of Currency. The Bank converted its charter and is now an Iowa state chartered commercial bank and a member of the Federal Home Loan Bank (FHLB) system. The Bank maintains insurance on deposits accounts with the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (FDIC). Organization and Business WCF Bancorp, Inc. (the Company) is an Iowa-chartered corporation organized in 2016 to be the successor to Webster City Federal Bancorp, a federal corporation (Old Bancorp) upon completion of the second-step conversion of WCF Financial M.H.C. from the mutual holding company to the stock holding company form of organization. WCF Financial M.H.C. (the MHC) was the former mutual holding company for Old Bancorp prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of the MHC and Old Bancorp ceased to exist. The second-step conversion was completed on July 13, 2016. The Company's principal business is the ownership and operation of the Bank. The Bank is a community bank and its deposits are insured by the FDIC. The primary business of the Bank is accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in real estate loans secured by one-to-four family residences. The Company and Bank are in the process of expanding its Commercial Real Estate offerings by adding commercial banking staff to support expansion into commercial banking. We also invest in investment securities. Our primary lending area is broader than our primary deposit market area and includes north central and northeastern Iowa. Our revenues are derived principally from interest on loans and securities, and from loan origination and servicing fees. Our primary sources of funds are deposits, principal and interest payments on loans and securities and advances from the FHLB. As a state savings bank, WCF Financial Bank is subject to comprehensive regulation and examination by the Federal Deposit Insurance Company (the FDIC) and the Iowa Division of Banking. As a savings and loan holding company, the Company is subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System (the Federal Reserve Board). The primary business of WCF Financial Service Corp (the Service Corp), a wholly-owned subsidiary of the Bank, was the sale of credit life and disability insurance products that were previously disallowed by savings and loan regulations. Currently the Service Corp is inactive. Investment Securities Investment securities are classified based on the Company’s intended holding period. Securities that may be sold prior to maturity to meet liquidity needs, to respond to market changes, or to adjust the Company’s asset-liability position are classified as available-for-sale. Currently, all securities are classified as available-for-sale. Securities available-for-sale are carried at fair value, with the aggregate unrealized gains or losses, net of the effect of taxes on income, reported as accumulated other comprehensive income or loss. Other-than-temporary impairment is recorded in net income. The Company’s net income reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value), if any, on debt securities that the Company intends to sell, or would more likely than not be required to sell, before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell, and believes that it will not more likely than not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in net income, while the rest of the fair value loss is recognized in other comprehensive income. The credit loss component recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using the Company’s cash flow projections using its base assumptions. A decline in the fair value of any available-for-sale security below cost and that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount by fair value for the credit portion of the loss. The impairment is charged to net income and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability to hold and lack of intent to sell the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, and the general market conditions. Net realized gains or losses are shown in the consolidated statements of income in the noninterest income line using the specific identification method. There were $10,509 in net realized gains and $14,465 in net realized losses for the three months ended March 31, 2019 and 2018, respectively. Loans Receivable, Net Loans receivable are stated at the amount of unpaid principal, reduced by the allowance for loan losses, deferred loan fees and discounts on loans purchased. Loans receivable are charged against the allowance when management believes collectability of principal is unlikely. Interest on loans receivable is accrued and credited to operations based primarily on the principal amount outstanding. Certain loan balances include unearned discounts, which are recorded as income over the term of the loan. Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms. Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year. Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Accrued interest receivable on loans receivable that become more than 90 days in arrears is charged to an allowance that is established by a charge to interest income. Interest income is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is reasonably assured, in which case the loan is returned to accrual status. Under the Company’s credit policies, commercial loans are considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate except, where more practical, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. Allowance for Loan Losses The allowance for loan losses is based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is appropriate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, the composition of the loan portfolio, value of underlying collateral, and management’s estimate of probable credit losses. Taxes on Income Deferred income taxes are provided under the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. Regulatory Environment The Company is subject to regulations of certain state and federal agencies, including periodic examinations by those regulatory agencies. The Company and the Bank are also subject to minimum regulatory capital requirements. At March 31, 2019 and December 31, 2018 , capital levels exceeded minimum capital requirements (see Note 6). Investment in Affiliate The Company records its investment in an affiliate, New Castle Players, LLC, in which it has a 27.17% interest, using the equity method of accounting. The affiliate holds an investment in a local hotel in Webster City, Iowa. The Company records the value of its investment at period-end based on the affiliate’s most current available financial statements. The investment in affiliate is analyzed annually. If impairment is determined to be other-than-temporary, the carrying amount is written down to fair value. The investment is included as a component of prepaid expenses and other assets on the consolidated balance sheets, while the equity income earned is included as a component of other noninterest income on the consolidated statements of income. Summary unaudited financial information of the affiliate as of and for the three months ended March 31, 2019 and 2018 is presented below. As of and For the Three Months Ended 2019 2018 Current assets $ 153,125 $ 136,150 Long-term assets 1,631,944 1,669,687 Current liabilities 184,389 86,294 Total equity 1,600,680 1,719,544 Total revenue 996,735 924,323 Net income 159,957 140,603 Earnings per Common Share The calculation of earnings per common share and diluted earnings per common share for the three months ended March 31, 2019 and 2018 is presented below. Three Months Ended 2019 2018 Net (loss) income $ (15,223 ) $ 284,524 Weighted average common shares outstanding and diluted common shares outstanding 2,417,143 2,410,295 Basic earnings (losses) per common share $ (0.01 ) $ 0.12 Diluted earnings (losses) per common share $ (0.01 ) $ 0.12 Unearned Employee Stock Ownership Plan (ESOP) shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. ESOP shares that have been committed to be released are considered outstanding and included for the purposes of computing basic and diluted earnings per share. Employee Stock Ownership Plan The Company has an employee stock ownership plan (ESOP) covering substantially all employees. The cost of shares issued to the ESOP but not yet allocated to the participants is presented in the consolidated balance sheet as a reduction of stockholders' equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts and dividends paid for unallocated shares. The shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares will be released annually from the suspense account and the released shares will be allocated to the participants on the basis of each participant’s compensation for the year of allocation. As shares are released from collateral, the Company recognizes compensation expense equal to the average market price of the shares during the period and the shares will be outstanding for earnings-per-share purposes. The shares not released are reported as unearned ESOP shares in the stockholders’ equity section on the consolidated balance sheets. At March 31, 2019 there were 22,249 allocated shares and 148,890 unallocated shares. The fair value of unallocated ESOP shares at March 31, 2019 was $1,228,000 . Subsequent Events The Company has evaluated subsequent events through May 14, 2019, which is the date the consolidated financial statements were issued. There are no subsequent events requiring recognition or disclosure in the consolidated financial statements by the Company. Current Accounting Developments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. This update is effective for interim and annual periods beginning after December 15, 2018. The Company adopted the guidance effective January 1, 2019, using the modified retrospective method. The Company's revenue is primarily composed of interest income on financial instruments, including investment securities and loans, which are excluded from the scope of this update. Also excluded from the scope of the update is revenue from bank-owned life insurance, loan fees and letter of credit fees. Deposit account related fees, including service charges, debit card usage fees, overdraft fees and wire transfer fees are within the scope of the guidance; however, revenue recognition practices did not change under the guidance, as deposit agreements are considered day-to-day contracts. Deposit account transaction related fees will continue to be recognized as the services are performed. Other noninterest income sources of revenue are considered immaterial. Implementation of the guidance did not change current business practices. Implementation of the guidance did not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by updating certain aspects or recognition, measurement, presentation and disclosure of financial instruments. Among other changes, the update requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entities' other deferred tax assets. This update was effective for the Company interim and annual periods beginning after December 15, 2018. The Company adopted the guidance effective January 1, 2019, using the modified retrospective method. Upon adoption, the fair value of the Company's loan portfolio is now presented using an exit price method. Also, the Company is no longer required to disclose the methodologies used for estimating fair value of financial assets and liabilities that are not measured at fair value on a recurring or nonrecurring basis. The remaining requirements of this update did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The guidance in the update supersedes the requirements in ASC Topic 840, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for leases with terms more than 12 months. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2018. The Company currently has no leases. In July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements, which amends ASC 842, Leases. This update provides for an adoption option that will not require earlier periods to be restated at the adoption date. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit L osses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is in contrast to existing guidance whereby credit losses generally are not recognized until they are incurred. This update will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendment in this update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, enactment of Public Law 115-97, commonly know as the Tax Cut and Jobs Act (Tax Act), which reduced the federal corporate income tax rate and became effective in 2018. For public companies, the update was effective for annual periods beginning after December 15, 2018, with early adoption permitted. The amendment can be adopted at the beginning of the period or on a retrospective basis. The Company adopted the amendment effective January 1, 2018, using the beginning of period method. The reclassified amount was $61,135 . In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 15, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis, and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company's consolidated financial statements. |
Securities Available-for-Sale
Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Securities Available-for-Sale Securities available-for-sale at March 31, 2019 and December 31, 2018 were as follows: Description Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2019: U.S. agency securities $ 3,740,704 $ 10,227 $ 12,816 $ 3,738,115 Mortgage-backed securities* 25,146,794 6,741 600,019 24,553,516 Municipal bonds 13,805,897 70,014 81,125 13,794,786 Corporate bonds 998,364 13,919 — 1,012,283 $ 43,691,759 $ 100,901 $ 693,960 $ 43,098,700 December 31, 2018: U.S. agency securities $ 3,740,431 $ 8,531 $ 34,913 $ 3,714,049 Mortgage-backed securities* 26,511,033 3,911 866,060 25,648,884 Municipal bonds 14,484,479 29,095 254,466 14,259,108 $ 44,735,943 $ 41,537 $ 1,155,439 $ 43,622,041 *All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans. The amortized cost and estimated fair value of securities available-for-sale at March 31, 2019 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2019 Amortized cost Fair value Due in one year or less $ 2,926,752 $ 2,936,795 Due after one year through five years 1,981,826 1,996,468 Due after five years, but less than ten years 7,299,136 7,291,215 Due after ten years 5,338,887 5,308,423 17,546,601 17,532,901 Mortgage-backed securities 25,146,794 24,553,516 Corporate bonds 998,364 1,012,283 $ 43,691,759 $ 43,098,700 The details of the sales of investment securities for the three months ended March 31, 2019 and 2018 are summarized in the following table. Three Months Ended 2019 2018 Proceeds from sales $ 1,700,899 $ 2,121,241 Gross gains on sales 11,073 — Gross losses on sales 564 14,465 At March 31, 2019 and December 31, 2018 , accrued interest receivable for securities available-for-sale totaled $331,443 and $231,087 , respectively. The following tables show the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018 . March 31, 2019 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ — $ — $ 1,227,888 $ 12,816 $ 1,227,888 $ 12,816 Mortgage-backed securities 1,719,658 14,131 20,661,492 585,888 22,381,150 600,019 Municipal bonds — — 8,017,017 81,125 8,017,017 81,125 Total $ 1,719,658 $ 14,131 $ 29,906,397 $ 679,829 $ 31,626,055 $ 693,960 December 31, 2018 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ — $ — $ 1,205,518 $ 34,913 $ 1,205,518 $ 34,913 Mortgage-backed securities 3,393,192 36,192 20,903,713 829,868 24,296,905 866,060 Municipal bonds 4,400,121 102,524 6,694,327 151,942 11,094,448 254,466 Total $ 7,793,313 $ 138,716 $ 28,803,558 $ 1,016,723 $ 36,596,871 $ 1,155,439 The Company’s assessment of other‑than‑temporary impairment is based on its reasonable judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets, and the current and anticipated market conditions. The Company does not intend to sell its available-for-sale investment securities and it is not likely that the Company will be required to sell them before the recovery of its cost. Due to the issuers’ continued satisfactions of their obligations under the securities in accordance with their contractual terms and the expectation that they will continue to do so, and management’s intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in fair value, the Company believes that the investment securities identified in the tables above were temporarily impaired as of March 31, 2019 and December 31, 2018 . |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable At March 31, 2019 and December 31, 2018 , loans receivable consisted of the following segments: March 31, 2019 December 31, 2018 Loans: One-to-four family residential $ 56,541,012 $ 52,335,005 Non-owner occupied one-to-four family residential 3,211,965 3,013,417 Commercial real estate 5,367,251 2,162,851 Consumer 6,911,695 6,801,419 Total loans receivable 72,031,923 64,312,692 Premiums on loans purchased 16,284 30,318 Deferred loan costs (fees) (31,581 ) (28,042 ) Allowance for loan losses (528,958 ) (508,920 ) $ 71,487,668 $ 63,806,048 Accrued interest receivable on loans receivable was $180,569 and $193,822 at March 31, 2019 and December 31, 2018 , respectively. The loan portfolio included $40.3 million of fixed rate loans as of March 31, 2019 and $39.1 million as of December 31, 2018 . The loan portfolio also included $31.7 million and $25.2 million of variable rate loans as of March 31, 2019 and December 31, 2018 , respectively. The Company originates residential, commercial real estate loans and other consumer loans, primarily in its Hamilton County, and Buchanan County, Iowa market areas and their adjacent counties. A substantial portion of its borrowers’ ability to repay their loans is dependent upon economic conditions in the Company’s market area. Allowance for Loan Losses The following tables present the balance in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2019 and December 31, 2018 . March 31, 2019 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 367,973 13,245 53,218 94,522 528,958 Total $ 367,973 $ 13,245 $ 53,218 $ 94,522 $ 528,958 Loans receivable: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 56,541,012 3,211,965 5,367,251 6,911,695 72,031,923 Total $ 56,541,012 $ 3,211,965 $ 5,367,251 $ 6,911,695 $ 72,031,923 December 31, 2018 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 407,086 13,252 19,110 69,472 508,920 Total $ 407,086 $ 13,252 $ 19,110 $ 69,472 $ 508,920 Loans receivable: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 52,335,005 3,013,417 2,162,851 6,801,419 64,312,692 Total $ 52,335,005 $ 3,013,417 $ 2,162,851 $ 6,801,419 $ 64,312,692 Activity in the allowance for loan losses by segment for the three months ended March 31, 2019 and 2018 is summarized in the following tables: Three months ended March 31, 2019 Beginning Balance Charge-offs Recoveries Provisions * Ending Balance Loans: One-to-four family residential $ 407,086 $ — $ — $ (39,113 ) $ 367,973 Non-owner occupied one-to-four family residential 13,252 — — (7 ) 13,245 Commercial real estate 19,110 — — 34,108 53,218 Consumer 69,472 9,962 — 35,012 94,522 Total $ 508,920 $ 9,962 $ — $ 30,000 $ 528,958 Three months ended March 31, 2018 Beginning Balance Charge-offs Recoveries Provisions * Ending Balance Loans: One-to-four family residential $ 393,341 $ — $ — $ 8,969 $ 402,310 Non-owner occupied one-to-four family residential 25,893 — — 1,000 26,893 Commercial real estate 33,204 — — (949 ) 32,255 Consumer 85,881 792 — 10,480 95,569 Total $ 538,319 $ 792 $ — $ 19,500 $ 557,027 * The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. (a) Loan Portfolio Segment Risk Characteristics One-to-four family residential : The Company generally retains most residential mortgage loans that are originated for its own portfolio. The market value of real estate securing residential real estate loans can fluctuate as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in the Company’s market could increase credit risk associated with its loan portfolio. Additionally, real estate lending typically involves large loan principal amounts and the repayment of the loans generally is dependent, in large part, on the borrower’s continuing financial stability, and is therefore more likely to be affected by adverse personal circumstances. Non-owner occupied one-to-four family residential: The Company originates fixed-rate and adjustable-rate loans secured by non-owner occupied one-to-four family properties. These loans may have a term of up to 25 years . Generally the Bank will lend up to 75% of the property’s appraised value. Appraised values are determined by an outside independent appraiser. In deciding to originate a loan secured by a non-owner occupied one-to-four family residential property, management reviews the creditworthiness of the borrower and the expected cash flows from the property securing the loan, the cash flow requirements of the borrower and the value of the property securing the loan. This segment is generally secured by one-to-four family properties. Commercial real estate: On a very limited basis, the Company originates fixed-rate and adjustable-rate commercial real estate and land loans. These loans may have a term of up to 20 years . Generally the Bank will lend up to 75% of the property’s appraised value. Appraised values are determined by an outside independent appraiser. This segment is generally secured by retail, industrial, service or other commercial properties and loans secured by raw land, including timber. Consumer : Consumer loans typically have shorter terms, lower balances, higher yields, and higher rates of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. This segment consists mainly of loans collateralized by automobiles. The collateral securing these loans, may depreciate over time, may be difficult to recover and may fluctuate in value based on condition. (b) Charge‑off Policy The Company requires a loan to be at least partially charged off as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors. (c) Troubled Debt Restructurings (TDR) All loans deemed troubled debt restructurings, or “TDR”, are considered impaired, and are evaluated for collateral sufficiency. A loan is considered a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Bank would not otherwise consider. There were no new troubled debt restructurings in the first three months of 2019 and 2018. (d) Loans Measured Individually for Impairment Loans that are deemed to be impaired are reserved for with the necessary allocation. All loans deemed troubled debt restructurings are considered impaired. Generally loans for 1-4 family residential and consumer are collectively evaluated for impairment. (e) Loans Measured Collectively for Impairment All loans not evaluated individually for impairment are grouped together by type and further segmented by risk classification. The Company’s historical loss experiences for each portfolio segment are calculated using a 12 quarter rolling average loss rate for estimating losses adjusted for qualitative factors. The qualitative factors consider economic and business conditions, changes in nature and volume of the loan portfolio, concentrations, collateral values, level and trends in delinquencies, external factors, lending policies, experience of lending staff, and monitoring of credit quality. The following tables set forth the composition of each class of the Company’s loans by internally assigned credit quality indicators. Pass Special mention/watch Substandard Doubtful Total March 31, 2019: Loans One-to-four family residential $ 55,049,481 $ 1,041,190 $ 450,341 $ — $ 56,541,012 Non-owner occupied one-to-four family residential 3,069,186 142,779 — — 3,211,965 Commercial real estate 5,367,251 — — — 5,367,251 Consumer 6,799,104 106,904 5,687 — 6,911,695 Total $ 70,285,022 $ 1,290,873 $ 456,028 $ — $ 72,031,923 Pass Special mention/watch Substandard Doubtful Total December 31, 2018: Loans One-to-four family residential $ 50,712,926 $ 1,041,019 $ 581,060 $ — $ 52,335,005 Non-owner occupied one-to-four family residential 2,876,981 136,436 — — 3,013,417 Commercial real estate 2,162,851 — — — 2,162,851 Consumer 6,301,242 436,522 63,655 — 6,801,419 Total $ 62,054,000 $ 1,613,977 $ 644,715 $ — $ 64,312,692 Special Mention/Watch – Loans classified as special mention/watch are assets that do not warrant adverse classification but possess credit deficiencies or potential weakness deserving close attention. Substandard – Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable, and improbable. The Company had no impaired loans as of March 31, 2019 and December 31, 2018 . No interest income was recorded on impaired loans during 2019 or 2018 . (f) Nonaccrual and Delinquent Loans Loans are placed on nonaccrual status when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 or more (unless the loan is well secured with marketable collateral) and in the process of collection. A nonaccrual asset may be restored to an accrual status when all past-due principal and interest has been paid and the borrower has demonstrated satisfactory payment performance (excluding renewals and modifications that involve the capitalizing of interest). Delinquency status of a loan is determined by the number of days that have elapsed past the loan’s payment due date, using the following classification groupings: 30-59 days, 60-89 days, and 90 days or more. Loans shown in the 30‑59 day’s and 60‑89 day’s columns in the table below reflect contractual delinquency status only, and include loans considered nonperforming due to classification as a TDR or being placed on nonaccrual. The following tables set forth the composition of the Company’s past-due loans at March 31, 2019 and December 31, 2018 . 30-59 days 60-89 days 90 days Total Current Total loans receivable Recorded investment > 90 days and accruing March 31, 2019: Loans One-to-four family residential $ 558,307 $ 155,244 $ 450,341 $ 1,163,892 $ 55,377,120 $ 56,541,012 $ — Non-owner occupied one-to-four family residential 6,865 — — 6,865 3,205,100 3,211,965 — Commercial real estate — — — — 5,367,251 5,367,251 — Consumer 34,810 19,762 5,687 60,259 6,851,436 6,911,695 — Total $ 599,982 $ 175,006 $ 456,028 $ 1,231,016 $ 70,800,907 $ 72,031,923 $ — 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans receivable Recorded investment > 90 days and accruing December 31, 2018: Loans One-to-four family residential $ 706,658 $ 283,116 $ 369,058 $ 1,358,832 $ 50,976,173 $ 52,335,005 $ — Non-owner occupied one-to-four family residential — — — — 3,013,417 3,013,417 — Commercial real estate — — — — 2,162,851 2,162,851 — Consumer 229,899 23,400 63,655 316,954 6,484,465 6,801,419 — Total $ 936,557 $ 306,516 $ 432,713 $ 1,675,786 $ 62,636,906 $ 64,312,692 $ — The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of March 31, 2019 and December 31, 2018 . March 31, 2019 December 31, 2018 Loans One-to-four family residential $ 551,940 $ 581,060 Non-owner occupied one-to-four family residential — — Commercial real estate — — Consumer 5,687 63,655 Total $ 557,627 $ 644,715 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits At March 31, 2019 and December 31, 2018 , deposits are summarized as follows: March 31, 2019 December 31, 2018 Statement savings $ 13,797,178 $ 13,461,826 Money market plus 11,213,186 11,153,339 NOW 18,437,407 18,214,876 Certificates of deposit 45,669,493 40,747,784 $ 89,117,264 $ 83,577,825 Included in the NOW accounts were $5.7 million and $4.6 million of non-interest bearing deposits as of March 31, 2019 and December 31, 2018 , respectively. |
Tax benefit and expense
Tax benefit and expense | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax benefit and expense | Tax benefit and expense Taxes on income comprise the following: March 31, 2019 Federal State Total Current $ 26,654 $ (4,404 ) $ 22,250 Deferred (25,094 ) 2,515 (22,579 ) $ 1,560 $ (1,889 ) $ (329 ) March 31, 2018 Federal State Total Current $ 25,933 $ 14,300 $ 40,233 Deferred 65,769 — 65,769 $ 91,702 $ 14,300 $ 106,002 Taxes on income differ from the amounts computed by applying the federal income tax rate of 21% to earnings before taxes on income for the following reasons, expressed in dollars: March 31, 2019 March 31, 2018 Federal (benefit) tax at statutory rate $ (3,266 ) $ 82,010 Items affecting federal income tax rate: State taxes on income, net of federal benefit (1,492 ) 11,297 Tax-exempt income (10,057 ) (11,840 ) Bank-owned life insurance (4,595 ) (4,895 ) Valuation allowance — 2,000 Other 19,081 27,430 $ (329 ) $ 106,002 Federal income tax expense for the periods ended March 31, 2019 and December 31, 2018 was computed using the consolidated effective federal tax rate. The Company also recognized income tax expense pertaining to state franchise taxes payable individually by the Bank. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at March 31, 2019 and December 31, 2018 are presented below: March 31, 2019 December 31, 2018 Deferred tax assets: Deferred directors’ fees $ 178,000 $ 185,000 Allowance for loan losses 132,000 127,000 Net operating loss carryforward 210,000 191,000 AMT credit 8,680 17,360 Charitable contribution 59,000 59,000 Professional fees 43,000 44,000 Securities available for sale 134,113 274,549 Other 32,181 19,922 Gross deferred tax assets 796,974 917,831 Valuation allowance (88,000 ) (88,000 ) Net deferred tax assets 708,974 829,831 Deferred tax liabilities: Prepaid expenses (14,000 ) (14,000 ) FHLB stock dividends (25,000 ) (25,000 ) Fixed assets (5,000 ) (8,000 ) Intangible assets (14,000 ) (14,000 ) Gross deferred tax liabilities (58,000 ) (61,000 ) Net deferred tax assets $ 650,974 $ 768,831 Based upon the Company’s level of historical taxable income and anticipated future taxable income over the periods that the deferred tax assets are deductible, management has reviewed whether it is more likely than not the Company will realize the benefits of these deductible differences. Management has determined that a valuation allowance was required for deferred tax assets at March 31, 2019 and December 31, 2018 , related to the charitable contribution carryforward and Iowa corporate net operating loss carryovers. The charitable contribution expires in varying amounts between 2020 and 2023. As of December 31, 2018 , the Company had no material unrecognized tax benefits. The evaluation was performed for those tax years that remain open to audit. The Company files a consolidated tax return for federal purposes and separate tax returns for the State of Iowa purposes. Under previous law, the provisions of the IRS and similar sections of Iowa law permitted the Bank to deduct from taxable income an allowance for bad debts based on 8% of taxable income before such deduction or actual loss experience. Legislation passed in 1996 eliminated the percentage of taxable income method as an option for computing bad debt deductions for 1996 and in future years. Deferred taxes have been provided for the difference between tax bad debt reserves and the loan loss allowances recorded in the financial statements subsequent to December 31, 1987. However, at March 31, 2019 and December 31, 2018 , retained earnings contain certain historical additions to bad debt reserves for income tax purposes of approximately $2,134,000 as of December 31, 1987, for which no deferred taxes have been provided because the Bank does not intend to use these reserves for purposes other than to absorb losses. If these amounts which qualified as bad debt deductions are used for purposes other than to absorb bad debt losses or adjustments arising from the carryback of net operating losses, income taxes may be imposed at the then-existing rates. The approximate amount of unrecognized tax liability associated with these historical additions is $523,000 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Common Stock Repurchase The Company repurchased no shares during the three months ended March 31, 2019 and 2018 . (b) Regulatory Capital Requirements The Company and WCF Financial Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators which, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and WCF Financial Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and WCF Financial Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believes the Company and WCF Financial Bank met all capital adequacy requirements to which they were subject as of March 31, 2019 and December 31, 2018 . The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of March 31, 2019 and December 31, 2018 (dollars in thousands). March 31, 2019 For capital adequacy To be well-capitalized with capital conservation under prompt corrective Actual buffer purposes action provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 28,440 21.79 % $ 5,221 4.00 % n/a n/a WCF Financial Bank 19,606 15.80 4,965 4.00 $ 6,206 5.00 % Common equity tier 1: Consolidated 28,458 46.88 4,247 7.000 3,944 6.50 WCF Financial Bank 19,606 33.00 4,159 7.000 3,862 6.50 Risk-based capital: Consolidated 28,969 47.75 6,370 10.500 6,067 10.00 WCF Financial Bank 20,135 33.89 6,239 10.500 5,942 10.00 Tier 1 risk-based capital: Consolidated 28,440 46.88 5,157 8.500 4,854 8.00 WCF Financial Bank 19,606 33.00 5,051 8.500 4,754 8.00 December 31, 2018 To be well-capitalized For capital adequacy under prompt corrective Actual purposes action provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 28,534 22.50 % $ 5,081 4.00 % n/a n/a WCF Financial Bank 19,567 16.30 4,792 4.00 $ 5,990 5.00 % Common equity tier 1: Consolidated 28,534 49.00 3,712 6.38 3,785 6.50 WCF Financial Bank 19,567 34.40 3,631 6.38 3,702 6.50 Risk-based capital: Consolidated 29,043 49.90 5,750 9.88 5,823 10.00 WCF Financial Bank 20,076 35.20 5,625 9.88 5,696 10.00 Tier 1 risk-based capital: Consolidated 28,534 49.00 4,585 7.88 4,658 8.00 WCF Financial Bank 19,567 34.40 4,486 7.88 4,557 8.00 In July 2013, the Federal Reserve Board and the OCC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revised minimum capital requirements and adjusted prompt corrective action thresholds. The final rules revised the regulatory capital elements, added a new common equity Tier 1 capital ratio, increased the minimum Tier 1 capital ratio requirement, and implemented a new capital conservation buffer. The rules also permitted certain banking organizations to retain, through a one-time election, the existing treatment for AOCI. The Company and WCF Financial Bank made the election to retain the existing treatment, which excludes AOCI from regulatory capital amounts. The final rules took effect for the Company and WCF Financial Bank on January 1, 2015, subject to a transition period for certain parts of the rules. Beginning in 2016, an additional capital conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer was fully phased-in on January 1, 2019 at 2.50%. A banking organization with a conservation buffer of less than 2.50% (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. As of March 31, 2019 , the ratios for the Company and WCF Financial Bank were sufficient to meet the fully phased-in conservation buffer. (c) Dividends and Restrictions Thereon The Company declared and paid a $0.05 dividend per share in each of the quarters ended March 31, 2019 and March 31, 2018. The primary source of funds for the Company is dividends from WCF Financial Bank. Under the Iowa Banking Act, Iowa-chartered banks generally may pay dividends only out of undivided profits. The Iowa Division of Banking may restrict the declaration or payment of a dividend by an Iowa-chartered bank, such as WCF Financial Bank. The payment of dividends by any FDIC-insured institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and an FDIC-insured institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. As described above, WCF Financial Bank exceeded its capital requirements under applicable guidelines as of December 31, 2018. Notwithstanding the availability of funds for dividends, however, the FDIC and the Iowa Division of Banking may prohibit the payment of dividends by WCF Financial Bank if either or both determine such payment would constitute an unsafe or unsound practice. In addition, under the Basel III Rule, institutions that seek the freedom to pay dividends will have to maintain 2.5% in Common Equity Tier 1 Capital attributable to the capital conservation buffer. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. ASC 820 requires the use of valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and liabilities carried at fair value. • Cash and due from banks, federal funds sold, and time deposits in other financial institutions . The carrying amount is a reasonable estimate of fair value. • Securities available-for-sale . Investment securities classified as available-for-sale are reported at fair value on a recurring basis. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. • Loans receivable . The Company does not record loans at fair value on a recurring basis. For variable‑rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are determined using estimated future cash flows, discounted at the interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. The Company does record nonrecurring fair value adjustments to loans to reflect (1) partial write‑downs to collateral value or (2) the establishment of specific loan reserves that are based on the observable market price of the loan or the appraised of the collateral. These loans are classified as Level 3. • FHLB and Bankers’ Bank stock . The value of FHLB and Bankers’ Bank stock is equivalent to its carrying value because the stock is redeemable at par value. • Accrued interest receivable and accrued interest payable . The recorded amount of accrued interest receivable and accrued interest payable approximates fair value as a result of the short‑term nature of the instruments. • Deposits . The fair value of deposits with no stated maturity, such as passbook, money market, noninterest‑bearing checking, and NOW accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low‑cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. • FHLB advances . The fair value of the FHLB advances is based on the discounted value of the cash flows. The discount rate is estimated using the rates currently offered for fixed‑rate advances of similar remaining maturities. The following tables summarize financial assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 , segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. The Company has no liabilities measured at fair value in the consolidated balance sheets. March 31, 2019 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 3,738,115 $ — $ 3,738,115 Mortgage-backed securities — 24,553,516 — 24,553,516 Municipal bonds — 13,794,786 — 13,794,786 Corporate bonds — 1,012,283 — 1,012,283 Total $ — $ 43,098,700 $ — $ 43,098,700 December 31, 2018 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 3,714,049 $ — $ 3,714,049 Mortgage-backed securities — 25,648,884 — 25,648,884 Municipal bonds — 14,259,108 — 14,259,108 Total $ — $ 43,622,041 $ — $ 43,622,041 There have been no changes in valuation methodologies at March 31, 2019 compared to December 31, 2018 and there were no transfers between levels during the periods ended March 31, 2019 and December 31, 2018 . The Company is required to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost or fair value accounting or write-downs of individual assets. As of March 31, 2019 and December 31, 2018 , the Company did not have any material assets measured at fair value on a nonrecurring basis. The estimated fair values of Company’s financial instruments (as described in note 1) at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 Fair value Carrying Approximate Carrying Approximate hierarchy amount fair value amount fair value Financial assets: Cash and due from banks Level 1 $ 3,432,865 $ 3,432,865 $ 3,587,631 $ 3,587,631 Federal funds sold Level 1 732,000 732,000 11,175,000 11,175,000 Time deposits in other financial institutions Level 1 4,536,380 4,536,380 4,540,687 4,540,687 Securities available-for-sale See previous table 43,098,700 43,098,700 43,622,041 43,622,041 Loans receivable, net Level 2 (1) 71,487,668 71,198,000 63,806,048 63,467,000 FHLB stock Level 1 736,800 736,800 1,110,000 1,110,000 Bankers’ Bank stock Level 1 147,500 147,500 147,500 147,500 Accrued interest receivable Level 1 512,012 512,012 424,909 424,909 Financial liabilities: Deposits Level 2 89,117,264 91,165,000 83,577,825 84,311,000 FHLB advances Level 2 14,500,000 14,463,000 24,000,000 23,897,000 Accrued interest payable Level 1 162,952 162,952 18,221 18,221 (1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved with various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. 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. The financial instruments include commitments to extend credit of approximately $899,387 and $769,169 as of March 31, 2019 and December 31, 2018 , respectively. These commitments expire one year from origination and are both fixed and adjustable interest rates ranging from 3.25% to 6.50% . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) components at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 Unrealized holding (losses) gains on securities available-for-sale $ (593,059 ) $ (1,113,902 ) Tax impact 134,113 274,549 $ (458,946 ) $ (839,353 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (the Company), and its wholly owned subsidiaries, WCF Financial Bank (the Bank) and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with Securities and Exchange Commission (SEC) rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2018 . The consolidated balance sheet of the Company as of December 31, 2018 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain reclassifications, none of each were material, have been made to conform prior year financial statements to the March 31, 2019 presentation. These reclassifications did not change previously reported net income or stockholders' equity. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. |
Use of Estimates | In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from the estimates. |
Investment Securities | Investment securities are classified based on the Company’s intended holding period. Securities that may be sold prior to maturity to meet liquidity needs, to respond to market changes, or to adjust the Company’s asset-liability position are classified as available-for-sale. Currently, all securities are classified as available-for-sale. Securities available-for-sale are carried at fair value, with the aggregate unrealized gains or losses, net of the effect of taxes on income, reported as accumulated other comprehensive income or loss. Other-than-temporary impairment is recorded in net income. The Company’s net income reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value), if any, on debt securities that the Company intends to sell, or would more likely than not be required to sell, before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell, and believes that it will not more likely than not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in net income, while the rest of the fair value loss is recognized in other comprehensive income. The credit loss component recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using the Company’s cash flow projections using its base assumptions. A decline in the fair value of any available-for-sale security below cost and that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount by fair value for the credit portion of the loss. The impairment is charged to net income and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability to hold and lack of intent to sell the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, and the general market conditions. |
Loans Receivable, Net | Loans receivable are stated at the amount of unpaid principal, reduced by the allowance for loan losses, deferred loan fees and discounts on loans purchased. Loans receivable are charged against the allowance when management believes collectability of principal is unlikely. Interest on loans receivable is accrued and credited to operations based primarily on the principal amount outstanding. Certain loan balances include unearned discounts, which are recorded as income over the term of the loan. Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms. Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year. Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Accrued interest receivable on loans receivable that become more than 90 days in arrears is charged to an allowance that is established by a charge to interest income. Interest income is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is reasonably assured, in which case the loan is returned to accrual status. Under the Company’s credit policies, commercial loans are considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate except, where more practical, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. |
Allowance for Loan Losses | The allowance for loan losses is based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is appropriate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, the composition of the loan portfolio, value of underlying collateral, and management’s estimate of probable credit losses. |
Taxes on Income | Deferred income taxes are provided under the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. |
Investment in Affiliate | The Company records its investment in an affiliate, New Castle Players, LLC, in which it has a 27.17% interest, using the equity method of accounting. The affiliate holds an investment in a local hotel in Webster City, Iowa. The Company records the value of its investment at period-end based on the affiliate’s most current available financial statements. The investment in affiliate is analyzed annually. If impairment is determined to be other-than-temporary, the carrying amount is written down to fair value. The investment is included as a component of prepaid expenses and other assets on the consolidated balance sheets, while the equity income earned is included as a component of other noninterest income on the consolidated statements of income. |
Employee Stock Ownership Plan | The Company has an employee stock ownership plan (ESOP) covering substantially all employees. The cost of shares issued to the ESOP but not yet allocated to the participants is presented in the consolidated balance sheet as a reduction of stockholders' equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts and dividends paid for unallocated shares. The shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares will be released annually from the suspense account and the released shares will be allocated to the participants on the basis of each participant’s compensation for the year of allocation. As shares are released from collateral, the Company recognizes compensation expense equal to the average market price of the shares during the period and the shares will be outstanding for earnings-per-share purposes. The shares not released are reported as unearned ESOP shares in the stockholders’ equity section on the consolidated balance sheets. |
Current Accounting Developments | In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. This update is effective for interim and annual periods beginning after December 15, 2018. The Company adopted the guidance effective January 1, 2019, using the modified retrospective method. The Company's revenue is primarily composed of interest income on financial instruments, including investment securities and loans, which are excluded from the scope of this update. Also excluded from the scope of the update is revenue from bank-owned life insurance, loan fees and letter of credit fees. Deposit account related fees, including service charges, debit card usage fees, overdraft fees and wire transfer fees are within the scope of the guidance; however, revenue recognition practices did not change under the guidance, as deposit agreements are considered day-to-day contracts. Deposit account transaction related fees will continue to be recognized as the services are performed. Other noninterest income sources of revenue are considered immaterial. Implementation of the guidance did not change current business practices. Implementation of the guidance did not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by updating certain aspects or recognition, measurement, presentation and disclosure of financial instruments. Among other changes, the update requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entities' other deferred tax assets. This update was effective for the Company interim and annual periods beginning after December 15, 2018. The Company adopted the guidance effective January 1, 2019, using the modified retrospective method. Upon adoption, the fair value of the Company's loan portfolio is now presented using an exit price method. Also, the Company is no longer required to disclose the methodologies used for estimating fair value of financial assets and liabilities that are not measured at fair value on a recurring or nonrecurring basis. The remaining requirements of this update did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The guidance in the update supersedes the requirements in ASC Topic 840, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for leases with terms more than 12 months. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2018. The Company currently has no leases. In July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements, which amends ASC 842, Leases. This update provides for an adoption option that will not require earlier periods to be restated at the adoption date. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit L osses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is in contrast to existing guidance whereby credit losses generally are not recognized until they are incurred. This update will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendment in this update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, enactment of Public Law 115-97, commonly know as the Tax Cut and Jobs Act (Tax Act), which reduced the federal corporate income tax rate and became effective in 2018. For public companies, the update was effective for annual periods beginning after December 15, 2018, with early adoption permitted. The amendment can be adopted at the beginning of the period or on a retrospective basis. The Company adopted the amendment effective January 1, 2018, using the beginning of period method. The reclassified amount was $61,135 . In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 15, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis, and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company's consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Equity Method Investments | Summary unaudited financial information of the affiliate as of and for the three months ended March 31, 2019 and 2018 is presented below. As of and For the Three Months Ended 2019 2018 Current assets $ 153,125 $ 136,150 Long-term assets 1,631,944 1,669,687 Current liabilities 184,389 86,294 Total equity 1,600,680 1,719,544 Total revenue 996,735 924,323 Net income 159,957 140,603 |
Schedule of Earnings Per Share | The calculation of earnings per common share and diluted earnings per common share for the three months ended March 31, 2019 and 2018 is presented below. Three Months Ended 2019 2018 Net (loss) income $ (15,223 ) $ 284,524 Weighted average common shares outstanding and diluted common shares outstanding 2,417,143 2,410,295 Basic earnings (losses) per common share $ (0.01 ) $ 0.12 Diluted earnings (losses) per common share $ (0.01 ) $ 0.12 Unearned Employee Stock Ownership Plan (ESOP) shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. ESOP shares that have been committed to be released are considered outstanding and included for the purposes of computing basic and diluted earnings per share. |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Securities available-for-sale at March 31, 2019 and December 31, 2018 were as follows: Description Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2019: U.S. agency securities $ 3,740,704 $ 10,227 $ 12,816 $ 3,738,115 Mortgage-backed securities* 25,146,794 6,741 600,019 24,553,516 Municipal bonds 13,805,897 70,014 81,125 13,794,786 Corporate bonds 998,364 13,919 — 1,012,283 $ 43,691,759 $ 100,901 $ 693,960 $ 43,098,700 December 31, 2018: U.S. agency securities $ 3,740,431 $ 8,531 $ 34,913 $ 3,714,049 Mortgage-backed securities* 26,511,033 3,911 866,060 25,648,884 Municipal bonds 14,484,479 29,095 254,466 14,259,108 $ 44,735,943 $ 41,537 $ 1,155,439 $ 43,622,041 *All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans. |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at March 31, 2019 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2019 Amortized cost Fair value Due in one year or less $ 2,926,752 $ 2,936,795 Due after one year through five years 1,981,826 1,996,468 Due after five years, but less than ten years 7,299,136 7,291,215 Due after ten years 5,338,887 5,308,423 17,546,601 17,532,901 Mortgage-backed securities 25,146,794 24,553,516 Corporate bonds 998,364 1,012,283 $ 43,691,759 $ 43,098,700 |
Summary of Investment Securities Sales | The details of the sales of investment securities for the three months ended March 31, 2019 and 2018 are summarized in the following table. Three Months Ended 2019 2018 Proceeds from sales $ 1,700,899 $ 2,121,241 Gross gains on sales 11,073 — Gross losses on sales 564 14,465 |
Schedule of Securities in a Continuous Unrealized Loss Position | The following tables show the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018 . March 31, 2019 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ — $ — $ 1,227,888 $ 12,816 $ 1,227,888 $ 12,816 Mortgage-backed securities 1,719,658 14,131 20,661,492 585,888 22,381,150 600,019 Municipal bonds — — 8,017,017 81,125 8,017,017 81,125 Total $ 1,719,658 $ 14,131 $ 29,906,397 $ 679,829 $ 31,626,055 $ 693,960 December 31, 2018 Up to 12 months Greater than 12 months Total Fair value Gross unrealized loss Fair value Gross unrealized loss Fair value Gross unrealized loss U.S. agency securities $ — $ — $ 1,205,518 $ 34,913 $ 1,205,518 $ 34,913 Mortgage-backed securities 3,393,192 36,192 20,903,713 829,868 24,296,905 866,060 Municipal bonds 4,400,121 102,524 6,694,327 151,942 11,094,448 254,466 Total $ 7,793,313 $ 138,716 $ 28,803,558 $ 1,016,723 $ 36,596,871 $ 1,155,439 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | At March 31, 2019 and December 31, 2018 , loans receivable consisted of the following segments: March 31, 2019 December 31, 2018 Loans: One-to-four family residential $ 56,541,012 $ 52,335,005 Non-owner occupied one-to-four family residential 3,211,965 3,013,417 Commercial real estate 5,367,251 2,162,851 Consumer 6,911,695 6,801,419 Total loans receivable 72,031,923 64,312,692 Premiums on loans purchased 16,284 30,318 Deferred loan costs (fees) (31,581 ) (28,042 ) Allowance for loan losses (528,958 ) (508,920 ) $ 71,487,668 $ 63,806,048 |
Summary of Allowance for Loan Losses | The following tables present the balance in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2019 and December 31, 2018 . March 31, 2019 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 367,973 13,245 53,218 94,522 528,958 Total $ 367,973 $ 13,245 $ 53,218 $ 94,522 $ 528,958 Loans receivable: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 56,541,012 3,211,965 5,367,251 6,911,695 72,031,923 Total $ 56,541,012 $ 3,211,965 $ 5,367,251 $ 6,911,695 $ 72,031,923 December 31, 2018 One-to-four family residential Non-owner occupied on-to-four family residential Commercial real estate Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 407,086 13,252 19,110 69,472 508,920 Total $ 407,086 $ 13,252 $ 19,110 $ 69,472 $ 508,920 Loans receivable: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 52,335,005 3,013,417 2,162,851 6,801,419 64,312,692 Total $ 52,335,005 $ 3,013,417 $ 2,162,851 $ 6,801,419 $ 64,312,692 Activity in the allowance for loan losses by segment for the three months ended March 31, 2019 and 2018 is summarized in the following tables: Three months ended March 31, 2019 Beginning Balance Charge-offs Recoveries Provisions * Ending Balance Loans: One-to-four family residential $ 407,086 $ — $ — $ (39,113 ) $ 367,973 Non-owner occupied one-to-four family residential 13,252 — — (7 ) 13,245 Commercial real estate 19,110 — — 34,108 53,218 Consumer 69,472 9,962 — 35,012 94,522 Total $ 508,920 $ 9,962 $ — $ 30,000 $ 528,958 Three months ended March 31, 2018 Beginning Balance Charge-offs Recoveries Provisions * Ending Balance Loans: One-to-four family residential $ 393,341 $ — $ — $ 8,969 $ 402,310 Non-owner occupied one-to-four family residential 25,893 — — 1,000 26,893 Commercial real estate 33,204 — — (949 ) 32,255 Consumer 85,881 792 — 10,480 95,569 Total $ 538,319 $ 792 $ — $ 19,500 $ 557,027 * The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. |
Summary of Loans by Credit Quality Indicators | The following tables set forth the composition of each class of the Company’s loans by internally assigned credit quality indicators. Pass Special mention/watch Substandard Doubtful Total March 31, 2019: Loans One-to-four family residential $ 55,049,481 $ 1,041,190 $ 450,341 $ — $ 56,541,012 Non-owner occupied one-to-four family residential 3,069,186 142,779 — — 3,211,965 Commercial real estate 5,367,251 — — — 5,367,251 Consumer 6,799,104 106,904 5,687 — 6,911,695 Total $ 70,285,022 $ 1,290,873 $ 456,028 $ — $ 72,031,923 Pass Special mention/watch Substandard Doubtful Total December 31, 2018: Loans One-to-four family residential $ 50,712,926 $ 1,041,019 $ 581,060 $ — $ 52,335,005 Non-owner occupied one-to-four family residential 2,876,981 136,436 — — 3,013,417 Commercial real estate 2,162,851 — — — 2,162,851 Consumer 6,301,242 436,522 63,655 — 6,801,419 Total $ 62,054,000 $ 1,613,977 $ 644,715 $ — $ 64,312,692 |
Summary of Past Due Loans | The following tables set forth the composition of the Company’s past-due loans at March 31, 2019 and December 31, 2018 . 30-59 days 60-89 days 90 days Total Current Total loans receivable Recorded investment > 90 days and accruing March 31, 2019: Loans One-to-four family residential $ 558,307 $ 155,244 $ 450,341 $ 1,163,892 $ 55,377,120 $ 56,541,012 $ — Non-owner occupied one-to-four family residential 6,865 — — 6,865 3,205,100 3,211,965 — Commercial real estate — — — — 5,367,251 5,367,251 — Consumer 34,810 19,762 5,687 60,259 6,851,436 6,911,695 — Total $ 599,982 $ 175,006 $ 456,028 $ 1,231,016 $ 70,800,907 $ 72,031,923 $ — 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans receivable Recorded investment > 90 days and accruing December 31, 2018: Loans One-to-four family residential $ 706,658 $ 283,116 $ 369,058 $ 1,358,832 $ 50,976,173 $ 52,335,005 $ — Non-owner occupied one-to-four family residential — — — — 3,013,417 3,013,417 — Commercial real estate — — — — 2,162,851 2,162,851 — Consumer 229,899 23,400 63,655 316,954 6,484,465 6,801,419 — Total $ 936,557 $ 306,516 $ 432,713 $ 1,675,786 $ 62,636,906 $ 64,312,692 $ — |
Schedule of Loans Receivable on a Nonaccrual Status | The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of March 31, 2019 and December 31, 2018 . March 31, 2019 December 31, 2018 Loans One-to-four family residential $ 551,940 $ 581,060 Non-owner occupied one-to-four family residential — — Commercial real estate — — Consumer 5,687 63,655 Total $ 557,627 $ 644,715 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits by Type | At March 31, 2019 and December 31, 2018 , deposits are summarized as follows: March 31, 2019 December 31, 2018 Statement savings $ 13,797,178 $ 13,461,826 Money market plus 11,213,186 11,153,339 NOW 18,437,407 18,214,876 Certificates of deposit 45,669,493 40,747,784 $ 89,117,264 $ 83,577,825 |
Tax benefit and expense (Tables
Tax benefit and expense (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Taxes on income comprise the following: March 31, 2019 Federal State Total Current $ 26,654 $ (4,404 ) $ 22,250 Deferred (25,094 ) 2,515 (22,579 ) $ 1,560 $ (1,889 ) $ (329 ) March 31, 2018 Federal State Total Current $ 25,933 $ 14,300 $ 40,233 Deferred 65,769 — 65,769 $ 91,702 $ 14,300 $ 106,002 |
Schedule of Effective Income Tax Rate Reconciliation | Taxes on income differ from the amounts computed by applying the federal income tax rate of 21% to earnings before taxes on income for the following reasons, expressed in dollars: March 31, 2019 March 31, 2018 Federal (benefit) tax at statutory rate $ (3,266 ) $ 82,010 Items affecting federal income tax rate: State taxes on income, net of federal benefit (1,492 ) 11,297 Tax-exempt income (10,057 ) (11,840 ) Bank-owned life insurance (4,595 ) (4,895 ) Valuation allowance — 2,000 Other 19,081 27,430 $ (329 ) $ 106,002 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at March 31, 2019 and December 31, 2018 are presented below: March 31, 2019 December 31, 2018 Deferred tax assets: Deferred directors’ fees $ 178,000 $ 185,000 Allowance for loan losses 132,000 127,000 Net operating loss carryforward 210,000 191,000 AMT credit 8,680 17,360 Charitable contribution 59,000 59,000 Professional fees 43,000 44,000 Securities available for sale 134,113 274,549 Other 32,181 19,922 Gross deferred tax assets 796,974 917,831 Valuation allowance (88,000 ) (88,000 ) Net deferred tax assets 708,974 829,831 Deferred tax liabilities: Prepaid expenses (14,000 ) (14,000 ) FHLB stock dividends (25,000 ) (25,000 ) Fixed assets (5,000 ) (8,000 ) Intangible assets (14,000 ) (14,000 ) Gross deferred tax liabilities (58,000 ) (61,000 ) Net deferred tax assets $ 650,974 $ 768,831 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of March 31, 2019 and December 31, 2018 (dollars in thousands). March 31, 2019 For capital adequacy To be well-capitalized with capital conservation under prompt corrective Actual buffer purposes action provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 28,440 21.79 % $ 5,221 4.00 % n/a n/a WCF Financial Bank 19,606 15.80 4,965 4.00 $ 6,206 5.00 % Common equity tier 1: Consolidated 28,458 46.88 4,247 7.000 3,944 6.50 WCF Financial Bank 19,606 33.00 4,159 7.000 3,862 6.50 Risk-based capital: Consolidated 28,969 47.75 6,370 10.500 6,067 10.00 WCF Financial Bank 20,135 33.89 6,239 10.500 5,942 10.00 Tier 1 risk-based capital: Consolidated 28,440 46.88 5,157 8.500 4,854 8.00 WCF Financial Bank 19,606 33.00 5,051 8.500 4,754 8.00 December 31, 2018 To be well-capitalized For capital adequacy under prompt corrective Actual purposes action provisions Amount Percent Amount Percent Amount Percent Tangible capital: Consolidated $ 28,534 22.50 % $ 5,081 4.00 % n/a n/a WCF Financial Bank 19,567 16.30 4,792 4.00 $ 5,990 5.00 % Common equity tier 1: Consolidated 28,534 49.00 3,712 6.38 3,785 6.50 WCF Financial Bank 19,567 34.40 3,631 6.38 3,702 6.50 Risk-based capital: Consolidated 29,043 49.90 5,750 9.88 5,823 10.00 WCF Financial Bank 20,076 35.20 5,625 9.88 5,696 10.00 Tier 1 risk-based capital: Consolidated 28,534 49.00 4,585 7.88 4,658 8.00 WCF Financial Bank 19,567 34.40 4,486 7.88 4,557 8.00 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | The following tables summarize financial assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 , segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. The Company has no liabilities measured at fair value in the consolidated balance sheets. March 31, 2019 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 3,738,115 $ — $ 3,738,115 Mortgage-backed securities — 24,553,516 — 24,553,516 Municipal bonds — 13,794,786 — 13,794,786 Corporate bonds — 1,012,283 — 1,012,283 Total $ — $ 43,098,700 $ — $ 43,098,700 December 31, 2018 Level 1 inputs Level 2 inputs Level 3 inputs Total fair value U.S. agency securities $ — $ 3,714,049 $ — $ 3,714,049 Mortgage-backed securities — 25,648,884 — 25,648,884 Municipal bonds — 14,259,108 — 14,259,108 Total $ — $ 43,622,041 $ — $ 43,622,041 |
Summary of Estimated Fair Values of Company's Financial Instruments | The estimated fair values of Company’s financial instruments (as described in note 1) at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 Fair value Carrying Approximate Carrying Approximate hierarchy amount fair value amount fair value Financial assets: Cash and due from banks Level 1 $ 3,432,865 $ 3,432,865 $ 3,587,631 $ 3,587,631 Federal funds sold Level 1 732,000 732,000 11,175,000 11,175,000 Time deposits in other financial institutions Level 1 4,536,380 4,536,380 4,540,687 4,540,687 Securities available-for-sale See previous table 43,098,700 43,098,700 43,622,041 43,622,041 Loans receivable, net Level 2 (1) 71,487,668 71,198,000 63,806,048 63,467,000 FHLB stock Level 1 736,800 736,800 1,110,000 1,110,000 Bankers’ Bank stock Level 1 147,500 147,500 147,500 147,500 Accrued interest receivable Level 1 512,012 512,012 424,909 424,909 Financial liabilities: Deposits Level 2 89,117,264 91,165,000 83,577,825 84,311,000 FHLB advances Level 2 14,500,000 14,463,000 24,000,000 23,897,000 Accrued interest payable Level 1 162,952 162,952 18,221 18,221 (1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) components at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 Unrealized holding (losses) gains on securities available-for-sale $ (593,059 ) $ (1,113,902 ) Tax impact 134,113 274,549 $ (458,946 ) $ (839,353 ) |
Basis of Presentation (Investme
Basis of Presentation (Investment Securities Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gain (loss) on sale of securities available-for-sale, net | $ 10,509 | $ (14,465) |
Basis of Presentation (Invest_2
Basis of Presentation (Investment in Affiliate Narrative) (Details) | Mar. 31, 2019 |
New Castle Players, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 27.17% |
Basis of Presentation (Invest_3
Basis of Presentation (Investment in Affiliate) (Details) - New Castle Players, LLC - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 153,125 | $ 136,150 |
Long-term assets | 1,631,944 | 1,669,687 |
Current liabilities | 184,389 | 86,294 |
Total equity | 1,600,680 | 1,719,544 |
Total revenue | 996,735 | 924,323 |
Net income | $ 159,957 | $ 140,603 |
Basis of Presentation (Earnings
Basis of Presentation (Earnings per Common Share) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net (loss) income | $ (15,223) | $ 284,524 |
Weighted average common shares outstanding and diluted common shares outstanding (in shares) | 2,417,143 | 2,410,295 |
Basic earnings (loss) per common share (in usd per share) | $ (0.01) | $ 0.12 |
Diluted earnings (loss) per common share (in usd per share) | $ (0.01) | $ 0.12 |
Basis of Presentation (Employee
Basis of Presentation (Employee Stock Ownership Plan) (Details) $ in Thousands | Mar. 31, 2019USD ($)shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allocated shares (in shares) | 22,249 |
Shares held in suspense (in shares) | 148,890 |
Fair value of unallocated shares | $ | $ 1,228 |
Basis of Presentation (Current
Basis of Presentation (Current Accounting Developments) (Details) - USD ($) | Jan. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Accumulated other comprehensive income (loss) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclass of stranded tax effects of rate change | $ (61,135) | $ (61,135) | |
Retained earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclass of stranded tax effects of rate change | $ 61,135 | $ 61,135 |
Securities Available-for-Sale_2
Securities Available-for-Sale (Amortized Cost to Fair Value) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | $ 43,691,759 | $ 44,735,943 |
Gross unrealized gains | 100,901 | 41,537 |
Gross unrealized losses | 693,960 | 1,155,439 |
Fair value | 43,098,700 | 43,622,041 |
U.S. agency securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 3,740,704 | 3,740,431 |
Gross unrealized gains | 10,227 | 8,531 |
Gross unrealized losses | 12,816 | 34,913 |
Fair value | 3,738,115 | 3,714,049 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 25,146,794 | 26,511,033 |
Gross unrealized gains | 6,741 | 3,911 |
Gross unrealized losses | 600,019 | 866,060 |
Fair value | 24,553,516 | 25,648,884 |
Municipal bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 13,805,897 | 14,484,479 |
Gross unrealized gains | 70,014 | 29,095 |
Gross unrealized losses | 81,125 | 254,466 |
Fair value | 13,794,786 | $ 14,259,108 |
Corporate bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 998,364 | |
Gross unrealized gains | 13,919 | |
Gross unrealized losses | 0 | |
Fair value | $ 1,012,283 |
Securities Available-for-Sale_3
Securities Available-for-Sale (Amortized Cost and Fair Value of Securities by Maturity) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized cost | ||
Due in one year or less | $ 2,926,752 | |
Due after one year through five years | 1,981,826 | |
Due after five years, but less than ten years | 7,299,136 | |
Due after ten years | 5,338,887 | |
With single maturity date total | 17,546,601 | |
Amortized cost | 43,691,759 | $ 44,735,943 |
Fair value | ||
Due in one year or less | 2,936,795 | |
Due after one year through five years | 1,996,468 | |
Due after five years, but less than ten years | 7,291,215 | |
Due after ten years | 5,308,423 | |
With single maturity date total | 17,532,901 | |
Fair value | 43,098,700 | 43,622,041 |
Mortgage-backed securities | ||
Amortized cost | ||
Without single maturity date | 25,146,794 | |
Amortized cost | 25,146,794 | 26,511,033 |
Fair value | ||
Without single maturity date | 24,553,516 | |
Fair value | 24,553,516 | $ 25,648,884 |
Corporate bonds | ||
Amortized cost | ||
Without single maturity date | 998,364 | |
Amortized cost | 998,364 | |
Fair value | ||
Without single maturity date | 1,012,283 | |
Fair value | $ 1,012,283 |
Securities Available-for-Sale_4
Securities Available-for-Sale (Sales of Investment Securities) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 1,700,899 | $ 2,121,241 |
Gross gains on sales | 11,073 | 0 |
Gross losses on sales | $ 564 | $ 14,465 |
Securities Available-for-Sale_5
Securities Available-for-Sale (Narrative) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 512,012 | $ 424,909 |
Available-for-sale securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 331,443 | $ 231,087 |
Securities Available-for-Sale_6
Securities Available-for-Sale (Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair value | ||
Up to 12 months | $ 1,719,658 | $ 7,793,313 |
Greater than 12 months | 29,906,397 | 28,803,558 |
Total | 31,626,055 | 36,596,871 |
Gross unrealized loss | ||
Up to 12 months | 14,131 | 138,716 |
Greater than 12 months | 679,829 | 1,016,723 |
Total | 693,960 | 1,155,439 |
U.S. agency securities | ||
Fair value | ||
Up to 12 months | 0 | 0 |
Greater than 12 months | 1,227,888 | 1,205,518 |
Total | 1,227,888 | 1,205,518 |
Gross unrealized loss | ||
Up to 12 months | 0 | 0 |
Greater than 12 months | 12,816 | 34,913 |
Total | 12,816 | 34,913 |
Mortgage-backed securities | ||
Fair value | ||
Up to 12 months | 1,719,658 | 3,393,192 |
Greater than 12 months | 20,661,492 | 20,903,713 |
Total | 22,381,150 | 24,296,905 |
Gross unrealized loss | ||
Up to 12 months | 14,131 | 36,192 |
Greater than 12 months | 585,888 | 829,868 |
Total | 600,019 | 866,060 |
Municipal bonds | ||
Fair value | ||
Up to 12 months | 0 | 4,400,121 |
Greater than 12 months | 8,017,017 | 6,694,327 |
Total | 8,017,017 | 11,094,448 |
Gross unrealized loss | ||
Up to 12 months | 102,524 | |
Greater than 12 months | 81,125 | 151,942 |
Total | $ 81,125 | $ 254,466 |
Loans Receivable (Summary of Lo
Loans Receivable (Summary of Loans Receivable) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | $ 72,031,923 | $ 64,312,692 | ||
Premiums on loans purchased | 16,284 | 30,318 | ||
Deferred loan costs (fees) | (31,581) | (28,042) | ||
Allowance for loan losses | (528,958) | (508,920) | $ (557,027) | $ (538,319) |
Loans receivable, net | 71,487,668 | 63,806,048 | ||
One-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 56,541,012 | 52,335,005 | ||
Allowance for loan losses | (367,973) | (407,086) | (402,310) | (393,341) |
Non-owner occupied one-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 3,211,965 | 3,013,417 | ||
Allowance for loan losses | (13,245) | (13,252) | (26,893) | (25,893) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 5,367,251 | 2,162,851 | ||
Allowance for loan losses | (53,218) | (19,110) | (32,255) | (33,204) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | 6,911,695 | 6,801,419 | ||
Allowance for loan losses | $ (94,522) | $ (69,472) | $ (95,569) | $ (85,881) |
Loans Receivable (Narrative) (D
Loans Receivable (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 512,012 | $ 424,909 |
Loans receivable with fixed rates of interest | 40,300,000 | 39,100,000 |
Loans receivable with variable rates of interest | $ 31,700,000 | $ 25,200,000 |
Number of impaired loans | loan | 0 | 0 |
Impaired loan, balance | $ 0 | $ 0 |
Interest income recorded on impaired loans | $ 0 | 0 |
Non-owner occupied one-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum term on loans | 25 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Impaired loan, balance | $ 0 | 0 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum term on loans | 20 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Impaired loan, balance | $ 0 | 0 |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 180,569 | $ 193,822 |
Loans Receivable (Allowance for
Loans Receivable (Allowance for Loan Losses) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | $ 0 | $ 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 528,958 | 508,920 | ||
Allowance for loan losses, Total | 528,958 | 508,920 | $ 557,027 | $ 538,319 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 72,031,923 | 64,312,692 | ||
Total loans receivable | 72,031,923 | 64,312,692 | ||
One-to-four family residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 367,973 | 407,086 | ||
Allowance for loan losses, Total | 367,973 | 407,086 | 402,310 | 393,341 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 56,541,012 | 52,335,005 | ||
Total loans receivable | 56,541,012 | 52,335,005 | ||
Non-owner occupied one-to-four family residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 13,245 | 13,252 | ||
Allowance for loan losses, Total | 13,245 | 13,252 | 26,893 | 25,893 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 3,211,965 | 3,013,417 | ||
Total loans receivable | 3,211,965 | 3,013,417 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 53,218 | 19,110 | ||
Allowance for loan losses, Total | 53,218 | 19,110 | 32,255 | 33,204 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 5,367,251 | 2,162,851 | ||
Total loans receivable | 5,367,251 | 2,162,851 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 94,522 | 69,472 | ||
Allowance for loan losses, Total | 94,522 | 69,472 | $ 95,569 | $ 85,881 |
Loans receivable, Individually evaluated for impairment | 0 | 0 | ||
Loans receivable, Collectively evaluated for impairment | 6,911,695 | 6,801,419 | ||
Total loans receivable | $ 6,911,695 | $ 6,801,419 |
Loans Receivable (Allowance f_2
Loans Receivable (Allowance for Loan Losses by Segment) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | $ 508,920 | $ 538,319 |
Charge-offs | 9,962 | 792 |
Recoveries | 0 | 0 |
Provisions | 30,000 | 19,500 |
Ending Balance | 528,958 | 557,027 |
One-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 407,086 | 393,341 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | (39,113) | 8,969 |
Ending Balance | 367,973 | 402,310 |
Non-owner occupied one-to-four family residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 13,252 | 25,893 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | (7) | 1,000 |
Ending Balance | 13,245 | 26,893 |
Commercial real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 19,110 | 33,204 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | 34,108 | (949) |
Ending Balance | 53,218 | 32,255 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 69,472 | 85,881 |
Charge-offs | 9,962 | 792 |
Recoveries | 0 | 0 |
Provisions | 35,012 | 10,480 |
Ending Balance | $ 94,522 | $ 95,569 |
Loans Receivable (Credit Qualit
Loans Receivable (Credit Quality Indicators by Loan Segment) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 72,031,923 | $ 64,312,692 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 70,285,022 | 62,054,000 |
Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,290,873 | 1,613,977 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 456,028 | 644,715 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 56,541,012 | 52,335,005 |
One-to-four family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 55,049,481 | 50,712,926 |
One-to-four family residential | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 1,041,190 | 1,041,019 |
One-to-four family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 450,341 | 581,060 |
One-to-four family residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 3,211,965 | 3,013,417 |
Non-owner occupied one-to-four family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 3,069,186 | 2,876,981 |
Non-owner occupied one-to-four family residential | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 142,779 | 136,436 |
Non-owner occupied one-to-four family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Non-owner occupied one-to-four family residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 5,367,251 | 2,162,851 |
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 5,367,251 | 2,162,851 |
Commercial real estate | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 6,911,695 | 6,801,419 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 6,799,104 | 6,301,242 |
Consumer | Special mention/watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 106,904 | 436,522 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | 5,687 | 63,655 |
Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable | $ 0 | $ 0 |
Loans Receivable (Past Due Loan
Loans Receivable (Past Due Loans) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 1,231,016 | $ 1,675,786 |
Current | 70,800,907 | 62,636,906 |
Total loans receivable | 72,031,923 | 64,312,692 |
Recorded investment, greater than 90 days past due and still accruing | 0 | 0 |
30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 599,982 | 936,557 |
60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 175,006 | 306,516 |
90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 456,028 | 432,713 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1,163,892 | 1,358,832 |
Current | 55,377,120 | 50,976,173 |
Total loans receivable | 56,541,012 | 52,335,005 |
Recorded investment, greater than 90 days past due and still accruing | 0 | 0 |
One-to-four family residential | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 558,307 | 706,658 |
One-to-four family residential | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 155,244 | 283,116 |
One-to-four family residential | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 450,341 | 369,058 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 6,865 | 0 |
Current | 3,205,100 | 3,013,417 |
Total loans receivable | 3,211,965 | 3,013,417 |
Recorded investment, greater than 90 days past due and still accruing | 0 | 0 |
Non-owner occupied one-to-four family residential | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 6,865 | 0 |
Non-owner occupied one-to-four family residential | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Non-owner occupied one-to-four family residential | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Current | 5,367,251 | 2,162,851 |
Total loans receivable | 5,367,251 | 2,162,851 |
Recorded investment, greater than 90 days past due and still accruing | 0 | 0 |
Commercial real estate | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Commercial real estate | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 60,259 | 316,954 |
Current | 6,851,436 | 6,484,465 |
Total loans receivable | 6,911,695 | 6,801,419 |
Recorded investment, greater than 90 days past due and still accruing | 0 | 0 |
Consumer | 30 to 59 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 34,810 | 229,899 |
Consumer | 60 to 89 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 19,762 | 23,400 |
Consumer | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 5,687 | $ 63,655 |
Loans Receivable (Loans on Nona
Loans Receivable (Loans on Nonaccrual Status) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 557,627 | $ 644,715 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 551,940 | 581,060 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 5,687 | $ 63,655 |
Deposits (Schedule of Deposits)
Deposits (Schedule of Deposits) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Statement savings | $ 13,797,178 | $ 13,461,826 |
Money market plus | 11,213,186 | 11,153,339 |
NOW | 18,437,407 | 18,214,876 |
Certificates of deposit | 45,669,493 | 40,747,784 |
Deposits | $ 89,117,264 | $ 83,577,825 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Non-interest bearing deposits | $ 5.7 | $ 4.6 |
Tax benefit and expense (Provis
Tax benefit and expense (Provision/Benefit) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Current federal income tax expense (benefit) | $ 26,654 | $ 25,933 |
Current state income tax expense (benefit) | (4,404) | 14,300 |
Current income tax expense (benefit) | 22,250 | 40,233 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Deferred federal income tax expense (benefit) | (25,094) | 65,769 |
Deferred state income tax expense (benefit) | 2,515 | 0 |
Deferred income tax expense (benefit) | (22,579) | 65,769 |
Federal income tax expense (benefit) | 1,560 | 91,702 |
State income tax expense (benefit) | (1,889) | 14,300 |
Income tax expense (benefit) | $ (329) | $ 106,002 |
Tax benefit and expense (Narrat
Tax benefit and expense (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate (as a percent) | 21.00% | 21.00% | |
Unrecognized tax benefit | $ 0 | ||
Retaining earnings on which income taxes have not been provided | $ 2,134 | $ 2,134 | |
Increase in unrecognized tax benefits resulting from prior period tax positions | $ 523 |
Tax benefit and expense (Effect
Tax benefit and expense (Effective Tax Rate Reconciliation) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal (benefit) tax at statutory rate | $ (3,266) | $ 82,010 |
Items affecting federal income tax rate: | ||
State taxes on income, net of federal benefit | (1,492) | 11,297 |
Tax-exempt income | (10,057) | (11,840) |
Bank-owned life insurance | (4,595) | (4,895) |
Valuation allowance | 0 | 2,000 |
Other | 19,081 | 27,430 |
Income tax expense (benefit) | $ (329) | $ 106,002 |
Tax benefit and expense (Deferr
Tax benefit and expense (Deferred Tax Assets and Liabilities) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Deferred directors’ fees | $ 178,000 | $ 185,000 |
Allowance for loan losses | 132,000 | 127,000 |
Net operating loss carryforward | 210,000 | 191,000 |
AMT credit | 8,680 | 17,360 |
Charitable contribution | 59,000 | 59,000 |
Professional fees | 43,000 | 44,000 |
Securities available for sale | 134,113 | 274,549 |
Other | 32,181 | 19,922 |
Gross deferred tax assets | 796,974 | 917,831 |
Valuation allowance | (88,000) | (88,000) |
Net deferred tax assets | 708,974 | 829,831 |
Deferred tax liabilities: | ||
Prepaid expenses | (14,000) | (14,000) |
FHLB stock dividends | (25,000) | (25,000) |
Fixed assets | (5,000) | (8,000) |
Intangible assets | (14,000) | (14,000) |
Gross deferred tax liabilities | (58,000) | (61,000) |
Net deferred tax assets | $ 650,974 | $ 768,831 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||
Dividends declared per share of common stock (in usd per share) | $ 0.05 | $ 0.05 |
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0.05 |
Common stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares of common stock repurchased (in shares) | 0 | 0 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated | ||
Tangible capital: | ||
Actual, Amount | $ 28,440 | $ 28,534 |
Actual, Percent | 21.79% | 22.50% |
For capital adequacy purposes, Amount | $ 5,221 | $ 5,081 |
For capital adequacy purposes, Percent | 4.00% | 4.00% |
Common equity tier 1: | ||
Amount, Amount | $ 28,458 | $ 28,534 |
Actual, Percent | 46.88% | 49.00% |
For capital adequacy purposes, Amount | $ 4,247 | $ 3,712 |
For capital adequacy purposes, Percent | 7.00% | 6.38% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,944 | $ 3,785 |
To be well-capitalized under prompt correction action provisions, Percent | 6.50% | 6.50% |
Risk-based capital: | ||
Actual, Amount | $ 28,969 | $ 29,043 |
Actual, Percent | 47.75% | 49.90% |
For capital adequacy purposes, Amount | $ 6,370 | $ 5,750 |
For capital adequacy purposes, Percent | 10.50% | 9.88% |
To be well-capitalized under prompt correction action provisions, Amount | $ 6,067 | $ 5,823 |
To be well-capitalized under prompt correction action provisions, Percent | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 28,440 | $ 28,534 |
Actual, Percent | 46.88% | 49.00% |
For capital adequacy purposes, Amount | $ 5,157 | $ 4,585 |
For capital adequacy purposes, Percent | 8.50% | 7.88% |
To be well-capitalized under prompt correction action provisions, Amount | $ 4,854 | $ 4,658 |
To be well-capitalized under prompt correction action provisions, Percent | 8.00% | 8.00% |
WCF Financial Bank | ||
Tangible capital: | ||
Actual, Amount | $ 19,606 | $ 19,567 |
Actual, Percent | 15.80% | 16.30% |
For capital adequacy purposes, Amount | $ 4,965 | $ 4,792 |
For capital adequacy purposes, Percent | 4.00% | 4.00% |
To be well-capitalized under prompt correction action provisions, Amount | $ 6,206 | $ 5,990 |
To be well-capitalized under prompt correction action provisions, Percent | 5.00% | 5.00% |
Common equity tier 1: | ||
Amount, Amount | $ 19,606 | $ 19,567 |
Actual, Percent | 33.00% | 34.40% |
For capital adequacy purposes, Amount | $ 4,159 | $ 3,631 |
For capital adequacy purposes, Percent | 7.00% | 6.38% |
To be well-capitalized under prompt correction action provisions, Amount | $ 3,862 | $ 3,702 |
To be well-capitalized under prompt correction action provisions, Percent | 6.50% | 6.50% |
Risk-based capital: | ||
Actual, Amount | $ 20,135 | $ 20,076 |
Actual, Percent | 33.89% | 35.20% |
For capital adequacy purposes, Amount | $ 6,239 | $ 5,625 |
For capital adequacy purposes, Percent | 10.50% | 9.88% |
To be well-capitalized under prompt correction action provisions, Amount | $ 5,942 | $ 5,696 |
To be well-capitalized under prompt correction action provisions, Percent | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 19,606 | $ 19,567 |
Actual, Percent | 33.00% | 34.40% |
For capital adequacy purposes, Amount | $ 5,051 | $ 4,486 |
For capital adequacy purposes, Percent | 8.50% | 7.88% |
To be well-capitalized under prompt correction action provisions, Amount | $ 4,754 | $ 4,557 |
To be well-capitalized under prompt correction action provisions, Percent | 8.00% | 8.00% |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | $ 0 | $ 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 43,098,700 | $ 43,622,041 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 3,738,115 | 3,714,049 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 24,553,516 | 25,648,884 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 13,794,786 | 14,259,108 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 1,012,283 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 43,098,700 | 43,622,041 |
Recurring | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 3,738,115 | 3,714,049 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 24,553,516 | 25,648,884 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 13,794,786 | 14,259,108 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 1,012,283 | |
Recurring | Level 1 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 inputs | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 inputs | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | |
Recurring | Level 2 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 43,098,700 | 43,622,041 |
Recurring | Level 2 inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 3,738,115 | 3,714,049 |
Recurring | Level 2 inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 24,553,516 | 25,648,884 |
Recurring | Level 2 inputs | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 13,794,786 | 14,259,108 |
Recurring | Level 2 inputs | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 1,012,283 | |
Recurring | Level 3 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 inputs | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | $ 0 |
Recurring | Level 3 inputs | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 0 |
Fair Value (Estimated Fair Valu
Fair Value (Estimated Fair Value of Financial Instruments) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Securities available-for-sale, at fair value | $ 43,098,700 | $ 43,622,041 |
Carrying amount | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 43,098,700 | 43,622,041 |
Approximate fair value | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 43,098,700 | 43,622,041 |
Level 1 | Carrying amount | ||
Financial assets: | ||
Cash and due from banks | 3,432,865 | 3,587,631 |
Federal funds sold | 732,000 | 11,175,000 |
Time deposits in other financial institutions | 4,536,380 | 4,540,687 |
FHLB stock | 736,800 | 1,110,000 |
Bankers’ Bank stock | 147,500 | 147,500 |
Accrued interest receivable | 512,012 | 424,909 |
Financial liabilities: | ||
Accrued interest payable | 162,952 | 18,221 |
Level 1 | Approximate fair value | ||
Financial assets: | ||
Cash and due from banks | 3,432,865 | 3,587,631 |
Federal funds sold | 732,000 | 11,175,000 |
Time deposits in other financial institutions | 4,536,380 | 4,540,687 |
FHLB stock | 736,800 | 1,110,000 |
Bankers’ Bank stock | 147,500 | 147,500 |
Accrued interest receivable | 512,012 | 424,909 |
Financial liabilities: | ||
Accrued interest payable | 162,952 | 18,221 |
Level 2 | Carrying amount | ||
Financial assets: | ||
Loans receivable, net | 71,487,668 | 63,806,048 |
Financial liabilities: | ||
Deposits | 89,117,264 | 83,577,825 |
FHLB advances | 14,500,000 | 24,000,000 |
Level 2 | Approximate fair value | ||
Financial assets: | ||
Loans receivable, net | 71,198,000 | 63,467,000 |
Financial liabilities: | ||
Deposits | 91,165,000 | 84,311,000 |
FHLB advances | $ 14,463,000 | $ 23,897,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Commitments to extend credit - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheets risks, liability | $ 899,387 | $ 769,169 |
Off-balance sheet risks, expiration period, liability | 1 year | 1 year |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 3.25% | 3.25% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 6.50% | 6.50% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Unrealized holding (losses) gains on securities available-for-sale | $ (593,059) | $ (1,113,902) |
Tax impact | 134,113 | 274,549 |
Accumulated other comprehensive income (loss) | $ (458,946) | $ (839,353) |