Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 25, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CFBI | ||
Entity Registrant Name | Community First Bancshares, Inc. | ||
Entity Central Index Key | 0001691507 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 7,557,848 | ||
Entity Public Float | $ 31.3 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Voluntary Filers | No | ||
Entity File Number | 001-38074 | ||
Entity Tax Identification Number | 82-1147778 | ||
Entity Address, Address Line One | 3175 Highway 278 | ||
Entity Address, City or Town | Covington | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30014 | ||
City Area Code | 770 | ||
Local Phone Number | 786-7088 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Entity Incorporation, State or Country Code | X1 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | 1. Portions of the Proxy Statement for the 2020 Annual Meeting of Stockholders. (Part III) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Assets | |||
Cash and due from banks, including reserve requirement of $1,523, $1,834 and $1,889 at December 31, 2019, 2018 and September 30, 2018, respectively | $ 3,965,000 | $ 3,817,000 | $ 4,428,000 |
Interest-earning deposits in other depository institutions | 44,152,000 | 33,212,000 | 36,368,000 |
Cash and cash equivalents | 48,117,000 | 37,029,000 | 40,796,000 |
Investment securities held-to-maturity (estimated fair values of $993 and $990) at December 31, 2018 and September 30, 2018, respectively | 1,000,000 | 1,000,000 | |
Investment securities available-for-sale | 3,818,000 | 21,145,000 | 21,360,000 |
Federal Home Loan Bank stock | 278,000 | 580,000 | 580,000 |
Loans, net | 247,956,000 | 227,424,000 | 222,485,000 |
Other real estate owned | 140,000 | 508,000 | 67,000 |
Premises and equipment, net | 8,513,000 | 8,896,000 | 9,040,000 |
Bank owned life insurance | 7,462,000 | 7,251,000 | 7,195,000 |
Accrued interest receivable and other assets | 3,010,000 | 3,862,000 | 3,461,000 |
Total assets | 319,294,000 | 307,695,000 | 305,984,000 |
Liabilities : | |||
Savings accounts | 22,691,000 | 24,511,000 | 24,508,000 |
Interest bearing checking | 47,324,000 | 53,752,000 | 53,244,000 |
Market rate checking | 33,380,000 | 24,936,000 | 23,140,000 |
Non-interest bearing checking | 29,549,000 | 28,472,000 | 29,797,000 |
Certificate of deposits | 105,237,000 | 87,510,000 | 85,698,000 |
Total deposits | 238,181,000 | 219,181,000 | 216,387,000 |
Federal Home Loan Bank advances | 0 | 7,570,000 | 7,570,000 |
Accrued interest payable and other liabilities | 3,946,000 | 4,546,000 | 5,644,000 |
Total liabilities | 242,127,000 | 231,297,000 | 229,601,000 |
Commitments | |||
Stockholders' equity: | |||
Common stock (par value $0.01 per share, 19,000,000 shares authorized, 7,671,224 issued and 7,557,848 outstanding at December 31, 2019, 7,538,250 issued and 7,478,992 outstanding at December 31, 2018 and 7,538,250 issued and 7,513,937 outstanding at September 30, 2018) | 77,000 | 75,000 | 75,000 |
Preferred stock (1,000,000 shares authorized, no shares outstanding) | |||
Additional paid in capital | 33,358,000 | 33,078,000 | 33,075,000 |
Treasury stock, 113,376 shares, 59,258 shares and 24,313 shares at December 31, 2019, 2018, and September 30, 2018, respectively, at cost | (1,268,000) | (668,000) | (248,000) |
Unearned ESOP shares | (2,571,000) | (2,689,000) | (2,719,000) |
Retained earnings | 47,562,000 | 47,043,000 | 46,895,000 |
Accumulated other comprehensive income (loss) | 9,000 | (441,000) | (695,000) |
Total stockholders' equity | 77,167,000 | 76,398,000 | 76,383,000 |
Total liabilities and stockholders' equity | $ 319,294,000 | $ 307,695,000 | $ 305,984,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Statement Of Financial Position [Abstract] | |||
Cash and due from banks, reserve requirement | $ 1,523 | $ 1,834 | $ 1,889 |
Investment securities held-to-maturity, estimated fair value | $ 993 | $ 990 | |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 19,000,000 | 19,000,000 | 19,000,000 |
Common stock, shares issued | 7,671,224 | 7,538,250 | 7,538,250 |
Common stock, shares outstanding | 7,557,848 | 7,478,992 | 7,513,937 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Treasury stock shares, at cost | 113,376 | 59,258 | 24,313 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Interest income: | |||
Loans, including fees | $ 3,248 | $ 14,022 | $ 13,301 |
Investment securities, including dividends | 144 | 356 | 573 |
Interest-earning deposits | 200 | 619 | 418 |
Total interest income | 3,592 | 14,997 | 14,292 |
Interest expense: | |||
Deposits | 468 | 2,286 | 1,420 |
Borrowings | 38 | 26 | 136 |
Total interest expense | 506 | 2,312 | 1,556 |
Net interest income before provision for loan losses | 3,086 | 12,685 | 12,736 |
Provision for loan losses | 500 | ||
Net interest income after provision for loan losses | 3,086 | 12,685 | 12,236 |
Non-interest income: | |||
Service charges on deposit accounts | 199 | 922 | 727 |
Small Business Administration (SBA) loan fees | 2 | 65 | 586 |
Gain on sales of investment securities available-for-sale | 0 | 147 | 0 |
Other | 115 | 511 | 595 |
Total non-interest income | 316 | 1,645 | 1,908 |
Non-interest expenses: | |||
Salaries and employee benefits | 1,732 | 7,254 | 6,585 |
Deferred compensation | 55 | 236 | 212 |
Occupancy | 474 | 1,830 | 1,706 |
Advertising | 38 | 147 | 177 |
Data processing | 225 | 1,577 | 891 |
Other real estate owned | 42 | 23 | 91 |
Net gain on sale of other real estate owned | (4) | (21) | (11) |
Legal and accounting | 235 | 1,213 | 1,091 |
Organizational dues and subscriptions | 83 | 294 | 307 |
Director compensation | 48 | 192 | 227 |
Federal deposit insurance premiums | 16 | 48 | 65 |
Other | 267 | 1,211 | 1,149 |
Total non-interest expenses | 3,211 | 14,004 | 12,490 |
Income before income taxes | 191 | 326 | 1,654 |
Income tax benefit (expense) | (43) | 29 | (1,205) |
Net income (loss) | $ 148 | $ 355 | $ 449 |
Basic and diluted earnings per share | $ 0.02 | $ 0.05 | $ 0.06 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 148 | $ 355 | $ 449 |
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on available for sale securities, net of taxes of $196, $89 and $(274) | 254 | 559 | (752) |
Reclassification adjustment for gain included in net income, net of taxes of $(38) | (109) | ||
Total other comprehensive income (loss) | 254 | 450 | (752) |
Total comprehensive income (loss) | $ 402 | $ 805 | $ (303) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized (loss) gain on available for sale securities, tax | $ 89 | $ 196 | $ (274) |
Reclassification adjustment from AOCI for sale of securities, tax expense | $ (38) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Treasury Stock | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Sep. 30, 2017 | $ 76,796 | $ 75 | $ 33,055 | $ (2,837) | $ 46,446 | $ 57 | |
ESOP loan payment and release of ESOP shares | 138 | 20 | 118 | ||||
Purchase of treasury stock | (248) | $ (248) | |||||
Change in unrealized gain on investment securities available-for-sale | (752) | (752) | |||||
Net income | 449 | 449 | |||||
Ending balance at Sep. 30, 2018 | 76,383 | 75 | 33,075 | (248) | (2,719) | 46,895 | (695) |
ESOP loan payment and release of ESOP shares | 33 | 3 | 30 | ||||
Purchase of treasury stock | (420) | (420) | |||||
Change in unrealized gain on investment securities available-for-sale | 254 | 254 | |||||
Net income | 148 | 148 | |||||
Ending balance at Dec. 31, 2018 | 76,398 | 75 | 33,078 | (668) | (2,689) | 47,043 | (441) |
Issuance of restricted stock awards | 179 | 2 | 177 | ||||
ESOP loan payment and release of ESOP shares | 122 | 4 | 118 | ||||
Stock based compensation | 99 | 99 | |||||
Purchase of treasury stock | (600) | (600) | |||||
Change in unrealized gain on investment securities available-for-sale | 450 | 450 | |||||
ASC 606 adoption adjustment, net of tax ($57) | 164 | 164 | |||||
Net income | 355 | 355 | |||||
Ending balance at Dec. 31, 2019 | $ 77,167 | $ 77 | $ 33,358 | $ (1,268) | $ (2,571) | $ 47,562 | $ 9 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
ASC 606 adoption adjustment, tax | $ 57 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 148,000 | $ 355,000 | $ 449,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 0 | 0 | 500,000 |
Depreciation and amortization | 182,000 | 885,000 | 909,000 |
Stock based compensation expense | 0 | 278,000 | 0 |
Deferred income tax | 33,000 | 145,000 | 1,436,000 |
ESOP expense | 33,000 | 122,000 | 138,000 |
Net gain on sale of investment securities available-for-sale | 0 | (147,000) | 0 |
Net gain on sale of other real estate owned | (4,000) | (21,000) | (11,000) |
Originations of loans held for sale | 0 | 0 | (1,183,000) |
Increase in cash surrender value of life insurance | (56,000) | (211,000) | (195,000) |
Proceeds from sales of loans held for sale | 0 | 0 | 1,300,000 |
Writedown on other real estate | 0 | 117,000 | 0 |
Change in: | |||
Accrued interest receivable and other assets | (523,000) | 549,000 | (137,000) |
Accrued interest payable and other liabilities | (1,098,000) | (436,000) | (762,000) |
Net cash provided by (used in) operating activities | (1,285,000) | 1,636,000 | 2,444,000 |
Cash flows from investing activities: | |||
Purchases of premises and equipment | 0 | (377,000) | (1,288,000) |
Proceeds from disposal of premises and equipment | 11,000 | 0 | 0 |
Purchases of investment securities available-for-sale | 0 | 0 | (10,318,000) |
Proceeds from the sale of investment securities available-for-sale | 0 | 16,361,000 | 0 |
Proceeds from paydowns of investment securities available-for-sale | 509,000 | 1,596,000 | 2,070,000 |
Proceeds from maturity of investment securities held-to-maturity | 0 | 1,000,000 | 0 |
Purchases of Federal Home Loan Bank stock | 0 | (232,000) | (577,000) |
Proceeds from sales of Federal Home Loan Bank stock | (5,447,000) | 534,000 | 213,000 |
Net change in loans | 0 | (20,768,000) | (9,911,000) |
Purchase of bank owned life insurance | 0 | 0 | (7,000,000) |
Proceeds from sales of other real estate owned | 71,000 | 508,000 | 124,000 |
Net cash used in investing activities | (4,856,000) | (1,378,000) | (26,687,000) |
Cash flows from financing activities: | |||
Net change in deposits | 2,794,000 | 19,000,000 | 21,774,000 |
Proceeds from FHLB advances | 0 | 0 | 7,570,000 |
Repayment of FHLB advances | 0 | (7,570,000) | 0 |
Purchase of treasury stock | (420,000) | (600,000) | (248,000) |
Net cash provided by financing activities | 2,374,000 | 10,830,000 | 29,096,000 |
Net change in cash and cash equivalents | (3,767,000) | 11,088,000 | 4,853,000 |
Cash and cash equivalents at beginning of period | 40,796,000 | 37,029,000 | 35,943,000 |
Cash and cash equivalents at end of period | 37,029,000 | 48,117,000 | 40,796,000 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 511,000 | 2,262,000 | 1,528,000 |
Cash paid for income taxes | 0 | 90,000 | 675,000 |
Supplemental disclosures of noncash investing activities: | |||
Other real estate owned acquired through foreclosures | 508,000 | 236,000 | 119,000 |
Change in unrealized gain (loss) on investment securities available-for-sale, net of tax | $ 254,000 | $ 450,000 | $ (752,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Nature of Operations Community First Bancshares, Inc. is a savings and loan holding company headquartered in Covington, Georgia. The Company has one operating subsidiary, Newton Federal Bank (the “Bank”), conducting banking activities primarily in Newton County, Georgia and surrounding counties. The main emphasis of the Bank historically has been providing mortgage loans in its primary lending area. It offers such customary banking services as consumer and commercial checking accounts, savings accounts, certificates of deposit, mortgage, commercial and consumer loans, money transfers and a variety of other banking services. The Company was formed to serve as the mid-tier holding company for the Bank upon the completion of the mutual holding company reorganization of the Bank. On October 25, 2018, both the Company and the Bank changed their fiscal year end from September 30 to December 31. This change brought the Company and the Bank in line with industry standards and improved accounting and reporting efficiencies by making the fiscal year-end and the calendar year-end the same. As a result of the change in fiscal year, the Company filed a Transition Report on Form 10-Q covering this transition period from October 1, 2018 to December 31, 2018. Basis of Presentation The accounting principles followed by the Company and the methods of applying these standards and principles conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with or in lieu of foreclosure on loans, and valuation allowances associated with deferred tax assets, the recognition of which are based on future taxable income. Impaired loans and foreclosed real estate properties are carried at fair value less estimated selling costs, the determination of which requires significant assumptions, estimates and judgments. Fair values for foreclosed real estate properties and impaired loans collateralized by real estate are principally based on independent appraised values. Fair value is defined by GAAP as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. GAAP further defines an orderly transaction as 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. An orderly transaction is not a forced transaction like a forced liquidation or distressed sale. Basic and diluted earnings per share for 2019 was $0.05. The net earnings for this period was $355,000 and the weighted average common shares outstanding were 7,515,482. Basic and diluted earnings per share for the three months ended December 31, 2018 was $0.02. The net earnings for this period was $148,000 and the weighted average common shares outstanding were 7,496,465. Basic and diluted earnings per share for the year ended September 30, 2018 was $0.06. The net earnings for this period was $449,000 and the weighted average common shares outstanding were 7,537,305. Emerging Growth Company Status The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Company is an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies. An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the Company is first required to file a registration statement. The Company has elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 provides certain targeted improvements to align lessor accounting with the lessee accounting model. It requires lessees to recognize the assets and liabilities on their balance sheet for the rights and obligations created by most leases and continue to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows arising from leases. For emerging growth companies, this update will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company adopted ASU 2016-02 for the fiscal year beginning January 1, 2020. The adoption of this ASU is not expected to have a material effect on the Company’s financial position, results of operations or cash flows. In April 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2019-04 (“ASU 2019-04”), Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 includes technical corrections relating to scope, held to maturity disclosures, measurement alternative and remeasurement of equity securities. The effective date is for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a material effect on the Company’s financial position, result of operations or cash flows. Accounting Standards Update 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), is intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down. The Company selected a third-party vendor to provide allowance for loan loss software as well as advisory services in developing a new methodology that would be compliant with ASU 2016-13, and is working with the approved third-party vendor to develop the CECL model and evaluate its impact. ASU 2016-13 was originally to become effective for the Company for interim and annual periods beginning after December 15, 2019. In November 2019, the FASB issued Accounting Standards Update 2019 – 10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates (“ASU 2019–10”). ASU 2019-10 amends the effective date for certain entities, including the Company, for ASU 2016-13, Financial Instruments – Credit Losses. Because the Company is a smaller reporting company, ASU 2016-13 is now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 enhances and simplifies certain aspects of income tax accounting guidance related to hybrid tax regimes, interim period accounting for enacted changes in tax law, ownership changes in investments, intraperiod tax allocations and tax basis step-up in goodwill. It is effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a material effect on the Company’s financial position, result of operations or cash flows. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks and interest-earning deposits in other depository institutions. Investment Securities The Company classifies its investment securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities for which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held-to-maturity are classified as available-for-sale. Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Transfers of securities between categories are recorded at fair value at the date of transfer. Management evaluates investment securities for other-than-temporary impairment on an annual basis. A decline in the market value of any held-to-maturity investment below cost that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related. The decline in value attributed to non-credit related factors is recognized in other comprehensive income and a new cost basis in the security is established. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield. Realized gains and losses for securities classified as held-to-maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold. FHLB Stock The Federal Home Loan Bank (“FHLB”) stock is an investment that does not have a readily determinable fair value and is carried at cost. Loans, Loan Fees and Interest Income on Loans Loans are stated at the principal amount outstanding, net of the allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts that the borrower’s financial condition is such that collection of interest is doubtful. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is charged to interest income on loans. Generally, payments on nonaccrual loans are applied first to principal. Interest income is recorded after principal has been satisfied and as payments are received. Loan fees, net of certain origination costs, are deferred and amortized over the lives of the respective loans as an adjustment to the yield. A loan is impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price, or at the fair value of the collateral of the loan if the loan is collateral dependent. Estimated impairment losses for collateral dependent loans are set up as specific reserves. Interest income on impaired loans is recognized using the cash-basis method of accounting during the time the loans are impaired. Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collection of the principal is unlikely. The allowance represents an amount, which in management’s judgment, will be adequate to absorb probable losses on existing loans that may become uncollectible. Commercial (secured by real estate): Commercial real estate loans are dependent on the industries tied to these loans. Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, small retail shopping facilities and various special purpose properties, including hotels and restaurants. Financial information is obtained from the borrowers and/or the individual project to evaluate cash flows sufficiency to service debt and is periodically updated during the life of the loan. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. Commercial and industrial: Commercial and industrial loans are primarily for working capital, physical asset expansion, asset acquisition loans and other. These loans are made based primarily on historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Financial information is obtained from the borrowers to evaluate cash flows sufficiency to service debt and are periodically updated during the life of the loan. Construction, land and acquisition and development: Construction, land and acquisition and development loans are secured by vacant land and/or property that are in the process of improvement, including (a) land development preparatory to erecting vertical improvements or (b) the onsite construction of industrial, commercial, residential, or farm buildings. Repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. In the event a loan is made on property that is not yet improved for the planned development, there is the risk that necessary approvals will not be granted or will be delayed. Construction loans also run the risk that improvements will not be completed on time or in accordance with specifications and projected costs. Residential mortgage 1-4 family: Residential real estate loans are affected by the local residential real estate market, the local economy, and, for variable rate mortgages, movement in indices tied to these loans. At the time of origination, the Company evaluates the borrower's repayment ability through a review of debt to income and credit scores. Appraisals are obtained to support the loan amount. Financial information is obtained from the borrowers and/or the individual project to evaluate cash flows sufficiency to service debt at the time of origination. Consumer installment: Consumer and other loans may take the form of auto loans, installment loans, demand loans, or single payment loans and are extended to individuals for household, family, and other personal expenditures. At the time of origination, the Company evaluates the borrower's repayment ability through a review of debt to income and credit scores. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the probability of collection of loans. These evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, overall portfolio quality, and review of specific problem loans. Management uses an external independent loan reviewer to challenge and corroborate its loan gradings and to provide additional analysis in determining the adequacy of the allowance for loan losses and necessary provisions to the allowance. Management believes the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses, and as a result of these reviews the Bank may have to adjust or make additions to the allowance for loan losses as a part of management’s ongoing evaluation of its adequacy. Other Real Estate Owned Other real estate owned includes real estate acquired through foreclosure. Each other real estate property is initially recorded at its fair value less estimated costs to sell and is subsequently carried at fair value less estimated costs to sell. All foreclosed properties are actively marketed for sale. Fair value is principally based on independent appraisals performed by local credentialed appraisers. Any excess of the carrying value of the related loan over the fair value of the real estate at the date of foreclosure is charged against the allowance for loan losses. Properties in other real estate are re-evaluated annually. Any expense incurred in connection with holding such real estate or resulting from any writedowns in value subsequent to foreclosure is included in noninterest expense. When the other real estate property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds and the carrying amount of the property. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in earnings for the period. The cost of maintenance and repairs that do not improve or extend the useful life of the respective asset is charged to earnings as incurred, whereas significant renewals and improvements are capitalized. The range of estimated useful lives for premises and equipment are as follows: Equipment and furniture 3 - 10 years Buildings 40 years Automobile 5 years Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key executives and members of management. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other changes or other amounts due that are probable at settlement. Income Taxes The Company uses the liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Additionally, this method requires the recognition of future tax benefits, such as net operating loss carryforwards, to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realization of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. The Company currently evaluates income tax positions judged to be uncertain. A loss contingency reserve is accrued if it is probable that the tax position will be challenged, it is probable that the future resolution of the challenge will confirm that a loss has been incurred, and the amount of such loss can be reasonably estimated. Revenue Recognition As of January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method. Disclosures of revenue from contracts with customers for periods beginning after January 1, 2019 are presented under ASC Topic 606 and have not materially changed from the prior year amounts. This update prescribes the process related to the recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 excludes revenue streams relating to loans and investment securities, which are the major source of revenue for the Company, from its scope. As a result, the adoption of the guidance had no material impact on the measurement or recognition of revenue, however, as of January 1, 2019, the Company recognized all prior period other real estate owned deferred gains with a corresponding increase to the opening balance of stockholders’ equity of approximately $164,000 net of tax of $57,000 since all prior period sales qualified for full recognition of the gains in accordance with the new guidance. Consistent with this guidance, the Company recognizes noninterest income within the scope of this guidance as services are transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Other types of revenue contracts, the income from which is included in non-interest income, that are within the scope of ASU 2014-09 are: Service charges on deposit accounts: The deposit contract obligates the Company to serve as a custodian of the customer’s deposited funds and is generally terminable at will by either party. The contract permits the customer to access the funds on deposit and request additional services for which the Company earns a fee, including NSF and analysis charges, related to the deposit account. Income for deposit accounts is recognized over the statement cycle period (typically on a monthly basis) or at the time the service is provided, if additional services are requested. Small Business Administration (SBA) loan fees: Origination fees on SBA loans are recognized into income up to the amount of the cost of making the loan as is done with other loans. The remainder is deferred and taken into income over the life of the loan. A portion of proceeds from the sale of SBA loans is taken into income while the remainder is deferred over the life of the loan. ATM fee income: A contract between the Company, as a card-issuing bank, and its customers whereby the Company receives a transaction fee from the merchant’s bank whenever a customer uses a debit or credit card to make a purchase. These fees are earned as the service is provided (i.e., when the customer uses a debit or ATM card). Other non-interest income: Other non-interest income includes several items, such as wire transfer income, check cashing fees, the increase in cash surrender value of life insurance and safe deposit box rental fees. This income is generally recognized at the time the service is provided and/or the income is earned. |
Transition Period
Transition Period | 12 Months Ended |
Dec. 31, 2019 | |
Transition Period [Abstract] | |
Transition Period | (2) Transition Period On October 25, 2018, the Board of Directors of the Company authorized a change in the Company’s fiscal year end from September 30th to December 31st. Accordingly, the Company is presenting required audited financial statements for the 3 month period ended December 31, 2018 as part of its transitional reporting. For the Three Months Ended December 31, 2018 2017 (In thousands) Selected Operating Data: Interest income $ 3,592 $ 3,328 Interest expense 506 340 Net interest income 3,086 2,988 Provision for loan losses — — Net interest income after provision for loan losses 3,086 2,988 Non-interest income 316 278 Non-interest expenses 3,211 3,179 Income before income tax expense 191 87 Income tax expense 43 1,048 Net income (loss) $ 148 $ (961 ) Earnings (loss) per share (basic and diluted) $ 0.02 $ (0.13 ) |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | ( 3 ) Investment Securities Investment Securities Held-to-Maturity Investment securities held-to-maturity at December 31, 2018 and September 30, 2018 are as follows: (in thousands) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government sponsored enterprises $ 1,000 — (7 ) 993 September 30, 2018 U.S. Government sponsored enterprises $ 1,000 0 (10 ) 990 There were no sales of securities held-to-maturity during 2019, the three months ended December 31, 2018 or the year ended September 30, 2018. The one held-to-maturity security with a carrying value of approximately $1.0 million was pledged to secure public deposits at December 31, 2018 and September 30, 2018 and matured in 2019. Investment Securities Available-for-Sale Investment securities available-for-sale at December 31, 2019, 2018 and September 30, 2018 are as follows: (in thousands) Amortized Gross Unrealized Gross Unrealized Estimated December 31, 2019 Cost Gains Losses Fair Value U.S. Government sponsored enterprises $ 501 — (1 ) 500 Government agency mortgage-backed securities 3,305 13 — 3,318 Total $ 3,806 13 (1 ) 3,818 December 31, 2018 Municipal securities - tax exempt $ 5,670 12 (73 ) 5,609 Municipal securities - taxable 3,119 — (132 ) 2,987 U.S. Government sponsored enterprises 501 — (10 ) 491 Government agency mortgage-backed securities 12,451 — (393 ) 12,058 Total $ 21,741 12 (608 ) 21,145 September 30, 2018 Municipal securities - tax exempt 5,687 1 (167 ) 5,521 Municipal securities - taxable 3,122 — (197 ) 2,925 U.S. Government sponsored enterprises 502 — (14 ) 488 Government agency mortgage-backed securities 12,988 — (562 ) 12,426 Total $ 22,299 1 (940 ) 21,360 There was one security and 37 securities in an unrealized loss position as of December 31, 2019 and December 31, 2018, respectively, for less than 12 months. There was one security and four securities in an unrealized loss position greater than 12 months as of December 31, 2019 and December 31, 2018, respectively. The unrealized losses on the debt securities arose due to changing interest rates and market conditions and are considered to be temporary because of acceptable investment grades where the repayment sources of principal and interest are backed by U.S. Government sponsored agencies. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis which may be at maturity. The amortized cost and estimated fair value of investment securities available-for-sale at December 31, 2019 and 2018, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands) December 31, 2019 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Municipal securities - tax exempt Within 1 year $ — — $ — — 1 to 5 years — — 489 491 5 to 10 years — — 5,181 5,118 Greater than 10 years — — — — — — 5,670 5,609 Municipal securities - taxable Within 1 year — — — — 1 to 5 years — — — — 5 to 10 years — — 1,121 1,092 Greater than 10 years — — 1,998 1,895 — — 3,119 2,987 U.S. government sponsored enterprises securities Within 1 year 501 500 — — 1 to 5 years — — 501 491 5 to 10 years — — — — Greater than 10 years — — — — 501 500 501 491 Government agency mortgage-backed securities 3,305 3,318 12,451 12,058 Total $ 3,806 3,818 $ 21,741 21,145 Proceeds from sales of investment securities available-for-sale during 2019 totaled approximately $16.4 million. Gross gains and gross losses of $213,000 and $66,000, respectively were realized on the sales during 2019. There were no sales of securities available-for-sale during the transition period of the three months ended December 31, 2018 or the year ended September 30, 2018. Available-for-sale securities with a carrying value of approximately $3.8 million, $1.8 million and $1.8 million were pledged to secure public deposits at December 31, 2019, 2018 and September 30, 2018, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | ( 4 ) Loans and Allowance for Loan Losses Major classifications of loans, by collateral code, at December 31, 2019, 2018 and September 30, 2018 are summarized as follows: (in thousands) December 31, 2019 December 31, 2018 September 30, 2018 Commercial (secured by real estate) $ 54,488 45,509 39,768 Commercial and industrial 28,613 27,408 28,375 Construction, land and acquisition & development 20,502 14,015 20,188 Residential mortgage 1-4 family 116,843 139,919 135,508 Consumer installment 31,644 4,595 2,555 252,090 231,446 226,394 Less allowance for loan losses (4,134 ) (4,022 ) (3,909 ) $ 247,956 $ 227,424 222,485 The Bank grants loans and extensions of credit to individuals and a variety of firms and corporations located primarily in Newton County and other surrounding Georgia counties. A substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market. Qualifying loans in the amount of approximately $115.4 million, $125.0 million and $137.5 million were pledged to secure the line of credit from the FHLB at December 31, 2019, 2018 and September 30, 2018, respectively. During the last quarter of the year ended September 30, 2018 the Bank sold approximately 70 loans. These loans had a balance of $5.0 million and the Bank received $3.7 million for these loans. This resulted in an increase in both charge-offs and recoveries. This transaction was done in an effort to remove some non-performing loans, which resulted in an improvement in classified assets and past due ratios for the Bank. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019, 2018 and September 30, 2018: (in thousands) December 31, 2019 Commercial (Secured by Real Estate) Commercial and Industrial Construction, Land and Acquisition & Development Residential Mortgage Consumer Installment Unallocated Total Allowance for loan losses: Beginning balance $ 1,619 1,520 108 641 127 7 4,022 Provision (88 ) 53 45 (385 ) 375 — — Charge-offs — (163 ) — (254 ) (36 ) — (453 ) Recoveries 130 68 — 367 — — 565 Ending balance $ 1,661 1,478 153 369 466 7 4,134 Ending allowance attributable to loans: Individually evaluated for impairment $ 1 — — 5 — — 6 Collectively evaluated for impairment 1,660 1,478 153 364 466 7 4,128 Total ending allowance $ 1,661 $ 1,478 $ 153 $ 369 $ 466 $ 7 $ 4,134 Loans: Individually evaluated for impairment $ 1,539 395 — 4,161 - — 6,095 Collectively evaluated for impairment 52,949 28,218 20,502 112,682 31,644 — 245,995 Total loans $ 54,488 28,613 20,502 116,843 31,644 — 252,090 December 31, 2018 Allowance for loan losses: Beginning balance $ 1,312 1,670 178 687 61 1 3,909 Provision 274 (150 ) (70 ) (128 ) 68 6 — Charge-offs — (14 ) — (11 ) (2 ) — (27 ) Recoveries 33 14 — 93 — — 140 Ending balance $ 1,619 1,520 108 641 127 7 4,022 Ending allowance attributable to loans: Individually evaluated for impairment $ 3 — — 2 — — 5 Collectively evaluated for impairment 1,616 1,520 108 639 127 7 4,017 Total ending allowance $ 1,619 $ 1,520 $ 108 $ 641 $ 127 $ 7 $ 4,022 Loans: Individually evaluated for impairment $ 1,926 27 — 3,598 1 — 5,552 Collectively evaluated for impairment 43,583 27,381 14,015 136,321 4,594 — 225,894 Total loans $ 45,509 27,408 14,015 139,919 4,595 — 231,446 September 30, 2018 Allowance for loan losses: Beginning balance $ 1,548 863 349 1,704 79 8 4,551 Provision (402 ) 1,961 (188 ) (879 ) 15 (7 ) 500 Charge-offs (6 ) (1,275 ) — (1,425 ) (33 ) — (2,739 ) Recoveries 172 121 17 1,287 - — 1,597 Ending balance $ 1,312 1,670 178 687 61 1 3,909 Ending allowance attributable to loans: Individually evaluated for impairment $ 3 29 — 7 — — 39 Collectively evaluated for impairment 1,309 1,641 178 680 61 1 3,870 Total ending allowance $ 1,312 1,670 178 687 61 1 3,909 Loans: Individually evaluated for impairment $ 1,858 29 — 5,429 6 — 7,322 Collectively evaluated for impairment 37,910 28,346 20,188 130,079 2,549 — 219,072 Total loans $ 39,768 28,375 20,188 135,508 2,555 — 226,394 The Bank individually evaluates all loans for impairment that are on nonaccrual status or are rated substandard (as described below). Additionally, all troubled debt restructurings are evaluated for impairment. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the contractual terms of the loan will not be collected. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Interest payments received on impaired loans are applied as a reduction of the outstanding principal balance. Impaired loans at December 31, 2019, 2018 and September 30, 2018 were as follows: (in thousands) December 31, 2019 Recorded Investment Unpaid Principal Balance Allocated Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial (secured by real estate) $ 26 26 — 40 9 Commercial and industrial 395 527 — 463 29 Construction, land and acquisition & development — — — — — Residential mortgage 3,749 3,878 — 3,912 153 Consumer installment — — — — — 4,170 4,431 — 4,415 190 With an allowance recorded: Commercial (secured by real estate) 1,513 1,513 1 1,539 94 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 412 412 5 405 — Consumer installment — — — — 24 1,925 1,925 6 1,944 118 Total impaired loans $ 6,095 6,356 6 6,359 307 December 31, 2018 With no related allowance recorded: Commercial (secured by real estate) $ 167 1,023 — 185 6 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 3,458 4,265 — 3,287 37 Consumer installment 1 1 — 6 — 3,626 5,289 — 3,478 43 With an allowance recorded: Commercial (secured by real estate) 1,759 1,759 3 1,777 27 Commercial and industrial 27 27 — 14 — Construction, land and acquisition & development — — — — — Residential mortgage 140 139 2 141 2 Consumer installment — — — — — 1,926 1,925 5 1,932 29 Total impaired loans $ 5,552 7,214 5 5,410 72 September 30, 2018 With no related allowance recorded: Commercial (secured by real estate) $ 87 1,152 — 106 42 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 4,507 5,430 — 4,354 153 Consumer installment — — — — — 4,594 6,582 — 4,460 195 With an allowance recorded: Commercial (secured by real estate) 1,771 1,771 3 1,790 — Commercial and industrial 29 29 29 15 110 Construction, land and acquisition & development — — — — — Residential mortgage 922 922 7 931 — Consumer installment 6 6 — — 51 2,728 2,728 39 2,736 161 Total impaired loans $ 7,322 9,310 39 7,196 356 The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of December 31, 2019, 2018 and September 30, 2018 by class of loans: (in thousands) December 31, 2019 30 -59 Days Past Due 60- 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Nonaccrual Commercial (secured by real estate) 114 24 10 148 54,340 54,488 246 Commercial and industrial 1,270 30 395 1,695 26,918 28,613 395 Construction, land and acquisition & development — — — — 20,502 20,502 — Residential mortgage 3,087 2,040 643 5,770 111,073 116,843 1,912 Consumer installment 58 34 — 92 31,552 31,644 14 Total $ 4,529 2,128 1,048 7,705 244,385 252,090 2,567 December 31, 2018 Commercial (secured by real estate) $ — — — 45,509 45,509 56 Commercial and industrial — — — — 27,408 27,408 27 Construction, land and acquisition & development — — — — 14,015 14,015 — Residential mortgage 196 1,039 228 1,463 138,456 139,919 1,744 Consumer installment 9 1 1 11 4,584 4,595 1 Total $ 205 1,040 229 1,474 229,972 231,446 1,828 September 30, 2018 Commercial (secured by real estate) $ 283 $ 3 — 286 39,482 39,768 70 Commercial and industrial — — — — 28,375 28,375 29 Construction, land and acquisition & development — 257 — 257 19,931 20,188 — Residential mortgage 167 980 1,115 2,262 133,246 135,508 2,089 Consumer installment — 30 7 37 2,518 2,555 7 Total $ 450 1,270 1,122 2,842 223,552 226,394 2,195 There were no loans past due over 90 days and still accruing interest as of December 31, 2019, 2018 and September 30, 2018. The table below presents information on troubled debt restructurings including the number of loan contracts restructured and the pre- and post-modification recorded investment that have occurred during the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018. Also included in the table are the number of contracts and the recorded investment for those trouble debt restructurings that have subsequently defaulted during the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018: (in thousands) Pre- Modification Outstanding Post- Modification Outstanding Troubled Debt Restructurings that have Subsequently Defaulted December 31, 2019 Number of Contracts Recorded Investment Recorded Investment Number of Contracts Recorded Investment Residential mortgage 1 $ 250 250 — — December 31, 2018 Residential mortgage 1 $ 262 262 — — September 30, 2018 Residential mortgage 1 $ 30 30 — — The Bank has allocated an allowance for loan losses of approximately $6,000, $5,000 and $36,000 to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2019, 2018 and September 30, 2018, respectively. The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Bank uses the following definitions for its risk ratings: Special Mention. Loans have potential weaknesses that may, if not corrected, weaken or inadequately protect the Bank's credit position at some future date. Weaknesses are generally the result of deviation from prudent lending practices, such as over advances on collateral. Credits in this category should, within a 12 month period, move to Pass if improved or drop to Substandard if poor trends continue. Substandard. Inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans have a well-defined weakness or weaknesses such as primary source of repayment is gone or severely impaired or cash flow is insufficient to reduce debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans have weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable. The likelihood of a loss on an asset or portion of an asset classified Doubtful is high. Loss. Loans considered uncollectible and of such little value that the continuance as a Bank asset is not warranted. This does not mean that the loan has no recovery or salvage value, but rather the asset should be charged off even though partial recovery may be possible in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of December 31, 2019, 2018 and September 30, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands) December 31, 2019 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 54,454 — 34 — 54,488 Commercial and industrial 28,204 — 409 — 28,613 Construction, land and acquisition & development 20,502 — — — 20,502 Residential mortgage 110,034 229 6,580 — 116,843 Consumer installment 31,626 — 18 — 31,644 Total $ 244,820 229 7,041 — 252,090 December 31, 2018 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 45,188 — 321 — 45,509 Commercial and industrial 27,381 — 27 — 27,408 Construction, land and acquisition & development 14,015 — — — 14,015 Residential mortgage 133,930 65 5,924 — 139,919 Consumer installment 4,553 — 42 — 4,595 Total $ 225,067 65 6,314 — 231,446 September 30, 2018 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 39,387 — 381 — 39,768 Commercial and industrial 28,346 — 29 — 28,375 Construction, land and acquisition & development 20,010 — 178 — 20,188 Residential mortgage 129,441 66 6,001 — 135,508 Consumer installment 2,493 — 62 — 2,555 Total $ 219,677 66 6,651 — 226,394 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | ( 5 ) Premises and Equipment Premises and equipment at December 31, 2019, 2018 and September 30, 2018 are summarized as follows: (in thousands) December 31, 2019 December 31, 2018 September 30, 2018 Land $ 1,416 $ 1,416 $ 1,416 Buildings 9,154 9,121 9,111 Equipment and furniture 4,712 4,896 4,847 Construction in process 2 7 25 Automobile 123 123 123 15,407 15,563 15,522 Less: Accumulated depreciation 6,894 6,667 6,482 $ 8,513 $ 8,896 $ 9,040 Depreciation expense was approximately $756,000, $184,000 and $702,000 for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018, respectively. The Company is obligated under non-cancelable operating leases for certain of its facilities and related land. At December 31, 2019, the approximate minimum annual rentals under these non-cancelable agreements with remaining terms in excess of one year are as follows: (in thousands) Years ending December 31 , 2020 $ 121 2021 86 2022 77 2023 77 2024 77 Thereafter 26 Total $ 464 Total rent expense for leased property approximated $127,000, $30,000 and $122,000 for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | ( 6 ) Deposits At December 31, 2019, contractual maturities of certificate of deposits are summarized as follows: (in thousands). 2020 $ 35,523 2021 22,448 2022 16,021 2023 10,691 2024 7,965 Thereafter 12,589 $ 105,237 At December 31, 2018, contractual maturities of certificate of deposits are summarized as follows: (in thousands). 2019 $ 26,537 2020 13,022 2021 6,657 2022 15,358 2023 10,773 Thereafter 15,163 $ 87,510 The aggregate amounts of certificates of deposit of $250,000 or more, the standard FDIC deposit insurance coverage limit per depositor, were approximately $30,482,000, $14,156,000 and $11,854,000 at December 31, 2019, 2018 and September 30, 2018, respectively. The following is a summary of interest expense on deposits for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018: (in thousands) Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Savings accounts $ 31 $ 6 $ 15 Interest bearing checking accounts 352 102 274 Market rate checking accounts 274 48 107 Certificates of deposit 1,629 312 1,024 $ 2,286 $ 468 $ 1,420 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | ( 7 ) Borrowings At December 31, 2019, 2018 and September 30, 2018, the Bank had a line of credit totaling $86.0 million, $91.0 million and $89.0 million, respectively, from the FHLB, which is reviewed annually by the FHLB. No advances were outstanding at December 31, 2019. The following advances, which require monthly or quarterly interest payments, were outstanding at December 31, 2018 and September 30, 2018: Advance Date Advance Interest Rate Maturity Rate Call Feature 10/25/2017 $ 2,710,000 1.98 % 10/26/2020 Fixed None 10/25/2017 1,250,000 1.81 % 10/25/2019 Fixed None 11/13/2017 1,190,000 1.87 % 11/13/2019 Fixed None 11/13/2017 2,420,000 2.02 % 11/13/2020 Fixed None $ 7,570,000 The Company had one FHLB letter of credit of $8.0 million, $5.0 million At December 31, 2019, 2018 and September 30, 2018 the Bank had unsecured federal funds lines of credit of $12.5 million, for which no amounts were outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 8 ) Income Taxes The components of income tax expense (benefit) for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018 are as follows: (in thousands) Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Current $ (174 ) $ 10 $ (231 ) Rate reduction adjustment — — 884 Deferred 145 33 552 $ (29 ) $ 43 $ 1,205 The difference between income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate to income before taxes for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018 Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Statutory Federal tax rate 21.00 % 21.00 % 24.25 % Pretax income at statutory rate $ 68 $ 40 $ 401 State income tax, net of federal benefit 19 21 3 Cash Surrender Value of Life Insurance (44 ) (12 ) (47 ) Permanent adjustments (12 ) (5 ) — Other (60 ) (1 ) (36 ) Tax reform deferred tax rate reduction adjustment — — 884 Actual tax expense (9)%, 23% and 73%, respectively $ (29 ) $ 43 $ 1,205 The following summarizes the sources and expected tax consequences of future deductions or income for income tax purposes which comprised the net deferred taxes at December 31, 2019, 2018 and September 30, 2018: (in thousands) Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Deferred income tax assets: Allowance for loan losses $ 1,015 $ 1,027 $ 988 Deferred compensation 814 908 923 Deferred gain on other real estate owned — 56 56 State tax credits 296 280 325 Unrealized loss on investment securities available for sale — 155 244 Other 38 14 36 Total deferred income tax assets 2,163 2,440 2,572 Deferred income tax liabilities: FHLB stock dividends — 4 4 Premises and equipment 226 183 208 Unrealized gain on investment securities available-for-sale 3 — — Other 82 98 83 Total deferred income tax liabilities 311 285 295 Net deferred income tax asset $ 1,852 $ 2,155 $ 2,277 The Company establishes a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2019, 2018 and September 30, 2018, the Company believes that it will have sufficient earnings to realize its deferred tax asset and has not provided an allowance. The Company is subject to federal income tax and income tax of state taxing authorities. The Company's federal income tax returns for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018 and its state taxing authorities income tax returns for the years ended September 30, 2016, 2017 and 2018 are open to audit under the statutes of limitations. As a result of legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017, during the quarter ended December 31, 2017, the Company revised its estimated annual effective rate to reflect a change in the federal statutory tax rate from 34.0% to 21.0%. The Tax Act made broad and complex changes to the U.S. tax code that affected the Company's fiscal year ended September 30, 2018, including reducing the U.S. federal corporate statutory tax rate to 21.0% beginning January 1, 2018, which resulted in a blended federal corporate statutory rate of 24.25% for the Company's fiscal year ended September 30, 2018, that is based on the applicable tax rates before and after the Tax Act and the number of days in the fiscal year. During the quarter ended December 31, 2017, the Company revalued the deferred tax balance to reflect the new corporate tax rate, which resulted in a decrease in net deferred tax assets of approximately $884,000. As a result, income tax expense reported for the fiscal year ended September 30, 2018, was adjusted to reflect the effects of the change in the tax law and the application of the newly enacted rates to existing deferred balances. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan | ( 9 ) Employee Stock Ownership Plan The Company sponsors an employee stock ownership plan (“ESOP”) that covers all employees who meet certain service requirements. The Company makes annual contributions to the ESOP in amounts as defined by the plan document. These contributions are used to pay debt service and purchase additional shares. Certain ESOP shares are pledged as collateral for debt. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. In April 2017, the ESOP borrowed $2,954,990 payable to the Company for the purpose of purchasing shares of the Company’s common stock. A total of 295,499 shares were purchased with the loan proceeds as part of the Company’s initial stock offering. The balance of the note payable of the ESOP was $2,686,246, $ 2,750,592 and $2,750,592 at December 31, 2019, 2018 and September 30, 2018. Because the source of the loan payments are contributions received by the ESOP from the Company, the related notes receivable is shown as a reduction of stockholders’ equity. As of December 31, 2019, 2018 and September 30, 2018, 35,400 shares 23,600 shares and 23,600 shares have been released, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | ( 10 ) Benefit Plans The Company has a profit sharing plan to provide retirement benefits for all employees. Contributions have been paid in the past to a trust fund annually by the Company in an amount determined by the Board of Directors. No contributions were made to the plan for the plan year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the plan year ended September 30, 2018 as the Board of Directors adopted an incentive program and paid cash bonuses rather than having contributions made to the profit sharing plan. In 2014, the Company added a 401(k) feature to the profit sharing plan that covers substantially all employees. Under the terms of the feature, the Company may make matching contributions to the plan and the employees can contribute up to the maximum amounts allowed by IRS guidelines. The contribution expense related to the 401(k) feature totaled $113,000, $23,000 and $93,000 for the plan year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the plan year ended September 30, 2018, respectively. The Company sponsors a deferred compensation plan for directors. Under this plan, participating directors may defer their Board fees and receive the deferred amounts plus interest upon completion of their time as a director or at their election. The cumulative deferred contributions for the directors in the plan and earnings thereon at December 31, 2019, 2018 and September 30, 2018 totaled approximately $3,188,000, $3,554,000 and $3,650,000, respectively. These amounts are included in other liabilities in the accompanying consolidated balance sheets. No contributions have been made to the plan since 2015 as the plan was frozen as of June 30, 2015. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (1 1 ) Stockholders’ Equity Prior to January 1, 1996, the Bank was permitted under the Internal Revenue Code (the “Code”) a special bad debt deduction related to additions to tax bad debt reserves established for the purpose of absorbing losses. The provisions of the Code permitted the Bank to deduct from taxable income an allowance for bad debts based on the greater of a percentage of taxable income before such deduction or actual loss experience. Retained earnings at December 31, 2019 includes approximately $3,625,000 for which no deferred Federal income tax liability has been recognized. The amounts represent an allocation of income for bad debt deductions for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses would create income for tax purposes only, which would be subject to the then current corporate income tax rate. On August 20, 1996, legislation was passed which eliminated the percentage of taxable income bad debt deduction for thrift institutions for tax years beginning after December 31, 1995. This legislation also requires a thrift to generally recapture the excess of its current tax reserves over its 1987 base year reserves whereas the base year reserves are frozen from taxation. No additional financial statement tax expense resulted from this legislation as the Bank had previously provided deferred taxes on this recaptured amount. On October 31, 2016, the Board of Directors of the Bank adopted a Plan of Reorganization from a Mutual Savings Association to a Mutual Holding Company and Stock Issuance Plan (the “Plan”). The Plan was subject to the approval of the Board of Governors of the Federal Reserve System and the affirmative vote of at least a majority of the total votes eligible to be cast by the voting members of the Bank at a special meeting. Pursuant to the Plan, in April 2017 the Bank converted to a stock savings bank and is now organized in the mutual holding company structure. The Bank issued all of its outstanding stock to a new holding company, Community First Bancshares, Inc., which sold 3,467,595 shares of common stock to the public at $10.00 per share, representing 46% of its outstanding shares of common stock. This amount included shares purchased by the Bank’s employee stock ownership plan (“ESOP”), which purchased 3.92% of the common stock of the new holding company outstanding upon the completion of the reorganization and stock issuance. Community First Bancshares, Inc. is organized as a corporation under the laws of the United States. Community First Bancshares, MHC has been organized as a mutual holding company under the laws of the United States and owns 54% of the outstanding common stock of Community First Bancshares, Inc. The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors. In August 2018, with subsequent shareholder approval, the 2018 Equity Incentive Plan was approved up to 517,123 share of common stock and up to 369,374 stock options. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Dividend yield is 0%, expected volatility is 20.35%, the risk-free interest rate is 2.41%, expected average life is 7.5 years and the weighted average per share fair value of options is $2.97. Stock options of 247,479 with a weighted average exercise price of $10.10 were granted during 2019. No options were exercised or forfeited during 2019. The weighted average remaining life of outstanding stock options at December 31, 2019, is 4.3 years and they have an aggregate intrinsic value of $0. The weighted average remaining life of exercisable stock options at December 31, 2019, is 4.3 years and they have an aggregate intrinsic value of $0. Restricted stock of 132,974 shares with a weighted average grant date fair value of $10.10 were granted during 2019. No stock has yet vested and none has been forfeited. There are 132,974 restricted shares outstanding with a weighted average grant date fair value of $10.10 at December 31, 2019. The Company recognized approximately $278,000 of stock-based compensation expense (included in salary and employee benefits on the consolidated statements of income) during 2019, associated with its common stock awards granted to directors and officers. As of December 31, 2019, there was approximately $1.8 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the remaining vesting period of approximately 4.3 years. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | (12) The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Total and Tier I Capital to Risk-Weighted Assets and of Tier I Capital to Average Assets. Management believes, as of December 31, 2019, 2018 and September 30, 2018, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2019, 2018 and September 30, 2018, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum common equity Tier 1 risk-based, total risk-based, Tier I risk-based and Tier I leverage ratios as set forth below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios for December 31, 2019, 2018 and September 30, 2018 are presented in the table below (in thousands). For Capital To Be Well Capitalized Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Common Equity Tier 1 (to Risk Weighted Assets) $ 62,349 27 % $ 10,267 4.50 % $ 14,830 6.50 % Total Capital (to Risk Weighted Assets) $ 65,217 29 % $ 18,252 8 % $ 22,816 10 % Tier I Capital (to Risk Weighted Assets) $ 62,349 27 % $ 13,689 6 % $ 18,252 8 % Tier I Capital (to Average Assets) $ 62,349 20 % $ 12,681 4 % $ 15,863 5 % As of December 31, 2018: Common Equity Tier 1 (to Risk Weighted Assets) $ 60,880 29 % $ 9,292 4.50 % $ 13,422 6.50 % Total Capital (to Risk Weighted Assets) $ 63,479 31 % $ 16,519 8 % $ 20,649 10 % Tier I Capital (to Risk Weighted Assets) $ 60,880 29 % $ 12,389 6 % $ 16,519 8 % Tier I Capital (to Average Assets) $ 60,880 20 % $ 12,291 4 % $ 15,363 5 % As of September 30, 2018: Common Equity Tier 1 (to Risk Weighted Assets) $ 60,658 30 % $ 9,155 4.50 % $ 13,223 6.50 % Total Capital (to Risk Weighted Assets) $ 63,218 31 % $ 16,275 8 % $ 20,344 10 % Tier I Capital (to Risk Weighted Assets) $ 60,658 30 % $ 12,206 6 % $ 16,275 8 % Tier I Capital (to Average Assets) $ 60,658 20 % $ 12,068 4 % $ 15,085 5 % A reconciliation of the Bank’s equity capital amounts under GAAP to tier 1 and total risk-based capital for December 31, 2019, 2018 and September 30, 2018 are presented in the table below (in thousands). December 31, 2019 December 31, 2018 September 30, 2018 Regulatory capital: Stockholders’ equity $ 62,575 60,720 60,244 Disallowed deferred taxes (226 ) 160 414 Tier 1 risk-based capital 62,349 60,880 60,658 Eligible allowance for loan losses 2,868 2,599 2,560 Total risk-based capital $ 65,217 63,479 63,218 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (1 3 ) Related Party Transactions The Company conducts transactions with its directors and executive officers, including companies in which they have beneficial interest, in the normal course of business. It is the policy of the Company that loan transactions with directors and executive officers be made on substantially the same terms as those prevailing at the time for comparable loans to other persons. The following is a summary of activity for related party loans: (in thousands). For Year Ended December 31, 2019 For Three Months Ended December 31, 2018 Beginning balance $ 1,037 $ 1,047 Loans advanced 96 3 Repayments (99 ) (13) Ending balance $ 1,034 $ 1,037 The aggregate amount of deposits from directors and executive officers and their affiliates amounted to approximately $2 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | (1 4 ) Commitments The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments could include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. In most cases, the Bank requires collateral or other security to support financial instruments with credit risk. Appropriate Contract Amount December 31, 2019 December 31, 2018 September 30, 2018 Financial instruments whose contract amounts represent credit risk: (in thousands) Commitments to extend credit $ 24,648 $ 32,140 29,444 The dollar amount and ranges of rates of commitments to fund fixed rate loans follows: (in thousands) December 31,2019 December 31,2018 September 30, 2018 Amount Interest Rate Range Amount Interest Rate Range Amount Interest Rate Range Commitments to extend credit $ 3,842 2.50%-7.75% 11,921 2.50%-9.25% 9,239 2.30%-8.25% Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank, upon extension of credit is based on management’s credit evaluation. Collateral held varies but may include unimproved and improved real estate, certificates of deposit, or personal property. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | (1 5 ) Fair Value Measurements and Disclosures The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. From time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments. Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Cash and Cash Equivalents The carrying value of cash and cash equivalents is a reasonable estimate of fair value. Investment Securities Available-for-Sale Available-for-sale securities are recorded at market value. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. Investment Securities Held-to-Maturity Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums and discounts. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. FHLB Stock The carrying value of FHLB Stock approximates fair value. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve is established within the allowance for loan losses. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with GAAP. The fair value of impaired loans is estimated using one of three methods, including collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with GAAP, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. For disclosure purposes, the fair value of fixed rate loans which are not considered impaired is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For unimpaired variable rate loans, the carrying amount is a reasonable estimate of fair value for disclosure purposes. Other Real Estate Owned Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate. Subsequently, other real estate assets are carried at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price, the Bank records the other real estate as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank records the other real estate asset as nonrecurring Level 3. Bank Owned Life Insurance The carrying value of Bank Owned Life Insurance approximates fair value. Deposits The fair value of savings accounts, interest bearing checking accounts, non-interest bearing checking accounts and market rate checking accounts is the amount payable on demand at the reporting date, while the fair value of fixed maturity certificate of deposits is estimated by discounting the future cash flows using current rates at which comparable certificates would be issued. Federal Home Loan Bank Advances Federal Home Loan Bank advances are carried at cost and the fair value is obtained from the Federal Home Loan Bank of Atlanta. Commitments to Extend Credit Commitments to extend credit are short-term and, therefore, the carrying value and the fair value are considered immaterial for disclosure. Assets Recorded at Fair Value on a Recurring Basis The Company’s only assets recorded at fair value on a recurring basis are available-for-sale securities that had a fair value of $3.8 million, $21.1 million and $21.4 million at December 31, 2019, 2018 and September 30, 2018, respectively. They are classified as Level 2. Assets Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2019, 2018 and September 30, 2018 (in thousands). December 31, 2019 Level 1 Level 2 Level 3 Total Other real estate owned $ — — 140 140 Impaired loans — — 6,089 6,089 Total assets at fair value $ — — 6,229 6,229 December 31, 2018 Level 1 Level 2 Level 3 Total Other real estate owned $ — — 508 508 Impaired loans — — 5,547 5,547 Total assets at fair value $ — — 6,055 6,055 September 30, 2018 Level 1 Level 2 Level 3 Total Other real estate owned $ — — 67 67 Impaired loans — — 7,283 7,283 Total assets at fair value $ — — 7,350 7,350 The carrying amounts and estimated fair values (in thousands) of the Company’s financial instruments at December 31, 2019, 2018 and September 30, 2018 are as follows: December 31, 2019 December 31, 2018 September 30, 2018 Carrying Estimated Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Amount Fair Value Financial assets: Cash and cash equivalents $ 48,117 48,117 37,029 37,029 40,796 40,796 Investment securities available-for-sale $ 3,818 3,818 21,145 21,145 21,360 21,360 held-to-maturity $ — — 1,000 993 1,000 990 FHLB Stock $ 278 278 580 580 580 580 Loans, net $ 247,956 219,991 227,424 198,403 222,485 188,870 Bank owned life insurance $ 7,462 7,462 7,251 7,251 7,195 7,195 Financial liabilities: Deposits $ 238,181 239,340 219,181 219,319 216,387 216,280 FHLB advances $ — — 7,570 7,656 7,570 7,706 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Condensed Parent Company Only F
Condensed Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Only Financial Information | (16) Condensed Parent Company Only Financial Information Community First Bancshares, Inc. A condensed summary of ’sfinancial information is shown. Parent Only Condensed Balance Sheets December 31, 2019 December 31, 2018 September 30, 2018 Assets Cash in bank subsidiary $ 11,302 $ 12,742 $ 13,223 Cash in banks $ 258 $ 253 $ 252 Investment in subsidiary, at underlying equity 62,574 60,720 60,245 Loan receivable - ESOP 2,686 2,751 2,751 Other assets 524 36 — Total assets $ 77,344 $ 76,502 $ 76,471 Liabilities and Stockholders' Equity Liabilities : Other liabilities $ 177 $ 104 $ 88 Total liabilities 177 104 88 Stockholders' equity: Total stockholders' equity 77,167 76,398 76,383 Total liabilities and stockholders' equity $ 77,344 $ 76,502 $ 76,471 Parent Only Condensed Statements of Income Year Ended December 31, Three Months Ended December 31, Year Ended September 30, 2019 2018 2018 Interest income: Income on ESOP loan $ 144 $ 36 $ 120 Interest on bank deposits 4 1 $ 4 Total interest income 148 37 124 Non-interest expenses: Other non-interest expense 797 90 371 Loss before income taxes (649 ) (53 ) (247 ) Income tax benefit 163 12 60 Loss before equity in undistributed earnings of Bank (486 ) (41 ) (187 ) Equity in undistributed earnings of Bank 841 189 635 Net income $ 355 $ 148 $ 449 Parent Only Condensed Statements of Cash Flows Year Ended December 31, Three Months Ended December 31, Year Ended September 30, 2019 2018 2018 Cash flows from operating activities: Net income $ 355 $ 148 $ 449 Adjustments to reconcile net income to net cash used in operating activities Proceeds from ESOP loan 209 — 190 Equity in undistributed earnings of Bank (841 ) (189 ) (635 ) Other (558 ) (19 ) (82 ) Net cash used in operating activities (835 ) (60 ) (78 ) Purchase of treasury stock (600 ) (420 ) (248 ) Net cash used in financing activities (600 ) (420 ) (248 ) Net change in cash and cash equivalents (1,435 ) (480 ) (326 ) Cash and cash equivalents at beginning of period 12,995 13,475 13,801 Cash and cash equivalents at end of period $ 11,560 $ 12,995 $ 13,475 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Subsequent Events | (17) On January 10, 2020, Community First Bancshares, Inc. and Newton Federal Bank completed their acquisition of ABB Financial Group, Inc. (“ABB”) and its wholly owned subsidiary, Affinity Bank. At the effective time of the acquisition, each outstanding share of ABB common stock was converted into the right to receive $7.50 in cash. Including consideration received by holders of options to purchase ABB common stock, the aggregate consideration paid in the transaction was approximately $40.3 million. In addition, $5.9 million of preferred stock that had been issued by ABB has been redeemed, and $1.4 million of trust preferred securities issued by a subsidiary of ABB have been acquired by Community First Bancshares, Inc. and canceled. All accrued but unpaid dividends and interest have been paid on the preferred stock and trust preferred securities. Beginning in March 2020, the United States economy began suffering adverse effects from the COVID 19 Virus Crisis ("CV19 Crisis"). As of the date of issuance of the consolidated financial statements, the Company had not yet suffered material adverse impact from the CV19 Crisis. The future impact of the CV19 Crisis on the Company cannot be reasonably estimated at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation | Basis of Presentation The accounting principles followed by the Company and the methods of applying these standards and principles conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with or in lieu of foreclosure on loans, and valuation allowances associated with deferred tax assets, the recognition of which are based on future taxable income. Impaired loans and foreclosed real estate properties are carried at fair value less estimated selling costs, the determination of which requires significant assumptions, estimates and judgments. Fair values for foreclosed real estate properties and impaired loans collateralized by real estate are principally based on independent appraised values. Fair value is defined by GAAP as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. GAAP further defines an orderly transaction as 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. An orderly transaction is not a forced transaction like a forced liquidation or distressed sale. Basic and diluted earnings per share for 2019 was $0.05. The net earnings for this period was $355,000 and the weighted average common shares outstanding were 7,515,482. Basic and diluted earnings per share for the three months ended December 31, 2018 was $0.02. The net earnings for this period was $148,000 and the weighted average common shares outstanding were 7,496,465. Basic and diluted earnings per share for the year ended September 30, 2018 was $0.06. The net earnings for this period was $449,000 and the weighted average common shares outstanding were 7,537,305. |
Emerging Growth Company Status | Emerging Growth Company Status The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Company is an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies. An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the Company is first required to file a registration statement. The Company has elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 provides certain targeted improvements to align lessor accounting with the lessee accounting model. It requires lessees to recognize the assets and liabilities on their balance sheet for the rights and obligations created by most leases and continue to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows arising from leases. For emerging growth companies, this update will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company adopted ASU 2016-02 for the fiscal year beginning January 1, 2020. The adoption of this ASU is not expected to have a material effect on the Company’s financial position, results of operations or cash flows. In April 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2019-04 (“ASU 2019-04”), Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 includes technical corrections relating to scope, held to maturity disclosures, measurement alternative and remeasurement of equity securities. The effective date is for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a material effect on the Company’s financial position, result of operations or cash flows. Accounting Standards Update 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), is intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down. The Company selected a third-party vendor to provide allowance for loan loss software as well as advisory services in developing a new methodology that would be compliant with ASU 2016-13, and is working with the approved third-party vendor to develop the CECL model and evaluate its impact. ASU 2016-13 was originally to become effective for the Company for interim and annual periods beginning after December 15, 2019. In November 2019, the FASB issued Accounting Standards Update 2019 – 10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates (“ASU 2019–10”). ASU 2019-10 amends the effective date for certain entities, including the Company, for ASU 2016-13, Financial Instruments – Credit Losses. Because the Company is a smaller reporting company, ASU 2016-13 is now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 enhances and simplifies certain aspects of income tax accounting guidance related to hybrid tax regimes, interim period accounting for enacted changes in tax law, ownership changes in investments, intraperiod tax allocations and tax basis step-up in goodwill. It is effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this ASU is not expected to have a material effect on the Company’s financial position, result of operations or cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks and interest-earning deposits in other depository institutions. |
Investment Securities | Investment Securities The Company classifies its investment securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities for which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held-to-maturity are classified as available-for-sale. Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Transfers of securities between categories are recorded at fair value at the date of transfer. Management evaluates investment securities for other-than-temporary impairment on an annual basis. A decline in the market value of any held-to-maturity investment below cost that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related. The decline in value attributed to non-credit related factors is recognized in other comprehensive income and a new cost basis in the security is established. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield. Realized gains and losses for securities classified as held-to-maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Loans, Loan Fees and Interest Income on Loans | Loans, Loan Fees and Interest Income on Loans Loans are stated at the principal amount outstanding, net of the allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts that the borrower’s financial condition is such that collection of interest is doubtful. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is charged to interest income on loans. Generally, payments on nonaccrual loans are applied first to principal. Interest income is recorded after principal has been satisfied and as payments are received. Loan fees, net of certain origination costs, are deferred and amortized over the lives of the respective loans as an adjustment to the yield. A loan is impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price, or at the fair value of the collateral of the loan if the loan is collateral dependent. Estimated impairment losses for collateral dependent loans are set up as specific reserves. Interest income on impaired loans is recognized using the cash-basis method of accounting during the time the loans are impaired. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collection of the principal is unlikely. The allowance represents an amount, which in management’s judgment, will be adequate to absorb probable losses on existing loans that may become uncollectible. Commercial (secured by real estate): Commercial real estate loans are dependent on the industries tied to these loans. Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, small retail shopping facilities and various special purpose properties, including hotels and restaurants. Financial information is obtained from the borrowers and/or the individual project to evaluate cash flows sufficiency to service debt and is periodically updated during the life of the loan. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. Commercial and industrial: Commercial and industrial loans are primarily for working capital, physical asset expansion, asset acquisition loans and other. These loans are made based primarily on historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Financial information is obtained from the borrowers to evaluate cash flows sufficiency to service debt and are periodically updated during the life of the loan. Construction, land and acquisition and development: Construction, land and acquisition and development loans are secured by vacant land and/or property that are in the process of improvement, including (a) land development preparatory to erecting vertical improvements or (b) the onsite construction of industrial, commercial, residential, or farm buildings. Repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. In the event a loan is made on property that is not yet improved for the planned development, there is the risk that necessary approvals will not be granted or will be delayed. Construction loans also run the risk that improvements will not be completed on time or in accordance with specifications and projected costs. Residential mortgage 1-4 family: Residential real estate loans are affected by the local residential real estate market, the local economy, and, for variable rate mortgages, movement in indices tied to these loans. At the time of origination, the Company evaluates the borrower's repayment ability through a review of debt to income and credit scores. Appraisals are obtained to support the loan amount. Financial information is obtained from the borrowers and/or the individual project to evaluate cash flows sufficiency to service debt at the time of origination. Consumer installment: Consumer and other loans may take the form of auto loans, installment loans, demand loans, or single payment loans and are extended to individuals for household, family, and other personal expenditures. At the time of origination, the Company evaluates the borrower's repayment ability through a review of debt to income and credit scores. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the probability of collection of loans. These evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, overall portfolio quality, and review of specific problem loans. Management uses an external independent loan reviewer to challenge and corroborate its loan gradings and to provide additional analysis in determining the adequacy of the allowance for loan losses and necessary provisions to the allowance. Management believes the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses, and as a result of these reviews the Bank may have to adjust or make additions to the allowance for loan losses as a part of management’s ongoing evaluation of its adequacy. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned includes real estate acquired through foreclosure. Each other real estate property is initially recorded at its fair value less estimated costs to sell and is subsequently carried at fair value less estimated costs to sell. All foreclosed properties are actively marketed for sale. Fair value is principally based on independent appraisals performed by local credentialed appraisers. Any excess of the carrying value of the related loan over the fair value of the real estate at the date of foreclosure is charged against the allowance for loan losses. Properties in other real estate are re-evaluated annually. Any expense incurred in connection with holding such real estate or resulting from any writedowns in value subsequent to foreclosure is included in noninterest expense. When the other real estate property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds and the carrying amount of the property. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in earnings for the period. The cost of maintenance and repairs that do not improve or extend the useful life of the respective asset is charged to earnings as incurred, whereas significant renewals and improvements are capitalized. The range of estimated useful lives for premises and equipment are as follows: Equipment and furniture 3 - 10 years Buildings 40 years Automobile 5 years |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key executives and members of management. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other changes or other amounts due that are probable at settlement. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Additionally, this method requires the recognition of future tax benefits, such as net operating loss carryforwards, to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realization of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. The Company currently evaluates income tax positions judged to be uncertain. A loss contingency reserve is accrued if it is probable that the tax position will be challenged, it is probable that the future resolution of the challenge will confirm that a loss has been incurred, and the amount of such loss can be reasonably estimated. |
Revenue Recognition | Revenue Recognition As of January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method. Disclosures of revenue from contracts with customers for periods beginning after January 1, 2019 are presented under ASC Topic 606 and have not materially changed from the prior year amounts. This update prescribes the process related to the recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 excludes revenue streams relating to loans and investment securities, which are the major source of revenue for the Company, from its scope. As a result, the adoption of the guidance had no material impact on the measurement or recognition of revenue, however, as of January 1, 2019, the Company recognized all prior period other real estate owned deferred gains with a corresponding increase to the opening balance of stockholders’ equity of approximately $164,000 net of tax of $57,000 since all prior period sales qualified for full recognition of the gains in accordance with the new guidance. Consistent with this guidance, the Company recognizes noninterest income within the scope of this guidance as services are transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Other types of revenue contracts, the income from which is included in non-interest income, that are within the scope of ASU 2014-09 are: Service charges on deposit accounts: The deposit contract obligates the Company to serve as a custodian of the customer’s deposited funds and is generally terminable at will by either party. The contract permits the customer to access the funds on deposit and request additional services for which the Company earns a fee, including NSF and analysis charges, related to the deposit account. Income for deposit accounts is recognized over the statement cycle period (typically on a monthly basis) or at the time the service is provided, if additional services are requested. Small Business Administration (SBA) loan fees: Origination fees on SBA loans are recognized into income up to the amount of the cost of making the loan as is done with other loans. The remainder is deferred and taken into income over the life of the loan. A portion of proceeds from the sale of SBA loans is taken into income while the remainder is deferred over the life of the loan. ATM fee income: A contract between the Company, as a card-issuing bank, and its customers whereby the Company receives a transaction fee from the merchant’s bank whenever a customer uses a debit or credit card to make a purchase. These fees are earned as the service is provided (i.e., when the customer uses a debit or ATM card). Other non-interest income: Other non-interest income includes several items, such as wire transfer income, check cashing fees, the increase in cash surrender value of life insurance and safe deposit box rental fees. This income is generally recognized at the time the service is provided and/or the income is earned. |
FHLB Stock | |
Investment Securities | FHLB Stock The Federal Home Loan Bank (“FHLB”) stock is an investment that does not have a readily determinable fair value and is carried at cost. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful for Premises and Equipment | The range of estimated useful lives for premises and equipment are as follows: Equipment and furniture 3 - 10 years Buildings 40 years Automobile 5 years |
Transition Period (Tables)
Transition Period (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transition Period [Abstract] | |
Schedule of Audited Financial Statements | On October 25, 2018, the Board of Directors of the Company authorized a change in the Company’s fiscal year end from September 30th to December 31st. Accordingly, the Company is presenting required audited financial statements for the 3 month period ended December 31, 2018 as part of its transitional reporting. For the Three Months Ended December 31, 2018 2017 (In thousands) Selected Operating Data: Interest income $ 3,592 $ 3,328 Interest expense 506 340 Net interest income 3,086 2,988 Provision for loan losses — — Net interest income after provision for loan losses 3,086 2,988 Non-interest income 316 278 Non-interest expenses 3,211 3,179 Income before income tax expense 191 87 Income tax expense 43 1,048 Net income (loss) $ 148 $ (961 ) Earnings (loss) per share (basic and diluted) $ 0.02 $ (0.13 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities Held-to-Maturity | December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government sponsored enterprises $ 1,000 — (7 ) 993 September 30, 2018 U.S. Government sponsored enterprises $ 1,000 0 (10 ) 990 |
Schedule of Investment Securities Available-for-Sale | Investment securities available-for-sale at December 31, 2019, 2018 and September 30, 2018 are as follows: (in thousands) Amortized Gross Unrealized Gross Unrealized Estimated December 31, 2019 Cost Gains Losses Fair Value U.S. Government sponsored enterprises $ 501 — (1 ) 500 Government agency mortgage-backed securities 3,305 13 — 3,318 Total $ 3,806 13 (1 ) 3,818 December 31, 2018 Municipal securities - tax exempt $ 5,670 12 (73 ) 5,609 Municipal securities - taxable 3,119 — (132 ) 2,987 U.S. Government sponsored enterprises 501 — (10 ) 491 Government agency mortgage-backed securities 12,451 — (393 ) 12,058 Total $ 21,741 12 (608 ) 21,145 September 30, 2018 Municipal securities - tax exempt 5,687 1 (167 ) 5,521 Municipal securities - taxable 3,122 — (197 ) 2,925 U.S. Government sponsored enterprises 502 — (14 ) 488 Government agency mortgage-backed securities 12,988 — (562 ) 12,426 Total $ 22,299 1 (940 ) 21,360 |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Available-for-Sale by Contractual Maturity | The amortized cost and estimated fair value of investment securities available-for-sale at December 31, 2019 and 2018, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands) December 31, 2019 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Municipal securities - tax exempt Within 1 year $ — — $ — — 1 to 5 years — — 489 491 5 to 10 years — — 5,181 5,118 Greater than 10 years — — — — — — 5,670 5,609 Municipal securities - taxable Within 1 year — — — — 1 to 5 years — — — — 5 to 10 years — — 1,121 1,092 Greater than 10 years — — 1,998 1,895 — — 3,119 2,987 U.S. government sponsored enterprises securities Within 1 year 501 500 — — 1 to 5 years — — 501 491 5 to 10 years — — — — Greater than 10 years — — — — 501 500 501 491 Government agency mortgage-backed securities 3,305 3,318 12,451 12,058 Total $ 3,806 3,818 $ 21,741 21,145 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Major Classifications of Loans | Major classifications of loans, by collateral code, at December 31, 2019, 2018 and September 30, 2018 are summarized as follows: (in thousands) December 31, 2019 December 31, 2018 September 30, 2018 Commercial (secured by real estate) $ 54,488 45,509 39,768 Commercial and industrial 28,613 27,408 28,375 Construction, land and acquisition & development 20,502 14,015 20,188 Residential mortgage 1-4 family 116,843 139,919 135,508 Consumer installment 31,644 4,595 2,555 252,090 231,446 226,394 Less allowance for loan losses (4,134 ) (4,022 ) (3,909 ) $ 247,956 $ 227,424 222,485 |
Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019, 2018 and September 30, 2018: (in thousands) December 31, 2019 Commercial (Secured by Real Estate) Commercial and Industrial Construction, Land and Acquisition & Development Residential Mortgage Consumer Installment Unallocated Total Allowance for loan losses: Beginning balance $ 1,619 1,520 108 641 127 7 4,022 Provision (88 ) 53 45 (385 ) 375 — — Charge-offs — (163 ) — (254 ) (36 ) — (453 ) Recoveries 130 68 — 367 — — 565 Ending balance $ 1,661 1,478 153 369 466 7 4,134 Ending allowance attributable to loans: Individually evaluated for impairment $ 1 — — 5 — — 6 Collectively evaluated for impairment 1,660 1,478 153 364 466 7 4,128 Total ending allowance $ 1,661 $ 1,478 $ 153 $ 369 $ 466 $ 7 $ 4,134 Loans: Individually evaluated for impairment $ 1,539 395 — 4,161 - — 6,095 Collectively evaluated for impairment 52,949 28,218 20,502 112,682 31,644 — 245,995 Total loans $ 54,488 28,613 20,502 116,843 31,644 — 252,090 December 31, 2018 Allowance for loan losses: Beginning balance $ 1,312 1,670 178 687 61 1 3,909 Provision 274 (150 ) (70 ) (128 ) 68 6 — Charge-offs — (14 ) — (11 ) (2 ) — (27 ) Recoveries 33 14 — 93 — — 140 Ending balance $ 1,619 1,520 108 641 127 7 4,022 Ending allowance attributable to loans: Individually evaluated for impairment $ 3 — — 2 — — 5 Collectively evaluated for impairment 1,616 1,520 108 639 127 7 4,017 Total ending allowance $ 1,619 $ 1,520 $ 108 $ 641 $ 127 $ 7 $ 4,022 Loans: Individually evaluated for impairment $ 1,926 27 — 3,598 1 — 5,552 Collectively evaluated for impairment 43,583 27,381 14,015 136,321 4,594 — 225,894 Total loans $ 45,509 27,408 14,015 139,919 4,595 — 231,446 September 30, 2018 Allowance for loan losses: Beginning balance $ 1,548 863 349 1,704 79 8 4,551 Provision (402 ) 1,961 (188 ) (879 ) 15 (7 ) 500 Charge-offs (6 ) (1,275 ) — (1,425 ) (33 ) — (2,739 ) Recoveries 172 121 17 1,287 - — 1,597 Ending balance $ 1,312 1,670 178 687 61 1 3,909 Ending allowance attributable to loans: Individually evaluated for impairment $ 3 29 — 7 — — 39 Collectively evaluated for impairment 1,309 1,641 178 680 61 1 3,870 Total ending allowance $ 1,312 1,670 178 687 61 1 3,909 Loans: Individually evaluated for impairment $ 1,858 29 — 5,429 6 — 7,322 Collectively evaluated for impairment 37,910 28,346 20,188 130,079 2,549 — 219,072 Total loans $ 39,768 28,375 20,188 135,508 2,555 — 226,394 |
Summary of Impaired Loans | Impaired loans at December 31, 2019, 2018 and September 30, 2018 were as follows: (in thousands) December 31, 2019 Recorded Investment Unpaid Principal Balance Allocated Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial (secured by real estate) $ 26 26 — 40 9 Commercial and industrial 395 527 — 463 29 Construction, land and acquisition & development — — — — — Residential mortgage 3,749 3,878 — 3,912 153 Consumer installment — — — — — 4,170 4,431 — 4,415 190 With an allowance recorded: Commercial (secured by real estate) 1,513 1,513 1 1,539 94 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 412 412 5 405 — Consumer installment — — — — 24 1,925 1,925 6 1,944 118 Total impaired loans $ 6,095 6,356 6 6,359 307 December 31, 2018 With no related allowance recorded: Commercial (secured by real estate) $ 167 1,023 — 185 6 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 3,458 4,265 — 3,287 37 Consumer installment 1 1 — 6 — 3,626 5,289 — 3,478 43 With an allowance recorded: Commercial (secured by real estate) 1,759 1,759 3 1,777 27 Commercial and industrial 27 27 — 14 — Construction, land and acquisition & development — — — — — Residential mortgage 140 139 2 141 2 Consumer installment — — — — — 1,926 1,925 5 1,932 29 Total impaired loans $ 5,552 7,214 5 5,410 72 September 30, 2018 With no related allowance recorded: Commercial (secured by real estate) $ 87 1,152 — 106 42 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 4,507 5,430 — 4,354 153 Consumer installment — — — — — 4,594 6,582 — 4,460 195 With an allowance recorded: Commercial (secured by real estate) 1,771 1,771 3 1,790 — Commercial and industrial 29 29 29 15 110 Construction, land and acquisition & development — — — — — Residential mortgage 922 922 7 931 — Consumer installment 6 6 — — 51 2,728 2,728 39 2,736 161 Total impaired loans $ 7,322 9,310 39 7,196 356 |
Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans | The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of December 31, 2019, 2018 and September 30, 2018 by class of loans: (in thousands) December 31, 2019 30 -59 Days Past Due 60- 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Nonaccrual Commercial (secured by real estate) 114 24 10 148 54,340 54,488 246 Commercial and industrial 1,270 30 395 1,695 26,918 28,613 395 Construction, land and acquisition & development — — — — 20,502 20,502 — Residential mortgage 3,087 2,040 643 5,770 111,073 116,843 1,912 Consumer installment 58 34 — 92 31,552 31,644 14 Total $ 4,529 2,128 1,048 7,705 244,385 252,090 2,567 December 31, 2018 Commercial (secured by real estate) $ — — — 45,509 45,509 56 Commercial and industrial — — — — 27,408 27,408 27 Construction, land and acquisition & development — — — — 14,015 14,015 — Residential mortgage 196 1,039 228 1,463 138,456 139,919 1,744 Consumer installment 9 1 1 11 4,584 4,595 1 Total $ 205 1,040 229 1,474 229,972 231,446 1,828 September 30, 2018 Commercial (secured by real estate) $ 283 $ 3 — 286 39,482 39,768 70 Commercial and industrial — — — — 28,375 28,375 29 Construction, land and acquisition & development — 257 — 257 19,931 20,188 — Residential mortgage 167 980 1,115 2,262 133,246 135,508 2,089 Consumer installment — 30 7 37 2,518 2,555 7 Total $ 450 1,270 1,122 2,842 223,552 226,394 2,195 |
Summary of Troubled Debt Restructurings | The table below presents information on troubled debt restructurings including the number of loan contracts restructured and the pre- and post-modification recorded investment that have occurred during the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018. Also included in the table are the number of contracts and the recorded investment for those trouble debt restructurings that have subsequently defaulted during the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018: (in thousands) Pre- Modification Outstanding Post- Modification Outstanding Troubled Debt Restructurings that have Subsequently Defaulted December 31, 2019 Number of Contracts Recorded Investment Recorded Investment Number of Contracts Recorded Investment Residential mortgage 1 $ 250 250 — — December 31, 2018 Residential mortgage 1 $ 262 262 — — September 30, 2018 Residential mortgage 1 $ 30 30 — — |
Summary of Risk Category of Loans by Class of Loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of December 31, 2019, 2018 and September 30, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands) December 31, 2019 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 54,454 — 34 — 54,488 Commercial and industrial 28,204 — 409 — 28,613 Construction, land and acquisition & development 20,502 — — — 20,502 Residential mortgage 110,034 229 6,580 — 116,843 Consumer installment 31,626 — 18 — 31,644 Total $ 244,820 229 7,041 — 252,090 December 31, 2018 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 45,188 — 321 — 45,509 Commercial and industrial 27,381 — 27 — 27,408 Construction, land and acquisition & development 14,015 — — — 14,015 Residential mortgage 133,930 65 5,924 — 139,919 Consumer installment 4,553 — 42 — 4,595 Total $ 225,067 65 6,314 — 231,446 September 30, 2018 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 39,387 — 381 — 39,768 Commercial and industrial 28,346 — 29 — 28,375 Construction, land and acquisition & development 20,010 — 178 — 20,188 Residential mortgage 129,441 66 6,001 — 135,508 Consumer installment 2,493 — 62 — 2,555 Total $ 219,677 66 6,651 — 226,394 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment at December 31, 2019, 2018 and September 30, 2018 are summarized as follows: (in thousands) December 31, 2019 December 31, 2018 September 30, 2018 Land $ 1,416 $ 1,416 $ 1,416 Buildings 9,154 9,121 9,111 Equipment and furniture 4,712 4,896 4,847 Construction in process 2 7 25 Automobile 123 123 123 15,407 15,563 15,522 Less: Accumulated depreciation 6,894 6,667 6,482 $ 8,513 $ 8,896 $ 9,040 |
Schedule of Minimum Annual Rentals Under Non-Cancelable Agreements | At December 31, 2019, the approximate minimum annual rentals under these non-cancelable agreements with remaining terms in excess of one year are as follows: (in thousands) Years ending December 31 , 2020 $ 121 2021 86 2022 77 2023 77 2024 77 Thereafter 26 Total $ 464 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Summary of Contractual Maturities of Certificate of Deposits | At December 31, 2019, contractual maturities of certificate of deposits are summarized as follows: (in thousands). 2020 $ 35,523 2021 22,448 2022 16,021 2023 10,691 2024 7,965 Thereafter 12,589 $ 105,237 At December 31, 2018, contractual maturities of certificate of deposits are summarized as follows: (in thousands). 2019 $ 26,537 2020 13,022 2021 6,657 2022 15,358 2023 10,773 Thereafter 15,163 $ 87,510 |
Summary of Interest Expense on Deposits | The following is a summary of interest expense on deposits for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018: (in thousands) Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Savings accounts $ 31 $ 6 $ 15 Interest bearing checking accounts 352 102 274 Market rate checking accounts 274 48 107 Certificates of deposit 1,629 312 1,024 $ 2,286 $ 468 $ 1,420 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank of Atlanta (FHLB) Advances | The following advances, which require monthly or quarterly interest payments, were outstanding at December 31, 2018 and September 30, 2018: Advance Date Advance Interest Rate Maturity Rate Call Feature 10/25/2017 $ 2,710,000 1.98 % 10/26/2020 Fixed None 10/25/2017 1,250,000 1.81 % 10/25/2019 Fixed None 11/13/2017 1,190,000 1.87 % 11/13/2019 Fixed None 11/13/2017 2,420,000 2.02 % 11/13/2020 Fixed None $ 7,570,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018 are as follows: (in thousands) Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Current $ (174 ) $ 10 $ (231 ) Rate reduction adjustment — — 884 Deferred 145 33 552 $ (29 ) $ 43 $ 1,205 |
Schedule of Difference Between Income Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Income Taxes Rate to Income Before Taxes | The difference between income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate to income before taxes for the year ended December 31, 2019, the transition period of three months ended December 31, 2018 and the year ended September 30, 2018 Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Statutory Federal tax rate 21.00 % 21.00 % 24.25 % Pretax income at statutory rate $ 68 $ 40 $ 401 State income tax, net of federal benefit 19 21 3 Cash Surrender Value of Life Insurance (44 ) (12 ) (47 ) Permanent adjustments (12 ) (5 ) — Other (60 ) (1 ) (36 ) Tax reform deferred tax rate reduction adjustment — — 884 Actual tax expense (9)%, 23% and 73%, respectively $ (29 ) $ 43 $ 1,205 |
Schedule of Net Deferred Taxes | The following summarizes the sources and expected tax consequences of future deductions or income for income tax purposes which comprised the net deferred taxes at December 31, 2019, 2018 and September 30, 2018: (in thousands) Year Ended December 31, 2019 Three Months Ended December 31, 2018 Year Ended September 30, 2018 Deferred income tax assets: Allowance for loan losses $ 1,015 $ 1,027 $ 988 Deferred compensation 814 908 923 Deferred gain on other real estate owned — 56 56 State tax credits 296 280 325 Unrealized loss on investment securities available for sale — 155 244 Other 38 14 36 Total deferred income tax assets 2,163 2,440 2,572 Deferred income tax liabilities: FHLB stock dividends — 4 4 Premises and equipment 226 183 208 Unrealized gain on investment securities available-for-sale 3 — — Other 82 98 83 Total deferred income tax liabilities 311 285 295 Net deferred income tax asset $ 1,852 $ 2,155 $ 2,277 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Bank's Actual Capital Amounts And Ratios | The Bank’s actual capital amounts and ratios for December 31, 2019, 2018 and September 30, 2018 are presented in the table below (in thousands). For Capital To Be Well Capitalized Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Common Equity Tier 1 (to Risk Weighted Assets) $ 62,349 27 % $ 10,267 4.50 % $ 14,830 6.50 % Total Capital (to Risk Weighted Assets) $ 65,217 29 % $ 18,252 8 % $ 22,816 10 % Tier I Capital (to Risk Weighted Assets) $ 62,349 27 % $ 13,689 6 % $ 18,252 8 % Tier I Capital (to Average Assets) $ 62,349 20 % $ 12,681 4 % $ 15,863 5 % As of December 31, 2018: Common Equity Tier 1 (to Risk Weighted Assets) $ 60,880 29 % $ 9,292 4.50 % $ 13,422 6.50 % Total Capital (to Risk Weighted Assets) $ 63,479 31 % $ 16,519 8 % $ 20,649 10 % Tier I Capital (to Risk Weighted Assets) $ 60,880 29 % $ 12,389 6 % $ 16,519 8 % Tier I Capital (to Average Assets) $ 60,880 20 % $ 12,291 4 % $ 15,363 5 % As of September 30, 2018: Common Equity Tier 1 (to Risk Weighted Assets) $ 60,658 30 % $ 9,155 4.50 % $ 13,223 6.50 % Total Capital (to Risk Weighted Assets) $ 63,218 31 % $ 16,275 8 % $ 20,344 10 % Tier I Capital (to Risk Weighted Assets) $ 60,658 30 % $ 12,206 6 % $ 16,275 8 % Tier I Capital (to Average Assets) $ 60,658 20 % $ 12,068 4 % $ 15,085 5 % |
Schedule of Reconciliation For Bank's Equity Capital Amounts Under GAAP To Tier 1 and Total Risk-based Capital | A reconciliation of the Bank’s equity capital amounts under GAAP to tier 1 and total risk-based capital for December 31, 2019, 2018 and September 30, 2018 are presented in the table below (in thousands). December 31, 2019 December 31, 2018 September 30, 2018 Regulatory capital: Stockholders’ equity $ 62,575 60,720 60,244 Disallowed deferred taxes (226 ) 160 414 Tier 1 risk-based capital 62,349 60,880 60,658 Eligible allowance for loan losses 2,868 2,599 2,560 Total risk-based capital $ 65,217 63,479 63,218 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Activity for Related Party Loans | The following is a summary of activity for related party loans: (in thousands). For Year Ended December 31, 2019 For Three Months Ended December 31, 2018 Beginning balance $ 1,037 $ 1,047 Loans advanced 96 3 Repayments (99 ) (13) Ending balance $ 1,034 $ 1,037 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Contract Amounts Represent Credit Risk | In most cases, the Bank requires collateral or other security to support financial instruments with credit risk. Appropriate Contract Amount December 31, 2019 December 31, 2018 September 30, 2018 Financial instruments whose contract amounts represent credit risk: (in thousands) Commitments to extend credit $ 24,648 $ 32,140 29,444 |
Schedule of Dollar Amount and Ranges of Rates of Commitments to Fund Fixed Rate Loans | The dollar amount and ranges of rates of commitments to fund fixed rate loans follows: (in thousands) December 31,2019 December 31,2018 September 30, 2018 Amount Interest Rate Range Amount Interest Rate Range Amount Interest Rate Range Commitments to extend credit $ 3,842 2.50%-7.75% 11,921 2.50%-9.25% 9,239 2.30%-8.25% |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2019, 2018 and September 30, 2018 (in thousands). December 31, 2019 Level 1 Level 2 Level 3 Total Other real estate owned $ — — 140 140 Impaired loans — — 6,089 6,089 Total assets at fair value $ — — 6,229 6,229 December 31, 2018 Level 1 Level 2 Level 3 Total Other real estate owned $ — — 508 508 Impaired loans — — 5,547 5,547 Total assets at fair value $ — — 6,055 6,055 September 30, 2018 Level 1 Level 2 Level 3 Total Other real estate owned $ — — 67 67 Impaired loans — — 7,283 7,283 Total assets at fair value $ — — 7,350 7,350 |
Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments | The carrying amounts and estimated fair values (in thousands) of the Company’s financial instruments at December 31, 2019, 2018 and September 30, 2018 are as follows: December 31, 2019 December 31, 2018 September 30, 2018 Carrying Estimated Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Amount Fair Value Financial assets: Cash and cash equivalents $ 48,117 48,117 37,029 37,029 40,796 40,796 Investment securities available-for-sale $ 3,818 3,818 21,145 21,145 21,360 21,360 held-to-maturity $ — — 1,000 993 1,000 990 FHLB Stock $ 278 278 580 580 580 580 Loans, net $ 247,956 219,991 227,424 198,403 222,485 188,870 Bank owned life insurance $ 7,462 7,462 7,251 7,251 7,195 7,195 Financial liabilities: Deposits $ 238,181 239,340 219,181 219,319 216,387 216,280 FHLB advances $ — — 7,570 7,656 7,570 7,706 |
Condensed Parent Company Only_2
Condensed Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Summary of Financial Information | A condensed summary of ’sfinancial information is shown. Parent Only Condensed Balance Sheets December 31, 2019 December 31, 2018 September 30, 2018 Assets Cash in bank subsidiary $ 11,302 $ 12,742 $ 13,223 Cash in banks $ 258 $ 253 $ 252 Investment in subsidiary, at underlying equity 62,574 60,720 60,245 Loan receivable - ESOP 2,686 2,751 2,751 Other assets 524 36 — Total assets $ 77,344 $ 76,502 $ 76,471 Liabilities and Stockholders' Equity Liabilities : Other liabilities $ 177 $ 104 $ 88 Total liabilities 177 104 88 Stockholders' equity: Total stockholders' equity 77,167 76,398 76,383 Total liabilities and stockholders' equity $ 77,344 $ 76,502 $ 76,471 Parent Only Condensed Statements of Income Year Ended December 31, Three Months Ended December 31, Year Ended September 30, 2019 2018 2018 Interest income: Income on ESOP loan $ 144 $ 36 $ 120 Interest on bank deposits 4 1 $ 4 Total interest income 148 37 124 Non-interest expenses: Other non-interest expense 797 90 371 Loss before income taxes (649 ) (53 ) (247 ) Income tax benefit 163 12 60 Loss before equity in undistributed earnings of Bank (486 ) (41 ) (187 ) Equity in undistributed earnings of Bank 841 189 635 Net income $ 355 $ 148 $ 449 Parent Only Condensed Statements of Cash Flows Year Ended December 31, Three Months Ended December 31, Year Ended September 30, 2019 2018 2018 Cash flows from operating activities: Net income $ 355 $ 148 $ 449 Adjustments to reconcile net income to net cash used in operating activities Proceeds from ESOP loan 209 — 190 Equity in undistributed earnings of Bank (841 ) (189 ) (635 ) Other (558 ) (19 ) (82 ) Net cash used in operating activities (835 ) (60 ) (78 ) Purchase of treasury stock (600 ) (420 ) (248 ) Net cash used in financing activities (600 ) (420 ) (248 ) Net change in cash and cash equivalents (1,435 ) (480 ) (326 ) Cash and cash equivalents at beginning of period 12,995 13,475 13,801 Cash and cash equivalents at end of period $ 11,560 $ 12,995 $ 13,475 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2018 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Basic and diluted earnings per share | $ 0.02 | $ (0.13) | $ 0.05 | $ 0.06 | |
Net earnings | $ 148,000 | $ (961,000) | $ 355,000 | $ 449,000 | |
Weighted average common shares outstanding | 7,496,465 | 7,515,482 | 7,537,305 | ||
ASU 606 adoption adjustment in stockholders’ equity, net of tax | $ 164,000 | ||||
ASU 606 adoption adjustment in stockholders’ equity, tax | $ 57,000 | ||||
ASU 2014-09 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
ASU 606 adoption adjustment in stockholders’ equity, net of tax | $ 164,000 | ||||
ASU 606 adoption adjustment in stockholders’ equity, tax | $ 57,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful for Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Equipment and Furniture | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives for premises and equipment | 3 years |
Equipment and Furniture | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives for premises and equipment | 10 years |
Buildings | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives for premises and equipment | 40 years |
Automobile | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives for premises and equipment | 5 years |
Transition Period - Schedule of
Transition Period - Schedule of Audited Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2018 | |
Transition Period [Abstract] | ||||
Interest income | $ 3,592 | $ 3,328 | $ 14,997 | $ 14,292 |
Interest expense | 506 | 340 | 2,312 | 1,556 |
Net interest income before provision for loan losses | 3,086 | 2,988 | 12,685 | 12,736 |
Provision for loan losses | 500 | |||
Net interest income after provision for loan losses | 3,086 | 2,988 | 12,685 | 12,236 |
Non-interest income | 316 | 278 | 1,645 | 1,908 |
Non-interest expenses | 3,211 | 3,179 | 14,004 | 12,490 |
Income before income taxes | 191 | 87 | 326 | 1,654 |
Income tax expense | 43 | 1,048 | (29) | 1,205 |
Net income (loss) | $ 148 | $ (961) | $ 355 | $ 449 |
Earnings (loss) per share (basic and diluted) | $ 0.02 | $ (0.13) | $ 0.05 | $ 0.06 |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Investment Securities Held-to-Maturity, Amortized Cost | $ 1,000 | $ 1,000 |
Investment Securities Held-to-Maturity, Estimated Fair Value | 993 | 990 |
U.S. Government Sponsored Enterprises | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Investment Securities Held-to-Maturity, Amortized Cost | 1,000 | 1,000 |
Investment Securities Held-to-Maturity, Gross Unrealized Gains | 0 | |
Investment Securities Held-to-Maturity, Gross Unrealized Losses | (7) | (10) |
Investment Securities Held-to-Maturity, Estimated Fair Value | $ 993 | $ 990 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018USD ($)Security | Dec. 31, 2019USD ($)Security | Sep. 30, 2018USD ($) | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Sales of held-to-maturity securities | $ 0 | $ 0 | $ 0 |
Carrying value of held-to-maturity securities pledged to secure public deposits | $ 1,000,000 | 1,000,000 | |
Held-to-maturity securities, matured year | 2019 | ||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 37 | 1 | |
Number of available-for-sale securities in unrealized loss position greater than 12 months | Security | 4 | 1 | |
Proceeds from sales of investment securities available-for-sale | $ 0 | $ 16,361,000 | 0 |
Gross realized gain on sale of available -for-sale securities | 213,000 | ||
Gross realized loss on sale of available -for-sale securities | 66,000 | ||
Carrying value of available-for-sale securities pledged to secure public deposits | 21,145,000 | 3,818,000 | 21,360,000 |
Collateral Pledged | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Carrying value of held-to-maturity securities pledged to secure public deposits | 1,000,000 | 1,000,000 | |
Carrying value of available-for-sale securities pledged to secure public deposits | $ 1,800,000 | $ 3,800,000 | $ 1,800,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Investment Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | $ 3,806 | $ 21,741 | $ 22,299 |
Investment securities available-for-sale, Gross Unrealized Gains | 13 | 12 | 1 |
Investment securities available-for-sale, Gross Unrealized Losses | (1) | (608) | (940) |
Investment securities available-for-sale, Estimated Fair Value | 3,818 | 21,145 | 21,360 |
U.S. Government Sponsored Enterprises | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | 501 | 501 | 502 |
Investment securities available-for-sale, Gross Unrealized Losses | (1) | (10) | (14) |
Investment securities available-for-sale, Estimated Fair Value | 500 | 491 | 488 |
Government Agency Mortgage-Backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | 3,305 | 12,451 | 12,988 |
Investment securities available-for-sale, Gross Unrealized Gains | 13 | ||
Investment securities available-for-sale, Gross Unrealized Losses | (393) | (562) | |
Investment securities available-for-sale, Estimated Fair Value | $ 3,318 | 12,058 | 12,426 |
Municipal Securities - Tax Exempt | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | 5,670 | 5,687 | |
Investment securities available-for-sale, Gross Unrealized Gains | 12 | 1 | |
Investment securities available-for-sale, Gross Unrealized Losses | (73) | (167) | |
Investment securities available-for-sale, Estimated Fair Value | 5,609 | 5,521 | |
Municipal Securities - Taxable | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | 3,119 | 3,122 | |
Investment securities available-for-sale, Gross Unrealized Losses | (132) | (197) | |
Investment securities available-for-sale, Estimated Fair Value | $ 2,987 | $ 2,925 |
Investment Securities - Sched_3
Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Available-for-Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | $ 3,806 | $ 21,741 | $ 22,299 |
Investment securities available-for-sale, Estimated Fair Value | 3,818 | 21,145 | 21,360 |
Municipal Securities - Tax Exempt | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Greater than 1 to 5 years, Amortized Cost | 489 | ||
Investment securities available-for-sale, Greater than 5 to 10 years, Amortized Cost | 5,181 | ||
Investment securities available-for-sale, Amortized Cost | 5,670 | 5,687 | |
Investment securities available-for-sale, Greater than 1 to 5 years, Estimated Fair Value | 491 | ||
Investment securities available-for-sale, Greater than 5 to 10 years, Estimated Fair Value | 5,118 | ||
Investment securities available-for-sale, Estimated Fair Value | 5,609 | 5,521 | |
Municipal Securities - Taxable | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Greater than 5 to 10 years, Amortized Cost | 1,121 | ||
Investment securities available-for-sale, Greater than 10 years, Amortized Cost | 1,998 | ||
Investment securities available-for-sale, Amortized Cost | 3,119 | 3,122 | |
Investment securities available-for-sale, Greater than 5 to 10 years, Estimated Fair Value | 1,092 | ||
Investment securities available-for-sale, Greater than10 years, Estimated Fair Value | 1,895 | ||
Investment securities available-for-sale, Estimated Fair Value | 2,987 | 2,925 | |
U.S. Government Sponsored Enterprises Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, within 1 year, Amortized Cost | 501 | ||
Investment securities available-for-sale, Greater than 1 to 5 years, Amortized Cost | 501 | ||
Investment securities available-for-sale, Amortized Cost | 501 | 501 | |
Investment securities available-for-sale, within 1 year, Estimated Fair Value | 500 | ||
Investment securities available-for-sale, Greater than 1 to 5 years, Estimated Fair Value | 491 | ||
Investment securities available-for-sale, Estimated Fair Value | 500 | 491 | |
Government Agency Mortgage-Backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investment securities available-for-sale, Amortized Cost | 3,305 | 12,451 | 12,988 |
Investment securities available-for-sale, Estimated Fair Value | $ 3,318 | $ 12,058 | $ 12,426 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Major Classifications of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | $ 252,090 | $ 231,446 | $ 226,394 | |
Less allowance for loan losses | (4,134) | (4,022) | (3,909) | $ (4,551) |
Loans, net | 247,956 | 227,424 | 222,485 | |
Commercial (Secured by Real Estate) | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 54,488 | 45,509 | 39,768 | |
Less allowance for loan losses | (1,661) | (1,619) | (1,312) | (1,548) |
Commercial and Industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 28,613 | 27,408 | 28,375 | |
Less allowance for loan losses | (1,478) | (1,520) | (1,670) | (863) |
Construction, Land and Acquisition & Development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 20,502 | 14,015 | 20,188 | |
Less allowance for loan losses | (153) | (108) | (178) | (349) |
Residential Mortgage 1-4 Family | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 116,843 | 139,919 | 135,508 | |
Consumer Installment | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 31,644 | 4,595 | 2,555 | |
Less allowance for loan losses | $ (466) | $ (127) | $ (61) | $ (79) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | |||
Sep. 30, 2018USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2017USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Qualifying loans pledged to secure the line of credit from FHLB | $ 137,500,000 | $ 115,400,000 | $ 125,000,000 | |
Number of loans sold | loan | 70 | |||
Outstanding loan balance | $ 5,000,000 | |||
Proceeds from sale of loans | 3,700,000 | |||
Allowance for loan losses | 3,909,000 | 4,134,000 | 4,022,000 | $ 4,551,000 |
Modified Loan Terms | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Allowance for loan losses | 36,000 | 6,000 | 5,000 | |
Greater than 90 Days Past Due | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Total Past Due | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Allowance for loan losses: | |||
Beginning balance | $ 3,909 | $ 4,022 | $ 4,551 |
Provision | 0 | 0 | 500 |
Charge-offs | (27) | (453) | (2,739) |
Recoveries | 140 | 565 | 1,597 |
Ending balance | 4,022 | 4,134 | 3,909 |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 5 | 6 | 39 |
Collectively evaluated for impairment | 4,017 | 4,128 | 3,870 |
Ending balance | 4,022 | 4,134 | 3,909 |
Loans: | |||
Individually evaluated for impairment | 5,552 | 6,095 | 7,322 |
Collectively evaluated for impairment | 225,894 | 245,995 | 219,072 |
Total loans | 231,446 | 252,090 | 226,394 |
Commercial (Secured by Real Estate) | |||
Allowance for loan losses: | |||
Beginning balance | 1,312 | 1,619 | 1,548 |
Provision | 274 | (88) | (402) |
Charge-offs | (6) | ||
Recoveries | 33 | 130 | 172 |
Ending balance | 1,619 | 1,661 | 1,312 |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 3 | 1 | 3 |
Collectively evaluated for impairment | 1,616 | 1,660 | 1,309 |
Ending balance | 1,619 | 1,661 | 1,312 |
Loans: | |||
Individually evaluated for impairment | 1,926 | 1,539 | 1,858 |
Collectively evaluated for impairment | 43,583 | 52,949 | 37,910 |
Total loans | 45,509 | 54,488 | 39,768 |
Commercial and Industrial | |||
Allowance for loan losses: | |||
Beginning balance | 1,670 | 1,520 | 863 |
Provision | (150) | 53 | 1,961 |
Charge-offs | (14) | (163) | (1,275) |
Recoveries | 14 | 68 | 121 |
Ending balance | 1,520 | 1,478 | 1,670 |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 29 | ||
Collectively evaluated for impairment | 1,520 | 1,478 | 1,641 |
Ending balance | 1,520 | 1,478 | 1,670 |
Loans: | |||
Individually evaluated for impairment | 27 | 395 | 29 |
Collectively evaluated for impairment | 27,381 | 28,218 | 28,346 |
Total loans | 27,408 | 28,613 | 28,375 |
Construction, Land and Acquisition & Development | |||
Allowance for loan losses: | |||
Beginning balance | 178 | 108 | 349 |
Provision | (70) | 45 | (188) |
Recoveries | 17 | ||
Ending balance | 108 | 153 | 178 |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 108 | 153 | 178 |
Ending balance | 108 | 153 | 178 |
Loans: | |||
Collectively evaluated for impairment | 14,015 | 20,502 | 20,188 |
Total loans | 14,015 | 20,502 | 20,188 |
Residential Mortgage | |||
Allowance for loan losses: | |||
Beginning balance | 687 | 641 | 1,704 |
Provision | (128) | (385) | (879) |
Charge-offs | (11) | (254) | (1,425) |
Recoveries | 93 | 367 | 1,287 |
Ending balance | 641 | 369 | 687 |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 2 | 5 | 7 |
Collectively evaluated for impairment | 639 | 364 | 680 |
Ending balance | 641 | 369 | 687 |
Loans: | |||
Individually evaluated for impairment | 3,598 | 4,161 | 5,429 |
Collectively evaluated for impairment | 136,321 | 112,682 | 130,079 |
Total loans | 139,919 | 116,843 | 135,508 |
Consumer Installment | |||
Allowance for loan losses: | |||
Beginning balance | 61 | 127 | 79 |
Provision | 68 | 375 | 15 |
Charge-offs | (2) | (36) | (33) |
Ending balance | 127 | 466 | 61 |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 127 | 466 | 61 |
Ending balance | 127 | 466 | 61 |
Loans: | |||
Individually evaluated for impairment | 1 | 6 | |
Collectively evaluated for impairment | 4,594 | 31,644 | 2,549 |
Total loans | 4,595 | 31,644 | 2,555 |
Unallocated | |||
Allowance for loan losses: | |||
Beginning balance | 1 | 7 | 8 |
Provision | 6 | (7) | |
Ending balance | 7 | 7 | 1 |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 7 | 7 | 1 |
Ending balance | $ 7 | $ 7 | $ 1 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | $ 3,626 | $ 4,170 | $ 4,594 |
Unpaid Principal Balance, With no related allowance recorded | 5,289 | 4,431 | 6,582 |
Average Recorded Investment, With no related allowance recorded | 3,478 | 4,415 | 4,460 |
Interest Income Recognized, With no related allowance recorded | 43 | 190 | 195 |
Recorded Investment, With an allowance recorded | 1,926 | 1,925 | 2,728 |
Unpaid Principal Balance, With an allowance recorded | 1,925 | 1,925 | 2,728 |
Allocated Related Allowance, With an allowance recorded | 5 | 6 | 39 |
Average Recorded Investment, With an allowance recorded | 1,932 | 1,944 | 2,736 |
Interest Income Recognized, With an allowance recorded | 29 | 118 | 161 |
Total impaired loans, Recorded Investment | 5,552 | 6,095 | 7,322 |
Total impaired loans, Unpaid Principal Balance | 7,214 | 6,356 | 9,310 |
Total impaired loans, Allocated Related Allowance | 5 | 6 | 39 |
Total impaired loans, Average Recorded Investment | 5,410 | 6,359 | 7,196 |
Total impaired loans, Interest Income Recognized | 72 | 307 | 356 |
Commercial (Secured by Real Estate) | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 167 | 26 | 87 |
Unpaid Principal Balance, With no related allowance recorded | 1,023 | 26 | 1,152 |
Average Recorded Investment, With no related allowance recorded | 185 | 40 | 106 |
Interest Income Recognized, With no related allowance recorded | 6 | 9 | 42 |
Recorded Investment, With an allowance recorded | 1,759 | 1,513 | 1,771 |
Unpaid Principal Balance, With an allowance recorded | 1,759 | 1,513 | 1,771 |
Allocated Related Allowance, With an allowance recorded | 3 | 1 | 3 |
Average Recorded Investment, With an allowance recorded | 1,777 | 1,539 | 1,790 |
Interest Income Recognized, With an allowance recorded | 27 | 94 | |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 395 | ||
Unpaid Principal Balance, With no related allowance recorded | 527 | ||
Average Recorded Investment, With no related allowance recorded | 463 | ||
Interest Income Recognized, With no related allowance recorded | 29 | ||
Recorded Investment, With an allowance recorded | 27 | 29 | |
Unpaid Principal Balance, With an allowance recorded | 27 | 29 | |
Allocated Related Allowance, With an allowance recorded | 29 | ||
Average Recorded Investment, With an allowance recorded | 14 | 15 | |
Interest Income Recognized, With an allowance recorded | 110 | ||
Residential Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 3,458 | 3,749 | 4,507 |
Unpaid Principal Balance, With no related allowance recorded | 4,265 | 3,878 | 5,430 |
Average Recorded Investment, With no related allowance recorded | 3,287 | 3,912 | 4,354 |
Interest Income Recognized, With no related allowance recorded | 37 | 153 | 153 |
Recorded Investment, With an allowance recorded | 140 | 412 | 922 |
Unpaid Principal Balance, With an allowance recorded | 139 | 412 | 922 |
Allocated Related Allowance, With an allowance recorded | 2 | 5 | 7 |
Average Recorded Investment, With an allowance recorded | 141 | 405 | 931 |
Interest Income Recognized, With an allowance recorded | 2 | ||
Consumer Installment | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 1 | ||
Unpaid Principal Balance, With no related allowance recorded | 1 | ||
Average Recorded Investment, With no related allowance recorded | $ 6 | ||
Recorded Investment, With an allowance recorded | 6 | ||
Unpaid Principal Balance, With an allowance recorded | 6 | ||
Interest Income Recognized, With an allowance recorded | $ 24 | $ 51 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 7,705 | $ 1,474 | $ 2,842 |
Current | 244,385 | 229,972 | 223,552 |
Total loans | 252,090 | 231,446 | 226,394 |
Nonaccrual | 2,567 | 1,828 | 2,195 |
Commercial (Secured by Real Estate) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 148 | 286 | |
Current | 54,340 | 45,509 | 39,482 |
Total loans | 54,488 | 45,509 | 39,768 |
Nonaccrual | 246 | 56 | 70 |
Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,695 | ||
Current | 26,918 | 27,408 | 28,375 |
Total loans | 28,613 | 27,408 | 28,375 |
Nonaccrual | 395 | 27 | 29 |
Construction, Land and Acquisition & Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 257 | ||
Current | 20,502 | 14,015 | 19,931 |
Total loans | 20,502 | 14,015 | 20,188 |
Residential Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 5,770 | 1,463 | 2,262 |
Current | 111,073 | 138,456 | 133,246 |
Total loans | 116,843 | 139,919 | 135,508 |
Nonaccrual | 1,912 | 1,744 | 2,089 |
Consumer Installment | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 92 | 11 | 37 |
Current | 31,552 | 4,584 | 2,518 |
Total loans | 31,644 | 4,595 | 2,555 |
Nonaccrual | 14 | 1 | 7 |
30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 4,529 | 205 | 450 |
30 -59 Days Past Due | Commercial (Secured by Real Estate) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 114 | 283 | |
30 -59 Days Past Due | Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,270 | ||
30 -59 Days Past Due | Residential Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 3,087 | 196 | 167 |
30 -59 Days Past Due | Consumer Installment | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 58 | 9 | |
60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,128 | 1,040 | 1,270 |
60- 89 Days Past Due | Commercial (Secured by Real Estate) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 24 | 3 | |
60- 89 Days Past Due | Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 30 | ||
60- 89 Days Past Due | Construction, Land and Acquisition & Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 257 | ||
60- 89 Days Past Due | Residential Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,040 | 1,039 | 980 |
60- 89 Days Past Due | Consumer Installment | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 34 | 1 | 30 |
90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,048 | 229 | 1,122 |
90 Days or Greater Past Due | Commercial (Secured by Real Estate) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 10 | ||
90 Days or Greater Past Due | Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 395 | ||
90 Days or Greater Past Due | Residential Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 643 | 228 | 1,115 |
90 Days or Greater Past Due | Consumer Installment | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 1 | $ 7 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Details) - Residential Mortgage $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018USD ($)Contract | Dec. 31, 2019USD ($)Contract | Sep. 30, 2018USD ($)Contract | |
Financing Receivable Modifications [Line Items] | |||
Number of Contracts | Contract | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 262 | $ 250 | $ 30 |
Post-Modification Outstanding Recorded Investment | $ 262 | $ 250 | $ 30 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Composition Of Loan Portfolio [Line Items] | |||
Total | $ 252,090 | $ 231,446 | $ 226,394 |
Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 244,820 | 225,067 | 219,677 |
Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 229 | 65 | 66 |
Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 7,041 | 6,314 | 6,651 |
Commercial (Secured by Real Estate) | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 54,488 | 45,509 | 39,768 |
Commercial (Secured by Real Estate) | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 54,454 | 45,188 | 39,387 |
Commercial (Secured by Real Estate) | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 34 | 321 | 381 |
Commercial and Industrial | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 28,613 | 27,408 | 28,375 |
Commercial and Industrial | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 28,204 | 27,381 | 28,346 |
Commercial and Industrial | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 409 | 27 | 29 |
Construction, Land and Acquisition & Development | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 20,502 | 14,015 | 20,188 |
Construction, Land and Acquisition & Development | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 20,502 | 14,015 | 20,010 |
Construction, Land and Acquisition & Development | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 178 | ||
Residential Mortgage | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 116,843 | 139,919 | 135,508 |
Residential Mortgage | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 110,034 | 133,930 | 129,441 |
Residential Mortgage | Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 229 | 65 | 66 |
Residential Mortgage | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 6,580 | 5,924 | 6,001 |
Consumer Installment | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 31,644 | 4,595 | 2,555 |
Consumer Installment | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 31,626 | 4,553 | 2,493 |
Consumer Installment | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | $ 18 | $ 42 | $ 62 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Property Plant And Equipment [Line Items] | |||
Premises and equipment, gross | $ 15,407 | $ 15,563 | $ 15,522 |
Less: Accumulated depreciation | 6,894 | 6,667 | 6,482 |
Premises and equipment, net | 8,513 | 8,896 | 9,040 |
Land | |||
Property Plant And Equipment [Line Items] | |||
Premises and equipment, gross | 1,416 | 1,416 | 1,416 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Premises and equipment, gross | 9,154 | 9,121 | 9,111 |
Equipment and Furniture | |||
Property Plant And Equipment [Line Items] | |||
Premises and equipment, gross | 4,712 | 4,896 | 4,847 |
Construction in Process | |||
Property Plant And Equipment [Line Items] | |||
Premises and equipment, gross | 2 | 7 | 25 |
Automobile | |||
Property Plant And Equipment [Line Items] | |||
Premises and equipment, gross | $ 123 | $ 123 | $ 123 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 184,000 | $ 756,000 | $ 702,000 |
Rent expense | $ 30,000 | $ 127,000 | $ 122,000 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Minimum Annual Rentals Under Non-Cancelable Agreements (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2020 | $ 121 |
2021 | 86 |
2022 | 77 |
2023 | 77 |
2024 | 77 |
Thereafter | 26 |
Total | $ 464 |
Deposits - Summary of Contractu
Deposits - Summary of Contractual Maturities of Certificate of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Deposits [Abstract] | |||
2020 | $ 35,523 | $ 26,537 | |
2021 | 22,448 | 13,022 | |
2022 | 16,021 | 6,657 | |
2023 | 10,691 | 15,358 | |
2024 | 7,965 | 10,773 | |
Thereafter | 12,589 | 15,163 | |
Total | $ 105,237 | $ 87,510 | $ 85,698 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Deposits [Abstract] | |||
Time certificates of deposit in denomination of $250,000 or more | $ 30,482 | $ 14,156 | $ 11,854 |
Deposits - Summary of Interest
Deposits - Summary of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Deposits [Abstract] | |||
Savings accounts | $ 6 | $ 31 | $ 15 |
Interest bearing checking accounts | 102 | 352 | 274 |
Market rate checking accounts | 48 | 274 | 107 |
Certificates of deposit | 312 | 1,629 | 1,024 |
Total | $ 468 | $ 2,286 | $ 1,420 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Line Of Credit Facility [Line Items] | |||
Federal Home Loan Bank advances | $ 0 | $ 7,570,000 | $ 7,570,000 |
FHLB | |||
Line Of Credit Facility [Line Items] | |||
Line of credit | 86,000,000 | 91,000,000 | 89,000,000 |
Line of credit amount outstanding | 8,000,000 | 5,000,000 | 5,000,000 |
Unsecured Federal Funds | |||
Line Of Credit Facility [Line Items] | |||
Line of credit | 12,500,000 | 12,500,000 | 12,500,000 |
Line of credit amount outstanding | $ 0 | $ 0 | $ 0 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank of Atlanta (FHLB) Advances (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | |
Federal Home Loan Bank Advances [Line Items] | |||
Advances from FHLB | $ 7,570,000 | $ 7,570,000 | $ 0 |
Octboer 26, 2020 | |||
Federal Home Loan Bank Advances [Line Items] | |||
Advances from FHLB, Advance Date | Oct. 25, 2017 | Oct. 25, 2017 | |
Advances from FHLB | $ 2,710,000 | $ 2,710,000 | |
Advances from FHLB, Interest Rate | 1.98% | 1.98% | |
Advances from FHLB, Maturity | Oct. 26, 2020 | Oct. 26, 2020 | |
Advances from FHLB, Rate | Fixed | Fixed | |
Advances from FHLB, Call Feature | None | None | |
October 25, 2019 | |||
Federal Home Loan Bank Advances [Line Items] | |||
Advances from FHLB, Advance Date | Oct. 25, 2017 | Oct. 25, 2017 | |
Advances from FHLB | $ 1,250,000 | $ 1,250,000 | |
Advances from FHLB, Interest Rate | 1.81% | 1.81% | |
Advances from FHLB, Maturity | Oct. 25, 2019 | Oct. 25, 2019 | |
Advances from FHLB, Rate | Fixed | Fixed | |
Advances from FHLB, Call Feature | None | None | |
November 13, 2019 | |||
Federal Home Loan Bank Advances [Line Items] | |||
Advances from FHLB, Advance Date | Nov. 13, 2017 | Nov. 13, 2017 | |
Advances from FHLB | $ 1,190,000 | $ 1,190,000 | |
Advances from FHLB, Interest Rate | 1.87% | 1.87% | |
Advances from FHLB, Maturity | Nov. 13, 2019 | Nov. 13, 2019 | |
Advances from FHLB, Rate | Fixed | Fixed | |
Advances from FHLB, Call Feature | None | None | |
November 13, 2020 | |||
Federal Home Loan Bank Advances [Line Items] | |||
Advances from FHLB, Advance Date | Nov. 13, 2017 | Nov. 13, 2017 | |
Advances from FHLB | $ 2,420,000 | $ 2,420,000 | |
Advances from FHLB, Interest Rate | 2.02% | 2.02% | |
Advances from FHLB, Maturity | Nov. 13, 2020 | Nov. 13, 2020 | |
Advances from FHLB, Rate | Fixed | Fixed | |
Advances from FHLB, Call Feature | None | None |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 10 | $ (174) | $ (231) | |
Rate reduction adjustment | 884 | |||
Deferred | 33 | 145 | 552 | |
Income tax expense (benefit) | $ 43 | $ 1,048 | $ (29) | $ 1,205 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference Between Income Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Income Taxes Rate to Income Before Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Statutory Federal tax rate | 21.00% | 34.00% | 21.00% | 21.00% | 24.25% |
Pretax income at statutory rate | $ 40 | $ 68 | $ 401 | ||
State income tax, net of federal benefit | 21 | 19 | 3 | ||
Cash Surrender Value of Life Insurance | (12) | (44) | (47) | ||
Permanent adjustments | (5) | (12) | |||
Other | (1) | (60) | (36) | ||
Tax reform deferred tax rate reduction adjustment | 884 | ||||
Income tax expense (benefit) | $ 43 | $ 1,048 | $ (29) | $ 1,205 |
Income Taxes - Schedule of Di_2
Income Taxes - Schedule of Difference Between Income Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Income Taxes Rate to Income Before Taxes (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate reconciliation, percentage | 23.00% | (9.00%) | 73.00% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Deferred income tax assets: | |||
Allowance for loan losses | $ 1,015 | $ 1,027 | $ 988 |
Deferred compensation | 814 | 908 | 923 |
Deferred gain on other real estate owned | 56 | 56 | |
State tax credits | 296 | 280 | 325 |
Unrealized loss on investment securities available for sale | 155 | 244 | |
Other | 38 | 14 | 36 |
Total deferred income tax assets | 2,163 | 2,440 | 2,572 |
Deferred income tax liabilities: | |||
FHLB stock dividends | 4 | 4 | |
Premises and equipment | 226 | 183 | 208 |
Unrealized gain on investment securities available-for-sale | 3 | ||
Other | 82 | 98 | 83 |
Total deferred income tax liabilities | 311 | 285 | 295 |
Net deferred income tax asset | $ 1,852 | $ 2,155 | $ 2,277 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory tax rate | 21.00% | 34.00% | 21.00% | 21.00% | 24.25% |
Decrease in net deferred tax assets due to TCJA | $ 884,000 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Apr. 30, 2017 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Note payable balance of ESOP | $ 2,686,246 | $ 2,750,592 | $ 2,750,592 | $ 2,954,990 |
Shares purchased by ESOP | 295,499 | |||
ESOP released shares | 35,400 | 23,600 | 23,600 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer on retirement benefits | $ 0 | $ 0 | $ 0 | |
Deferred compensation plan | 3,554,000 | 3,188,000 | 3,650,000 | $ 0 |
401 K | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Matching contributions to the plan | $ 23,000 | $ 113,000 | $ 93,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Apr. 27, 2017 | |
Stockholders Equity [Line Items] | ||||||
Deferred federal income tax liability | $ 311,000 | $ 285,000 | $ 295,000 | |||
Stock issued, price per share | $ 10 | |||||
Shares sold as percentage of outstanding shares of common stock | 46.00% | |||||
Dividend yield rate | 0.00% | |||||
Expected volatility rate | 20.35% | |||||
Risk-free interest rate | 2.41% | |||||
Expected average life | 7 years 6 months | |||||
Weighted average per share fair value of options | $ 2.97 | |||||
Number of stock options granted | 247,479 | |||||
Weighted average exercise price of stock options granted | $ 10.10 | |||||
Number of stock options exercised | 0 | |||||
Number of stock options forfeited | 0 | |||||
Weighted average remaining life of outstanding stock options | 4 years 3 months 18 days | |||||
Aggregate intrinsic value of outstanding stock options | $ 0 | |||||
Weighted average remaining life of exercisable stock options | 4 years 3 months 18 days | |||||
Aggregate intrinsic value of exercisable stock options | $ 0 | |||||
Stock-based compensation expense | 278,000 | |||||
Unrecognized compensation cost related to equity award grants | $ 1,800,000 | |||||
Unrecognized compensation cost expected remaining vesting period | 4 years 3 months 18 days | |||||
Restricted Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Number of shares granted | 132,974 | |||||
Weighted average grant date fair value | $ 10.10 | |||||
Number of shares vested | 0 | |||||
Number of shares forfeited | 0 | |||||
Community First Bancshares, MHC | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock ownership percentage | 54.00% | |||||
ESOP | ||||||
Stockholders Equity [Line Items] | ||||||
Percentage of common stock purchased | 3.92% | |||||
Federal | ||||||
Stockholders Equity [Line Items] | ||||||
Deferred federal income tax liability | $ 0 | |||||
Retained Earnings | ||||||
Stockholders Equity [Line Items] | ||||||
Deferred tax liabilities, tax deferred income | $ 3,625,000 | |||||
Common Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Sale of common stock shares | 3,467,595 | |||||
Common Stock | 2018 Equity Incentive Plan | Restricted Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Number of shares approved under the plan | 517,123 | |||||
Common Stock | 2018 Equity Incentive Plan | Stock Options | ||||||
Stockholders Equity [Line Items] | ||||||
Number of shares approved under the plan | 369,374 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Bank's Actual Capital Amounts And Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Banking And Thrift [Abstract] | |||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Actual, Amount | $ 62,349 | $ 60,880 | $ 60,658 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Actual, Ratio | 27.00% | 29.00% | 30.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) For Capital Adequacy Purposes, Amount | $ 10,267 | $ 9,292 | $ 9,155 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 14,830 | $ 13,422 | $ 13,223 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% | 6.50% |
Total Capital (to Risk-Weighted Assets) Actual, Amount | $ 65,217 | $ 63,479 | $ 63,218 |
Total Capital (to Risk-Weighted Assets) Actual, Ratio | 29.00% | 31.00% | 31.00% |
Total Capital (to Risk-Weighted Assets) For Capital Adequacy Purposes, Amount | $ 18,252 | $ 16,519 | $ 16,275 |
Total Capital (to Risk-Weighted Assets) For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 22,816 | $ 20,649 | $ 20,344 |
Total Capital (to Risk-Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | 10.00% |
Tier I Capital (to Risk-Weighted Assets) Actual, Amount | $ 62,349 | $ 60,880 | $ 60,658 |
Tier I Capital (to Risk-Weighted Assets) Actual, Ratio | 27.00% | 29.00% | 30.00% |
Tier I Capital (to Risk-Weighted Assets) For Capital Adequacy Purposes, Amount | $ 13,689 | $ 12,389 | $ 12,206 |
Tier I Capital (to Risk-Weighted Assets) For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | 6.00% |
Tier I Capital (to Risk-Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 18,252 | $ 16,519 | $ 16,275 |
Tier I Capital (to Risk-Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% | 8.00% |
Tier I Capital (to Average Assets) Actual, Amount | $ 62,349 | $ 60,880 | $ 60,658 |
Tier I Capital (to Average Assets) Actual, Ratio | 20.00% | 20.00% | 20.00% |
Tier I Capital (to Average Assets) For Capital Adequacy Purposes, Amount | $ 12,681 | $ 12,291 | $ 12,068 |
Tier I Capital (to Average Assets) For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 15,863 | $ 15,363 | $ 15,085 |
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% | 5.00% |
Regulatory Matters - Schedule_2
Regulatory Matters - Schedule of Reconciliation For Bank's Equity Capital Amounts Under GAAP To Tier 1 and Total Risk-based Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Stockholders’ equity | $ 77,167 | $ 76,398 | $ 76,383 | $ 76,796 |
Tier 1 risk-based capital | 62,349 | 60,880 | 60,658 | |
Eligible allowance for loan losses | 4,134 | 4,022 | 3,909 | $ 4,551 |
Total risk-based capital | 65,217 | 63,479 | 63,218 | |
Regulatory Capital | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Stockholders’ equity | 62,575 | 60,720 | 60,244 | |
Disallowed deferred taxes | (226) | 160 | 414 | |
Tier 1 risk-based capital | 62,349 | 60,880 | 60,658 | |
Eligible allowance for loan losses | 2,868 | 2,599 | 2,560 | |
Total risk-based capital | $ 65,217 | $ 63,479 | $ 63,218 |
Related Party Transactions - Su
Related Party Transactions - Summary of Activity for Related Party Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 1,047 | $ 1,037 |
Loans advanced | 3 | 96 |
Repayments | (13) | (99) |
Ending balance | $ 1,037 | $ 1,034 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Directors and Executive Officers | |||
Related Party Transaction [Line Items] | |||
Related party deposit liabilities | $ 2 | $ 1.3 | $ 1.7 |
Commitments - Schedule of Finan
Commitments - Schedule of Financial Instruments Contract Amounts Represent Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Commitments to Extend Credit | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Appropriate Contract Amount | $ 24,648 | $ 32,140 | $ 29,444 |
Commitments - Schedule of Dolla
Commitments - Schedule of Dollar Amount and Ranges of Rates of Commitments to Fund Fixed Rate Loans (Details) - Commitments to Extend Credit - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Commitments to extend credit, Amount | $ 3,842 | $ 11,921 | $ 9,239 |
Minimum | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Commitments to extend credit, Interest Rate Range | 2.50% | 2.50% | 2.30% |
Maximum | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Commitments to extend credit, Interest Rate Range | 7.75% | 9.25% | 8.25% |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, Estimated Fair Value | $ 3,818 | $ 21,145 | $ 21,360 |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale, Estimated Fair Value | $ 3,800 | $ 21,100 | $ 21,400 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 6,095 | $ 5,552 | $ 7,322 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Other real estate owned | 140 | 508 | 67 |
Impaired loans | 6,089 | 5,547 | 7,283 |
Total assets at fair value | 6,229 | 6,055 | 7,350 |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Other real estate owned | 140 | 508 | 67 |
Impaired loans | 6,089 | 5,547 | 7,283 |
Total assets at fair value | $ 6,229 | $ 6,055 | $ 7,350 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financial assets: | |||
Investment securities available-for-sale | $ 3,818 | $ 21,145 | $ 21,360 |
Investment securities held-to-maturity | 993 | 990 | |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 48,117 | 37,029 | 40,796 |
Investment securities available-for-sale | 3,818 | 21,145 | 21,360 |
Investment securities held-to-maturity | 1,000 | 1,000 | |
FHLB Stock | 278 | 580 | 580 |
Loans, net | 247,956 | 227,424 | 222,485 |
Bank owned life insurance | 7,462 | 7,251 | 7,195 |
Financial liabilities: | |||
Deposits | 238,181 | 219,181 | 216,387 |
FHLB advances | 7,570 | 7,570 | |
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 48,117 | 37,029 | 40,796 |
Investment securities available-for-sale | 3,818 | 21,145 | 21,360 |
Investment securities held-to-maturity | 993 | 990 | |
FHLB Stock | 278 | 580 | 580 |
Loans, net | 219,991 | 198,403 | 188,870 |
Bank owned life insurance | 7,462 | 7,251 | 7,195 |
Financial liabilities: | |||
Deposits | $ 239,340 | 219,319 | 216,280 |
FHLB advances | $ 7,656 | $ 7,706 |
Condensed Parent Company Only_3
Condensed Parent Company Only Financial Information - Summary of Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Assets | ||||
Cash in banks | $ 3,965 | $ 3,817 | $ 4,428 | |
Total assets | 319,294 | 307,695 | 305,984 | |
Liabilities : | ||||
Total liabilities | 242,127 | 231,297 | 229,601 | |
Stockholders' equity: | ||||
Total stockholders' equity | 77,167 | 76,398 | 76,383 | $ 76,796 |
Total liabilities and stockholders' equity | 319,294 | 307,695 | 305,984 | |
Parent | ||||
Assets | ||||
Cash in bank subsidiary | 11,302 | 12,742 | 13,223 | |
Cash in banks | 258 | 253 | 252 | |
Investment in subsidiary, at underlying equity | 62,574 | 60,720 | 60,245 | |
Loan receivable - ESOP | 2,686 | 2,751 | 2,751 | |
Other assets | 524 | 36 | ||
Total assets | 77,344 | 76,502 | 76,471 | |
Liabilities : | ||||
Other liabilities | 177 | 104 | 88 | |
Total liabilities | 177 | 104 | 88 | |
Stockholders' equity: | ||||
Total stockholders' equity | 77,167 | 76,398 | 76,383 | |
Total liabilities and stockholders' equity | $ 77,344 | $ 76,502 | $ 76,471 |
Condensed Parent Company Only_4
Condensed Parent Company Only Financial Information - Summary of Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Total interest income | $ 3,592 | $ 3,328 | $ 14,997 | $ 14,292 |
Non-interest expenses: | ||||
Other non-interest expense | 267 | 1,211 | 1,149 | |
Loss before income taxes | 191 | 87 | 326 | 1,654 |
Income tax benefit (expense) | (43) | (1,048) | 29 | (1,205) |
Net income (loss) | 148 | $ (961) | 355 | 449 |
Parent | ||||
Interest income: | ||||
Income on ESOP loan | 36 | 144 | 120 | |
Interest on bank deposits | 1 | 4 | 4 | |
Total interest income | 37 | 148 | 124 | |
Non-interest expenses: | ||||
Other non-interest expense | 90 | 797 | 371 | |
Loss before income taxes | (53) | (649) | (247) | |
Income tax benefit (expense) | 12 | 163 | 60 | |
Loss before equity in undistributed earnings of Bank | (41) | (486) | (187) | |
Equity in undistributed earnings of Bank | 189 | 841 | 635 | |
Net income (loss) | $ 148 | $ 355 | $ 449 |
Condensed Parent Company Only_5
Condensed Parent Company Only Financial Information - Summary of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 148 | $ 355 | $ 449 |
Adjustments to reconcile net income to net cash used in operating activities | |||
Net cash provided by (used in) operating activities | (1,285) | 1,636 | 2,444 |
Purchase of treasury stock | (420) | (600) | (248) |
Net cash provided by financing activities | 2,374 | 10,830 | 29,096 |
Parent | |||
Cash flows from operating activities: | |||
Net income | 148 | 355 | 449 |
Adjustments to reconcile net income to net cash used in operating activities | |||
Proceeds from ESOP loan | 209 | 190 | |
Equity in undistributed earnings of Bank | (189) | (841) | (635) |
Other | (19) | (558) | (82) |
Net cash provided by (used in) operating activities | (60) | (835) | (78) |
Purchase of treasury stock | (420) | (600) | (248) |
Net cash provided by financing activities | (420) | (600) | (248) |
Net change in cash and cash equivalents | (480) | (1,435) | (326) |
Cash and cash equivalents at beginning of period | 13,475 | 12,995 | 13,801 |
Cash and cash equivalents at end of period | $ 12,995 | $ 11,560 | $ 13,475 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Jan. 10, 2020USD ($)$ / shares |
ABB Financial Group, Inc. | |
Subsequent Events [Line Items] | |
Date of acquisition | Jan. 10, 2020 |
Common stock holder right to receive cash per share | $ / shares | $ 7.50 |
Aggregate consideration paid | $ 40.3 |
ABB Financial Group, Inc. | Preferred Stock | |
Subsequent Events [Line Items] | |
Redemption of preferred stock issued by acquiree | 5.9 |
Subsidiary of ABB Financial Group, Inc. | Trust Preferred Securities | |
Subsequent Events [Line Items] | |
Redemption of preferred stock issued by acquiree | $ 1.4 |