Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2020 | Feb. 12, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2020 | |
Entity Registrant Name | TEB Bancorp, Inc. | |
Title of 12(b) Security | None | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,624,343 | |
Entity Central Index Key | 0001751700 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
ASSETS | ||
Cash and due from banks | $ 4,945,586 | $ 2,763,126 |
Federal funds sold | 13,409,060 | 10,342,915 |
Cash and cash equivalents | 18,354,646 | 13,106,041 |
Interest bearing deposits in banks | 682,376 | 2,713,164 |
Available for sale securities - stated at fair value | 22,775,918 | 20,297,595 |
Loans, less allowance for loan losses of $1,403,491 and $1,353,427 at December 31, 2020 and June 30, 2020, respectively | 232,649,841 | 237,300,478 |
Loans held for sale | 15,548,714 | 18,690,027 |
Other real estate owned, net | 386,155 | 2,288,255 |
Premises and equipment, net | 8,142,093 | 7,960,041 |
Federal Home Loan Bank stock | 1,031,200 | 1,345,500 |
Accrued interest receivable and other assets | 1,794,749 | 1,773,486 |
TOTAL ASSETS | 301,365,692 | 305,474,587 |
Deposits | ||
Demand | 99,150,134 | 93,627,648 |
Savings and NOW | 79,739,955 | 75,397,948 |
Certificates of deposit | 76,936,804 | 87,045,935 |
Total Deposits | 255,826,893 | 256,071,531 |
Federal Home Loan Bank borrowings | 4,000,000 | 9,000,000 |
Advance payments by borrowers for property taxes and insurance | 912,429 | 2,882,067 |
Accrued interest payable and other liabilities | 13,428,220 | 14,008,786 |
Total Liabilities | 274,167,542 | 281,962,384 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock ($0.01 par value, 5,000,000 authorized, no shares issued or outstanding as of December 31, 2020 and June 30, 2020, respectively) | ||
Common stock ($0.01 par value, 20,000,000 authorized, 2,624,343 issued and outstanding as of December 31, 2020 and June 30, 2020) | 26,243 | 26,243 |
Additional paid in capital | 11,319,328 | 11,319,328 |
Retained earnings | 20,738,853 | 17,002,468 |
Accumulated other comprehensive loss | (4,886,274) | (4,835,836) |
Total Stockholders’ Equity | 27,198,150 | 23,512,203 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 301,365,692 | $ 305,474,587 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | ||
Allowance for loan losses | $ 1,403,491 | $ 1,353,427 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,624,343 | 2,624,343 |
Common stock, shares outstanding | 2,624,343 | 2,624,343 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTEREST AND DIVIDEND INCOME | ||||
Interest and fees on loans | $ 2,599,766 | $ 2,837,250 | $ 5,199,363 | $ 5,761,686 |
Interest and dividends on investment securities | 149,355 | 167,581 | 301,345 | 331,080 |
Interest on federal funds sold | 190 | 11,903 | 407 | 33,616 |
Interest on deposits in banks | 222 | 1,978 | 564 | 7,502 |
Total Interest and Dividend Income | 2,749,533 | 3,018,712 | 5,501,679 | 6,133,884 |
INTEREST EXPENSE | ||||
Interest on deposits | 318,653 | 473,716 | 681,152 | 933,952 |
Interest on Federal Home Loan Bank borrowings | 664 | 89,357 | 6,806 | 293,298 |
Interest on federal funds purchased | 0 | 19 | 0 | 57 |
Total Interest Expense | 319,317 | 563,092 | 687,958 | 1,227,307 |
Net interest income before provision for loan losses | 2,430,216 | 2,455,620 | 4,813,721 | 4,906,577 |
Provision for loan losses | 50,000 | 0 | 50,000 | 0 |
Net interest income after provision for loan losses | 2,380,216 | 2,455,620 | 4,763,721 | 4,906,577 |
NON-INTEREST INCOME | ||||
Service fees on deposits | 105,779 | 116,943 | 211,085 | 239,548 |
Service fees on loans | 46,232 | 60,959 | 88,537 | 104,333 |
Gain on sales of mortgage loans | 3,619,405 | 936,979 | 6,622,505 | 2,187,722 |
Income on sale of uninsured products | 102,849 | 77,445 | 216,634 | 170,512 |
(Loss) Gain on sale of other real estate owned | (11,573) | 104,890 | (11,573) | 109,708 |
Other income | 5,253 | 5,225 | 13,841 | 12,598 |
Total Non-Interest Income | 3,867,945 | 1,302,441 | 7,141,029 | 2,824,421 |
NON-INTEREST EXPENSES | ||||
Compensation and benefits | 2,649,604 | 2,041,970 | 5,087,380 | 4,191,127 |
Occupancy | 537,707 | 492,766 | 1,061,295 | 982,917 |
Advertising | 37,545 | 53,422 | 77,590 | 134,198 |
Data processing services | 291,498 | 266,395 | 560,316 | 571,814 |
FDIC assessment | 26,570 | 51,285 | 66,810 | 23,826 |
Cost of operations for other real estate owned | 159,564 | 11,782 | 176,675 | 23,096 |
Insurance expense | 29,141 | 41,600 | 59,185 | 81,155 |
Professional fees | 135,506 | 168,417 | 259,483 | 287,487 |
Other expenses | 423,489 | 268,541 | 819,631 | 505,599 |
Total Non-Interest Expenses | 4,290,624 | 3,396,178 | 8,168,365 | 6,801,219 |
Income before income taxes | 1,957,537 | 361,883 | 3,736,385 | 929,779 |
Income tax benefit | 0 | 0 | 0 | 0 |
NET INCOME | $ 1,957,537 | $ 361,883 | $ 3,736,385 | $ 929,779 |
Basic income per share | $ 0.75 | $ 0.14 | $ 1.42 | $ 0.35 |
Diluted income per share | $ 0.75 | $ 0.14 | $ 1.42 | $ 0.35 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 1,957,537 | $ 361,883 | $ 3,736,385 | $ 929,779 |
Unrealized gains/losses on securities | ||||
Net unrealized holding gains (losses) arising during period | 17,690 | (87,138) | 153,832 | 30,772 |
Tax effect | 0 | 0 | 0 | 0 |
Change in pension obligation | (102,135) | (107,874) | (204,270) | (107,874) |
Tax effect | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (84,445) | (195,012) | (50,438) | (77,102) |
COMPREHENSIVE INCOME | $ 1,873,092 | $ 166,871 | $ 3,685,947 | $ 852,677 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
BALANCES at Jun. 30, 2019 | $ 26,243 | $ 11,319,328 | $ 15,910,369 | $ (2,848,365) | $ 24,407,575 |
BALANCES (in shares) at Jun. 30, 2019 | 2,624,343 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 567,896 | 567,896 | |||
Other comprehensive income, net of tax | 117,910 | 117,910 | |||
BALANCES at Sep. 30, 2019 | $ 26,243 | 11,319,328 | 16,478,265 | (2,730,455) | 25,093,381 |
BALANCES (in shares) at Sep. 30, 2019 | 2,624,343 | ||||
BALANCES at Jun. 30, 2019 | $ 26,243 | 11,319,328 | 15,910,369 | (2,848,365) | 24,407,575 |
BALANCES (in shares) at Jun. 30, 2019 | 2,624,343 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 929,779 | ||||
Other comprehensive income, net of tax | (77,102) | ||||
BALANCES at Dec. 31, 2019 | $ 26,243 | 11,319,328 | 16,840,148 | (2,925,467) | 25,260,252 |
BALANCES (in shares) at Dec. 31, 2019 | 2,624,343 | ||||
BALANCES at Sep. 30, 2019 | $ 26,243 | 11,319,328 | 16,478,265 | (2,730,455) | 25,093,381 |
BALANCES (in shares) at Sep. 30, 2019 | 2,624,343 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 361,883 | 361,883 | |||
Other comprehensive income, net of tax | (195,012) | (195,012) | |||
BALANCES at Dec. 31, 2019 | $ 26,243 | 11,319,328 | 16,840,148 | (2,925,467) | 25,260,252 |
BALANCES (in shares) at Dec. 31, 2019 | 2,624,343 | ||||
BALANCES at Jun. 30, 2020 | $ 26,243 | 11,319,328 | 17,002,468 | (4,835,836) | 23,512,203 |
BALANCES (in shares) at Jun. 30, 2020 | 2,624,343 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,778,848 | 1,778,848 | |||
Other comprehensive income, net of tax | 34,007 | 34,007 | |||
BALANCES at Sep. 30, 2020 | $ 26,243 | 11,319,328 | 18,781,316 | (4,801,829) | 25,325,058 |
BALANCES (in shares) at Sep. 30, 2020 | 2,624,343 | ||||
BALANCES at Jun. 30, 2020 | $ 26,243 | 11,319,328 | 17,002,468 | (4,835,836) | 23,512,203 |
BALANCES (in shares) at Jun. 30, 2020 | 2,624,343 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,736,385 | ||||
Other comprehensive income, net of tax | (50,438) | ||||
BALANCES at Dec. 31, 2020 | $ 26,243 | 11,319,328 | 20,738,853 | (4,886,274) | 27,198,150 |
BALANCES (in shares) at Dec. 31, 2020 | 2,624,343 | ||||
BALANCES at Sep. 30, 2020 | $ 26,243 | 11,319,328 | 18,781,316 | (4,801,829) | 25,325,058 |
BALANCES (in shares) at Sep. 30, 2020 | 2,624,343 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,957,537 | 1,957,537 | |||
Other comprehensive income, net of tax | (84,445) | (84,445) | |||
BALANCES at Dec. 31, 2020 | $ 26,243 | $ 11,319,328 | $ 20,738,853 | $ (4,886,274) | $ 27,198,150 |
BALANCES (in shares) at Dec. 31, 2020 | 2,624,343 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 3,736,385 | $ 929,779 | |||
Adjustments to reconcile net income to net cash flows provided by operating activities | |||||
Provision for loan losses | $ 50,000 | 50,000 | 0 | $ 135,000 | |
Depreciation | 275,684 | 282,449 | |||
Amortization and accretion | 19,585 | 29,245 | |||
Origination of mortgage loans held for sale | (289,881,006) | (150,995,339) | |||
Proceeds from sales of mortgage loans held for sale | 299,644,824 | 154,091,310 | |||
Gain on sale of mortgage loans held for sale | (3,619,405) | $ (936,979) | (6,622,505) | (2,187,722) | |
Loss (Gain) on sale of other real estate owned, net | 11,573 | (104,890) | 11,573 | (109,708) | |
(Gain) Loss on sale or disposal of assets, net | (7,510) | 1,650 | |||
Changes in assets and liabilities: | |||||
Accrued interest receivable and other assets | (21,263) | (231,896) | |||
Accrued interest payable and other liabilities | (784,834) | 862,089 | |||
Net cash flows provided by operating activities | 6,420,933 | 2,671,857 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Proceeds from maturities or calls of securities available for sale | 1,470,923 | 348,168 | |||
Purchase of securities available for sale | (3,815,000) | (2,104,432) | |||
Change in loans | 4,600,637 | 7,276,779 | |||
Change from redemption of FHLB stock | 314,300 | 1,026,000 | |||
Change in interest bearing deposits in banks | 2,030,788 | 3,472,022 | |||
Proceeds from sale of other real estate owned | 1,737,762 | 1,061,484 | |||
Charge-offs and (capital expenditures) on other real estate owned | 152,765 | (36,852) | |||
Proceeds from sale of premises and equipment | 26,400 | 8,000 | |||
Purchase of premises and equipment, net | (476,627) | (156,912) | |||
Net cash flows provided by investing activities | 6,041,948 | 10,894,257 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net increase (decrease) in deposits | (244,638) | 14,126,697 | |||
FHLB advance proceeds | 45,500,000 | 847,200,000 | |||
FHLB advance repayments | (50,500,000) | (870,900,000) | |||
Change in advance payments by borrowers for property taxes and insurance | (1,969,638) | (2,960,286) | |||
Net cash flows used in financing activities | (7,214,276) | (12,533,589) | |||
Net Change in Cash and Cash Equivalents | 5,248,605 | 1,032,525 | |||
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR | 13,106,041 | 5,630,770 | 5,630,770 | ||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 18,354,646 | $ 6,663,295 | 18,354,646 | 6,663,295 | $ 13,106,041 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | |||||
Cash paid for interest | 615,616 | 908,675 | |||
Loans transferred to other real estate owned | $ 0 | $ 136,671 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTE 1 – Summary of Significant Accounting Policies Organization On April 30, 2019, The Equitable Bank, S.S.B. (the “Bank”) converted to a stock savings bank and is now organized in the mutual holding company structure. The Bank issued all of its outstanding stock to a new holding company, TEB Bancorp, Inc. (the “Company”), which sold 1,309,547 shares of common stock to the public at 10.00 per share, representing 49.9% of its outstanding shares of common stock for gross proceeds of approximately $13.1 million. The net proceeds received were approximately $11.4 million after offering costs. TEB Bancorp, Inc. is organized as a corporation under the laws of the State of Maryland. The Bank utilized $100,000 of proceeds received from the offering as initial capitalization of TEB MHC. TEB MHC has been organized as a mutual holding company under the laws of the State of Wisconsin and owns 1,314,796 shares, or 50.1% of the outstanding common stock of TEB Bancorp, Inc. The Bank is a state-chartered savings bank providing a full range of financial services. The Bank grants commercial, residential and consumer loans, and accepts deposits from customers primarily in the Metropolitan Milwaukee area, which is in southeastern Wisconsin. The Bank is subject to competition from other financial institutions and nonfinancial institutions providing financial products. Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. All depositors who had liquidation rights with respect to the Bank as of the effective date of the reorganization continue to have such rights solely with respect to TEB MHC so long as they continue to hold their deposit accounts with the Bank. In addition, all persons who become depositors of the Bank subsequent to the reorganization will have such liquidation rights with respect to TEB MHC. At December 31, 2020, the significant assets of TEB Bancorp, Inc. were the capital stock of the Bank and a deposit account held at the Bank. The liabilities of TEB Bancorp, Inc. were insignificant. The Company is subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company is subject to regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). Basis of Presentation The accompanying unaudited condensed consolidated financial statements of TEB Bancorp, Inc. and its wholly-owned subsidiaries were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto of the Company as of and for the year ended June 30, 2020. The interim condensed consolidated financial statements of the Company as of December 31, 2020, and for the three and six months ended December 31, 2020 and 2019 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. Such adjustments are the only adjustments contained in the interim financial statements. The results of operations for the three and six months ended December 31, 2020, are not necessarily indicative of the results to be achieved for the year ending June 30, 2021 or any other period. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements as of and for the periods ending December 31, 2020 and 2019 and June 30, 2020 and 2019 include the accounts and operations of TEB Bancorp, Inc. and its wholly-owned subsidiaries, the Bank, Equitable Investment Corp., and Equity Credit Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. Emerging Growth Company Status Under the Jumpstart Our Business Startups Act (the "JOBS Act"), a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an "emerging growth company". The Company qualifies as an emerging growth company and believes that it will continue to qualify as an emerging growth company. An emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. The Company has elected to comply with new or amended accounting pronouncements in the same manner as a private company. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. Use of Estimates In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management of the Company is required 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 condensed consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the pension actuarial assumptions, and the valuation of deferred tax assets. Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including all interest and dividend income generated from financial instruments. Certain noninterest income items, including gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated and determined to not fall within the scope of ASC 606. Elements of noninterest income that fall within the scope of ASC 606 are as follows: Service charges and other fees The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements and determined that the agreements can be terminated at any time by either the Company or the account holder. Transaction fees, such as wires and overdraft charges, are settled the day the performance obligation is satisfied. The Company’s monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition for service charges and other fees. Interchange fees Customers use a Bank-issued debit card to purchase goods and services, and the Company earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. These funds are included in “Service fees on deposits” on the Condensed Consolidated Statements of Operations. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition for interchange fees. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and balances due from banks and federal funds sold, all of which mature within 90 days. The Company maintains amounts due from banks, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Interest Bearing Deposits in Banks Interest bearing deposits in banks mature within one year and are carried at cost, which approximates fair value. Securities Available for sale securities are stated at fair value and unrealized holding gains and losses on available for sale securities are reported as accumulated other comprehensive income (loss), net of applicable deferred income tax and adjusted for any applicable valuation allowance, a separate component of equity. Available for sale securities are written down to market value through operations if an impairment of value is deemed other than temporary due to credit issues. Gains or losses on the sale of securities, if any, are determined on the specific identification method. Securities transactions are recorded on the trade date. Loans Loans are carried at the unpaid principal balance adjusted for deferred loan fees and costs and charge-offs. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amounts amortized as an adjustment of the related loan’s yield over the contractual life of the related loan. Interest on loans is accrued on the unpaid principal balances as earned. Loans are normally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal payments. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on a loan, it is management’s practice to place such loan on nonaccrual status immediately, rather than delaying such action until the loan becomes 90 days past due. When a loan is placed on nonaccrual, previously accrued and uncollected interest on such loan is reversed, amortization of related loan fees is suspended, and income is recorded only to the extent that loan payments are subsequently received in cash and a determination has been made that the principal balance of the loan is collectible. If collectability of the principal is in doubt, payments received are applied to loan principal. A troubled debt restructuring (“TDR”) includes a loan modification where a borrower is experiencing financial difficulty and a concession is granted to that borrower that would not otherwise have been considered except for the borrower’s financial difficulties. All TDRs are classified as impaired loans. TDRs may be on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. Loans deemed nonaccrual may return to accrued status based on performance in accordance with terms of the restructuring, generally six months. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payment when due. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to operations. All sales are made without recourse. Allowance for Loan Losses The allowance for loan losses (“ALL”) is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALL. The ALL consists of specific reserves on certain impaired loans from analyses developed through specific credit allocations for individual loans. The specific reserve relates to all loans for which the ALL is estimated on a loan by loan basis using either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. The general reserve is based on the Company’s historical loss experience along with consideration of certain qualitative factors such as (i) changes in the nature, volume, and terms of loans, (ii) changes in lending personnel, (iii) changes in the quality of the loan review function, (iv) changes in nature and volume of past-due, nonaccrual, and/or classified loans, (v) changes in concentration of credit risk, (vi) changes in economic and industry conditions, (vii) changes in legal and regulatory requirements, (viii) unemployment and inflation statistics, and (ix) changes in underlying collateral values. There are many factors affecting the ALL; some are quantitative while others require qualitative judgment. The ALL reflects management’s best estimate of the probable and inherent losses on loans. The adequacy of the ALL is reviewed and approved by the Company’s Board of Directors. Allocations of the ALL may be made for specific loans, but the entire ALL is available for any loan that, in management’s judgment, should be charged-off. As an integral part of their examination process, various regulatory agencies review the ALL as well. Such agencies may require that changes in the ALL be recognized when such regulatory credit evaluations differ from those of management based on information available to the regulators at the time of their examinations. Premises and Equipment, Net Premises and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization expense is provided on the straight-line method over the estimated useful life of the asset for financial reporting purposes, and the straight-line and accelerated methods for income tax purposes. Amortization of leasehold improvements is provided on the straight-line method over the lesser of the term of the respective lease or the estimated economic life of the improvements. Other Real Estate Owned, Net Other real estate owned is initially recorded at the fair market value of the real estate acquired less the estimated costs to sell the real estate at the date title is received, establishing a new cost basis, with any write-down charged to the allowance for loan losses. Costs relating to development or improvement of property are capitalized up to the fair value of the property. Valuations are periodically performed by management and independent third parties and a charge to expense is taken if the carrying value of a property exceeds its fair value less estimated costs to sell. Income and expense related to the operations of other real estate owned is recorded net in “Cost of operations of other real estate owned” as a component of non-interest expenses on the condensed consolidated statements of operations. Gains and losses on the sale of other real estate owned are recorded in “Gain (loss) on sale of other real estate owned” as a component of non-interest income in the condensed consolidated statements of operations. Federal Home Loan Bank Stock The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of FHLB stock based on the Bank’s level of borrowings from the FHLB and other factors, and may invest in additional amounts of FHLB stock. The Bank’s investment in FHLB of Chicago stock meets the minimum amount required by current regulations and is carried at cost, which approximates fair value. FHLB stock is evaluated quarterly for impairment. Based on management’s evaluation, no impairment has been recorded on these securities. Both cash and stock dividends are reported as income. Defined Benefit Pension Plan The Bank has a defined benefit pension plan (the “Plan”) covering substantially all of its employees hired prior to December 31, 2012. The benefits are based on years of service and the employee’s average monthly pay received during the five highest consecutive calendar years in the last 10 years of employment under the Plan. Management contributes annually the amounts necessary to provide for defined benefit payments upon retirement or death as determined by the Plan’s actuary. The Plan was frozen effective December 31, 2012 for all employees. No additional benefits are being accrued for active participants after that date and no new participants will be entered into the Plan. The Bank records annual amounts relating to the Plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Bank reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends where appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income (loss) and amortized to net periodic pension cost over future periods. The Bank believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions. Comprehensive Income U.S. GAAP generally requires that recognized revenue, expenses, gains, and losses be included in earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section and changes in the funded status of the pension plan, such items, along with net income are components of comprehensive income. Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes the tax effects from an uncertain tax position in the consolidated financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized, upon ultimate settlement with the relevant tax authority. The Company recognizes interest and penalties accrued or released related to uncertain tax positions in current income tax expense or benefit. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Advertising Advertising costs are accrued and expensed in the period incurred. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. Significant Events In December 2019, a coronavirus (COVID-19) was reported in China and in March 2020 was declared a national emergency in the United States. The COVID-19 pandemic has caused significant economic dislocation as many state and local governments have ordered non-essential businesses to close and residents to shelter in place at home. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and how the economy may be reopened. In order to protect the health of employees and customers, the Company has temporarily limited lobby hours and transitioned as many employees to remote work as possible. Nonetheless, the Company has not incurred any significant disruptions to its business activities. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020 and provided over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). Although we were not already a qualified SBA lender, we became eligible to originate PPP loans by completing the required SBA documentation. In October 2020, the SBA approved an extension of the deferment period without modifications on the PPP loans originated. The Company agreed to extend the deferment period for six months from the first payment date. An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs”; or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%; (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. The Company receives a processing fee from the SBA ranging from 1% to 5% depending on the size of the loan, which is offset by a third-party servicing agent fee ranging from 0.25% to 1.0%. As of December 31, 2020, the Company originated 1 7 PPP loans totaling $1.1 million and generated approximately $44,000 from the processing fees. All PPP loan originations occurred before the end of the December 31, 2020 reporting period. As of December 31, 2020, 14 PPP loans totaling $741,000 had been forgiven. To work with customers impacted by COVID-19, the Company is offering short-term loan modificatiosn (i.e., three months or less with the potential to extend up to six months, if necessary) on a case by case basis to borrowers who were current in their payments at the inception of the loan modification program. The Company additionally offers, to borrowers that qualify, loan deferrals under Section 4013 of the CARES Act. Loans less than 30 days past due as of December 31, 2019 are considered current for COVID-19 modifications and therefore qualify for a loan deferral. A financial institution can then suspend the requirements under U.S. GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a TDR, and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either January 1, 2021 or the 60th day after the end of the COVID-19 national emergency. Similarly, the Financial Accounting Standards Board (“FASB”) has confirmed that short-term modifications made on a good faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. Lastly, prior to the enactment of the CARES Act, the banking regulatory agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act. On December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2020 (the “CAA Act”), which both funds the federal government until September 30, 2021 and broadly addresses additional COVID-19 responses and relief. Amoung the additional relief measures included are certain extensions to elements of the CARES Act, including extension of temporary relief from TDRs established under Section 4013 of the CARES Act to the earlier of a) January 1, 2022, or b) the date that is 60 days after the date on which the national COVID-19 emergency terminates. As of December 31, 2020, the Company had received requests to modify 93 loans aggregating $28.0 million, which excludes any loans that had been paid off subsequent to modification. Of these modifications, $27.7 million, or 98.9%, were performing in accordance with the accounting treatment under Section 4013 of the CARES Act and therefore did not qualify as TDRs. As of December 31, 2020, 84 of these modifications totaling $26.2 million have resumed monthly loan payments and nine modifications totaling $1.8 million remain in a deferred status. Three loans totaling $297,000 were modified and did not qualify for the favorable accounting treatment under Section 4013 of the CARES Act and therefore each loan was reported as a TDR; however, one of the loans was transferred out of TDR status after receiving six consequtive monthly payments after the end of the deferral period. Management has evaluated the loans and determined that based on the liquidation value of the collateral, no specific reserve is necessary. Details with respect to loan modification requests are as follows: As of December 31, 2020, the Company had received requests to modify 93 loans aggregating $28.0 million, which excludes any loans that had been paid off subsequent to modification. Of these modifications, $27.7 million, or 98.9%, were performing in accordance with the accounting treatment under Section 4013 of the CARES Act and therefore did not qualify as TDRs. As of December 31, 2020, 84 of these modifications totaling $26.2 million have resumed monthly loan payments and nine modifications totaling $1.8 million remain in a deferred status. Three loans totaling $297,000 were modified and did not qualify for the favorable accounting treatment under Section 4013 of the CARES Act and therefore each loan was reported as a TDR; however, one of the loans was transferred out of TDR status after receiving six consequtive monthly payments after the end of the deferral period. Management has evaluated the loans and determined that based on the liquidation value of the collateral, no specific reserve is necessary. Details with respect to loan modification requests are as follows: As of December 31, 2020 Payments Resumed Payments Deferred Loan Classification Number of Loans Balance Number of Loans Balance Construction, land, development 2 $ 115,294 0 $ — 1-4 family owner occupied 47 7,041,514 7 522,773 1-4 family non-owner occupied 15 2,239,902 1 115,088 Multifamily 12 10,566,128 0 — Commercial owner occupied 2 311,979 1 1,157,876 Commercial non-owner occupied 3 5,899,095 0 — Consumer and installment loans 3 42,697 0 — Total loan modification requests 84 $ 26,216,609 9 $ 1,795,737 The Company’s allowance for loan losses was $1.4 million at December 31, 2020 and June 30, 2020. At December 31, 2020 and June 30, 2020, the allowance for loan losses represented 0.60% and 0.57% of total loans, respectively. During 2020, the Company adjusted the economic risk factor methodology to incorporate the current economic implications and the higher unemployment rate from the COVID-19 pandemic. In determining its allowance for loan loss level at December 31, 2020, the Company considered the health and composition of its loan portfolio during the COVID-19 pandemic. At December 31, 2020, approximately 98.8% of the Company’s loan portfolio is collateralized by real estate. Approximately 1.6% of the Company’s loan portfolio is to borrowers in the more particularly hard-hit industries (including the restaurant and food service industries, retail industry, and hospitality and tourism industries) and the Company has no international exposure. Subsequent Events Management has reviewed the Company's operations for potential disclosure or financial statement impacts related to events occurring after December 31, 2020, other than those discussed above in “Significant Events”, but prior to the release of these financial statements. Based on the results of this review, no subsequent event disclosure or financial statement impacts to these financial statements are required as of February 12, 2021. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | NOTE 2 – Recent Accounting Pronouncements The FASB issues Accounting Standards Updates (“ASU”s) to the FASB Accounting Standards Codification (“ASC”). This section provides a summary description of recent ASUs that had or that management expects may have an impact on the consolidated financial statements issued upon adoption. The Company is classified as an emerging growth company and has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Effective dates reflect this election. Recently Adopted Accounting Pronouncements In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 amends guidance on the amortization period of premiums on certain purchased callable debt securities. The amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. ASU 2017-08 is effective for annual periods beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted ASU 2017-08 effective July 1, 2020 and the adoption did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, including the removal, modification to, and addition of certain disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. Although this ASU impacts the Company’s fair value disclosures, there is no additional impact to the financial statements. Recently Issued, But Not Yet Effective Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Topic 842 was subsequently amended by ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842)”. The amendments in this update increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term of 12 months or less, the amendments permit lessees to make an accounting policy election by class of underlying assets not to recognize lease assets and lease liabilities. For finance leases, the amendments in this update require a lessee to (1) recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payments, on the balance sheet; (2) recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of operations; (3) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the least liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, the amendments in this update require a lessee to (1) recognized a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, on the balance sheet; (2) recognized a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; (3) classify all cash payments within operating activities in the statement of cash flows. On October 16, 2019, the FASB approved the proposal to delay the effective date for this standard for private and all other entities. Due to the Company’s extended transition period election, the amendments are effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company’s leases are operating leases and ASU 2016-02 will require the Company to add them to its consolidated balance sheet. The Company’s operating leases are predominately related to real estate. Management is currently evaluating other impacts this guidance will have on the consolidated results of operations, financial presentation, and cash flows of the Company. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments.” Topic 326 was subsequently amended by ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses; ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses”; and ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief.” This ASU replaces the current incurred loss impairment methodology with a methodology that reflected expected credit losses measured at amortized cost and certain other instruments, including loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures. On October 16, 2019, the FASB approved the proposal to delay the effective date for this standard for private and all other entities. Due to the Company’s extended transition period election, the update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Management is currently evaluating the potential impact on its consolidated results of operations, financial position, and cash flows; however, due to the significant differences in the revised guidance from existing U.S. GAAP, the implementation of this guidance may result in material changes in the Company’s accounting for credit losses on financial instruments. In August 2018, the FASB issued ASU No. 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 applies to all employers that sponsor defined benefit pension or other postretirement plans. The amendments require that an employer disclose an explanation of the reasons for significant gains and losses related to changes in the net benefit obligation for the period. Multiple disclosure requirements are also removed with this amendment, including: (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; (2) the amount and timing of plan assets expected to be returned to the employer; (3) related party disclosures about significant transactions between the employer or related parties and the plan; and (4) the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs. Additional disclosure requirements contained within Subtopic 715-20 are also clarified. The amendments are effective for fiscal years ending after December 15, 2021. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the consolidated results of operations, financial position, or cash flows of the Company. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share | |
Earnings Per Share | NOTE 3 – Earnings Per Share Earnings per share is based on net income divided by the weighted average number of shares outstanding during the period. Earnings per share is presented for the three and six month periods ended December 31, 2020 and 2019. Three Months Ended Three Months Ended Six Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income $ 1,957,537 361,883 $ 3,736,385 929,779 Basic potential common shares Weighted average shares outstanding 2,624,343 2,624,343 2,624,343 2,624,343 Basic weighted average shares outstanding 2,624,343 2,624,343 2,624,343 2,624,343 Diluted potential common shares — — — — Diluted weighted average shares outstanding 2,624,343 2,624,343 2,624,343 2,624,343 Basic earnings per share $ 0.75 0.14 $ 1.42 0.35 Diluted earnings per share $ 0.75 0.14 $ 1.42 0.35 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | NOTE 4 – Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer liabilities in an orderly transaction between market participants at the measurement date (exit price) and establishes a framework for measuring fair value. To determine fair value the Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: > Level 1 - Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as listed equities and U.S. Treasury securities. > Level 2 - Fair value is based upon quoted prices for similar, but not identical, assets and liabilities in active markets, and other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. This also includes quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data. > Level 3 - Fair value is based upon financial models using primarily unobservable inputs. Unobservable inputs reflect the Company's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets Available for sale securities Where quoted prices for securities are available in an active market, those securities are classified within Level 1 of the valuation hierarchy. If such quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of securities with similar characteristics, which would generally be classified within Level 2 of the valuation hierarchy, include certain AAA-rated U.S. government sponsored agency securities, municipal obligations, and mortgage-backed securities. A security using financial models based upon primarily unobservable inputs, such as commercial paper, would generally be classified within Level 3 of the valuation hierarchy. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the collateral exceeds the recorded investments in such loans and for which carrying amount will remain at amortized cost. Impaired loans where an allowance is established based on the fair value of collateral or expected cash flows require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, less selling costs, the Company records the impaired loan as a non-recurring Level 3 valuation. At December 31, 2020 and June 30, 2020, substantially all of the impaired loans were evaluated based on the fair value of the collateral with adjustments to their appraised values ranging from 5% to 15% for selling costs. Other real estate owned, net Assets on which the underlying collateral has been repossessed are initially recorded at the fair market value of the real estate acquired less estimated costs to sell, establishing a new cost basis. Subsequently, other real estate owned is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, less selling costs, the Company records the repossessed asset as a non-recurring Level 3 valuation. At December 31, 2020 and June 30, 2020 substantially all of the other real estate owned was evaluated based on the fair value of the collateral with adjustments to their appraised values ranging from 5% to 15% for selling costs. The following tables set forth, by level within the fair value hierarchy, the Company's financial assets that were accounted for at fair value on a recurring and non-recurring basis as of December 31, 2020 and June 30, 2020, respectively. According to fair value guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following table presents assets measured at fair value on a recurring basis: Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total Securities classified as available for sale: Obligations of states and political subdivisions $ — $ 20,572,232 $ — $ 20,572,232 Mortgage-backed securities — 1,360,250 — 1,360,250 Certificates of deposit — 843,436 — 843,436 Total $ — $ 22,775,918 $ — $ 22,775,918 Fair Value as of June 30, 2020 Level 1 Level 2 Level 3 Total Securities classified as available for sale: Obligations of states and political subdivisions $ — $ 18,005,082 $ — $ 18,005,082 Mortgage-backed securities — 1,443,643 — 1,443,643 Certificates of deposit — 848,870 — 848,870 Total $ — $ 20,297,595 $ — $ 20,297,595 Assets measured at fair value on non-recurring basis: Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total Impaired loans with a valuation allowance, net $ — $ — $ 191,923 $ 191,923 Other real estate owned, net — — 386,155 386,155 Total $ — $ — $ 578,078 $ 578,078 Fair Value as of June 30, 2020 Level 1 Level 2 Level 3 Total Impaired loans with a valuation allowance, net $ — $ — $ 248,930 $ 248,930 Other real estate owned, net — — 2,288,255 2,288,255 Total $ — $ — $ 2,537,185 $ 2,537,185 Loans with a carrying amount of $372,000 and $455,000 were considered impaired as of December 31, 2020 and June 30, 2020 and a specific allowance for loan losses of $180,000 and $206,000, respectively, was established against these loans. Other real estate owned with carrying amounts of $386,000 and $2.3 million were determined to be at their fair value as of December 31, 2020 and June 20, 2020, respectively. The following presents quantitative information about nonrecurring Level 3 fair value measurements: As of December 31, 2020 Fair Value Valuation Technique Unobservable Input(s) Range/Weighted Average Impaired loans with a valuation allowance, net $ 191,923 Market price or appraised value Management discount on appraised values 5% - 15% Other real estate owned, net $ 386,155 Market price or appraised value Management discount on appraised values 5% - 15% As of June 30, 2020 Fair Value Valuation Technique Unobservable Input(s) Range/Weighted Average Impaired loans with a valuation allowance, net $ 248,930 Market price or appraised value Management discount on appraised values 5% - 15% Other real estate owned, net $ 2,288,255 Market price or appraised value Management discount on appraised values 5% - 15% |
Cash and Due From Banks
Cash and Due From Banks | 6 Months Ended |
Dec. 31, 2020 | |
Cash and Due From Banks | |
Cash and Due From Banks | NOTE 5 – Cash and Due From Banks In March 2020, the Federal Reserve Board reduced reserve requirements for U.S. banks to 0%. Accordingly, the Bank had no required reserves with the Federal Reserve Bank of Chicago at December 31, 2020 and June 30, 2020. |
Available for Sale Securities
Available for Sale Securities | 6 Months Ended |
Dec. 31, 2020 | |
Available for Sale Securities | |
Available for Sale Securities | NOTE 6 – Available for Sale Securities Amortized costs and fair values of available for sale securities are summarized as follows: December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 19,958,955 $ 632,907 $ 19,630 $ 20,572,232 Mortgage-backed securities 1,300,987 59,263 — 1,360,250 Certificates of deposit 800,000 43,436 — 843,436 $ 22,059,942 $ 735,606 $ 19,630 $ 22,775,918 June 30, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 17,563,698 $ 457,440 $ 16,056 $ 18,005,082 Mortgage-backed securities 1,371,753 71,890 — 1,443,643 Certificates of deposit 800,000 48,870 — 848,870 $ 19,735,451 $ 578,200 $ 16,056 $ 20,297,595 The following tables present the portion of the Company's available for sale securities portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position: December 31, 2020 Continuous Unrealized Continuous Unrealized Losses Existing for Less Losses Existing for 12 Months Than 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Obligations of states and political subdivisions $ 918,725 $ 11,275 $ 298,170 $ 8,355 $ 1,216,895 $ 19,630 Management does not believe any individual unrealized loss as of December 31, 2020 represents other than temporary impairment. The Bank holds $298,170, comprised of four securities, in obligations of states and political subdivisions, at December 31, 2020 that have an unrealized loss existing for 12 months or greater of $8,355. Management believes the temporary impairment in fair value was caused by market fluctuations in interest rates. Although these securities are classified as available for sale, management does not have the intent to sell the security and it is more likely than not it will be able to hold the security through a recovery period or until maturity. June 30, 2020 Continuous Unrealized Continuous Unrealized Losses Existing for Less Losses Existing for 12 Months Than 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Obligations of states and political subdivisions $ — $ — $ 693,687 $ 16,056 $ 693,687 $ 16,056 Management does not believe any individual unrealized loss as of June 30, 2020 represents other than temporary impairment. The Bank holds $693,687, comprised of two securities, in obligations of states and political subdivisions at June 30, 2020 that have an unrealized loss existing for 12 months or greater. Management believes the temporary impairment in fair value was caused by market fluctuations in interest rates. Although these securities are classified as available for sale, management does not have the intent to sell the security and it is more likely than not it will be able to hold the security through a recovery period or until maturity. The amortized cost and fair value of available for sale securities as of December 31, 2020 are shown below by contractual maturity. Expected maturities of mortgage-backed securities will differ from contractual maturities since the anticipated maturities are not readily determinable. Amortized Cost Fair Value Due in one year or less $ 866,680 $ 868,877 Due after one year through 5 years 9,718,935 9,973,308 Due after 5 years through 10 years 5,753,340 6,015,696 Due after 10 years 4,420,000 4,557,787 Subtotal 20,758,955 21,415,668 Mortgage backed securities Due after one year through 5 years — — Due after 5 years through 10 years 1,300,987 1,360,250 Total $ 22,059,942 $ 22,775,918 During the three months ended December 31, 2020 and 2019, the Bank did not sell any available for sale securities. The Bank did not have any available for sale securities pledged at December 31, 2020 and June 30, 2020. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | NOTE 7 – Loans and Allowance for Loan Losses Major classifications of loans are as follows: December 31, 2020 June 30, 2020 Construction, land, development $ 3,460,986 $ 4,598,382 1-4 family owner occupied 85,247,077 100,506,311 1-4 family non-owner occupied 22,592,637 21,213,680 Multifamily 88,769,856 76,444,156 Commercial owner occupied 6,474,308 6,733,183 Commercial non-owner occupied 19,679,205 20,237,534 Consumer and installment loans 7,829,263 8,920,659 Total loans 234,053,332 238,653,905 Less: Allowance for loan losses (1,403,491) (1,353,427) Loans, net $ 232,649,841 $ 237,300,478 In the table above, outstanding loan balances are presented net of deferred loan origination fees of $162,000 at December 31, 2020 and $184,000 at June 30, 2020. Non-performing loans are as follows: December 31, 2020 June 30, 2020 Nonaccrual Loans $ 1,280,793 $ 1,341,174 Total non-performing loans $ 1,280,793 $ 1,341,174 Restructured loans, accruing $ — $ — Total impaired loans $ 1,280,793 $ 1,341,174 Impaired loans are as follows as of and for the following periods ended: December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total With related allowance recorded Recorded investment $ — $ 93,110 $ — $ — $ 182,853 $ — $ 95,763 $ 371,726 Unpaid principal balance — 93,110 — — 182,853 — 95,763 371,726 Related allowance — 61,491 — — 64,430 — 53,882 179,803 With no related allowance recorded Recorded investment $ — $ 799,428 $ 79,265 $ — $ — $ — $ 30,374 $ 909,067 Unpaid principal balance — 799,428 79,265 — — — 30,374 909,067 Related allowance — — — — — — — — Total Recorded investment $ — $ 892,538 $ 79,265 $ — $ 182,853 $ — $ 126,137 $ 1,280,793 Unpaid principal balance — 892,538 79,265 — 182,853 — 126,137 1,280,793 Related allowance — 61,491 — — 64,430 — 53,882 179,803 Three Months Ended December 31, 2020 Average recorded balance $ — $ 911,182 $ 19,816 $ — $ 180,387 $ — $ 130,024 $ 1,241,409 — Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 5,021 — — 2,207 — — 7,228 Total interest on impaired loans $ — $ 5,021 $ — $ — $ 2,207 $ — $ — $ 7,228 Six Months Ended December 31, 2020 Average recorded balance $ — $ 934,319 $ 19,548 $ — $ 181,222 $ — $ 129,846 $ 1,264,935 — Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 8,409 — — 13,659 — — 22,068 Total interest on impaired loans $ — $ 8,409 $ — $ — $ 13,659 $ — $ — $ 22,068 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total With related allowance recorded Recorded investment $ — $ 161,931 $ — $ — $ 189,249 $ — $ 103,673 $ 454,853 Unpaid principal balance — 161,931 — — 189,249 — 103,673 454,853 Related allowance — 64,780 — — 79,351 — 61,792 205,923 With no related allowance recorded Recorded investment $ — $ 803,803 $ 57,574 $ — $ — $ — $ 24,944 $ 886,321 Unpaid principal balance — 803,803 57,574 — — — 24,944 886,321 Related allowance — — — — — — — — Total Recorded investment $ — $ 965,734 $ 57,574 $ — $ 189,249 $ — $ 128,617 $ 1,341,174 Unpaid principal balance — 965,734 57,574 — 189,249 — 128,617 1,341,174 Related allowance — 64,780 — — 79,351 — 61,792 205,923 Average recorded balance $ — $ 1,020,175 $ 14,948 $ — $ 191,166 $ — $ 132,521 $ 1,358,810 Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 16,071 298 — 4,382 — 712 21,463 Total interest on impaired loans $ — $ 16,071 $ 298 $ — $ 4,382 $ — $ 712 $ 21,463 December 31, 2019 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total With related allowance recorded Recorded investment $ — $ 97,774 $ — $ — $ 191,014 $ — $ 108,728 $ 397,516 Unpaid principal balance — 97,774 — — 191,014 — 108,728 397,516 Related allowance — 43,470 — — 76,086 — 66,848 186,404 With no related allowance recorded Recorded investment $ — $ 715,327 $ — $ — $ — $ — $ — $ 715,327 Unpaid principal balance — 715,327 — — — — — 715,327 Related allowance — — — — — — — — Total Recorded investment $ — $ 813,101 $ — $ — $ 191,014 $ — $ 108,728 $ 1,112,843 Unpaid principal balance — 813,101 — — 191,014 — 108,728 1,112,843 Related allowance — 43,470 — — 76,086 — 66,848 186,404 Three Months Ended December 31, 2019 Average recorded balance $ — $ 875,987 $ — $ — $ 191,651 $ — $ 122,114 $ 1,189,752 Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 4,012 — — 1,079 — — 5,091 Total interest on impaired loans $ — $ 4,012 $ — $ — $ 1,079 $ — $ — $ 5,091 Six Months Ended December 31, 2019 Average recorded balance $ — $ 1,070,070 $ 2,829 $ — $ 192,294 $ — $ 123,339 $ 1,388,532 Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 8,803 298 — 4,382 — — 13,483 Total interest in impaired loans $ — $ 8,803 $ 298 $ — $ 4,382 $ — $ — $ 13,483 Loans are individually evaluated for impairment once a weakness or adverse trend is identified that may jeopardize the repayment of the loan in accordance with the terms of the loan. The following are the Company's risk rating definitions: Pass: Loans in this category are to persons or entities that span from having financial characteristics of unquestioned strength to entities that have potential risks that if left uncorrected could at some point result in deterioration of the Bank’s credit position. Loans in this category are rated “1” through “4” with the lower risk being identified with a lower numerical rating. General characteristics that are monitored include borrower net worth, liquidity and entity profitability. Special Mention: Loans in this category contain some weakness or potential weakness that if left uncorrected may result in the deterioration of the repayment capacity. Loans in this category are rated as a “5”. Substandard: Loans in this category exhibit the same characteristics as “5” rated credits and are inadequately protected by the current net worth and paying capacity of the obligor and/or of the collateral pledged as security for the asset. Loans in this category are rated as a “6”. Real Estate in Judgement: Loans in this category have been placed in non-accrual and the Bank has taken legal action to preserve its position. Loans in this category are rated as a “7”. The following is a summary of loans by risk rating: December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Occupied Occupied Multifamily Occupied Occupied Installment Total 1-4 $ 3,460,986 $ 84,249,325 $ 22,513,372 $ 88,769,856 $ 5,133,579 $ 11,903,756 $ 7,703,126 $ 223,734,000 5 — 105,214 — — 1,157,876 7,775,449 — 9,038,539 6 — 456,331 79,265 — 182,853 — 28,024 746,473 7 — 436,207 — — — — 98,113 534,320 Total $ 3,460,986 $ 85,247,077 $ 22,592,637 $ 88,769,856 $ 6,474,308 $ 19,679,205 $ 7,829,263 $ 234,053,332 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total 1-4 $ 4,598,382 $ 99,344,653 $ 21,156,106 $ 76,444,156 $ 6,543,934 $ 12,313,923 $ 8,792,042 $ 229,193,196 5 — 195,924 — — — 7,923,611 — 8,119,535 6 — 851,208 57,574 — 189,249 — 52,448 1,150,479 7 — 114,526 — — — — 76,169 190,695 Total $ 4,598,382 $ 100,506,311 $ 21,213,680 $ 76,444,156 $ 6,733,183 $ 20,237,534 $ 8,920,659 $ 238,653,905 The following is a summary of past due loans: December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total 30‑59 days, accruing $ — $ 743,432 $ — $ — $ — $ — $ 40,792 $ 784,224 60‑89 days, accruing — 41,797 — — — — — 41,797 90 days & over or nonaccrual — 892,538 79,265 — 182,853 — 126,137 1,280,793 Total $ — $ 1,677,767 $ 79,265 $ — $ 182,853 $ — $ 166,929 $ 2,106,814 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total 30‑59 days, accruing $ 69,174 $ 1,274,585 $ — $ — $ — $ — $ 63,765 $ 1,407,524 60‑89 days, accruing — 114,338 — — — — — 114,338 90 days & over or nonaccrual — 965,734 57,574 — 189,249 — 128,617 1,341,174 Total $ 69,174 $ 2,354,657 $ 57,574 $ — $ 189,249 $ — $ 192,382 $ 2,863,036 TDRs involve the granting of some concession to a distressed borrower resulting in a loan modification such as; payment schedule changes, interest rate reductions, or principal charge-offs.There were two new TDRs during the six months ending December 31, 2020, totaling $104,000. There were also no TDRs that defaulted during the period that were modified within the previous six months as of December 31, 2020. One TDR was transferred out of TDR status during the six months ended December 30, 2020. There were two TDRs as of December 31, 2020 and one TDR as of June 30, 2020. As discussed within Note 1, under Section 4013 of the CARES Act, a financial institution can suspend the requirements under U.S. GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a TDR and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Management has evaluated the loans and determined that based on the liquidation value of the collateral, no specific reserve is necessary. Loans that have previously been restructured in a troubled debt restructuring and are no longer impaired based on the terms specified in their restructuring agreement and are now at a rate equal to or greater than a rate the Bank is willing to accept for a loan with comparable risk are transferred out of TDR status. One loan was transferred out of TDR status during the six months ended December 31, 2020. The following is a summary of TDRs as of December 31, 2020: Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer & Development Occupied Occupied Multifamily Occupied Occupied Installment Total Accruing Beginning balance June 30, 2020 $ — $ 195,924 $ — $ — $ — $ $ — $ 195,924 Transfer to other loan category — — — — — — — — Principal payments — (3,791) — — — — — (3,791) Charge-offs — — — — — — — — Sales — — — — — — — — New restructureds — 104,375 — — — — — 104,375 Transfers out of TDR status — (191,294) — — — — (191,294) Transfers to foreclosed properties — — — — — — — — Transfers to nonaccrual — — — — — — — — Transfers out of nonaccrual — — — — — — — — Ending balance $ — $ 105,214 $ — $ — $ — $ — $ — $ 105,214 Nonaccrual Beginning balance $ — $ — $ — $ — $ — $ — $ — $ — Principal payments — — — — — — — — Charge-offs — — — — — — — — Sales — — — — — — — — Transfers to foreclosed properties — — — — — — — — Transfers from accrual — — — — — — — — Transfers to accrual — — — — — — — — Ending balance $ — $ — $ — $ — $ — $ — $ — $ — Totals Beginning balance $ — $ 195,924 $ — $ — $ — $ $ — $ 195,924 Transfer to other loan category — — — — — — — — Principal payments — (3,791) — — — — — (3,791) Charge-offs — — — — — — — — Sales — — — — — — — — New restructureds — 104,375 — — — — — 104,375 Transfers out of TDR status — (191,294) — — — — (191,294) Transfers to foreclosed properties — — — — — — — — Transfers to nonaccrual — — — — — — — — Transfers from accrual — — — — — — — — Transfers out of nonaccrual — — — — — — — — Ending balance $ — $ 105,214 $ — $ — $ — $ — $ — $ 105,214 The allowance for loan losses reflected in the accompanying condensed consolidated financial statements represents the allowance available to absorb probable and inherent loan losses in the loan portfolio. An analysis of changes in the allowance is presented in the following tabulation for the three and six months ended December 31, 2020 and 2019 and the year ended June 30, 2020: Three Months Ended December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Development Occupied Occupied Multifamily Occupied Occupied Consumer Unallocated Total Allowance Balance at 9/30/20 $ 10,859 $ 335,391 $ 75,827 $ 350,641 $ 75,184 $ 328,902 $ 89,941 $ 86,739 $ 1,353,484 Charge-offs — — — — — — — — — Recoveries — — — — — — 7 — 7 Provision 389 (16,619) 11,525 48,824 11,266 11,745 (3,096) (14,034) 50,000 Balance at 12/31/20 $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Six Months Ended December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Not Land, Owner Non-Owner Owner- Non-Owner Specifically Development Occupied Occupied Multifamily Occupied Occupied Consumer Allocated Total Allowance Balance at 6/30/20 $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Charge-offs — — — — — — (325) — (325) Recoveries — — — — — — 389 — 389 Provision (2,547) (37,662) 10,132 112,800 (9,261) 27,977 (10,524) (40,915) 50,000 Balance at 12/31/20 $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Allowance Ending balance individually evaluated for impairment $ — $ 61,491 $ — $ — $ 64,430 $ — $ 53,882 $ — $ 179,803 Ending balance collectively evaluated for impairment 11,248 257,281 87,352 399,465 22,020 340,647 32,970 72,705 1,223,688 Ending balance $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Loans Ending balance individually evaluated for impairment $ — $ 892,538 $ 79,265 $ — $ 182,853 $ — $ 126,137 $ — $ 1,280,793 Ending balance collectively evaluated for impairment 3,460,986 84,354,539 22,513,372 88,769,856 6,291,455 19,679,205 7,703,126 — 232,772,539 Total loans $ 3,460,986 $ 85,247,077 $ 22,592,637 $ 88,769,856 $ 6,474,308 $ 19,679,205 $ 7,829,263 $ — $ 234,053,332 Less allowance $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Total loans, net $ 3,449,738 $ 84,928,305 $ 22,505,285 $ 88,370,391 $ 6,387,858 $ 19,338,558 $ 7,742,411 $ (72,705) $ 232,649,841 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Not Land, Owner Non-Owner Owner- Non-Owner Specifically Development Occupied Occupied Multifamily Occupied Occupied Consumer Allocated Total Allowance Balance at 6/30/19 $ 4,319 $ 67,593 $ 26,630 $ 109,870 $ 61,193 $ 738,366 $ 70,058 $ 215,936 $ 1,293,965 Charge-offs — (57,572) — — — — (45,157) — (102,729) Recoveries — 5,155 — — — — 22,036 — 27,191 Provision 9,476 341,258 50,590 176,795 34,518 (425,696) 50,375 (102,316) 135,000 Balance at 6/30/20 $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Allowance Ending balance individually evaluated for impairment $ — $ 64,780 $ — $ — $ 79,351 $ — $ 61,792 $ — $ 205,923 Ending balance collectively evaluated for impairment 13,795 291,654 77,220 286,665 16,360 312,670 35,520 113,620 1,147,504 Ending balance $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Loans Ending balance individually evaluated for impairment $ — $ 965,734 $ 57,574 $ — $ 189,249 $ — $ 128,617 $ — $ 1,341,174 Ending balance collectively evaluated for impairment 4,598,382 99,540,577 21,156,106 76,444,156 6,543,934 20,237,534 8,792,042 — 237,312,731 Total loans $ 4,598,382 $ 100,506,311 $ 21,213,680 $ 76,444,156 $ 6,733,183 $ 20,237,534 $ 8,920,659 $ — $ 238,653,905 Less allowance $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Total loans, net $ 4,584,587 $ 100,149,877 $ 21,136,460 $ 76,157,491 $ 6,637,472 $ 19,924,864 $ 8,823,347 $ (113,620) $ 237,300,478 Three Months Ended December 31, 2019 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Development Occupied Occupied Multifamily Occupied Occupied Consumer Unallocated Total Allowance Balance at 9/30/19 $ 5,670 $ 56,804 $ 26,027 $ 111,112 $ 91,077 $ 773,186 $ 72,508 $ 150,290 $ 1,286,674 Charge-offs — (18,846) — — — — (32,012) — (50,858) Recoveries — 4,820 — — — — 21,836 — 26,656 Provision 5,193 57,197 (3,859) 5,788 (10,987) 36,536 23,682 (113,550) — Balance at 12/31/19 $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Six Months Ended December 31, 2019 Construction, 1-4 Family 1-4 Family Commercial Commercial Not Land, Owner Non-Owner Owner- Non-Owner Specifically Development Occupied Occupied Multifamily Occupied Occupied Consumer Allocated Total Allowance Balance at 6/30/19 $ 4,319 $ 67,593 $ 26,630 $ 109,870 $ 61,193 $ 738,366 $ 70,058 $ 215,936 $ 1,293,965 Charge-offs — (18,846) — — — — (39,838) — (58,684) Recoveries — 5,155 — — — — 22,036 — 27,191 Provision 6,544 46,073 (4,462) 7,030 18,897 71,356 33,758 (179,196) — Balance at 12/31/19 $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Allowance Ending balance individually evaluated for impairment $ — $ 43,470 $ — $ — $ 76,086 $ — $ 66,848 $ — $ 186,404 Ending balance collectively evaluated for impairment 10,863 56,505 22,168 116,900 4,004 809,722 19,166 36,740 1,076,068 Ending balance $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Loans Ending balance individually evaluated for impairment $ — $ 813,101 $ — $ — $ 191,014 $ — $ 108,728 $ — $ 1,112,843 Ending balance collectively evaluated for impairment 7,242,065 110,793,849 20,152,740 77,933,467 8,007,747 19,265,342 9,214,372 — 252,609,582 Total loans $ 7,242,065 $ 111,606,950 $ 20,152,740 $ 77,933,467 $ 8,198,761 $ 19,265,342 $ 9,323,100 $ — $ 253,722,425 Less allowance $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Total loans, net $ 7,231,202 $ 111,506,975 $ 20,130,572 $ 77,816,567 $ 8,118,671 $ 18,455,620 $ 9,237,086 $ (36,740) $ 252,459,953 |
Loan Servicing
Loan Servicing | 6 Months Ended |
Dec. 31, 2020 | |
Loan Servicing | |
Loan Servicing | NOTE 8 – Loan Servicing The unpaid principal balance of loans serviced for others, which is not included in the condensed consolidated financial statements, was $7,585,313 and $2,696,078 at December 31, 2020 and June 30, 2020, respectively. The Bank did not maintain any custodial balances at December 31, 2020 and June 30, 2020, respectively, in connection with the foregoing loan servicing. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2020 | |
Borrowings | |
Borrowings | NOTE 9 – Borrowings Borrowings consist of the following: December 31, 2020 June 30, 2020 FHLB fixed rate advance (0.61%, matured 9/11/20) $ — $ 5,000,000 FHLB fixed rate advance (0.00%, matures 5/3/21) 4,000,000 4,000,000 $ 4,000,000 $ 9,000,000 The Bank has a master contract agreement with the FHLB, which provides for borrowing up to a maximum $118,717,298 at December 31, 2020. The FHLB provides both fixed and floating rate advances. Within the master contract agreement, the Bank also has an open line of credit with the FHLB with a variable interest rate. There were n o outstanding advances on the open line of credit as of December 31, 2020 and June 30, 2020. Additionally, the Bank had $4,000,000 and $9,000,000 outstanding in term advances at December 31, 2020 and June 30, 2020, respectively. The advances are collateralized by a security agreement pledging a majority of the Bank’s one- to four-family and multifamily mortgages. The Bank has an agreement with U.S. Bank, which provides for borrowing up to the maximum of $5,000,000. There were no amounts outstanding as of December 31, 2020 or June 30, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | NOTE 10 – Income Taxes The Company recognized no income tax expense for each of the three and six months ended December 31, 2020 and 2019. At the end of each interim period, management estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year to date period, and adjusted for any items that are considered discrete in accordance with ASC 740‑270. The primary difference between the statutory tax rate and the effective rate for the period ending December 31, 2020 would be the anticipated change in valuation allowance. Management records a valuation allowance for deferred tax assets that are more likely than not to not be realized. |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 6 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Pension Plan | |
Defined Benefit Pension Plan | NOTE 11 – Defined Benefit Pension Plan The Plan covers substantially all employees hired prior to March 31, 2012. The benefits are based on years of service and the employee’s average monthly pay received during the five highest consecutive calendar years in the last 10 years of employment under the Plan. Management contributes annually the amounts necessary to provide for defined benefit payments upon retirement or death as determined by the Plan’s actuary. The defined benefit pension plan was frozen effective March 31, 2012 for all employees. No additional benefits are being accrued for active participants after this date, and no new participants will be entered into the Plan. In accordance with accounting guidance for defined benefit plans, the Bank recognizes the funded status of defined benefit pension and other post-retirement plans as a net asset or liability on its consolidated balance sheet. The Bank recognized pension expense of $26,250 and $52,500 for the three and six months ended December 31, 2020, respectively, and pension income of $21,174 and $42,348 for the three and six months ended December 31, 2019, respectively. The Bank had a valuation of the Plan completed at fiscal year ending June 30, 2020, which included estimated amortizations from accumulated other comprehensive loss into net periodic pension cost during the next fiscal year of $408,5 47 . The change in pension obligation reported in the condensed consolidated balance sheet, condensed consolidated statements of comprehensive income (loss), and in the condensed consolidated statements of changes in stockholders’ equity as of December 31, 2020 reflect this estimation. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 12 – Commitments and Contingencies In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the consolidated financial statements. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, financial guarantees, and standby letters of credit. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the consolidated balance sheets. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and issuing letters of credit as they do for on-balance-sheet instruments. A summary of the contract or notional amount of the Company's exposure to off-balance-sheet risk is as follows: December 31, 2020 June 30, 2020 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit to borrowers $ 19,975,193 $ 15,853,034 Sold loan commitments 83,255,414 105,961,238 Credit card commitments 539,803 567,763 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. Credit card commitments are unsecured. As of December 31, 2020 and June 30, 2020, the Company does not engage in the use of interest rate swaps, futures or option contracts. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 6 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | NOTE 13 – Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. On November 13, 2019, the federal regulators finalized and adopted a regulatory capital rule establishing a new community bank leverage ratio (“CBLR”), which became effective on January 1, 2020. The intent of the CBLR is to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions as directed under the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under the CBLR, if a qualifying depository institution elects to use such measure, such institutions will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e. leverage ratio) exceeds a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. In April 2020, under the CARES Act, the 9% leverage ratio threshold was temporarily reduced to 8% in response to the COVID-19 pandemic. The threshold will increase to 8.5% in 2021 and return to 9% in 2022. The Bank elected to begin using the CBLR for the first quarter of 2020 and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR includes the following: · Total assets of less than $10 billion, · Total trading assets plus liabilities of 5% or less of consolidated assets, · Total off-balance sheet exposures of 25% or less of consolidated assets, · Cannot be an advanced approaches banking organization, and · Leverage ratio greater than 9%, or temporarily prescribed threshold established in response to COVID-19. As of December 31, 2020 and June 30, 2020, the Bank was categorized as well capitalized. Listed in the table below is a comparison of the Bank’s actual capital amounts with the minimum requirements for well capitalized banks, as defined above. For Capital Adequacy To be Considered Actual Purposes Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 (unaudited) CBLR Framework Tier 1 capital (to average assets) $ 31,404,154 10.48 % * * $ 23,969,441 8.00 % As of June 30, 2020 Total capital (to risk weighted assets) $ 28,928,180 15.02 % $ 15,408,708 8.00 % $ 19,260,885 10.00 % Tier 1 capital (to risk weighted assets) 27,574,753 14.32 11,556,531 6.00 15,408,708 8.00 Common Equity Tier 1 (to risk weighted assets) 27,574,753 14.32 8,667,398 4.50 12,519,575 6.50 Tier 1 capital (to average assets) 27,574,753 9.30 11,857,514 4.00 14,821,893 5.00 CBLR Framework Tier 1 capital (to average assets) 27,574,753 9.30 * * 23,715,029 8.00 * A Wisconsin state-chartered savings bank is required by state law to maintain minimum net worth in an amount equal to at least 6.0% of its total assets. At December 31, 2020 and June 30, 2020, the Bank’s net worth was $26,305,524 with general loan loss reserve of $1,223,688 and $22,472,487 with general loan loss reserve of $1,147,504, totaling 9.1% and 7.7% of total assets, respectively, which meets the state of Wisconsin’s minimum net worth requirements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of TEB Bancorp, Inc. and its wholly-owned subsidiaries were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto of the Company as of and for the year ended June 30, 2020. The interim condensed consolidated financial statements of the Company as of December 31, 2020, and for the three and six months ended December 31, 2020 and 2019 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. Such adjustments are the only adjustments contained in the interim financial statements. The results of operations for the three and six months ended December 31, 2020, are not necessarily indicative of the results to be achieved for the year ending June 30, 2021 or any other period. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements as of and for the periods ending December 31, 2020 and 2019 and June 30, 2020 and 2019 include the accounts and operations of TEB Bancorp, Inc. and its wholly-owned subsidiaries, the Bank, Equitable Investment Corp., and Equity Credit Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Emerging Growth Company Status | Emerging Growth Company Status Under the Jumpstart Our Business Startups Act (the "JOBS Act"), a company with total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an "emerging growth company". The Company qualifies as an emerging growth company and believes that it will continue to qualify as an emerging growth company. An emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. The Company has elected to comply with new or amended accounting pronouncements in the same manner as a private company. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards. |
Use of Estimates | Use of Estimates In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management of the Company is required 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 condensed consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the pension actuarial assumptions, and the valuation of deferred tax assets. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including all interest and dividend income generated from financial instruments. Certain noninterest income items, including gain on sales of loans, gain on sales of securities, and other noninterest income have been evaluated and determined to not fall within the scope of ASC 606. Elements of noninterest income that fall within the scope of ASC 606 are as follows: Service charges and other fees The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements and determined that the agreements can be terminated at any time by either the Company or the account holder. Transaction fees, such as wires and overdraft charges, are settled the day the performance obligation is satisfied. The Company’s monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the new revenue standards. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition for service charges and other fees. Interchange fees Customers use a Bank-issued debit card to purchase goods and services, and the Company earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Company records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. These funds are included in “Service fees on deposits” on the Condensed Consolidated Statements of Operations. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Recognition of revenue under ASC 606 did not materially change the timing or magnitude of revenue recognition for interchange fees. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and balances due from banks and federal funds sold, all of which mature within 90 days. The Company maintains amounts due from banks, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. |
Interest Bearing Deposits in Banks | Interest Bearing Deposits in Banks Interest bearing deposits in banks mature within one year and are carried at cost, which approximates fair value. |
Securities | Securities Available for sale securities are stated at fair value and unrealized holding gains and losses on available for sale securities are reported as accumulated other comprehensive income (loss), net of applicable deferred income tax and adjusted for any applicable valuation allowance, a separate component of equity. Available for sale securities are written down to market value through operations if an impairment of value is deemed other than temporary due to credit issues. Gains or losses on the sale of securities, if any, are determined on the specific identification method. Securities transactions are recorded on the trade date. |
Loans | Loans Loans are carried at the unpaid principal balance adjusted for deferred loan fees and costs and charge-offs. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amounts amortized as an adjustment of the related loan’s yield over the contractual life of the related loan. Interest on loans is accrued on the unpaid principal balances as earned. Loans are normally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal payments. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on a loan, it is management’s practice to place such loan on nonaccrual status immediately, rather than delaying such action until the loan becomes 90 days past due. When a loan is placed on nonaccrual, previously accrued and uncollected interest on such loan is reversed, amortization of related loan fees is suspended, and income is recorded only to the extent that loan payments are subsequently received in cash and a determination has been made that the principal balance of the loan is collectible. If collectability of the principal is in doubt, payments received are applied to loan principal. A troubled debt restructuring (“TDR”) includes a loan modification where a borrower is experiencing financial difficulty and a concession is granted to that borrower that would not otherwise have been considered except for the borrower’s financial difficulties. All TDRs are classified as impaired loans. TDRs may be on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. Loans deemed nonaccrual may return to accrued status based on performance in accordance with terms of the restructuring, generally six months. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payment when due. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to operations. All sales are made without recourse. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses (“ALL”) is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALL. The ALL consists of specific reserves on certain impaired loans from analyses developed through specific credit allocations for individual loans. The specific reserve relates to all loans for which the ALL is estimated on a loan by loan basis using either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. The general reserve is based on the Company’s historical loss experience along with consideration of certain qualitative factors such as (i) changes in the nature, volume, and terms of loans, (ii) changes in lending personnel, (iii) changes in the quality of the loan review function, (iv) changes in nature and volume of past-due, nonaccrual, and/or classified loans, (v) changes in concentration of credit risk, (vi) changes in economic and industry conditions, (vii) changes in legal and regulatory requirements, (viii) unemployment and inflation statistics, and (ix) changes in underlying collateral values. There are many factors affecting the ALL; some are quantitative while others require qualitative judgment. The ALL reflects management’s best estimate of the probable and inherent losses on loans. The adequacy of the ALL is reviewed and approved by the Company’s Board of Directors. Allocations of the ALL may be made for specific loans, but the entire ALL is available for any loan that, in management’s judgment, should be charged-off. As an integral part of their examination process, various regulatory agencies review the ALL as well. Such agencies may require that changes in the ALL be recognized when such regulatory credit evaluations differ from those of management based on information available to the regulators at the time of their examinations. |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization expense is provided on the straight-line method over the estimated useful life of the asset for financial reporting purposes, and the straight-line and accelerated methods for income tax purposes. Amortization of leasehold improvements is provided on the straight-line method over the lesser of the term of the respective lease or the estimated economic life of the improvements. |
Other Real Estate Owned, Net | Other Real Estate Owned, Net Other real estate owned is initially recorded at the fair market value of the real estate acquired less the estimated costs to sell the real estate at the date title is received, establishing a new cost basis, with any write-down charged to the allowance for loan losses. Costs relating to development or improvement of property are capitalized up to the fair value of the property. Valuations are periodically performed by management and independent third parties and a charge to expense is taken if the carrying value of a property exceeds its fair value less estimated costs to sell. Income and expense related to the operations of other real estate owned is recorded net in “Cost of operations of other real estate owned” as a component of non-interest expenses on the condensed consolidated statements of operations. Gains and losses on the sale of other real estate owned are recorded in “Gain (loss) on sale of other real estate owned” as a component of non-interest income in the condensed consolidated statements of operations. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of FHLB stock based on the Bank’s level of borrowings from the FHLB and other factors, and may invest in additional amounts of FHLB stock. The Bank’s investment in FHLB of Chicago stock meets the minimum amount required by current regulations and is carried at cost, which approximates fair value. FHLB stock is evaluated quarterly for impairment. Based on management’s evaluation, no impairment has been recorded on these securities. Both cash and stock dividends are reported as income. |
Defined Benefit Pension Plan | Defined Benefit Pension Plan The Bank has a defined benefit pension plan (the “Plan”) covering substantially all of its employees hired prior to December 31, 2012. The benefits are based on years of service and the employee’s average monthly pay received during the five highest consecutive calendar years in the last 10 years of employment under the Plan. Management contributes annually the amounts necessary to provide for defined benefit payments upon retirement or death as determined by the Plan’s actuary. The Plan was frozen effective December 31, 2012 for all employees. No additional benefits are being accrued for active participants after that date and no new participants will be entered into the Plan. The Bank records annual amounts relating to the Plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Bank reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends where appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income (loss) and amortized to net periodic pension cost over future periods. The Bank believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions. |
Comprehensive Income (Loss) | Comprehensive Income U.S. GAAP generally requires that recognized revenue, expenses, gains, and losses be included in earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section and changes in the funded status of the pension plan, such items, along with net income are components of comprehensive income. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes the tax effects from an uncertain tax position in the consolidated financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized, upon ultimate settlement with the relevant tax authority. The Company recognizes interest and penalties accrued or released related to uncertain tax positions in current income tax expense or benefit. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Advertising | Advertising Advertising costs are accrued and expensed in the period incurred. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. |
Significant Events | Significant Events In December 2019, a coronavirus (COVID-19) was reported in China and in March 2020 was declared a national emergency in the United States. The COVID-19 pandemic has caused significant economic dislocation as many state and local governments have ordered non-essential businesses to close and residents to shelter in place at home. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and how the economy may be reopened. In order to protect the health of employees and customers, the Company has temporarily limited lobby hours and transitioned as many employees to remote work as possible. Nonetheless, the Company has not incurred any significant disruptions to its business activities. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020 and provided over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). Although we were not already a qualified SBA lender, we became eligible to originate PPP loans by completing the required SBA documentation. In October 2020, the SBA approved an extension of the deferment period without modifications on the PPP loans originated. The Company agreed to extend the deferment period for six months from the first payment date. An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs”; or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%; (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. The Company receives a processing fee from the SBA ranging from 1% to 5% depending on the size of the loan, which is offset by a third-party servicing agent fee ranging from 0.25% to 1.0%. As of December 31, 2020, the Company originated 1 7 PPP loans totaling $1.1 million and generated approximately $44,000 from the processing fees. All PPP loan originations occurred before the end of the December 31, 2020 reporting period. As of December 31, 2020, 14 PPP loans totaling $741,000 had been forgiven. To work with customers impacted by COVID-19, the Company is offering short-term loan modificatiosn (i.e., three months or less with the potential to extend up to six months, if necessary) on a case by case basis to borrowers who were current in their payments at the inception of the loan modification program. The Company additionally offers, to borrowers that qualify, loan deferrals under Section 4013 of the CARES Act. Loans less than 30 days past due as of December 31, 2019 are considered current for COVID-19 modifications and therefore qualify for a loan deferral. A financial institution can then suspend the requirements under U.S. GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a TDR, and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either January 1, 2021 or the 60th day after the end of the COVID-19 national emergency. Similarly, the Financial Accounting Standards Board (“FASB”) has confirmed that short-term modifications made on a good faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. Lastly, prior to the enactment of the CARES Act, the banking regulatory agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act. On December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2020 (the “CAA Act”), which both funds the federal government until September 30, 2021 and broadly addresses additional COVID-19 responses and relief. Amoung the additional relief measures included are certain extensions to elements of the CARES Act, including extension of temporary relief from TDRs established under Section 4013 of the CARES Act to the earlier of a) January 1, 2022, or b) the date that is 60 days after the date on which the national COVID-19 emergency terminates. As of December 31, 2020, the Company had received requests to modify 93 loans aggregating $28.0 million, which excludes any loans that had been paid off subsequent to modification. Of these modifications, $27.7 million, or 98.9%, were performing in accordance with the accounting treatment under Section 4013 of the CARES Act and therefore did not qualify as TDRs. As of December 31, 2020, 84 of these modifications totaling $26.2 million have resumed monthly loan payments and nine modifications totaling $1.8 million remain in a deferred status. Three loans totaling $297,000 were modified and did not qualify for the favorable accounting treatment under Section 4013 of the CARES Act and therefore each loan was reported as a TDR; however, one of the loans was transferred out of TDR status after receiving six consequtive monthly payments after the end of the deferral period. Management has evaluated the loans and determined that based on the liquidation value of the collateral, no specific reserve is necessary. Details with respect to loan modification requests are as follows: As of December 31, 2020, the Company had received requests to modify 93 loans aggregating $28.0 million, which excludes any loans that had been paid off subsequent to modification. Of these modifications, $27.7 million, or 98.9%, were performing in accordance with the accounting treatment under Section 4013 of the CARES Act and therefore did not qualify as TDRs. As of December 31, 2020, 84 of these modifications totaling $26.2 million have resumed monthly loan payments and nine modifications totaling $1.8 million remain in a deferred status. Three loans totaling $297,000 were modified and did not qualify for the favorable accounting treatment under Section 4013 of the CARES Act and therefore each loan was reported as a TDR; however, one of the loans was transferred out of TDR status after receiving six consequtive monthly payments after the end of the deferral period. Management has evaluated the loans and determined that based on the liquidation value of the collateral, no specific reserve is necessary. Details with respect to loan modification requests are as follows: As of December 31, 2020 Payments Resumed Payments Deferred Loan Classification Number of Loans Balance Number of Loans Balance Construction, land, development 2 $ 115,294 0 $ — 1-4 family owner occupied 47 7,041,514 7 522,773 1-4 family non-owner occupied 15 2,239,902 1 115,088 Multifamily 12 10,566,128 0 — Commercial owner occupied 2 311,979 1 1,157,876 Commercial non-owner occupied 3 5,899,095 0 — Consumer and installment loans 3 42,697 0 — Total loan modification requests 84 $ 26,216,609 9 $ 1,795,737 The Company’s allowance for loan losses was $1.4 million at December 31, 2020 and June 30, 2020. At December 31, 2020 and June 30, 2020, the allowance for loan losses represented 0.60% and 0.57% of total loans, respectively. During 2020, the Company adjusted the economic risk factor methodology to incorporate the current economic implications and the higher unemployment rate from the COVID-19 pandemic. In determining its allowance for loan loss level at December 31, 2020, the Company considered the health and composition of its loan portfolio during the COVID-19 pandemic. At December 31, 2020, approximately 98.8% of the Company’s loan portfolio is collateralized by real estate. Approximately 1.6% of the Company’s loan portfolio is to borrowers in the more particularly hard-hit industries (including the restaurant and food service industries, retail industry, and hospitality and tourism industries) and the Company has no international exposure. |
Subsequent Events | Subsequent Events Management has reviewed the Company's operations for potential disclosure or financial statement impacts related to events occurring after December 31, 2020, other than those discussed above in “Significant Events”, but prior to the release of these financial statements. Based on the results of this review, no subsequent event disclosure or financial statement impacts to these financial statements are required as of February 12, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The FASB issues Accounting Standards Updates (“ASU”s) to the FASB Accounting Standards Codification (“ASC”). This section provides a summary description of recent ASUs that had or that management expects may have an impact on the consolidated financial statements issued upon adoption. The Company is classified as an emerging growth company and has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Effective dates reflect this election. Recently Adopted Accounting Pronouncements In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 amends guidance on the amortization period of premiums on certain purchased callable debt securities. The amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. ASU 2017-08 is effective for annual periods beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted ASU 2017-08 effective July 1, 2020 and the adoption did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, including the removal, modification to, and addition of certain disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. Although this ASU impacts the Company’s fair value disclosures, there is no additional impact to the financial statements. Recently Issued, But Not Yet Effective Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Topic 842 was subsequently amended by ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842)”. The amendments in this update increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term of 12 months or less, the amendments permit lessees to make an accounting policy election by class of underlying assets not to recognize lease assets and lease liabilities. For finance leases, the amendments in this update require a lessee to (1) recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payments, on the balance sheet; (2) recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of operations; (3) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the least liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, the amendments in this update require a lessee to (1) recognized a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, on the balance sheet; (2) recognized a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; (3) classify all cash payments within operating activities in the statement of cash flows. On October 16, 2019, the FASB approved the proposal to delay the effective date for this standard for private and all other entities. Due to the Company’s extended transition period election, the amendments are effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company’s leases are operating leases and ASU 2016-02 will require the Company to add them to its consolidated balance sheet. The Company’s operating leases are predominately related to real estate. Management is currently evaluating other impacts this guidance will have on the consolidated results of operations, financial presentation, and cash flows of the Company. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments.” Topic 326 was subsequently amended by ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses; ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses”; and ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief.” This ASU replaces the current incurred loss impairment methodology with a methodology that reflected expected credit losses measured at amortized cost and certain other instruments, including loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures. On October 16, 2019, the FASB approved the proposal to delay the effective date for this standard for private and all other entities. Due to the Company’s extended transition period election, the update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Management is currently evaluating the potential impact on its consolidated results of operations, financial position, and cash flows; however, due to the significant differences in the revised guidance from existing U.S. GAAP, the implementation of this guidance may result in material changes in the Company’s accounting for credit losses on financial instruments. In August 2018, the FASB issued ASU No. 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 applies to all employers that sponsor defined benefit pension or other postretirement plans. The amendments require that an employer disclose an explanation of the reasons for significant gains and losses related to changes in the net benefit obligation for the period. Multiple disclosure requirements are also removed with this amendment, including: (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; (2) the amount and timing of plan assets expected to be returned to the employer; (3) related party disclosures about significant transactions between the employer or related parties and the plan; and (4) the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs. Additional disclosure requirements contained within Subtopic 715-20 are also clarified. The amendments are effective for fiscal years ending after December 15, 2021. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the consolidated results of operations, financial position, or cash flows of the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of loan modification request | As of December 31, 2020, the Company had received requests to modify 93 loans aggregating $28.0 million, which excludes any loans that had been paid off subsequent to modification. Of these modifications, $27.7 million, or 98.9%, were performing in accordance with the accounting treatment under Section 4013 of the CARES Act and therefore did not qualify as TDRs. As of December 31, 2020, 84 of these modifications totaling $26.2 million have resumed monthly loan payments and nine modifications totaling $1.8 million remain in a deferred status. Three loans totaling $297,000 were modified and did not qualify for the favorable accounting treatment under Section 4013 of the CARES Act and therefore each loan was reported as a TDR; however, one of the loans was transferred out of TDR status after receiving six consequtive monthly payments after the end of the deferral period. Management has evaluated the loans and determined that based on the liquidation value of the collateral, no specific reserve is necessary. Details with respect to loan modification requests are as follows: As of December 31, 2020 Payments Resumed Payments Deferred Loan Classification Number of Loans Balance Number of Loans Balance Construction, land, development 2 $ 115,294 0 $ — 1-4 family owner occupied 47 7,041,514 7 522,773 1-4 family non-owner occupied 15 2,239,902 1 115,088 Multifamily 12 10,566,128 0 — Commercial owner occupied 2 311,979 1 1,157,876 Commercial non-owner occupied 3 5,899,095 0 — Consumer and installment loans 3 42,697 0 — Total loan modification requests 84 $ 26,216,609 9 $ 1,795,737 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share | |
Schedule of Earnings per share | Three Months Ended Three Months Ended Six Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income $ 1,957,537 361,883 $ 3,736,385 929,779 Basic potential common shares Weighted average shares outstanding 2,624,343 2,624,343 2,624,343 2,624,343 Basic weighted average shares outstanding 2,624,343 2,624,343 2,624,343 2,624,343 Diluted potential common shares — — — — Diluted weighted average shares outstanding 2,624,343 2,624,343 2,624,343 2,624,343 Basic earnings per share $ 0.75 0.14 $ 1.42 0.35 Diluted earnings per share $ 0.75 0.14 $ 1.42 0.35 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments | |
Schedule of fair value assets measured on recurring basis | Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total Securities classified as available for sale: Obligations of states and political subdivisions $ — $ 20,572,232 $ — $ 20,572,232 Mortgage-backed securities — 1,360,250 — 1,360,250 Certificates of deposit — 843,436 — 843,436 Total $ — $ 22,775,918 $ — $ 22,775,918 Fair Value as of June 30, 2020 Level 1 Level 2 Level 3 Total Securities classified as available for sale: Obligations of states and political subdivisions $ — $ 18,005,082 $ — $ 18,005,082 Mortgage-backed securities — 1,443,643 — 1,443,643 Certificates of deposit — 848,870 — 848,870 Total $ — $ 20,297,595 $ — $ 20,297,595 |
Schedule of fair value assets measured on nonrecurring basis | Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total Impaired loans with a valuation allowance, net $ — $ — $ 191,923 $ 191,923 Other real estate owned, net — — 386,155 386,155 Total $ — $ — $ 578,078 $ 578,078 Fair Value as of June 30, 2020 Level 1 Level 2 Level 3 Total Impaired loans with a valuation allowance, net $ — $ — $ 248,930 $ 248,930 Other real estate owned, net — — 2,288,255 2,288,255 Total $ — $ — $ 2,537,185 $ 2,537,185 |
Summary of quantitative information about nonrecurring Level 3 fair value measurements | As of December 31, 2020 Fair Value Valuation Technique Unobservable Input(s) Range/Weighted Average Impaired loans with a valuation allowance, net $ 191,923 Market price or appraised value Management discount on appraised values 5% - 15% Other real estate owned, net $ 386,155 Market price or appraised value Management discount on appraised values 5% - 15% As of June 30, 2020 Fair Value Valuation Technique Unobservable Input(s) Range/Weighted Average Impaired loans with a valuation allowance, net $ 248,930 Market price or appraised value Management discount on appraised values 5% - 15% Other real estate owned, net $ 2,288,255 Market price or appraised value Management discount on appraised values 5% - 15% |
Available for Sale Securities (
Available for Sale Securities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Available for Sale Securities | |
Schedule of amortized costs and fair values of available for sale securities | December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 19,958,955 $ 632,907 $ 19,630 $ 20,572,232 Mortgage-backed securities 1,300,987 59,263 — 1,360,250 Certificates of deposit 800,000 43,436 — 843,436 $ 22,059,942 $ 735,606 $ 19,630 $ 22,775,918 June 30, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Obligations of states and political subdivisions $ 17,563,698 $ 457,440 $ 16,056 $ 18,005,082 Mortgage-backed securities 1,371,753 71,890 — 1,443,643 Certificates of deposit 800,000 48,870 — 848,870 $ 19,735,451 $ 578,200 $ 16,056 $ 20,297,595 |
Schedule of available for sale securities portfolio | December 31, 2020 Continuous Unrealized Continuous Unrealized Losses Existing for Less Losses Existing for 12 Months Than 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Obligations of states and political subdivisions $ 918,725 $ 11,275 $ 298,170 $ 8,355 $ 1,216,895 $ 19,630 June 30, 2020 Continuous Unrealized Continuous Unrealized Losses Existing for Less Losses Existing for 12 Months Than 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Obligations of states and political subdivisions $ — $ — $ 693,687 $ 16,056 $ 693,687 $ 16,056 |
Schedule of available for sale securities maturity categories | Amortized Cost Fair Value Due in one year or less $ 866,680 $ 868,877 Due after one year through 5 years 9,718,935 9,973,308 Due after 5 years through 10 years 5,753,340 6,015,696 Due after 10 years 4,420,000 4,557,787 Subtotal 20,758,955 21,415,668 Mortgage backed securities Due after one year through 5 years — — Due after 5 years through 10 years 1,300,987 1,360,250 Total $ 22,059,942 $ 22,775,918 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | |
Schedule of loan classifications | December 31, 2020 June 30, 2020 Construction, land, development $ 3,460,986 $ 4,598,382 1-4 family owner occupied 85,247,077 100,506,311 1-4 family non-owner occupied 22,592,637 21,213,680 Multifamily 88,769,856 76,444,156 Commercial owner occupied 6,474,308 6,733,183 Commercial non-owner occupied 19,679,205 20,237,534 Consumer and installment loans 7,829,263 8,920,659 Total loans 234,053,332 238,653,905 Less: Allowance for loan losses (1,403,491) (1,353,427) Loans, net $ 232,649,841 $ 237,300,478 |
Schedule of non-performing loans | December 31, 2020 June 30, 2020 Nonaccrual Loans $ 1,280,793 $ 1,341,174 Total non-performing loans $ 1,280,793 $ 1,341,174 Restructured loans, accruing $ — $ — Total impaired loans $ 1,280,793 $ 1,341,174 |
Schedule of impaired loans | December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total With related allowance recorded Recorded investment $ — $ 93,110 $ — $ — $ 182,853 $ — $ 95,763 $ 371,726 Unpaid principal balance — 93,110 — — 182,853 — 95,763 371,726 Related allowance — 61,491 — — 64,430 — 53,882 179,803 With no related allowance recorded Recorded investment $ — $ 799,428 $ 79,265 $ — $ — $ — $ 30,374 $ 909,067 Unpaid principal balance — 799,428 79,265 — — — 30,374 909,067 Related allowance — — — — — — — — Total Recorded investment $ — $ 892,538 $ 79,265 $ — $ 182,853 $ — $ 126,137 $ 1,280,793 Unpaid principal balance — 892,538 79,265 — 182,853 — 126,137 1,280,793 Related allowance — 61,491 — — 64,430 — 53,882 179,803 Three Months Ended December 31, 2020 Average recorded balance $ — $ 911,182 $ 19,816 $ — $ 180,387 $ — $ 130,024 $ 1,241,409 — Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 5,021 — — 2,207 — — 7,228 Total interest on impaired loans $ — $ 5,021 $ — $ — $ 2,207 $ — $ — $ 7,228 Six Months Ended December 31, 2020 Average recorded balance $ — $ 934,319 $ 19,548 $ — $ 181,222 $ — $ 129,846 $ 1,264,935 — Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 8,409 — — 13,659 — — 22,068 Total interest on impaired loans $ — $ 8,409 $ — $ — $ 13,659 $ — $ — $ 22,068 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total With related allowance recorded Recorded investment $ — $ 161,931 $ — $ — $ 189,249 $ — $ 103,673 $ 454,853 Unpaid principal balance — 161,931 — — 189,249 — 103,673 454,853 Related allowance — 64,780 — — 79,351 — 61,792 205,923 With no related allowance recorded Recorded investment $ — $ 803,803 $ 57,574 $ — $ — $ — $ 24,944 $ 886,321 Unpaid principal balance — 803,803 57,574 — — — 24,944 886,321 Related allowance — — — — — — — — Total Recorded investment $ — $ 965,734 $ 57,574 $ — $ 189,249 $ — $ 128,617 $ 1,341,174 Unpaid principal balance — 965,734 57,574 — 189,249 — 128,617 1,341,174 Related allowance — 64,780 — — 79,351 — 61,792 205,923 Average recorded balance $ — $ 1,020,175 $ 14,948 $ — $ 191,166 $ — $ 132,521 $ 1,358,810 Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 16,071 298 — 4,382 — 712 21,463 Total interest on impaired loans $ — $ 16,071 $ 298 $ — $ 4,382 $ — $ 712 $ 21,463 December 31, 2019 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total With related allowance recorded Recorded investment $ — $ 97,774 $ — $ — $ 191,014 $ — $ 108,728 $ 397,516 Unpaid principal balance — 97,774 — — 191,014 — 108,728 397,516 Related allowance — 43,470 — — 76,086 — 66,848 186,404 With no related allowance recorded Recorded investment $ — $ 715,327 $ — $ — $ — $ — $ — $ 715,327 Unpaid principal balance — 715,327 — — — — — 715,327 Related allowance — — — — — — — — Total Recorded investment $ — $ 813,101 $ — $ — $ 191,014 $ — $ 108,728 $ 1,112,843 Unpaid principal balance — 813,101 — — 191,014 — 108,728 1,112,843 Related allowance — 43,470 — — 76,086 — 66,848 186,404 Three Months Ended December 31, 2019 Average recorded balance $ — $ 875,987 $ — $ — $ 191,651 $ — $ 122,114 $ 1,189,752 Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 4,012 — — 1,079 — — 5,091 Total interest on impaired loans $ — $ 4,012 $ — $ — $ 1,079 $ — $ — $ 5,091 Six Months Ended December 31, 2019 Average recorded balance $ — $ 1,070,070 $ 2,829 $ — $ 192,294 $ — $ 123,339 $ 1,388,532 Interest income recognized while impaired $ — $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis while impaired — 8,803 298 — 4,382 — — 13,483 Total interest in impaired loans $ — $ 8,803 $ 298 $ — $ 4,382 $ — $ — $ 13,483 |
Schedule of loans by risk rating | December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Occupied Occupied Multifamily Occupied Occupied Installment Total 1-4 $ 3,460,986 $ 84,249,325 $ 22,513,372 $ 88,769,856 $ 5,133,579 $ 11,903,756 $ 7,703,126 $ 223,734,000 5 — 105,214 — — 1,157,876 7,775,449 — 9,038,539 6 — 456,331 79,265 — 182,853 — 28,024 746,473 7 — 436,207 — — — — 98,113 534,320 Total $ 3,460,986 $ 85,247,077 $ 22,592,637 $ 88,769,856 $ 6,474,308 $ 19,679,205 $ 7,829,263 $ 234,053,332 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total 1-4 $ 4,598,382 $ 99,344,653 $ 21,156,106 $ 76,444,156 $ 6,543,934 $ 12,313,923 $ 8,792,042 $ 229,193,196 5 — 195,924 — — — 7,923,611 — 8,119,535 6 — 851,208 57,574 — 189,249 — 52,448 1,150,479 7 — 114,526 — — — — 76,169 190,695 Total $ 4,598,382 $ 100,506,311 $ 21,213,680 $ 76,444,156 $ 6,733,183 $ 20,237,534 $ 8,920,659 $ 238,653,905 |
Schedule of aged analysis of past due loans | December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total 30‑59 days, accruing $ — $ 743,432 $ — $ — $ — $ — $ 40,792 $ 784,224 60‑89 days, accruing — 41,797 — — — — — 41,797 90 days & over or nonaccrual — 892,538 79,265 — 182,853 — 126,137 1,280,793 Total $ — $ 1,677,767 $ 79,265 $ — $ 182,853 $ — $ 166,929 $ 2,106,814 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer and Development Occupied Occupied Multifamily Occupied Occupied Installment Total 30‑59 days, accruing $ 69,174 $ 1,274,585 $ — $ — $ — $ — $ 63,765 $ 1,407,524 60‑89 days, accruing — 114,338 — — — — — 114,338 90 days & over or nonaccrual — 965,734 57,574 — 189,249 — 128,617 1,341,174 Total $ 69,174 $ 2,354,657 $ 57,574 $ — $ 189,249 $ — $ 192,382 $ 2,863,036 |
Schedule of TDRs | Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Consumer & Development Occupied Occupied Multifamily Occupied Occupied Installment Total Accruing Beginning balance June 30, 2020 $ — $ 195,924 $ — $ — $ — $ $ — $ 195,924 Transfer to other loan category — — — — — — — — Principal payments — (3,791) — — — — — (3,791) Charge-offs — — — — — — — — Sales — — — — — — — — New restructureds — 104,375 — — — — — 104,375 Transfers out of TDR status — (191,294) — — — — (191,294) Transfers to foreclosed properties — — — — — — — — Transfers to nonaccrual — — — — — — — — Transfers out of nonaccrual — — — — — — — — Ending balance $ — $ 105,214 $ — $ — $ — $ — $ — $ 105,214 Nonaccrual Beginning balance $ — $ — $ — $ — $ — $ — $ — $ — Principal payments — — — — — — — — Charge-offs — — — — — — — — Sales — — — — — — — — Transfers to foreclosed properties — — — — — — — — Transfers from accrual — — — — — — — — Transfers to accrual — — — — — — — — Ending balance $ — $ — $ — $ — $ — $ — $ — $ — Totals Beginning balance $ — $ 195,924 $ — $ — $ — $ $ — $ 195,924 Transfer to other loan category — — — — — — — — Principal payments — (3,791) — — — — — (3,791) Charge-offs — — — — — — — — Sales — — — — — — — — New restructureds — 104,375 — — — — — 104,375 Transfers out of TDR status — (191,294) — — — — (191,294) Transfers to foreclosed properties — — — — — — — — Transfers to nonaccrual — — — — — — — — Transfers from accrual — — — — — — — — Transfers out of nonaccrual — — — — — — — — Ending balance $ — $ 105,214 $ — $ — $ — $ — $ — $ 105,214 |
Schedule of allowance for loan losses and recorded investment | Three Months Ended December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Development Occupied Occupied Multifamily Occupied Occupied Consumer Unallocated Total Allowance Balance at 9/30/20 $ 10,859 $ 335,391 $ 75,827 $ 350,641 $ 75,184 $ 328,902 $ 89,941 $ 86,739 $ 1,353,484 Charge-offs — — — — — — — — — Recoveries — — — — — — 7 — 7 Provision 389 (16,619) 11,525 48,824 11,266 11,745 (3,096) (14,034) 50,000 Balance at 12/31/20 $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Six Months Ended December 31, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Not Land, Owner Non-Owner Owner- Non-Owner Specifically Development Occupied Occupied Multifamily Occupied Occupied Consumer Allocated Total Allowance Balance at 6/30/20 $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Charge-offs — — — — — — (325) — (325) Recoveries — — — — — — 389 — 389 Provision (2,547) (37,662) 10,132 112,800 (9,261) 27,977 (10,524) (40,915) 50,000 Balance at 12/31/20 $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Allowance Ending balance individually evaluated for impairment $ — $ 61,491 $ — $ — $ 64,430 $ — $ 53,882 $ — $ 179,803 Ending balance collectively evaluated for impairment 11,248 257,281 87,352 399,465 22,020 340,647 32,970 72,705 1,223,688 Ending balance $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Loans Ending balance individually evaluated for impairment $ — $ 892,538 $ 79,265 $ — $ 182,853 $ — $ 126,137 $ — $ 1,280,793 Ending balance collectively evaluated for impairment 3,460,986 84,354,539 22,513,372 88,769,856 6,291,455 19,679,205 7,703,126 — 232,772,539 Total loans $ 3,460,986 $ 85,247,077 $ 22,592,637 $ 88,769,856 $ 6,474,308 $ 19,679,205 $ 7,829,263 $ — $ 234,053,332 Less allowance $ 11,248 $ 318,772 $ 87,352 $ 399,465 $ 86,450 $ 340,647 $ 86,852 $ 72,705 $ 1,403,491 Total loans, net $ 3,449,738 $ 84,928,305 $ 22,505,285 $ 88,370,391 $ 6,387,858 $ 19,338,558 $ 7,742,411 $ (72,705) $ 232,649,841 June 30, 2020 Construction, 1-4 Family 1-4 Family Commercial Commercial Not Land, Owner Non-Owner Owner- Non-Owner Specifically Development Occupied Occupied Multifamily Occupied Occupied Consumer Allocated Total Allowance Balance at 6/30/19 $ 4,319 $ 67,593 $ 26,630 $ 109,870 $ 61,193 $ 738,366 $ 70,058 $ 215,936 $ 1,293,965 Charge-offs — (57,572) — — — — (45,157) — (102,729) Recoveries — 5,155 — — — — 22,036 — 27,191 Provision 9,476 341,258 50,590 176,795 34,518 (425,696) 50,375 (102,316) 135,000 Balance at 6/30/20 $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Allowance Ending balance individually evaluated for impairment $ — $ 64,780 $ — $ — $ 79,351 $ — $ 61,792 $ — $ 205,923 Ending balance collectively evaluated for impairment 13,795 291,654 77,220 286,665 16,360 312,670 35,520 113,620 1,147,504 Ending balance $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Loans Ending balance individually evaluated for impairment $ — $ 965,734 $ 57,574 $ — $ 189,249 $ — $ 128,617 $ — $ 1,341,174 Ending balance collectively evaluated for impairment 4,598,382 99,540,577 21,156,106 76,444,156 6,543,934 20,237,534 8,792,042 — 237,312,731 Total loans $ 4,598,382 $ 100,506,311 $ 21,213,680 $ 76,444,156 $ 6,733,183 $ 20,237,534 $ 8,920,659 $ — $ 238,653,905 Less allowance $ 13,795 $ 356,434 $ 77,220 $ 286,665 $ 95,711 $ 312,670 $ 97,312 $ 113,620 $ 1,353,427 Total loans, net $ 4,584,587 $ 100,149,877 $ 21,136,460 $ 76,157,491 $ 6,637,472 $ 19,924,864 $ 8,823,347 $ (113,620) $ 237,300,478 Three Months Ended December 31, 2019 Construction, 1-4 Family 1-4 Family Commercial Commercial Land, Owner Non-Owner Owner Non-Owner Development Occupied Occupied Multifamily Occupied Occupied Consumer Unallocated Total Allowance Balance at 9/30/19 $ 5,670 $ 56,804 $ 26,027 $ 111,112 $ 91,077 $ 773,186 $ 72,508 $ 150,290 $ 1,286,674 Charge-offs — (18,846) — — — — (32,012) — (50,858) Recoveries — 4,820 — — — — 21,836 — 26,656 Provision 5,193 57,197 (3,859) 5,788 (10,987) 36,536 23,682 (113,550) — Balance at 12/31/19 $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Six Months Ended December 31, 2019 Construction, 1-4 Family 1-4 Family Commercial Commercial Not Land, Owner Non-Owner Owner- Non-Owner Specifically Development Occupied Occupied Multifamily Occupied Occupied Consumer Allocated Total Allowance Balance at 6/30/19 $ 4,319 $ 67,593 $ 26,630 $ 109,870 $ 61,193 $ 738,366 $ 70,058 $ 215,936 $ 1,293,965 Charge-offs — (18,846) — — — — (39,838) — (58,684) Recoveries — 5,155 — — — — 22,036 — 27,191 Provision 6,544 46,073 (4,462) 7,030 18,897 71,356 33,758 (179,196) — Balance at 12/31/19 $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Allowance Ending balance individually evaluated for impairment $ — $ 43,470 $ — $ — $ 76,086 $ — $ 66,848 $ — $ 186,404 Ending balance collectively evaluated for impairment 10,863 56,505 22,168 116,900 4,004 809,722 19,166 36,740 1,076,068 Ending balance $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Loans Ending balance individually evaluated for impairment $ — $ 813,101 $ — $ — $ 191,014 $ — $ 108,728 $ — $ 1,112,843 Ending balance collectively evaluated for impairment 7,242,065 110,793,849 20,152,740 77,933,467 8,007,747 19,265,342 9,214,372 — 252,609,582 Total loans $ 7,242,065 $ 111,606,950 $ 20,152,740 $ 77,933,467 $ 8,198,761 $ 19,265,342 $ 9,323,100 $ — $ 253,722,425 Less allowance $ 10,863 $ 99,975 $ 22,168 $ 116,900 $ 80,090 $ 809,722 $ 86,014 $ 36,740 $ 1,262,472 Total loans, net $ 7,231,202 $ 111,506,975 $ 20,130,572 $ 77,816,567 $ 8,118,671 $ 18,455,620 $ 9,237,086 $ (36,740) $ 252,459,953 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Borrowings | |
Schedule for summary of borrowings | December 31, 2020 June 30, 2020 FHLB fixed rate advance (0.61%, matured 9/11/20) $ — $ 5,000,000 FHLB fixed rate advance (0.00%, matures 5/3/21) 4,000,000 4,000,000 $ 4,000,000 $ 9,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of notional amount of exposure to off-balance-sheet risk | December 31, 2020 June 30, 2020 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit to borrowers $ 19,975,193 $ 15,853,034 Sold loan commitments 83,255,414 105,961,238 Credit card commitments 539,803 567,763 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Requirements | |
Schedule of comparison of Bank's actual capital amounts with the minimum requirements for adequately capitalized banks | For Capital Adequacy To be Considered Actual Purposes Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 (unaudited) CBLR Framework Tier 1 capital (to average assets) $ 31,404,154 10.48 % * * $ 23,969,441 8.00 % As of June 30, 2020 Total capital (to risk weighted assets) $ 28,928,180 15.02 % $ 15,408,708 8.00 % $ 19,260,885 10.00 % Tier 1 capital (to risk weighted assets) 27,574,753 14.32 11,556,531 6.00 15,408,708 8.00 Common Equity Tier 1 (to risk weighted assets) 27,574,753 14.32 8,667,398 4.50 12,519,575 6.50 Tier 1 capital (to average assets) 27,574,753 9.30 11,857,514 4.00 14,821,893 5.00 CBLR Framework Tier 1 capital (to average assets) 27,574,753 9.30 * * 23,715,029 8.00 * |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Apr. 30, 2019 | Dec. 31, 2020 |
Impairment of Federal Home Loan Bank stock | $ 0 | |
Consecutive period of employee's average month pay received to determine benefits under the Plan | 5 years | |
Number of years of employment to determine pension benefit | 10 years | |
TEB MHC | ||
Shares of common stock sold | 1,309,547 | |
Price per share | $ 10 | |
Percentage of outstanding shares issued | 49.90% | |
Gross proceeds from issuance | $ 13,100,000 | |
Net proceeds from issuance of common stock | 11,400,000 | |
Payments Of Initial Capitalization | $ 100,000 | |
Number of shares held by mutual holding company | 1,314,796 | |
Percentage of outstanding shares held by mutual holding company | 50.10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Significant events (Details) | Mar. 27, 2020 | Dec. 31, 2020USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Financing Receivable, Impaired [Line Items] | |||||||
Number of loans modification request received | loan | 93 | ||||||
Aggregate value of requested loans to be modified | $ 28,000,000 | ||||||
Modified loans requested and performing under Cares Act | $ 27,700,000 | ||||||
Percentage of performing loans | 98.90% | ||||||
Number of loans resumed | loan | 84 | ||||||
Modifications resumed | $ 26,216,609 | ||||||
Number of loans in deferred status | 9 | ||||||
Modifications deferred | $ 1,795,737 | ||||||
TDR granted during period, including loans transferred out of TDR status | loan | 3 | ||||||
TDR investment modified during period, including loans transferred out of TDR status | $ 297,000 | ||||||
TDR granted and subsequently transferred out of TDR status during the period | loan | 1 | ||||||
Allowance for loan losses | $ 1,403,491 | $ 1,353,484 | $ 1,353,427 | $ 1,262,472 | $ 1,286,674 | $ 1,293,965 | |
Percentage of allowance for loan losses on total loans | 0.60% | 0.57% | |||||
Percentage of loan portfolio collateralized by real estate | 98.80% | ||||||
Percentage of portfolio to borrowers in particularly hard-hit industries | 1.60% | ||||||
PPP | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Percentage of loan proceeds used for payroll costs | 75.00% | ||||||
Percentage of loan proceeds used for other qualifying expenses | 25.00% | ||||||
Number of loan originated | loan | 17 | ||||||
Value of loan | $ 1,100,000 | ||||||
Processing fee income | $ 44,000 | ||||||
Number of loans forgiven | loan | 14 | ||||||
Amount of loan forgiveness | $ 741,000 | ||||||
PPP | Minimum | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Processing fee income (as a percent) | 1.00% | ||||||
Third party service fee payable (as a percent) | 0.25% | ||||||
PPP | Maximum | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Processing fee income (as a percent) | 5.00% | ||||||
Third party service fee payable (as a percent) | 1.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Modified Loan Request (Details) | Dec. 31, 2020USD ($)loan |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 84 |
Modifications resumed | $ | $ 26,216,609 |
Number of loans in deferred status | 9 |
Modifications deferred | $ | $ 1,795,737 |
Construction, Land, Development | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 2 |
Modifications resumed | $ | $ 115,294 |
Number of loans in deferred status | 0 |
1-4 Family Owner Occupied | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 47 |
Modifications resumed | $ | $ 7,041,514 |
Number of loans in deferred status | 7 |
Modifications deferred | $ | $ 522,773 |
1-4 Family Non-Owner Occupied | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 15 |
Modifications resumed | $ | $ 2,239,902 |
Number of loans in deferred status | 1 |
Modifications deferred | $ | $ 115,088 |
Multifamily | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 12 |
Modifications resumed | $ | $ 10,566,128 |
Number of loans in deferred status | 0 |
Commercial Owner Occupied | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 2 |
Modifications resumed | $ | $ 311,979 |
Number of loans in deferred status | 1 |
Modifications deferred | $ | $ 1,157,876 |
Commercial Non-Owner Occupied | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 3 |
Modifications resumed | $ | $ 5,899,095 |
Number of loans in deferred status | 0 |
Consumer and Installment Loan | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans resumed | 3 |
Modifications resumed | $ | $ 42,697 |
Number of loans in deferred status | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share | ||||||
Net income | $ 1,957,537 | $ 1,778,848 | $ 361,883 | $ 567,896 | $ 3,736,385 | $ 929,779 |
Basic potential common shares | ||||||
Weighted average shares outstanding | 2,624,343 | 2,624,343 | 2,624,343 | 2,624,343 | ||
Basic weighted average shares outstanding | 2,624,343 | 2,624,343 | 2,624,343 | 2,624,343 | ||
Diluted potential common shares | 0 | 0 | 0 | 0 | ||
Diluted weighted average shares outstanding | 2,624,343 | 2,624,343 | 2,624,343 | 2,624,343 | ||
Basic earnings per share | $ 0.75 | $ 0.14 | $ 1.42 | $ 0.35 | ||
Diluted earnings per share | $ 0.75 | $ 0.14 | $ 1.42 | $ 0.35 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Level 3 - Non-recurring - Management discount on appraised values - Market price or appraised value | Dec. 31, 2020 | Jun. 30, 2020 |
Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | 0.05 | 0.05 |
Other real estate owned, net | 0.05 | 0.05 |
Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | 0.15 | 0.15 |
Other real estate owned, net | 0.15 | 0.15 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Recurring (Details) - Recurring - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 22,775,918 | $ 20,297,595 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 22,775,918 | 20,297,595 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 20,572,232 | 18,005,082 |
Obligations of states and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Obligations of states and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 20,572,232 | 18,005,082 |
Obligations of states and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,360,250 | 1,443,643 |
Mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,360,250 | 1,443,643 |
Mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 843,436 | 848,870 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 843,436 | 848,870 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Non-recurring (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, net | $ 386,155 | $ 2,288,255 | |
Carrying value of impaired loans | 371,726 | 454,853 | $ 397,516 |
Impaired loans - related allowance | 179,803 | 205,923 | $ 186,404 |
Non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans with a valuation allowance, net | 191,923 | 248,930 | |
Other real estate owned, net | 386,155 | 2,288,255 | |
Total | 578,078 | 2,537,185 | |
Non-recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans with a valuation allowance, net | 0 | 0 | |
Other real estate owned, net | 0 | 0 | |
Total | 0 | 0 | |
Non-recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans with a valuation allowance, net | 0 | 0 | |
Other real estate owned, net | 0 | 0 | |
Total | 0 | 0 | |
Non-recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans with a valuation allowance, net | 191,923 | 248,930 | |
Other real estate owned, net | 386,155 | 2,288,255 | |
Total | $ 578,078 | $ 2,537,185 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Nonrecurring Level 3 Fair value measurements (Details) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) |
Fair Value Assets and Liabilities measured on Recurring and Nonrecurring basis valuation techniques | ||
Other real estate owned, net | $ 386,155 | $ 2,288,255 |
Non-recurring | ||
Fair Value Assets and Liabilities measured on Recurring and Nonrecurring basis valuation techniques | ||
Impaired loans with a valuation allowance, net | 191,923 | 248,930 |
Other real estate owned, net | 386,155 | 2,288,255 |
Level 3 | Non-recurring | ||
Fair Value Assets and Liabilities measured on Recurring and Nonrecurring basis valuation techniques | ||
Impaired loans with a valuation allowance, net | 191,923 | 248,930 |
Other real estate owned, net | 386,155 | 2,288,255 |
Market price or appraised value | Management discount on appraised values | Level 3 | Non-recurring | ||
Fair Value Assets and Liabilities measured on Recurring and Nonrecurring basis valuation techniques | ||
Impaired loans with a valuation allowance, net | 191,923 | 248,930 |
Other real estate owned, net | $ 386,155 | $ 2,288,255 |
Market price or appraised value | Management discount on appraised values | Minimum | Level 3 | Non-recurring | ||
Fair Value Assets and Liabilities measured on Recurring and Nonrecurring basis valuation techniques | ||
Impaired loans with a valuation allowance, net, measurement input | 0.05 | 0.05 |
Other real estate owned, net, measurement input | 0.05 | 0.05 |
Market price or appraised value | Management discount on appraised values | Maximum | Level 3 | Non-recurring | ||
Fair Value Assets and Liabilities measured on Recurring and Nonrecurring basis valuation techniques | ||
Impaired loans with a valuation allowance, net, measurement input | 0.15 | 0.15 |
Other real estate owned, net, measurement input | 0.15 | 0.15 |
Cash and Due From Banks (Detail
Cash and Due From Banks (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | |
Cash and Due From Banks | |||
Percentage of reserve bank reserves | 0.00% | ||
Requirements for cash and reserve balances with Federal Reserve Bank deposits | $ 0 | $ 0 |
Available for Sale Securities -
Available for Sale Securities - Amortized costs and fair values (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 22,059,942 | $ 19,735,451 |
Gross Unrealized Gains | 735,606 | 578,200 |
Gross Unrealized Losses | 19,630 | 16,056 |
Fair Value | 22,775,918 | 20,297,595 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,958,955 | 17,563,698 |
Gross Unrealized Gains | 632,907 | 457,440 |
Gross Unrealized Losses | 19,630 | 16,056 |
Fair Value | 20,572,232 | 18,005,082 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,300,987 | 1,371,753 |
Gross Unrealized Gains | 59,263 | 71,890 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,360,250 | 1,443,643 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 800,000 | 800,000 |
Gross Unrealized Gains | 43,436 | 48,870 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 843,436 | $ 848,870 |
Available for Sale Securities_2
Available for Sale Securities - Unrealized losses (Details) - Obligations of states and political subdivisions | Dec. 31, 2020USD ($)security | Jun. 30, 2020USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Losses Existing for Less Than 12 Months, Fair Value | $ 918,725 | |
Continuous Unrealized Losses Existing for Less Than 12 Months, Unrealized Losses | 11,275 | |
Continuous Unrealized Losses Existing for 12 Months or Greater, Fair Value | 298,170 | $ 693,687 |
Continuous Unrealized Losses Existing for 12 Months or Greater, Unrealized Losses | 8,355 | 16,056 |
Total, Fair Value | 1,216,895 | 693,687 |
Total, Unrealized Losses | $ 19,630 | $ 16,056 |
Number of securities with unrealized loss position | security | 4 | 2 |
Available for Sale Securities_3
Available for Sale Securities - Contractual maturities (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Amortized Cost | ||
Due in one year or less | $ 866,680 | |
Due after one year through 5 years | 9,718,935 | |
Due after 5 years through 10 years | 5,753,340 | |
Due after 10 years | 4,420,000 | |
Subtotal | 20,758,955 | |
Total | 22,059,942 | $ 19,735,451 |
Fair Value | ||
Due in one year or less | 868,877 | |
Due after one year through 5 years | 9,973,308 | |
Due after 5 years through 10 years | 6,015,696 | |
Due after 10 years | 4,557,787 | |
Subtotal | 21,415,668 | |
Totals | 22,775,918 | 20,297,595 |
Mortgage-backed securities | ||
Amortized Cost | ||
Due after one year through 5 years | 0 | |
Due after 5 years through 10 years | 1,300,987 | |
Total | 1,300,987 | 1,371,753 |
Fair Value | ||
Due after one year through 5 years | 0 | |
Due after 5 years through 10 years | 1,360,250 | |
Totals | $ 1,360,250 | $ 1,443,643 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Major classifications (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 234,053,332 | $ 238,653,905 | $ 253,722,425 | |||
Less: allowance for loan losses | (1,403,491) | (1,353,427) | $ (1,353,484) | (1,262,472) | $ (1,286,674) | $ (1,293,965) |
Total | 232,649,841 | 237,300,478 | 252,459,953 | |||
Deferred loan origination fees | 162,000 | 184,000 | ||||
Construction, Land, Development | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 3,460,986 | 4,598,382 | 7,242,065 | |||
Less: allowance for loan losses | (11,248) | (13,795) | (10,859) | (10,863) | (5,670) | (4,319) |
Total | 3,449,738 | 4,584,587 | 7,231,202 | |||
1-4 Family Owner Occupied | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 85,247,077 | 100,506,311 | 111,606,950 | |||
Less: allowance for loan losses | (318,772) | (356,434) | (335,391) | (99,975) | (56,804) | (67,593) |
Total | 84,928,305 | 100,149,877 | 111,506,975 | |||
1-4 Family Non-Owner Occupied | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 22,592,637 | 21,213,680 | 20,152,740 | |||
Less: allowance for loan losses | (87,352) | (77,220) | (75,827) | (22,168) | (26,027) | (26,630) |
Total | 22,505,285 | 21,136,460 | 20,130,572 | |||
Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 88,769,856 | 76,444,156 | 77,933,467 | |||
Less: allowance for loan losses | (399,465) | (286,665) | (350,641) | (116,900) | (111,112) | (109,870) |
Total | 88,370,391 | 76,157,491 | 77,816,567 | |||
Commercial Owner Occupied | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 6,474,308 | 6,733,183 | 8,198,761 | |||
Less: allowance for loan losses | (86,450) | (95,711) | (75,184) | (80,090) | (91,077) | (61,193) |
Total | 6,387,858 | 6,637,472 | 8,118,671 | |||
Commercial Non-Owner Occupied | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 19,679,205 | 20,237,534 | 19,265,342 | |||
Less: allowance for loan losses | (340,647) | (312,670) | (328,902) | (809,722) | (773,186) | (738,366) |
Total | 19,338,558 | 19,924,864 | 18,455,620 | |||
Consumer and Installment Loan | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 7,829,263 | 8,920,659 | 9,323,100 | |||
Less: allowance for loan losses | (86,852) | (97,312) | $ (89,941) | (86,014) | $ (72,508) | $ (70,058) |
Total | $ 7,742,411 | $ 8,823,347 | $ 9,237,086 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Non-performing loans (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans and Allowance for Loan Losses | |||
Nonaccrual Loans | $ 1,280,793 | $ 1,341,174 | |
Total non-performing loans | 1,280,793 | 1,341,174 | $ 1,112,843 |
Restructured loans, accruing | 0 | 0 | |
Total Impaired Loans | $ 1,280,793 | $ 1,341,174 | $ 1,112,843 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Impaired loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
With related allowance recorded | |||||
Recorded investment | $ 371,726 | $ 397,516 | $ 371,726 | $ 397,516 | $ 454,853 |
Unpaid principal balance | 371,726 | 397,516 | 371,726 | 397,516 | 454,853 |
Related allowance | 179,803 | 186,404 | 179,803 | 186,404 | 205,923 |
With no related allowance recorded | |||||
Recorded investment | 909,067 | 715,327 | 909,067 | 715,327 | 886,321 |
Unpaid principal balance | 909,067 | 715,327 | 909,067 | 715,327 | 886,321 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 1,280,793 | 1,112,843 | 1,280,793 | 1,112,843 | 1,341,174 |
Unpaid principal balance | 1,280,793 | 1,112,843 | 1,280,793 | 1,112,843 | 1,341,174 |
Related allowance | 179,803 | 186,404 | 179,803 | 186,404 | 205,923 |
Average recorded balance | 1,241,409 | 1,189,752 | 1,264,935 | 1,388,532 | 1,358,810 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 7,228 | 5,091 | 22,068 | 13,483 | 21,463 |
Total interest on impaired loans | 7,228 | 5,091 | 22,068 | 13,483 | 21,463 |
Construction, Land, Development | |||||
With related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Average recorded balance | 0 | 0 | 0 | 0 | 0 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 0 | 0 | 0 | 0 | 0 |
Total interest on impaired loans | 0 | 0 | 0 | 0 | 0 |
1-4 Family Owner Occupied | |||||
With related allowance recorded | |||||
Recorded investment | 93,110 | 97,774 | 93,110 | 97,774 | 161,931 |
Unpaid principal balance | 93,110 | 97,774 | 93,110 | 97,774 | 161,931 |
Related allowance | 61,491 | 43,470 | 61,491 | 43,470 | 64,780 |
With no related allowance recorded | |||||
Recorded investment | 799,428 | 715,327 | 799,428 | 715,327 | 803,803 |
Unpaid principal balance | 799,428 | 715,327 | 799,428 | 715,327 | 803,803 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 892,538 | 813,101 | 892,538 | 813,101 | 965,734 |
Unpaid principal balance | 892,538 | 813,101 | 892,538 | 813,101 | 965,734 |
Related allowance | 61,491 | 43,470 | 61,491 | 43,470 | 64,780 |
Average recorded balance | 911,182 | 875,987 | 934,319 | 1,070,070 | 1,020,175 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 5,021 | 4,012 | 8,409 | 8,803 | 16,071 |
Total interest on impaired loans | 5,021 | 4,012 | 8,409 | 8,803 | 16,071 |
1-4 Family Non-Owner Occupied | |||||
With related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | |||||
Recorded investment | 79,265 | 0 | 79,265 | 0 | 57,574 |
Unpaid principal balance | 79,265 | 0 | 79,265 | 0 | 57,574 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 79,265 | 0 | 79,265 | 0 | 57,574 |
Unpaid principal balance | 79,265 | 0 | 79,265 | 0 | 57,574 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Average recorded balance | 19,816 | 0 | 19,548 | 2,829 | 14,948 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 0 | 0 | 0 | 298 | 298 |
Total interest on impaired loans | 0 | 0 | 0 | 298 | 298 |
Multifamily | |||||
With related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Average recorded balance | 0 | 0 | 0 | 0 | 0 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 0 | 0 | 0 | 0 | 0 |
Total interest on impaired loans | 0 | 0 | 0 | 0 | 0 |
Commercial Owner Occupied | |||||
With related allowance recorded | |||||
Recorded investment | 182,853 | 191,014 | 182,853 | 191,014 | 189,249 |
Unpaid principal balance | 182,853 | 191,014 | 182,853 | 191,014 | 189,249 |
Related allowance | 64,430 | 76,086 | 64,430 | 76,086 | 79,351 |
With no related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 182,853 | 191,014 | 182,853 | 191,014 | 189,249 |
Unpaid principal balance | 182,853 | 191,014 | 182,853 | 191,014 | 189,249 |
Related allowance | 64,430 | 76,086 | 64,430 | 76,086 | 79,351 |
Average recorded balance | 180,387 | 191,651 | 181,222 | 192,294 | 191,166 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 2,207 | 1,079 | 13,659 | 4,382 | 4,382 |
Total interest on impaired loans | 2,207 | 1,079 | 13,659 | 4,382 | 4,382 |
Commercial Non-Owner Occupied | |||||
With related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 0 | 0 | 0 | 0 | 0 |
Unpaid principal balance | 0 | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Average recorded balance | 0 | 0 | 0 | 0 | 0 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 0 | 0 | 0 | 0 | 0 |
Total interest on impaired loans | 0 | 0 | 0 | 0 | 0 |
Consumer and Installment Loan | |||||
With related allowance recorded | |||||
Recorded investment | 95,763 | 108,728 | 95,763 | 108,728 | 103,673 |
Unpaid principal balance | 95,763 | 108,728 | 95,763 | 108,728 | 103,673 |
Related allowance | 53,882 | 66,848 | 53,882 | 66,848 | 61,792 |
With no related allowance recorded | |||||
Recorded investment | 30,374 | 0 | 30,374 | 0 | 24,944 |
Unpaid principal balance | 30,374 | 0 | 30,374 | 0 | 24,944 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Total | |||||
Recorded investment | 126,137 | 108,728 | 126,137 | 108,728 | 128,617 |
Unpaid principal balance | 126,137 | 108,728 | 126,137 | 108,728 | 128,617 |
Related allowance | 53,882 | 66,848 | 53,882 | 66,848 | 61,792 |
Average recorded balance | 130,024 | 122,114 | 129,846 | 123,339 | 132,521 |
Interest income recognized while impaired | 0 | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis while impaired | 0 | 0 | 0 | 0 | 712 |
Total interest on impaired loans | $ 0 | $ 0 | $ 0 | $ 0 | $ 712 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Risk rating (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 234,053,332 | $ 238,653,905 | $ 253,722,425 |
Construction, Land, Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,460,986 | 4,598,382 | 7,242,065 |
1-4 Family Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 85,247,077 | 100,506,311 | 111,606,950 |
1-4 Family Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 22,592,637 | 21,213,680 | 20,152,740 |
Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 88,769,856 | 76,444,156 | 77,933,467 |
Commercial Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,474,308 | 6,733,183 | 8,198,761 |
Commercial Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 19,679,205 | 20,237,534 | 19,265,342 |
Consumer and Installment Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7,829,263 | 8,920,659 | $ 9,323,100 |
1-4 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 223,734,000 | 229,193,196 | |
1-4 | Construction, Land, Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,460,986 | 4,598,382 | |
1-4 | 1-4 Family Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 84,249,325 | 99,344,653 | |
1-4 | 1-4 Family Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 22,513,372 | 21,156,106 | |
1-4 | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 88,769,856 | 76,444,156 | |
1-4 | Commercial Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,133,579 | 6,543,934 | |
1-4 | Commercial Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 11,903,756 | 12,313,923 | |
1-4 | Consumer and Installment Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7,703,126 | 8,792,042 | |
5 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 9,038,539 | 8,119,535 | |
5 | Construction, Land, Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
5 | 1-4 Family Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 105,214 | 195,924 | |
5 | 1-4 Family Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
5 | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
5 | Commercial Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,157,876 | 0 | |
5 | Commercial Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7,775,449 | 7,923,611 | |
5 | Consumer and Installment Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
6 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 746,473 | 1,150,479 | |
6 | Construction, Land, Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
6 | 1-4 Family Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 456,331 | 851,208 | |
6 | 1-4 Family Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 79,265 | 57,574 | |
6 | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
6 | Commercial Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 182,853 | 189,249 | |
6 | Commercial Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
6 | Consumer and Installment Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 28,024 | 52,448 | |
7 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 534,320 | 190,695 | |
7 | Construction, Land, Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
7 | 1-4 Family Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 436,207 | 114,526 | |
7 | 1-4 Family Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
7 | Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
7 | Commercial Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
7 | Commercial Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
7 | Consumer and Installment Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 98,113 | $ 76,169 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Past due loans (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | $ 2,106,814 | $ 2,863,036 |
30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 784,224 | 1,407,524 |
60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 41,797 | 114,338 |
90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 1,280,793 | 1,341,174 |
Construction, Land, Development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 69,174 |
Construction, Land, Development | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 69,174 |
Construction, Land, Development | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Construction, Land, Development | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
1-4 Family Owner Occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 1,677,767 | 2,354,657 |
1-4 Family Owner Occupied | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 743,432 | 1,274,585 |
1-4 Family Owner Occupied | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 41,797 | 114,338 |
1-4 Family Owner Occupied | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 892,538 | 965,734 |
1-4 Family Non-Owner Occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 79,265 | 57,574 |
1-4 Family Non-Owner Occupied | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
1-4 Family Non-Owner Occupied | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
1-4 Family Non-Owner Occupied | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 79,265 | 57,574 |
Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Multifamily | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Multifamily | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Multifamily | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Commercial Owner Occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 182,853 | 189,249 |
Commercial Owner Occupied | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Commercial Owner Occupied | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Commercial Owner Occupied | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 182,853 | 189,249 |
Commercial Non-Owner Occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Commercial Non-Owner Occupied | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Commercial Non-Owner Occupied | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Commercial Non-Owner Occupied | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | 0 |
Consumer and Installment Loan | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 166,929 | 192,382 |
Consumer and Installment Loan | 30-59 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 40,792 | 63,765 |
Consumer and Installment Loan | 60-89 days, accruing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | 0 | |
Consumer and Installment Loan | 90 days & over or nonaccrual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due loans | $ 126,137 | $ 128,617 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Additional information (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020USD ($)loan | Jun. 30, 2020loan | |
Loans and Allowance for Loan Losses | ||
TDR's granted during the period | loan | 2 | 1 |
TDR investment modified during the period | $ | $ 104,000 | |
TDR's defaulted during the period | $ | 0 | |
TDR granted and subsequently transferred out of TDR status during the period | loan | 1 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of TDRs (Details) | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | $ 195,924 |
Principal payments | (3,791) |
New restructureds | 104,375 |
Transfers out of TDR status | (191,294) |
Ending balance | 105,214 |
Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 195,924 |
Principal payments | (3,791) |
New restructureds | 104,375 |
Transfers out of TDR status | (191,294) |
Ending balance | 105,214 |
Construction, Land, Development | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 0 |
Construction, Land, Development | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 0 |
Construction, Land, Development | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | 0 |
1-4 Family Owner Occupied | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 195,924 |
Transfer to other than category | 0 |
Principal payments | (3,791) |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 104,375 |
Transfers out of TDR status | (191,294) |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 105,214 |
1-4 Family Owner Occupied | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 195,924 |
Transfer to other than category | 0 |
Principal payments | (3,791) |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 104,375 |
Transfers out of TDR status | (191,294) |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 105,214 |
1-4 Family Owner Occupied | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | 0 |
1-4 Family Non-Owner Occupied | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 0 |
1-4 Family Non-Owner Occupied | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 0 |
1-4 Family Non-Owner Occupied | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | 0 |
Multifamily | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 0 |
Multifamily | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 0 |
Multifamily | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | 0 |
Commercial Owner Occupied | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 0 |
Commercial Owner Occupied | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 0 |
Commercial Owner Occupied | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | 0 |
Commercial Non-Owner Occupied | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 0 |
Commercial Non-Owner Occupied | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 0 |
Commercial Non-Owner Occupied | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | 0 |
Consumer and Installment Loan | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Transfers from accrual | 0 |
Ending balance | 0 |
Consumer and Installment Loan | Accruing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Transfer to other than category | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
New restructureds | 0 |
Transfers out of TDR status | 0 |
Transfer to foreclosed properties | 0 |
Transfers to nonaccrual | 0 |
Transfers out of nonaccrual | 0 |
Ending balance | 0 |
Consumer and Installment Loan | Nonaccrual | |
Loans and Leases Receivable Disclosure [Line Items] | |
Beginning balance | 0 |
Principal payments | 0 |
Charge-offs | 0 |
Sales | 0 |
Transfer to foreclosed properties | 0 |
Transfers from accrual | 0 |
Transfers to accrual | 0 |
Ending balance | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Changes In Allowance (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | $ 1,353,484 | $ 1,286,674 | $ 1,353,427 | $ 1,293,965 | $ 1,293,965 | |||
Charge-offs | (50,858) | (325) | (58,684) | (102,729) | ||||
Recoveries | 7 | 26,656 | 389 | 27,191 | 27,191 | |||
Provision | 50,000 | 50,000 | 0 | 135,000 | ||||
Balance at Ending | 1,403,491 | 1,262,472 | 1,403,491 | 1,262,472 | 1,353,427 | |||
Allowance | ||||||||
Ending balance individually evaluated for impairment | $ 179,803 | $ 205,923 | $ 186,404 | |||||
Ending balance collectively evaluated for impairment | 1,223,688 | 1,147,504 | 1,076,068 | |||||
Ending balance | 1,403,491 | 1,353,427 | 1,262,472 | |||||
Loans | ||||||||
Ending balance individually evaluated for impairment | 1,280,793 | 1,341,174 | 1,112,843 | |||||
Ending balance collectively evaluated for impairment | 232,772,539 | 237,312,731 | 252,609,582 | |||||
Total loans | 234,053,332 | 238,653,905 | 253,722,425 | |||||
Less allowance | 1,403,491 | 1,262,472 | 1,403,491 | 1,262,472 | 1,353,427 | 1,403,491 | 1,353,427 | 1,262,472 |
Total | 232,649,841 | 237,300,478 | 252,459,953 | |||||
Construction, Land, Development | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 10,859 | 5,670 | 13,795 | 4,319 | 4,319 | |||
Provision | 389 | 5,193 | (2,547) | 6,544 | 9,476 | |||
Balance at Ending | 11,248 | 10,863 | 11,248 | 10,863 | 13,795 | |||
Allowance | ||||||||
Ending balance collectively evaluated for impairment | 11,248 | 13,795 | 10,863 | |||||
Ending balance | 11,248 | 13,795 | 10,863 | |||||
Loans | ||||||||
Ending balance collectively evaluated for impairment | 3,460,986 | 4,598,382 | 7,242,065 | |||||
Total loans | 3,460,986 | 4,598,382 | 7,242,065 | |||||
Less allowance | 11,248 | 10,863 | 11,248 | 10,863 | 13,795 | 11,248 | 13,795 | 10,863 |
Total | 3,449,738 | 4,584,587 | 7,231,202 | |||||
1-4 Family Owner Occupied | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 335,391 | 56,804 | 356,434 | 67,593 | 67,593 | |||
Charge-offs | (18,846) | (18,846) | (57,572) | |||||
Recoveries | 4,820 | 5,155 | 5,155 | |||||
Provision | (16,619) | 57,197 | (37,662) | 46,073 | 341,258 | |||
Balance at Ending | 318,772 | 99,975 | 318,772 | 99,975 | 356,434 | |||
Allowance | ||||||||
Ending balance individually evaluated for impairment | 61,491 | 64,780 | 43,470 | |||||
Ending balance collectively evaluated for impairment | 257,281 | 291,654 | 56,505 | |||||
Ending balance | 318,772 | 356,434 | 99,975 | |||||
Loans | ||||||||
Ending balance individually evaluated for impairment | 892,538 | 965,734 | 813,101 | |||||
Ending balance collectively evaluated for impairment | 84,354,539 | 99,540,577 | 110,793,849 | |||||
Total loans | 85,247,077 | 100,506,311 | 111,606,950 | |||||
Less allowance | 318,772 | 99,975 | 318,772 | 99,975 | 356,434 | 318,772 | 356,434 | 99,975 |
Total | 84,928,305 | 100,149,877 | 111,506,975 | |||||
1-4 Family Non-Owner Occupied | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 75,827 | 26,027 | 77,220 | 26,630 | 26,630 | |||
Provision | 11,525 | (3,859) | 10,132 | (4,462) | 50,590 | |||
Balance at Ending | 87,352 | 22,168 | 87,352 | 22,168 | 77,220 | |||
Allowance | ||||||||
Ending balance collectively evaluated for impairment | 87,352 | 77,220 | 22,168 | |||||
Ending balance | 87,352 | 77,220 | 22,168 | |||||
Loans | ||||||||
Ending balance individually evaluated for impairment | 79,265 | 57,574 | ||||||
Ending balance collectively evaluated for impairment | 22,513,372 | 21,156,106 | 20,152,740 | |||||
Total loans | 22,592,637 | 21,213,680 | 20,152,740 | |||||
Less allowance | 87,352 | 22,168 | 87,352 | 22,168 | 77,220 | 87,352 | 77,220 | 22,168 |
Total | 22,505,285 | 21,136,460 | 20,130,572 | |||||
Multifamily | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 350,641 | 111,112 | 286,665 | 109,870 | 109,870 | |||
Provision | 48,824 | 5,788 | 112,800 | 7,030 | 176,795 | |||
Balance at Ending | 399,465 | 116,900 | 399,465 | 116,900 | 286,665 | |||
Allowance | ||||||||
Ending balance collectively evaluated for impairment | 399,465 | 286,665 | 116,900 | |||||
Ending balance | 399,465 | 286,665 | 116,900 | |||||
Loans | ||||||||
Ending balance collectively evaluated for impairment | 88,769,856 | 76,444,156 | 77,933,467 | |||||
Total loans | 88,769,856 | 76,444,156 | 77,933,467 | |||||
Less allowance | 399,465 | 116,900 | 399,465 | 116,900 | 286,665 | 399,465 | 286,665 | 116,900 |
Total | 88,370,391 | 76,157,491 | 77,816,567 | |||||
Commercial Owner Occupied | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 75,184 | 91,077 | 95,711 | 61,193 | 61,193 | |||
Provision | 11,266 | (10,987) | (9,261) | 18,897 | 34,518 | |||
Balance at Ending | 86,450 | 80,090 | 86,450 | 80,090 | 95,711 | |||
Allowance | ||||||||
Ending balance individually evaluated for impairment | 64,430 | 79,351 | 76,086 | |||||
Ending balance collectively evaluated for impairment | 22,020 | 16,360 | 4,004 | |||||
Ending balance | 86,450 | 95,711 | 80,090 | |||||
Loans | ||||||||
Ending balance individually evaluated for impairment | 182,853 | 189,249 | 191,014 | |||||
Ending balance collectively evaluated for impairment | 6,291,455 | 6,543,934 | 8,007,747 | |||||
Total loans | 6,474,308 | 6,733,183 | 8,198,761 | |||||
Less allowance | 86,450 | 80,090 | 86,450 | 80,090 | 95,711 | 86,450 | 95,711 | 80,090 |
Total | 6,387,858 | 6,637,472 | 8,118,671 | |||||
Commercial Non-Owner Occupied | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 328,902 | 773,186 | 312,670 | 738,366 | 738,366 | |||
Provision | 11,745 | 36,536 | 27,977 | 71,356 | (425,696) | |||
Balance at Ending | 340,647 | 809,722 | 340,647 | 809,722 | 312,670 | |||
Allowance | ||||||||
Ending balance collectively evaluated for impairment | 340,647 | 312,670 | 809,722 | |||||
Ending balance | 340,647 | 312,670 | 809,722 | |||||
Loans | ||||||||
Ending balance collectively evaluated for impairment | 19,679,205 | 20,237,534 | 19,265,342 | |||||
Total loans | 19,679,205 | 20,237,534 | 19,265,342 | |||||
Less allowance | 340,647 | 809,722 | 340,647 | 809,722 | 312,670 | 340,647 | 312,670 | 809,722 |
Total | 19,338,558 | 19,924,864 | 18,455,620 | |||||
Consumer and Installment Loan | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 89,941 | 72,508 | 97,312 | 70,058 | 70,058 | |||
Charge-offs | (32,012) | (325) | (39,838) | (45,157) | ||||
Recoveries | 7 | 21,836 | 389 | 22,036 | 22,036 | |||
Provision | (3,096) | 23,682 | (10,524) | 33,758 | 50,375 | |||
Balance at Ending | 86,852 | 86,014 | 86,852 | 86,014 | 97,312 | |||
Allowance | ||||||||
Ending balance individually evaluated for impairment | 53,882 | 61,792 | 66,848 | |||||
Ending balance collectively evaluated for impairment | 32,970 | 35,520 | 19,166 | |||||
Ending balance | 86,852 | 97,312 | 86,014 | |||||
Loans | ||||||||
Ending balance individually evaluated for impairment | 126,137 | 128,617 | 108,728 | |||||
Ending balance collectively evaluated for impairment | 7,703,126 | 8,792,042 | 9,214,372 | |||||
Total loans | 7,829,263 | 8,920,659 | 9,323,100 | |||||
Less allowance | 86,852 | 86,014 | 86,852 | 86,014 | 97,312 | 86,852 | 97,312 | 86,014 |
Total | 7,742,411 | 8,823,347 | 9,237,086 | |||||
Not Specifically Allocated | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Balance at Beginning | 86,739 | 150,290 | 113,620 | 215,936 | 215,936 | |||
Provision | (14,034) | (113,550) | (40,915) | (179,196) | (102,316) | |||
Balance at Ending | 72,705 | 36,740 | 72,705 | 36,740 | 113,620 | |||
Allowance | ||||||||
Ending balance collectively evaluated for impairment | 72,705 | 113,620 | 36,740 | |||||
Ending balance | 72,705 | 113,620 | 36,740 | |||||
Loans | ||||||||
Less allowance | $ 72,705 | $ 36,740 | $ 72,705 | $ 36,740 | $ 113,620 | 72,705 | 113,620 | 36,740 |
Total | $ (72,705) | $ (113,620) | $ (36,740) |
Loan Servicing (Details)
Loan Servicing (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Loan Servicing | ||
Unpaid principal balance of loans serviced for others | $ 7,585,313 | $ 2,696,078 |
Borrowings - Tabular Informatio
Borrowings - Tabular Information (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank borrowings | $ 4,000,000 | $ 9,000,000 |
FHLB fixed rate advance (0.61%, matures 9/11/20) | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank borrowings | 0 | 5,000,000 |
FHLB fixed rate advance (0.00%, matures 5/3/21) | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank borrowings | $ 4,000,000 | $ 4,000,000 |
Borrowings - Table Narrative (D
Borrowings - Table Narrative (Details) | Dec. 31, 2020 | Jun. 30, 2020 |
FHLB fixed rate advance (0.61%, matures 9/11/20) | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Interest rate | 0.61% | |
FHLB fixed rate advance (0.00%, matures 5/3/21) | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Interest rate | 0.00% | 0.00% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
U.S. Bank | ||
Debt Instrument [Line Items] | ||
Maximum line of credit borrowing in master contract agreement | $ 5,000,000 | $ 5,000,000 |
Line of credit outstanding | 0 | 0 |
Federal Home Loan Bank ("FHLB") | ||
Debt Instrument [Line Items] | ||
Maximum line of credit borrowing in master contract agreement | 118,717,298 | |
Line of credit outstanding | 0 | 0 |
Total outstanding in fixed rate term advances | $ 4,000,000 | $ 9,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Defined Benefit Pension Plan -
Defined Benefit Pension Plan - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Defined Benefit Pension Plan | |||||
Consecutive period of employee's average month pay received to determine benefits under the Plan | 5 years | ||||
Number of years of employment to determine pension benefit | 10 years | ||||
Recognized pension income | $ 26,250 | $ 21,174 | $ 52,500 | $ 42,348 | |
Estimated amortizations from AOCI into net periodic pension cost during the next fiscal year | $ 408,547 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Commitments to extend credit to borrowers | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | $ 19,975,193 | $ 15,853,034 |
Sold loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 83,255,414 | 105,961,238 |
Credit card commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | $ 539,803 | $ 567,763 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) |
Total capital (to risk weighted assets) | ||
Total capital (to risk weighted assets) Actual Amount | $ 28,928,180 | |
Total capital (to risk weighted assets) Actual Ratio | 15.02% | |
Total capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 15,408,708 | |
Total capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 8.00% | |
Total capital (to risk weighted assets) To be Considered Well Capitalized Amount | $ 19,260,885 | |
Total capital (to risk weighted assets) To be Considered Well Capitalized Ratio | 10.00% | |
Tier 1 capital (to risk weighted assets) | ||
Tier 1 capital (to risk weighted assets) Actual Amount | $ 27,574,753 | |
Tier 1 capital (to risk weighted assets) Actual Ratio | 14.32% | |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 11,556,531 | |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 6.00% | |
Tier 1 capital (to risk weighted assets) To be Considered Well Capitalized Amount | $ 15,408,708 | |
Tier 1 capital (to risk weighted assets) To be Considered Well Capitalized Ratio | 8.00% | |
Common Equity Tier 1 (to risk weighted assets) | ||
Common Equity Tier 1 (to risk weighted assets) Actual Amount | $ 27,574,753 | |
Common Equity Tier 1 (to risk weighted assets) Actual Ratio | 14.32% | |
Common Equity Tier 1 (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 8,667,398 | |
Common Equity Tier 1 (to risk weighted assets) For Capital Adequacy Purposes Ratio | 4.50% | |
Common Equity Tier 1 (to risk weighted assets) To be Considered Well Capitalized Amount | $ 12,519,575 | |
Common Equity Tier 1 (to risk weighted assets) To be Considered Well Capitalized Ratio | 6.50% | |
Tier 1 capital (to average assets) | ||
Tier 1 capital (to average assets) Actual Amount | $ 27,574,753 | |
Tier 1 capital (to average assets) Actual Ratio | 9.30% | |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 11,857,514 | |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 4.00% | |
Tier 1 capital (to average assets) To be Considered Well Capitalized Amount | $ 14,821,893 | |
Tier 1 capital (to average assets) To be Considered Well Capitalized Ratio | 5.00% | |
CBLR Framework | ||
Tier 1 capital (to average assets) Actual Amount | $ 31,404,154 | $ 27,574,753 |
Tier 1 capital (to average assets) Actual Ratio | 10.48 | 9.30 |
Tier 1 capital (to average assets) To be Considered Well Capitalized Amount | $ 23,969,441 | $ 23,715,029 |
Tier 1 capital (to average assets) To be Considered Well Capitalized Ratio | 8 | 8 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Regulatory Capital Requirements | |||
Percentage of bank's net worth of total assets | 6.00% | ||
Bank's net worth of total assets | $ 26,305,524 | $ 22,472,487 | |
General loan loss reserve | $ 1,223,688 | $ 1,147,504 | $ 1,076,068 |
Percentage of net worth on assets | 9.10% | 7.70% |