Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 23, 2022 | Jun. 30, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-39188 | ||
Entity Registrant Name | CINCINNATI BANCORP, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 84-2848636 | ||
Entity Address, Address Line One | 6581 Harrison Avenue | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45247 | ||
City Area Code | 513 | ||
Local Phone Number | 574-3025 | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | CNNB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 35,691,202 | ||
Entity Common Stock, Shares Outstanding | 2,928,062 | ||
Entity Central Index Key | 0001787005 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | BKD, LLP | ||
Auditor Firm ID | 686 | ||
Auditor Location | Cincinnati, Ohio |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 2,505,136 | $ 2,951,787 |
Interest-bearing demand deposits in banks | 12,831,650 | 23,558,019 |
Federal funds sold | 6,515,000 | 5,838,000 |
Cash and cash equivalents | 21,851,786 | 32,347,806 |
Interest-bearing time deposits | 3,000,000 | |
Available-for-sale debt securities | 7,891,232 | 5,213,830 |
Loans held for sale | 8,121,375 | 13,345,370 |
Loans, net of allowance for loan losses of $1,672,545 and $1,672,545, respectively | 195,541,821 | 166,667,918 |
Premises and equipment, net | 3,488,822 | 3,487,826 |
Federal Home Loan Bank stock | 4,149,300 | 2,801,800 |
Interest receivable | 577,002 | 520,775 |
Mortgage servicing rights | 2,230,751 | 2,025,323 |
Federal Home Loan Bank lender risk account receivable | 2,286,690 | 1,947,271 |
Bank-owned life insurance | 4,256,570 | 4,172,486 |
Other assets | 1,068,690 | 1,603,150 |
Total assets | 251,464,039 | 237,133,555 |
Deposits | ||
Demand | 45,787,848 | 41,945,628 |
Savings | 75,527,958 | 48,056,629 |
Certificates of deposit | 83,137,755 | 62,204,786 |
Total deposits | 204,453,561 | 152,207,043 |
Federal Home Loan Bank advances | 38,412,000 | |
Advances from borrowers for taxes and insurance | 1,808,971 | 1,946,340 |
Interest payable | 24 | 73,585 |
Directors deferred compensation | 696,295 | 601,536 |
Deferred tax liabilities | 1,090,765 | 905,975 |
Other liabilities | 514,705 | 1,483,105 |
Total liabilities | 208,564,321 | 195,629,584 |
Commitments and Contingent Liabilities | ||
Stockholders' Equity | ||
Preferred stock - authorized 1,000,000 shares, $0.01 par value, none issued | ||
Common stock - authorized 14,000,000 shares, $0.01 par value; issued 2,975,625; outstanding 2,930,550 at December 31, 2021 and 2,975,625 at December 31, 2020 | 29,275 | 29,756 |
Additional paid-in capital | 22,953,608 | 23,266,485 |
Unearned ESOP shares | (1,570,810) | (1,673,660) |
Retained earnings - substantially restricted | 21,821,948 | 20,173,404 |
Accumulated other comprehensive loss | (334,303) | (292,014) |
Total stockholders' equity | 42,899,718 | 41,503,971 |
Total liabilities and stockholders' equity | $ 251,464,039 | $ 237,133,555 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Allowance for loan losses | $ 1,672,545 | $ 1,672,545 |
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par or stated value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 14,000,000 | 14,000,000 |
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares, issued | 2,975,625 | 2,975,625 |
Common stock, shares, outstanding | 2,930,550 | 2,975,625 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and Dividend Income | ||
Loans, including fees | $ 8,017,345 | $ 7,805,587 |
Securities | 57,828 | 64,778 |
Dividends on Federal Home Loan Bank stock and other | 80,051 | 156,353 |
Total interest and dividend income | 8,155,224 | 8,026,718 |
Interest Expense | ||
Deposits | 1,028,520 | 1,653,918 |
Federal Home Loan Bank advances | 540,004 | 940,754 |
Total interest expense | 1,568,524 | 2,594,672 |
Net Interest Income | 6,586,700 | 5,432,046 |
Provision for Loan Losses | 265,000 | |
Net Interest Income After Provision for Loan Losses | 6,586,700 | 5,167,046 |
Noninterest Income | ||
Gain on sales of loans | 8,762,276 | 9,516,967 |
Mortgage servicing fees (costs) | (84,772) | (301,014) |
Mortgage derivative income (expense) | (233,412) | 353,649 |
Other | 1,166,259 | 1,084,320 |
Total noninterest income | 9,610,351 | 10,653,922 |
Noninterest Expense | ||
Salaries and employee benefits | 8,600,794 | 7,795,886 |
Occupancy and equipment | 792,148 | 700,851 |
Directors compensation | 169,000 | 174,833 |
Data processing | 847,393 | 598,483 |
Professional fees | 393,387 | 337,166 |
Franchise tax | 286,788 | 210,383 |
Deposit insurance premiums | 60,519 | 32,889 |
Advertising | 328,089 | 275,156 |
Software licenses | 136,517 | 134,198 |
Loan costs | 760,412 | 645,672 |
FHLB advance prepayment penalties | 766,671 | |
Other | 958,608 | 939,764 |
Total noninterest expense | 14,100,326 | 11,845,281 |
Income Before Income Taxes | 2,096,725 | 3,975,687 |
Provision for Income Taxes | 448,181 | 819,966 |
Net Income | $ 1,648,544 | $ 3,155,721 |
Earnings per common share - basic | $ 0.59 | $ 1.14 |
Earnings per common share - diluted | $ 0.58 | $ 1.12 |
Weighted-average shares outstanding - basic | 2,741,888 | 2,749,689 |
Weighted-average shares outstanding - diluted | 2,811,376 | 2,789,346 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income | ||
Net Income | $ 1,648,544 | $ 3,155,721 |
Other Comprehensive Income (Loss): | ||
Net unrealized gains on available-for-sale securities | 3,741 | 50,548 |
Tax expense | (786) | (10,615) |
Changes in directors' retirement plan prior service costs | (19,260) | (51,846) |
Tax (expense) benefit | (25,984) | 10,888 |
Other comprehensive loss | (42,289) | (1,025) |
Comprehensive Income | $ 1,606,255 | $ 3,154,696 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares. | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2019 | $ 29,607 | $ 7,529,850 | $ (449,313) | $ 17,017,683 | $ (290,989) | $ 23,836,838 |
Proceeds from issuance of 1,652,960 shares of common stock (which included 132,237 shares to the ESOP), net of the offering costs of $1.2 million) | 29,756 | 15,577,194 | (1,322,370) | 14,284,580 | ||
Contribution by CF Mutual Holding Company | 50,000 | 50,000 | ||||
Exchange of common stock | (29,607) | (29,607) | ||||
ESOP shares earned | (975) | 98,023 | 97,048 | |||
Stock based compensation expense | 110,416 | 110,416 | ||||
Net income | 3,155,721 | 3,155,721 | ||||
Other comprehensive loss | (1,025) | (1,025) | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2020 | 29,756 | 23,266,485 | (1,673,660) | 20,173,404 | (292,014) | 41,503,971 |
ESOP shares earned | 38,723 | 102,850 | 141,573 | |||
Stock based compensation expense | 306,716 | 306,716 | ||||
Stock options exercised | 19,295 | 19,295 | ||||
Repurchase of common stock | (481) | (677,611) | (678,092) | |||
Net income | 1,648,544 | 1,648,544 | ||||
Other comprehensive loss | (42,289) | (42,289) | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2021 | $ 29,275 | $ 22,953,608 | $ (1,570,810) | $ 21,821,948 | $ (334,303) | $ 42,899,718 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Consolidated Statements of Stockholders' Equity | |
Issuance of common stock (in shares) | 1,652,960 |
Shares under Employee Stock Ownership Plan | 132,237 |
Offering costs | $ | $ 1.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | ||
Net income | $ 1,648,544 | $ 3,155,721 |
Items not requiring (providing) cash: | ||
Depreciation and amortization | 234,201 | 220,756 |
Provision for loan losses | 265,000 | |
Amortization of premiums and discounts on securities, net | 16,049 | 22,654 |
Amortization of deferred prepayment penalty on Federal Home Loan Bank advances | 3,086 | |
Change in deferred income taxes | 202,338 | 51,470 |
Gain on sale of loans | (8,762,276) | (9,516,967) |
Proceeds from the sale of loans held for sale | 281,670,896 | 300,877,832 |
Origination of loans held for sale | (267,684,625) | (301,592,154) |
Mortgage servicing rights | (205,428) | (811,508) |
Earnings on cash surrender value of bank-owned life insurance | (84,084) | (85,841) |
Stock-based compensation expense | 306,716 | 110,416 |
ESOP shares earned | 141,573 | 97,048 |
Changes in: | ||
Interest receivable | (56,227) | 103,558 |
Federal Home Loan Bank lender risk account receivable | (339,419) | (234,031) |
Derivative assets | 347,390 | 498,644 |
Other assets | 187,072 | (864,699) |
Interest payable | (73,561) | (18,051) |
Derivative liabilities | (113,978) | (144,995) |
Other liabilities | (823,242) | 1,200,230 |
Net cash provided by (used in) operating activities | 6,611,939 | (6,661,831) |
Investing Activities | ||
Net change in interest-bearing deposits | 3,000,000 | (3,000,000) |
Proceeds from maturities of available-for-sale debt securities | 2,344,664 | 1,547,277 |
Purchase of available for sale debt securities | (5,034,375) | |
Purchase of Federal Home Loan Bank stock | (1,347,500) | (144,400) |
Net change in loans | (28,873,903) | 12,399,108 |
Purchase of premises and equipment | (235,197) | (354,135) |
Net cash (used in) provided by investing activities | (30,146,311) | 10,447,850 |
Financing Activities | ||
Net increase (decrease) in deposits | 52,246,518 | (14,610,675) |
Repurchase of common stock | (678,092) | |
Proceeds from issuance of common stock | 19,295 | 14,060,646 |
Proceeds from Federal Home Loan Bank advances | 212,500,000 | 14,000,000 |
Repayment of Federal Home Loan Bank advances | (250,912,000) | (22,763,152) |
Net change in advances from borrowers for taxes and insurance | (137,369) | 139,702 |
Net cash provided by (used in) financing activities | 13,038,352 | (9,173,479) |
Decrease in Cash and Cash Equivalents | (10,496,020) | (5,387,460) |
Cash and Cash Equivalents, Beginning of Period | 32,347,806 | 37,735,266 |
Cash and Cash Equivalents, End of Period | 21,851,786 | 32,347,806 |
Supplemental Cash Flows Information | ||
Interest paid | 1,642,085 | 2,612,723 |
Income taxes paid | $ 455,000 | $ 441,193 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Cincinnati Bancorp (“Bancorp”), the predecessor to Cincinnati Bancorp, Inc. (“Company”), was the mid-tier holding company for Cincinnati Federal (the “Bank”), a federally chartered stock savings and loan association that is primarily engaged in providing a full range of banking and financial services to individual and corporate customers. Our business operations are conducted in the larger Greater Cincinnati/Northern Kentucky metropolitan area which includes Hamilton, Warren, Butler and Clermont Counties in Ohio, Boone, Kenton and Campbell Counties in Kentucky, and Dearborn County, Indiana. On October 14, 2015, the Bank had reorganized into the mutual holding company structure. As part of the reorganization, the Bancorp sold 773,663 shares of common stock at a price of $10.00 per share in a public offering and issued 945,587 shares of common stock to CF Mutual Holding Company, the Bancorp's parent mutual holding company. On December 20, 2019, the Bancorp's shareholders approved a plan of conversion and reorganization, whereby CF Mutual Holding Company and Cincinnati Bancorp would convert and reorganize from the mutual holding company structure to the stock holding company structure. The conversion and reorganization were completed effective January 22, 2020, whereby the Company, a Maryland corporation and successor to the Bancorp, sold a total of 1,652,960 shares of common stock at a price of $10.00 per share in the subscription offering, which included 132,237 shares sold to Cincinnati Federal's Employee Stock Ownership Plan, and issued 1,322,665 shares of common stock in exchange for the outstanding shares of common stock of the Bancorp owned by stockholders other than CF Mutual Holding Company. The exchange ratio for previously held shares of Cincinnati Bancorp was 1.6351 as applied in the conversion offering. References herein to the “Company” include Cincinnati Bancorp, Inc. and Cincinnati Bancorp before completion of the conversion. The Company is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. Revenue Recognition The Company accounts for revenues in accordance with accounting guidance that provides that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Interest income, net securities gains (losses), gains from the sale of mortgage loans and earnings on bank-owned life insurance are not covered under ASC 606 and are recognized as contractually earned. For other revenue streams including service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All of the Company’s revenue from contracts with customers is recognized within other noninterest income. Service charges on deposit accounts: Interchange income: Principles of Consolidation The accompanying condensed consolidated financial statements include Cincinnati Bancorp, Inc. and its wholly-owned subsidiary, Cincinnati Federal, together referred to as “the Company.” All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the 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 relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights and fair values of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2021 and 2020, cash equivalents consisted primarily of due from accounts with the Federal Reserve, Federal Home Loan Bank of Cincinnati and other correspondent banks. From time to time, the Company’s interest-bearing cash accounts may exceed the FDIC’s insured limit of $250,000 per account. At December 31, 2021, the Company held $1,812,000 in various correspondent banks. At December 31, 2021, the Company held $11,233,000 at the Federal Reserve Bank and Federal Home Loan Bank which are not subject to FDIC limits. Management considers the risk of loss to be low based on the quality of the institutions where the funds are maintained. Interest-bearing Time Deposits in Banks Interest-bearing deposits in banks are carried at cost. D ebt Securities Available-for- sale debt securities are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost, when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income. Direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six consecutive months. Loans acquired at the effective date of a merger are recorded at fair value with no carryover of the acquired entity’s previously established allowance for loan losses. The excess of expected cash flows over the estimated fair value of the acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses. Subsequent improvements in expected cash flows result in the recognition of additional interest income over the remaining contractual lives of the loans. Management estimates the cash flows expected to be collected at acquisition using a third-party risk model, which incorporates the estimate of key assumptions, such as default rates and prepayment speeds. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. 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 allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. 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, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with the borrower’s current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings commence. The Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy that any restructured loans on nonaccrual prior to being restructured remain on nonaccrual status until six consecutive months of satisfactory borrower performance, at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regards to determination of the amount of the allowance for credit losses, TDRs are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. On March 27, 2020, the president of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (“the CARES Act”), which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP. Section 4013 of the CARES Act allows financial institutions to suspend application of certain TDR accounting guidance for loan and lease modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. Section 4013 of the CARES Act was amended on December 27, 2020, to extend this relief until January 1, 2022. The relief can be applied to loan and lease modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan and lease modifications that defer or delay the payment of principal or interest, or change the interest rate on a loan. The Company chose to apply this relief to eligible loan and lease modifications. Lender Reserve Account Certain loan sale transactions with the Federal Home Loan Bank of Cincinnati (FHLB) provide for the establishment of a Lender Reserve Account (LRA). The LRA consists of amounts withheld from loan sale proceeds by the FHLB for absorbing inherent losses that are probable on those sold loans. These withheld funds are an asset to the Company as they are scheduled to be paid to the Company in future years, net of any credit losses on those loans sold. The receivables are initially measured at fair value. The fair value is estimated by discounting the cash flows over the life of each master commitment contract. The accretable yield is amortized over the life of the master commitment contract. Expected cash flows are re-evaluated at each measurement date. If there is an adverse change in expected cash flows, the accretable yield would be adjusted on a prospective basis and the asset evaluated for impairment. Premises and Equipment Depreciable assets are stated at cost, less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 15-40 years Equipment 3-5 years Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at par and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less estimated costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less estimated costs to sell. Net revenue and expenses from operations and changes in the valuation allowance are included in noninterest expense from foreclosed assets. There were no valuation allowances established during 2021 or 2020. Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50 Transfers and Servicing Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing rights and may result in a reduction or addition to noninterest income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For nonexchange-traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. Derivative Loan Commitments Mortgage loan commitments that relate to the origination of a mortgage that will be held for sale upon funding are considered derivative instruments under the derivatives and hedging accounting guidance (ASC 815, Derivatives and Hedging Forward Loan Sale Commitments The Company carefully evaluates all loan sale agreements to determine whether they meet the definition of a derivative under the derivatives and hedging accounting guidance (ASC 815), as facts and circumstances may differ significantly. If agreements qualify, to protect against the price risk inherent in derivative loan commitments, the Company uses both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Accordingly, forward loan sale commitments are recognized at fair value on the consolidated balance sheet in other assets and liabilities with changes in their fair values recorded in other noninterest income. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments. Employee Stock Ownership Plan (“ESOP”) The cost of unearned ESOP shares is shown as a reduction of stockholders’ equity. Compensation expense is based on the average fair value of shares as they are committed to be released to participant accounts and the shares become outstanding for earnings per share computations. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares are used to reduce annual ESOP debt service. As of December 31, 2021, 47,018 shares have been released to eligible participants in the ESOP and 10,285 shares have been allocated to eligible participants. (See Note 12 – Employee and Director Benefits ). Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. If necessary, the Company recognizes interest and penalties on income taxes as a component of income tax expense. With a few exceptions, the Company is no longer subject to examinations by tax authorities for years before 2018. As of December 31, 2021 and 2020, the Company had no uncertain tax positions. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized gains (losses) on available-for-sale securities and changes in the funded status of the directors’ retirement plan. Earnings Per Share Basic earnings per share (“EPS”) allocated to common shareholders is calculated using the two-class method and is computed by dividing net income allocated to common shareholders by the weighted-average number of common shares outstanding during the period. The two-class method is an earnings allocation formula that determines the EPS for each class of common stock and participating securities according to dividends distributed and participation rights in undistributed earnings. Diluted EPS is adjusted for dilutive effects of stock-based compensation and is calculated using the two-class method or treasury method. The average number of common shares outstanding is increased to include the number of shares that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period, as well as for any adjustment to income that would result from the assumed issuance. Unallocated common shares held by the Company’s ESOP are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted earnings per share calculations until they are committed to be released. |
Debt Securities
Debt Securities | 12 Months Ended |
Dec. 31, 2021 | |
Debt Securities | |
Debt Securities | Note 2: Debt Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of debt securities are as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Debt Securities: December 31, 2021: Mortgage-backed securities of government sponsored entities $ 7,844,180 $ 49,809 $ (2,757) $ 7,891,232 December 31, 2020: Mortgage-backed securities of government sponsored entities $ 5,170,519 $ 46,278 $ (2,967) $ 5,213,830 There were no sales of available-for-sale debt securities in 2021 and 2020. Expected maturities on mortgage-backed securities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2021 and 2020, the Company’s investments consisted entirely of mortgage-backed securities which are not due at a single maturity date. Total fair value of investments at December 31, 2021 reported at less than historical cost was $126,007 and was approximately 1.6% of the Company’s investment portfolio. The decline in available-for-sale securities reported at less than historical cost primarily resulted from low market interest rates during 2021. There was $192,587 or approximately 3.7% of the investment portfolio reported at less than historical cost at December 31, 2020. The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021 and 2020: Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2021: Mortgage-backed securities of government sponsored entities $ 12,977 $ (48) $ 113,030 $ (2,709) $ 126,007 $ (2,757) December 31, 2020: Mortgage-backed securities of government sponsored entities $ 51,122 $ (617) $ 141,465 $ (2,350) $ 192,587 $ (2,967) |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 3: Loans and Allowance for Loan Losses Categories of loans at December 31, 2021 and 2020 include: December 31, December 31, 2021 2020 One to four family mortgage loans - owner occupied $ 70,336,846 $ 72,697,588 One to four family - investment 10,361,388 12,058,824 Multi-family mortgage loans 55,029,111 41,749,223 Nonresidential mortgage loans 41,761,964 29,531,917 Construction and land loans 19,425,025 5,841,415 Real estate secured lines of credit 11,403,262 9,934,387 Commercial loans 299,851 736,979 Other consumer loans 348,386 338,709 Total loans 208,965,833 172,889,042 Less: Net deferred loan costs (404,884) (332,908) Undisbursed portion of loans 12,156,351 4,881,487 Allowance for loan losses 1,672,545 1,672,545 Net loans $ 195,541,821 $ 166,667,918 Risk characteristics applicable to each segment of the loan portfolio are described as follows: One to Four Family Mortgage Loans and Real Estate Secured Lines of Credit: One to Four Family Investment Property Loans: Multi-Family and Nonresidential Mortgage Loans: Construction and Land Loans: Commercial Loans: Other Consumer Loans: The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2021 and December 31, 2020: At or For the Year Ended December 31, 2021 One- to Four- Family Mortgage One- to Four- Construction & Real Estate Loans Owner Family Mortgage Multi-Family Nonresidential Land Secured Lines of Commercial Other Consumer Occupied Loans Investment Mortgage Loans Mortgage Loans Loans Credit Loans Loans Total Allowance for loan loans: Balance, beginning of year $ 416,404 $ 99,978 $ 670,822 $ 316,332 $ 96,435 $ 49,336 $ 17,111 $ 6,127 $ 1,672,545 Provision (credit) charged to expense (131,324) (48,215) 20,797 19,768 182,393 (20,586) (16,924) (5,909) — (Charge-offs) recoveries — — — — — — — — — Balance, end of year $ 285,080 $ 51,763 $ 691,619 $ 336,100 $ 278,828 $ 28,750 $ 187 $ 218 $ 1,672,545 Ending balance: Individually evaluated for impairment $ 18,924 $ 40,075 $ — $ — $ — $ — $ — $ — $ 58,999 Ending balance: Collectively evaluated for impairment $ 266,156 $ 11,688 $ 691,619 $ 336,100 $ 278,828 $ 28,750 $ 187 $ 218 $ 1,613,546 Loans: Ending balance $ 70,336,846 $ 10,361,388 $ 55,029,111 $ 41,761,964 $ 19,425,025 $ 11,403,262 $ 299,851 $ 348,386 $ 208,965,833 Ending balance: Individually evaluated for impairment $ 1,154,343 $ 433,153 $ 126,451 $ — $ — $ 54,881 $ — $ — $ 1,768,828 Ending balance: Collectively evaluated for impairment $ 69,182,503 $ 9,928,235 $ 54,902,660 $ 41,761,964 $ 19,425,025 $ 11,348,381 $ 299,851 $ 348,386 $ 207,197,005 At or For the Year Ended December 31, 2020 One- to Four- Family Mortgage One- to Four- Construction & Real Estate Loans Owner Family Mortgage Multi-Family Nonresidential Land Secured Lines of Commercial Other Consumer Occupied Loans Investment Mortgage Loans Mortgage Loans Loans Credit Loans Loans Total Allowance for loan loans: Balance, beginning of year $ 324,647 $ 82,219 $ 524,183 $ 277,026 $ 69,457 $ 105,187 $ 11,408 $ 13,418 $ 1,407,545 Provision (credit) charged to expense 91,757 17,759 146,639 39,306 26,978 (55,851) 5,703 (7,291) 265,000 (Charge-offs) recoveries — — — — — — — — — Balance, end of year $ 416,404 $ 99,978 $ 670,822 $ 316,332 $ 96,435 $ 49,336 $ 17,111 $ 6,127 $ 1,672,545 Ending balance: Individually evaluated for impairment $ 20,722 $ 40,075 $ — $ — $ — $ — $ — $ — $ 60,797 Ending balance: Collectively evaluated for impairment $ 395,682 $ 59,903 $ 670,822 $ 316,332 $ 96,435 $ 49,336 $ 17,111 $ 6,127 $ 1,611,748 Loans: Ending balance $ 72,697,588 $ 12,058,824 $ 41,749,223 $ 29,531,917 $ 5,841,415 $ 9,934,387 $ 736,979 $ 338,709 $ 172,889,042 Ending balance: Individually evaluated for impairment $ 1,236,597 $ 561,660 $ 210,524 $ — $ — $ 58,557 $ — $ — $ 2,067,338 Ending balance: Collectively evaluated for impairment $ 71,460,991 $ 11,497,164 $ 41,538,699 $ 29,531,917 $ 5,841,415 $ 9,875,830 $ 736,979 $ 338,709 $ 170,821,704 The Company has adopted a standard grading system for all loans. Definitions are as follows: Prime (1) Good (2) Satisfactory (3) Acceptable (4) Special Mention (5) Substandard (6) Doubtful (7) Loss (8) The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2021 and 2020: December 31, 2021 One- to Four- One- to Four- Family Mortgage Family Mortgage Real Estate Loans - Owner Loans - Multi-Family Nonresidential Construction & Secured Lines of Commercial Other Consumer Occupied Investment Mortgage Loans Mortgage Loans Land Loans Credit Loans Loans Total Pass $ 69,644,317 $ 10,283,060 $ 55,029,111 $ 41,761,964 $ 19,425,025 $ 11,348,381 $ 299,851 $ 348,386 $ 208,140,095 Special mention 106,561 78,328 — — — — — — 184,889 Substandard 585,968 — — — — 54,881 — — 640,849 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 70,336,846 $ 10,361,388 $ 55,029,111 $ 41,761,964 $ 19,425,025 $ 11,403,262 $ 299,851 $ 348,386 $ 208,965,833 December 31, 2020 One- to Four- One- to Four- Family Mortgage Family Mortgage Real Estate Loans - Owner Loans - Multi-Family Nonresidential Construction & Secured Lines of Commercial Other Consumer Occupied Investment Mortgage Loans Mortgage Loans Land Loans Credit Loans Loans Total Pass $ 71,930,902 $ 11,538,993 $ 41,669,892 $ 29,063,783 $ 5,841,415 $ 9,783,448 $ 736,979 $ 338,709 $ 170,904,121 Special mention 113,516 519,831 — 468,134 — — — — 1,101,481 Substandard 653,170 — 79,331 — — 150,939 — — 883,440 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 72,697,588 $ 12,058,824 $ 41,749,223 $ 29,531,917 $ 5,841,415 $ 9,934,387 $ 736,979 $ 338,709 $ 172,889,042 The pass portfolio within the tables above consists of loans graded Prime (1) through Acceptable (4). The Company evaluates the loan risk grading system definitions and the allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the year ended December 31, 2021. The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2021 and 2020: December 31, 2021 90 Days and Total Loans > 90 30-59 Days 60-89 Days Past Greater Total Loans Days Past Due Past Due Due Past Due Total Past Due Current Receivable & Accruing One to four-family mortgage loans $ 61,602 $ 34,645 $ 120,170 $ 216,417 $ 70,120,429 $ 70,336,846 $ — One to four family - investment — — — — $ 10,361,388 10,361,388 — Multi-family mortgage loans — — — — $ 55,029,111 55,029,111 — Nonresidential mortgage loans — — — — $ 41,761,964 41,761,964 — Construction & land loans — — — — $ 19,425,025 19,425,025 — Real estate secured lines of credit — — — — $ 11,403,262 11,403,262 — Commercial loans — — — — $ 299,851 299,851 — Other consumer loans — — — — 348,386 348,386 — Total $ 61,602 $ 34,645 $ 120,170 $ 216,417 $ 208,749,416 $ 208,965,833 $ — December 31, 2020 90 Days and Total Loans > 90 30-59 Days 60-89 Days Past Greater Past Total Loans Days Past Due Past Due Due Due Total Past Due Current Receivable & Accruing One to four-family mortgage loans $ 96,826 $ 127,616 $ 173,877 $ 398,319 $ 72,299,269 $ 72,697,588 $ — One to four family - investment — — — — 12,058,824 12,058,824 — Multi-family mortgage loans — — — — 41,749,223 41,749,223 — Nonresidential mortgage loans — — — — 29,531,917 29,531,917 — Construction & land loans — — — — 5,841,415 5,841,415 — Real estate secured lines of credit — — — — 9,934,387 9,934,387 — Commercial loans — — — — 736,979 736,979 — Other consumer loans — — — — 338,709 338,709 — Total $ 96,826 $ 127,616 $ 173,877 $ 398,319 $ 172,490,723 $ 172,889,042 $ — A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310, Receivables The following tables present impaired loans at and for the years ended December 31, 2021 and 2020: December 31, 2021 Unpaid Recorded Principal Specific Average Investment Interest Income Balance Balance Allowance in Impaired Loans Recognized Loans without a specific valuation allowance One- to four-family mortgage loans $ 1,148,015 $ 1,148,015 $ — $ 1,162,455 $ 49,247 One- to four-family - investment 231,387 231,387 — 266,054 11,559 Multi-family mortgage loans 126,451 126,451 — 128,666 5,806 Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit 54,881 54,881 — 56,694 3,967 Commercial loans — — — — — Other consumer loans — — — — — Loans with a specific valuation allowance One- to four-family mortgage loans 6,328 25,252 18,924 26,031 920 One- to four-family - investment 201,766 241,841 40,075 245,350 10,422 Multi-family mortgage loans — — — — — Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit — — — — — Commercial loans — — — — — Other consumer loans — — — — — $ 1,768,828 $ 1,827,827 $ 58,999 $ 1,885,250 $ 81,921 December 31, 2020 Unpaid Recorded Principal Specific Average Investment Interest Income Balance Balance Allowance in Impaired Loans Recognized Loans without a specific valuation allowance One- to four-family mortgage loans $ 1,177,459 $ 1,177,459 $ — $ 1,190,698 $ 52,684 One- to four-family - investment 352,514 352,514 — 362,021 19,387 Multi-family mortgage loans 210,524 210,524 — 330,855 22,817 Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit 58,557 58,557 — 60,115 4,087 Commercial loans — — — — — Other consumer loans — — — — — Loans with a specific valuation allowance One- to four-family mortgage loans 59,138 79,860 20,722 80,701 1,689 One- to four-family - investment 209,146 249,221 40,075 252,341 11,794 Multi-family mortgage loans — — — — — Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit — — — — — Commercial loans — — — — — Other consumer loans — — — — — $ 2,067,338 $ 2,128,135 $ 60,797 $ 2,276,731 $ 112,458 Interest income recognized on a cash basis was not materially different than interest income recognized. The following table presents the Company’s nonaccrual loans at December 31, 2021 and 2020. This table excludes accruing TDRs, which totaled $990,000 and $1,143,000 at December 31, 2021 and 2020, respectively. December 31, December 31, 2021 2020 One- to four-family mortgage loans $ 120,170 $ 173,877 One to four family - investment — — Multi-family mortgage loans — — Nonresidential mortgage loans — — Construction and land loans — — Real estate secured lines of credit — — Commercial loans — — Other consumer loans — — Total $ 120,170 $ 173,877 There were no newly classified TDRs at December 31, 2021. The following table presents the newly classified TDRs at December 31, 2020: December 31, 2020 Pre- Modification Number of Recorded Post-Modification Loans Balance Recorded Balance Mortgage loans on real estate: Residential 1-4 family - owner occupied 1 $ 82,561 $ 82,561 Residential 1-4 family - investment — — — Multifamily — — — Nonresidential mortgage loans — — — Construction & land loans — — — Construction & land loans — — — Real estate secured lines of credit — — — Commercial loans — — — Consumer loans — — — 1 $ 82,561 $ 82,561 Newly restructured loans by type of modification are as follows at December 31, 2020: December 31, 2020 Total Interest Only Term Combination Modification Mortgage loans on real estate: Residential 1-4 family - owner occupied $ 82,561 $ — $ — $ 82,561 Residential 1-4 family -investment — — — — Multifamily — — — — Nonresidential mortgage loans — — — — Construction & land loans — — — — Real estate secured lines of credit — — — — Commercial loans — — — — Consumer loans — — — — $ 82,561 $ — $ — $ 82,561 The Company had no loans that were modified as TDRs and that were impaired. The Company had no TDRs modified during the years ended December 31, 2021 and 2020 that subsequently defaulted. As of December 31, 2021, borrowers with loans designated as TDRs and totaling $864,000 of residential real estate loans and $126,000 of multifamily loans, met the criteria for placement back on accrual status. This criteria includes a minimum of six consecutive months of payment performance under existing or modified terms. As of December 31, 2020, borrowers with loans designated as TDRs and totaling $932,000 of residential real estate loans and $211,000 of multifamily loans, met the criteria for placement back on accrual status. This criteria includes a minimum of six consecutive months of payment performance under existing or modified terms. There were no foreclosed real estate properties at December 31, 2021 and 2020. There was one consumer mortgage loan in process of foreclosure at December 31, 2021 with a net loan balance of $65,500. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 4: Premises and Equipment Major classifications of premises and equipment, stated at cost, are as follows: 2021 2020 Land $ 720,971 $ 720,971 Buildings and improvements 4,808,309 4,649,005 Furniture and equipment 1,206,942 1,131,050 6,736,222 6,501,026 Less accumulated depreciation (3,247,400) (3,013,200) Net premises and equipment $ 3,488,822 $ 3,487,826 Depreciation expense was $234,201 and $220,756 for the years ended December 31, 2021 and 2020, respectively. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2021 | |
Loan Servicing | |
Loan Servicing | Note 5: Loan Servicing Loans serviced for others are not included in the accompanying balance sheets. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The unpaid principal balance of residential mortgage loans serviced for others was $282,021,641 and $230,156,936 at December 31, 2021 and 2020, respectively. The following summarizes the activity in mortgage servicing rights measured using the fair value method for the years ended December 31, 2021 and 2020: 2021 2020 Fair value as of the beginning of the period $ 2,025,323 $ 1,213,815 Recognition of mortgage servicing rights on the sale of loans 941,129 1,460,328 Change in fair value due to changes in valuation inputs or assumptions used in the valuation model and loan payments received on loan balances (735,701) (648,820) Fair value at the end of the period $ 2,230,751 $ 2,025,323 Contractually specified servicing fees were approximately $651,000 and $348,000 for the years ended December 31, 2021 and 2020, respectively. Certain loan sale transactions with the FHLB provide for establishment of an LRA. The LRA consists of amounts withheld from the loan sale proceeds by the FHLB for absorbing potential losses on those loans sold. These withheld funds are an asset to the Company as they are scheduled to be paid to the Company in future years, net of any credit losses on those loans sold. The LRA funds withheld to settle these potential losses totaled approximately $4,092,000 and $3,437,000 at December 31, 2021 and 2020, respectively; however, these receivables are recorded at fair value at the time of sale, which includes consideration of potential credit losses, at the time of the establishment of the LRA. In the event that the credit losses do not exceed the withheld funds, the LRA agreements provide for payment of these funds to the Company in seven annual installments beginning five years after the sale date or in 26 annual installments, beginning five years after the sale date. The carrying value of the LRA is equal to the initial fair value plus an interest component less any cash receipts, which totaled approximately $2,287,000 and $1,947,000 at December 31, 2021 and 2020, respectively. The Company had mandatory delivery contracts outstanding as of December 31, 2021 of $16.8 million. |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Time Deposits | |
Time Deposits | Note 6: Time Deposits Time deposits in denominations of $250,000 or more were approximately $7.6 million and $2.6 million at December 31, 2021 and 2020, respectively. Deposit accounts in excess of $250,000 are not insured by the FDIC. At December 31, 2021, approximately $40.9 million of our certificates of deposit had been obtained through the National CD Rateline program. At December 31, 2021 and 2020, the scheduled maturities of time deposits were as follows: 2021 2020 One year or less $ 31,068,958 $ 35,131,024 Over one year to two years 23,491,368 14,359,679 Over two years to three years 19,101,494 5,507,330 Over three years to four years 7,365,269 4,077,670 Over four years to five years 1,904,092 2,922,656 Thereafter 206,574 206,427 $ 83,137,755 $ 62,204,786 Interest expense during the years ended December 31, 2021 and 2020 for each major category of deposits was as follows: 2021 2020 Deposit Type: Savings $ 112,374 $ 115,409 Interest Bearing Demand 45,575 61,269 Certificates of Deposit 870,571 1,477,240 Total Deposit Interest Expense $ 1,028,520 $ 1,653,918 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Bank Advances | |
Federal Home Loan Bank Advances | Note 7: Federal Home Loan Bank Advances FHLB advances are secured by a blanket pledge of qualifying mortgage loans totaling approximately $89,916,000 and $91,040,000 and the Company’s investment in FHLB stock at December 31, 2021 and 2020, respectively. Advances are subject to restrictions or penalties in the event of prepayment. The Company had no outstanding FHLB advances at December 31, 2021. During the year ended December 31, 2021 the Company repaid all FHLB advances totaling $38.4 million and incurred prepayment penalties of $766,671. FHLB letters of credit were obtained in lieu of pledging securities to secure certain public fund deposits that are over the FDIC insurance limit. At December 31, 2021, FHLB letters of credit in the amount of $25.0 million were collateral for these deposits. The Company had no letters of credit with the FHLB at December 31, 2020. The Company had capacity to borrow approximately an additional $44.7 million from the FHLB-Cincinnati based on its collateral capacity at December 31, 2021. The Company also had $11.5 million available on lines of credit with three commercial banks. No amount was outstanding on these lines at December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note: 8 Income Taxes The provision for income taxes includes these components for the years ended December 31, 2021 and 2020. 2021 2020 Taxes currently payable $ 245,843 $ 768,496 Deferred income taxes 202,338 51,470 Income tax expense $ 448,181 $ 819,966 2021 2020 Computed at the statutory rate $ 440,312 $ 834,894 Increase (decrease) resulting from: Bank-owned life insurance (17,658) (18,027) Other 25,527 3,099 Actual tax expense $ 448,181 $ 819,966 A reconciliation between the statutory income tax and the Company’s effective rate follows: 2021 2020 Computed at the statutory rate 21.00 % 21.00 % Increase (decrease) resulting from: Bank-owned life insurance (0.84) % (0.45) % Other 1.22 % 0.07 % Effective tax rate 21.38 % 20.62 % The tax effects of temporary differences related to deferred taxes shown on the balance sheets at December 31, 2021 and 2020 were: 2021 2020 Deferred tax assets Allowance for loan losses $ 338,304 $ 333,573 Loans held for sale 39,718 72,541 Operating lease right of use liability 29,564 37,879 Directors’ Retirement Plan 146,222 126,323 Net operating loss 171,197 178,467 Other 2,117 43,562 727,122 792,345 Deferred tax liabilities Deferred loan costs (85,026) (69,911) Prepaid penalties on FHLB advances — — Dividends on FHLB stock (332,211) (332,211) Mortgage servicing rights (468,458) (425,318) FHLB lender risk account receivable (480,205) (408,927) Depreciation (261,251) (248,975) Operating lease right of use asset (29,564) (37,879) Unrealized gains on available-for-sale securities (9,881) (9,095) Fair value mortgage banking derivative net assets (25,250) (74,266) Other (106,719) (72,416) (1,798,565) (1,678,998) Valuation allowance (19,322) (19,322) Net deferred tax liability $ (1,090,765) $ (905,975) Retained earnings at both December 31, 2021 and 2020, include approximately $766,000 for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses or adjustments arising from carryback of net operating losses would create income for tax purposes only, which would be subject to the then-current corporate income tax rate. The deferred income tax liability on the preceding amount that would have been recorded if it was expected to reverse into taxable income in the foreseeable future was approximately $160,900 at both December 31, 2021 and 2020. As of December 31, 2020, the Company has net operating loss carryforwards of approximately $575,000 which expire between 2028 and 2036 and $240,000 with no expiration. A valuation allowance for deferred tax assets is provided for all or some portion of the deferred tax asset when it is more likely than not an amount will not be realized. An increase or decrease in the valuation allowance that results from a change in circumstances is included in income tax expense in the period they are identified. At December 31, 2021, the Company has a valuation allowance of $19,322 to reduce deferred tax assets to the amount that is more likely than not to be realized under Code Section 382 limitations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | Note 9: Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: December 31, December 31, 2021 2020 Net unrealized gains on available for sale securities $ 37,171 $ 43,311 Directors’ retirement plan (432,667) (413,407) (395,496) (370,096) Tax benefit (61,193) (78,082) Net of tax amount $ (334,303) $ (292,014) |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Regulatory Matters | Note 10: Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory-and possibly additional discretionary-actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined) to risk-weighted assets (as defined), common equity Tier I capital (as defined) to risk-weighted assets (as defined) and of Tier I capital to average assets (as defined). Management believes that, as of December 31, 2021 and 2020, the Bank met all capital adequacy requirements to which it was subject at such dates. Management opted out of the accumulated comprehensive income treatment under the Basel III capital requirements, and as such, unrealized gains and losses from available-for-sale securities will continue to be excluded from regulatory capital. The below minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was 2.50% at December 31, 2021. As of December 31, 2021, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual and required capital amounts and ratios are presented in the following table: Minimum to Be Well Capitalized Under Minimum Capital Prompt Corrective Actual Requirement Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2021: Total risk-based capital (to risk-weighted assets) $ 38,714 20.0 % $ 15,474 8.0 % $ 19,343 10.0 % Tier I capital (to risk-weighted assets) 37,041 19.2 % 11,606 6.0 % 15,474 8.0 % Common Equity Tier I capital (to risk-weighted assets) 37,041 19.2 % 8,704 4.5 % 12,573 6.5 % Tier I capital (to adjusted average total assets) 37,041 14.7 % 10,106 4.0 % 12,633 5.0 % As of December 31, 2020: Total risk-based capital (to risk-weighted assets) $ 36,465 22.0 % $ 13,272 8.0 % $ 16,590 10.0 % Tier I capital (to risk-weighted assets) 34,792 21.0 % 9,954 6.0 % 13,272 8.0 % Common Equity Tier I capital (to risk-weighted assets) 34,792 21.0 % 7,465 4.5 % 10,783 6.5 % Tier I capital (to adjusted average total assets) 34,792 14.8 % 9,415 4.0 % 11,769 5.0 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | Note 11: Related Party Transactions At December 31, 2021 and 2020, the Company had loans outstanding to executive officers, directors and their affiliates (related parties). Annual activity consisted of the following: 2021 2020 Beginning balance $ 761,280 $ 821,388 New loans — — Repayments 163,225 60,108 Ending balances $ 598,055 $ 761,280 In management’s opinion, such loans and other extensions of credit are consistent with sound lending practices and are within applicable regulatory lending limitations. In management’s opinion these loans did not involve more than normal risk of collectability or present other unfavorable features. Deposits from related parties held by the Bank at December 31, 2021 and 2020 totaled $3.1 million and $3.1 million, respectively. |
Employee and Director Benefits
Employee and Director Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee and Director Benefits | |
Employee and Director Benefits | Note 12: Employee and Director Benefits The Company has a 401(k) profit-sharing plan covering substantially all employees. The Company’s contributions to the plan are determined annually by the Board of Directors of Cincinnati Federal. Contributions to the plan charged to employee benefit expense were approximately $216,000 and $197,000 for the years ended December 31, 2021 and 2020, respectively. In connection with the conversion to the mutual holding company, Cincinnati Bancorp, established an Employee Stock Ownership Plan (ESOP) for the exclusive benefit of eligible employees. The ESOP borrowed funds from Cincinnati Bancorp in an amount sufficient to purchase 67,397 shares (approximately 3.92% of the common stock sold in the initial stock offering). In the second-step stock offering completed January 22, 2020, the ESOP borrowed funds from Cincinnati Bancorp, Inc. and purchased 132,237 shares (approximately 8.0% of the common stock sold in the second-step offering). The loan is secured by the shares purchased and will be repaid by the ESOP with funds from contributions made by the Company and dividends received by the ESOP. Contributions will be applied to repay interest on the loan first, then the remainder will be applied to principal. The loan is expected to be repaid over a period of up to 20 years. Shares purchased with the loan proceeds are held in a suspense account for allocation among participants as the loan is repaid. Contributions to the ESOP and shares released from the suspense account are allocated among participants in proportion to their compensation, relative to total compensation of all active participants. Participants will vest in their accrued benefits under the ESOP at the rate of 20 percent per year after two years of service. Vesting is accelerated upon retirement, death or disability of the participant, or a change in control of the Company. Forfeitures will be reallocated to remaining plan participants. Benefits may be payable upon retirement, death, disability, separation from service, or termination of the ESOP. The debt of the ESOP is eliminated in consolidation. Contributions to the ESOP shall be sufficient to pay principal and interest currently due under the loan agreement. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average market price of the shares for the respective period, and the shares become outstanding for earnings per share computations. Dividends on unallocated ESOP shares, if any, are recorded as a reduction of debt and accrued interest. ESOP compensation expense was approximately $141,573 and $97,048 for the years ended December 31, 2021 and 2020, respectively. A summary of the ESOP shares as of December 31, 2021 and 2020 are as follows: December 31, December 31, 2021 2020 Shares released to participants 47,018 36,733 Shares allocated to participants 10,285 10,285 Unreleased shares 184,922 195,207 Total 242,225 242,225 Fair value of unreleased shares $ 2,681,369 $ 2,252,689 In addition, the Company provides post-retirement benefits to directors of the Company . Defined Benefit Plans The Company uses a December 31 measurement date for the plan. Information about the plan’s funded status and pension cost follows: 2021 2020 Change in benefit obligation: Beginning of year $ 612,884 $ 559,295 Service cost 14,312 12,389 Interest cost 15,564 18,860 Loss/(gain) — 97,340 Service cost adjustment 68,535 — Benefits paid (15,000) (75,000) End of year $ 696,295 $ 612,884 Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of: 2021 2020 Prior service cost $ 25,280 $ 25,280 Net loss $ 18,567 $ 13,522 The accumulated benefit obligation for the benefit plan was $696,295 and $612,884 at December 31, 2021 and 2020, respectively. The estimated prior service credit for the plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is approximately $16,456. 2021 2020 Components of net periodic benefit cost: Service cost $ 14,312 $ 12,389 Interest Cost 15,564 18,860 (Gain)/loss recognized 18,567 8,866 Prior service cost 25,280 25,280 $ 73,723 $ 65,395 The retiree accrued liability expected to be reversed from the plan as of December 31, 2021 and December 31, 2020 is as follows: 2021 2020 One year or less $ 15,000 $ 15,000 Over one year to two years 15,000 15,000 Over two years to three years 15,000 15,000 Over three years to four years 15,000 15,000 Over four years to five years 15,000 15,000 Thereafter 180,000 165,000 $ 255,000 $ 240,000 Significant assumptions for the benefit plan liability include the following as of December 31, 2021 and 2020: 2021 2020 Weighted average assumptions used to determine benefit cost obligation: Discount Rate 2.32 % 3.08 % |
Operating Lease Income
Operating Lease Income | 12 Months Ended |
Dec. 31, 2021 | |
Operating Lease Income | |
Operating Lease Income | Note 13: Operating Lease Income The Company had no operating leases as of December 31, 2021. The Company had one operating lease where it acted as lessor of office space at December 31, 2020. The subject office space was a branch location for an unaffiliated bank. The lessee notified the Company that the branch would be relocating within their banking system. The lease was set to expire in November 2021 with three additional renewal options for five years each. The Company occupied the vacated bank branch and has operated a full-service branch facility since June 2021. Rental income from the lease including an early termination penalty was approximately $46,600 for the year ended December 31, 2021. Rental income from the leases was approximately $77,800 for the year ended December 31, 2020. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Disclosures About Fair Value of Assets and Liabilities | |
Disclosures About Fair Value of Assets and Liabilities | Note 14: Disclosures About Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Recurring Measurements The following tables present the fair value measurements of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2021 and 2020: Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) December 31, 2021: Mortgage-backed securities of government sponsored entities $ 7,891,232 $ — $ 7,891,232 $ — Mortgage servicing rights 2,230,751 — — 2,230,751 Interest rate lock commitments (included in other assets) 60,441 — 60,441 Interest rate lock commitments (included in other liabilities) (7,640) — — (7,640) Forward sale commitments (included in other assets) 90,814 — 90,814 — Forward sale commitments (included in other liabilities) (23,378) — (23,378) — December 31, 2020: Mortgage-backed securities of government sponsored entities $ 5,213,830 $ — $ 5,213,830 $ — Mortgage servicing rights 2,025,323 — — 2,025,323 Interest rate lock commitments (included in other assets) 498,644 — — 498,644 Interest rate lock commitments (included in other liabilities) — — — — Forward sale commitments (included in other assets) — — — — Forward sale commitments (included in other liabilities) (144,995) — (144,995) — Following is a description of the valuation methodologies and inputs used for assets measured at fair value on recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 and Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of loan balance, weighted average coupon, weighted average maturity, escrow payments, servicing fees, prepayment speeds, float, cost to service, ancillary income, and discount rate. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. Mortgage servicing rights are tested for impairment. Management measures mortgage servicing rights through use of a third-party independent valuation. Inputs to the model are reviewed by management. Mortgage servicing rights are carried in the balance sheet at fair value and the changes in fair value are reported in other noninterest income in the period in which the changes occur. Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For nonexchange-traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. Derivative – Interest Rate Lock Commitments The fair value of the interest rate lock commitments is based on the investor prices for the underlying loans or current secondary market prices for loans with similar characteristics plus the expected value of expected servicing assets less estimated costs to originate the loans and adjusted for the anticipated funding probability (pull-through rate). The fair value of interest rate lock commitments is also obtained from an independent third party and is based on investor prices for the underlying loans or current secondary market prices for loans with similar characteristics, less estimated costs to originate the loans and adjusted for the anticipated funding probability (pull-through rate). The fair value of interest rate lock commitments is classified as Level 3 in the fair value hierarchy. Derivative – Forward Sale Commitments Mortgage loan commitments that relate to the origination of a mortgage loan that will be held for sale upon funding are considered derivative instruments under the derivatives and hedging accounting guidance (ASC 815, Derivatives and Hedging The fair value of forward mortgage loan sale commitments is obtained from an independent third party and is based on the gain or loss that would occur if the Company were to pair-off the sales transaction with the investor. The fair value of forward mortgage loan sale commitments is classified as Level 2 in the fair value hierarchy. The table below provides information on the Company’s derivative financial instruments as of December 31, 2021 and December 31, 2020: Notional Asset Liability Amount Derivatives Derivatives December 31, 2021 Interest rate lock commitments $ 8,725,795 $ 60,441 $ 7,640 Forward sale commitments 16,842,514 90,814 23,378 $ 25,568,309 $ 151,255 $ 31,018 Notional Asset Liability Amount Derivatives Derivatives December 31, 2020 Interest rate lock commitments $ 19,613,510 $ 498,644 $ — Forward sale commitments 32,953,442 — 144,995 $ 52,566,952 $ 498,644 $ 144,995 Income (loss) related to derivative financial instruments included in noninterest income in the accompanying consolidated statements of income for the year ended December 31, 2021 is as follows: 2021 2020 Interest rate lock commitments $ (445,842) $ 498,644 Forward sale commitments 212,430 (144,995) Unrealized gains (losses) recognized in earnings $ (233,412) $ 353,649 Forward Loan Sale Commitments The Company carefully evaluates all loan sale agreements to determine whether they meet the definition of a derivative under the derivatives and hedging accounting guidance (ASC 815), as facts and circumstances may differ significantly. If agreements qualify, to protect against the price risk inherent in derivative loan commitments, the Company uses both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Accordingly, forward loan sale commitments are recognized at fair value on the consolidated balance sheet in other assets and liabilities with changes in their fair values recorded in other noninterest income. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative interest rate lock commitments. Nonrecurring Measurements The following table presents the fair value of assets measured at fair value on a nonrecurring basis and the level of hierarchy in which the fair value measurements fall at December 31, 2021 and 2020: Fair Value Measurements Using Quoted Prices in Active Markets Significant for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) December 31, 2021: Collateral-dependent impaired loans $ 120,170 $ — $ — $ 120,170 December 31, 2020 Collateral-dependent impaired loans $ 173,877 $ — $ — $ 173,877 Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2021 and 2020: Valuation Unobservable Range Fair Value Technique Inputs (Weighted Average) December 31, 2021: Mortgage servicing rights $ 2,230,751 Discounted cash flow Discount rate PSA prepayment speeds 10% Interest rate lock and mandatory commitments (assets) $ 151,255 Secondary market prices Pull-through rate (70%-100%) 80% Interest rate lock and mandatory commitments (liabilities) $ (31,018) Secondary market prices Pull-through rate (70%-100%) 80% Impaired loans (collateral dependent) $ 120,170 Market comparable properties Marketability discount (10%-15%) 12% December 31, 2020: Mortgage servicing rights $ 2,025,323 Discounted cash flow Discount rate PSA prepayment speeds 10% (177%-565%) 296% Interest rate lock and mandatory commitments $ 498,644 Secondary market prices Pull-through rate (70%-100%) 85% Interest rate lock and mandatory commitments (liabilities) $ (144,995) Secondary market prices Pull-through rate (70%-100%) 85% Impaired loans (collateral dependent) $ 173,877 Market comparable properties Marketability discount (10%-15% ) The following table presents estimated fair values of the Company’s financial instruments carried at cost at December 31, 2021 and 2020: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Instruments Inputs Inputs Amount (Level 1) (Level 2) (Level 3) December 31, 2021: Financial Assets: Cash and cash equivalents $ 21,851,786 $ 21,851,786 $ — $ — Loans held for sale 8,121,375 — 8,316,473 — Loans, net of allowance for loan losses 195,541,821 — — 193,058,440 Federal Home Loan Bank stock 4,149,300 — 4,149,300 — Interest receivable 577,002 — 577,002 — Federal Home Loan Bank lender risk account receivable 2,286,690 — — 2,413,880 Financial Liabilities: Deposits 204,453,561 121,315,806 83,215,894 — Advances from borrowers for taxes and insurance 1,808,971 — 1,808,971 — Interest payable 24 — 24 — December 31, 2020: Financial Assets: Cash and cash equivalents $ 32,347,806 $ 32,347,806 $ — $ — Interest-bearing time deposits 3,000,000 — 3,000,000 — Loans held for sale 13,345,370 — 13,690,802 — Loans, net of allowance for loan losses 166,667,918 — — 165,251,240 Federal Home Loan Bank stock 2,801,800 — 2,801,800 — Interest receivable 520,775 — 520,775 — Federal Home Loan Bank lender risk account receivable 1,947,271 — — 2,157,661 Financial Liabilities: Deposits 152,207,043 90,002,257 63,577,288 — Federal Home Loan Bank advances 38,412,000 — 39,718,400 — Advances from borrowers for taxes and insurance 1,946,340 — 1,946,340 — Interest payable 73,585 — 73,585 — |
Commitments and Credit Risk
Commitments and Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Credit Risk | |
Commitments and Credit Risk | Note 15: Commitments and Credit Risk Commitments to Originate Loans Commitments to originate loans 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 a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Forward sale commitments are commitments to sell groups of residential mortgage loans that the Company originates or purchases as part of its mortgage banking activities. The Company commits to sell the loans at specified prices in a future period. These commitments are acquired to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale since the Company is exposed to interest rate risk during the period between issuing a loan commitment and the sale of the loan into the secondary market. The dollar amount of commitments to fund fixed rate loans at December 31, 2021 and 2020 follows: December 31, December 31, 2021 2020 Interest Rate Interest Rate Amount Range Amount Range Commitments to fund fixed-rate loans $ 15,298,287 2.50% - 4.125 % $ 28,451,835 2.25% - 3.25 % Lines of Credit Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. Loan commitments outstanding at December 31, 2021 and 2020 were composed of the following: December 31, December 31, 2021 2020 Commitments to originate loans for portfolio $ 3,405,020 $ 189,200 Forward sale commitments 23,415,006 41,791,767 Lines of credit 20,881,558 19,826,038 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 16: Earnings Per Share Basic earnings per common share is computed based upon the weighted-average number of common shares outstanding during the period, less shares in the Company’s ESOP that are unallocated and not committed to be released. The computations are as follows for December 31, 2021 and 2020: Year ended December 31, 2021 2020 Net income $ 1,648,544 $ 3,155,721 Less allocation of net income to participating securities 31,242 28,869 Net income allocated to common shareholders 1,617,302 3,126,852 Shares outstanding for basic earnings per share: Weighted-average shares issued 3,007,615 2,970,211 Less: Average unearned ESOP shares and unvested restricted stock 265,727 220,522 Weighted-average shares outstanding - basic 2,741,888 2,749,689 Basic earnings per common share $ 0.59 $ 1.14 Effect of dilutive securities: Weighted-average shares outstanding - basic 2,741,888 2,749,689 Stock options 69,488 39,657 Weighted-average shares outstanding - diluted 2,811,376 2,789,346 Diluted earnings per share $ 0.58 $ 1.12 Options for 165,206 shares were not included in the calculation of diluted weighted-average shares outstanding for the year ended December 31, 2021, because the exercise prices were greater than the average market price of the shares. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Equity Incentive Plan | |
Equity Incentive Plan | Note 17: Equity Incentive Plan In May 2017, the Company’s stockholders approved the Cincinnati Bancorp 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan authorized the issuance or delivery to participants of up to 192,844 shares of the Company’s common stock pursuant to the grants of restricted stock awards, restricted stock unit awards, incentive stock options, and non-qualified stock options. Of this number, the maximum number of shares of Company common stock that may be issued under the 2017 Plan pursuant to the exercise of stock options is 137,746 (as adjusted) shares and the maximum number of shares of Company common stock that may be issued as restricted stock awards or restricted stock units is 55,098 (as adjusted) shares. Stock options awarded to employees may be incentive stock options or non-qualified stock options. Shares subject to award under the 2017 Plan may be authorized but unissued shares or treasury shares. The 2017 Plan contains annual and lifetime limits on certain types of awards to individual participants. In May 2021, the Company’s stockholders approved the Cincinnati Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan authorized the issuance or delivery to participants of up to 231,414 shares of the Company’s common stock pursuant to the grants of restricted stock awards, restricted stock unit awards, incentive stock options, and non-qualified stock options. Of this number, the maximum number of shares of Company common stock that may be issued under the 2021 Plan pursuant to the exercise of stock options is 165,296 shares and the maximum number of shares of Company common stock that may be issued as restricted stock awards or restricted stock units is 66,118 shares. Stock options awarded to employees may be incentive stock options or non-qualified stock options. Shares subject to award under the 2021 Plan may be authorized but unissued shares or treasury shares. The 2021 Plan contains annual and lifetime limits on certain types of awards to individual participants. Awards may vest or become exercisable only upon the achievement of performance measures or based solely on the passage of time after award. Stock options and restricted stock awards provide for accelerated vesting if there is a change in control (as defined in the 2017 and 2021 Plans). The fair value of each option award is estimated on the date of the grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of the options granted represents the period of time that options are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. 2021 Volatility 20 % Weighted-average volatility 20 % Expected dividends — Expected term (in years) 10 Risk-free rate 1.62 % Activity in the stock option plans was as follows for the years ended December 31, 2021 and 2020: Weighted-Average Remaining Aggregate Weighted-Average Contractual Term Intrinsic Shares Exercise Price (Years) Value December 31, 2021: Outstanding, beginning of year 134,328 $ 6.34 6.87 $ 698,506 Granted 166,608 $ 13.93 Exercised (3,304) $ 5.84 Forfeited (1,290) $ 6.94 Outstanding, end of year 296,342 $ 10.64 7.90 $ 1,144,637 Exercisable, end of year 92,895 $ 6.06 5.67 $ 784,036 Weighted-Average Remaining Aggregate Weighted-Average Contractual Term Intrinsic Shares Exercise Price (Years) Value December 31, 2020 Outstanding, beginning of period 126,634 $ 6.07 7.66 $ 528,573 Granted 11,000 $ 9.38 Exercised — — Forfeited (3,306) $ 5.84 Outstanding, end of period 134,328 $ 6.34 6.87 $ 698,506 Exercisable, end of period 70,726 $ 5.92 6.56 $ 397,480 In June 2017, the Company awarded 55,098 (as adjusted) restricted shares to members of the Board of Directors and certain members of management. The restricted stock awards have a five year vesting period. Shares of restricted stock granted to employees under the 2017 Plan are subject to vesting based on continuous employment for a specified time period following the date of grant. During the restricted period, the holder is entitled to full voting rights and dividends, thus are considered participating securities. On May 20, 2021, the Company awarded 17,000 restricted shares to members of the Board of Directors under the 2021 Plan. On June 9, 2021, the Company awarded 49,000 restricted shares to certain members of management. The restricted stock awards have a five year vesting period. A summary of the status of the Company’s nonvested shares as of December 31, 2021, and changes during the period then ended, is presented below: Shares Weighted average grant-date fair value Nonvested, beginning of period 22,482 $ 6.31 Granted 66,000 13.94 Vested (10,843) 6.03 Forfeited — — Nonvested, end of period 77,639 $ 12.83 Total compensation expense recognized in the income statement for share-based payment arrangements was $306,716 and $110,416 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, there was approximately $1,547,600 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 4.3 years. |
Multiemployer Defined Benefit P
Multiemployer Defined Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Multiemployer Defined Benefit Plan | |
Multiemployer Defined Benefit Plan | Note 18: Multiemployer Defined Benefit Plan In connection with the acquisition of Kentucky Federal Savings and Loan Association, Cincinnati Federal is now part of a multiple-employer pension plan that is considered a multiemployer plan for accounting purposes. The Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan) is a tax-qualified defined benefit plan. The Pentegra DB Plan’s Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan operates as a multiemployer plan for accounting purposes and as a multiple –employer plan under the Employee Retirement Income Security Act of 1974 The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan contributions made by a participating employer may be used to provide benefits of other participating employers. If Cincinnati Federal chooses to stop participating in this plan, it may be required to pay an amount based on the underfunded status of the plan, referred to as the withdrawal liability. Effective June 30, 2016, participation in the plan was frozen. The funded status (market value divided by funding target) of the plan at June 30, 2021 and 2020 was 88.66% and 85.68%, respectively. Total contributions made to the Pentegra DB Plan, as reported on Form 5500, equal $253,198,886 and $138,321,604 for the plan years ended June 30, 2020 and June 30, 2019. Cincinnati Federal’s contribution to the Pentegra DB Plan for the fiscal year ending December 31, 2021 are not more than 5% of the total contributions to the Pentegra DB Plan for the plan year ended June 30, 2020. Accounting Standards Update 2011-09 requires the use of the most recently available annual return (Form 5500) to determine if an employer’s contributions represent more than 5% of total contributions to the Pentegra DB Plan. The 2019 Form 5500 is the most recently available annual report. The Schedule SB contains the total contributions to the Pentegra DB Plan for the year ending June 30, 2020. Cincinnati Federal’s contributions to the plan were $70,769 and $107,772 for the years ending December 31, 2021 and 2020, respectively. Employer Company FIP/RP Status Plan Identification Contributions Pending/ Expiration of Collective Name Number 2021 2020 Implemented Bargaining Agreement Pentegra Defined Benefit Plan for Financial Institutions 13-5645888/333 $ 70,769 $ 107,772 No Not applicable |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 19: Recent Accounting Pronouncements FASB ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for public business entities that are U.S. Securities and Exchange Commission (SEC) filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For SEC filers that are Smaller Reporting Companies, all other public business entities, and other non-public entities, the amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from these amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. The Company continues to collect and retain historical loan and credit data. The Company is in the process of identifying data gaps. Certain CECL models are currently being evaluated. The Audit Committee is informed of ongoing CECL developments. For additional information on the allowance for loan losses, see Notes 1 and 3. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information (Parent Company Only) | |
Condensed Financial Information (Parent Company Only) | Note 20: Condensed Financial Information (Parent Company Only) Presented below is condensed financial information as to the financial position, results of operations and cash flows of the Company: Condensed Balance Sheet 2021 2020 Assets Cash and due from banks $ 5,671,762 $ 6,449,777 Investment in bank subsidiary 36,860,287 34,676,167 Other assets 367,669 378,027 Total assets $ 42,899,718 $ 41,503,971 Stockholders’ Equity 42,899,718 41,503,971 Total stockholders' equity $ 42,899,718 $ 41,503,971 Condensed Statements of Income and Comprehensive Income 2021 2020 Dividend Income $ — $ — Other noninterest expenses 342,982 316,466 Total noninterest expense 342,982 316,466 Income (loss) before federal income tax benefits and equity in undistributed income of the subsidiary (342,982) (316,466) Federal income tax benefits 72,027 66,456 Equity in undistributed income of subsidiary 1,919,499 3,405,731 Net Income $ 1,648,544 $ 3,155,721 Comprehensive Income $ 1,606,255 $ 3,154,696 Condensed Statement of Cash Flows 2021 2020 Operating Activities Net Income $ 1,648,544 $ 3,155,721 Items not requiring (providing) cash Equity in undistributed income of subsidiary (1,919,499) (3,405,731) Increase (decrease) in cash due to changes in: Accrued expenses and other assets 10,363 (152,505) Net cash (used in) operating activities (260,592) (402,515) Investing Activities Repayment on ESOP note 141,374 — Proceeds from second step stock issuance downstreamed to bank — (7,667,532) Net cash provided by (used in) investing activities 141,374 (7,667,532) Financing Activities Repurchase of common stock (678,092) — Issuance of common stock 19,295 14,060,646 Net cash provided by (used in) financing activities (658,797) 14,060,646 Net change in cash and due from banks (778,015) 5,990,599 Cash and due from banks at beginning of year 6,449,777 459,178 Cash and due from banks at end of year $ 5,671,762 $ 6,449,777 |
Impact of COVID-19 on Cincinnat
Impact of COVID-19 on Cincinnati Bancorp, Inc. | 12 Months Ended |
Dec. 31, 2021 | |
Impact of COVID-19 on Cincinnati Bancorp, Inc. | |
Impact of COVID-19 on Cincinnati Bancorp, Inc | Note 21: Impact of COVID-19 on Cincinnati Bancorp, Inc. In March 2020, the COVID-19 coronavirus was identified as a global pandemic and began affecting the health of large populations around the world. As a result of the spread of COVID-19, economic uncertainties arose which can ultimately affect the financial position, results of operations and cash flows of the Company as well as the Company’s customers. In response to economic concerns over COVID-19, in March 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed into law by Congress. The CARES Act included relief for individual Americans, health care workers, small businesses and certain industries hit hard by the COVID-19 pandemic. The 2021 Consolidated Appropriations Act, passed by Congress in December 2020, extended certain provisions of the CARES Act affecting the Company into 2021. The CARES Act included several provisions designed to help financial institutions like the Company in working with their customers. Section 4013 of the CARES Act, as extended until January 1, 2022, allows a financial institution to elect to suspend generally accepted accounting principles and regulatory determinations with respect to qualifying loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (TDR). The Company has taken advantage of this provision to extend certain payment modifications to loan customers in need. As of December 31, 2021, the Company had no loans that were modified under the CARES Act guidance, that remain on modified terms. The Company modified other loans under the guidance that have since returned to normal repayment status as of December 31, 2021. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Cincinnati Bancorp (“Bancorp”), the predecessor to Cincinnati Bancorp, Inc. (“Company”), was the mid-tier holding company for Cincinnati Federal (the “Bank”), a federally chartered stock savings and loan association that is primarily engaged in providing a full range of banking and financial services to individual and corporate customers. Our business operations are conducted in the larger Greater Cincinnati/Northern Kentucky metropolitan area which includes Hamilton, Warren, Butler and Clermont Counties in Ohio, Boone, Kenton and Campbell Counties in Kentucky, and Dearborn County, Indiana. On October 14, 2015, the Bank had reorganized into the mutual holding company structure. As part of the reorganization, the Bancorp sold 773,663 shares of common stock at a price of $10.00 per share in a public offering and issued 945,587 shares of common stock to CF Mutual Holding Company, the Bancorp's parent mutual holding company. On December 20, 2019, the Bancorp's shareholders approved a plan of conversion and reorganization, whereby CF Mutual Holding Company and Cincinnati Bancorp would convert and reorganize from the mutual holding company structure to the stock holding company structure. The conversion and reorganization were completed effective January 22, 2020, whereby the Company, a Maryland corporation and successor to the Bancorp, sold a total of 1,652,960 shares of common stock at a price of $10.00 per share in the subscription offering, which included 132,237 shares sold to Cincinnati Federal's Employee Stock Ownership Plan, and issued 1,322,665 shares of common stock in exchange for the outstanding shares of common stock of the Bancorp owned by stockholders other than CF Mutual Holding Company. The exchange ratio for previously held shares of Cincinnati Bancorp was 1.6351 as applied in the conversion offering. References herein to the “Company” include Cincinnati Bancorp, Inc. and Cincinnati Bancorp before completion of the conversion. The Company is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. |
Revenue Recognition | Revenue Recognition The Company accounts for revenues in accordance with accounting guidance that provides that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Interest income, net securities gains (losses), gains from the sale of mortgage loans and earnings on bank-owned life insurance are not covered under ASC 606 and are recognized as contractually earned. For other revenue streams including service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All of the Company’s revenue from contracts with customers is recognized within other noninterest income. Service charges on deposit accounts: Interchange income: |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include Cincinnati Bancorp, Inc. and its wholly-owned subsidiary, Cincinnati Federal, together referred to as “the Company.” All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the 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 relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights and fair values of financial instruments. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2021 and 2020, cash equivalents consisted primarily of due from accounts with the Federal Reserve, Federal Home Loan Bank of Cincinnati and other correspondent banks. From time to time, the Company’s interest-bearing cash accounts may exceed the FDIC’s insured limit of $250,000 per account. At December 31, 2021, the Company held $1,812,000 in various correspondent banks. At December 31, 2021, the Company held $11,233,000 at the Federal Reserve Bank and Federal Home Loan Bank which are not subject to FDIC limits. Management considers the risk of loss to be low based on the quality of the institutions where the funds are maintained. |
Interest-bearing Time Deposits in Banks | Interest-bearing Time Deposits in Banks Interest-bearing deposits in banks are carried at cost. D ebt Securities Available-for- sale debt securities are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost, when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Debt Securities | D ebt Securities |
Loans Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income. Direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six consecutive months. Loans acquired at the effective date of a merger are recorded at fair value with no carryover of the acquired entity’s previously established allowance for loan losses. The excess of expected cash flows over the estimated fair value of the acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses. Subsequent improvements in expected cash flows result in the recognition of additional interest income over the remaining contractual lives of the loans. Management estimates the cash flows expected to be collected at acquisition using a third-party risk model, which incorporates the estimate of key assumptions, such as default rates and prepayment speeds. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. 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 allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. 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, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with the borrower’s current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings commence. The Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy that any restructured loans on nonaccrual prior to being restructured remain on nonaccrual status until six consecutive months of satisfactory borrower performance, at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regards to determination of the amount of the allowance for credit losses, TDRs are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. On March 27, 2020, the president of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (“the CARES Act”), which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP. Section 4013 of the CARES Act allows financial institutions to suspend application of certain TDR accounting guidance for loan and lease modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. Section 4013 of the CARES Act was amended on December 27, 2020, to extend this relief until January 1, 2022. The relief can be applied to loan and lease modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan and lease modifications that defer or delay the payment of principal or interest, or change the interest rate on a loan. The Company chose to apply this relief to eligible loan and lease modifications. |
Lender Reserve Account | Lender Reserve Account Certain loan sale transactions with the Federal Home Loan Bank of Cincinnati (FHLB) provide for the establishment of a Lender Reserve Account (LRA). The LRA consists of amounts withheld from loan sale proceeds by the FHLB for absorbing inherent losses that are probable on those sold loans. These withheld funds are an asset to the Company as they are scheduled to be paid to the Company in future years, net of any credit losses on those loans sold. The receivables are initially measured at fair value. The fair value is estimated by discounting the cash flows over the life of each master commitment contract. The accretable yield is amortized over the life of the master commitment contract. Expected cash flows are re-evaluated at each measurement date. If there is an adverse change in expected cash flows, the accretable yield would be adjusted on a prospective basis and the asset evaluated for impairment. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost, less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 15-40 years Equipment 3-5 years |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at par and evaluated for impairment. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less estimated costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less estimated costs to sell. Net revenue and expenses from operations and changes in the valuation allowance are included in noninterest expense from foreclosed assets. There were no valuation allowances established during 2021 or 2020. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50 Transfers and Servicing Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing rights and may result in a reduction or addition to noninterest income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Derivatives | Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For nonexchange-traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. |
Derivative Loan Commitments | Derivative Loan Commitments Mortgage loan commitments that relate to the origination of a mortgage that will be held for sale upon funding are considered derivative instruments under the derivatives and hedging accounting guidance (ASC 815, Derivatives and Hedging |
Forward Loan Sale Commitments | Forward Loan Sale Commitments The Company carefully evaluates all loan sale agreements to determine whether they meet the definition of a derivative under the derivatives and hedging accounting guidance (ASC 815), as facts and circumstances may differ significantly. If agreements qualify, to protect against the price risk inherent in derivative loan commitments, the Company uses both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Accordingly, forward loan sale commitments are recognized at fair value on the consolidated balance sheet in other assets and liabilities with changes in their fair values recorded in other noninterest income. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments. |
Employee Stock Ownership Plan ("ESOP") | Employee Stock Ownership Plan (“ESOP”) The cost of unearned ESOP shares is shown as a reduction of stockholders’ equity. Compensation expense is based on the average fair value of shares as they are committed to be released to participant accounts and the shares become outstanding for earnings per share computations. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares are used to reduce annual ESOP debt service. As of December 31, 2021, 47,018 shares have been released to eligible participants in the ESOP and 10,285 shares have been allocated to eligible participants. (See Note 12 – Employee and Director Benefits ). |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. If necessary, the Company recognizes interest and penalties on income taxes as a component of income tax expense. With a few exceptions, the Company is no longer subject to examinations by tax authorities for years before 2018. As of December 31, 2021 and 2020, the Company had no uncertain tax positions. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized gains (losses) on available-for-sale securities and changes in the funded status of the directors’ retirement plan. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) allocated to common shareholders is calculated using the two-class method and is computed by dividing net income allocated to common shareholders by the weighted-average number of common shares outstanding during the period. The two-class method is an earnings allocation formula that determines the EPS for each class of common stock and participating securities according to dividends distributed and participation rights in undistributed earnings. Diluted EPS is adjusted for dilutive effects of stock-based compensation and is calculated using the two-class method or treasury method. The average number of common shares outstanding is increased to include the number of shares that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period, as well as for any adjustment to income that would result from the assumed issuance. Unallocated common shares held by the Company’s ESOP are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted earnings per share calculations until they are committed to be released. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Schedule of Premises and Equipment | Buildings and improvements 15-40 years Equipment 3-5 years |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Securities | |
Schedule of available-for-sale debt securities | The amortized cost and approximate fair values, together with gross unrealized gains and losses, of debt securities are as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Debt Securities: December 31, 2021: Mortgage-backed securities of government sponsored entities $ 7,844,180 $ 49,809 $ (2,757) $ 7,891,232 December 31, 2020: Mortgage-backed securities of government sponsored entities $ 5,170,519 $ 46,278 $ (2,967) $ 5,213,830 |
Schedule of fair value and gross unrealized losses | The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021 and 2020: Less than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2021: Mortgage-backed securities of government sponsored entities $ 12,977 $ (48) $ 113,030 $ (2,709) $ 126,007 $ (2,757) December 31, 2020: Mortgage-backed securities of government sponsored entities $ 51,122 $ (617) $ 141,465 $ (2,350) $ 192,587 $ (2,967) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Loan Losses | |
Schedule of categories of loans | Categories of loans at December 31, 2021 and 2020 include: December 31, December 31, 2021 2020 One to four family mortgage loans - owner occupied $ 70,336,846 $ 72,697,588 One to four family - investment 10,361,388 12,058,824 Multi-family mortgage loans 55,029,111 41,749,223 Nonresidential mortgage loans 41,761,964 29,531,917 Construction and land loans 19,425,025 5,841,415 Real estate secured lines of credit 11,403,262 9,934,387 Commercial loans 299,851 736,979 Other consumer loans 348,386 338,709 Total loans 208,965,833 172,889,042 Less: Net deferred loan costs (404,884) (332,908) Undisbursed portion of loans 12,156,351 4,881,487 Allowance for loan losses 1,672,545 1,672,545 Net loans $ 195,541,821 $ 166,667,918 |
Schedule of allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2021 and December 31, 2020: At or For the Year Ended December 31, 2021 One- to Four- Family Mortgage One- to Four- Construction & Real Estate Loans Owner Family Mortgage Multi-Family Nonresidential Land Secured Lines of Commercial Other Consumer Occupied Loans Investment Mortgage Loans Mortgage Loans Loans Credit Loans Loans Total Allowance for loan loans: Balance, beginning of year $ 416,404 $ 99,978 $ 670,822 $ 316,332 $ 96,435 $ 49,336 $ 17,111 $ 6,127 $ 1,672,545 Provision (credit) charged to expense (131,324) (48,215) 20,797 19,768 182,393 (20,586) (16,924) (5,909) — (Charge-offs) recoveries — — — — — — — — — Balance, end of year $ 285,080 $ 51,763 $ 691,619 $ 336,100 $ 278,828 $ 28,750 $ 187 $ 218 $ 1,672,545 Ending balance: Individually evaluated for impairment $ 18,924 $ 40,075 $ — $ — $ — $ — $ — $ — $ 58,999 Ending balance: Collectively evaluated for impairment $ 266,156 $ 11,688 $ 691,619 $ 336,100 $ 278,828 $ 28,750 $ 187 $ 218 $ 1,613,546 Loans: Ending balance $ 70,336,846 $ 10,361,388 $ 55,029,111 $ 41,761,964 $ 19,425,025 $ 11,403,262 $ 299,851 $ 348,386 $ 208,965,833 Ending balance: Individually evaluated for impairment $ 1,154,343 $ 433,153 $ 126,451 $ — $ — $ 54,881 $ — $ — $ 1,768,828 Ending balance: Collectively evaluated for impairment $ 69,182,503 $ 9,928,235 $ 54,902,660 $ 41,761,964 $ 19,425,025 $ 11,348,381 $ 299,851 $ 348,386 $ 207,197,005 At or For the Year Ended December 31, 2020 One- to Four- Family Mortgage One- to Four- Construction & Real Estate Loans Owner Family Mortgage Multi-Family Nonresidential Land Secured Lines of Commercial Other Consumer Occupied Loans Investment Mortgage Loans Mortgage Loans Loans Credit Loans Loans Total Allowance for loan loans: Balance, beginning of year $ 324,647 $ 82,219 $ 524,183 $ 277,026 $ 69,457 $ 105,187 $ 11,408 $ 13,418 $ 1,407,545 Provision (credit) charged to expense 91,757 17,759 146,639 39,306 26,978 (55,851) 5,703 (7,291) 265,000 (Charge-offs) recoveries — — — — — — — — — Balance, end of year $ 416,404 $ 99,978 $ 670,822 $ 316,332 $ 96,435 $ 49,336 $ 17,111 $ 6,127 $ 1,672,545 Ending balance: Individually evaluated for impairment $ 20,722 $ 40,075 $ — $ — $ — $ — $ — $ — $ 60,797 Ending balance: Collectively evaluated for impairment $ 395,682 $ 59,903 $ 670,822 $ 316,332 $ 96,435 $ 49,336 $ 17,111 $ 6,127 $ 1,611,748 Loans: Ending balance $ 72,697,588 $ 12,058,824 $ 41,749,223 $ 29,531,917 $ 5,841,415 $ 9,934,387 $ 736,979 $ 338,709 $ 172,889,042 Ending balance: Individually evaluated for impairment $ 1,236,597 $ 561,660 $ 210,524 $ — $ — $ 58,557 $ — $ — $ 2,067,338 Ending balance: Collectively evaluated for impairment $ 71,460,991 $ 11,497,164 $ 41,538,699 $ 29,531,917 $ 5,841,415 $ 9,875,830 $ 736,979 $ 338,709 $ 170,821,704 |
Schedule of credit risk profile of the Company's loan portfolio based on internal rating category and payment activity | The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2021 and 2020: December 31, 2021 One- to Four- One- to Four- Family Mortgage Family Mortgage Real Estate Loans - Owner Loans - Multi-Family Nonresidential Construction & Secured Lines of Commercial Other Consumer Occupied Investment Mortgage Loans Mortgage Loans Land Loans Credit Loans Loans Total Pass $ 69,644,317 $ 10,283,060 $ 55,029,111 $ 41,761,964 $ 19,425,025 $ 11,348,381 $ 299,851 $ 348,386 $ 208,140,095 Special mention 106,561 78,328 — — — — — — 184,889 Substandard 585,968 — — — — 54,881 — — 640,849 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 70,336,846 $ 10,361,388 $ 55,029,111 $ 41,761,964 $ 19,425,025 $ 11,403,262 $ 299,851 $ 348,386 $ 208,965,833 December 31, 2020 One- to Four- One- to Four- Family Mortgage Family Mortgage Real Estate Loans - Owner Loans - Multi-Family Nonresidential Construction & Secured Lines of Commercial Other Consumer Occupied Investment Mortgage Loans Mortgage Loans Land Loans Credit Loans Loans Total Pass $ 71,930,902 $ 11,538,993 $ 41,669,892 $ 29,063,783 $ 5,841,415 $ 9,783,448 $ 736,979 $ 338,709 $ 170,904,121 Special mention 113,516 519,831 — 468,134 — — — — 1,101,481 Substandard 653,170 — 79,331 — — 150,939 — — 883,440 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 72,697,588 $ 12,058,824 $ 41,749,223 $ 29,531,917 $ 5,841,415 $ 9,934,387 $ 736,979 $ 338,709 $ 172,889,042 |
Schedule of loan portfolio aging analysis of the recorded investment in loans | The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2021 and 2020: December 31, 2021 90 Days and Total Loans > 90 30-59 Days 60-89 Days Past Greater Total Loans Days Past Due Past Due Due Past Due Total Past Due Current Receivable & Accruing One to four-family mortgage loans $ 61,602 $ 34,645 $ 120,170 $ 216,417 $ 70,120,429 $ 70,336,846 $ — One to four family - investment — — — — $ 10,361,388 10,361,388 — Multi-family mortgage loans — — — — $ 55,029,111 55,029,111 — Nonresidential mortgage loans — — — — $ 41,761,964 41,761,964 — Construction & land loans — — — — $ 19,425,025 19,425,025 — Real estate secured lines of credit — — — — $ 11,403,262 11,403,262 — Commercial loans — — — — $ 299,851 299,851 — Other consumer loans — — — — 348,386 348,386 — Total $ 61,602 $ 34,645 $ 120,170 $ 216,417 $ 208,749,416 $ 208,965,833 $ — December 31, 2020 90 Days and Total Loans > 90 30-59 Days 60-89 Days Past Greater Past Total Loans Days Past Due Past Due Due Due Total Past Due Current Receivable & Accruing One to four-family mortgage loans $ 96,826 $ 127,616 $ 173,877 $ 398,319 $ 72,299,269 $ 72,697,588 $ — One to four family - investment — — — — 12,058,824 12,058,824 — Multi-family mortgage loans — — — — 41,749,223 41,749,223 — Nonresidential mortgage loans — — — — 29,531,917 29,531,917 — Construction & land loans — — — — 5,841,415 5,841,415 — Real estate secured lines of credit — — — — 9,934,387 9,934,387 — Commercial loans — — — — 736,979 736,979 — Other consumer loans — — — — 338,709 338,709 — Total $ 96,826 $ 127,616 $ 173,877 $ 398,319 $ 172,490,723 $ 172,889,042 $ — |
Schedule of impaired loans | The following tables present impaired loans at and for the years ended December 31, 2021 and 2020: December 31, 2021 Unpaid Recorded Principal Specific Average Investment Interest Income Balance Balance Allowance in Impaired Loans Recognized Loans without a specific valuation allowance One- to four-family mortgage loans $ 1,148,015 $ 1,148,015 $ — $ 1,162,455 $ 49,247 One- to four-family - investment 231,387 231,387 — 266,054 11,559 Multi-family mortgage loans 126,451 126,451 — 128,666 5,806 Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit 54,881 54,881 — 56,694 3,967 Commercial loans — — — — — Other consumer loans — — — — — Loans with a specific valuation allowance One- to four-family mortgage loans 6,328 25,252 18,924 26,031 920 One- to four-family - investment 201,766 241,841 40,075 245,350 10,422 Multi-family mortgage loans — — — — — Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit — — — — — Commercial loans — — — — — Other consumer loans — — — — — $ 1,768,828 $ 1,827,827 $ 58,999 $ 1,885,250 $ 81,921 December 31, 2020 Unpaid Recorded Principal Specific Average Investment Interest Income Balance Balance Allowance in Impaired Loans Recognized Loans without a specific valuation allowance One- to four-family mortgage loans $ 1,177,459 $ 1,177,459 $ — $ 1,190,698 $ 52,684 One- to four-family - investment 352,514 352,514 — 362,021 19,387 Multi-family mortgage loans 210,524 210,524 — 330,855 22,817 Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit 58,557 58,557 — 60,115 4,087 Commercial loans — — — — — Other consumer loans — — — — — Loans with a specific valuation allowance One- to four-family mortgage loans 59,138 79,860 20,722 80,701 1,689 One- to four-family - investment 209,146 249,221 40,075 252,341 11,794 Multi-family mortgage loans — — — — — Nonresidential mortgage loans — — — — — Construction & land loans — — — — — Real estate secured lines of credit — — — — — Commercial loans — — — — — Other consumer loans — — — — — $ 2,067,338 $ 2,128,135 $ 60,797 $ 2,276,731 $ 112,458 |
Schedule of nonaccrual loans | The following table presents the Company’s nonaccrual loans at December 31, 2021 and 2020. This table excludes accruing TDRs, which totaled $990,000 and $1,143,000 at December 31, 2021 and 2020, respectively. December 31, December 31, 2021 2020 One- to four-family mortgage loans $ 120,170 $ 173,877 One to four family - investment — — Multi-family mortgage loans — — Nonresidential mortgage loans — — Construction and land loans — — Real estate secured lines of credit — — Commercial loans — — Other consumer loans — — Total $ 120,170 $ 173,877 |
Schedule of Troubled Debt Restructurings | The following table presents the newly classified TDRs at December 31, 2020: December 31, 2020 Pre- Modification Number of Recorded Post-Modification Loans Balance Recorded Balance Mortgage loans on real estate: Residential 1-4 family - owner occupied 1 $ 82,561 $ 82,561 Residential 1-4 family - investment — — — Multifamily — — — Nonresidential mortgage loans — — — Construction & land loans — — — Construction & land loans — — — Real estate secured lines of credit — — — Commercial loans — — — Consumer loans — — — 1 $ 82,561 $ 82,561 Newly restructured loans by type of modification are as follows at December 31, 2020: December 31, 2020 Total Interest Only Term Combination Modification Mortgage loans on real estate: Residential 1-4 family - owner occupied $ 82,561 $ — $ — $ 82,561 Residential 1-4 family -investment — — — — Multifamily — — — — Nonresidential mortgage loans — — — — Construction & land loans — — — — Real estate secured lines of credit — — — — Commercial loans — — — — Consumer loans — — — — $ 82,561 $ — $ — $ 82,561 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Schedule of Premises and Equipment | 2021 2020 Land $ 720,971 $ 720,971 Buildings and improvements 4,808,309 4,649,005 Furniture and equipment 1,206,942 1,131,050 6,736,222 6,501,026 Less accumulated depreciation (3,247,400) (3,013,200) Net premises and equipment $ 3,488,822 $ 3,487,826 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loan Servicing | |
Schedule of Servicing Assets at Fair Value | The following summarizes the activity in mortgage servicing rights measured using the fair value method for the years ended December 31, 2021 and 2020: 2021 2020 Fair value as of the beginning of the period $ 2,025,323 $ 1,213,815 Recognition of mortgage servicing rights on the sale of loans 941,129 1,460,328 Change in fair value due to changes in valuation inputs or assumptions used in the valuation model and loan payments received on loan balances (735,701) (648,820) Fair value at the end of the period $ 2,230,751 $ 2,025,323 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Time Deposits | |
Schedule of Maturities of Time Deposits | At December 31, 2021 and 2020, the scheduled maturities of time deposits were as follows: 2021 2020 One year or less $ 31,068,958 $ 35,131,024 Over one year to two years 23,491,368 14,359,679 Over two years to three years 19,101,494 5,507,330 Over three years to four years 7,365,269 4,077,670 Over four years to five years 1,904,092 2,922,656 Thereafter 206,574 206,427 $ 83,137,755 $ 62,204,786 |
Schedule of Interest Expense | Interest expense during the years ended December 31, 2021 and 2020 for each major category of deposits was as follows: 2021 2020 Deposit Type: Savings $ 112,374 $ 115,409 Interest Bearing Demand 45,575 61,269 Certificates of Deposit 870,571 1,477,240 Total Deposit Interest Expense $ 1,028,520 $ 1,653,918 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes includes these components for the years ended December 31, 2021 and 2020. 2021 2020 Taxes currently payable $ 245,843 $ 768,496 Deferred income taxes 202,338 51,470 Income tax expense $ 448,181 $ 819,966 |
Schedule of Effective Income Tax Rate Reconciliation | 2021 2020 Computed at the statutory rate $ 440,312 $ 834,894 Increase (decrease) resulting from: Bank-owned life insurance (17,658) (18,027) Other 25,527 3,099 Actual tax expense $ 448,181 $ 819,966 |
Schedule Of Statutory Income Tax And Effective Tax Rate | A reconciliation between the statutory income tax and the Company’s effective rate follows: 2021 2020 Computed at the statutory rate 21.00 % 21.00 % Increase (decrease) resulting from: Bank-owned life insurance (0.84) % (0.45) % Other 1.22 % 0.07 % Effective tax rate 21.38 % 20.62 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences related to deferred taxes shown on the balance sheets at December 31, 2021 and 2020 were: 2021 2020 Deferred tax assets Allowance for loan losses $ 338,304 $ 333,573 Loans held for sale 39,718 72,541 Operating lease right of use liability 29,564 37,879 Directors’ Retirement Plan 146,222 126,323 Net operating loss 171,197 178,467 Other 2,117 43,562 727,122 792,345 Deferred tax liabilities Deferred loan costs (85,026) (69,911) Prepaid penalties on FHLB advances — — Dividends on FHLB stock (332,211) (332,211) Mortgage servicing rights (468,458) (425,318) FHLB lender risk account receivable (480,205) (408,927) Depreciation (261,251) (248,975) Operating lease right of use asset (29,564) (37,879) Unrealized gains on available-for-sale securities (9,881) (9,095) Fair value mortgage banking derivative net assets (25,250) (74,266) Other (106,719) (72,416) (1,798,565) (1,678,998) Valuation allowance (19,322) (19,322) Net deferred tax liability $ (1,090,765) $ (905,975) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss. | |
Schedule of components of other comprehensive loss net of tax including in stockholders' equity | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: December 31, December 31, 2021 2020 Net unrealized gains on available for sale securities $ 37,171 $ 43,311 Directors’ retirement plan (432,667) (413,407) (395,496) (370,096) Tax benefit (61,193) (78,082) Net of tax amount $ (334,303) $ (292,014) |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Schedule of actual capital amounts and ratios | The Bank’s actual and required capital amounts and ratios are presented in the following table: Minimum to Be Well Capitalized Under Minimum Capital Prompt Corrective Actual Requirement Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2021: Total risk-based capital (to risk-weighted assets) $ 38,714 20.0 % $ 15,474 8.0 % $ 19,343 10.0 % Tier I capital (to risk-weighted assets) 37,041 19.2 % 11,606 6.0 % 15,474 8.0 % Common Equity Tier I capital (to risk-weighted assets) 37,041 19.2 % 8,704 4.5 % 12,573 6.5 % Tier I capital (to adjusted average total assets) 37,041 14.7 % 10,106 4.0 % 12,633 5.0 % As of December 31, 2020: Total risk-based capital (to risk-weighted assets) $ 36,465 22.0 % $ 13,272 8.0 % $ 16,590 10.0 % Tier I capital (to risk-weighted assets) 34,792 21.0 % 9,954 6.0 % 13,272 8.0 % Common Equity Tier I capital (to risk-weighted assets) 34,792 21.0 % 7,465 4.5 % 10,783 6.5 % Tier I capital (to adjusted average total assets) 34,792 14.8 % 9,415 4.0 % 11,769 5.0 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Schedule of Related Party Transactions | At December 31, 2021 and 2020, the Company had loans outstanding to executive officers, directors and their affiliates (related parties). Annual activity consisted of the following: 2021 2020 Beginning balance $ 761,280 $ 821,388 New loans — — Repayments 163,225 60,108 Ending balances $ 598,055 $ 761,280 |
Employee and Director Benefits
Employee and Director Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee and Director Benefits | |
Schedule of Employee Stock Ownership Plan (ESOP) | A summary of the ESOP shares as of December 31, 2021 and 2020 are as follows: December 31, December 31, 2021 2020 Shares released to participants 47,018 36,733 Shares allocated to participants 10,285 10,285 Unreleased shares 184,922 195,207 Total 242,225 242,225 Fair value of unreleased shares $ 2,681,369 $ 2,252,689 |
Schedule of Information About Plan's Funded Status | The Company uses a December 31 measurement date for the plan. Information about the plan’s funded status and pension cost follows: 2021 2020 Change in benefit obligation: Beginning of year $ 612,884 $ 559,295 Service cost 14,312 12,389 Interest cost 15,564 18,860 Loss/(gain) — 97,340 Service cost adjustment 68,535 — Benefits paid (15,000) (75,000) End of year $ 696,295 $ 612,884 |
Schedule of Amounts Recognized in Accumulated Other Comprehensive loss Not Yet Recognized | Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of: 2021 2020 Prior service cost $ 25,280 $ 25,280 Net loss $ 18,567 $ 13,522 |
Schedule of Net Periodic Benefit Cost | The estimated prior service credit for the plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is approximately $16,456. 2021 2020 Components of net periodic benefit cost: Service cost $ 14,312 $ 12,389 Interest Cost 15,564 18,860 (Gain)/loss recognized 18,567 8,866 Prior service cost 25,280 25,280 $ 73,723 $ 65,395 |
Schedule of Retiree Accrued Liability | The retiree accrued liability expected to be reversed from the plan as of December 31, 2021 and December 31, 2020 is as follows: 2021 2020 One year or less $ 15,000 $ 15,000 Over one year to two years 15,000 15,000 Over two years to three years 15,000 15,000 Over three years to four years 15,000 15,000 Over four years to five years 15,000 15,000 Thereafter 180,000 165,000 $ 255,000 $ 240,000 |
Schedule of Significant Assumptions for the Benefit Plan Liability | Significant assumptions for the benefit plan liability include the following as of December 31, 2021 and 2020: 2021 2020 Weighted average assumptions used to determine benefit cost obligation: Discount Rate 2.32 % 3.08 % |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosures About Fair Value of Assets and Liabilities | |
Schedule of fair value assets measured on recurring basis | The following tables present the fair value measurements of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2021 and 2020: Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) December 31, 2021: Mortgage-backed securities of government sponsored entities $ 7,891,232 $ — $ 7,891,232 $ — Mortgage servicing rights 2,230,751 — — 2,230,751 Interest rate lock commitments (included in other assets) 60,441 — 60,441 Interest rate lock commitments (included in other liabilities) (7,640) — — (7,640) Forward sale commitments (included in other assets) 90,814 — 90,814 — Forward sale commitments (included in other liabilities) (23,378) — (23,378) — December 31, 2020: Mortgage-backed securities of government sponsored entities $ 5,213,830 $ — $ 5,213,830 $ — Mortgage servicing rights 2,025,323 — — 2,025,323 Interest rate lock commitments (included in other assets) 498,644 — — 498,644 Interest rate lock commitments (included in other liabilities) — — — — Forward sale commitments (included in other assets) — — — — Forward sale commitments (included in other liabilities) (144,995) — (144,995) — |
Derivative Financial Instruments | Notional Asset Liability Amount Derivatives Derivatives December 31, 2021 Interest rate lock commitments $ 8,725,795 $ 60,441 $ 7,640 Forward sale commitments 16,842,514 90,814 23,378 $ 25,568,309 $ 151,255 $ 31,018 Notional Asset Liability Amount Derivatives Derivatives December 31, 2020 Interest rate lock commitments $ 19,613,510 $ 498,644 $ — Forward sale commitments 32,953,442 — 144,995 $ 52,566,952 $ 498,644 $ 144,995 Income (loss) related to derivative financial instruments included in noninterest income in the accompanying consolidated statements of income for the year ended December 31, 2021 is as follows: 2021 2020 Interest rate lock commitments $ (445,842) $ 498,644 Forward sale commitments 212,430 (144,995) Unrealized gains (losses) recognized in earnings $ (233,412) $ 353,649 |
Schedule of collateral-dependent impaired loans at fair value on a nonrecurring | The following table presents the fair value of assets measured at fair value on a nonrecurring basis and the level of hierarchy in which the fair value measurements fall at December 31, 2021 and 2020: Fair Value Measurements Using Quoted Prices in Active Markets Significant for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) December 31, 2021: Collateral-dependent impaired loans $ 120,170 $ — $ — $ 120,170 December 31, 2020 Collateral-dependent impaired loans $ 173,877 $ — $ — $ 173,877 |
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2021 and 2020: Valuation Unobservable Range Fair Value Technique Inputs (Weighted Average) December 31, 2021: Mortgage servicing rights $ 2,230,751 Discounted cash flow Discount rate PSA prepayment speeds 10% Interest rate lock and mandatory commitments (assets) $ 151,255 Secondary market prices Pull-through rate (70%-100%) 80% Interest rate lock and mandatory commitments (liabilities) $ (31,018) Secondary market prices Pull-through rate (70%-100%) 80% Impaired loans (collateral dependent) $ 120,170 Market comparable properties Marketability discount (10%-15%) 12% December 31, 2020: Mortgage servicing rights $ 2,025,323 Discounted cash flow Discount rate PSA prepayment speeds 10% (177%-565%) 296% Interest rate lock and mandatory commitments $ 498,644 Secondary market prices Pull-through rate (70%-100%) 85% Interest rate lock and mandatory commitments (liabilities) $ (144,995) Secondary market prices Pull-through rate (70%-100%) 85% Impaired loans (collateral dependent) $ 173,877 Market comparable properties Marketability discount (10%-15% ) |
Schedule of fair values of the company's financial instruments | The following table presents estimated fair values of the Company’s financial instruments carried at cost at December 31, 2021 and 2020: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Instruments Inputs Inputs Amount (Level 1) (Level 2) (Level 3) December 31, 2021: Financial Assets: Cash and cash equivalents $ 21,851,786 $ 21,851,786 $ — $ — Loans held for sale 8,121,375 — 8,316,473 — Loans, net of allowance for loan losses 195,541,821 — — 193,058,440 Federal Home Loan Bank stock 4,149,300 — 4,149,300 — Interest receivable 577,002 — 577,002 — Federal Home Loan Bank lender risk account receivable 2,286,690 — — 2,413,880 Financial Liabilities: Deposits 204,453,561 121,315,806 83,215,894 — Advances from borrowers for taxes and insurance 1,808,971 — 1,808,971 — Interest payable 24 — 24 — December 31, 2020: Financial Assets: Cash and cash equivalents $ 32,347,806 $ 32,347,806 $ — $ — Interest-bearing time deposits 3,000,000 — 3,000,000 — Loans held for sale 13,345,370 — 13,690,802 — Loans, net of allowance for loan losses 166,667,918 — — 165,251,240 Federal Home Loan Bank stock 2,801,800 — 2,801,800 — Interest receivable 520,775 — 520,775 — Federal Home Loan Bank lender risk account receivable 1,947,271 — — 2,157,661 Financial Liabilities: Deposits 152,207,043 90,002,257 63,577,288 — Federal Home Loan Bank advances 38,412,000 — 39,718,400 — Advances from borrowers for taxes and insurance 1,946,340 — 1,946,340 — Interest payable 73,585 — 73,585 — |
Commitments and Credit Risk (Ta
Commitments and Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Credit Risk | |
Schedule of commitments to fund fixed rate loans | The dollar amount of commitments to fund fixed rate loans at December 31, 2021 and 2020 follows: December 31, December 31, 2021 2020 Interest Rate Interest Rate Amount Range Amount Range Commitments to fund fixed-rate loans $ 15,298,287 2.50% - 4.125 % $ 28,451,835 2.25% - 3.25 % |
Schedule of loan commitments outstanding | Loan commitments outstanding at December 31, 2021 and 2020 were composed of the following: December 31, December 31, 2021 2020 Commitments to originate loans for portfolio $ 3,405,020 $ 189,200 Forward sale commitments 23,415,006 41,791,767 Lines of credit 20,881,558 19,826,038 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Schedule of weighted average number of shares | Year ended December 31, 2021 2020 Net income $ 1,648,544 $ 3,155,721 Less allocation of net income to participating securities 31,242 28,869 Net income allocated to common shareholders 1,617,302 3,126,852 Shares outstanding for basic earnings per share: Weighted-average shares issued 3,007,615 2,970,211 Less: Average unearned ESOP shares and unvested restricted stock 265,727 220,522 Weighted-average shares outstanding - basic 2,741,888 2,749,689 Basic earnings per common share $ 0.59 $ 1.14 Effect of dilutive securities: Weighted-average shares outstanding - basic 2,741,888 2,749,689 Stock options 69,488 39,657 Weighted-average shares outstanding - diluted 2,811,376 2,789,346 Diluted earnings per share $ 0.58 $ 1.12 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Incentive Plan | |
Schedule of assumptions made in estimated grant date fair value of stock options | 2021 Volatility 20 % Weighted-average volatility 20 % Expected dividends — Expected term (in years) 10 Risk-free rate 1.62 % |
Schedule of activity in the stock option plan | Activity in the stock option plans was as follows for the years ended December 31, 2021 and 2020: Weighted-Average Remaining Aggregate Weighted-Average Contractual Term Intrinsic Shares Exercise Price (Years) Value December 31, 2021: Outstanding, beginning of year 134,328 $ 6.34 6.87 $ 698,506 Granted 166,608 $ 13.93 Exercised (3,304) $ 5.84 Forfeited (1,290) $ 6.94 Outstanding, end of year 296,342 $ 10.64 7.90 $ 1,144,637 Exercisable, end of year 92,895 $ 6.06 5.67 $ 784,036 Weighted-Average Remaining Aggregate Weighted-Average Contractual Term Intrinsic Shares Exercise Price (Years) Value December 31, 2020 Outstanding, beginning of period 126,634 $ 6.07 7.66 $ 528,573 Granted 11,000 $ 9.38 Exercised — — Forfeited (3,306) $ 5.84 Outstanding, end of period 134,328 $ 6.34 6.87 $ 698,506 Exercisable, end of period 70,726 $ 5.92 6.56 $ 397,480 |
Schedule of status of the nonvested shares at period end and changes during the period | Shares Weighted average grant-date fair value Nonvested, beginning of period 22,482 $ 6.31 Granted 66,000 13.94 Vested (10,843) 6.03 Forfeited — — Nonvested, end of period 77,639 $ 12.83 |
Multiemployer Defined Benefit_2
Multiemployer Defined Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Multiemployer Defined Benefit Plan | |
Schedule of Federal's Contributions | Employer Company FIP/RP Status Plan Identification Contributions Pending/ Expiration of Collective Name Number 2021 2020 Implemented Bargaining Agreement Pentegra Defined Benefit Plan for Financial Institutions 13-5645888/333 $ 70,769 $ 107,772 No Not applicable |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information (Parent Company Only) | |
Schedule of Condensed Financial Statements (Parent Company Only) | Condensed Balance Sheet 2021 2020 Assets Cash and due from banks $ 5,671,762 $ 6,449,777 Investment in bank subsidiary 36,860,287 34,676,167 Other assets 367,669 378,027 Total assets $ 42,899,718 $ 41,503,971 Stockholders’ Equity 42,899,718 41,503,971 Total stockholders' equity $ 42,899,718 $ 41,503,971 2021 2020 Dividend Income $ — $ — Other noninterest expenses 342,982 316,466 Total noninterest expense 342,982 316,466 Income (loss) before federal income tax benefits and equity in undistributed income of the subsidiary (342,982) (316,466) Federal income tax benefits 72,027 66,456 Equity in undistributed income of subsidiary 1,919,499 3,405,731 Net Income $ 1,648,544 $ 3,155,721 Comprehensive Income $ 1,606,255 $ 3,154,696 2021 2020 Operating Activities Net Income $ 1,648,544 $ 3,155,721 Items not requiring (providing) cash Equity in undistributed income of subsidiary (1,919,499) (3,405,731) Increase (decrease) in cash due to changes in: Accrued expenses and other assets 10,363 (152,505) Net cash (used in) operating activities (260,592) (402,515) Investing Activities Repayment on ESOP note 141,374 — Proceeds from second step stock issuance downstreamed to bank — (7,667,532) Net cash provided by (used in) investing activities 141,374 (7,667,532) Financing Activities Repurchase of common stock (678,092) — Issuance of common stock 19,295 14,060,646 Net cash provided by (used in) financing activities (658,797) 14,060,646 Net change in cash and due from banks (778,015) 5,990,599 Cash and due from banks at beginning of year 6,449,777 459,178 Cash and due from banks at end of year $ 5,671,762 $ 6,449,777 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) | Jan. 22, 2020$ / sharesshares | Oct. 14, 2015$ / sharesshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020shares |
Nature of Operations and Summary of Significant Accounting Policies | ||||
Issuance of common stock (in shares) | 1,652,960 | 1,652,960 | ||
Share Price | $ / shares | $ 10 | $ 10 | ||
Cash, FDIC Insured Amount | $ | $ 250,000 | |||
Shares released to participants | 47,018 | 36,733 | ||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 10,285 | 10,285 | ||
Shares under Employee Stock Ownership Plan | 132,237 | 67,397 | 132,237 | |
Issuance of stock in exchange for outstanding shares | 1,322,665 | |||
Exchange ratio | 1.6351 | |||
Cash accounts held at Federal Reserve Bank and Federal Home Loan Bank not subject to FDIC limits | $ | $ 11,233,000 | |||
Cash accounts held in various correspondent banks | $ | $ 1,812,000 | |||
Building and Improvementss | Minimum | ||||
Nature of Operations and Summary of Significant Accounting Policies | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Building and Improvementss | Maximum | ||||
Nature of Operations and Summary of Significant Accounting Policies | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Equipment [Member] | Minimum | ||||
Nature of Operations and Summary of Significant Accounting Policies | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Equipment [Member] | Maximum | ||||
Nature of Operations and Summary of Significant Accounting Policies | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
IPO [Member] | ||||
Nature of Operations and Summary of Significant Accounting Policies | ||||
Issuance of common stock (in shares) | 773,663 | |||
CF Mutual Company Holding [Member] | IPO [Member] | ||||
Nature of Operations and Summary of Significant Accounting Policies | ||||
Issuance of common stock (in shares) | 945,587 |
Debt Securities - Amortized cos
Debt Securities - Amortized cost and gross unrealized gains and losses (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Debt Securities | ||
Fair Value | $ 7,891,232 | $ 5,213,830 |
Mortgage-backed Securities of Government Sponsored Entities [Member] | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 7,844,180 | 5,170,519 |
Gross Unrealized Gains | 49,809 | 46,278 |
Gross Unrealized Losses | (2,757) | (2,967) |
Fair Value | $ 7,891,232 | $ 5,213,830 |
Debt Securities - Continuous un
Debt Securities - Continuous unrealized loss position (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Debt Securities | ||
Total Fair Value | $ 126,007 | $ 192,587 |
Mortgage-backed Securities of Government Sponsored Entities [Member] | ||
Schedule of Available-for-sale Debt Securities | ||
Less than 12 Months Fair Value | 12,977 | 51,122 |
Less than 12 Months Unrealized Losses | (48) | (617) |
12 Months or More Fair Value | 113,030 | 141,465 |
12 Months or More Unrealized Losses | (2,709) | (2,350) |
Total Fair Value | 126,007 | 192,587 |
Total Unrealized Losses | $ (2,757) | $ (2,967) |
Debt Securities - Additional In
Debt Securities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amortized Cost and Fair Value Debt Securities | ||
Total fair value | $ 126,007 | $ 192,587 |
Percentage of total investment portfolio fair value | 1.60% | 3.70% |
Proceeds from maturities of available-for-sale debt securities | $ 0 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Categories (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 208,965,833 | $ 172,889,042 | |
Net deferred loan costs | (404,884) | (332,908) | |
Undisbursed portion of loans | 12,156,351 | 4,881,487 | |
Allowance for loan losses | 1,672,545 | 1,672,545 | $ 1,407,545 |
Net loans | 195,541,821 | 166,667,918 | |
Non Residential mortgage loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 41,761,964 | 29,531,917 | |
Allowance for loan losses | 336,100 | 316,332 | 277,026 |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 299,851 | 736,979 | |
Allowance for loan losses | 187 | 17,111 | 11,408 |
Other Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 348,386 | 338,709 | |
Allowance for loan losses | 218 | 6,127 | 13,418 |
One- to Four- Family Mortgage Loans Owner Occupied [Member] | Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 70,336,846 | 72,697,588 | |
Allowance for loan losses | 285,080 | 416,404 | 324,647 |
One To Four Family Investment Mortgage Loans [Member] | Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 10,361,388 | 12,058,824 | |
Allowance for loan losses | 51,763 | 99,978 | 82,219 |
Multi-Family Mortgage Loans [Member] | Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 55,029,111 | 41,749,223 | |
Allowance for loan losses | 691,619 | 670,822 | 524,183 |
Construction & Land Loans [Member] | Nonresidential Mortgage Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 19,425,025 | 5,841,415 | |
Allowance for loan losses | 278,828 | 96,435 | 69,457 |
Real Estate Secured Lines of Credit [Member] | Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 11,403,262 | 9,934,387 | |
Allowance for loan losses | $ 28,750 | $ 49,336 | $ 105,187 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Allowance for loan losses activity and recorded investment in loan by segment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for loan losses: | ||
Balance, beginning of year | $ 1,672,545 | $ 1,407,545 |
Provision (credit) charged to expense | 265,000 | |
Balance, end of year | 1,672,545 | 1,672,545 |
Ending balance: Individually evaluated for impairment | 58,999 | 60,797 |
Ending balance: Collectively evaluated for impairment | 1,613,546 | 1,611,748 |
Loans: | ||
Ending balance | 208,965,833 | 172,889,042 |
Ending balance: Individually evaluated for impairment | 1,768,828 | 2,067,338 |
Ending balance: Collectively evaluated for impairment | 207,197,005 | 170,821,704 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 416,404 | 324,647 |
Provision (credit) charged to expense | (131,324) | 91,757 |
Balance, end of year | 285,080 | 416,404 |
Ending balance: Individually evaluated for impairment | 18,924 | 20,722 |
Ending balance: Collectively evaluated for impairment | 266,156 | 395,682 |
Loans: | ||
Ending balance | 70,336,846 | 72,697,588 |
Ending balance: Individually evaluated for impairment | 1,154,343 | 1,236,597 |
Ending balance: Collectively evaluated for impairment | 69,182,503 | 71,460,991 |
Residential Portfolio Segment [Member] | One To Four Family Investment Mortgage Loans [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 99,978 | 82,219 |
Provision (credit) charged to expense | (48,215) | 17,759 |
Balance, end of year | 51,763 | 99,978 |
Ending balance: Individually evaluated for impairment | 40,075 | 40,075 |
Ending balance: Collectively evaluated for impairment | 11,688 | 59,903 |
Loans: | ||
Ending balance | 10,361,388 | 12,058,824 |
Ending balance: Individually evaluated for impairment | 433,153 | 561,660 |
Ending balance: Collectively evaluated for impairment | 9,928,235 | 11,497,164 |
Residential Portfolio Segment [Member] | Multi-Family Mortgage Loans [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 670,822 | 524,183 |
Provision (credit) charged to expense | 20,797 | 146,639 |
Balance, end of year | 691,619 | 670,822 |
Ending balance: Collectively evaluated for impairment | 691,619 | 670,822 |
Loans: | ||
Ending balance | 55,029,111 | 41,749,223 |
Ending balance: Individually evaluated for impairment | 126,451 | 210,524 |
Ending balance: Collectively evaluated for impairment | 54,902,660 | 41,538,699 |
Residential Portfolio Segment [Member] | Real Estate Secured Lines of Credit [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 49,336 | 105,187 |
Provision (credit) charged to expense | (20,586) | (55,851) |
Balance, end of year | 28,750 | 49,336 |
Ending balance: Collectively evaluated for impairment | 28,750 | 49,336 |
Loans: | ||
Ending balance | 11,403,262 | 9,934,387 |
Ending balance: Individually evaluated for impairment | 54,881 | 58,557 |
Ending balance: Collectively evaluated for impairment | 11,348,381 | 9,875,830 |
Non Residential mortgage loans [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 316,332 | 277,026 |
Provision (credit) charged to expense | 19,768 | 39,306 |
Balance, end of year | 336,100 | 316,332 |
Ending balance: Collectively evaluated for impairment | 336,100 | 316,332 |
Loans: | ||
Ending balance | 41,761,964 | 29,531,917 |
Ending balance: Collectively evaluated for impairment | 41,761,964 | 29,531,917 |
Nonresidential Mortgage Loans [Member] | Construction & Land Loans [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 96,435 | 69,457 |
Provision (credit) charged to expense | 182,393 | 26,978 |
Balance, end of year | 278,828 | 96,435 |
Ending balance: Collectively evaluated for impairment | 278,828 | 96,435 |
Loans: | ||
Ending balance | 19,425,025 | 5,841,415 |
Ending balance: Collectively evaluated for impairment | 19,425,025 | 5,841,415 |
Commercial Loans [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 17,111 | 11,408 |
Provision (credit) charged to expense | (16,924) | 5,703 |
Balance, end of year | 187 | 17,111 |
Ending balance: Collectively evaluated for impairment | 187 | 17,111 |
Loans: | ||
Ending balance | 299,851 | 736,979 |
Ending balance: Collectively evaluated for impairment | 299,851 | 736,979 |
Other Consumer Loans [Member] | ||
Allowance for loan losses: | ||
Balance, beginning of year | 6,127 | 13,418 |
Provision (credit) charged to expense | (5,909) | (7,291) |
Balance, end of year | 218 | 6,127 |
Ending balance: Collectively evaluated for impairment | 218 | 6,127 |
Loans: | ||
Ending balance | 348,386 | 338,709 |
Ending balance: Collectively evaluated for impairment | $ 348,386 | $ 338,709 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Credit risk profile (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 208,965,833 | $ 172,889,042 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 208,140,095 | 170,904,121 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 184,889 | 1,101,481 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 640,849 | 883,440 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 70,336,846 | 72,697,588 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 69,644,317 | 71,930,902 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 106,561 | 113,516 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 585,968 | 653,170 |
Residential Portfolio Segment [Member] | One To Four Family Investment Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,361,388 | 12,058,824 |
Residential Portfolio Segment [Member] | One To Four Family Investment Mortgage Loans [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,283,060 | 11,538,993 |
Residential Portfolio Segment [Member] | One To Four Family Investment Mortgage Loans [Member] | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 78,328 | 519,831 |
Residential Portfolio Segment [Member] | Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 55,029,111 | 41,749,223 |
Residential Portfolio Segment [Member] | Multi-Family Mortgage Loans [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 55,029,111 | 41,669,892 |
Residential Portfolio Segment [Member] | Multi-Family Mortgage Loans [Member] | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 79,331 | |
Residential Portfolio Segment [Member] | Real Estate Secured Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,403,262 | 9,934,387 |
Residential Portfolio Segment [Member] | Real Estate Secured Lines of Credit [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,348,381 | 9,783,448 |
Residential Portfolio Segment [Member] | Real Estate Secured Lines of Credit [Member] | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 54,881 | 150,939 |
Non Residential mortgage loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 41,761,964 | 29,531,917 |
Non Residential mortgage loans [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 41,761,964 | 29,063,783 |
Non Residential mortgage loans [Member] | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 468,134 | |
Nonresidential Mortgage Loans [Member] | Construction & Land Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,425,025 | 5,841,415 |
Nonresidential Mortgage Loans [Member] | Construction & Land Loans [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,425,025 | 5,841,415 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 299,851 | 736,979 |
Commercial Loans [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 299,851 | 736,979 |
Other Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 348,386 | 338,709 |
Other Consumer Loans [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 348,386 | $ 338,709 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Aging analysis (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | $ 208,965,833 | $ 172,889,042 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 61,602 | 96,826 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 34,645 | 127,616 |
Financing Receivables, Equal to 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 120,170 | 173,877 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 216,417 | 398,319 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 208,749,416 | 172,490,723 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 70,336,846 | 72,697,588 |
Residential Portfolio Segment [Member] | One To Four Family Investment Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 10,361,388 | 12,058,824 |
Residential Portfolio Segment [Member] | Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 55,029,111 | 41,749,223 |
Residential Portfolio Segment [Member] | Real Estate Secured Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 11,403,262 | 9,934,387 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 61,602 | 96,826 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 34,645 | 127,616 |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to 90 Days and Greater Past Due | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 120,170 | 173,877 |
Residential Portfolio Segment [Member] | Total Past Due | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 216,417 | 398,319 |
Residential Portfolio Segment [Member] | Current | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 70,120,429 | 72,299,269 |
Residential Portfolio Segment [Member] | Current | One To Four Family Investment Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 10,361,388 | 12,058,824 |
Residential Portfolio Segment [Member] | Current | Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 55,029,111 | 41,749,223 |
Residential Portfolio Segment [Member] | Current | Real Estate Secured Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 11,403,262 | 9,934,387 |
Non Residential mortgage loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 41,761,964 | 29,531,917 |
Non Residential mortgage loans [Member] | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 41,761,964 | 29,531,917 |
Nonresidential Mortgage Loans [Member] | Construction & Land Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 19,425,025 | 5,841,415 |
Nonresidential Mortgage Loans [Member] | Current | Construction & Land Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 19,425,025 | 5,841,415 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 299,851 | 736,979 |
Commercial Loans [Member] | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | 299,851 | 736,979 |
Other Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 348,386 | 338,709 |
Other Consumer Loans [Member] | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Current | $ 348,386 | $ 338,709 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Loans with a specific valuation allowance, Specific Allowance | $ 58,999 | $ 60,797 |
Recorded Balance | 1,768,828 | 2,067,338 |
Unpaid Principal Balance | 1,827,827 | 2,128,135 |
Average Investment in Impaired Loans | 1,885,250 | 2,276,731 |
Interest Income Recognized | 81,921 | 112,458 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 1,148,015 | 1,177,459 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 1,148,015 | 1,177,459 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 1,162,455 | 1,190,698 |
Loans without a specific valuation allowance, Interest Income Recognized | 49,247 | 52,684 |
Loans with a specific valuation allowance, Recorded Balance | 6,328 | 59,138 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 25,252 | 79,860 |
Loans with a specific valuation allowance, Specific Allowance | 18,924 | 20,722 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 26,031 | 80,701 |
Loans with a specific valuation allowance, Interest Income Recognized | 920 | 1,689 |
Residential Portfolio Segment [Member] | One To Four Family Investment Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 231,387 | 352,514 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 231,387 | 352,514 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 266,054 | 362,021 |
Loans without a specific valuation allowance, Interest Income Recognized | 11,559 | 19,387 |
Loans with a specific valuation allowance, Recorded Balance | 201,766 | 209,146 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 241,841 | 249,221 |
Loans with a specific valuation allowance, Specific Allowance | 40,075 | 40,075 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 245,350 | 252,341 |
Loans with a specific valuation allowance, Interest Income Recognized | 10,422 | 11,794 |
Residential Portfolio Segment [Member] | Multi-Family Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 126,451 | 210,524 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 126,451 | 210,524 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 128,666 | 330,855 |
Loans without a specific valuation allowance, Interest Income Recognized | 5,806 | 22,817 |
Residential Portfolio Segment [Member] | Real Estate Secured Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 54,881 | 58,557 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 54,881 | 58,557 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 56,694 | 60,115 |
Loans without a specific valuation allowance, Interest Income Recognized | $ 3,967 | $ 4,087 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Nonaccrual loans (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 120,170 | $ 173,877 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 120,170 | $ 173,877 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Newly classified TDRs (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of loans | Number | 1 |
Pre-Modification Balance | $ 82,561 |
Post-Modification Balance | 82,561 |
Financing Receivable Modifications Interest | 82,561 |
Financing Receivable, Modifications, Recorded Investment | $ 82,561 |
Residential Portfolio Segment [Member] | One- to Four- Family Mortgage Loans Owner Occupied [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of loans | Number | 1 |
Pre-Modification Balance | $ 82,561 |
Post-Modification Balance | 82,561 |
Financing Receivable Modifications Interest | 82,561 |
Financing Receivable, Modifications, Recorded Investment | $ 82,561 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans excluding TDRs | $ 990,000 | $ 1,143,000 |
Foreclosed real estate properties | 0 | 0 |
Consumer mortgage loan in process of foreclosure | $ 65,500 | |
Number of TDRs | 1 | |
Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans on accrual status | $ 864,000 | |
Entity Loan Modification Program [Member] | Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans on accrual status | 932,000 | |
Entity Loan Modification Program [Member] | Multi Family And Nonresidential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans on accrual status | $ 126,000 | $ 211,000 |
Premises and Equipment - Classi
Premises and Equipment - Classification of premises and equipment (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment, Gross | $ 6,736,222 | $ 6,501,026 |
Less accumulated depreciation | (3,247,400) | (3,013,200) |
Net premises and equipment | 3,488,822 | 3,487,826 |
Land | ||
Property, Plant and Equipment, Gross | 720,971 | 720,971 |
Building and Improvementss | ||
Property, Plant and Equipment, Gross | 4,808,309 | 4,649,005 |
Furniture and Equipment | ||
Property, Plant and Equipment, Gross | $ 1,206,942 | $ 1,131,050 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Premises and Equipment | ||
Depreciation expense | $ 234,201 | $ 220,756 |
Loan Servicing - Fair vale meth
Loan Servicing - Fair vale method (Details) - Mortgage Servicing Rights - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | ||
Fair value as of the beginning of the period | $ 2,025,323 | $ 1,213,815 |
Recognition of mortgage servicing rights on the sale of loans | 941,129 | 1,460,328 |
Change in fair value due to changes in valuation inputs or assumptions used in the valuation model and loan payments received on loan balances | 735,701 | 648,820 |
Fair value at the end of the period | $ 2,230,751 | $ 2,025,323 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contractually Specified Servicing Fees, Amount | $ 651,000 | $ 348,000 |
Fair Value, Concentration of Risk, Loans Receivable | 2,287,000 | 1,947,000 |
Receivables, Long-term Contracts or Programs | 16,800,000 | |
Investment in Federal Home Loan Bank Stock [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Lender Risk Account Funds | 4,092,000 | 3,437,000 |
Mortgage Loans Serviced For Others [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Receivables Held-for-sale, Amount, Total | $ 282,021,641 | $ 230,156,936 |
Time Deposits - Scheduled matur
Time Deposits - Scheduled maturities of time deposits (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Time Deposits | ||
One year or less | $ 31,068,958 | $ 35,131,024 |
Over one year to two years | 23,491,368 | 14,359,679 |
Over two years to three years | 19,101,494 | 5,507,330 |
Over three years to four years | 7,365,269 | 4,077,670 |
Over four years to five years | 1,904,092 | 2,922,656 |
Thereafter | 206,574 | 206,427 |
Time Deposits, Total | $ 83,137,755 | $ 62,204,786 |
Time Deposits - Category of dep
Time Deposits - Category of deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Time Deposits | ||
Savings | $ 112,374 | $ 115,409 |
Interest-Bearing demand | 45,575 | 61,269 |
Certificates of Deposit | 870,571 | 1,477,240 |
Total Deposit Interest Expense | $ 1,028,520 | $ 1,653,918 |
Time Deposits - Additional Info
Time Deposits - Additional Information (Details - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Time Deposits | ||
Time Deposits 250000 Or More | $ 7.6 | $ 2.6 |
Certificates of deposit had been obtained through the National CD Rateline program | $ 40.9 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 89,916,000 | $ 91,040,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Repayment and Penalties | 766,671 | |
Long-term Federal Home Loan Bank Advances | 38,412,000 | |
Federal Home Loan Bank Advances Related to letter of credit | 25,000,000 | |
Repayment of Federal Home Loan Bank advances | 250,912,000 | $ 22,763,152 |
Federal Reserve Bank Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 0 | |
Additional Line of Credit Borrowing Capacity | 11,500,000 | |
Repayment of Federal Home Loan Bank advances | 38,400,000 | |
Prepaid Penalties | 766,671 | |
FHLB-Cincinnati | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Additional Line of Credit Borrowing Capacity | $ 44,700,000 |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Taxes currently payable | $ 245,843 | $ 768,496 |
Deferred income taxes | 202,338 | 51,470 |
Income tax expense | $ 448,181 | $ 819,966 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of actual income tax expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Computed at the statutory rate | $ 440,312 | $ 834,894 |
Increase (decrease) resulting from: | ||
Bank-owned life insurance | (17,658) | (18,027) |
Other | 25,527 | 3,099 |
Actual tax expense | $ 448,181 | $ 819,966 |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between statutory income tax and company's effective tax rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Computed at the statutory rate | 21.00% | 21.00% |
Bank-owned life insurance | (0.84%) | (0.45%) |
Other | 1.22% | 0.07% |
Effective tax rate | 21.38% | 20.62% |
Income Taxes - Tax effects of t
Income Taxes - Tax effects of temporary differences related to deferred taxes (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Allowance for loan losses | $ 338,304 | $ 333,573 |
Loans held for sale | 39,718 | 72,541 |
Operating lease right of use assets | 29,564 | 37,879 |
Directors' Retirement Plan | 146,222 | 126,323 |
Net operating loss | 171,197 | 178,467 |
Other | 2,117 | 43,562 |
Deferred Tax Assets, Gross, Total | 727,122 | 792,345 |
Deferred tax liabilities | ||
Deferred loan costs | (85,026) | (69,911) |
Prepaid penalties on FHLB advances | 0 | 0 |
Dividends on FHLB stock | (332,211) | (332,211) |
Mortgage servicing rights | (468,458) | (425,318) |
FHLB lender risk account receivable | (480,205) | (408,927) |
Depreciation | (261,251) | (248,975) |
Operating lease right of use liabilities | (29,564) | (37,879) |
Unrealized gains on available-for-sale securities | (9,881) | (9,095) |
Fair value mortgage banking derivative net assets | (25,250) | (74,266) |
Other | (106,719) | (72,416) |
Deferred Tax Liabilities, Gross, Total | (1,798,565) | (1,678,998) |
Valuation allowance | (19,322) | (19,322) |
Net deferred tax liability | $ (1,090,765) | $ (905,975) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retained Earnings, Deferred Income Tax, Unrecognized | $ 766,000 | $ 766,000 |
Deferred Tax Liabilities, Tax Deferred Income | $ 160,900 | $ 160,900 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Income Tax Expense (Benefit) | $ 448,181 | $ 819,966 |
Net Operating Loss Carryforwards | 575,000 | |
Deferred Tax Assets, Valuation Allowance | 19,322 | $ 19,322 |
No Expiration [Member] | ||
Operating Loss Carryforwards | $ 240,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Loss. | ||
Net unrealized gains on available for sale securities | $ 37,171 | $ 43,311 |
Directors' retirement plan | (432,667) | (413,407) |
AOCI Including Portion Attributable to Noncontrolling Interest, before Tax | (395,496) | (370,096) |
Tax benefit | (61,193) | (78,082) |
Net of tax amount | $ (334,303) | $ (292,014) |
Regulatory Matters - Capital am
Regulatory Matters - Capital amounts and ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Total risk-based capital (to risk-weighted assets), Actual Amount | $ 38,714 | $ 36,465 |
Total risk-based capital (to risk-weighted assets), Actual Ratio | 20 | 22 |
Total risk-based capital (to risk-weighted assets), Minimum Capital Requirement Amount | $ 15,474 | $ 13,272 |
Total risk-based capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 8 | 8 |
Total risk-based capital (to risk-weighted assets), minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 19,343 | $ 16,590 |
Total risk-based capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10 | 10 |
Tier I capital (to risk-weighted assets), Actual Amount | $ 37,041 | $ 34,792 |
Tier I capital (to risk-weighted assets), Actual Ratio | 19.2 | 21 |
Tier I capital (to risk-weighted assets), Minimum Capital Requirement Amount | $ 11,606 | $ 9,954 |
Tier I capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 6 | 6 |
Tier I capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 15,474 | $ 13,272 |
Tier I capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8 | 8 |
Tier I capital (to adjusted average total assets), Actual Amount | $ 37,041 | $ 34,792 |
Tier I capital (to adjusted average total assets), Actual Ratio | 14.7 | 14.8 |
Tier I capital (to adjusted average total assets), Minimum Capital Requirement Amount | $ 10,106 | $ 9,415 |
Tier I capital (to adjusted average total assets), Minimum Capital Requirement Ratio | 4 | 4 |
Tier I capital (to adjusted average total assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 12,633 | $ 11,769 |
Tier I capital (to adjusted average total assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5 | 5 |
Common Stock | ||
Common Equity Tier I capital (to risk-weighted assets), Actual Amount | $ 37,041 | $ 34,792 |
Common Equity Tier I capital (to risk-weighted assets), Actual Ratio | 19.20% | 21.00% |
Common Equity Tier I capital (to risk-weighted assets), Minimum Capital Requirement Amount | $ 8,704 | $ 7,465 |
Common Equity Tier I capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Common Equity Tier I capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 12,573 | $ 10,783 |
Common Equity Tier I capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) | Dec. 31, 2021 |
Regulatory Matters | |
Capital Conservation Buffer, Percentage | 2.50% |
Related Party Transactions - An
Related Party Transactions - Annual activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||
Beginning balance | $ 761,280 | $ 821,388 |
New Loans | 0 | 0 |
Repayments | 163,225 | 60,108 |
Ending balances | $ 598,055 | $ 761,280 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions | ||
Related Party Deposit Liabilities | $ 3.1 | $ 3.1 |
Employee and Director Benefit_2
Employee and Director Benefits - Summary of ESOP (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Employee and Director Benefits | ||
Shares released to participants | 47,018 | 36,733 |
Shares allocated to participants | 10,285 | 10,285 |
Unreleased shares | 184,922 | 195,207 |
Total | 242,225 | 242,225 |
Fair Value of unreleased shares | $ 2,681,369 | $ 2,252,689 |
Employee and Director Benefit_3
Employee and Director Benefits - Plan's funded status and pension cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | ||
Beginning of year | $ 612,884 | $ 559,295 |
Service cost | 14,312 | 12,389 |
Interest cost | 15,564 | 18,860 |
Loss/(gain) | 97,340 | |
Service cost adjustment | 68,535 | |
Benefits paid | (15,000) | (75,000) |
End of year | $ 696,295 | $ 612,884 |
Employee and Director Benefit_4
Employee and Director Benefits - Amounts recognized in accumulated other comprehensive income not yet recognized (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Employee and Director Benefits | ||
Prior service cost | $ 25,280 | $ 25,280 |
Net loss | $ 18,567 | $ 13,522 |
Employee and Director Benefit_5
Employee and Director Benefits - Components of net periodic benefit cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Components of net periodic benefit cost: | ||
Service cost | $ 14,312 | $ 12,389 |
Interest Cost | 15,564 | 18,860 |
(Gain)/loss recognized | 18,567 | 8,866 |
Prior service cost | 25,280 | 25,280 |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | $ 73,723 | $ 65,395 |
Employee and Director Benefit_6
Employee and Director Benefits - Retiree accrued liability expected to be reversed (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Employee and Director Benefits | ||
One year or less | $ 15,000 | $ 15,000 |
Over one year to two years | 15,000 | 15,000 |
Over two years to three years | 15,000 | 15,000 |
Over three years to four years | 15,000 | 15,000 |
Over four years to five years | 15,000 | 15,000 |
Thereafter | 180,000 | 165,000 |
Defined Benefit Plan, Accrued Liability | $ 255,000 | $ 240,000 |
Employee and Director Benefit_7
Employee and Director Benefits - Significant assumptions for the benefit plan liability (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted average assumptions used to determine benefit cost obligation: | ||
Discount Rate | 2.32% | 3.08% |
Employee and Director Benefit_8
Employee and Director Benefits - Additional Information (Details) | Jan. 22, 2020USD ($)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) |
Defined Contribution Plan, Cost Recognized | $ 216,000 | $ 197,000 | ||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | shares | 132,237 | 67,397 | 132,237 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 141,573 | $ 97,048 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | shares | 184,922 | 195,207 | ||
Employee Stock Ownership Plan (ESOP), Fair Value of Shares Subject to Repurchase Obligation | $ 132,237 | |||
Exchange ratio | 1.6351 | |||
Defined Benefit Plan, Benefit Obligation | $ 696,295 | $ 612,884 | $ 559,295 | |
Percentage of common stock issued for ESOP | 8.00% | 3.92% | ||
Accumulated other comprehensive income for the next fiscal year | $ 16,456 | |||
Employee Stock Ownership Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||
Loan Repayment Period | 20 years |
Operating Lease Income - Additi
Operating Lease Income - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease Income | ||
Operating Leases, Income Statement, Lease Revenue, Total | $ 46,600 | $ 77,800 |
Operating lease, Renewal term | 5 years |
Disclosures About Fair Value _3
Disclosures About Fair Value of Assets and Liabilities - Measure on recurring basis (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | $ 151,255 | $ 498,644 | |
Derivative liabilities (included in other liabilities) | 31,018 | 144,995 | |
Mortgage Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage servicing rights | 2,230,751 | 2,025,323 | $ 1,213,815 |
Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | 60,441 | 498,644 | |
Derivative liabilities (included in other liabilities) | 7,640 | ||
Forward sale commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | 90,814 | ||
Derivative liabilities (included in other liabilities) | 23,378 | 144,995 | |
Fair Value, Measurements, Recurring | Mortgage-backed Securities of Government Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed securities of government sponsored entities | 7,891,232 | 5,213,830 | |
Fair Value, Measurements, Recurring | Mortgage Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage servicing rights | 2,230,751 | 2,025,323 | |
Fair Value, Measurements, Recurring | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | 60,441 | 498,644 | |
Derivative liabilities (included in other liabilities) | (7,640) | ||
Fair Value, Measurements, Recurring | Forward sale commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | 90,814 | ||
Derivative liabilities (included in other liabilities) | (23,378) | (144,995) | |
Level 2 | Fair Value, Measurements, Recurring | Mortgage-backed Securities of Government Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed securities of government sponsored entities | 7,891,232 | 5,213,830 | |
Level 2 | Fair Value, Measurements, Recurring | Forward sale commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | 90,814 | ||
Derivative liabilities (included in other liabilities) | (23,378) | (144,995) | |
Level 3 | Fair Value, Measurements, Recurring | Mortgage Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage servicing rights | 2,230,751 | 2,025,323 | |
Level 3 | Fair Value, Measurements, Recurring | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets (included in other assets) | 60,441 | $ 498,644 | |
Derivative liabilities (included in other liabilities) | $ (7,640) |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities - Derivative - Forward Sale Commitments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 25,568,309 | $ 52,566,952 |
Asset Derivatives | 151,255 | 498,644 |
Liability Derivatives | 31,018 | 144,995 |
Interest rate lock commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 8,725,795 | 19,613,510 |
Asset Derivatives | 60,441 | 498,644 |
Liability Derivatives | 7,640 | |
Forward sale commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 16,842,514 | 32,953,442 |
Asset Derivatives | 90,814 | |
Liability Derivatives | $ 23,378 | $ 144,995 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities - Income related to derivative financial instruments included in nominated income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gains (losses) recognized in earnings | $ (233,412) | $ 353,649 |
Interest rate lock commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gains (losses) recognized in earnings | (445,842) | 498,644 |
Forward sale commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gains (losses) recognized in earnings | $ 212,430 | $ (144,995) |
Disclosures About Fair Value _6
Disclosures About Fair Value of Assets and Liabilities - collateral-dependent impaired loans at fair value on a nonrecurring basis (Details) - Non recurring - Collateral-dependent impaired loans - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loan commitments | $ 120,170 | $ 173,877 |
Level 3 | Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loan commitments | $ 120,170 | $ 173,877 |
Disclosures About Fair Value _7
Disclosures About Fair Value of Assets and Liabilities - Level 3 (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Collateral-dependent impaired loans | Market Comparable | Market Based | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | $ 120,170 | $ 173,877 |
Mortgage Servicing Rights | Discounted Cash Flows | Prepayment Speeds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 10.00% | 10.00% |
Mortgage Servicing Rights | Discounted Cash Flows | Prepayment Speeds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | $ 2,230,751 | $ 2,025,323 |
Interest rate lock commitments | Secondary market prices | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | 498,644 | |
Interest rate lock commitments | Secondary market prices | Pull-through rate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | 151,255 | |
Liabilities, Fair Value | $ (31,018) | $ (144,995) |
Minimum | Collateral-dependent impaired loans | Market Comparable | Market Based | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 10.00% | 10.00% |
Minimum | Mortgage Servicing Rights | Discounted Cash Flows | Prepayment Speeds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 274.00% | 177.00% |
Minimum | Interest rate lock commitments | Secondary market prices | Pull-through rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Rate | 70 | 70 |
Liabilities, Rate | 70 | 70 |
Maximum | Collateral-dependent impaired loans | Market Comparable | Market Based | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 15.00% | 15.00% |
Maximum | Mortgage Servicing Rights | Discounted Cash Flows | Prepayment Speeds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 473.00% | 565.00% |
Maximum | Interest rate lock commitments | Secondary market prices | Pull-through rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Rate | 100 | 100 |
Liabilities, Rate | 100 | 100 |
Weighted Average | Collateral-dependent impaired loans | Market Comparable | Market Based | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 12.00% | 12.00% |
Weighted Average | Mortgage Servicing Rights | Discounted Cash Flows | Prepayment Speeds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Values Inputs Discount Rate | 341.00% | 296.00% |
Weighted Average | Interest rate lock commitments | Secondary market prices | Pull-through rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Rate | 80 | 85 |
Liabilities, Rate | 80 | 85 |
Disclosures About Fair Value _8
Disclosures About Fair Value of Assets and Liabilities - Fair values of financial instruments not previously presented (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 21,851,786 | $ 32,347,806 |
Interest-bearing time deposits | 3,000,000 | |
Loans held for sale | 8,121,375 | 13,345,370 |
Loans, net of allowance for loan losses | 195,541,821 | 166,667,918 |
Federal Home Loan Bank stock | 4,149,300 | 2,801,800 |
Interest receivable | 577,002 | 520,775 |
Federal Home Loan Bank lender risk account receivable | 2,286,690 | 1,947,271 |
Deposits | 204,453,561 | 152,207,043 |
Federal Home Loan Bank advances | 38,412,000 | |
Advances from borrowers for taxes and insurance | 1,808,971 | 1,946,340 |
Interest payable | 24 | 73,585 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 21,851,786 | 32,347,806 |
Level 1 | Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 121,315,806 | 90,002,257 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest-bearing time deposits | 3,000,000 | |
Loans held for sale | 8,316,473 | 13,690,802 |
Federal Home Loan Bank stock | 4,149,300 | 2,801,800 |
Level 2 | Accrued Interest Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivable | 577,002 | 520,775 |
Level 2 | Tax [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 1,808,971 | 1,946,340 |
Level 2 | Interest Payable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 24 | 73,585 |
Level 2 | Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 83,215,894 | 63,577,288 |
Level 2 | Federal Home Loan Bank Advances [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 39,718,400 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net of allowance for loan losses | 193,058,440 | 165,251,240 |
Level 3 | Federal Home Loan Bank [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivable | $ 2,413,880 | $ 2,157,661 |
Commitments and Credit Risk - C
Commitments and Credit Risk - Commitments to fund fixed rate loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Credit Risk | ||
Commitments to fund fixed-rate loans | $ 15,298,287 | $ 28,451,835 |
Commitments to fund fixed-rate loans, Minimum interest rate | 2.50% | 2.25% |
Commitments to fund fixed-rate loans, Maximum interest rate | 4.125% | 3.25% |
Commitments and Credit Risk- Li
Commitments and Credit Risk- Lines of credit (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to originate loans | ||
Other Commitments | ||
Loan Commitments outstanding | $ 3,405,020 | $ 189,200 |
Forward sale commitments | ||
Other Commitments | ||
Loan Commitments outstanding | 23,415,006 | 41,791,767 |
Lines of credit | ||
Other Commitments | ||
Loan Commitments outstanding | $ 20,881,558 | $ 19,826,038 |
Earnings Per Share - Stockholde
Earnings Per Share - Stockholders equity and are excluded from weighted-average (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share | ||
Net Income | $ 1,648,544 | $ 3,155,721 |
Less allocation of net income (loss) to participating securities | 31,242 | 28,869 |
Net income (loss) allocated to common shareholders | $ 1,617,302 | $ 3,126,852 |
Shares outstanding for basic earnings per share: | ||
Weighted-average shares issued | 3,007,615 | 2,970,211 |
Less: Average unearned ESOP shares and unvested restricted stock | 265,727 | 220,522 |
Weighted-average shares outstanding - basic | 2,741,888 | 2,749,689 |
Basic earnings (loss) per common share | $ 0.59 | $ 1.14 |
Effect of dilutive securities: | ||
Weighted-average shares outstanding - basic | 2,741,888 | 2,749,689 |
Stock options | 69,488 | 39,657 |
Weighted-average shares outstanding - diluted | 2,811,376 | 2,789,346 |
Diluted earnings (loss) per share | $ 0.58 | $ 1.12 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | Dec. 31, 2021shares |
Earnings Per Share | |
Stock options outstanding | 165,206 |
Equity Incentive Plan - Estimat
Equity Incentive Plan - Estimated grant date fair value of stock options (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Incentive Plan | |
Volatility | 20.00% |
Weighted-average volatility | 20.00% |
Expected term (in years) | 10 years |
Risk-free rate | 1.62% |
Equity Incentive Plan - Stock O
Equity Incentive Plan - Stock Option Plan (Details) - Stock Option - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning of period | 134,328 | 126,634 | |
Granted | 166,608 | 11,000 | |
Exercised | (3,304) | ||
Forfeited | (1,290) | (3,306) | |
Outstanding, end of period | 296,342 | 134,328 | 126,634 |
Exercisable, end of period | 92,895 | 70,726 | |
Weighted-Average Exercise Price Outstanding, beginning | $ 6.34 | $ 6.07 | |
Weighted average granted | 13.93 | 9.38 | |
Weighted Average Exercise Price per Option, Exercised | 5.84 | ||
Weighted Average Exercise Price per Option, Forfeited | 6.94 | 5.84 | |
Weighted Average Exercise Price Options, Outstanding end of period | 10.64 | 6.34 | $ 6.07 |
Weighted Average Exercise Price per Option, Exercisable at period end | $ 6.06 | $ 5.92 | |
Weighted Average Remaining Contractual Term, Options Outstanding | 7 years 10 months 24 days | 6 years 10 months 13 days | 7 years 7 months 28 days |
Weighted Average Remaining Contractual Term, Exercisable at end of period | 5 years 8 months 1 day | 6 years 6 months 21 days | |
Aggregate Intrinsic Value, Options Outstanding (in dollars) | $ 1,144,637 | $ 698,506 | $ 528,573 |
Aggregate Intrinsic Value, Options Exercisable at period end | $ 784,036 | $ 397,480 |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of status of nonvested shares (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares | |
Nonvested, beginning of period | shares | 22,482 |
Granted | shares | 66,000 |
Vested | shares | (10,843) |
Nonvested, end of period | shares | 77,639 |
Weighted average grant-date fair value | |
Nonvested, beginning of period | $ / shares | $ 6.31 |
Granted | $ / shares | 13.94 |
Vested | $ / shares | 6.03 |
Nonvested, end of period | $ / shares | $ 12.83 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) - USD ($) | Jun. 09, 2021 | May 20, 2021 | Jun. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2021 | May 31, 2017 |
Risk-free interest rate | 1.62% | ||||||
Expected volatility | 20.00% | ||||||
Expected term | 10 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 66,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,547,600 | ||||||
Share-based Compensation | $ 306,716 | $ 110,416 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years 3 months 18 days | ||||||
2017 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 192,844 | ||||||
2017 Equity Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 55,098 | ||||||
Vesting period | 5 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 55,098 | ||||||
2017 Equity Incentive Plan | Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 137,746 | ||||||
2021 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 231,414 | ||||||
2021 Equity Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 66,118 | ||||||
Vesting period | 5 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 49,000 | 17,000 | |||||
2021 Equity Incentive Plan | Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 165,296 |
Multiemployer Defined Benefit_3
Multiemployer Defined Benefit Plan - Federal's contributions to the plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Multiemployer Plan Number | 333 | |
Entity Tax Identification Number | 84-2848636 | |
Cincinnati Federal [Member] | ||
Multiemployer Plan, Contributions by Employer | $ 70,769 | $ 107,772 |
Multiemployer Defined Benefit_4
Multiemployer Defined Benefit Plan - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Multiemployer Defined Benefit Plan Funded Status | 88.66% | 85.68% | |||
Entity Tax Identification Number | 84-2848636 | ||||
Multiemployer Plan Number | 333 | ||||
Multiemployer Plans, Plan Contributions | $ 253,198,886 | $ 138,321,604 | |||
Description of Defined benefit Plan Employers Contribution to Total Contribution | not more than 5% of the total contributions to the Pentegra DB Plan | ||||
Accounting Standards Update 2011-09 [Member] | |||||
Description of Defined benefit Plan Employers Contribution to Total Contribution | if an employer’s contributions represent more than 5% of total contributions to the Pentegra DB Plan | ||||
Cincinnati Federal [Member] | |||||
Multiemployer Plan, Contributions by Employer | $ 70,769 | $ 107,772 |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheet (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | |||
Cash and due from banks | $ 2,505,136 | $ 2,951,787 | |
Investment in bank subsidiary | 12,831,650 | 23,558,019 | |
Other assets | 1,068,690 | 1,603,150 | |
Total assets | 251,464,039 | 237,133,555 | |
Liabilities | |||
Other Liabilities | 514,705 | 1,483,105 | |
Stockholders' Equity | 42,899,718 | 41,503,971 | $ 23,836,838 |
Total stockholders' equity | 251,464,039 | 237,133,555 | |
Parent Company [Member] | |||
Assets | |||
Cash and due from banks | 5,671,762 | 6,449,777 | $ 459,178 |
Investment in bank subsidiary | 36,860,287 | 34,676,167 | |
Other assets | 367,669 | 378,027 | |
Total assets | 42,899,718 | 41,503,971 | |
Liabilities | |||
Stockholders' Equity | 42,899,718 | 41,503,971 | |
Total stockholders' equity | $ 42,899,718 | $ 41,503,971 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) - Condensed Statement of Income and Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other noninterest expenses | $ 958,608 | $ 939,764 |
Total noninterest expense | 14,100,326 | 11,845,281 |
Federal income tax benefits | 448,181 | 819,966 |
Net Income | 1,648,544 | 3,155,721 |
Comprehensive Income | 1,606,255 | 3,154,696 |
Parent Company [Member] | ||
Dividend Income | ||
Other noninterest expenses | 342,982 | 316,466 |
Total noninterest expense | 342,982 | 316,466 |
Income (loss) before federal income tax benefits and equity in undistributed income of the subsidiary | (342,982) | (316,466) |
Federal income tax benefits | 72,027 | 66,456 |
Equity in undistributed income of subsidiary | 1,919,499 | 3,405,731 |
Net Income | 1,648,544 | 3,155,721 |
Comprehensive Income | $ 1,606,255 | $ 3,154,696 |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) - Condensed Statement of Cash Flows (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | ||
Net Income | $ 1,648,544 | $ 3,155,721 |
Investing Activities | ||
Net cash (used in) provided by investing activities | (30,146,311) | 10,447,850 |
Financing Activities | ||
Repurchase of common stock | (678,092) | |
Net cash provided by (used in) financing activities | 13,038,352 | (9,173,479) |
Net change in cash and due from banks | (10,496,020) | (5,387,460) |
Cash and due from banks at beginning of year | 2,951,787 | |
Cash and due from banks at end of year | 2,505,136 | 2,951,787 |
Parent Company [Member] | ||
Operating Activities | ||
Net Income | 1,648,544 | 3,155,721 |
Items not requiring (providing) cash | ||
Equity in undistributed income of subsidiary | (1,919,499) | (3,405,731) |
Increase (decrease) in cash due to changes in: | ||
Accrued expenses and other assets | 10,363 | (152,505) |
Net cash (used in) operating activities | (260,592) | (402,515) |
Investing Activities | ||
Repayment on ESOP note | 141,374 | |
Proceeds from second step stock issuance downstreamed to bank | (7,667,532) | |
Net cash (used in) provided by investing activities | 141,374 | (7,667,532) |
Financing Activities | ||
Repurchase of common stock | (678,092) | |
Issuance of common stock | 19,295 | 14,060,646 |
Proceeds from second step stock issuance downstreamed to bank | (7,667,532) | |
Net cash provided by (used in) financing activities | (658,797) | 14,060,646 |
Net change in cash and due from banks | (778,015) | 5,990,599 |
Cash and due from banks at beginning of year | 6,449,777 | 459,178 |
Cash and due from banks at end of year | $ 5,671,762 | $ 6,449,777 |