Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Dec. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SSB Bancorp, Inc. | |
Entity Central Index Key | 1,716,188 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 0 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 1,582,046 | $ 3,547,472 |
Interest-bearing deposits with other financial institutions | 4,735,146 | 3,284,007 |
Cash and cash equivalents | 6,317,192 | 6,831,479 |
Certificates of deposit | 1,140,000 | 1,390,000 |
Securities available for sale | 2,759,522 | 3,226,407 |
Securities held to maturity (fair value of $10,483, and $13,735, respectively) | 10,732 | 14,130 |
Loans held for sale | 19,941,867 | |
Loans | 138,876,707 | 104,567,788 |
Allowance for loan losses | (1,001,782) | (820,739) |
Net loans | 137,874,925 | 103,747,049 |
Accrued interest receivable | 628,006 | 523,055 |
Federal Home Loan Bank stock, at cost | 2,020,300 | 1,349,300 |
Premises and equipment, net | 4,313,606 | 1,679,206 |
Bank-owned life insurance | 1,593,180 | 1,556,907 |
Deferred tax asset, net | 540,284 | 597,769 |
Other assets | 1,083,895 | 457,277 |
TOTAL ASSETS | 158,281,642 | 141,314,446 |
Deposits: | ||
Noninterest-bearing demand | 426,712 | 459,076 |
Interest-bearing demand | 12,772,650 | 13,117,662 |
Money market | 14,697,704 | 13,685,926 |
Savings | 12,674,833 | 12,068,076 |
Time | 78,348,189 | 70,040,144 |
Total deposits | 118,920,088 | 109,370,884 |
Federal Home Loan Bank advances | 26,399,624 | 19,124,500 |
Advances by borrowers for taxes and insurance | 398,433 | 969,936 |
Accrued interest payable | 198,762 | 167,427 |
Other liabilities | 89,653 | 123,160 |
TOTAL LIABILITIES | 146,006,560 | 129,755,907 |
NET WORTH | ||
Retained earnings | 12,287,037 | 11,605,927 |
Accumulated other comprehensive loss | (11,955) | (47,388) |
TOTAL NET WORTH | 12,275,082 | 11,558,539 |
TOTAL LIABILITIES AND NET WORTH | $ 158,281,642 | $ 141,314,446 |
BALANCE SHEETS (Parentheticals)
BALANCE SHEETS (Parentheticals) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fair value of held-to-maturity securities | $ 10,483 | $ 13,735 |
STATEMENTS OF INCOME (unaudited
STATEMENTS OF INCOME (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME | ||||
Loans, including fees | $ 1,520,535 | $ 1,290,486 | $ 4,625,357 | $ 3,709,962 |
Interest-bearing deposits with other financial institutions | 17,655 | 5,655 | 35,110 | 14,830 |
Certificates of deposit | 4,425 | 7,123 | 18,444 | 21,476 |
Investment securities: | ||||
Taxable | 27,581 | 22,176 | 77,087 | 65,753 |
Exempt from federal income tax | 8,652 | 11,294 | 28,081 | 31,022 |
Total interest income | 1,578,848 | 1,336,734 | 4,784,079 | 3,843,043 |
INTEREST EXPENSE | ||||
Deposits | 444,182 | 398,329 | 1,281,396 | 1,113,714 |
Federal Home Loan Bank advances | 140,062 | 115,691 | 400,191 | 347,082 |
Total interest expense | 584,244 | 514,020 | 1,681,587 | 1,460,796 |
NET INTEREST INCOME | 994,604 | 822,714 | 3,102,492 | 2,382,247 |
Provision for loan losses | 61,050 | 25,403 | 181,043 | 116,696 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 933,554 | 797,311 | 2,921,449 | 2,265,551 |
NONINTEREST INCOME | ||||
Securities gains, net | 350 | 702 | ||
Gain on sale of loans | 82,552 | 56,221 | 272,259 | 124,896 |
Earnings on bank-owned life insurance | 12,338 | 5,007 | 36,273 | 37,362 |
Loan servicing fees | 27,801 | 23,909 | 67,056 | 48,594 |
Other | 7,266 | 8,636 | 18,326 | 30,799 |
Total noninterest income | 129,957 | 93,773 | 394,264 | 242,353 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 433,991 | 278,952 | 1,144,646 | 812,046 |
Occupancy | 65,169 | 56,522 | 185,718 | 174,886 |
Professional fees | 152,308 | 54,451 | 272,902 | 185,241 |
Federal deposit insurance | 25,500 | 22,500 | 87,500 | 67,500 |
Data processing | 71,981 | 51,266 | 209,711 | 155,390 |
Director fees | 20,938 | 16,880 | 58,478 | 50,951 |
Contributions and donations | 30,481 | 25,128 | 49,549 | 59,724 |
Other | 91,204 | 56,213 | 265,921 | 195,872 |
Total noninterest expense | 891,572 | 561,912 | 2,274,425 | 1,701,610 |
Income before income taxes | 171,939 | 329,172 | 1,041,288 | 806,294 |
Provision for income taxes | 42,571 | 119,139 | 360,178 | 277,034 |
NET INCOME | $ 129,368 | $ 210,033 | $ 681,110 | $ 529,260 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 129,368 | $ 210,033 | $ 681,110 | $ 529,260 |
Other comprehensive income (loss): | ||||
Net change in unrealized gain (loss) on available-for-sale securities | 987 | (29,257) | 54,035 | 12,160 |
Income tax effect | (335) | 9,947 | (18,371) | (4,136) |
Reclassification adjustment for net securities gains recognized in income | (350) | (702) | ||
Income tax effect included in provision for income taxes | 119 | 239 | ||
Other comprehensive income (loss), net of tax | 652 | (19,310) | 35,433 | 7,561 |
Total comprehensive income | $ 130,020 | $ 190,723 | $ 716,543 | $ 536,821 |
STATEMENTS OF CASH FLOWS (unaud
STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 681,110 | $ 529,260 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 181,043 | 116,696 |
Net amortization of investment securities | (8,584) | (11,454) |
Depreciation | 36,488 | 49,505 |
Origination of loans held for sale | (10,549,730) | (4,492,800) |
Proceeds from sale of loans | 10,821,989 | 4,617,696 |
Gain on sale of loans | (272,259) | (124,896) |
Deferred income tax provision (benefit) | 39,232 | (12,669) |
Investment securities gains, net | (350) | (702) |
Increase in accrued interest receivable | (104,951) | (83,132) |
Increase (decrease) in accrued interest payable | 14,759 | (8,494) |
Earnings on bank-owned life insurance | (36,273) | (37,362) |
Other, net | (660,125) | 105,741 |
Net cash provided by operating activities | 142,349 | 647,389 |
INVESTING ACTIVITIES | ||
Redemption of certificates of deposit | 250,000 | |
Investment securities available for sale: | ||
Purchases | (812,085) | |
Proceeds from sales | 313,643 | 155,250 |
Proceeds from principal repayments, calls, and maturities | 215,862 | 174,286 |
Investment securities held to maturity: | ||
Proceeds from principal repayments, calls, and maturities | 3,398 | 3,222 |
Redemption of Federal Home Loan Bank stock | 741,300 | 93,200 |
Purchase of Federal Home Loan Bank stock | (1,412,300) | (215,100) |
Purchases of loans | (9,104,155) | (14,850,890) |
Other increase in loans receivable, net | (12,197,765) | 642,275 |
Proceeds from sale of portfolio loans | 6,934,868 | |
Proceeds from sale of other real estate owned | 10,221 | |
Purchases of premises and equipment | (2,670,888) | (248,888) |
Net cash used for investing activities | (16,926,037) | (15,048,509) |
FINANCING ACTIVITIES | ||
Increase in deposits, net | 9,549,204 | 10,745,196 |
Decrease in advances by borrowers for taxes and insurance | (571,503) | (467,282) |
Repayment of Federal Home Loan Bank advances | (2,000,000) | |
Proceeds from Federal Home Loan Bank advances | 9,291,700 | |
Net cash provided by financing activities | 16,269,401 | 10,277,914 |
Decrease in cash and cash equivalents | (514,287) | (4,123,206) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 6,831,479 | 14,122,273 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 6,317,192 | 9,999,067 |
Cash paid during the year for: | ||
Interest | 1,666,828 | 1,469,290 |
Income taxes | 275,000 | $ 65,000 |
Noncash investing activities: | ||
Loans held for sale transferred to loans held for investment | $ 12,556,452 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
Nature Of Operations And Basis Of Presentation [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION SSB Bank (the “Bank”) provides a variety of financial services to individuals and corporate customers through its offices in Pittsburgh, Pennsylvania. The Bank’s primary deposit products are passbook savings accounts, money market accounts, and certificates of deposit. Its primary lending products are commercial mortgage loans and single-family residential loans. The Bank is subject to regulation and supervision by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking and Securities. The interim unaudited financial statements at September 30, 2017, and for the three and nine months ended September 30, 2017 and 2016, are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. These are the only adjustments reflected in such unaudited financial statements. The results of operations for the three and nine months ended September 30, 2017, are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2017, or any other period. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Balance Sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For further information, refer to the financial statements and accompanying notes included in the definitive prospectus of SSB Bancorp, Inc. (the “Company”) dated November 13, 2017 (the “Prospectus”), as filed with the Securities and Exchange Commission on November 20, 2017. |
RECENT ACCOUNTING STANDARDS
RECENT ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING STANDARDS | 2. RECENT ACCOUNTING STANDARDS On April 5, 2012, the Jumpstart Our Business Startups Act (the "JOBS Act") was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies and define an "emerging growth company." As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company intends to take advantage of the benefits of extended transition periods. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to non-issuer companies. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers , Revenue Recognition In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings , Revenue from Contracts with Customers (Topic 606); , Leases (Topic 842); , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 9 Months Ended |
Sep. 30, 2017 | |
Available-for-sale Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE | 3. SECURITIES AVAILABLE FOR SALE The amortized cost, gross unrealized gains and losses, and fair values of securities available for sale are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 555,083 $ 554 $ (1,488 ) $ 554,149 Obligations of state and political subdivisions 1,627,262 3,447 (26,867 ) 1,603,842 Corporate bonds 401,341 2,991 - 404,332 U.S. treasury securities 193,951 3,248 - 197,199 Total $ 2,777,637 $ 10,240 $ (28,355 ) $ 2,759,522 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 647,832 $ 94 $ (3,368 ) $ 644,558 Obligations of state and political subdivisions 1,953,382 1,143 (75,578 ) 1,878,947 Corporate bonds 502,140 1,618 (591 ) 503,167 U.S. treasury securities 194,853 4,882 - 199,735 Total $ 3,298,207 $ 7,737 $ (79,537 ) $ 3,226,407 The amortized cost and fair value of investment securities available for sale by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities provide for periodic payments of principal and interest and have contractual maturities ranging from less than 1 year to 12 years. Due to expected repayment terms being significantly less than the underlying mortgage pool contractual maturities, estimated lives of these securities could be significantly shorter. September 30, 2017 Amortized Fair Cost Value Due within one year or less $ 185,703 $ 186,355 Due after one year through five years 1,101,308 1,110,342 Due after five years through ten years 389,883 387,749 Due after ten years 1,100,743 1,075,076 Total $ 2,777,637 $ 2,759,522 For the nine months ended September 30, 2017, proceeds from sales of investment securities available for sale were $313,643 with a gross realized gain of $350. For the nine months ended September 30, 2016, proceeds from sales of investment securities available for sale were $155,250 with a gross realized gain of $702. There were no sales of securities in the three months ended September 30, 2017 or 2016. |
SECURITIES HELD TO MATURITY
SECURITIES HELD TO MATURITY | 9 Months Ended |
Sep. 30, 2017 | |
Held-to-maturity Securities [Abstract] | |
SECURITIES HELD TO MATURITY | 4. SECURITIES HELD TO MATURITY The amortized cost, gross unrealized gains and losses, and fair values of securities held to maturity are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 10,732 $ - $ (249 ) $ 10,483 Total $ 10,732 $ - $ (249 ) $ 10,483 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 14,130 $ 344 $ (739 ) $ 13,735 Total $ 14,130 $ 344 $ (739 ) $ 13,735 The amortized cost and fair value of mortgage-backed securities by contractual maturity are shown below. Mortgage-backed securities provide for periodic payments of principal and interest and have contractual maturities ranging up to 11 years. Due to expected repayment terms being less than the underlying mortgage pool contractual maturities, estimated lives of these securities could be significantly shorter. September 30, 2017 Amortized Fair Cost Value Due after one year through five years $ 8,042 $ 7,856 Due after five years through ten years 894 878 Due after ten years 1,796 1,749 Total $ 10,732 $ 10,483 |
UNREALIZED LOSSES ON SECURITIES
UNREALIZED LOSSES ON SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
UNREALIZED LOSSES ON SECURITIES | 5. UNREALIZED LOSSES ON SECURITIES The following tables show the Bank’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position: September 30, 2017 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Mortgage-backed securities in government-sponsored entities $ 466,125 $ (1,737 ) $ - $ - $ 466,125 $ (1,737 ) Obligations of state and political subdivisions 509,275 (1,320 ) 399,401 (25,547 ) 908,676 (26,867 ) Total $ 975,400 $ (3,057 ) $ 399,401 $ (25,547 ) $ 1,374,801 $ (28,604 ) December 31, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Mortgage-backed securities in government-sponsored entities $ 520,549 $ (3,368 ) $ 14,130 $ (739 ) $ 534,679 $ (4,107 ) Obligations of state and political subdivisions 1,677,512 (75,578 ) - - 1,677,512 (75,578 ) Corporate bonds 99,505 (591 ) - - 99,505 (591 ) Total $ 2,297,566 $ (79,537 ) $ 14,130 $ (739 ) $ 2,311,696 $ (80,276 ) Management reviews the Bank’s positions quarterly. There were 15 investments that were temporarily impaired as of September 30, 2017, with aggregate depreciation of approximately 2 percent from the Bank’s amortized cost basis. There were 18 investments that were temporarily impaired as of December 31, 2016, with aggregate depreciation of less than 4 percent from the Bank’s amortized cost basis. The declines outlined in the above tables represent temporary declines and the Bank does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Bank has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and the declines are the result of interest rate changes, sector credit rating changes, or company-specific rating changes that are not expected to result in the noncollection of principal and interest during the period. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
LOANS | 6. LOANS The Bank’s loan portfolio summarized by category is as follows: September 30, December 31, 2017 2016 Mortgage loans: One-to-four family $ 78,161,693 $ 68,471,897 Commercial 44,734,372 25,207,378 122,896,065 93,679,275 Commercial and industrial 12,127,342 8,326,982 Consumer 1,881,451 1,164,886 Home equity lines of credit ("HELOC") 1,879,899 991,152 138,784,757 104,162,295 Third-party loan acquisition and other net origination costs 346,945 405,493 Discount on loans previously held for sale (254,995 ) - Allowance for loan losses (1,001,782 ) (820,739 ) Total $ 137,874,925 $ 103,747,049 The Bank’s primary business activity is with customers located in Pittsburgh and surrounding communities. The Bank’s loan portfolio consists predominantly of one-to-four family mortgage and commercial mortgage loans. These loans are typically secured by first-lien positions on the respective real estate properties and are subject to the Bank’s underwriting policies. During the normal course of business, the Bank may transfer a portion of a loan as a participation loan in order to manage portfolio risk. In order to be eligible for sales treatment, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties, and no loan holder can have the right to pledge or exchange the entire loan. The Bank had transferred $8,669,671 and $10,088,489 in participation loans as of September 30, 2017 and December 31, 2016, respectively, to other financial institutions. As of September 30, 2017 and December 31, 2016, all of these loans were being serviced by the Bank. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | 7. ALLOWANCE FOR LOAN LOSSES The allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet date. The following tables present, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the three and nine months ended September 30, 2017 and 2016, respectively: Mortgage Commercial Consumer Three months ended One-to-Four Mortgage and and September 30, 2017: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 488,009 $ 324,941 $ 70,466 $ 57,316 $ 940,732 Charge-offs - - - - - Recoveries - - - - - Provision 2,495 12,352 15,186 31,017 61,050 Ending balance $ 490,504 $ 337,293 $ 85,652 $ 88,333 $ 1,001,782 Mortgage Commercial Consumer Three months ended One-to-Four Mortgage and and September 30, 2016: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 564,801 $ 252,360 $ 46,777 $ 36,042 $ 899,980 Charge-offs - - - - - Recoveries - - - - - Provision (credit) 32,919 (15,609 ) 3,561 4,532 25,403 Ending balance $ 597,720 $ 236,751 $ 50,338 $ 40,574 $ 925,383 Mortgage Commercial Consumer Nine months ended One-to-Four Mortgage and and September 30, 2017: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 498,410 $ 228,763 $ 59,439 $ 34,127 $ 820,739 Charge-offs - - - - - Recoveries - - - - - Provision (credit) (7,906 ) 108,530 26,213 54,206 181,043 Ending balance $ 490,504 $ 337,293 $ 85,652 $ 88,333 $ 1,001,782 Mortgage Commercial Consumer Nine months ended One-to-Four Mortgage and and September 30, 2016: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 605,602 $ 172,861 $ 28,039 $ 32,185 $ 838,687 Charge-offs (30,000 ) - - - (30,000 ) Recoveries - - - - - Provision 22,118 63,890 22,299 8,389 116,696 Ending balance $ 597,720 $ 236,751 $ 50,338 $ 40,574 $ 925,383 The following tables summarize the loan portfolio and allowance for loan losses by the primary segments of the loan portfolio as of September 30, 2017 and December 31, 2016. Mortgage Commercial Consumer Allowance for loan One-to-Four Mortgage and and losses: Family Commercial Industrial HELOC Total September 30, 2017: Loans deemed impaired $ 6,742 $ - $ - $ 28,072 $ 34,814 Loans not deemed impaired 483,762 337,293 85,652 60,261 966,968 Ending balance $ 490,504 $ 337,293 $ 85,652 $ 88,333 $ 1,001,782 Loans: September 30, 2017: Loans deemed impaired $ 1,878,282 $ 198,990 $ - $ 50,096 $ 2,127,368 Loans not deemed impaired 76,283,411 44,535,382 12,127,342 3,711,254 136,657,389 Ending balance $ 78,161,693 $ 44,734,372 $ 12,127,342 $ 3,761,350 $ 138,784,757 Mortgage Commercial Consumer Allowance for loan One-to-Four Mortgage and and losses: Family Commercial Industrial HELOC Total December 31, 2016: Loans deemed impaired $ 32,131 $ - $ - $ - $ 32,131 Loans not deemed impaired 466,279 228,763 59,439 34,127 788,608 Ending balance $ 498,410 $ 228,763 $ 59,439 $ 34,127 $ 820,739 Loans: December 31, 2016: Loans deemed impaired $ 1,715,421 $ 513,163 $ - $ - $ 2,228,584 Loans not deemed impaired 66,756,476 24,694,215 8,326,982 2,156,038 101,933,711 Ending balance $ 68,471,897 $ 25,207,378 $ 8,326,982 $ 2,156,038 $ 104,162,295 The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary. September 30, 2017 December 31, 2016 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no allowance recorded: Mortgage loans: One-to-four family $ 1,740,295 $ 1,740,295 $ - $ 1,547,676 $ 1,547,676 $ - Commercial 198,990 198,990 - 513,163 513,163 - With an allowance recorded: Mortgage loans: One-to-four family 137,987 137,987 6,742 167,745 167,745 32,131 Consumer and HELOC 50,096 50,096 28,072 - - - Totals: Mortgage loans: One-to-four family 1,878,282 1,878,282 6,742 1,715,421 1,715,421 32,131 Commercial 198,990 198,990 - 513,163 513,163 - Consumer and HELOC 50,096 50,096 28,072 - - - Total $ 2,127,368 $ 2,127,368 $ 34,814 $ 2,228,584 $ 2,228,584 $ 32,131 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated. Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no allowance recorded: Mortgage loans: One-to-four family $ 1,832,617 $ 52,335 $ 1,605,612 $ 1,687 Commercial 200,988 803 769,830 30,204 With an allowance recorded: Mortgage loans: One-to-four family 138,910 2,273 170,177 595 Consumer and HELOC 16,699 - - - Totals: Mortgage loans: One-to-four family 1,971,527 54,608 1,775,789 2,282 Commercial 200,988 803 769,830 30,204 Consumer and HELOC 16,699 - - - Total $ 2,189,213 $ 55,411 $ 2,545,619 $ 32,486 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no allowance recorded: Mortgage loans: One-to-four family $ 1,788,550 $ 76,546 $ 1,612,870 $ 35,579 Commercial 202,584 96,606 898,659 104,071 Consumer and HELOC - - - - With an allowance recorded: Mortgage loans: One-to-four family 141,029 6,254 173,100 9,062 Commercial - - - - Consumer and HELOC 5,566 - - - Totals: Mortgage loans: One-to-four family 1,929,579 82,800 1,785,970 44,641 Commercial 202,584 96,606 898,659 104,071 Consumer and HELOC 5,566 - - - Total $ 2,137,729 $ 179,406 $ 2,684,629 $ 148,712 Age Analysis of Past-Due Loans by Class Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories: September 30, 2017 90 Days 90 Days or 30-59 Days 60-89 Days or Greater Total Past Total Loans Greater Still Past Due Past Due Past Due Due Current Receivable Accruing Mortgage loans: One-to-four family $ 805,344 $ 898,032 $ 1,067,829 $ 2,771,205 $ 75,390,488 $ 78,161,693 $ 17,934 Commercial 391,043 57,573 198,990 647,606 44,086,766 44,734,372 - Commercial and industrial - - 8,480 8,480 12,118,862 12,127,342 8,480 Consumer and HELOC 38,342 - 55,460 93,802 3,667,548 3,761,350 5,363 Total $ 1,234,729 $ 955,605 $ 1,330,759 $ 3,521,093 $ 135,263,664 $ 138,784,757 $ 31,777 December 31, 2016 90 Days 90 Days or 30-59 Days 60-89 Days or Greater Total Past Total Loans Greater Still Past Due Past Due Past Due Due Current Receivable Accruing Mortgage loans: One-to-four family $ 1,032,734 $ 440,259 $ 1,355,795 $ 2,828,788 $ 65,643,109 $ 68,471,897 $ 137,923 Commercial 302,576 - 203,382 505,958 24,701,420 25,207,378 - Commercial and industrial 263,376 26,664 9,290 299,330 8,027,652 8,326,982 9,290 Consumer and HELOC 18,217 4,449 53,332 75,998 2,080,040 2,156,038 53,332 Total $ 1,616,903 $ 471,372 $ 1,621,799 $ 3,710,074 $ 100,452,221 $ 104,162,295 $ 200,545 The following table presents the loans on nonaccrual status, by class: September 30, December 31, 2017 2016 Mortgage loans: One-to-four family $ 1,653,036 $ 1,314,836 Commercial 198,990 203,382 Commercial and industrial - - Consumer and HELOC 50,096 - Total $ 1,902,122 $ 1,518,218 Credit Quality Information 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 commercial loans individually by classifying the loans as to their credit risk. The Bank uses a nine-grade internal loan rating system for commercial mortgage loans and commercial and industrial loans as follows: · Loans rated 1, 2, 3, 4, and 5: · Loans rated 6: · Loans rated 7: · Loans rated 8: · Loans rated 9: The risk category of loans by class is as follows: September 30, 2017 December 31, 2016 Mortgage Commercial and Mortgage Commercial and Commercial Industrial Commercial Industrial Loans rated 1 - 5 $ 44,252,166 $ 12,103,576 $ 24,713,074 $ 8,291,028 Loans rated 6 283,216 23,766 290,922 35,954 Loans rated 7 198,990 - 203,382 - Ending balance $ 44,734,372 $ 12,127,342 $ 25,207,378 $ 8,326,982 There were no loans rated 8 or 9 at September 30, 2017, or December 31, 2016. For one-to-four family mortgage and consumer and HELOC loans, the Bank evaluates credit quality based on whether the loan is considered to be performing or nonperforming. Loans are generally considered to be nonperforming when they are placed on nonaccrual or become 90 days past due. The following table presents the balances of loans by class based on payment performance: September 30, 2017 December 31, 2016 Mortgage Consumer Mortgage Consumer One-to-Four and One-to-Four and Family HELOC Family HELOC Performing $ 76,490,722 $ 3,705,890 $ 67,116,102 $ 2,102,706 Nonperforming 1,670,971 55,460 1,355,795 53,332 Total $ 78,161,693 $ 3,761,350 $ 68,471,897 $ 2,156,038 Troubled Debt Restructurings During the nine months ended September 30, 2017, the Bank modified three loans as troubled debt restructurings. In each of these instances where loans have been modified in troubled debt restructurings, the pre- and post-modified balances are the same. The concession granted by the Bank was an extension of the maturity date for all three of the loans noted. There were no loans modified as troubled debt restructurings during 2016. As of September 30, 2017 and December 31, 2016, the Bank allocated $6,742 and $32,131, respectively, within the allowance for loan losses related to all loans modified as troubled debt restructurings. The Bank did not have any loans modified as a troubled debt restructuring in the preceding 12 months that subsequently defaulted in the current reporting periods. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | 8. REGULATORY CAPITAL REQUIREMENTS The Bank is subject to various regulatory capital requirements administered by federal and state 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 measure of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Federal banking regulations require minimum capital ratios as set forth in the following table. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5 percent of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. The capital conservation buffer is being phased in over three years, beginning on January 1, 2016, with an initial phase-in comprising 0.625 percent. Also, certain new deductions from and adjustments to regulatory capital and risk-weighted assets are being phased in over several years. Management believes that the Bank's capital levels will remain characterized as "well capitalized" throughout the phase-in periods. As of September 30, 2017, the capital conservation buffer was 1.25%. As of September 30, 2017, the most recent notification from the Federal Deposit Insurance Corporation 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 capital leverage ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed the Bank's category. The Bank's actual capital amounts and ratios as of September 30, 2017 and December 31, 2016, are also presented in the table. September 30, December 31, 2017 2016 Amount Ratio Amount Ratio Common equity Tier 1 capital (to risk-weighted assets) Actual $ 12,287,037 9.87 % $ 11,605,927 11.35 % For capital adequacy purposes 5,602,770 4.50 4,603,005 4.50 To be well capitalized 8,092,890 6.50 6,648,785 6.50 Tier 1 capital (to risk-weighted assets) Actual $ 12,287,037 9.87 % $ 11,605,927 11.35 % For capital adequacy purposes 7,470,360 6.00 6,137,340 6.00 To be well capitalized 9,960,480 8.00 8,183,120 8.00 Total capital (to risk-weighted assets) Actual $ 13,288,819 10.67 % $ 12,426,666 12.15 % For capital adequacy purposes 9,960,480 8.00 8,183,120 8.00 To be well capitalized 12,450,600 10.00 10,228,900 10.00 Tier 1 capital (to average assets) Actual $ 12,287,037 7.93 % $ 11,605,927 8.20 % For capital adequacy purposes 6,200,880 4.00 5,661,360 4.00 To be well capitalized 7,751,100 5.00 7,076,700 5.00 |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 9. COMMITMENTS In the normal course of business, the Bank makes various commitments that are not reflected in the Bank’s financial statements. The Bank offers such products to enable its customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the Balance Sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other parties to the financial instruments is represented by the contractual amounts as disclosed. The Bank minimizes its exposure to credit loss under these commitments by subjecting them to credit approval and review procedures and collateral requirements as deemed necessary. Off-balance sheet commitments consist of the following: September 30, December 31, 2017 2016 Commitments to extend credit $ 4,504,977 $ 7,876,738 Construction unadvanced funds 9,214,160 5,087,261 Unused lines of credit 3,607,967 2,460,320 $ 17,327,104 $ 15,424,319 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the loan agreement. These commitments consisted primarily of mortgage loan commitments. The Bank uses the same credit policies in making loan commitments and conditional obligations as it does for on-balance sheet instruments. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, as deemed necessary, is based upon management’s credit evaluation in compliance with the Bank’s lending policy guidelines. In August 2017, the Bank entered into employment agreements with three executives that provide for a base salary and certain other benefits. The initial terms of the agreements are for three years with annual renewals thereafter. In the event of the executive’s termination without cause, as defined, the executive will receive a lump-sum cash payment equal to the amount remaining under the contract. Additional benefits are payable upon a change in control, as defined. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad pricing levels are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data, when available. Fair values for securities are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique that is widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark-quoted securities. Fair values of securities determined by quoted prices in active markets, when available, are classified as Level I. At September 30, 2017 and December 31, 2016, fair value measurements were obtained from a third-party pricing service and not adjusted by management. Transfers are recognized at the end of the reporting period, as applicable. The following tables present the assets reported on the Balance Sheets at their fair value by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Mortgage-backed securities in government-sponsored entities $ - $ 554,149 $ - $ 554,149 Obligations of state and political subdivisions - 1,603,842 - 1,603,842 Corporate bonds - 404,332 - 404,332 U.S. treasury securities 197,199 - - 197,199 December 31, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Mortgage-backed securities in government-sponsored entities $ - $ 644,558 $ - $ 644,558 Obligations of state and political subdivisions - 1,878,947 - 1,878,947 Corporate bonds - 503,167 - 503,167 U.S. treasury securities 199,735 - - 199,735 September 30, 2017 Level I Level II Level III Total Fair value measurements on a nonrecurring basis: Other real estate owned $ - $ - $ 59,932 $ 59,932 December 31, 2016 Level I Level II Level III Total Fair value measurements on a nonrecurring basis: Loans held for sale $ - $ - $ 19,941,867 $ 19,941,867 Other real estate owned - - 59,932 59,932 Loans Held For Sale Fair values are estimated based on the discounted value of contractual cash flows adjusted for current market inputs including interest rates and prepayment speeds, as well as adjustments for the credit quality of the borrowers. Impaired Loans Certain collateral-dependent impaired loans have been adjusted to fair value based on the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, along with management’s assumptions in various factors, such as selling costs and discounts for time since last appraised. Other Real Estate Owned Other real estate owned is measured at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management. The assets are carried at fair value, less cost to sell. Income and expense from operations and changes in valuation allowance are included in other noninterest expense. Level III Inputs The following table provides the significant unobservable inputs used in the fair value measurement process for items valued using Level III techniques: Fair Value at Range September 30, Valuation (Weighted 2017 Valuation Techniques Unobservable Inputs Average) Other real estate owned $ 59,932 Appraised collateral values Discount for time since appraisal 10% (10%) Selling costs 10% (10%) Fair Value at Range December 31, Valuation (Weighted 2016 Valuation Techniques Unobservable Inputs Average) Loans held for sale $ 19,941,867 Discounted cash flow Discount rate 4.16% - 5.32% (4.70%) Conditional prepayment rate 7.50% - 42.96% (12.63%) Other real estate owned 59,932 Appraised collateral values Discount for time since appraisal 10% (10%) Selling costs 10% (10%) The estimated fair values of the Bank’s financial instruments are as follows: September 30, 2017 Carrying Fair Level I Level II Level III Financial assets: Cash and cash equivalents $ 6,317,192 $ 6,317,192 $ 6,317,192 $ - $ - Certificates of deposit 1,140,000 1,131,000 - 1,131,000 - Investment securities: Available for sale 2,759,522 2,759,522 197,199 2,562,323 - Held to maturity 10,732 10,483 - 10,483 - Loans, net 137,874,925 137,179,375 - - 137,179,375 Accrued interest receivable 628,006 628,006 - 628,006 - FHLB stock 2,020,300 2,020,300 - - 2,020,300 Financial liabilities: Deposits 118,920,088 119,311,088 40,571,899 - 78,739,189 FHLB advances 26,399,624 26,648,111 - 26,684,111 - Accrued interest payable 198,762 198,762 - 198,762 - December 31, 2016 Carrying Fair Level I Level II Level III Financial assets: Cash and cash equivalents $ 6,831,479 $ 6,831,479 $ 6,831,479 $ - $ - Certificates of deposit 1,390,000 1,426,000 - 1,426,000 - Investment securities: Available for sale 3,226,407 3,226,407 199,735 3,026,672 - Held to maturity 14,130 13,735 - 13,735 - Loans held for sale 19,941,867 19,941,867 - - 19,941,867 Loans, net 103,747,049 104,569,049 - - 104,569,049 Accrued interest receivable 523,055 523,055 - 523,055 - FHLB stock 1,349,300 1,349,300 - - 1,349,300 Financial liabilities: Deposits 109,370,884 109,892,884 39,330,740 - 70,562,144 FHLB advances 19,124,500 19,139,500 - 19,139,500 - Accrued interest payable 167,427 167,427 - 167,427 - Financial instruments are defined as cash, evidence of an ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms. Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 11. FAIR VALUE OF FINANCIAL INSTRUMENTS If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formulas or simulation modeling. Since many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated fair values are based may have a significant impact on the resulting estimated fair values. Since certain assets, such as deferred tax assets and premises and equipment, are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Bank. Cash and Cash Equivalents, Accrued Interest Receivable, FHLB Stock, and Accrued Interest Payable The fair value is equal to the current carrying value. Certificates of Deposit The fair values of certificates of deposit are based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. Securities Fair values for securities are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique that is widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark-quoted securities. Fair values of securities determined by quoted prices in active markets, when available, are classified as Level I. Loans Held for Sale Fair values are estimated using current market inputs including interest rates and prepayment speeds, as well as adjustments for the credit quality of the borrowers. Loans, Net The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Certain collateral dependent impaired loans have been adjusted to fair value based on the loan's collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, along with management's assumptions in various factors, such as selling costs and discounts for time since last appraised. FHLB Advances The fair value of FHLB advances is based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. Deposits The fair values of certificates of deposit are based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. Demand, savings, and money market deposit accounts are valued at the amount payable on demand as of the period end. Commitments These financial instruments are generally not subject to sale, and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. The contractual amounts of unfunded commitments are presented in Note 10. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax: Net Unrealized Gain (Loss) on Securities Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Accumulated other comprehensive income (loss), beginning of period $ (12,607 ) $ 33,400 $ (47,388 ) $ 6,529 Other comprehensive income (loss) on securities before reclassification, net of tax 652 (19,310 ) 35,664 8,024 Amounts reclassified from accumulated other comprehensive income (loss), net of tax - - (231 ) (463 ) Net other comprehensive income (loss) 652 (19,310 ) 35,433 7,561 Accumulated other comprehensive income (loss), end of period $ (11,955 ) $ 14,090 $ (11,955 ) $ 14,090 |
SUBSEQUENT EVENTS - REORGANlZAT
SUBSEQUENT EVENTS - REORGANlZATION AND STOCK OFFERING | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS - REORGANlZATION AND STOCK OFFERING | 13. SUBSEQUENT EVENTS - REORGANlZATION AND STOCK OFFERING Reorganization and Stock Offering On August 23, 2017, the Board of Trustees of the Bank adopted a Plan of Mutual Holding Company Reorganization and Minority Stock Issuance (the “Plan”). The Pennsylvania Department of Banking and Securities issued its approval in a letter of non-objection dated November 13, 2017. The Plan was approved by the affirmative vote of a majority of the total votes eligible to be cast by the voting depositors of the Bank at a special meeting held on December 21, 2017. Pursuant to the Plan, the Bank proposes to convert into the mutual holding company form of ownership by converting to the stock form of ownership and issuing all its outstanding stock to SSB Bancorp, Inc. (the “Corporation”). Pursuant to the Plan, the Corporation will determine the total offering value and number of shares of common stock to be issued based upon an independent appraiser’s valuation. The stock will be priced at $10.00 per share. The Corporation’s common stock will first be offered to eligible depositors of the Bank in a subscription offering. In addition, the Bank’s Board of Trustees will adopt an employee stock ownership plan (the “ESOP”) which will subscribe for up to 3.92% of the common stock to be outstanding following the reorganization and offering. The Corporation will be organized as a corporation under the laws of the State of Maryland and the public will own approximately 45% of the outstanding common stock of the Corporation with the remaining 55% of the outstanding common stock issued to SSB Bancorp, MHC, a mutual holding company organized under the laws of the Commonwealth of Pennsylvania, upon completion of the reorganization. The costs of issuing the common stock will be deferred and deducted from the sales proceeds of the offering. If the reorganization and offering are unsuccessful, all deferred costs will be charged to operations. The Bank had incurred deferred reorganization costs of $471,000 as of September 30, 2017. The reorganization will be accounted for as a change in corporate form with the historic basis of the Bank's assets, liabilities and equity unchanged as a result. Tax Cuts and Jobs Act On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (H.R. 1) (the “Act”). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 34% to 21%. The rate reduction would take effect on January 1, 2018. As of September 30, 2017, the Bank had net deferred tax assets totaling $540,000. Under U.S. generally accepted accounting principles, the Bank uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Bank’s net deferred tax asset as of September 30, 2017 was determined based on the current enacted federal tax rate of 34% prior to the passage of the Act. As a result of the reduction in the corporate income tax rate to 21% from 34% under the Act, the Bank will need to revalue its net deferred tax asset as of December 31, 2017. The Bank estimates that this will result in a reduction in the value of its net deferred tax asset of approximately $203,000, which would be recorded as additional income tax expense in the Bank’s statement of operations in the fourth quarter of 2017. The Bank’s revaluation of its deferred tax assets is subject to further clarification of the new law that cannot be estimated at this time. As such, the Bank is unable to make a final determination of the effect on quarterly and annual earnings for the period ending December 31, 2017, at this time. Additionally, the Bank is evaluating the other provisions of the Act and is unable to assess the effect on the Bank at this time. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING STANDARDS On April 5, 2012, the Jumpstart Our Business Startups Act (the "JOBS Act") was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies and define an "emerging growth company." As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company intends to take advantage of the benefits of extended transition periods. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to non-issuer companies. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers , Revenue Recognition In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings , Revenue from Contracts with Customers (Topic 606); , Leases (Topic 842); , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Available-for-sale Securities [Abstract] | |
Schedule of securities available for sale | September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 555,083 $ 554 $ (1,488 ) $ 554,149 Obligations of state and political subdivisions 1,627,262 3,447 (26,867 ) 1,603,842 Corporate bonds 401,341 2,991 - 404,332 U.S. treasury securities 193,951 3,248 - 197,199 Total $ 2,777,637 $ 10,240 $ (28,355 ) $ 2,759,522 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 647,832 $ 94 $ (3,368 ) $ 644,558 Obligations of state and political subdivisions 1,953,382 1,143 (75,578 ) 1,878,947 Corporate bonds 502,140 1,618 (591 ) 503,167 U.S. treasury securities 194,853 4,882 - 199,735 Total $ 3,298,207 $ 7,737 $ (79,537 ) $ 3,226,407 |
Schedule of contractual maturities | September 30, 2017 Amortized Fair Cost Value Due within one year or less $ 185,703 $ 186,355 Due after one year through five years 1,101,308 1,110,342 Due after five years through ten years 389,883 387,749 Due after ten years 1,100,743 1,075,076 Total $ 2,777,637 $ 2,759,522 |
SECURITIES HELD TO MATURITY (Ta
SECURITIES HELD TO MATURITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Held-to-maturity Securities [Abstract] | |
Schedule of securities held to maturity | September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 10,732 $ - $ (249 ) $ 10,483 Total $ 10,732 $ - $ (249 ) $ 10,483 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Mortgage-backed securities in government-sponsored entities $ 14,130 $ 344 $ (739 ) $ 13,735 Total $ 14,130 $ 344 $ (739 ) $ 13,735 |
Schedule of contractual maturities | September 30, 2017 Amortized Fair Cost Value Due after one year through five years $ 8,042 $ 7,856 Due after five years through ten years 894 878 Due after ten years 1,796 1,749 Total $ 10,732 $ 10,483 |
UNREALIZED LOSSES ON SECURITI23
UNREALIZED LOSSES ON SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of unrealized loss on securities | September 30, 2017 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Mortgage-backed securities in government-sponsored entities $ 466,125 $ (1,737 ) $ - $ - $ 466,125 $ (1,737 ) Obligations of state and political subdivisions 509,275 (1,320 ) 399,401 (25,547 ) 908,676 (26,867 ) Total $ 975,400 $ (3,057 ) $ 399,401 $ (25,547 ) $ 1,374,801 $ (28,604 ) December 31, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Mortgage-backed securities in government-sponsored entities $ 520,549 $ (3,368 ) $ 14,130 $ (739 ) $ 534,679 $ (4,107 ) Obligations of state and political subdivisions 1,677,512 (75,578 ) - - 1,677,512 (75,578 ) Corporate bonds 99,505 (591 ) - - 99,505 (591 ) Total $ 2,297,566 $ (79,537 ) $ 14,130 $ (739 ) $ 2,311,696 $ (80,276 ) |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Mortgage, Commercial and industrial loan | September 30, December 31, 2017 2016 Mortgage loans: One-to-four family $ 78,161,693 $ 68,471,897 Commercial 44,734,372 25,207,378 122,896,065 93,679,275 Commercial and industrial 12,127,342 8,326,982 Consumer 1,881,451 1,164,886 Home equity lines of credit ("HELOC") 1,879,899 991,152 138,784,757 104,162,295 Third-party loan acquisition and other net origination costs 346,945 405,493 Discount on loans previously held for sale (254,995 ) - Allowance for loan losses (1,001,782 ) (820,739 ) Total $ 137,874,925 $ 103,747,049 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of changes in the allowance for loan losses and the recorded investment in loans | Mortgage Commercial Consumer Three months ended One-to-Four Mortgage and and September 30, 2017: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 488,009 $ 324,941 $ 70,466 $ 57,316 $ 940,732 Charge-offs - - - - - Recoveries - - - - - Provision 2,495 12,352 15,186 31,017 61,050 Ending balance $ 490,504 $ 337,293 $ 85,652 $ 88,333 $ 1,001,782 Mortgage Commercial Consumer Three months ended One-to-Four Mortgage and and September 30, 2016: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 564,801 $ 252,360 $ 46,777 $ 36,042 $ 899,980 Charge-offs - - - - - Recoveries - - - - - Provision (credit) 32,919 (15,609 ) 3,561 4,532 25,403 Ending balance $ 597,720 $ 236,751 $ 50,338 $ 40,574 $ 925,383 Mortgage Commercial Consumer Nine months ended One-to-Four Mortgage and and September 30, 2017: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 498,410 $ 228,763 $ 59,439 $ 34,127 $ 820,739 Charge-offs - - - - - Recoveries - - - - - Provision (credit) (7,906 ) 108,530 26,213 54,206 181,043 Ending balance $ 490,504 $ 337,293 $ 85,652 $ 88,333 $ 1,001,782 Mortgage Commercial Consumer Nine months ended One-to-Four Mortgage and and September 30, 2016: Family Commercial Industrial HELOC Total Allowance for loan losses: Beginning balance $ 605,602 $ 172,861 $ 28,039 $ 32,185 $ 838,687 Charge-offs (30,000 ) - - - (30,000 ) Recoveries - - - - - Provision 22,118 63,890 22,299 8,389 116,696 Ending balance $ 597,720 $ 236,751 $ 50,338 $ 40,574 $ 925,383 |
Schedule of primary segments of the loan portfolio | Mortgage Commercial Consumer Allowance for loan One-to-Four Mortgage and and losses: Family Commercial Industrial HELOC Total September 30, 2017: Loans deemed impaired $ 6,742 $ - $ - $ 28,072 $ 34,814 Loans not deemed impaired 483,762 337,293 85,652 60,261 966,968 Ending balance $ 490,504 $ 337,293 $ 85,652 $ 88,333 $ 1,001,782 Loans: September 30, 2017: Loans deemed impaired $ 1,878,282 $ 198,990 $ - $ 50,096 $ 2,127,368 Loans not deemed impaired 76,283,411 44,535,382 12,127,342 3,711,254 136,657,389 Ending balance $ 78,161,693 $ 44,734,372 $ 12,127,342 $ 3,761,350 $ 138,784,757 Mortgage Commercial Consumer Allowance for loan One-to-Four Mortgage and and losses: Family Commercial Industrial HELOC Total December 31, 2016: Loans deemed impaired $ 32,131 $ - $ - $ - $ 32,131 Loans not deemed impaired 466,279 228,763 59,439 34,127 788,608 Ending balance $ 498,410 $ 228,763 $ 59,439 $ 34,127 $ 820,739 Loans: December 31, 2016: Loans deemed impaired $ 1,715,421 $ 513,163 $ - $ - $ 2,228,584 Loans not deemed impaired 66,756,476 24,694,215 8,326,982 2,156,038 101,933,711 Ending balance $ 68,471,897 $ 25,207,378 $ 8,326,982 $ 2,156,038 $ 104,162,295 |
Scheduled of impaired loans by class | September 30, 2017 December 31, 2016 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no allowance recorded: Mortgage loans: One-to-four family $ 1,740,295 $ 1,740,295 $ - $ 1,547,676 $ 1,547,676 $ - Commercial 198,990 198,990 - 513,163 513,163 - With an allowance recorded: Mortgage loans: One-to-four family 137,987 137,987 6,742 167,745 167,745 32,131 Consumer and HELOC 50,096 50,096 28,072 - - - Totals: Mortgage loans: One-to-four family 1,878,282 1,878,282 6,742 1,715,421 1,715,421 32,131 Commercial 198,990 198,990 - 513,163 513,163 - Consumer and HELOC 50,096 50,096 28,072 - - - Total $ 2,127,368 $ 2,127,368 $ 34,814 $ 2,228,584 $ 2,228,584 $ 32,131 |
Schedule of average recorded investment in impaired loans and related interest income | Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no allowance recorded: Mortgage loans: One-to-four family $ 1,832,617 $ 52,335 $ 1,605,612 $ 1,687 Commercial 200,988 803 769,830 30,204 With an allowance recorded: Mortgage loans: One-to-four family 138,910 2,273 170,177 595 Consumer and HELOC 16,699 - - - Totals: Mortgage loans: One-to-four family 1,971,527 54,608 1,775,789 2,282 Commercial 200,988 803 769,830 30,204 Consumer and HELOC 16,699 - - - Total $ 2,189,213 $ 55,411 $ 2,545,619 $ 32,486 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no allowance recorded: Mortgage loans: One-to-four family $ 1,788,550 $ 76,546 $ 1,612,870 $ 35,579 Commercial 202,584 96,606 898,659 104,071 Consumer and HELOC - - - - With an allowance recorded: Mortgage loans: One-to-four family 141,029 6,254 173,100 9,062 Commercial - - - - Consumer and HELOC 5,566 - - - Totals: Mortgage loans: One-to-four family 1,929,579 82,800 1,785,970 44,641 Commercial 202,584 96,606 898,659 104,071 Consumer and HELOC 5,566 - - - Total $ 2,137,729 $ 179,406 $ 2,684,629 $ 148,712 |
Schedule of classes of the loan portfolio | September 30, 2017 90 Days 90 Days or 30-59 Days 60-89 Days or Greater Total Past Total Loans Greater Still Past Due Past Due Past Due Due Current Receivable Accruing Mortgage loans: One-to-four family $ 805,344 $ 898,032 $ 1,067,829 $ 2,771,205 $ 75,390,488 $ 78,161,693 $ 17,934 Commercial 391,043 57,573 198,990 647,606 44,086,766 44,734,372 - Commercial and industrial - - 8,480 8,480 12,118,862 12,127,342 8,480 Consumer and HELOC 38,342 - 55,460 93,802 3,667,548 3,761,350 5,363 Total $ 1,234,729 $ 955,605 $ 1,330,759 $ 3,521,093 $ 135,263,664 $ 138,784,757 $ 31,777 December 31, 2016 90 Days 90 Days or 30-59 Days 60-89 Days or Greater Total Past Total Loans Greater Still Past Due Past Due Past Due Due Current Receivable Accruing Mortgage loans: One-to-four family $ 1,032,734 $ 440,259 $ 1,355,795 $ 2,828,788 $ 65,643,109 $ 68,471,897 $ 137,923 Commercial 302,576 - 203,382 505,958 24,701,420 25,207,378 - Commercial and industrial 263,376 26,664 9,290 299,330 8,027,652 8,326,982 9,290 Consumer and HELOC 18,217 4,449 53,332 75,998 2,080,040 2,156,038 53,332 Total $ 1,616,903 $ 471,372 $ 1,621,799 $ 3,710,074 $ 100,452,221 $ 104,162,295 $ 200,545 |
Schedule of loans on nonaccrual status | September 30, December 31, 2017 2016 Mortgage loans: One-to-four family $ 1,653,036 $ 1,314,836 Commercial 198,990 203,382 Commercial and industrial - - Consumer and HELOC 50,096 - Total $ 1,902,122 $ 1,518,218 |
Schedule of risk category of loans | September 30, 2017 December 31, 2016 Mortgage Commercial and Mortgage Commercial and Commercial Industrial Commercial Industrial Loans rated 1 - 5 $ 44,252,166 $ 12,103,576 $ 24,713,074 $ 8,291,028 Loans rated 6 283,216 23,766 290,922 35,954 Loans rated 7 198,990 - 203,382 - Ending balance $ 44,734,372 $ 12,127,342 $ 25,207,378 $ 8,326,982 |
Schedule of balances of loans by class based on payment performance | September 30, 2017 December 31, 2016 Mortgage Consumer Mortgage Consumer One-to-Four and One-to-Four and Family HELOC Family HELOC Performing $ 76,490,722 $ 3,705,890 $ 67,116,102 $ 2,102,706 Nonperforming 1,670,971 55,460 1,355,795 53,332 Total $ 78,161,693 $ 3,761,350 $ 68,471,897 $ 2,156,038 |
REGULATORY CAPITAL REQUIREMEN26
REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Bank's actual capital amounts and ratios | September 30, December 31, 2017 2016 Amount Ratio Amount Ratio Common equity Tier 1 capital (to risk-weighted assets) Actual $ 12,287,037 9.87 % $ 11,605,927 11.35 % For capital adequacy purposes 5,602,770 4.50 4,603,005 4.50 To be well capitalized 8,092,890 6.50 6,648,785 6.50 Tier 1 capital (to risk-weighted assets) Actual $ 12,287,037 9.87 % $ 11,605,927 11.35 % For capital adequacy purposes 7,470,360 6.00 6,137,340 6.00 To be well capitalized 9,960,480 8.00 8,183,120 8.00 Total capital (to risk-weighted assets) Actual $ 13,288,819 10.67 % $ 12,426,666 12.15 % For capital adequacy purposes 9,960,480 8.00 8,183,120 8.00 To be well capitalized 12,450,600 10.00 10,228,900 10.00 Tier 1 capital (to average assets) Actual $ 12,287,037 7.93 % $ 11,605,927 8.20 % For capital adequacy purposes 6,200,880 4.00 5,661,360 4.00 To be well capitalized 7,751,100 5.00 7,076,700 5.00 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Off-balance sheet commitments | September 30, December 31, 2017 2016 Commitments to extend credit $ 4,504,977 $ 7,876,738 Construction unadvanced funds 9,214,160 5,087,261 Unused lines of credit 3,607,967 2,460,320 $ 17,327,104 $ 15,424,319 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets reported on the Balance Sheets fair value on recurring basis | September 30, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Mortgage-backed securities in government-sponsored entities $ - $ 554,149 $ - $ 554,149 Obligations of state and political subdivisions - 1,603,842 - 1,603,842 Corporate bonds - 404,332 - 404,332 U.S. treasury securities 197,199 - - 197,199 December 31, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Mortgage-backed securities in government-sponsored entities $ - $ 644,558 $ - $ 644,558 Obligations of state and political subdivisions - 1,878,947 - 1,878,947 Corporate bonds - 503,167 - 503,167 U.S. treasury securities 199,735 - - 199,735 |
Schedule of assets reported on the Balance Sheets fair value on nonrecurring basis | September 30, 2017 Level I Level II Level III Total Fair value measurements on a nonrecurring basis: Other real estate owned $ - $ - $ 59,932 $ 59,932 December 31, 2016 Level I Level II Level III Total Fair value measurements on a nonrecurring basis: Loans held for sale $ - $ - $ 19,941,867 $ 19,941,867 Other real estate owned - - 59,932 59,932 |
Schedule of significant unobservable inputs used in the fair value measurement process | Fair Value at Range September 30, Valuation (Weighted 2017 Valuation Techniques Unobservable Inputs Average) Other real estate owned $ 59,932 Appraised collateral values Discount for time since appraisal 10% (10%) Selling costs 10% (10%) Fair Value at Range December 31, Valuation (Weighted 2016 Valuation Techniques Unobservable Inputs Average) Loans held for sale $ 19,941,867 Discounted cash flow Discount rate 4.16% - 5.32% (4.70%) Conditional prepayment rate 7.50% - 42.96% (12.63%) Other real estate owned 59,932 Appraised collateral values Discount for time since appraisal 10% (10%) Selling costs 10% (10%) |
Schedule of estimated fair values of the Bank's financial instruments | September 30, 2017 Carrying Fair Level I Level II Level III Financial assets: Cash and cash equivalents $ 6,317,192 $ 6,317,192 $ 6,317,192 $ - $ - Certificates of deposit 1,140,000 1,131,000 - 1,131,000 - Investment securities: Available for sale 2,759,522 2,759,522 197,199 2,562,323 - Held to maturity 10,732 10,483 - 10,483 - Loans, net 137,874,925 137,179,375 - - 137,179,375 Accrued interest receivable 628,006 628,006 - 628,006 - FHLB stock 2,020,300 2,020,300 - - 2,020,300 Financial liabilities: Deposits 118,920,088 119,311,088 40,571,899 - 78,739,189 FHLB advances 26,399,624 26,648,111 - 26,684,111 - Accrued interest payable 198,762 198,762 - 198,762 - December 31, 2016 Carrying Fair Level I Level II Level III Financial assets: Cash and cash equivalents $ 6,831,479 $ 6,831,479 $ 6,831,479 $ - $ - Certificates of deposit 1,390,000 1,426,000 - 1,426,000 - Investment securities: Available for sale 3,226,407 3,226,407 199,735 3,026,672 - Held to maturity 14,130 13,735 - 13,735 - Loans held for sale 19,941,867 19,941,867 - - 19,941,867 Loans, net 103,747,049 104,569,049 - - 104,569,049 Accrued interest receivable 523,055 523,055 - 523,055 - FHLB stock 1,349,300 1,349,300 - - 1,349,300 Financial liabilities: Deposits 109,370,884 109,892,884 39,330,740 - 70,562,144 FHLB advances 19,124,500 19,139,500 - 19,139,500 - Accrued interest payable 167,427 167,427 - 167,427 - |
ACCUMULATED OTHER COMPREHENSI29
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) | Net Unrealized Gain (Loss) on Securities Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Accumulated other comprehensive income (loss), beginning of period $ (12,607 ) $ 33,400 $ (47,388 ) $ 6,529 Other comprehensive income (loss) on securities before reclassification, net of tax 652 (19,310 ) 35,664 8,024 Amounts reclassified from accumulated other comprehensive income (loss), net of tax - - (231 ) (463 ) Net other comprehensive income (loss) 652 (19,310 ) 35,433 7,561 Accumulated other comprehensive income (loss), end of period $ (11,955 ) $ 14,090 $ (11,955 ) $ 14,090 |
SECURITIES AVAILABLE FOR SALE30
SECURITIES AVAILABLE FOR SALE (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 2,777,637 | $ 3,298,207 |
Gross Unrealized Gains | 10,240 | 7,737 |
Gross Unrealized Losses | (28,355) | (79,537) |
Fair Value | 2,759,522 | 3,226,407 |
Mortgage-backed securities in government-sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 555,083 | 647,832 |
Gross Unrealized Gains | 554 | 94 |
Gross Unrealized Losses | (1,488) | (3,368) |
Fair Value | 554,149 | 644,558 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,627,262 | 1,953,382 |
Gross Unrealized Gains | 3,447 | 1,143 |
Gross Unrealized Losses | (26,867) | (75,578) |
Fair Value | 1,603,842 | 1,878,947 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 401,341 | 502,140 |
Gross Unrealized Gains | 2,991 | 1,618 |
Gross Unrealized Losses | 0 | (591) |
Fair Value | 404,332 | 503,167 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 193,951 | 194,853 |
Gross Unrealized Gains | 3,248 | 4,882 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 197,199 | $ 199,735 |
SECURITIES AVAILABLE FOR SALE31
SECURITIES AVAILABLE FOR SALE (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year or less | $ 185,703 | |
Due after one year through five years | 1,101,308 | |
Due after five years through ten years | 389,883 | |
Due after ten years | 1,100,743 | |
Amortized Cost | 2,777,637 | $ 3,298,207 |
Fair Value | ||
Due within one year or less | 186,355 | |
Due after one year through five years | 1,110,342 | |
Due after five years through ten years | 387,749 | |
Due after ten years | 1,075,076 | |
Fair Value | $ 2,759,522 | $ 3,226,407 |
SECURITIES AVAILABLE FOR SALE32
SECURITIES AVAILABLE FOR SALE (Detail Textuals) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales of investment securities available for sale | $ 313,643 | $ 155,250 |
Gross realized gain on investment securities available for sale | $ 350 | $ 702 |
Mortgage-backed securities | Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractual maturities range in years | 12 years | |
Mortgage-backed securities | Minimum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractual maturities range in years | 1 year |
SECURITIES HELD TO MATURITY (De
SECURITIES HELD TO MATURITY (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 10,732 | $ 14,130 |
Gross Unrealized Gains | 0 | 344 |
Gross Unrealized Losses | (249) | (739) |
Fair Value | 10,483 | 13,735 |
Mortgage-backed securities in government-sponsored entities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 10,732 | 14,130 |
Gross Unrealized Gains | 0 | 344 |
Gross Unrealized Losses | (249) | (739) |
Fair Value | $ 10,483 | $ 13,735 |
SECURITIES HELD TO MATURITY (34
SECURITIES HELD TO MATURITY (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Amortized Cost | $ 10,732 | $ 14,130 |
Fair Value | ||
Fair Value | 10,483 | 13,735 |
Mortgage-backed securities | ||
Amortized Cost | ||
Due after one year through five years | 8,042 | |
Due after five years through ten years | 894 | |
Due after ten years | 1,796 | |
Amortized Cost | 10,732 | 14,130 |
Fair Value | ||
Due after one year through five years | 7,856 | |
Due after five years through ten years | 878 | |
Due after ten years | 1,749 | |
Fair Value | $ 10,483 | $ 13,735 |
UNREALIZED LOSSES ON SECURITI35
UNREALIZED LOSSES ON SECURITIES (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Less than Twelve Months, Fair Value | $ 975,400 | $ 2,297,566 |
Less Than Twelve Months, Gross Unrealized Losses | (3,057) | (79,537) |
Twelve Months or Greater, Fair Value | 399,401 | 14,130 |
Twelve Months or Greater, Gross Unrealized Losses | (25,547) | (739) |
Total, Fair Value | 1,374,801 | 2,311,696 |
Total, Gross Unrealized Losses | (28,604) | (80,276) |
Mortgage-backed securities in government-sponsored entities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 466,125 | 520,549 |
Less Than Twelve Months, Gross Unrealized Losses | (1,737) | (3,368) |
Twelve Months or Greater, Fair Value | 0 | 14,130 |
Twelve Months or Greater, Gross Unrealized Losses | 0 | (739) |
Total, Fair Value | 466,125 | 534,679 |
Total, Gross Unrealized Losses | (1,737) | (4,107) |
Obligations of state and political subdivisions | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 509,275 | 1,677,512 |
Less Than Twelve Months, Gross Unrealized Losses | (1,320) | (75,578) |
Twelve Months or Greater, Fair Value | 399,401 | 0 |
Twelve Months or Greater, Gross Unrealized Losses | (25,547) | 0 |
Total, Fair Value | 908,676 | 1,677,512 |
Total, Gross Unrealized Losses | $ (26,867) | (75,578) |
Corporate bonds | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 99,505 | |
Less Than Twelve Months, Gross Unrealized Losses | (591) | |
Twelve Months or Greater, Fair Value | 0 | |
Twelve Months or Greater, Gross Unrealized Losses | 0 | |
Total, Fair Value | 99,505 | |
Total, Gross Unrealized Losses | $ (591) |
UNREALIZED LOSSES ON SECURITI36
UNREALIZED LOSSES ON SECURITIES (Detail Textuals) - Security | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of temporarily impaired investments securities | 15 | 18 |
Percent of aggregate depreciation of approximately. | 2.00% | 4.00% |
LOANS (Details)
LOANS (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | $ 138,784,757 | $ 104,162,295 | ||||
Third-party loan acquisition and other net origination costs | 346,945 | 405,493 | ||||
Discount on loans previously held for sale | (254,995) | 0 | ||||
Allowance for loan losses | (1,001,782) | $ (940,732) | (820,739) | $ (925,383) | $ (899,980) | $ (838,687) |
Total | 137,874,925 | 103,747,049 | ||||
Mortgage loans | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | 122,896,065 | 93,679,275 | ||||
Mortgage loans | One-to-four family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | 78,161,693 | 68,471,897 | ||||
Allowance for loan losses | (490,504) | (488,009) | (498,410) | (597,720) | (564,801) | (605,602) |
Mortgage loans | Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | 44,734,372 | 25,207,378 | ||||
Allowance for loan losses | (337,293) | (324,941) | (228,763) | (236,751) | (252,360) | (172,861) |
Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | 12,127,342 | 8,326,982 | ||||
Allowance for loan losses | (85,652) | $ (70,466) | (59,439) | $ (50,338) | $ (46,777) | $ (28,039) |
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | 1,881,451 | 1,164,886 | ||||
Home equity lines of credit ("HELOC") | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans, Gross | $ 1,879,899 | $ 991,152 |
LOANS (Detail Textuals)
LOANS (Detail Textuals) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Portion of loans transferred in participation loans to other institutions | $ 8,669,671 | $ 10,088,489 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for loan losses: | ||||
Beginning balance | $ 940,732 | $ 899,980 | $ 820,739 | $ 838,687 |
Charge-offs | 0 | 0 | 0 | (30,000) |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 61,050 | 25,403 | 181,043 | 116,696 |
Ending balance | 1,001,782 | 925,383 | 1,001,782 | 925,383 |
Mortgage loans | One-to-four family | ||||
Allowance for loan losses: | ||||
Beginning balance | 488,009 | 564,801 | 498,410 | 605,602 |
Charge-offs | 0 | 0 | 0 | (30,000) |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 2,495 | 32,919 | (7,906) | 22,118 |
Ending balance | 490,504 | 597,720 | 490,504 | 597,720 |
Mortgage loans | Commercial | ||||
Allowance for loan losses: | ||||
Beginning balance | 324,941 | 252,360 | 228,763 | 172,861 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 12,352 | (15,609) | 108,530 | 63,890 |
Ending balance | 337,293 | 236,751 | 337,293 | 236,751 |
Commercial and industrial | ||||
Allowance for loan losses: | ||||
Beginning balance | 70,466 | 46,777 | 59,439 | 28,039 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 15,186 | 3,561 | 26,213 | 22,299 |
Ending balance | 85,652 | 50,338 | 85,652 | 50,338 |
Consumer and HELOC | ||||
Allowance for loan losses: | ||||
Beginning balance | 57,316 | 36,042 | 34,127 | 32,185 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 31,017 | 4,532 | 54,206 | 8,389 |
Ending balance | $ 88,333 | $ 40,574 | $ 88,333 | $ 40,574 |
ALLOWANCE FOR LOAN LOSSES (De40
ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | $ 1,001,782 | $ 940,732 | $ 820,739 | $ 925,383 | $ 899,980 | $ 838,687 |
Loans | 138,784,757 | 104,162,295 | ||||
Loans deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 34,814 | 32,131 | ||||
Loans | 2,127,368 | 2,228,584 | ||||
Loans not deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 966,968 | 788,608 | ||||
Loans | 136,657,389 | 101,933,711 | ||||
Mortgage loans | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loans | 122,896,065 | 93,679,275 | ||||
Mortgage loans | One-to-four family | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 490,504 | 488,009 | 498,410 | 597,720 | 564,801 | 605,602 |
Loans | 78,161,693 | 68,471,897 | ||||
Mortgage loans | One-to-four family | Loans deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 6,742 | 32,131 | ||||
Loans | 1,878,282 | 1,715,421 | ||||
Mortgage loans | One-to-four family | Loans not deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 483,762 | 466,279 | ||||
Loans | 76,283,411 | 66,756,476 | ||||
Mortgage loans | Commercial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 337,293 | 324,941 | 228,763 | 236,751 | 252,360 | 172,861 |
Loans | 44,734,372 | 25,207,378 | ||||
Mortgage loans | Commercial | Loans deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 0 | 0 | ||||
Loans | 198,990 | 513,163 | ||||
Mortgage loans | Commercial | Loans not deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 337,293 | 228,763 | ||||
Loans | 44,535,382 | 24,694,215 | ||||
Commercial and industrial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 85,652 | 70,466 | 59,439 | 50,338 | 46,777 | 28,039 |
Loans | 12,127,342 | 8,326,982 | ||||
Commercial and industrial | Loans deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 0 | 0 | ||||
Loans | 0 | 0 | ||||
Commercial and industrial | Loans not deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 85,652 | 59,439 | ||||
Loans | 12,127,342 | 8,326,982 | ||||
Consumer and HELOC | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 88,333 | $ 57,316 | 34,127 | $ 40,574 | $ 36,042 | $ 32,185 |
Loans | 3,761,350 | 2,156,038 | ||||
Consumer and HELOC | Loans deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 28,072 | 0 | ||||
Loans | 50,096 | 0 | ||||
Consumer and HELOC | Loans not deemed impaired | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Allowance for loan losses | 60,261 | 34,127 | ||||
Loans | $ 3,711,254 | $ 2,156,038 |
ALLOWANCE FOR LOAN LOSSES (De41
ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Totals: | ||
Recorded Investment | $ 2,127,368 | $ 2,228,584 |
Unpaid Principal Balance | 2,127,368 | 2,228,584 |
Related Allowance | 34,814 | 32,131 |
Mortgage loans | One-to-four family | ||
With no allowance recorded: | ||
Recorded Investment | 1,740,295 | 1,547,676 |
Unpaid Principal Balance | 1,740,295 | 1,547,676 |
With an allowance recorded: | ||
Recorded Investment | 137,987 | 167,745 |
Unpaid Principal Balance | 137,987 | 167,745 |
Totals: | ||
Recorded Investment | 1,878,282 | 1,715,421 |
Unpaid Principal Balance | 1,878,282 | 1,715,421 |
Related Allowance | 6,742 | 32,131 |
Mortgage loans | Commercial | ||
With no allowance recorded: | ||
Recorded Investment | 198,990 | 513,163 |
Unpaid Principal Balance | 198,990 | 513,163 |
Totals: | ||
Recorded Investment | 198,990 | 513,163 |
Unpaid Principal Balance | 198,990 | 513,163 |
Related Allowance | 0 | 0 |
Consumer and HELOC | ||
With an allowance recorded: | ||
Recorded Investment | 50,096 | 0 |
Unpaid Principal Balance | 50,096 | 0 |
Totals: | ||
Recorded Investment | 50,096 | 0 |
Unpaid Principal Balance | 50,096 | 0 |
Related Allowance | $ 28,072 | $ 0 |
ALLOWANCE FOR LOAN LOSSES (De42
ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Totals: | ||||
Average Recorded Investment | $ 2,189,213 | $ 2,545,619 | $ 2,137,729 | $ 2,684,629 |
Interest Income Recognized | 55,411 | 32,486 | 179,406 | 148,712 |
Mortgage loans | One-to-four family | ||||
With no allowance recorded: | ||||
Average Recorded Investment | 1,832,617 | 1,605,612 | 1,788,550 | 1,612,870 |
Interest Income Recognized | 52,335 | 1,687 | 76,546 | 35,579 |
With an allowance recorded: | ||||
Average Recorded Investment | 138,910 | 170,177 | 141,029 | 173,100 |
Interest Income Recognized | 2,273 | 595 | 6,254 | 9,062 |
Totals: | ||||
Average Recorded Investment | 1,971,527 | 1,775,789 | 1,929,579 | 1,785,970 |
Interest Income Recognized | 54,608 | 2,282 | 82,800 | 44,641 |
Mortgage loans | Commercial | ||||
With no allowance recorded: | ||||
Average Recorded Investment | 200,988 | 769,830 | 202,584 | 898,659 |
Interest Income Recognized | 803 | 30,204 | 96,606 | 104,071 |
With an allowance recorded: | ||||
Average Recorded Investment | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | ||
Totals: | ||||
Average Recorded Investment | 200,988 | 769,830 | 202,584 | 898,659 |
Interest Income Recognized | 803 | 30,204 | 96,606 | 104,071 |
Consumer and HELOC | ||||
With no allowance recorded: | ||||
Average Recorded Investment | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | ||
With an allowance recorded: | ||||
Average Recorded Investment | 16,699 | 0 | 5,566 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Totals: | ||||
Average Recorded Investment | 16,699 | 0 | 5,566 | 0 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES (De43
ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 3,521,093 | $ 3,710,074 |
Current | 135,263,664 | 100,452,221 |
Total Loans Receivable | 138,784,757 | 104,162,295 |
90 Days or Greater Still Accruing | 31,777 | 200,545 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,234,729 | 1,616,903 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 955,605 | 471,372 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,330,759 | 1,621,799 |
Mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 122,896,065 | 93,679,275 |
Mortgage loans | One-to-four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,771,205 | 2,828,788 |
Current | 75,390,488 | 65,643,109 |
Total Loans Receivable | 78,161,693 | 68,471,897 |
90 Days or Greater Still Accruing | 17,934 | 137,923 |
Mortgage loans | One-to-four family | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 805,344 | 1,032,734 |
Mortgage loans | One-to-four family | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 898,032 | 440,259 |
Mortgage loans | One-to-four family | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,067,829 | 1,355,795 |
Mortgage loans | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 647,606 | 505,958 |
Current | 44,086,766 | 24,701,420 |
Total Loans Receivable | 44,734,372 | 25,207,378 |
90 Days or Greater Still Accruing | 0 | 0 |
Mortgage loans | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 391,043 | 302,576 |
Mortgage loans | Commercial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 57,573 | 0 |
Mortgage loans | Commercial | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 198,990 | 203,382 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,480 | 299,330 |
Current | 12,118,862 | 8,027,652 |
Total Loans Receivable | 12,127,342 | 8,326,982 |
90 Days or Greater Still Accruing | 8,480 | 9,290 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 263,376 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 26,664 |
Commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,480 | 9,290 |
Consumer and HELOC | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 93,802 | 75,998 |
Current | 3,667,548 | 2,080,040 |
Total Loans Receivable | 3,761,350 | 2,156,038 |
90 Days or Greater Still Accruing | 5,363 | 53,332 |
Consumer and HELOC | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38,342 | 18,217 |
Consumer and HELOC | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 4,449 |
Consumer and HELOC | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 55,460 | $ 53,332 |
ALLOWANCE FOR LOAN LOSSES (De44
ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | $ 1,902,122 | $ 1,518,218 |
Mortgage loans | One-to-four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | 1,653,036 | 1,314,836 |
Mortgage loans | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | 198,990 | 203,382 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | 0 | 0 |
Consumer and HELOC | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans on nonaccrual status | $ 50,096 | $ 0 |
ALLOWANCE FOR LOAN LOSSES (De45
ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 138,784,757 | $ 104,162,295 |
Mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 122,896,065 | 93,679,275 |
Mortgage loans | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 44,734,372 | 25,207,378 |
Mortgage loans | Commercial | Loans rated 1 - 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 44,252,166 | 24,713,074 |
Mortgage loans | Commercial | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 283,216 | 290,922 |
Mortgage loans | Commercial | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 198,990 | 203,382 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 12,127,342 | 8,326,982 |
Commercial and industrial | Loans rated 1 - 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 12,103,576 | 8,291,028 |
Commercial and industrial | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 23,766 | 35,954 |
Commercial and industrial | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES (De46
ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 138,784,757 | $ 104,162,295 |
Mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 122,896,065 | 93,679,275 |
Mortgage loans | One-to-four family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 78,161,693 | 68,471,897 |
Mortgage loans | One-to-four family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 76,490,722 | 67,116,102 |
Mortgage loans | One-to-four family | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 1,670,971 | 1,355,795 |
Consumer and HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,761,350 | 2,156,038 |
Consumer and HELOC | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,705,890 | 2,102,706 |
Consumer and HELOC | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 55,460 | $ 53,332 |
ALLOWANCE FOR LOAN LOSSES (De47
ALLOWANCE FOR LOAN LOSSES (Detail Textuals) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Recorded investment of all loans modified as troubled debt restructurings | $ 6,742 | $ 32,131 |
REGULATORY CAPITAL REQUIREMEN48
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Regulatory Capital Requirements [Abstract] | ||
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount | $ 12,287,037 | $ 11,605,927 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio | 9.87% | 11.35% |
Common equity Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 5,602,770 | $ 4,603,005 |
Common equity Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio | 4.50% | 4.50% |
Common equity Tier 1 capital (to risk-weighted assets), To be well capitalized Amount | $ 8,092,890 | $ 6,648,785 |
Common equity Tier 1 capital (to risk-weighted assets), To be well capitalized Ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 12,287,037 | $ 11,605,927 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 9.87% | 11.35% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 7,470,360 | $ 6,137,340 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), To be well capitalized Amount | $ 9,960,480 | $ 8,183,120 |
Tier 1 capital (to risk-weighted assets), To be well capitalized Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Actual Amount | $ 13,288,819 | $ 12,426,666 |
Total capital (to risk-weighted assets), Actual Ratio | 10.67% | 12.15% |
Total capital (to risk-weighted assets), For capital adequacy purposes Amount | $ 9,960,480 | $ 8,183,120 |
Total capital (to risk-weighted assets), For capital adequacy purposes Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), To be well capitalized Amount | $ 12,450,600 | $ 10,228,900 |
Total capital (to risk-weighted assets), To be well capitalized Ratio | 10.00% | 10.00% |
Tier 1 capital (to average assets), Actual Amount | $ 12,287,037 | $ 11,605,927 |
Tier 1 capital (to average assets), Actual Ratio | 7.93% | 8.20% |
Tier 1 capital (to average assets), For capital adequacy purposes Amount | $ 6,200,880 | $ 5,661,360 |
Tier 1 capital (to average assets), For capital adequacy purposes Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), To be well capitalized Amount | $ 7,751,100 | $ 7,076,700 |
Tier 1 capital (to average assets), To be well capitalized Ratio | 5.00% | 5.00% |
REGULATORY CAPITAL REQUIREMEN49
REGULATORY CAPITAL REQUIREMENTS (Detail Textuals) | Sep. 30, 2017 | Jan. 01, 2016 |
Regulatory Capital Requirements [Abstract] | ||
Percentage of Tier 1 capital greater than risk weighted assets | 2.50% | |
Percentage of capital conservation buffer | 1.25% | 0.625% |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments | $ 17,327,104 | $ 15,424,319 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments | 4,504,977 | 7,876,738 |
Construction unadvanced funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments | 9,214,160 | 5,087,261 |
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments | $ 3,607,967 | $ 2,460,320 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | $ 2,759,522 | $ 3,226,407 |
Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 197,199 | 199,735 |
Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 2,562,323 | 3,026,672 |
Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Mortgage-backed securities in government-sponsored entities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 554,149 | 644,558 |
Fair value measurements on a recurring basis | Obligations of state and political subdivisions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 1,603,842 | 1,878,947 |
Fair value measurements on a recurring basis | Corporate bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 404,332 | 503,167 |
Fair value measurements on a recurring basis | U.S. treasury securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 197,199 | 199,735 |
Fair value measurements on a recurring basis | Level I | Mortgage-backed securities in government-sponsored entities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level I | Obligations of state and political subdivisions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level I | Corporate bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level I | U.S. treasury securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 197,199 | 199,735 |
Fair value measurements on a recurring basis | Level II | Mortgage-backed securities in government-sponsored entities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 554,149 | 644,558 |
Fair value measurements on a recurring basis | Level II | Obligations of state and political subdivisions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 1,603,842 | 1,878,947 |
Fair value measurements on a recurring basis | Level II | Corporate bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 404,332 | 503,167 |
Fair value measurements on a recurring basis | Level II | U.S. treasury securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level III | Mortgage-backed securities in government-sponsored entities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level III | Obligations of state and political subdivisions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level III | Corporate bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements on a recurring basis | Level III | U.S. treasury securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta52
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | $ 19,941,867 | |
Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 0 | |
Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 0 | |
Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 19,941,867 | |
Fair value measurements on a nonrecurring basis | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 19,941,867 | |
Other real estate owned | $ 59,932 | 59,932 |
Fair value measurements on a nonrecurring basis | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 0 | |
Other real estate owned | 0 | 0 |
Fair value measurements on a nonrecurring basis | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 0 | |
Other real estate owned | 0 | 0 |
Fair value measurements on a nonrecurring basis | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for sale | 19,941,867 | |
Other real estate owned | $ 59,932 | $ 59,932 |
FAIR VALUE MEASUREMENTS (Deta53
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loans held for sale | $ 19,941,867 | |
Level III | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loans held for sale | 19,941,867 | |
Level III | Appraised collateral values | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other real estate owned | $ 59,932 | $ 59,932 |
Discount for time since appraisal | 10.00% | 10.00% |
Selling costs | 10.00% | 10.00% |
Level III | Appraised collateral values | Weighted average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount for time since appraisal | 10.00% | 10.00% |
Selling costs | 10.00% | 10.00% |
Level III | Discounted cash flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loans held for sale | $ 19,941,867 | |
Level III | Discounted cash flow | Weighted average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 4.70% | |
Conditional prepayment rate | 12.63% | |
Level III | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 4.16% | |
Conditional prepayment rate | 7.50% | |
Level III | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 5.32% | |
Conditional prepayment rate | 42.96% |
FAIR VALUE MEASUREMENTS (Deta54
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Certificates of deposit | $ 1,140,000 | $ 1,390,000 |
Investment securities: | ||
Available for sale | 2,759,522 | 3,226,407 |
Held to maturity | 10,483 | 13,735 |
Loans held for sale | 19,941,867 | |
Accrued interest receivable | 628,006 | 523,055 |
Financial liabilities: | ||
Accrued interest payable | 198,762 | 167,427 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 6,317,192 | 6,831,479 |
Certificates of deposit | 1,140,000 | 1,390,000 |
Investment securities: | ||
Available for sale | 2,759,522 | 3,226,407 |
Held to maturity | 10,732 | 14,130 |
Loans held for sale | 19,941,867 | |
Loans, net | 137,874,925 | 103,747,049 |
Accrued interest receivable | 628,006 | 523,055 |
FHLB stock | 2,020,300 | 1,349,300 |
Financial liabilities: | ||
Deposits | 118,920,088 | 109,370,884 |
FHLB advances | 26,399,624 | 19,124,500 |
Accrued interest payable | 198,762 | 167,427 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 6,317,192 | 6,831,479 |
Certificates of deposit | 1,131,000 | 1,426,000 |
Investment securities: | ||
Available for sale | 2,759,522 | 3,226,407 |
Held to maturity | 10,483 | 13,735 |
Loans held for sale | 19,941,867 | |
Loans, net | 137,179,375 | 104,569,049 |
Accrued interest receivable | 628,006 | 523,055 |
FHLB stock | 2,020,300 | 1,349,300 |
Financial liabilities: | ||
Deposits | 119,311,088 | 109,892,884 |
FHLB advances | 26,648,111 | 19,139,500 |
Accrued interest payable | 198,762 | 167,427 |
Level I | ||
Financial assets: | ||
Cash and cash equivalents | 6,317,192 | 6,831,479 |
Certificates of deposit | 0 | 0 |
Investment securities: | ||
Available for sale | 197,199 | 199,735 |
Held to maturity | 0 | 0 |
Loans held for sale | 0 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Financial liabilities: | ||
Deposits | 40,571,899 | 39,330,740 |
FHLB advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level II | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 1,131,000 | 1,426,000 |
Investment securities: | ||
Available for sale | 2,562,323 | 3,026,672 |
Held to maturity | 10,483 | 13,735 |
Loans held for sale | 0 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 628,006 | 523,055 |
FHLB stock | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 26,684,111 | 19,139,500 |
Accrued interest payable | 198,762 | 167,427 |
Level III | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
Investment securities: | ||
Available for sale | 0 | 0 |
Held to maturity | 0 | 0 |
Loans held for sale | 19,941,867 | |
Loans, net | 137,179,375 | 104,569,049 |
Accrued interest receivable | 0 | 0 |
FHLB stock | 2,020,300 | 1,349,300 |
Financial liabilities: | ||
Deposits | 78,739,189 | 70,562,144 |
FHLB advances | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI55
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Unrealized Gain (Loss) on Securities | ||||
Accumulated other comprehensive income (loss), beginning of period | $ (12,607) | $ 33,400 | $ (47,388) | $ 6,529 |
Other comprehensive income (loss) on securities before reclassification, net of tax | 652 | (19,310) | 35,664 | 8,024 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | (231) | (463) |
Net other comprehensive income (loss) | 652 | (19,310) | 35,433 | 7,561 |
Accumulated other comprehensive income (loss), end of period | $ (11,955) | $ 14,090 | $ (11,955) | $ 14,090 |
SUBSEQUENT EVENTS - REORGANlZ56
SUBSEQUENT EVENTS - REORGANlZATION AND STOCK OFFERING (Detail Textuals) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Dec. 22, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 21, 2017 | |
Subsequent Event [Line Items] | ||||
Corporate income tax rate | 34.00% | |||
Net deferred tax assets | $ 540,000 | |||
Estimated reduction in net deferred tax asset | 39,232 | $ (12,669) | ||
Plan of mutual holding company reorganization and minority stock issuance | ||||
Subsequent Event [Line Items] | ||||
Deferred reorganization costs | $ 471,000 | |||
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Corporate income tax rate | 21.00% | |||
Estimated reduction in net deferred tax asset | $ 203,000 | |||
Subsequent event | Plan of mutual holding company reorganization and minority stock issuance | ||||
Subsequent Event [Line Items] | ||||
Stock price per share | $ 10 | |||
Threshold percentage of common stock to be outstanding for ESOP Subscription | 3.92% | |||
Ownership percentage held by public | 45.00% | |||
Ownership percentage held by SSB Bancorp, MHC | 55.00% |