10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-23667

HOPFED BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware	61-1322555
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4155 Lafayette Road, Hopkinsville, Kentucky	42240
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (270) 885-1171

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required and posted pursuant to Rule 405 of Regulation S-T (subsection 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated file or a non-accelerated filer. See definition of “accelerated filer”, “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule12b-2 of the Exchange Act: (Check one)

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company filer	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒.

As of May 5, 2017, the Registrant had outstanding 6,717,247 shares of the Registrant’s Common stock.

CONTENTS

HOPFED BANCORP, INC.

		PAGE
PART I. FINANCIAL INFORMATION
The unaudited consolidated condensed financial statements of the Registrant and its wholly owned subsidiaries are as follows:
Item 1.	Financial Statements
	Consolidated Condensed Statements of Financial Condition as of March  31, 2017 (unaudited) and December 31, 2016		2
	Consolidated Condensed Statements of Income for the Three Month Periods Ended March 31, 2017 and March 31, 2016 (unaudited)		4
	Consolidated Condensed Statements of Comprehensive Income (Loss) for the Three Month Periods Ended March 31, 2017 and March 31, 2016 (unaudited)		6
	Consolidated Condensed Statement of Stockholders’ Equity for the Three Month Periods Ended March 31, 2017 and March 31, 2016 (unaudited)		7
	Consolidated Condensed Statements of Cash Flows for the Three Month Periods Ended March 31, 2017 and March 31, 2016 (unaudited)		9
	Notes to Unaudited Consolidated Condensed Financial Statements		10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		44
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		50
Item 4.	Controls and Procedures		51
PART II OTHER INFORMATION
Item 1.	Legal Proceedings		52
Item 1A.	Risk Factors		52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		52
Item 3.	Defaults Upon Senior Securities		53
Item 4.	Mine Safety Disclosures		53
Item 5.	Other Information		53
Item 6.	Exhibits		53
SIGNATURES			54

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Financial Condition

(Dollars in Thousands)

	March 31, 2017		December 31, 2016
	(unaudited)
Assets
Cash and due from banks	$	30,663		21,779
Interest-bearing deposits in banks		19,408		3,970
Cash and cash equivalents		50,071		25,749
Federal Home Loan Bank stock, at cost		4,428		4,428
Securities available for sale		207,580		209,480
Loans held for sale		1,091		1,094
Loans receivable, net of allowance for loan losses of $6,164 at March 31, 2017, and $6,112 at December 31, 2016		615,480		604,286
Accrued interest receivable		3,121		3,799
Foreclosed assets, net		2,111		2,397
Bank owned life insurance		10,120		10,662
Premises and equipment, net		23,225		23,461
Deferred tax assets		2,918		3,052
Other assets		3,162		3,078
Total assets	$	923,307		891,486
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing accounts	$	136,333		131,145
Interest-bearing accounts
Interest bearing checking accounts		217,562		209,347
Savings and money market accounts		100,009		99,312
Other time deposits		311,839		293,078
Total deposits		765,743		732,882
Advances from Federal Home Loan Bank		11,000		11,000
Repurchase agreements		45,492		47,655
Subordinated debentures		10,310		10,310
Advances from borrowers for taxes and insurance		867		766
Accrued expenses and other liabilities		2,434		2,445
Total liabilities		835,846		805,058

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements.

2

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Financial Condition, Continued

(Dollars in Thousands)

	March 31, 2017			December 31, 2016
	(unaudited)
Stockholders’ equity
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at March 31, 2017 and December 31, 2016		—			—
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,963,378 issued and 6,716,549 outstanding at March 31, 2017 and 7,963,378 issued and 6,717,242 outstanding at December 31, 2016		80			80
Additional paid-in-capital		58,705			58,660
Retained earnings		49,721			49,035
Treasury stock, at cost (1,246,829 shares at March 31, 2017 and 1,246,136 shares at December 31, 2016)		(15,356	)		(15,347	)
Unearned Employee Stock Ownership Plan (“ESOP”) Shares, at cost (488,161 shares at March 31, 2017 and 498,346 shares at December 31, 2016)		(6,414	)		(6,548	)
Accumulated other comprehensive income		725			548
Total stockholders’ equity		87,461			86,428
Total liabilities and stockholders’ equity	$	923,307			891,486

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements.

3

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income

(Dollars in Thousands)

(Unaudited)

	For the Three Month Periods Ended March 31,
	2017		2016
Interest and dividend income:
Loans	$	6,736		6,465
Investment in securities, taxable		1,118		1,247
Nontaxable securities available for sale		283		353
Interest-bearing deposits		23		16
Total interest and dividend income		8,160		8,081
Interest expense:
Deposits		1,167		1,095
FHLB borrowings		32		73
Repurchase agreements		103		143
Subordinated debentures		104		94
Total interest expense		1,406		1,405
Net interest income		6,754		6,676
Provision for loan losses		291		458
Net interest income after provision for loan losses		6,463		6,218
Non-interest income:
Service charges		804		677
Merchant card		302		291
Mortgage origination income		334		368
Gain on sale of investments		2		291
Income from bank owned life insurance		235		84
Income from financial services		140		133
Other operating income		479		176
Total non-interest income		2,296		2,020

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements.

4

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income, Continued

(Dollars in Thousands, Except Per Share Amounts)

(Unaudited)

	For the Three Month Periods Ended March 31,
	2017		2016
Non-interest expenses:
Salaries and benefits	$	4,236		3,988
Occupancy expense		775		787
Data processing		764		727
State deposit tax		231		248
Professional services		348		335
Advertising		381		320
Foreclosure, net		108		68
Other operating expenses		846		1,210
Total non-interest expense		7,689		7,683
Income before income tax expense		1,070		555
Income tax expense		135		46
Net income		935		509
Net income per share:
Basic	$	0.15	$	0.08
Diluted	$	0.15	$	0.08
Dividend per share	$	0.04	$	0.04
Weighted average shares outstanding - basic		6,218,706		6,297,755
Weighted average shares outstanding - diluted		6,218,706		6,297,755

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements.

5

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Comprehensive Income

(Dollars in Thousands)

(Unaudited)

	For the Three Month Periods Ended March 31,
	2017			2016
Net income	$	935			509
Other comprehensive income, net of tax:
Unrealized gain on non-other than temporary impaired investment securities (OTTI) available for sale, net of taxes of ($121) and ($897), respectively		235			1,745
Unrealized gain (loss) on OTTI securities, net of taxes of $29 and ($39), respectively		(57	)		72
Reclassification adjustment for gains included in net income, net of taxes of $1 and $99, respectively		(1	)		(192	)
Total other comprehensive income		177			1,625
Comprehensive income	$	1,112			2,134

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements.

6

HOPFED BANCORP, INC.

Consolidated Condensed Statement of Stockholders’ Equity

For the Three Month Period Ended March 31, 2017

(Dollars in Thousands, Except Share Amounts)

(Unaudited)

																	Accumulated
						Additional					Common			Unearned			Other		Total
	Common			Common		Paid in		Retained			Treasury			ESOP			Comprehensive		Stockholders’
	Shares			Stock		Capital		Earnings			Shares			Shares			Income		Equity
Balance at December 31, 2016		6,717,242		$	80		58,660		49,035			(15,347	)		(6,548	)		548		86,428
Consolidated net income		—			—		—		935			—			—			—		935
Repurchase of treasury stock		(693	)		—		—		—			(9	)		—			—		(9	)
ESOP shares committed to be released		—			—		—		—			—			134			—		134
Change in price of ESOP shares		—			—		14		—			—			—			—		14
Compensation expense, restricted stock awards		—			—		31		—			—			—			—		31
Net change in unrealized gain on securities available for sale, net of income taxes of ($91)		—			—		—		—			—			—			177		177
Cash dividend to common stockholders		—			—		—		(249	)		—			—			—		(249	)
Balance March 31, 2017		6,716,549		$	80		58,705		49,721			(15,356	)		(6,414	)		725		87,461

7

HOPFED BANCORP, INC.

Consolidated Condensed Statement of Stockholders’ Equity

For the Three Month Period Ended March 31, 2016

(Dollars in Thousands, Except Share Amounts)

(Unaudited)

																		Accumulated
						Additional						Common			Unearned			Other		Total
	Common			Common		Paid in			Retained			Treasury			ESOP			Comprehensive		Stockholders’
	Shares			Stock		Capital			Earnings			Shares			Shares			Income		Equity
Balance at December 31, 2015		6,865,811		$	79		58,604			47,124			(13,471	)		(7,180	)		2,474		87,630
Consolidated net income		—			—		—			509			—			—			—		509
Issuance of restricted stock		10,609			1		—			—			—			—			—		1
Repurchase of treasury stock		(75,657	)		—		—			—			(901	)		—			—		(901	)
Change in price of ESOP shares		—			—		(16	)		—			—			—			—		(16	)
ESOP shares committed to be released		—			—		—			—			—			141			—		141
Compensation expense, restricted stock awards		—			—		30			—			—			—			—		30
Net change in unrealized gain on securities available for sale, net of income taxes of ($837)		—			—		—			—			—			—			1,625		1,625
Cash dividend to common stockholders		—			—		—			(251	)		—			—			—		(251	)
Balance March 31, 2016		6,800,763		$	80		58,618			47,382			(14,372	)		(7,039	)		4,099		88,768

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements

8

HOPFED BANCORP, INC.

Consolidated Condensed Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	For the Three Month Periods Ended March 31,
	2017			2016
Cash flows from operating activities:
Net cash provided by operating activities	$	3,180			817
Cash flows from investing activities
Proceeds from sales, calls and maturities of securities available for sale		15,598			16,764
Purchase of securities available for sale		(13,728	)		(15,021	)
Net (increase) decrease in loans		(11,528	)		3,259
Proceeds from sale of foreclosed assets		329			282
Purchase of premises and equipment		(70	)		(313	)
Net cash provided by (used in) investing activities		(9,399	)		4,971
Cash flows from financing activities:
Net increase in demand deposits		14,100			15,048
Net increase (decrease) in time and other deposits		18,761			(29,501	)
Increase in advances from borrowers for taxes and insurance		101			140
Advances from Federal Home Loan Bank		22,000			—
Repayment of advances from Federal Home Loan Bank		(22,000	)		(4,000	)
Net increase (decrease) in repurchase agreements		(2,163	)		1,170
Cash used to repurchase treasury stock		(9	)		(901	)
Dividends paid on common stock		(249	)		(251	)
Net cash provided by (used in) financing activities		30,541			(18,295	)
Increase (decrease) in cash and cash equivalents		24,322			(12,507	)
Cash and cash equivalents, beginning of period		25,749			54,698
Cash and cash equivalents, end of period	$	50,071		$	42,191
Supplemental disclosures of cash flow information:
Interest paid	$	1,396			1,509
Income taxes paid		—			—
Supplemental disclosures of non-cash investing and financing activities:
Loans charged off		292			83
Foreclosures and in substance foreclosures of loans during period		43			—
Net unrealized gains on investment securities classified as available for sale		268			2,460
Decrease in deferred tax asset related to unrealized gains on investments		(91	)		(838	)
Dividends declared and payable		288			286
Issuance of restricted common stock		—			125

See accompanying Notes to Unaudited Consolidated Condensed Financial Statements

9

NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(1) BASIS OF PRESENTATION

The accompanying unaudited interim consolidated condensed financial statements include the accounts of HopFed Bancorp, Inc. (the “Corporation”) and its subsidiaries (collectively, the “Company”). The Corporation is a parent holding company of Heritage Bank USA, Inc. (the “Bank”). The Banks owns JBMM, LLC, a wholly owned, limited liability company, which owns and manages the Bank’s foreclosed assets. The Bank also owns Heritage USA Title, LLC, which sells title insurance to the Bank’s real estate loan customers. The Bank owns Fort Webb LP, LLC, which owns a limited partnership interest in Fort Webb Elderly Housing LP, LLC, a low income senior citizen housing facility in Bowling Green, Kentucky. The Corporation owns 100% of the common stock of HopFed Capital Trust I, a statutory trust formed under the laws of the state of Delaware with the purpose of issuing preferred capital securities to a third-party investor and purchasing junior subordinated debentures from the Company. HopFed Capital Trust I and Fort Webb LP, LLC are variable interest entities for which the Company is not the primary beneficiary. Accordingly, these subsidiaries are recorded under the equity method in the Company’s consolidated financial statements. All significant intercompany accounts have been eliminated.

The Bank is a Kentucky commercial bank regulated by the Kentucky Department of Financial Institutions (“KDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). HopFed Bancorp is regulated by the Federal Reserve Bank of Saint Louis (“FED”).

The accompanying unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) necessary for fair representation have been included. The results of operations and other data for the three month period ended March 31, 2017 are not necessarily indicative of results that may be expected for the entire fiscal year ending December 31, 2017.

The accompanying unaudited interim consolidated condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the Notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2016. The accounting policies followed by the Company are set forth in the Summary of Significant Accounting Policies in the Company’s December 31, 2016 Consolidated Financial Statements.

10

(2) NET INCOME PER SHARE

Basic net income per share (IPS) is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period. For the three month periods ended March 31, 2017 and March 31, 2016, the Company has excluded all unearned shares held by the ESOP.

	March 31,
	2017		2016
Basic IPS:
Net income	$	935,000	$	509,000
Average common shares outstanding		6,218,706		6,297,755
Net income per share	$	0.15	$	0.08
Diluted IPS:
Net income	$	935,000	$	509,000
Average common shares outstanding		6,218,706		6,297,755
Dilutive effect of stock options		—		—
Average diluted shares outstanding		6,218,706		6,297,755
Net income per share, diluted	$	0.15	$	0.08

(3) STOCK COMPENSATION

The Company incurred compensation cost related to the HopFed Bancorp, Inc. 2004 Long Term Incentive Plan of $31,000 for the three month period ended March 31, 2017 and $30,000 for the three month period ended March 31, 2016. The Company did not issue any restricted shares in the three month period ended March 31, 2017. The Company issued 10,609 shares of restricted stock in the three month period ended March 31, 2016. The table below provides a detail of the Company’s future compensation expense related to restricted stock vesting as of March 31, 2017 (Dollars in Thousands):

Year Ending December 31,	Future Expense
2017	$	57
2018		54
2019		9
2020		2
Total	$	122

The compensation committee may make additional awards of restricted stock, thereby increasing the future expense related to this plan. In addition, award vesting may be accelerated due to certain events as outlined in the restricted stock award agreement. Any acceleration of vesting will change the timing of, but not the aggregate amount of, compensation expense incurred.

11

(4) SECURITIES

The carrying amount of securities and their estimated fair values at March 31, 2017 were as follows:

	March 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Available for sale:
U.S. Treasury securities	$	2,000		—		—			2,000
U.S. Agency securities		90,294		929		(468	)		90,755
Taxable municipal bonds		2,164		16		(9	)		2,171
Tax free municipal bonds		33,052		1,128		(67	)		34,113
Trust preferred securities		1,638		94		—			1,732
Mortgage backed securities		77,334		374		(899	)		76,809
	$	206,482		2,541		(1,443	)		207,580

12

The carrying amount of securities and their estimated fair values at December 31, 2016 were as follows:

	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Available for sale:
U.S. Treasury securities		2,000		1		—			2,001
U.S. Agency securities		83,667		983		(638	)		84,012
Taxable municipal bonds		2,720		17		(10	)		2,727
Tax free municipal bonds		33,004		1,081		(174	)		33,911
Trust preferred securities		1,634		183		—			1,817
Mortgage-backed securities		85,626		437		(1,051	)		85,012
	$	208,651		2,702		(1,873	)		209,480

The scheduled maturities of debt securities available for sale at March 31, 2017 were as follows:

			Estimated
	Amortized		Fair
	Cost		Value
	(Dollars in Thousands)
Due within one year	$	6,622	$	6,624
Due in one to five years		20,553		20,748
Due in five to ten years		30,572		30,878
Due after ten years		11,024		11,515
		68,771		69,765
Amortizing agency bonds		60,377		61,006
Mortgage-backed securities		77,334		76,809
Total securities available for sale	$	206,482	$	207,580

13

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of March 31, 2017 were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	43,756		(419	)		3,380		(49	)		47,136		(468	)
Taxable municipals		794		(9	)		—		—			794		(9	)
Tax free municipals		5,408		(67	)		—		—			5,408		(67	)
Mortgage-backed securities		48,365		(654	)		8,369		(245	)		56,734		(899	)
Total available for sale	$	98,323		(1,149	)		11,749		(294	)		110,072		(1,443	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2016 were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	41,963		(597	)		3,459		(41	)		45,422		(638	)
Taxable municipals		1,347		(10	)		—		—			1,347		(10	)
Tax free municipals		7,369		(174	)		—		—			7,369		(174	)
Mortgage-backed securities		48,462		(796	)		7,439		(255	)		55,901		(1,051	)
Total available for sale	$	99,141		(1,577	)		10,898		(296	)		110,039		(1,873	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2017, the Company has 69 securities with unrealized losses. The losses for all securities are considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and are not related to the credit worthiness of the issuers. Furthermore, the Company has the intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of March 31, 2017.

At March 31, 2017 and December 31, 2016, securities with a book value of approximately $128.9 million and $125.6 million and a market value of approximately $131.9 million and $128.4 million, respectively, were pledged to various municipalities for deposits in excess of FDIC limits as required by law.

14

(5) LOANS

The Company uses the following loan segments as described below:

• One-to-four family first mortgages are closed end loans secured by residential housing. Loans may be either owner or non-owner occupied properties. If the loan is owner-occupied, the loan is analyzed and under-written as a consumer loan. Loan terms may be up to 30 years.

• Home equity lines of credit may be first or second mortgages secured by one-to-four family properties. Home equity loans carry a variable rate and typically are open-ended for a period not to exceed ten years with a fifteen year final maturity. Loans secured by home equity lines of credit are under-written under the Company’s consumer loan guidelines.

• Junior liens are closed-end loans secured by one-to-four family residences with a fixed or variable rate. Typically, the collateral for these loans are owner occupied units with a subordinate lien. Loans secured by junior liens are under-written under the Company’s consumer loan guidelines.

• Multi-family loans are closed-end loans secured by residential housing with five or more units in a single building. Multi-family loans may carry a variable rate of interest or the interest rate on the loan is a fixed rate (usually five years). After the initial fixed rate period, the loan reverts to a variable rate or has a balloon maturity. Multi-family loans have amortization terms of up to twenty years and are under-written under the Company’s commercial loan underwriting guidelines.

• Constructions loans may consist of residential or commercial properties and carry a fixed or variable rate for the term of the construction period. Construction loans have a maturity of between twelve and twenty-four months depending on the type of property. After the construction period, loans are amortized over a twenty-year period and are under-written under the Company’s underwriting guidelines for the type of property.

• Land loans consist of properties currently under development, land held for future development and land held for recreational purposes. Land loans used for recreational purposes are amortized for twenty years and typically carry a fixed rate of interest for one-to-five years with a balloon maturity or floating rate period to follow and are under-written under the Company’s commercial loan underwriting guidelines.

15

• Loans classified as farmland by the Company include properties that are used exclusively for the production of grain, livestock, poultry or swine. Loans secured by farmland have a maturity of up to twenty years and carry a fixed rate of interest for five to ten years. Loans secured by farmland are under-written under the Company’s commercial loan underwriting guidelines.

• Non-residential real estate loans are secured by commercial real estate properties and may be either owner or non-owner occupied. The loans typically have a twenty year maturity and may be fixed for a period of five to ten years. After the initial fixed rate period, the note will either revert to a one year adjustable rate loan or have a balloon maturity. Loans secured by non-residential real estate are under-written under the Company’s commercial loan underwriting standards.

• The Company originates secured and unsecured consumer loans. Collateral for consumer loans may include deposits, brokerage accounts, automobiles and other personal items. Consumer loans are typically fixed for a term of one to five years and are under-written using the Company’s consumer loan policy.

• The Company originates unsecured and secured commercial loans. Secured commercial loans may have business inventory, accounts receivable and equipment as collateral. The typical customer may include all forms of manufacturing, retail and wholesale sales, professional services and various forms of agri-business interest. Commercial loans may be fixed or variable rate and typically have terms between one and five years.

16

Set forth below is selected data relating to the composition of the loan portfolio by type of loan at March 31, 2017 and December 31, 2016. At March 31, 2017 and December 31, 2016, there were no concentrations of loans exceeding 10% of total loans other than as disclosed below:

	March 31, 2017			December 31, 2016
	(Dollars in Thousands)
Real estate loans:
One-to-four family first mortgages	$	157,626			147,962
Home equity lines of credit		36,694			35,684
Junior liens		1,365			1,452
Multi-family		38,483			34,284
Construction		17,386			39,255
Land		20,142			23,840
Farmland		42,812			47,796
Non-residential real estate		213,933			182,940
Total mortgage loans		528,441			513,213
Consumer loans		8,674			8,717
Commercial loans		84,955			88,907
Total other loans		93,629			97,624
Total loans, gross		622,070			610,837
Deferred loan fees, net of costs		(426	)		(439	)
Less allowance for loan losses		(6,164	)		(6,112	)
Total loans, net	$	615,480		$	604,286

Although the Company has a diversified loan portfolio, 84.9% and 84.0% of the portfolio was concentrated in loans secured by real estate located primarily within a single geographic region of the United States as of March 31, 2017 and December 31, 2016, respectively.

17

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the three month period ended March 31, 2017 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2016		2017			2017		2017			2017			3/31/2017
One-to-four family mortgages	$	852		—			3		245			(3	)		1,097
Home equity line of credit		260		—			2		68			(2	)		328
Junior liens		8		—			1		1			(1	)		9
Multi-family		412		—			—		181			—			593
Construction		277		—			—		(136	)		—			141
Land		1,760		—			—		(396	)		(931	)		433
Farmland		778		—			—		(147	)		35			666
Non-residential real estate		964		—			6		324			47			1,341
Consumer loans		208		(68	)		33		18			49			240
Commercial loans		593		(224	)		8		551			388			1,316
Total	$	6,112		(292	)		53		709			(418	)		6,164

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the year ended December 31, 2016 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2015		2016			2016		2016			2016			12/31/2016
One-to-four family mortgages	$	1,030		—			167		(118	)		(227	)		852
Home equity line of credit		201		(30	)		14		59			16			260
Junior liens		8		—			14		—			(14	)		8
Multi-family		227		(421	)		—		323			283			412
Construction		377		—			—		(100	)		—			277
Land		1,379		—			—		(586	)		967			1,760
Farmland		358		—			—		420			—			778
Non-residential real estate		1,139		—			10		(41	)		(144	)		964
Consumer loans		358		(422	)		293		(187	)		166			208
Commercial loans		623		(595	)		141		122			302			593
Total	$	5,700		(1,468	)		639		(108	)		1,349			6,112

18

The table below presents past due and non-accrual balances at March 31, 2017 by loan classification allocated between performing and non-performing:

			30 - 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	153,653		688		248		55		2,982		—	$	157,626
Home equity line of credit		36,132		—		402		—		160		—		36,694
Junior liens		1,320		4		—		29		12		—		1,365
Multi-family		37,668		—		—		—		815		—		38,483
Construction		17,386		—		—		—		—		—		17,386
Land		12,020		—		7,234		431		457		—		20,142
Farmland		40,588		—		338		693		1,193		—		42,812
Non-residential real estate		202,168		—		210		1,518		10,037		—		213,933
Consumer loans		8,239		22		119		—		294		—		8,674
Commercial loans		82,825		32		393		254		1,451		—		84,955
Total	$	591,999		746		8,944		2,980		17,401		—	$	622,070

The table below presents past due and non-accrual balances at December 31, 2016 by loan classification allocated between performing and non-performing:

			30 - 89		Non-				Impaired Loans
	Currently		Days		Accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages		145,069		896		270		744		983		—		147,962
Home equity line of credit		35,087		22		402		25		148		—		35,684
Junior liens		1,407		4		—		30		11		—		1,452
Multi-family		31,280		—		—		—		3,004		—		34,284
Construction		39,255		—		—		—		—		—		39,255
Land		15,581		—		7,675		35		549		—		23,840
Farmland		44,832		—		—		674		2,290		—		47,796
Non-residential real estate		172,395		—		208		3		10,334		—		182,940
Consumer loans		8,354		28		3		—		332		—		8,717
Commercial loans		84,913		261		516		603		2,614		—		88,907
Total		578,173		1,211		9,074		2,114		20,265		—		610,837

19

At March 31, 2017 and December 31, 2016, there were no loans more than 90 days past due and accruing interest.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2017 and December 31, 2016, by portfolio segment and based on the impairment method as of March 31, 2017 and December 31, 2016.

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
					(Dollars in Thousands)
March 31, 2017:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	201		105		88		—		98	$	492
Collectively evaluated for impairment		1,115		469		2,512		1,434		142		5,672
Total ending allowance balance	$	1,316		574		2,600		1,434		240	$	6,164
Loans:
Loans individually evaluated for impairment	$	1,844		7,691		12,593		3,804		413	$	26,345
Loans collectively evaluated for impairment		83,111		29,837		282,635		191,881		8,261		595,725
Total ending loans balance	$	84,955		37,528		295,228		195,685		8,674	$	622,070

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
					(Dollars in Thousands)
December 31, 2016:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	28		1,036		—		—		84	$	1,148
Collectively evaluated for impairment		565		1,001		2,154		1,120		124		4,964
Total ending allowance balance	$	593		2,037		2,154		1,120		208	$	6,112
Loans:
Loans individually evaluated for impairment	$	3,130		8,224		15,836		1,814		335	$	29,339
Loans collectively evaluated for impairment		85,777		54,871		249,184		183,284		8,382		581,498
Total ending loans balance	$	88,907		63,095		265,020		185,098		8,717	$	610,837

20

The determination of the allowance for loan losses is based on management’s analysis, performed on a quarterly basis. Various factors are considered, including the growth and composition of the loan portfolio, the relationship of the allowance for loan losses to outstanding loans, historical loss experience, delinquency trends, prevailing economic conditions and the market value of the underlying collateral. Although management believes its allowance for loan losses is adequate, there can be no assurance that additional allowances will not be required or that losses on loans will not be incurred.

The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, each loan is graded based on pre-determined risk metrics and categorized into one of the risk grades discussed below. The Company uses the following risk grade definitions for commercial loans:

Excellent - Loans in this category are to persons or entities of unquestioned financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by Bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

Very Good - These are loans to persons or entities with strong financial condition and above- average liquidity who have previously satisfactorily handled their obligations with the bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

Satisfactory - Assets of this grade conform to substantially all the Bank’s underwriting criteria and evidence an average level of credit risk; however, such assets display more susceptibility to economic, technological or political changes since they lack the above average financial strength of credits rated Very Good. Borrower’s repayment capacity is considered to be adequate. Credit is appropriately structured and serviced; payment history is satisfactory.

Acceptable - Assets of this grade conform to most of the Bank’s underwriting criteria and evidence an acceptable, though higher than average, level of credit risk; however, these loans have certain risk characteristics which could adversely affect the borrower’s ability to repay given material adverse trends. Loans in this category require an above average level of servicing and show more reliance on collateral and guaranties to preclude a loss to the Bank should material adverse trends develop. If the borrower is a company, its earnings, liquidity and capitalization are slightly below average when compared to its peers.

21

Watch - These loans are characterized by borrowers who have marginal cash flow, marginal profitability, or have experienced an unprofitable year and a declining financial condition. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure. This classification includes loans to established borrowers that are reasonably margined by collateral, but where potential for improvement in financial capacity appears limited.

Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deteriorating prospects for the asset or in the institution’s credit position at some future date. Borrowers may be experiencing adverse operating trends or market conditions. Non-financial reasons for rating a credit exposure Special Mention include, but are not limited to: management problems, pending litigations, ineffective loan agreement and/or inadequate loan documentation, structural weaknesses and/or lack of control over collateral.

Substandard - A substandard asset is inadequately protected by the current sound worth or paying capacity of the debtor or the collateral pledged. There exists one or more well defined weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility the Bank will experience some loss if the deficiencies are not corrected.

Doubtful - A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the Bank’s loan. These loans are in a work-out status and have a defined work-out strategy.

Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. The Bank takes losses in the period in which they become uncollectible.

22

The following credit risk standards are assigned to consumer loans:

Satisfactory - All consumer open-end and closed-end retail loans shall have an initial risk grade assigned of 3 - Satisfactory.

Substandard - All consumer open-end and closed-end retail loans past due 90 cumulative days from the contractual date will be classified as 7 - Substandard. If a consumer/retail loan customer files bankruptcy, the loan will be classified as 7 - Substandard regardless of payment history.

Loss - All closed-end retail loans that become past due 120 cumulative days and open-end retail loans that become past due 180 cumulative days from the contractual due date will be charged off as loss assets. The charge off will be taken by the end of the month in which the 120-day or 180-day time period elapses. All losses in retail credit will be recognized when the affiliate becomes aware of the loss, but in no case should the charge off exceed the time frames stated within this policy.

A loan is considered to be impaired when management determines that it is possible that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. The value of individually impaired loans is measured based on the present value of expected payments or using the fair value of the collateral less cost to sell if the loan is collateral dependent. Currently, it is management’s practice to classify all substandard or doubtful loans as impaired.

23

A summary of the Company’s impaired loans, including their respective regulatory classification and their respective specific reserve at March 31, 2017 and December 31, 2016 were as follows:

											Specific		Allowance
											Allowance		for Loans
			Special		Impaired Loans						for		not
March 31, 2017	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
			(Dollars in Thousands)
One-to-four family mortgages	$	154,341		55		3,230		—		157,626		—		1,097
Home equity line of credit		36,132		—		562		—		36,694		—		328
Junior liens		1,324		29		12		—		1,365		—		9
Multi-family		37,668		—		815		—		38,483		—		593
Construction		17,386		—		—		—		17,386		—		141
Land		12,020		431		7,691		—		20,142		105		328
Farmland		40,588		693		1,531		—		42,812		35		631
Non-residential real estate		202,168		1,518		10,247		—		213,933		53		1,288
Consumer loans		8,261		—		413		—		8,674		98		142
Commercial loans		82,857		254		1,844		—		84,955		201		1,115
Total	$	592,745		2,980		26,345		—		622,070		492		5,672

											Specific		Allowance
											Allowance		for Loans
			Special		Impaired Loans						for		not
December 31, 2016	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
			(Dollars in Thousands)
One-to-four family mortgages	$	145,965		744		1,253		—		147,962		—		852
Home equity line of credit		35,109		25		550		—		35,684		—		260
Junior liens		1,411		30		11		—		1,452		—		8
Multi-family		31,280		—		3,004		—		34,284		—		412
Construction		39,255		—		—		—		39,255		—		277
Land		15,581		35		8,224		—		23,840		1,036		724
Farmland		44,832		674		2,290		—		47,796		—		778
Non-residential real estate		172,395		3		10,542		—		182,940		—		964
Consumer loans		8,382		—		335		—		8,717		84		124
Commercial loans		85,174		603		3,130		—		88,907		28		565
Total	$	579,384		2,114		29,339		—		610,837		1,148		4,964

24

Impaired loans by classification type and the related valuation allowance amounts at March 31, 2017 were as follows:

							For the three month period ended
			At March 31, 2017				March 31, 2017
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
Impaired loans with no specific allowance	Investment		Balance		Allowance		Investment		Recognized
					(Dollars in Thousands)
One-to-four family mortgages	$	3,230		3,230		—		2,242		31
Home equity line of credit		562		562		—		556		10
Junior liens		12		12		—		12		—
Multi-family		815		815		—		1,910		10
Construction		—		—		—		—		—
Land		1,020		1,980		—		1,287		9
Farmland		1,005		1,005		—		1,648		13
Non-residential real estate		9,849		9,849		—		10,196		134
Consumer loans		18		18		—		9		—
Commercial loans		1,336		1,336		—		2,101		12
Total		17,847		18,807		—		19,961		219
Impaired loans with a specific allowance
One-to-four family mortgages		—		—		—		—		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		6,671		6,671		105		6,671		—
Farmland		526		526		35		263		—
Non-residential real estate		398		398		53		199		5
Consumer loans		395		395		98		365		—
Commercial loans		508		508		201		387		3
Total		8,498		8,498		492		7,885		8
Total impaired loans	$	26,345		27,305		492		27,846		227

25

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2016 were as follows:

							For the year ended
	At December 31, 2016						December 31, 2016
	(Dollars in Thousands)
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
Impaired loans with no specific allowance	Investment		Balance		Allowance		Investment		Recognized
One-to-four family mortgages	$	1,253		1,253		—		1,470		67
Home equity line of credit		550		550		—		390		24
Junior liens		11		11		—		13		1
Multi-family		3,004		3,004		—		3,005		172
Construction		—		—		—		—		—
Land		1,553		2,513		—		7,868		38
Farmland		2,290		2,290		—		1,563		120
Non-residential real estate		10,542		10,542		—		9,363		485
Consumer loans		—		—		—		21		1
Commercial loans		2,865		2,865		—		3,168		112
Total		22,068		23,028		—		26,861		1,020
Impaired loans with a specific allowance
One-to-four family mortgages		—		—		—		452		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		910		—
Construction		—		—		—		—		—
Land		6,671		6,671		1,036		1,811		485
Farmland		—		—		—		533		—
Non-residential real estate		—		—		—		—		—
Consumer loans		335		335		84		273		—
Commercial loans		265		265		28		754		24
Total		7,271		7,271		1,148		4,733		509
Total impaired loans	$	29,339		30,299		1,148		31,594		1,529

26

On a periodic basis, the Bank may modify the terms of certain loans. In evaluating whether a restructuring constitutes a troubled debt restructuring (TDR), Financial Accounting Standards Board (FASB) has issued Accounting Standards Update ASU 310 (ASU 310), A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring.

At December 31, 2016, the Company had eight loans, representing three lending relationships, classified as performing TDRs. During the three month period ended March 31, 2017, the Company removed one lending relationship from TDR status. That relationship, with two loans representing $2.2 million, has paid as agreed based on the original terms of their note for a period of at least six months. For the three month period ended March 31, 2017, no loans were added to TDR classification and all loans currently classified as TDR are current based on their revised terms.

The following table provides the number of loans remaining in each category as of March 31, 2017 and December 31, 2016 that the Company had previously modified in a TDR:

					Post Modification
			Pre-Modification		Outstanding Record
	Number of		Outstanding		Investment, net of
	Loans		Record Investment		related allowance
March 31, 2017
Multi-family		3	$	815,273		815,273
Non-residential real estate		3		3,421,915		3,421,915
December 31, 2016
Multi-family		3	$	815,273		815,273
Non-residential real estate		5		5,646,223		5,646,223

There were no loans as of March 31, 2017 that have been modified as TDRs and that subsequently defaulted within twelve months on their modified terms. At March 31, 2017, there are no commitments to lend additional funds to any borrower whose loan terms have been modified in a TDR.

27

(6) FORECLOSED ASSETS

The Company’s foreclosed assets have been acquired through customer loan defaults. The property is recorded at the lower of cost or fair value less estimated cost to sell and carrying cost at the date acquired. Any difference between the book value and estimated market value is recognized as a charge off through the allowance for loan loss account. Additional losses on foreclosed assets may be determined on individual properties at specific intervals or at the time of disposal. In general, the Company will obtain a new appraisal on all foreclosed assets with a book balance in excess of $250,000 on an annual basis. Additional losses are recognized as a non-interest expense.

At March 31, 2017 and December 31, 2016, the Company had balances in foreclosed assets consisting of the following:

	March 31, 2017		December 31, 2016
	(Dollars in Thousands)
One-to-four family mortgages	$	135		135
Home equity line of credit		28		28
Multi-family real estate		1,775		1,775
Non-residential real estate		173		459
Total other assets owned	$	2,111		2,397

For the three month period ended March 31, 2017, the Company’s activity in foreclosed property included the following:

			Activity During 2017
	Balance							Reduction		Gain (Loss)		Balance
	12/31/2016		Foreclosure		Sales			in Values		on Sale		3/31/2017
	(Dollars in Thousands)
One-to-four family mortgages	$	135		—		—			—		—	$	135
HELOC		28		—		—			—		—		28
Multi-family		1,775		—		—			—		—		1,775
Non-residential real estate		459		43		(329	)		—		—		173
Total	$	2,397		43		(329	)		—		—	$	2,111

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For the three month period ended March 31, 2016, the Company’s activity in foreclosed property included the following:

			Activity During 2016
	Balance							Reduction		Gain (Loss)			Balance
	12/31/2015		Foreclosure		Sales			in Values		on Sale			3/31/2016
	(Dollars in Thousands)
One-to-four family mortgages	$	55		—		—			—		—		$	55
HELOC		943		—		—			—		—			943
Non-residential real estate		738		—		(270	)		—		(9	)		459
Consumer		—		12		(12	)		—		—			—
Total	$	1,736		12		(282	)		—		(9	)	$	1,457

(7) FAIR VALUE OF ASSETS AND LIABILITIES

Accounting Standards Codification Topic (ASC) 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value. The statement establishes a fair value hierarchy which requires an entity to maximize the use of observable input and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value.

• Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

• Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

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The following are the significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments:

Cash and due from banks

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns.

Interest-bearing deposits

The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns.

Available-for-sale securities

Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement.

FHLB stock

The fair value of FHLB stock is recognized at cost.

Loans held for sale

Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income.

Loans receivable

The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan.

Accrued interest receivable

Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value.

Deposits

The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits.

Advances from borrowers for taxes and insurance

The carrying amount of advances from borrowers for taxes and insurance approximates its fair value.

Advances from the Federal Home Loan Bank (FHLB)

The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained.

Repurchase agreements

Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements.

Subordinated debentures

The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%.

Fair Value Measurements on a Recurring Basis

Where quoted prices are available for identical securities in an active market, securities available for sale are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy.

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The assets and liabilities measured at fair value on a recurring basis at March 31, 2017 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 3/31/2017		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Securities available for sale
U.S. Treasury securities		2,000		2,000		—		—
U.S. Agency securities		90,755		—		90,755		—
Taxable municipals		2,171		—		2,171		—
Tax-free municipals		34,113		—		34,113		—
Trust preferred securities		1,732		—		—		1,732
Mortgage backed securities		76,809		—		76,809		—
Total		207,580		2,000		203,848		1,732

The assets and liabilities measured at fair value on a recurring basis at December 31, 2016 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 12/31/2016		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Securities available for sale
U.S. Treasury securities		2,001		2,001		—		—
U.S. Agency securities		84,012		—		84,012		—
Taxable municipals		2,727		—		2,727		—
Tax-free municipals		33,911		—		33,911		—
Trust preferred securities		1,817		—		—		1,817
Mortgage backed securities		85,012		—		85,012		—
Total		209,480		2,001		205,662		1,817

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The assets and liabilities measured at fair value on a non-recurring basis are summarized below for March 31, 2017:

	Total carrying		Quoted Prices		Significant
	value in the		In Active		Other		Significant
	consolidated		Markets for		Observable		Unobservable
	balance sheet at		Identical Assets		Inputs		Inputs
Description	March 31, 2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	2,111		—		—	$	2,111
Impaired loans, net of allowance	$	8,006		—		—	$	8,006

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for December 31, 2016:

	Total carrying		Quoted Prices		Significant
	value in the		In Active		Other		Significant
	consolidated		Markets for		Observable		Unobservable
	balance sheet at		Identical Assets		Inputs		Inputs
Description	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	2,397		—		—	$	2,397
Impaired loans, net of allowance	$	6,123		—		—	$	6,123

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The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a recurring and non-recurring basis at March 31, 2017 and December 31, 2016:

Level 3 Significant Unobservable Input Assumptions
							Quantitative Range
	Fair		Valuation		Unobservable		of Unobservable
`	Value		Technique		Input		Inputs
			(Dollars in Thousands)
March 31, 2017
Assets measured on a non-recurring basis
Foreclosed assets	$	2,111		Discount to appraised value of collateral		Appraisal comparability adjustments		30% to 55%
Impaired loans		8,006		Discount to appraised value of collateral		Appraisal comparability adjustments		10% to 25%
Asset measured on a recurring basis
Trust preferred securities		1,732		Discounted cash flow Spread to Libor swap curve		Compare to quotes for sale when available		One month libor 4% to 6%
December 31, 2016
Assets measured on a non-recurring basis
Foreclosed assets	$	2,397		Discount to appraised value of collateral		Appraisal comparability adjustments		30% to 55%
Impaired loans		6,123		Discount to appraised value of collateral		Appraisal comparability adjustments		10% to 15%
Asset measured on a recurring basis
Trust preferred securities		1,817		Discounted cash flow Spread to Libor swap curve		Compare to quotes for sale when available		One month libor 4% to 6%

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Foreclosed assets and impaired loans are valued at fair value, less cost to sell. Fair value of a foreclosed asset is determined by an appraised value of the underlying collateral to which a discount is applied. Management establishes the discount or adjustments based on recent sales and any unique features the collateral may possess. Management also considers the anticipated selling cost associated with the collateral when establishing the discounted percentage. Management may adjust the discounts based on the most recent sales of comparable collateral.

The Company bases the value of its trust preferred security on a quarterly review of SEC filings by the issuer to ascertain overall financial strength. Based on the analysis, the Company then reviews the Libor swap curve to analyze the overall yield of our investment as compared to long-term swap rates. On rare occasions, the Company may receive an offer from a broker to purchase similar type instruments and the Company will analyze these offerings as compared to our investment.

The table below includes a roll-forward of the consolidated condensed statement of financial condition items for the three month periods ended March 31, 2017 and March 31, 2016, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify an asset or liability within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 assets and liabilities typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.

	2017			2016
Three month period ended March 31,	Other Assets			Other Assets
	(Dollars in Thousands)
Fair value, January 1	$	1,817			1,865
Change in unrealized losses included in other comprehensive income for assets and liabilities still held at March 31		(89	)		105
Accretion of previously discounted amounts		4			4
Purchases, issuances and settlements, net		—			—
Transfers in and/or out of Level 3		—			—
Fair value, March 31	$	1,732			1,974

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The estimated fair values of financial instruments were as follows at March 31, 2017:

	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
					(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	30,663		30,663		30,663		—		—
Interest-bearing deposits		19,408		19,408		19,408		—		—
Securities available for sale		207,580		207,580		2,000		203,848		1,732
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,091		1,091		—		1,091		—
Loans receivable		615,480		600,288		—		—		600,288
Accrued interest receivable		3,121		3,121		—		—		3,121
Financial liabilities:
Deposits		765,743		766,415		—		766,415		—
Advances from borrowers for taxes and insurance		867		867		—		867		—
Advances from Federal Home Loan Bank		11,000		10,999		—		10,999		—
Repurchase agreements		45,492		45,492		—		45,492		—
Subordinated debentures		10,310		10,099		—		—		10,099

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The estimated fair values of financial instruments were as follows at December 31, 2016:

	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
					(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	21,779		21,779		21,779		—		—
Interest-bearing deposits		3,970		3,970		3,970		—		—
Securities available for sale		209,480		209,480		2,001		205,662		1,817
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,094		1,094		—		1,094		—
Loans receivable		604,286		593,257		—		—		593,257
Accrued interest receivable		3,799		3,799		—		—		3,799
Financial liabilities:
Deposits		732,882		732,942		—		732,942		—
Advances from borrowers for taxes and insurance		766		766		—		766		—
Advances from Federal Home Loan Bank		11,000		10,979		—		10,979		—
Repurchase agreements		47,655		47,655		—		47,655		—
Subordinated debentures		10,310		10,099		—		—		10,099

(8) EFFECT OF NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued new guidance related to “Revenue from Contracts with Customers.” This guidance supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the ASC. The guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016; however, the FASB has agreed to a one-year deferral of the effective date to December 15, 2017. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements.

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ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective on January 1, 2018. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements.

ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019, and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Management is currently evaluating the potential impact of ASU 2016-02 on the Company’s consolidated financial statements.

ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 was effective beginning January 1, 2017. The implementation of ASU 2016-05 did not have a material impact on the Company’s consolidated financial statements.

ASU 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective beginning January 1, 2017. The implementation of ASU 2016-07 did not have a material impact on the Company’s consolidated financial statements.

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ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective beginning January 1, 2017. The implementation of ASU 2016-09 did not have a material effect on the Company’s consolidated financial statements.

On June 16, 2016, the FASB released its finalized ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments to U.S. GAAP require businesses and other organization to measure the expected credit losses on financial assets, such as loans, securities, bond insurance, and many receivables. The accounting changes apply to instruments recorded on balance sheets at their historical cost, although there are some limited changes to the accounting for debt instruments classified as available-for-sale. Write-downs will be based on historical information, current business conditions, and forecasts, and it expects the forecasts are expected to improve the loss estimates on financial assets that are losing value. The techniques that are employed today to write down loans and other instruments can still be used, although the variables for calculating the losses are expected to change. ASU 2016-13 will become effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Companies are permitted to adopt ASU 2016-13 in fiscal years beginning after December 15, 2018. Management is currently evaluating the potential impact of this ASU on the Company’s consolidated financial statements.

ASU 2016-15 “Statement of Cash Flows (Topic 230)” (“ASU 2016-15”) is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption was permitted with retrospective application. Management is evaluating the impact that the adoption of ASU 2016-15 will have on the Company’s consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

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(9) INCOME TAXES

The Company files consolidated federal income tax returns and Tennessee excise tax returns. The Company files consolidated Kentucky income tax returns. The Bank is exempt from Kentucky corporate income tax. The Company has no unrecognized tax benefits and has not accrued any interest or penalties for uncertain tax positions. The effective tax rate differs from the statutory federal rate of 35% and Tennessee excise rate of 6.5% due to investments in qualified municipal securities, bank owned life insurance, income apportioned to Kentucky and certain non-deductible expenses. The Company’s effective tax rate for the three month periods ended March 31, 2017 and March 31, 2016 was 12.6% and 8.3%, respectively. The Company’s effective federal income tax rate varies significantly from our federal statutory tax rate for a variety of factors, including:

The Company’s investment in Fort Webb LP, LLC generates tax credits and depreciation expense that the Company can use to offset taxable income. At March 31, 2017 and December 31, 2016, the Company’s balance sheet did not include any equity investment in Fort Webb. The Company has other investments that produce both tax credits and depreciation expense that may be used to offset net income.

At March 31, 2017, the Company has $10.1 million in bank owned life insurance policies. The income generated from these policies increase the cash flow of the policies on a tax free basis. Life insurance proceeds are paid upon the death of a covered party. These proceeds, netted against the current cash value of the policy, result in tax free income to the Company. For the three month period ended March 31, 2017, the Company received additional income of approximately $170,000 from the net proceeds of a life insurance policy.

At March 31, 2017, the Company’s investment portfolio includes $34.1 million of tax free municipal bonds. Interest income on this portfolio, after netting out a disallowance for interest expense attributable to this portfolio, is tax exempt.

(10) ESOP

Substantially all of the Company’s employees who are at least 21 years old and have one year of employment with the Company participate in the 2015 HopFed Bancorp, Inc. Employee Stock Ownership Plan (“ESOP”). The ESOP purchased 600,000 shares of the Company’s common stock from the Company on March 2, 2015, at $13.14 per share. The ESOP borrowed $7.9 million from an open-end line of credit from the Company for the purchase of the stock, using the 600,000 shares of common stock as collateral. The Company makes discretionary contributions to the ESOP. The ESOP utilizes these contributions along with the dividends on the 600,000 held by the ESOP to repay the loan from the Company. When loan payments are made, ESOP shares are released based on reduction in the principal balance of the loan. The shares are allocated to participants based on relative compensation.

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Employees who are not employed on December 31st of each year are not eligible for participation in the ESOP. The Company anticipates that loan payments will be made at the end of each year. Participants receive shares at the end of employment. The Company has the option to repurchase the shares or provide the shares directly to the employee.

The Company made its second ESOP loan payment in December 2016. At March 31, 2017, the Company’s accrued liability for the loan payment is $195,000. At March 31, 2017 and December 31, 2016, shares held by the ESOP were as follows:

	March 31, 2017		December 31, 2016
Accrued for allocation to participants		10,185		—
Earned ESOP shares		101,654		101,654
Unearned ESOP shares		488,161		498,346
Total ESOP shares		600,000		600,000
Fair value of unearned shares	$	6,990,466	$	6,707,737

(11) COMMITMENTS AND CONTINGENCIES

At March 31, 2017, the Bank had $32.1 million in outstanding commitments on revolving home equity lines of credit, $19.4 million in outstanding commitments on revolving personal lines of credit and $43.9 million in commitments to originate loans and undisbursed commitments on commercial lines of credit of $48.7 million. At March 31, 2017, the Company had $287,000 in standby letters of credit outstanding.

At March 31, 2017, the Company has $43.1 million in times deposits greater than $100,000 but less than $250,000 that are scheduled to mature in one year and $47.6 million in time deposits with balances greater than $250,000 that are scheduled to mature in one year or less.

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The Bank’s FHLB borrowings are secured by a blanket security agreement pledging the Bank’s 1-4 family first mortgage loans and non-residential real estate loans. At March 31, 2017 and December 31, 2016, the Bank has pledged all eligible 1-4 family first mortgages. At March 31, 2017 and December 31, 2016 the Bank has outstanding borrowings of $11.0 million from the FHLB. A schedule of FHLB borrowings at March 31, 2017 and December 31, 2016 is provided below:

Outstanding Balance		Rate			Maturity
(Dollars in Thousands)
$	5,000		0.88	%		10/06/2017
	6,000		1.18	%		07/06/2018
$	11,000		1.04	%

The Federal Home Loan Bank of Cincinnati has issued letters of credit in the Bank’s name totaling $45.5 million secured by the Bank’s loan portfolio to secure additional municipal deposits. At March 31, 2017, securities with a book value of approximately $45.2 million and a market value of $45.5 million were sold under agreements to repurchase from various customers.

The Company is a party to certain ordinary course litigation, and the Company intends to vigorously defend itself in all such matters. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such ordinary course litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

(12) REGULATORY MATTERS

The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a total risk-based capital ratio of 8% (unchanged from current rules); (iv) a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%.

The capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. For 2017, the capital conservation buffer is 1.25%. An institution is subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if capital levels fall below minimum plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

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Under these new rules, Tier 1 capital generally consist of common stock (plus related surplus) and retained earnings, limited amounts of minority interest in the form of additional Tier 1 capital instruments, and non-cumulative preferred stock and related surplus, subject to certain eligibility standards, less goodwill and other specified intangible assets and other regulatory deductions. Cumulative preferred stock and trust preferred securities issued after May 19, 2010, will no longer qualify as Tier 1 capital, but such securities issued prior to May 19, 2010, including in the case of bank holding companies with less than $15.0 billion in total assets, trust preferred securities issued prior to that date, will continue to count as Tier 1 capital subject to certain limitations. The definition of Tier 2 capital is generally unchanged for most banking organizations, subject to certain new eligibility criteria.

Common equity Tier 1 capital generally consist of common stock (plus related surplus) and retained earnings plus limited amounts of minority interest in the form of common stock, less goodwill and other specified intangible assets and other regulatory deductions. The final rules allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company has made the decision to opt-out of this requirement.

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 tangible and core capital (as defined in the regulations) to adjusted total assets (as defined), and of total capital (as defined) and Tier 1 to risk weighted assets (as defined). The minimum required capital amounts presented include the minimum required capital levels as of March 31, 2017 and December 31, 2016 based on the phase-in provisions of Basel III Capital Rules. Management believes, as of March 31, 2017 and December 31, 2016, that the Bank meets all capital adequacy requirements to which it is subject.

42

The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of March 31, 2017 and December 31, 2016 are presented below:

											To be Well
						Minimum Capital					Capitalized for
						Required – Basel III					Prompt Corrective
	Actual					Phase-In Schedule					Action Provisions
As of March 31, 2017	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Tier 1 leverage capital to adjusted total assets
Company	$	94,592		10.6	%	$	35,876		4.0	%	$	44,845		5.0	%
Bank	$	93,585		10.5	%	$	35,752		4.0	%	$	44,690		5.0	%
Total capital to risk weighted assets
Company	$	100,756		16.1	%	$	57,792		9.25	%	$	62,478		10.0	%
Bank	$	99,749		16.0	%	$	57,664		9.25	%	$	62,339		10.0	%
Tier 1 capital to risk weighted assets
Company	$	94,592		15.1	%	$	45,297		7.25	%	$	49,983		8.0	%
Bank	$	93,585		15.0	%	$	45,196		7.25	%	$	49,871		8.0	%
Common equity tier 1 capital to risk weighted assets
Company	$	94,592		15.1	%	$	35,925		5.75	%		n/a		n/a
Bank	$	93,585		15.0	%	$	35,845		5.75	%	$	40,520		6.5	%
As of December 31, 2016
Tier 1 leverage capital to adjusted total assets
Company	$	92,803		10.8	%	$	34,392		4.0	%	$	42,990		5.0	%
Bank	$	91,617		10.7	%	$	34,315		4.0	%	$	42,894		5.0	%
Total capital to risk weighted assets
Company	$	98,915		16.2	%	$	52,682		8.625	%	$	61,080		10.0	%
Bank	$	97,729		16.0	%	$	52,561		8.625	%	$	60,941		10.0	%
Tier 1 capital to risk weighted assets
Company	$	92,803		15.2	%	$	40,466		6.625	%	$	48,864		8.0	%
Bank	$	91,617		15.0	%	$	40,373		6.625	%	$	48,753		8.0	%
Common equity tier 1 capital to risk weighted assets
Company	$	92,803		15.2	%	$	31,304		5.125	%		n/a		n/a
Bank	$	91,617		15.0	%	$	31,232		5.125	%	$	39,611		6.5	%

43

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Policies

The preparation of the Company’s consolidated financial statements requires management to make subjective judgments associated with estimates. These estimates are necessary to comply with U.S. GAAP and general banking practices. These estimates include accounting for the allowance for loan losses, foreclosed assets, valuation of deferred tax assets and fair value measurements. A description of these estimates, which significantly affect the Company’s determination of our consolidated financial position, results of operations and cash flows, is set forth in Note 1, “Summary of Significant Accounting Policies” of the Notes to the Company’s consolidated financial statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2016.

The emphasis of this discussion is a comparison of assets, liabilities and stockholders’ equity as of March 31, 2017 to December 31, 2016, while comparing income and expense for the three month periods ended March 31, 2017 and March 31, 2016.

All information should be read in conjunction with the Company’s unaudited consolidated condensed financial statements and related notes appearing elsewhere in this report and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” appearing in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2016.

Comparison of Financial Condition at March 31, 2016, and December 31, 2016

At March 31, 2017, total assets increased $31.8 million, to $923.3 million as compared to $891.5 million at December 31, 2016, largely due to higher levels of time deposits, cash on hand and loan growth. Securities available for sale declined from $209.5 million at December 31, 2016 to $207.6 million at March 31, 2017. At March 31, 2017 and December 31, 2016, securities classified as “available for sale” had an amortized cost of $206.5 million and $208.7 million. Net loans totaled $615.5 million and $604.3 million at March 31, 2017, and December 31, 2016, respectively.

The Company’s holdings of Federal Home Loan Bank of Cincinnati (“FHLB”) stock, at cost were $4.4 million at December 31, 2016 and March 31, 2017. Total FHLB borrowings were $11.0 million at March 31, 2017 and December 31, 2016. Total repurchase balances declined from $47.7 million at December 31, 2016 to $45.5 million at March 31, 2017.

44

At March 31, 2017, deposits increased $32.8 million from $732.9 million at December 31, 2016 to $765.7 million at March 31, 2017. At March 31, 2017, non-interest checking account balances are $136.3 million, or 17.8% of total deposits as compared to $131.1 million, or 17.9% of total deposits at December 31, 2016. For the period ended March 31, 2017, interest bearing checking accounts increased by $8.2 million as compared to December 31, 2016. At March 31, 2017, time deposits were $311.8 million, representing an increase of $18.8 million as compared to December 31, 2016. Management continually evaluates the investment alternatives available to customers and adjusts the pricing on its deposit products to more actively manage its funding costs while remaining competitive in its market area.

Comparison of Operating Results for the Three Month Periods Ended March 31, 2017 and March 31, 2016.

Net Income. The Company’s net income was $935,000 for the three month period ended March 31, 2017, as compared to net income of $509,000 for the three month period ended March 31, 2016.

Net Interest Income. Net interest income for the three month period ended March 31, 2017, was $6.8 million, compared to $6.7 million for the three month period ended March 31, 2016. The increase in net interest income for the three month period ended March 31, 2017 as compared to March 31, 2016 was largely due to the $54.8 million increase in the average balance of loans outstanding. For the three month period ended March 31, 2017, the growth in the average balance of loans outstanding as compared to three month period ended March 31, 2016 helped to offset a decline in the average yield of the loan portfolio.

For the three month period ended March 31, 2017, the average yield on loans was 4.38%, as compared to 4.62% for the three month period ended March 31, 2016. For the three month period ended March 31, 2017, income on taxable securities and tax free securities was $1.1 million and $283,000, respectively. Income on taxable and tax free securities was $1.2 million and $353,000 for the three month period ended March 31, 2016, respectively. For the three month period ending March 31, 2017, the tax equivalent yield on taxable and tax free securities were 2.53% and 5.00%, respectively, as compared to 2.52% and 5.01% for the three month period ended March 31, 2016, respectively.

For the three month periods ended March 31, 2017 and March 31, 2016, the Company’s cost of interest bearing liabilities was 0.81% and 0.83%, respectively. For the three month periods ended March 31, 2017 and March 31, 2016, the Company’s net interest margin was 3.31% and 3.39%, respectively.

Average Balances, Yields and Interest Expenses. The table on the next page summarizes the overall effect of changes in both interest rates and the average balances of interest earning assets and liabilities for the three month periods ended March 31, 2017 and March 31, 2016. Yields on assets and cost of liabilities are derived by dividing income or expense by the average daily balances of interest earning assets and liabilities for the appropriate three month periods.

45

Average balances for loans include loans classified as non-accrual, net of the allowance for loan losses. The table adjusts tax-free investment income by $141,000 for the three month period ended March 31, 2017 and $174,000 for the three month period ended March 31, 2016, for a tax equivalent rate using a cost of funds rate of 0.81% for the three month period ended March 31, 2017 and 0.83% for the three month period ended March 31, 2016. The table adjusts tax-free loan income by $9,000 for the three month period ended March 31, 2017 and $5,000 for the three month period ended March 31, 2016, for a tax equivalent rate using the same cost of funds rate (Table amounts in thousands, except percentages):

	Average		Income &			Average			Average		Income &			Average
	Balance		Expense			Rates			Balance		Expense			Rates
	03/31/2017		03/31/2017			03/31/2017			03/31/2016		03/31/2016			03/31/2016
Loans	$	615,382	$	6,745			4.38	%	$	560,544	$	6,470			4.62	%
Taxable AFS securities		176,824		1,118			2.53	%		197,761		1,247			2.52	%
Non-taxable AFS securities		33,868		424			5.00	%		42,098		527			5.01	%
Other interest bearing deposits		9,260		23			0.99	%		9,491		16			0.67	%
Total interest earning assets		835,334		8,310			3.98	%		809,894		8,260			4.08	%
Other assets		73,527								85,874
Total assets	$	908,861							$	895,874
Retail time deposits	$	259,086		664			1.03	%	$	264,308		640			0.97	%
Brokered deposits		46,040		135			1.17	%		35,986		99			1.10	%
Interest bearing checking accounts		219,696		326			0.59	%		213,336		311			0.58	%
MMDA and savings accounts		100,282		42			0.17	%		97,391		45			0.18	%
FHLB borrowings		13,433		32			0.95	%		13,593		73			2.15	%
Repurchase agreements		41,840		103			0.98	%		43,744		143			1.31	%
Subordinated debentures		10,310		104			4.03	%		10,310		94			3.65	%
Total interest bearing liabilities		690,687		1,406			0.81	%		678,668		1,405			0.83	%
Non-interest bearing deposits		126,809								112,926
Other non-interest bearing liabilities		3,993								4,706
Stockholders’ equity		87,372								89,468
Total liabilities and stockholders’ equity	$	908,861							$	895,768
Net interest income			$	6,904							$	6,855
Interest rate spread							3.17	%							3.25	%
Net interest margin				3.31	%							3.39	%

46

Interest Income. For the three month period ended March 31, 2017, the Company’s total interest income was $8.2 million, representing an increase of $79,000 as compared to the three month period ended March 31, 2016. For the three month periods ended March 31, 2017 and March 31, 2016, interest income on loans was $6.7 million and $6.5 million, respectively. The average balance of loans receivable increased from $560.5 million for the three month period ended March 31, 2016 to $615.4 million for the three month period ended March 31, 2017. The ratio of average interest-earning assets to average interest-bearing liabilities increased from 119.34% for the three month period ended March 31, 2016 to 120.94% for the three month period ended March 31, 2017.

Interest Expense. Interest expense increased $1,000 for the three month period ended March 31, 2017 as compared to the three month period ended March 31, 2016. For the three month period ending March 31, 2017, the Company’s interest expense on FHLB advances was $32,000, as compared to $73,000 for the three month period ended March 31, 2016. The average cost of FHLB borrowings were 0.95% for the three month period ended March 31, 2017 and 2.15% for the three month period ended March 31, 2016.

For the three month period ended March 31, 2017, the average balance of interest bearing retail time deposits declined $5.2 million to $259.1 million, as compared to $264.3 million for the three month period ended March 31, 2016. The average cost of retail time deposits for the three month periods ended March 31, 2017 and March 31, 2016 was 1.03% and 0.97%, respectively.

The average cost of brokered deposits increased from 1.10% for the three month period ended March 31, 2016 to 1.17% for the three month period ended March 31, 2017. Over the same period, the average balance of brokered deposits increased $10.0 million to $46.0 million. For the three month period ended March 31, 2017, the Company’s total cost of deposits was 0.61% as compared to 0.60% for the three month period ended March 31, 2016.

The average balance of repurchase agreements declined from $43.7 million for the three months ended March 31, 2016, to $41.8 million for the three month period ended March 31, 2017. The average cost of repurchase agreements was 1.31% for the three months ended March 31, 2016, and 0.98% for the three month period ended March 31, 2017.

Provision for Loan Losses. The allowance for loan losses is established through a provision for loan losses based on management’s evaluation of the risk inherent in its loan portfolio and the general economy. Such evaluation considers numerous factors including general economic conditions, loan portfolio composition and prior loss experience, the estimated fair value of the underlying collateral and other factors that warrant recognition in providing for an adequate loan loss allowance. The Company determined that an additional $291,000 in provision for loan loss was required for the three month period ended March 31, 2017 compared to a $458,000 provision for loan loss expense for the three month period ended March 31, 2016.

47

Non-Interest Income. There was a $276,000 increase in non-interest income in the three month period ended March 31, 2017 as compared to the three month period ended March 31, 2016. For the three month period ended March 31, 2017, other operating income was $479,000 as compared to $176,000 for the three month period ended March 31, 2016. The improved level of other operating income is the result of one time licensing fees earned by the Bank from a vendor. For the three month period ended March 31, 2017, the Company earned $334,000 in mortgage origination income as compared to $368,000 during the three month period ended March 31, 2016. The decline in mortgage origination income was largely the result of an increase in mortgage loan rates which reduced the demand for fixed rate mortgage loan products.

The Company’s income for services charges was $804,000 for the three month period ended March 31, 2017, as compared to $677,000 for the same period in 2016. The increase in service charge income is the result of the Company’s revised consumer transaction account product offerings, providing additional income on these accounts. The Company’s financial services commission was $133,000 for the three month period ended March 31, 2016 as compared to $140,000 for the three month period ended March 31, 2017. For the three month period ended March 31, 2017, gains on the sale of securities were $2,000, as compared to $291,000 for the three month period ended March 31, 2016. For the three month period ended March 31, 2017, the Company’s liquidity position grew due to an increase in deposits, eliminating the need for the Company to sell securities for liquidity purposes.

Non-Interest Expenses. There was a $6,000 increase in total non-interest expenses for the three month period ended March 31, 2017 as compared to the three month period ended March 31, 2016. The most significant change in non-interest expenses was a $248,000 increase in salaries and benefits expense. The increase in salaries and benefits expense is largely the result of a $67,000 increase in health insurance benefits due to an increase in medical insurance and a $146,000 increase in overall compensation.

For the three month period ended March 31, 2017, other operating expenses were $846,000 as compared to $1.2 million for the three month period ended March 31, 2016. The reduction in other expenses is attributable to several factors, including reduced legal cost as the Company sought to obtain legal title to properties owned by past due borrowers. These properties, now held in foreclosed assets, resulted in an expense of foreclosed assets of $108,000 for the three month period ended March 31, 2017 as compared to $68,000 for the three month period ended March 31, 2016.

Income Taxes. The effective tax rate for the three month periods ending March 31, 2017 was 12.6% due to the modest level of taxable net interest income and a higher level of tax free income and an increase in income from bank owned life insurance resulting from the receipt of approximately $170,000 in from the proceeds of a life insurance policy. For the three month period ended March 31, 2016, the Company’s taxable net income effective rate was 8.3% due to very low levels of net income and a relatively higher level of tax free income.

48

Liquidity and Capital Resources. The Company has no business other than that of the Bank. Management believes that dividends that may be paid by the Bank to the Company will provide sufficient funds for its current needs. However, no assurance can be given that the Company will not have a need for additional funds in the future. The Bank is subject to certain regulatory limitations with respect to the payment of dividends to the Company.

The Bank uses brokered deposits to supplement its asset liability need for longer term deposits at reasonable prices. In addition to the coupon rate listed below, brokered deposits carry an additional fee of approximately 0.25% that includes the cost of selling and servicing the deposits. The Company includes this cost as interest expense on its income statement.

At March 31, 2017, the Bank’s brokered deposits consisted of the following:

Issue Date	Interest Rate			Balance		Maturity Date
1/9/2015		1.00	%	$	2,077,000		4/9/2017
1/15/2016		1.00	%		2,028,000		5/15/2017
10/16/2015		0.85	%		4,042,000		7/16/2017
7/27/2015		1.00	%		1,500,000		7/27/2017
8/16/2016		0.75	%		2,153,000		10/16/2017
7/22/2016		0.75	%		2,070,000		11/22/2017
10/24/2016		0.80	%		964,000		12/24/2017
1/3/2013		1.00	%		3,030,000		1/3/2018
1/9/2015		1.20	%		2,004,000		1/9/2018
7/29/2016		0.85	%		1,887,000		3/29/2018
1/12/2017		1.10	%		5,433,000		4/12/2018
2/15/2017		1.10	%		4,986,000		5/15/2018
10/24/2016		1.00	%		2,149,000		6/24/2018
1/12/2017		1.25	%		5,074,000		9/12/2018
2/15/2017		1.30	%		4,278,000		12/15/2018
8/16/2016		1.00	%		1,008,000		2/16/2019
7/22/2016		1.00	%		2,138,000		5/22/2019
7/29/2016		1.05	%		2,964,000		7/29/2019
8/16/2016		1.10	%		1,978,000		8/16/2019
Total				$	51,763,000

49

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission or otherwise. The words “believe,” “expect,” “seek,” and “intend” and similar expressions identify forward-looking statements, which speak only as of the date the statement is made. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, projections of income or loss, expenditures, acquisitions, plans for future operations, financing needs or plans relating to services of the Company, as well as assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of revisions, which may be made to forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The actual results of the Company’s asset liability management analysis are highly dependent on the prepayment speed of mortgage backed securities and collateralized mortgage obligations. The United States Treasury’s policy of purchasing longer dated Treasury bonds has the result of lowering mortgage loan rates, allowing more consumers to refinance their mortgages and pay-off their current mortgage, resulting in higher prepayment speeds on mortgage investment products.

The effects of rising interest rates are discussed throughout Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Actual results for the year ending December 31, 2017 will differ from simulations due to timing, magnitude, and the frequency or interest rate changes, market conditions, management strategies, and the timing of the Company’s cash receipts and disbursements.

The Company’s analysis at March 31, 2017 indicates that changes in interest rates are less likely to result in significant changes in the Company’s annual net interest income. A summary of the Company’s analysis at March 31, 2017 for the twelve month period ending March 31, 2018 is as follows:

	Down 1.00%		No change		Up 1.00%		Up 2.00%		Up 3.00%
	(Dollars in Thousands)
Net interest income	$	27,877	$	29,162	$	30,120	$	30,838	$	31,399

50

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures.

In accordance with Rule 13a-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”), an evaluation was carried out with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the quarter ended March 31, 2017.

Based upon their evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the three months ended March 31, 2017 to ensure that material information relating to the Company, including its consolidated subsidiaries, was made known to them by others within those entities, particularly during the period in which this quarterly report on Form 10-Q was being prepared.

Any control system, no matter how well conceived and operated, can provide only reasonable assurance that its objectives are achieved. The design of a control system inherently has limitations, including the controls cost relative to their benefits. Additionally, controls can be circumvented. No cost-effective control system can provide absolute assurance that all control issues and instances of fraud will be detected.

The Company is subject to Section 404 of The Sarbanes-Oxley Act of 2002. Section 404 requires management to assess and report on the effectiveness of the Company’s internal controls over financial reporting.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the Company’s fiscal quarter ended March 31, 2017 that have materially affected, or are reasonable likely to materially affect, the Company’s internal control over financial reporting.

51

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

On May 4, 2017, the Company, its President, Chief Executive Officer and a director, its Executive Vice President and a director, its other current directors and a former director were named in a lawsuit filed in the Court of Chancery of the State of Delaware by Stilwell Associates, L.P., Stilwell Activist Fund, L.P., and Stilwell Activist Investments, L.P. (collectively the “Stilwell Funds”). The complaint alleges that the defendants adopted Article III, Section 13 (“Director Qualifications”) of the Company’s Bylaws for the improper purpose of blocking the Stilwell Funds from nominating a director to join the Company’s Board of Directors.

Item 1A. Risk Factors

There have been no material changes to our risk factors as previously disclosed in Part 1, Item 1A of our annual report on Form 10-K for the fiscal year ended December 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sales of Equity Securities.

N/A

(b) Use of Proceeds. Not applicable

(c) Repurchase of Equity Securities

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total number of shares Purchased as part of Publically Announced Programs		Maximum Number of Shares that Yet may be Purchased Under the Program at the end of the period
January 1, 2017 to January 31, 2017		—		—		1,846,136		92,550
February 1, 2017 to February 28, 2017		563	$	12.60		1,846,699		91,987
March 1, 2017 to March 31, 2017		130	$	12.50		1,846,829		91,857
Total		693	$	12.58		1,846,829		91,857

52

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

Item 6. Exhibits

31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for John E. Peck, Chief Executive Officer.
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Billy C. Duvall, Chief Financial Officer.
32.1	Certification Pursuant to Section 18 U.S.C. Section 1350 for John E. Peck, Chief Executive Officer.
32.2	Certification Pursuant to Section 18 U.S.C. Section 1350 for Billy C. Duvall, Chief Financial Officer.
101	The following materials from the Company’s quarterly report on Form 10-Q for the three month period ended March 31, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Condensed Statements of Financial Condition as of March 31, 2017 (unaudited) and December 31, 2016, (ii) Consolidated Condensed Statements of Income for the three month periods ended March 31, 2017 and March 31, 2016 (unaudited), (iii) Consolidated Condensed Statements of Comprehensive Income (Loss) for the three month period ended March 31, 2017 and March 31, 2016 (unaudited), (iv) Consolidated Condensed Statements of Stockholders’ Equity, for the three month periods ended March 31, 2016 and March 31, 2017 (unaudited); and (v) Consolidated Condensed Statements of Cash Flows for the three month periods ended March 31, 2017 and March 31, 2016 (unaudited), and (iv) Notes to Consolidated Condensed Financial Statements (unaudited), tagged as blocks of text.

53

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOPFED BANCORP, INC.
Date: May 9, 2017	/s/ John E. Peck
	John E. Peck
	President and Chief Executive Officer
Date: May 9, 2017	/s/ Billy C. Duvall
	Billy C. Duvall
	Senior Vice President, Chief Financial
	Officer and Treasurer

54

EX-31.1

Exhibit 31.1

CERTIFICATION

I, John E. Peck, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of HopFed Bancorp, Inc.;

(2) Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

(3) Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonable likely to materially affect, the registrants internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant roles in the registrant’s internal control over financial reporting.

Date: May 9, 2017	/s/ John. E. Peck
	John E. Peck, Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Billy C. Duvall, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of HopFed Bancorp, Inc.;

(2) Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

(3) Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonable likely to materially affect, the registrants internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant roles in the registrant’s internal control over financial reporting.

Date: May 9, 2017	/s/ Billy C. Duvall
	Billy C. Duvall, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of HopFed Bancorp, Inc. (the “Company”) on

Form 10-Q for the period ended March 31, 2017, as filed with the Securities and Exchange

Commission on the date hereof (the “Report”), I, John E. Peck, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and the result of operations of the Company.

Date: May 9, 2017

/s/ John E. Peck

John E. Peck, Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to HopFed Bancorp, Inc. and will be retained by HopFed Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. The information furnished herein shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of HopFed Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Billy C. Duvall, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and the result of operations of the Company.

Date: May 9, 2017

/s/ Billy C. Duvall

Billy C. Duvall, Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to HopFed Bancorp, Inc. and will be retained by HopFed Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. The information furnished herein shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Trading Symbol	HFBC
Entity Registrant Name	HOPFED BANCORP INC
Entity Central Index Key	0001041550
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		6,717,247

XML

Consolidated Condensed Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 30,663	$ 21,779
Interest-bearing deposits in banks	19,408	3,970
Cash and cash equivalents	50,071	25,749
Federal Home Loan Bank stock, at cost	4,428	4,428
Securities available for sale	207,580	209,480
Loans held for sale	1,091	1,094
Loans receivable, net of allowance for loan losses of $6,164 at March 31, 2017, and $6,112 at December 31, 2016	615,480	604,286
Accrued interest receivable	3,121	3,799
Foreclosed assets, net	2,111	2,397
Bank owned life insurance	10,120	10,662
Premises and equipment, net	23,225	23,461
Deferred tax assets	2,918	3,052
Other assets	3,162	3,078
Total assets	923,307	891,486
Deposits:
Non-interest-bearing accounts	136,333	131,145
Interest-bearing accounts
Interest bearing checking accounts	217,562	209,347
Savings and money market accounts	100,009	99,312
Other time deposits	311,839	293,078
Total deposits	765,743	732,882
Advances from Federal Home Loan Bank	11,000	11,000
Repurchase agreements	45,492	47,655
Subordinated debentures	10,310	10,310
Advances from borrowers for taxes and insurance	867	766
Accrued expenses and other liabilities	2,434	2,445
Total liabilities	835,846	805,058
Stockholders' equity
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued and outstanding at March 31, 2017 and December 31, 2016
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,963,378 issued and 6,716,549 outstanding at March 31, 2017 and 7,963,378 issued and 6,717,242 outstanding at December 31, 2016	80	80
Additional paid-in-capital	58,705	58,660
Retained earnings	49,721	49,035
Treasury stock, at cost (1,246,829 shares at March 31, 2017 and 1,246,136 shares at December 31, 2016)	(15,356)	(15,347)
Unearned Employee Stock Ownership Plan ("ESOP") Shares, at cost (488,161 shares at March 31, 2017 and 498,346 shares at December 31, 2016)	(6,414)	(6,548)
Accumulated other comprehensive income	725	548
Total stockholders' equity	87,461	86,428
Total liabilities and stockholders' equity	$ 923,307	$ 891,486

XML

Consolidated Condensed Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Loans receivable, allowance for loan losses	$ 6,164	$ 6,112
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	7,963,378	7,963,378
Common stock, shares outstanding	6,716,549	6,717,242
Treasury stock, shares	1,246,829	1,246,136
Unearned ESOP Shares	488,161	498,346

XML

Consolidated Condensed Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest and dividend income
Loans	$ 6,736	$ 6,465
Investment in securities, taxable	1,118	1,247
Nontaxable securities available for sale	283	353
Interest-bearing deposits	23	16
Total interest and dividend income	8,160	8,081
Interest expense:
Deposits	1,167	1,095
FHLB borrowings	32	73
Repurchase agreements	103	143
Subordinated debentures	104	94
Total interest expense	1,406	1,405
Net interest income	6,754	6,676
Provision for loan losses	291	458
Net interest income after provision for loan losses	6,463	6,218
Non-interest income:
Service charges	804	677
Merchant card	302	291
Mortgage origination income	334	368
Gain on sale of investments	2	291
Income from bank owned life insurance	235	84
Income from financial services	140	133
Other operating income	479	176
Total non-interest income	2,296	2,020
Non-interest expenses:
Salaries and benefits	4,236	3,988
Occupancy expense	775	787
Data processing	764	727
State deposit tax	231	248
Professional services	348	335
Advertising	381	320
Foreclosure, net	108	68
Other operating expenses	846	1,210
Total non-interest expense	7,689	7,683
Income before income tax expense	1,070	555
Income tax expense	135	46
Net income	$ 935	$ 509
Net income per share:
Basic	$ 0.15	$ 0.08
Diluted	0.15	0.08
Dividend per share	$ 0.04	$ 0.04
Weighted average shares outstanding - basic	6,218,706	6,297,755
Weighted average shares outstanding - diluted	6,218,706	6,297,755

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 935	$ 509
Other comprehensive income, net of tax:
Unrealized gain on non-other than temporary impaired investment securities (OTTI) available for sale, net of taxes of ($121) and ($897), respectively	235	1,745
Unrealized gain (loss) on OTTI securities, net of taxes of $29 and ($39), respectively	(57)	72
Reclassification adjustment for gains included in net income, net of taxes of $1 and $99, respectively	(1)	(192)
Total other comprehensive income	177	1,625
Comprehensive income	$ 1,112	$ 2,134

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Unrealized gain on investment securities available for sale, tax effect	$ 121	$ 897
Unrealized gain (loss) on non other than temporary impaired securities, tax effect	29	(39)
Reclassification adjustment for other than temporary impairment included in net income, tax effect	$ 1	$ 99

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Consolidated Condensed Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Common Treasury Shares [Member]	Unearned ESOP Shares [Member]	Accumulated Other Comprehensive Income [Member]
Beginning balance at Dec. 31, 2015	$ 87,630	$ 79	$ 58,604	$ 47,124	$ (13,471)	$ (7,180)	$ 2,474
Beginning balance, Shares at Dec. 31, 2015		6,865,811
Consolidated net income	509			509
Issuance of restricted stock	1	$ 1
Issuance of restricted stock, shares		10,609
Repurchase of treasury stock	(901)				(901)
Repurchase of treasury stock, shares		(75,657)
Change in price of ESOP shares	(16)		(16)
ESOP shares committed to be released	141					141
Compensation expense, restricted stock awards	30		30
Net change in unrealized gain on securities available for sale, net of income taxes	1,625						1,625
Cash dividend to common stockholders	(251)			(251)
Ending balance at Mar. 31, 2016	88,768	$ 80	58,618	47,382	(14,372)	(7,039)	4,099
Ending balance, Shares at Mar. 31, 2016		6,800,763
Beginning balance at Dec. 31, 2016	86,428	$ 80	58,660	49,035	(15,347)	(6,548)	548
Beginning balance, Shares at Dec. 31, 2016		6,717,242
Consolidated net income	935			935
Repurchase of treasury stock	(9)				(9)
Repurchase of treasury stock, shares		(693)
Change in price of ESOP shares	14		14
ESOP shares committed to be released	134					134
Compensation expense, restricted stock awards	31		31
Net change in unrealized gain on securities available for sale, net of income taxes	177						177
Cash dividend to common stockholders	(249)			(249)
Ending balance at Mar. 31, 2017	$ 87,461	$ 80	$ 58,705	$ 49,721	$ (15,356)	$ (6,414)	$ 725
Ending balance, Shares at Mar. 31, 2017		6,716,549

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Consolidated Condensed Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net change in unrealized gain (losses) on securities available for sale, taxes	$ 91	$ 837
Accumulated Other Comprehensive Income [Member]
Net change in unrealized gain (losses) on securities available for sale, taxes	$ 91	$ 837

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Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net cash provided by operating activities	$ 3,180	$ 817
Cash flows from investing activities
Proceeds from sales, calls and maturities of securities available for sale	15,598	16,764
Purchase of securities available for sale	(13,728)	(15,021)
Net (increase) decrease in loans	(11,528)	3,259
Proceeds from sale of foreclosed assets	329	282
Purchase of premises and equipment	(70)	(313)
Net cash provided by (used in) investing activities	(9,399)	4,971
Cash flows from financing activities:
Net increase in demand deposits	14,100	15,048
Net increase (decrease) in time and other deposits	18,761	(29,501)
Increase in advances from borrowers for taxes and insurance	101	140
Advances from Federal Home Loan Bank	22,000
Repayment of advances from Federal Home Loan Bank	(22,000)	(4,000)
Net increase (decrease) in repurchase agreements	(2,163)	1,170
Cash used to repurchase treasury stock	(9)	(901)
Dividends paid on common stock	(249)	(251)
Net cash provided by (used in) financing activities	30,541	(18,295)
Increase (decrease) in cash and cash equivalents	24,322	(12,507)
Cash and cash equivalents, beginning of period	25,749	54,698
Cash and cash equivalents, end of period	50,071	42,191
Supplemental disclosures of cash flow information:
Interest paid	1,396	1,509
Income taxes paid	0	0
Supplemental disclosures of non-cash investing and financing activities:
Loans charged off	292	83
Foreclosures and in substance foreclosures of loans during period	43
Net unrealized gains on investment securities classified as available for sale	268	2,460
Decrease in deferred tax asset related to unrealized gains on investments	(91)	(838)
Dividends declared and payable	$ 288	286
Issuance of restricted common stock		$ 125

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Basis of Presentation

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

(1) BASIS OF PRESENTATION

The accompanying unaudited interim consolidated condensed financial statements include the accounts of HopFed Bancorp, Inc. (the “Corporation”) and its subsidiaries (collectively, the “Company”). The Corporation is a parent holding company of Heritage Bank USA, Inc. (the “Bank”). The Banks owns JBMM, LLC, a wholly owned, limited liability company, which owns and manages the Bank’s foreclosed assets. The Bank also owns Heritage USA Title, LLC, which sells title insurance to the Bank’s real estate loan customers. The Bank owns Fort Webb LP, LLC, which owns a limited partnership interest in Fort Webb Elderly Housing LP, LLC, a low income senior citizen housing facility in Bowling Green, Kentucky. The Corporation owns 100% of the common stock of HopFed Capital Trust I, a statutory trust formed under the laws of the state of Delaware with the purpose of issuing preferred capital securities to a third-party investor and purchasing junior subordinated debentures from the Company. HopFed Capital Trust I and Fort Webb LP, LLC are variable interest entities for which the Company is not the primary beneficiary. Accordingly, these subsidiaries are recorded under the equity method in the Company’s consolidated financial statements. All significant intercompany accounts have been eliminated.

The Bank is a Kentucky commercial bank regulated by the Kentucky Department of Financial Institutions (“KDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). HopFed Bancorp is regulated by the Federal Reserve Bank of Saint Louis (“FED”).

The accompanying unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) necessary for fair representation have been included. The results of operations and other data for the three month period ended March 31, 2017 are not necessarily indicative of results that may be expected for the entire fiscal year ending December 31, 2017.

The accompanying unaudited interim consolidated condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the Notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2016. The accounting policies followed by the Company are set forth in the Summary of Significant Accounting Policies in the Company’s December 31, 2016 Consolidated Financial Statements.

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Net Income Per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Net Income Per Share

(2) NET INCOME PER SHARE

Basic net income per share (IPS) is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period. For the three month periods ended March 31, 2017 and March 31, 2016, the Company has excluded all unearned shares held by the ESOP.

	March 31,
	2017		2016
Basic IPS:
Net income	$	935,000	$	509,000
Average common shares outstanding		6,218,706		6,297,755
Net income per share	$	0.15	$	0.08
Diluted IPS:
Net income	$	935,000	$	509,000
Average common shares outstanding		6,218,706		6,297,755
Dilutive effect of stock options		—		—
Average diluted shares outstanding		6,218,706		6,297,755
Net income per share, diluted	$	0.15	$	0.08

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Stock Compensation

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation

(3) STOCK COMPENSATION

The Company incurred compensation cost related to the HopFed Bancorp, Inc. 2004 Long Term Incentive Plan of $31,000 for the three month period ended March 31, 2017 and $30,000 for the three month period ended March 31, 2016. The Company did not issue any restricted shares in the three month period ended March 31, 2017. The Company issued 10,609 shares of restricted stock in the three month period ended March 31, 2016. The table below provides a detail of the Company’s future compensation expense related to restricted stock vesting as of March 31, 2017 (Dollars in Thousands):

Year Ending December 31,	Future Expense
2017	$	57
2018		54
2019		9
2020		2
Total	$	122

The compensation committee may make additional awards of restricted stock, thereby increasing the future expense related to this plan. In addition, award vesting may be accelerated due to certain events as outlined in the restricted stock award agreement. Any acceleration of vesting will change the timing of, but not the aggregate amount of, compensation expense incurred.

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Securities

3 Months Ended

Mar. 31, 2017

Cash and Cash Equivalents [Abstract]

Securities

(4) SECURITIES

The carrying amount of securities and their estimated fair values at March 31, 2017 were as follows:

	March 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Available for sale:
U.S. Treasury securities	$	2,000		—		—			2,000
U.S. Agency securities		90,294		929		(468	)		90,755
Taxable municipal bonds		2,164		16		(9	)		2,171
Tax free municipal bonds		33,052		1,128		(67	)		34,113
Trust preferred securities		1,638		94		—			1,732
Mortgage backed securities		77,334		374		(899	)		76,809
	$	206,482		2,541		(1,443	)		207,580

The carrying amount of securities and their estimated fair values at December 31, 2016 were as follows:

	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Available for sale:
U.S. Treasury securities		2,000		1		—			2,001
U.S. Agency securities		83,667		983		(638	)		84,012
Taxable municipal bonds		2,720		17		(10	)		2,727
Tax free municipal bonds		33,004		1,081		(174	)		33,911
Trust preferred securities		1,634		183		—			1,817
Mortgage-backed securities		85,626		437		(1,051	)		85,012
	$	208,651		2,702		(1,873	)		209,480

The scheduled maturities of debt securities available for sale at March 31, 2017 were as follows:

			Estimated
	Amortized		Fair
	Cost		Value
	(Dollars in Thousands)
Due within one year	$	6,622	$	6,624
Due in one to five years		20,553		20,748
Due in five to ten years		30,572		30,878
Due after ten years		11,024		11,515
		68,771		69,765
Amortizing agency bonds		60,377		61,006
Mortgage-backed securities		77,334		76,809
Total securities available for sale	$	206,482	$	207,580

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of March 31, 2017 were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	43,756		(419	)		3,380		(49	)		47,136		(468	)
Taxable municipals		794		(9	)		—		—			794		(9	)
Tax free municipals		5,408		(67	)		—		—			5,408		(67	)
Mortgage-backed securities		48,365		(654	)		8,369		(245	)		56,734		(899	)
Total available for sale	$	98,323		(1,149	)		11,749		(294	)		110,072		(1,443	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2016 were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	41,963		(597	)		3,459		(41	)		45,422		(638	)
Taxable municipals		1,347		(10	)		—		—			1,347		(10	)
Tax free municipals		7,369		(174	)		—		—			7,369		(174	)
Mortgage-backed securities		48,462		(796	)		7,439		(255	)		55,901		(1,051	)
Total available for sale	$	99,141		(1,577	)		10,898		(296	)		110,039		(1,873	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2017, the Company has 69 securities with unrealized losses. The losses for all securities are considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and are not related to the credit worthiness of the issuers. Furthermore, the Company has the intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of March 31, 2017.

At March 31, 2017 and December 31, 2016, securities with a book value of approximately $128.9 million and $125.6 million and a market value of approximately $131.9 million and $128.4 million, respectively, were pledged to various municipalities for deposits in excess of FDIC limits as required by law.

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Loans

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Loans

(5) LOANS

The Company uses the following loan segments as described below:

• One-to-four family first mortgages are closed end loans secured by residential housing. Loans may be either owner or non-owner occupied properties. If the loan is owner-occupied, the loan is analyzed and under-written as a consumer loan. Loan terms may be up to 30 years.

• Home equity lines of credit may be first or second mortgages secured by one-to-four family properties. Home equity loans carry a variable rate and typically are open-ended for a period not to exceed ten years with a fifteen year final maturity. Loans secured by home equity lines of credit are under-written under the Company’s consumer loan guidelines.

• Junior liens are closed-end loans secured by one-to-four family residences with a fixed or variable rate. Typically, the collateral for these loans are owner occupied units with a subordinate lien. Loans secured by junior liens are under-written under the Company’s consumer loan guidelines.

• Multi-family loans are closed-end loans secured by residential housing with five or more units in a single building. Multi-family loans may carry a variable rate of interest or the interest rate on the loan is a fixed rate (usually five years). After the initial fixed rate period, the loan reverts to a variable rate or has a balloon maturity. Multi-family loans have amortization terms of up to twenty years and are under-written under the Company’s commercial loan underwriting guidelines.

• Constructions loans may consist of residential or commercial properties and carry a fixed or variable rate for the term of the construction period. Construction loans have a maturity of between twelve and twenty-four months depending on the type of property. After the construction period, loans are amortized over a twenty-year period and are under-written under the Company’s underwriting guidelines for the type of property.

• Land loans consist of properties currently under development, land held for future development and land held for recreational purposes. Land loans used for recreational purposes are amortized for twenty years and typically carry a fixed rate of interest for one-to-five years with a balloon maturity or floating rate period to follow and are under-written under the Company’s commercial loan underwriting guidelines.

• Loans classified as farmland by the Company include properties that are used exclusively for the production of grain, livestock, poultry or swine. Loans secured by farmland have a maturity of up to twenty years and carry a fixed rate of interest for five to ten years. Loans secured by farmland are under-written under the Company’s commercial loan underwriting guidelines.

• Non-residential real estate loans are secured by commercial real estate properties and may be either owner or non-owner occupied. The loans typically have a twenty year maturity and may be fixed for a period of five to ten years. After the initial fixed rate period, the note will either revert to a one year adjustable rate loan or have a balloon maturity. Loans secured by non-residential real estate are under-written under the Company’s commercial loan underwriting standards.

• The Company originates secured and unsecured consumer loans. Collateral for consumer loans may include deposits, brokerage accounts, automobiles and other personal items. Consumer loans are typically fixed for a term of one to five years and are under-written using the Company’s consumer loan policy.

• The Company originates unsecured and secured commercial loans. Secured commercial loans may have business inventory, accounts receivable and equipment as collateral. The typical customer may include all forms of manufacturing, retail and wholesale sales, professional services and various forms of agri-business interest. Commercial loans may be fixed or variable rate and typically have terms between one and five years.

Set forth below is selected data relating to the composition of the loan portfolio by type of loan at March 31, 2017 and December 31, 2016. At March 31, 2017 and December 31, 2016, there were no concentrations of loans exceeding 10% of total loans other than as disclosed below:

	March 31, 2017			December 31, 2016
	(Dollars in Thousands)
Real estate loans:
One-to-four family first mortgages	$	157,626			147,962
Home equity lines of credit		36,694			35,684
Junior liens		1,365			1,452
Multi-family		38,483			34,284
Construction		17,386			39,255
Land		20,142			23,840
Farmland		42,812			47,796
Non-residential real estate		213,933			182,940
Total mortgage loans		528,441			513,213
Consumer loans		8,674			8,717
Commercial loans		84,955			88,907
Total other loans		93,629			97,624
Total loans, gross		622,070			610,837
Deferred loan fees, net of costs		(426	)		(439	)
Less allowance for loan losses		(6,164	)		(6,112	)
Total loans, net	$	615,480		$	604,286

Although the Company has a diversified loan portfolio, 84.9% and 84.0% of the portfolio was concentrated in loans secured by real estate located primarily within a single geographic region of the United States as of March 31, 2017 and December 31, 2016, respectively.

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the three month period ended March 31, 2017 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2016		2017			2017		2017			2017			3/31/2017
One-to-four family mortgages	$	852		—			3		245			(3	)		1,097
Home equity line of credit		260		—			2		68			(2	)		328
Junior liens		8		—			1		1			(1	)		9
Multi-family		412		—			—		181			—			593
Construction		277		—			—		(136	)		—			141
Land		1,760		—			—		(396	)		(931	)		433
Farmland		778		—			—		(147	)		35			666
Non-residential real estate		964		—			6		324			47			1,341
Consumer loans		208		(68	)		33		18			49			240
Commercial loans		593		(224	)		8		551			388			1,316
Total	$	6,112		(292	)		53		709			(418	)		6,164

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the year ended December 31, 2016 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2015		2016			2016		2016			2016			12/31/2016
One-to-four family mortgages	$	1,030		—			167		(118	)		(227	)		852
Home equity line of credit		201		(30	)		14		59			16			260
Junior liens		8		—			14		—			(14	)		8
Multi-family		227		(421	)		—		323			283			412
Construction		377		—			—		(100	)		—			277
Land		1,379		—			—		(586	)		967			1,760
Farmland		358		—			—		420			—			778
Non-residential real estate		1,139		—			10		(41	)		(144	)		964
Consumer loans		358		(422	)		293		(187	)		166			208
Commercial loans		623		(595	)		141		122			302			593
Total	$	5,700		(1,468	)		639		(108	)		1,349			6,112

The table below presents past due and non-accrual balances at March 31, 2017 by loan classification allocated between performing and non-performing:

			30 - 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	153,653		688		248		55		2,982		—	$	157,626
Home equity line of credit		36,132		—		402		—		160		—		36,694
Junior liens		1,320		4		—		29		12		—		1,365
Multi-family		37,668		—		—		—		815		—		38,483
Construction		17,386		—		—		—		—		—		17,386
Land		12,020		—		7,234		431		457		—		20,142
Farmland		40,588		—		338		693		1,193		—		42,812
Non-residential real estate		202,168		—		210		1,518		10,037		—		213,933
Consumer loans		8,239		22		119		—		294		—		8,674
Commercial loans		82,825		32		393		254		1,451		—		84,955
Total	$	591,999		746		8,944		2,980		17,401		—	$	622,070

The table below presents past due and non-accrual balances at December 31, 2016 by loan classification allocated between performing and non-performing:

			30 - 89		Non-				Impaired Loans
	Currently		Days		Accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages		145,069		896		270		744		983		—		147,962
Home equity line of credit		35,087		22		402		25		148		—		35,684
Junior liens		1,407		4		—		30		11		—		1,452
Multi-family		31,280		—		—		—		3,004		—		34,284
Construction		39,255		—		—		—		—		—		39,255
Land		15,581		—		7,675		35		549		—		23,840
Farmland		44,832		—		—		674		2,290		—		47,796
Non-residential real estate		172,395		—		208		3		10,334		—		182,940
Consumer loans		8,354		28		3		—		332		—		8,717
Commercial loans		84,913		261		516		603		2,614		—		88,907
Total		578,173		1,211		9,074		2,114		20,265		—		610,837

At March 31, 2017 and December 31, 2016, there were no loans more than 90 days past due and accruing interest.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2017 and December 31, 2016, by portfolio segment and based on the impairment method as of March 31, 2017 and December 31, 2016.

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
					(Dollars in Thousands)
March 31, 2017:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	201		105		88		—		98	$	492
Collectively evaluated for impairment		1,115		469		2,512		1,434		142		5,672
Total ending allowance balance	$	1,316		574		2,600		1,434		240	$	6,164
Loans:
Loans individually evaluated for impairment	$	1,844		7,691		12,593		3,804		413	$	26,345
Loans collectively evaluated for impairment		83,111		29,837		282,635		191,881		8,261		595,725
Total ending loans balance	$	84,955		37,528		295,228		195,685		8,674	$	622,070

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
					(Dollars in Thousands)
December 31, 2016:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	28		1,036		—		—		84	$	1,148
Collectively evaluated for impairment		565		1,001		2,154		1,120		124		4,964
Total ending allowance balance	$	593		2,037		2,154		1,120		208	$	6,112
Loans:
Loans individually evaluated for impairment	$	3,130		8,224		15,836		1,814		335	$	29,339
Loans collectively evaluated for impairment		85,777		54,871		249,184		183,284		8,382		581,498
Total ending loans balance	$	88,907		63,095		265,020		185,098		8,717	$	610,837

The determination of the allowance for loan losses is based on management’s analysis, performed on a quarterly basis. Various factors are considered, including the growth and composition of the loan portfolio, the relationship of the allowance for loan losses to outstanding loans, historical loss experience, delinquency trends, prevailing economic conditions and the market value of the underlying collateral. Although management believes its allowance for loan losses is adequate, there can be no assurance that additional allowances will not be required or that losses on loans will not be incurred.

The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, each loan is graded based on pre-determined risk metrics and categorized into one of the risk grades discussed below. The Company uses the following risk grade definitions for commercial loans:

Excellent - Loans in this category are to persons or entities of unquestioned financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by Bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

Very Good - These are loans to persons or entities with strong financial condition and above- average liquidity who have previously satisfactorily handled their obligations with the bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

Satisfactory - Assets of this grade conform to substantially all the Bank’s underwriting criteria and evidence an average level of credit risk; however, such assets display more susceptibility to economic, technological or political changes since they lack the above average financial strength of credits rated Very Good. Borrower’s repayment capacity is considered to be adequate. Credit is appropriately structured and serviced; payment history is satisfactory.

Acceptable - Assets of this grade conform to most of the Bank’s underwriting criteria and evidence an acceptable, though higher than average, level of credit risk; however, these loans have certain risk characteristics which could adversely affect the borrower’s ability to repay given material adverse trends. Loans in this category require an above average level of servicing and show more reliance on collateral and guaranties to preclude a loss to the Bank should material adverse trends develop. If the borrower is a company, its earnings, liquidity and capitalization are slightly below average when compared to its peers.

Watch - These loans are characterized by borrowers who have marginal cash flow, marginal profitability, or have experienced an unprofitable year and a declining financial condition. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure. This classification includes loans to established borrowers that are reasonably margined by collateral, but where potential for improvement in financial capacity appears limited.

Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deteriorating prospects for the asset or in the institution’s credit position at some future date. Borrowers may be experiencing adverse operating trends or market conditions. Non-financial reasons for rating a credit exposure Special Mention include, but are not limited to: management problems, pending litigations, ineffective loan agreement and/or inadequate loan documentation, structural weaknesses and/or lack of control over collateral.

Substandard - A substandard asset is inadequately protected by the current sound worth or paying capacity of the debtor or the collateral pledged. There exists one or more well defined weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility the Bank will experience some loss if the deficiencies are not corrected.

Doubtful - A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the Bank’s loan. These loans are in a work-out status and have a defined work-out strategy.

Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. The Bank takes losses in the period in which they become uncollectible.

The following credit risk standards are assigned to consumer loans:

Satisfactory - All consumer open-end and closed-end retail loans shall have an initial risk grade assigned of 3 - Satisfactory.

Substandard - All consumer open-end and closed-end retail loans past due 90 cumulative days from the contractual date will be classified as 7 - Substandard. If a consumer/retail loan customer files bankruptcy, the loan will be classified as 7 - Substandard regardless of payment history.

Loss - All closed-end retail loans that become past due 120 cumulative days and open-end retail loans that become past due 180 cumulative days from the contractual due date will be charged off as loss assets. The charge off will be taken by the end of the month in which the 120-day or 180-day time period elapses. All losses in retail credit will be recognized when the affiliate becomes aware of the loss, but in no case should the charge off exceed the time frames stated within this policy.

A loan is considered to be impaired when management determines that it is possible that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. The value of individually impaired loans is measured based on the present value of expected payments or using the fair value of the collateral less cost to sell if the loan is collateral dependent. Currently, it is management’s practice to classify all substandard or doubtful loans as impaired.

A summary of the Company’s impaired loans, including their respective regulatory classification and their respective specific reserve at March 31, 2017 and December 31, 2016 were as follows:

											Specific		Allowance
											Allowance		for Loans
			Special		Impaired Loans						for		not
March 31, 2017	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
			(Dollars in Thousands)
One-to-four family mortgages	$	154,341		55		3,230		—		157,626		—		1,097
Home equity line of credit		36,132		—		562		—		36,694		—		328
Junior liens		1,324		29		12		—		1,365		—		9
Multi-family		37,668		—		815		—		38,483		—		593
Construction		17,386		—		—		—		17,386		—		141
Land		12,020		431		7,691		—		20,142		105		328
Farmland		40,588		693		1,531		—		42,812		35		631
Non-residential real estate		202,168		1,518		10,247		—		213,933		53		1,288
Consumer loans		8,261		—		413		—		8,674		98		142
Commercial loans		82,857		254		1,844		—		84,955		201		1,115
Total	$	592,745		2,980		26,345		—		622,070		492		5,672

											Specific		Allowance
											Allowance		for Loans
			Special		Impaired Loans						for		not
December 31, 2016	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
			(Dollars in Thousands)
One-to-four family mortgages	$	145,965		744		1,253		—		147,962		—		852
Home equity line of credit		35,109		25		550		—		35,684		—		260
Junior liens		1,411		30		11		—		1,452		—		8
Multi-family		31,280		—		3,004		—		34,284		—		412
Construction		39,255		—		—		—		39,255		—		277
Land		15,581		35		8,224		—		23,840		1,036		724
Farmland		44,832		674		2,290		—		47,796		—		778
Non-residential real estate		172,395		3		10,542		—		182,940		—		964
Consumer loans		8,382		—		335		—		8,717		84		124
Commercial loans		85,174		603		3,130		—		88,907		28		565
Total	$	579,384		2,114		29,339		—		610,837		1,148		4,964

Impaired loans by classification type and the related valuation allowance amounts at March 31, 2017 were as follows:

							For the three month period ended
			At March 31, 2017				March 31, 2017
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
Impaired loans with no specific allowance	Investment		Balance		Allowance		Investment		Recognized
					(Dollars in Thousands)
One-to-four family mortgages	$	3,230		3,230		—		2,242		31
Home equity line of credit		562		562		—		556		10
Junior liens		12		12		—		12		—
Multi-family		815		815		—		1,910		10
Construction		—		—		—		—		—
Land		1,020		1,980		—		1,287		9
Farmland		1,005		1,005		—		1,648		13
Non-residential real estate		9,849		9,849		—		10,196		134
Consumer loans		18		18		—		9		—
Commercial loans		1,336		1,336		—		2,101		12
Total		17,847		18,807		—		19,961		219
Impaired loans with a specific allowance
One-to-four family mortgages		—		—		—		—		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		6,671		6,671		105		6,671		—
Farmland		526		526		35		263		—
Non-residential real estate		398		398		53		199		5
Consumer loans		395		395		98		365		—
Commercial loans		508		508		201		387		3
Total		8,498		8,498		492		7,885		8
Total impaired loans	$	26,345		27,305		492		27,846		227

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2016 were as follows:

							For the year ended
	At December 31, 2016						December 31, 2016
	(Dollars in Thousands)
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
Impaired loans with no specific allowance	Investment		Balance		Allowance		Investment		Recognized
One-to-four family mortgages	$	1,253		1,253		—		1,470		67
Home equity line of credit		550		550		—		390		24
Junior liens		11		11		—		13		1
Multi-family		3,004		3,004		—		3,005		172
Construction		—		—		—		—		—
Land		1,553		2,513		—		7,868		38
Farmland		2,290		2,290		—		1,563		120
Non-residential real estate		10,542		10,542		—		9,363		485
Consumer loans		—		—		—		21		1
Commercial loans		2,865		2,865		—		3,168		112
Total		22,068		23,028		—		26,861		1,020
Impaired loans with a specific allowance
One-to-four family mortgages		—		—		—		452		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		910		—
Construction		—		—		—		—		—
Land		6,671		6,671		1,036		1,811		485
Farmland		—		—		—		533		—
Non-residential real estate		—		—		—		—		—
Consumer loans		335		335		84		273		—
Commercial loans		265		265		28		754		24
Total		7,271		7,271		1,148		4,733		509
Total impaired loans	$	29,339		30,299		1,148		31,594		1,529

On a periodic basis, the Bank may modify the terms of certain loans. In evaluating whether a restructuring constitutes a troubled debt restructuring (TDR), Financial Accounting Standards Board (FASB) has issued Accounting Standards Update ASU 310 (ASU 310), A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring.

At December 31, 2016, the Company had eight loans, representing three lending relationships, classified as performing TDRs. During the three month period ended March 31, 2017, the Company removed one lending relationship from TDR status. That relationship, with two loans representing $2.2 million, has paid as agreed based on the original terms of their note for a period of at least six months. For the three month period ended March 31, 2017, no loans were added to TDR classification and all loans currently classified as TDR are current based on their revised terms.

The following table provides the number of loans remaining in each category as of March 31, 2017 and December 31, 2016 that the Company had previously modified in a TDR:

					Post Modification
			Pre-Modification		Outstanding Record
	Number of		Outstanding		Investment, net of
	Loans		Record Investment		related allowance
March 31, 2017
Multi-family		3	$	815,273		815,273
Non-residential real estate		3		3,421,915		3,421,915
December 31, 2016
Multi-family		3	$	815,273		815,273
Non-residential real estate		5		5,646,223		5,646,223

There were no loans as of March 31, 2017 that have been modified as TDRs and that subsequently defaulted within twelve months on their modified terms. At March 31, 2017, there are no commitments to lend additional funds to any borrower whose loan terms have been modified in a TDR.

XML

Foreclosed Assets

3 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

Foreclosed Assets

(6) FORECLOSED ASSETS

The Company’s foreclosed assets have been acquired through customer loan defaults. The property is recorded at the lower of cost or fair value less estimated cost to sell and carrying cost at the date acquired. Any difference between the book value and estimated market value is recognized as a charge off through the allowance for loan loss account. Additional losses on foreclosed assets may be determined on individual properties at specific intervals or at the time of disposal. In general, the Company will obtain a new appraisal on all foreclosed assets with a book balance in excess of $250,000 on an annual basis. Additional losses are recognized as a non-interest expense.

At March 31, 2017 and December 31, 2016, the Company had balances in foreclosed assets consisting of the following:

	March 31, 2017		December 31, 2016
	(Dollars in Thousands)
One-to-four family mortgages	$	135		135
Home equity line of credit		28		28
Multi-family real estate		1,775		1,775
Non-residential real estate		173		459
Total other assets owned	$	2,111		2,397

For the three month period ended March 31, 2017, the Company’s activity in foreclosed property included the following:

			Activity During 2017
	Balance							Reduction		Gain (Loss)		Balance
	12/31/2016		Foreclosure		Sales			in Values		on Sale		3/31/2017
	(Dollars in Thousands)
One-to-four family mortgages	$	135		—		—			—		—	$	135
HELOC		28		—		—			—		—		28
Multi-family		1,775		—		—			—		—		1,775
Non-residential real estate		459		43		(329	)		—		—		173
Total	$	2,397		43		(329	)		—		—	$	2,111

For the three month period ended March 31, 2016, the Company’s activity in foreclosed property included the following:

			Activity During 2016
	Balance							Reduction		Gain (Loss)			Balance
	12/31/2015		Foreclosure		Sales			in Values		on Sale			3/31/2016
	(Dollars in Thousands)
One-to-four family mortgages	$	55		—		—			—		—		$	55
HELOC		943		—		—			—		—			943
Non-residential real estate		738		—		(270	)		—		(9	)		459
Consumer		—		12		(12	)		—		—			—
Total	$	1,736		12		(282	)		—		(9	)	$	1,457

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Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

(7) FAIR VALUE OF ASSETS AND LIABILITIES

Accounting Standards Codification Topic (ASC) 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value. The statement establishes a fair value hierarchy which requires an entity to maximize the use of observable input and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value.

• Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

• Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following are the significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments:

Cash and due from banks

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns.

Interest-bearing deposits

The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns.

Available-for-sale securities

Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement.

FHLB stock

The fair value of FHLB stock is recognized at cost.

Loans held for sale

Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income.

Loans receivable

The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan.

Accrued interest receivable

Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value.

Deposits

The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits.

Advances from borrowers for taxes and insurance

The carrying amount of advances from borrowers for taxes and insurance approximates its fair value.

Advances from the Federal Home Loan Bank (FHLB)

The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained.

Repurchase agreements

Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements.

Subordinated debentures

The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%.

Fair Value Measurements on a Recurring Basis

Where quoted prices are available for identical securities in an active market, securities available for sale are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy.

The assets and liabilities measured at fair value on a recurring basis at March 31, 2017 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 3/31/2017		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Securities available for sale
U.S. Treasury securities		2,000		2,000		—		—
U.S. Agency securities		90,755		—		90,755		—
Taxable municipals		2,171		—		2,171		—
Tax-free municipals		34,113		—		34,113		—
Trust preferred securities		1,732		—		—		1,732
Mortgage backed securities		76,809		—		76,809		—
Total		207,580		2,000		203,848		1,732

The assets and liabilities measured at fair value on a recurring basis at December 31, 2016 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 12/31/2016		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Securities available for sale
U.S. Treasury securities		2,001		2,001		—		—
U.S. Agency securities		84,012		—		84,012		—
Taxable municipals		2,727		—		2,727		—
Tax-free municipals		33,911		—		33,911		—
Trust preferred securities		1,817		—		—		1,817
Mortgage backed securities		85,012		—		85,012		—
Total		209,480		2,001		205,662		1,817

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for March 31, 2017:

	Total carrying		Quoted Prices		Significant
	value in the		In Active		Other		Significant
	consolidated		Markets for		Observable		Unobservable
	balance sheet at		Identical Assets		Inputs		Inputs
Description	March 31, 2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	2,111		—		—	$	2,111
Impaired loans, net of allowance	$	8,006		—		—	$	8,006

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for December 31, 2016:

	Total carrying		Quoted Prices		Significant
	value in the		In Active		Other		Significant
	consolidated		Markets for		Observable		Unobservable
	balance sheet at		Identical Assets		Inputs		Inputs
Description	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	2,397		—		—	$	2,397
Impaired loans, net of allowance	$	6,123		—		—	$	6,123

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a recurring and non-recurring basis at March 31, 2017 and December 31, 2016:

Level 3 Significant Unobservable Input Assumptions
							Quantitative Range
	Fair		Valuation		Unobservable		of Unobservable
`	Value		Technique		Input		Inputs
			(Dollars in Thousands)
March 31, 2017
Assets measured on a non-recurring basis
Foreclosed assets	$	2,111		Discount to appraised value of collateral		Appraisal comparability adjustments		30% to 55%
Impaired loans		8,006		Discount to appraised value of collateral		Appraisal comparability adjustments		10% to 25%
Asset measured on a recurring basis
Trust preferred securities		1,732		Discounted cash flow Spread to Libor swap curve		Compare to quotes for sale when available		One month libor 4% to 6%
December 31, 2016
Assets measured on a non-recurring basis
Foreclosed assets	$	2,397		Discount to appraised value of collateral		Appraisal comparability adjustments		30% to 55%
Impaired loans		6,123		Discount to appraised value of collateral		Appraisal comparability adjustments		10% to 15%
Asset measured on a recurring basis
Trust preferred securities		1,817		Discounted cash flow Spread to Libor swap curve		Compare to quotes for sale when available		One month libor 4% to 6%

Foreclosed assets and impaired loans are valued at fair value, less cost to sell. Fair value of a foreclosed asset is determined by an appraised value of the underlying collateral to which a discount is applied. Management establishes the discount or adjustments based on recent sales and any unique features the collateral may possess. Management also considers the anticipated selling cost associated with the collateral when establishing the discounted percentage. Management may adjust the discounts based on the most recent sales of comparable collateral.

The Company bases the value of its trust preferred security on a quarterly review of SEC filings by the issuer to ascertain overall financial strength. Based on the analysis, the Company then reviews the Libor swap curve to analyze the overall yield of our investment as compared to long-term swap rates. On rare occasions, the Company may receive an offer from a broker to purchase similar type instruments and the Company will analyze these offerings as compared to our investment.

The table below includes a roll-forward of the consolidated condensed statement of financial condition items for the three month periods ended March 31, 2017 and March 31, 2016, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify an asset or liability within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 assets and liabilities typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.

	2017			2016
Three month period ended March 31,	Other Assets			Other Assets
	(Dollars in Thousands)
Fair value, January 1	$	1,817			1,865
Change in unrealized losses included in other comprehensive income for assets and liabilities still held at March 31		(89	)		105
Accretion of previously discounted amounts		4			4
Purchases, issuances and settlements, net		—			—
Transfers in and/or out of Level 3		—			—
Fair value, March 31	$	1,732			1,974

The estimated fair values of financial instruments were as follows at March 31, 2017:

	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
					(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	30,663		30,663		30,663		—		—
Interest-bearing deposits		19,408		19,408		19,408		—		—
Securities available for sale		207,580		207,580		2,000		203,848		1,732
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,091		1,091		—		1,091		—
Loans receivable		615,480		600,288		—		—		600,288
Accrued interest receivable		3,121		3,121		—		—		3,121
Financial liabilities:
Deposits		765,743		766,415		—		766,415		—
Advances from borrowers for taxes and insurance		867		867		—		867		—
Advances from Federal Home Loan Bank		11,000		10,999		—		10,999		—
Repurchase agreements		45,492		45,492		—		45,492		—
Subordinated debentures		10,310		10,099		—		—		10,099

The estimated fair values of financial instruments were as follows at December 31, 2016:

	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
					(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	21,779		21,779		21,779		—		—
Interest-bearing deposits		3,970		3,970		3,970		—		—
Securities available for sale		209,480		209,480		2,001		205,662		1,817
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,094		1,094		—		1,094		—
Loans receivable		604,286		593,257		—		—		593,257
Accrued interest receivable		3,799		3,799		—		—		3,799
Financial liabilities:
Deposits		732,882		732,942		—		732,942		—
Advances from borrowers for taxes and insurance		766		766		—		766		—
Advances from Federal Home Loan Bank		11,000		10,979		—		10,979		—
Repurchase agreements		47,655		47,655		—		47,655		—
Subordinated debentures		10,310		10,099		—		—		10,099

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Effect of New Accounting Pronouncements

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Effect of New Accounting Pronouncements

(8) EFFECT OF NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued new guidance related to “Revenue from Contracts with Customers.” This guidance supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the ASC. The guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016; however, the FASB has agreed to a one-year deferral of the effective date to December 15, 2017. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements.

ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective on January 1, 2018. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements.

ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019, and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Management is currently evaluating the potential impact of ASU 2016-02 on the Company’s consolidated financial statements.

ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 was effective beginning January 1, 2017. The implementation of ASU 2016-05 did not have a material impact on the Company’s consolidated financial statements.

ASU 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective beginning January 1, 2017. The implementation of ASU 2016-07 did not have a material impact on the Company’s consolidated financial statements.

ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective beginning January 1, 2017. The implementation of ASU 2016-09 did not have a material effect on the Company’s consolidated financial statements.

On June 16, 2016, the FASB released its finalized ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments to U.S. GAAP require businesses and other organization to measure the expected credit losses on financial assets, such as loans, securities, bond insurance, and many receivables. The accounting changes apply to instruments recorded on balance sheets at their historical cost, although there are some limited changes to the accounting for debt instruments classified as available-for-sale. Write-downs will be based on historical information, current business conditions, and forecasts, and it expects the forecasts are expected to improve the loss estimates on financial assets that are losing value. The techniques that are employed today to write down loans and other instruments can still be used, although the variables for calculating the losses are expected to change. ASU 2016-13 will become effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Companies are permitted to adopt ASU 2016-13 in fiscal years beginning after December 15, 2018. Management is currently evaluating the potential impact of this ASU on the Company’s consolidated financial statements.

ASU 2016-15 “Statement of Cash Flows (Topic 230)” (“ASU 2016-15”) is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption was permitted with retrospective application. Management is evaluating the impact that the adoption of ASU 2016-15 will have on the Company’s consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

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Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

(9) INCOME TAXES

The Company files consolidated federal income tax returns and Tennessee excise tax returns. The Company files consolidated Kentucky income tax returns. The Bank is exempt from Kentucky corporate income tax. The Company has no unrecognized tax benefits and has not accrued any interest or penalties for uncertain tax positions. The effective tax rate differs from the statutory federal rate of 35% and Tennessee excise rate of 6.5% due to investments in qualified municipal securities, bank owned life insurance, income apportioned to Kentucky and certain non-deductible expenses. The Company’s effective tax rate for the three month periods ended March 31, 2017 and March 31, 2016 was 12.6% and 8.3%, respectively. The Company’s effective federal income tax rate varies significantly from our federal statutory tax rate for a variety of factors, including:

The Company’s investment in Fort Webb LP, LLC generates tax credits and depreciation expense that the Company can use to offset taxable income. At March 31, 2017 and December 31, 2016, the Company’s balance sheet did not include any equity investment in Fort Webb. The Company has other investments that produce both tax credits and depreciation expense that may be used to offset net income.

At March 31, 2017, the Company has $10.1 million in bank owned life insurance policies. The income generated from these policies increase the cash flow of the policies on a tax free basis. Life insurance proceeds are paid upon the death of a covered party. These proceeds, netted against the current cash value of the policy, result in tax free income to the Company. For the three month period ended March 31, 2017, the Company received additional income of approximately $170,000 from the net proceeds of a life insurance policy.

At March 31, 2017, the Company’s investment portfolio includes $34.1 million of tax free municipal bonds. Interest income on this portfolio, after netting out a disallowance for interest expense attributable to this portfolio, is tax exempt.

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Esop

3 Months Ended

Mar. 31, 2017

Text Block [Abstract]

Esop

(10) ESOP

Substantially all of the Company’s employees who are at least 21 years old and have one year of employment with the Company participate in the 2015 HopFed Bancorp, Inc. Employee Stock Ownership Plan (“ESOP”). The ESOP purchased 600,000 shares of the Company’s common stock from the Company on March 2, 2015, at $13.14 per share. The ESOP borrowed $7.9 million from an open-end line of credit from the Company for the purchase of the stock, using the 600,000 shares of common stock as collateral. The Company makes discretionary contributions to the ESOP. The ESOP utilizes these contributions along with the dividends on the 600,000 held by the ESOP to repay the loan from the Company. When loan payments are made, ESOP shares are released based on reduction in the principal balance of the loan. The shares are allocated to participants based on relative compensation.

Employees who are not employed on December 31st of each year are not eligible for participation in the ESOP. The Company anticipates that loan payments will be made at the end of each year. Participants receive shares at the end of employment. The Company has the option to repurchase the shares or provide the shares directly to the employee.

The Company made its second ESOP loan payment in December 2016. At March 31, 2017, the Company’s accrued liability for the loan payment is $195,000. At March 31, 2017 and December 31, 2016, shares held by the ESOP were as follows:

	March 31, 2017		December 31, 2016
Accrued for allocation to participants		10,185		—
Earned ESOP shares		101,654		101,654
Unearned ESOP shares		488,161		498,346
Total ESOP shares		600,000		600,000
Fair value of unearned shares	$	6,990,466	$	6,707,737

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(11) COMMITMENTS AND CONTINGENCIES

At March 31, 2017, the Bank had $32.1 million in outstanding commitments on revolving home equity lines of credit, $19.4 million in outstanding commitments on revolving personal lines of credit and $43.9 million in commitments to originate loans and undisbursed commitments on commercial lines of credit of $48.7 million. At March 31, 2017, the Company had $287,000 in standby letters of credit outstanding.

At March 31, 2017, the Company has $43.1 million in times deposits greater than $100,000 but less than $250,000 that are scheduled to mature in one year and $47.6 million in time deposits with balances greater than $250,000 that are scheduled to mature in one year or less.

The Bank’s FHLB borrowings are secured by a blanket security agreement pledging the Bank’s 1-4 family first mortgage loans and non-residential real estate loans. At March 31, 2017 and December 31, 2016, the Bank has pledged all eligible 1-4 family first mortgages. At March 31, 2017 and December 31, 2016 the Bank has outstanding borrowings of $11.0 million from the FHLB. A schedule of FHLB borrowings at March 31, 2017 and December 31, 2016 is provided below:

Outstanding Balance		Rate			Maturity
(Dollars in Thousands)
$	5,000		0.88	%		10/06/2017
	6,000		1.18	%		07/06/2018
$	11,000		1.04	%

The Federal Home Loan Bank of Cincinnati has issued letters of credit in the Bank’s name totaling $45.5 million secured by the Bank’s loan portfolio to secure additional municipal deposits. At March 31, 2017, securities with a book value of approximately $45.2 million and a market value of $45.5 million were sold under agreements to repurchase from various customers.

The Company is a party to certain ordinary course litigation, and the Company intends to vigorously defend itself in all such matters. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such ordinary course litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

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Regulatory Matters

3 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

Regulatory Matters

(12) REGULATORY MATTERS

The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a total risk-based capital ratio of 8% (unchanged from current rules); (iv) a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%.

The capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. For 2017, the capital conservation buffer is 1.25%. An institution is subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if capital levels fall below minimum plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

Under these new rules, Tier 1 capital generally consist of common stock (plus related surplus) and retained earnings, limited amounts of minority interest in the form of additional Tier 1 capital instruments, and non-cumulative preferred stock and related surplus, subject to certain eligibility standards, less goodwill and other specified intangible assets and other regulatory deductions. Cumulative preferred stock and trust preferred securities issued after May 19, 2010, will no longer qualify as Tier 1 capital, but such securities issued prior to May 19, 2010, including in the case of bank holding companies with less than $15.0 billion in total assets, trust preferred securities issued prior to that date, will continue to count as Tier 1 capital subject to certain limitations. The definition of Tier 2 capital is generally unchanged for most banking organizations, subject to certain new eligibility criteria.

Common equity Tier 1 capital generally consist of common stock (plus related surplus) and retained earnings plus limited amounts of minority interest in the form of common stock, less goodwill and other specified intangible assets and other regulatory deductions. The final rules allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company has made the decision to opt-out of this requirement.

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 tangible and core capital (as defined in the regulations) to adjusted total assets (as defined), and of total capital (as defined) and Tier 1 to risk weighted assets (as defined). The minimum required capital amounts presented include the minimum required capital levels as of March 31, 2017 and December 31, 2016 based on the phase-in provisions of Basel III Capital Rules. Management believes, as of March 31, 2017 and December 31, 2016, that the Bank meets all capital adequacy requirements to which it is subject.

The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of March 31, 2017 and December 31, 2016 are presented below:

											To be Well
						Minimum Capital					Capitalized for
						Required – Basel III					Prompt Corrective
	Actual					Phase-In Schedule					Action Provisions
As of March 31, 2017	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Tier 1 leverage capital to adjusted total assets
Company	$	94,592		10.6	%	$	35,876		4.0	%	$	44,845		5.0	%
Bank	$	93,585		10.5	%	$	35,752		4.0	%	$	44,690		5.0	%
Total capital to risk weighted assets
Company	$	100,756		16.1	%	$	57,792		9.25	%	$	62,478		10.0	%
Bank	$	99,749		16.0	%	$	57,664		9.25	%	$	62,339		10.0	%
Tier 1 capital to risk weighted assets
Company	$	94,592		15.1	%	$	45,297		7.25	%	$	49,983		8.0	%
Bank	$	93,585		15.0	%	$	45,196		7.25	%	$	49,871		8.0	%
Common equity tier 1 capital to risk weighted assets
Company	$	94,592		15.1	%	$	35,925		5.75	%		n/a		n/a
Bank	$	93,585		15.0	%	$	35,845		5.75	%	$	40,520		6.5	%
As of December 31, 2016
Tier 1 leverage capital to adjusted total assets
Company	$	92,803		10.8	%	$	34,392		4.0	%	$	42,990		5.0	%
Bank	$	91,617		10.7	%	$	34,315		4.0	%	$	42,894		5.0	%
Total capital to risk weighted assets
Company	$	98,915		16.2	%	$	52,682		8.625	%	$	61,080		10.0	%
Bank	$	97,729		16.0	%	$	52,561		8.625	%	$	60,941		10.0	%
Tier 1 capital to risk weighted assets
Company	$	92,803		15.2	%	$	40,466		6.625	%	$	48,864		8.0	%
Bank	$	91,617		15.0	%	$	40,373		6.625	%	$	48,753		8.0	%
Common equity tier 1 capital to risk weighted assets
Company	$	92,803		15.2	%	$	31,304		5.125	%		n/a		n/a
Bank	$	91,617		15.0	%	$	31,232		5.125	%	$	39,611		6.5	%

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Fair Value of Assets and Liabilities (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Fair Value Measurement

Accounting Standards Codification Topic (ASC) 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value. The statement establishes a fair value hierarchy which requires an entity to maximize the use of observable input and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value.

• Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

• Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following are the significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments:

Cash and due from banks

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns.

Interest-bearing deposits

The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns.

Available-for-sale securities

Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement.

FHLB stock

The fair value of FHLB stock is recognized at cost.

Loans held for sale

Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income.

Loans receivable

The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan.

Accrued interest receivable

Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value.

Deposits

The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits.

Advances from borrowers for taxes and insurance

The carrying amount of advances from borrowers for taxes and insurance approximates its fair value.

Advances from the Federal Home Loan Bank (FHLB)

The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained.

Repurchase agreements

Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements.

Subordinated debentures

The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%.

Revenue from Contracts with Customers

In May 2014, the FASB issued new guidance related to “Revenue from Contracts with Customers.” This guidance supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the ASC. The guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016; however, the FASB has agreed to a one-year deferral of the effective date to December 15, 2017. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements.

Financial Instruments

ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective on January 1, 2018. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements.

Leases

ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019, and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Management is currently evaluating the potential impact of ASU 2016-02 on the Company’s consolidated financial statements.

Derivatives and Hedging

ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 was effective beginning January 1, 2017. The implementation of ASU 2016-05 did not have a material impact on the Company’s consolidated financial statements.

Investments-Equity Method and Joint Ventures

ASU 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective beginning January 1, 2017. The implementation of ASU 2016-07 did not have a material impact on the Company’s consolidated financial statements.

Compensation - Stock Compensation

ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective beginning January 1, 2017. The implementation of ASU 2016-09 did not have a material effect on the Company’s consolidated financial statements.

On June 16, 2016, the FASB released its finalized ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments to U.S. GAAP require businesses and other organization to measure the expected credit losses on financial assets, such as loans, securities, bond insurance, and many receivables. The accounting changes apply to instruments recorded on balance sheets at their historical cost, although there are some limited changes to the accounting for debt instruments classified as available-for-sale. Write-downs will be based on historical information, current business conditions, and forecasts, and it expects the forecasts are expected to improve the loss estimates on financial assets that are losing value. The techniques that are employed today to write down loans and other instruments can still be used, although the variables for calculating the losses are expected to change. ASU 2016-13 will become effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Companies are permitted to adopt ASU 2016-13 in fiscal years beginning after December 15, 2018. Management is currently evaluating the potential impact of this ASU on the Company’s consolidated financial statements.

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Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Income (Loss) Per Share

	March 31,
	2017		2016
Basic IPS:
Net income	$	935,000	$	509,000
Average common shares outstanding		6,218,706		6,297,755
Net income per share	$	0.15	$	0.08
Diluted IPS:
Net income	$	935,000	$	509,000
Average common shares outstanding		6,218,706		6,297,755
Dilutive effect of stock options		—		—
Average diluted shares outstanding		6,218,706		6,297,755
Net income per share, diluted	$	0.15	$	0.08

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Stock Compensation (Tables)

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Company's Future Compensation Expense Related to Restricted Stock Vesting

The table below provides a detail of the Company’s future compensation expense related to restricted stock vesting as of March 31, 2017 (Dollars in Thousands):

Year Ending December 31,	Future Expense
2017	$	57
2018		54
2019		9
2020		2
Total	$	122

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Securities (Tables)

3 Months Ended

Mar. 31, 2017

Cash and Cash Equivalents [Abstract]

Amortized Cost of Securities and their Estimated Fair Values

The carrying amount of securities and their estimated fair values at March 31, 2017 were as follows:

	March 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Available for sale:
U.S. Treasury securities	$	2,000		—		—			2,000
U.S. Agency securities		90,294		929		(468	)		90,755
Taxable municipal bonds		2,164		16		(9	)		2,171
Tax free municipal bonds		33,052		1,128		(67	)		34,113
Trust preferred securities		1,638		94		—			1,732
Mortgage backed securities		77,334		374		(899	)		76,809
	$	206,482		2,541		(1,443	)		207,580

The carrying amount of securities and their estimated fair values at December 31, 2016 were as follows:

	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Available for sale:
U.S. Treasury securities		2,000		1		—			2,001
U.S. Agency securities		83,667		983		(638	)		84,012
Taxable municipal bonds		2,720		17		(10	)		2,727
Tax free municipal bonds		33,004		1,081		(174	)		33,911
Trust preferred securities		1,634		183		—			1,817
Mortgage-backed securities		85,626		437		(1,051	)		85,012
	$	208,651		2,702		(1,873	)		209,480

Maturities of Debt Securities Available for Sale

The scheduled maturities of debt securities available for sale at March 31, 2017 were as follows:

			Estimated
	Amortized		Fair
	Cost		Value
	(Dollars in Thousands)
Due within one year	$	6,622	$	6,624
Due in one to five years		20,553		20,748
Due in five to ten years		30,572		30,878
Due after ten years		11,024		11,515
		68,771		69,765
Amortizing agency bonds		60,377		61,006
Mortgage-backed securities		77,334		76,809
Total securities available for sale	$	206,482	$	207,580

Estimated Fair Value and Unrealized Loss Amounts of Impaired Investments

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of March 31, 2017 were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	43,756		(419	)		3,380		(49	)		47,136		(468	)
Taxable municipals		794		(9	)		—		—			794		(9	)
Tax free municipals		5,408		(67	)		—		—			5,408		(67	)
Mortgage-backed securities		48,365		(654	)		8,369		(245	)		56,734		(899	)
Total available for sale	$	98,323		(1,149	)		11,749		(294	)		110,072		(1,443	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2016 were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	41,963		(597	)		3,459		(41	)		45,422		(638	)
Taxable municipals		1,347		(10	)		—		—			1,347		(10	)
Tax free municipals		7,369		(174	)		—		—			7,369		(174	)
Mortgage-backed securities		48,462		(796	)		7,439		(255	)		55,901		(1,051	)
Total available for sale	$	99,141		(1,577	)		10,898		(296	)		110,039		(1,873	)

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Loans (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Composition of Loan Portfolio By Type of Loan

At March 31, 2017 and December 31, 2016, there were no concentrations of loans exceeding 10% of total loans other than as disclosed below:

	March 31, 2017			December 31, 2016
	(Dollars in Thousands)
Real estate loans:
One-to-four family first mortgages	$	157,626			147,962
Home equity lines of credit		36,694			35,684
Junior liens		1,365			1,452
Multi-family		38,483			34,284
Construction		17,386			39,255
Land		20,142			23,840
Farmland		42,812			47,796
Non-residential real estate		213,933			182,940
Total mortgage loans		528,441			513,213
Consumer loans		8,674			8,717
Commercial loans		84,955			88,907
Total other loans		93,629			97,624
Total loans, gross		622,070			610,837
Deferred loan fees, net of costs		(426	)		(439	)
Less allowance for loan losses		(6,164	)		(6,112	)
Total loans, net	$	615,480		$	604,286

Allowance for Loan Loss Account by Loan

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the three month period ended March 31, 2017 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2016		2017			2017		2017			2017			3/31/2017
One-to-four family mortgages	$	852		—			3		245			(3	)		1,097
Home equity line of credit		260		—			2		68			(2	)		328
Junior liens		8		—			1		1			(1	)		9
Multi-family		412		—			—		181			—			593
Construction		277		—			—		(136	)		—			141
Land		1,760		—			—		(396	)		(931	)		433
Farmland		778		—			—		(147	)		35			666
Non-residential real estate		964		—			6		324			47			1,341
Consumer loans		208		(68	)		33		18			49			240
Commercial loans		593		(224	)		8		551			388			1,316
Total	$	6,112		(292	)		53		709			(418	)		6,164

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the year ended December 31, 2016 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2015		2016			2016		2016			2016			12/31/2016
One-to-four family mortgages	$	1,030		—			167		(118	)		(227	)		852
Home equity line of credit		201		(30	)		14		59			16			260
Junior liens		8		—			14		—			(14	)		8
Multi-family		227		(421	)		—		323			283			412
Construction		377		—			—		(100	)		—			277
Land		1,379		—			—		(586	)		967			1,760
Farmland		358		—			—		420			—			778
Non-residential real estate		1,139		—			10		(41	)		(144	)		964
Consumer loans		358		(422	)		293		(187	)		166			208
Commercial loans		623		(595	)		141		122			302			593
Total	$	5,700		(1,468	)		639		(108	)		1,349			6,112

Loan Balances by Loan Classification Allocated Between Past Due Performing and Non-performing

The table below presents past due and non-accrual balances at March 31, 2017 by loan classification allocated between performing and non-performing:

			30 - 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	153,653		688		248		55		2,982		—	$	157,626
Home equity line of credit		36,132		—		402		—		160		—		36,694
Junior liens		1,320		4		—		29		12		—		1,365
Multi-family		37,668		—		—		—		815		—		38,483
Construction		17,386		—		—		—		—		—		17,386
Land		12,020		—		7,234		431		457		—		20,142
Farmland		40,588		—		338		693		1,193		—		42,812
Non-residential real estate		202,168		—		210		1,518		10,037		—		213,933
Consumer loans		8,239		22		119		—		294		—		8,674
Commercial loans		82,825		32		393		254		1,451		—		84,955
Total	$	591,999		746		8,944		2,980		17,401		—	$	622,070

The table below presents past due and non-accrual balances at December 31, 2016 by loan classification allocated between performing and non-performing:

			30 - 89		Non-				Impaired Loans
	Currently		Days		Accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages		145,069		896		270		744		983		—		147,962
Home equity line of credit		35,087		22		402		25		148		—		35,684
Junior liens		1,407		4		—		30		11		—		1,452
Multi-family		31,280		—		—		—		3,004		—		34,284
Construction		39,255		—		—		—		—		—		39,255
Land		15,581		—		7,675		35		549		—		23,840
Farmland		44,832		—		—		674		2,290		—		47,796
Non-residential real estate		172,395		—		208		3		10,334		—		182,940
Consumer loans		8,354		28		3		—		332		—		8,717
Commercial loans		84,913		261		516		603		2,614		—		88,907
Total		578,173		1,211		9,074		2,114		20,265		—		610,837

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2017 and December 31, 2016, by portfolio segment and based on the impairment method as of March 31, 2017 and December 31, 2016.

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
					(Dollars in Thousands)
March 31, 2017:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	201		105		88		—		98	$	492
Collectively evaluated for impairment		1,115		469		2,512		1,434		142		5,672
Total ending allowance balance	$	1,316		574		2,600		1,434		240	$	6,164
Loans:
Loans individually evaluated for impairment	$	1,844		7,691		12,593		3,804		413	$	26,345
Loans collectively evaluated for impairment		83,111		29,837		282,635		191,881		8,261		595,725
Total ending loans balance	$	84,955		37,528		295,228		195,685		8,674	$	622,070

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
					(Dollars in Thousands)
December 31, 2016:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	28		1,036		—		—		84	$	1,148
Collectively evaluated for impairment		565		1,001		2,154		1,120		124		4,964
Total ending allowance balance	$	593		2,037		2,154		1,120		208	$	6,112
Loans:
Loans individually evaluated for impairment	$	3,130		8,224		15,836		1,814		335	$	29,339
Loans collectively evaluated for impairment		85,777		54,871		249,184		183,284		8,382		581,498
Total ending loans balance	$	88,907		63,095		265,020		185,098		8,717	$	610,837

Summary of Company's Impaired Loans, Including Respective Regulatory Classification and Respective Specific Reserve

A summary of the Company’s impaired loans, including their respective regulatory classification and their respective specific reserve at March 31, 2017 and December 31, 2016 were as follows:

											Specific		Allowance
											Allowance		for Loans
			Special		Impaired Loans						for		not
March 31, 2017	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
			(Dollars in Thousands)
One-to-four family mortgages	$	154,341		55		3,230		—		157,626		—		1,097
Home equity line of credit		36,132		—		562		—		36,694		—		328
Junior liens		1,324		29		12		—		1,365		—		9
Multi-family		37,668		—		815		—		38,483		—		593
Construction		17,386		—		—		—		17,386		—		141
Land		12,020		431		7,691		—		20,142		105		328
Farmland		40,588		693		1,531		—		42,812		35		631
Non-residential real estate		202,168		1,518		10,247		—		213,933		53		1,288
Consumer loans		8,261		—		413		—		8,674		98		142
Commercial loans		82,857		254		1,844		—		84,955		201		1,115
Total	$	592,745		2,980		26,345		—		622,070		492		5,672

											Specific		Allowance
											Allowance		for Loans
			Special		Impaired Loans						for		not
December 31, 2016	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
			(Dollars in Thousands)
One-to-four family mortgages	$	145,965		744		1,253		—		147,962		—		852
Home equity line of credit		35,109		25		550		—		35,684		—		260
Junior liens		1,411		30		11		—		1,452		—		8
Multi-family		31,280		—		3,004		—		34,284		—		412
Construction		39,255		—		—		—		39,255		—		277
Land		15,581		35		8,224		—		23,840		1,036		724
Farmland		44,832		674		2,290		—		47,796		—		778
Non-residential real estate		172,395		3		10,542		—		182,940		—		964
Consumer loans		8,382		—		335		—		8,717		84		124
Commercial loans		85,174		603		3,130		—		88,907		28		565
Total	$	579,384		2,114		29,339		—		610,837		1,148		4,964

Impaired Loans by Classification Type

Impaired loans by classification type and the related valuation allowance amounts at March 31, 2017 were as follows:

							For the three month period ended
			At March 31, 2017				March 31, 2017
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
Impaired loans with no specific allowance	Investment		Balance		Allowance		Investment		Recognized
					(Dollars in Thousands)
One-to-four family mortgages	$	3,230		3,230		—		2,242		31
Home equity line of credit		562		562		—		556		10
Junior liens		12		12		—		12		—
Multi-family		815		815		—		1,910		10
Construction		—		—		—		—		—
Land		1,020		1,980		—		1,287		9
Farmland		1,005		1,005		—		1,648		13
Non-residential real estate		9,849		9,849		—		10,196		134
Consumer loans		18		18		—		9		—
Commercial loans		1,336		1,336		—		2,101		12
Total		17,847		18,807		—		19,961		219
Impaired loans with a specific allowance
One-to-four family mortgages		—		—		—		—		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		6,671		6,671		105		6,671		—
Farmland		526		526		35		263		—
Non-residential real estate		398		398		53		199		5
Consumer loans		395		395		98		365		—
Commercial loans		508		508		201		387		3
Total		8,498		8,498		492		7,885		8
Total impaired loans	$	26,345		27,305		492		27,846		227

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2016 were as follows:

							For the year ended
	At December 31, 2016						December 31, 2016
	(Dollars in Thousands)
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
Impaired loans with no specific allowance	Investment		Balance		Allowance		Investment		Recognized
One-to-four family mortgages	$	1,253		1,253		—		1,470		67
Home equity line of credit		550		550		—		390		24
Junior liens		11		11		—		13		1
Multi-family		3,004		3,004		—		3,005		172
Construction		—		—		—		—		—
Land		1,553		2,513		—		7,868		38
Farmland		2,290		2,290		—		1,563		120
Non-residential real estate		10,542		10,542		—		9,363		485
Consumer loans		—		—		—		21		1
Commercial loans		2,865		2,865		—		3,168		112
Total		22,068		23,028		—		26,861		1,020
Impaired loans with a specific allowance
One-to-four family mortgages		—		—		—		452		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		910		—
Construction		—		—		—		—		—
Land		6,671		6,671		1,036		1,811		485
Farmland		—		—		—		533		—
Non-residential real estate		—		—		—		—		—
Consumer loans		335		335		84		273		—
Commercial loans		265		265		28		754		24
Total		7,271		7,271		1,148		4,733		509
Total impaired loans	$	29,339		30,299		1,148		31,594		1,529

Summary of the Activity in Loans Classified as TDRs

The following table provides the number of loans remaining in each category as of March 31, 2017 and December 31, 2016 that the Company had previously modified in a TDR:

					Post Modification
			Pre-Modification		Outstanding Record
	Number of		Outstanding		Investment, net of
	Loans		Record Investment		related allowance
March 31, 2017
Multi-family		3	$	815,273		815,273
Non-residential real estate		3		3,421,915		3,421,915
December 31, 2016
Multi-family		3	$	815,273		815,273
Non-residential real estate		5		5,646,223		5,646,223

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Foreclosed Assets (Tables)

3 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

Presentation of Balances in Foreclosed Assets

At March 31, 2017 and December 31, 2016, the Company had balances in foreclosed assets consisting of the following:

	March 31, 2017		December 31, 2016
	(Dollars in Thousands)
One-to-four family mortgages	$	135		135
Home equity line of credit		28		28
Multi-family real estate		1,775		1,775
Non-residential real estate		173		459
Total other assets owned	$	2,111		2,397

Summary of Foreclosed Properties Activity

For the three month period ended March 31, 2017, the Company’s activity in foreclosed property included the following:

			Activity During 2017
	Balance							Reduction		Gain (Loss)		Balance
	12/31/2016		Foreclosure		Sales			in Values		on Sale		3/31/2017
	(Dollars in Thousands)
One-to-four family mortgages	$	135		—		—			—		—	$	135
HELOC		28		—		—			—		—		28
Multi-family		1,775		—		—			—		—		1,775
Non-residential real estate		459		43		(329	)		—		—		173
Total	$	2,397		43		(329	)		—		—	$	2,111

For the three month period ended March 31, 2016, the Company’s activity in foreclosed property included the following:

			Activity During 2016
	Balance							Reduction		Gain (Loss)			Balance
	12/31/2015		Foreclosure		Sales			in Values		on Sale			3/31/2016
	(Dollars in Thousands)
One-to-four family mortgages	$	55		—		—			—		—		$	55
HELOC		943		—		—			—		—			943
Non-residential real estate		738		—		(270	)		—		(9	)		459
Consumer		—		12		(12	)		—		—			—
Total	$	1,736		12		(282	)		—		(9	)	$	1,457

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Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The assets and liabilities measured at fair value on a recurring basis at March 31, 2017 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 3/31/2017		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Securities available for sale
U.S. Treasury securities		2,000		2,000		—		—
U.S. Agency securities		90,755		—		90,755		—
Taxable municipals		2,171		—		2,171		—
Tax-free municipals		34,113		—		34,113		—
Trust preferred securities		1,732		—		—		1,732
Mortgage backed securities		76,809		—		76,809		—
Total		207,580		2,000		203,848		1,732

The assets and liabilities measured at fair value on a recurring basis at December 31, 2016 are summarized below:

Description	Total carrying value in the consolidated balance sheet at 12/31/2016		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Assets
Securities available for sale
U.S. Treasury securities		2,001		2,001		—		—
U.S. Agency securities		84,012		—		84,012		—
Taxable municipals		2,727		—		2,727		—
Tax-free municipals		33,911		—		33,911		—
Trust preferred securities		1,817		—		—		1,817
Mortgage backed securities		85,012		—		85,012		—
Total		209,480		2,001		205,662		1,817

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for March 31, 2017:

	Total carrying		Quoted Prices		Significant
	value in the		In Active		Other		Significant
	consolidated		Markets for		Observable		Unobservable
	balance sheet at		Identical Assets		Inputs		Inputs
Description	March 31, 2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	2,111		—		—	$	2,111
Impaired loans, net of allowance	$	8,006		—		—	$	8,006

The assets and liabilities measured at fair value on a non-recurring basis are summarized below for December 31, 2016:

	Total carrying		Quoted Prices		Significant
	value in the		In Active		Other		Significant
	consolidated		Markets for		Observable		Unobservable
	balance sheet at		Identical Assets		Inputs		Inputs
Description	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in Thousands)
Assets
Foreclosed assets	$	2,397		—		—	$	2,397
Impaired loans, net of allowance	$	6,123		—		—	$	6,123

Quantitative Information about Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a recurring and non-recurring basis at March 31, 2017 and December 31, 2016:

Level 3 Significant Unobservable Input Assumptions
							Quantitative Range
	Fair		Valuation		Unobservable		of Unobservable
`	Value		Technique		Input		Inputs
			(Dollars in Thousands)
March 31, 2017
Assets measured on a non-recurring basis
Foreclosed assets	$	2,111		Discount to appraised value of collateral		Appraisal comparability adjustments		30% to 55%
Impaired loans		8,006		Discount to appraised value of collateral		Appraisal comparability adjustments		10% to 25%
Asset measured on a recurring basis
Trust preferred securities		1,732		Discounted cash flow Spread to Libor swap curve		Compare to quotes for sale when available		One month libor 4% to 6%
December 31, 2016
Assets measured on a non-recurring basis
Foreclosed assets	$	2,397		Discount to appraised value of collateral		Appraisal comparability adjustments		30% to 55%
Impaired loans		6,123		Discount to appraised value of collateral		Appraisal comparability adjustments		10% to 15%
Asset measured on a recurring basis
Trust preferred securities		1,817		Discounted cash flow Spread to Libor swap curve		Compare to quotes for sale when available		One month libor 4% to 6%

Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items

The table below includes a roll-forward of the consolidated condensed statement of financial condition items for the three month periods ended March 31, 2017 and March 31, 2016, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify an asset or liability within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 assets and liabilities typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.

	2017			2016
Three month period ended March 31,	Other Assets			Other Assets
	(Dollars in Thousands)
Fair value, January 1	$	1,817			1,865
Change in unrealized losses included in other comprehensive income for assets and liabilities still held at March 31		(89	)		105
Accretion of previously discounted amounts		4			4
Purchases, issuances and settlements, net		—			—
Transfers in and/or out of Level 3		—			—
Fair value, March 31	$	1,732			1,974

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows at March 31, 2017:

	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
					(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	30,663		30,663		30,663		—		—
Interest-bearing deposits		19,408		19,408		19,408		—		—
Securities available for sale		207,580		207,580		2,000		203,848		1,732
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,091		1,091		—		1,091		—
Loans receivable		615,480		600,288		—		—		600,288
Accrued interest receivable		3,121		3,121		—		—		3,121
Financial liabilities:
Deposits		765,743		766,415		—		766,415		—
Advances from borrowers for taxes and insurance		867		867		—		867		—
Advances from Federal Home Loan Bank		11,000		10,999		—		10,999		—
Repurchase agreements		45,492		45,492		—		45,492		—
Subordinated debentures		10,310		10,099		—		—		10,099

The estimated fair values of financial instruments were as follows at December 31, 2016:

	Carrying Amount		Estimated Fair Value		Quoted Prices In Active Markets for Identical Assets Level 1		Using Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
					(Dollars in Thousands)
Financial Assets:
Cash and due from banks	$	21,779		21,779		21,779		—		—
Interest-bearing deposits		3,970		3,970		3,970		—		—
Securities available for sale		209,480		209,480		2,001		205,662		1,817
Federal Home Loan Bank stock		4,428		4,428		—		—		4,428
Loans held for sale		1,094		1,094		—		1,094		—
Loans receivable		604,286		593,257		—		—		593,257
Accrued interest receivable		3,799		3,799		—		—		3,799
Financial liabilities:
Deposits		732,882		732,942		—		732,942		—
Advances from borrowers for taxes and insurance		766		766		—		766		—
Advances from Federal Home Loan Bank		11,000		10,979		—		10,979		—
Repurchase agreements		47,655		47,655		—		47,655		—
Subordinated debentures		10,310		10,099		—		—		10,099

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Esop (Tables)

3 Months Ended

Mar. 31, 2017

Text Block [Abstract]

Summary of Shares Held by Employee Stock Ownership Plan (ESOP)

At March 31, 2017 and December 31, 2016, shares held by the ESOP were as follows:

	March 31, 2017		December 31, 2016
Accrued for allocation to participants		10,185		—
Earned ESOP shares		101,654		101,654
Unearned ESOP shares		488,161		498,346
Total ESOP shares		600,000		600,000
Fair value of unearned shares	$	6,990,466	$	6,707,737

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of FHLB Borrowings

A schedule of FHLB borrowings at March 31, 2017 and December 31, 2016 is provided below:

Outstanding Balance		Rate			Maturity
(Dollars in Thousands)
$	5,000		0.88	%		10/06/2017
	6,000		1.18	%		07/06/2018
$	11,000		1.04	%

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Regulatory Matters (Tables)

3 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios

The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of March 31, 2017 and December 31, 2016 are presented below:

											To be Well
						Minimum Capital					Capitalized for
						Required – Basel III					Prompt Corrective
	Actual					Phase-In Schedule					Action Provisions
As of March 31, 2017	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Tier 1 leverage capital to adjusted total assets
Company	$	94,592		10.6	%	$	35,876		4.0	%	$	44,845		5.0	%
Bank	$	93,585		10.5	%	$	35,752		4.0	%	$	44,690		5.0	%
Total capital to risk weighted assets
Company	$	100,756		16.1	%	$	57,792		9.25	%	$	62,478		10.0	%
Bank	$	99,749		16.0	%	$	57,664		9.25	%	$	62,339		10.0	%
Tier 1 capital to risk weighted assets
Company	$	94,592		15.1	%	$	45,297		7.25	%	$	49,983		8.0	%
Bank	$	93,585		15.0	%	$	45,196		7.25	%	$	49,871		8.0	%
Common equity tier 1 capital to risk weighted assets
Company	$	94,592		15.1	%	$	35,925		5.75	%		n/a		n/a
Bank	$	93,585		15.0	%	$	35,845		5.75	%	$	40,520		6.5	%
As of December 31, 2016
Tier 1 leverage capital to adjusted total assets
Company	$	92,803		10.8	%	$	34,392		4.0	%	$	42,990		5.0	%
Bank	$	91,617		10.7	%	$	34,315		4.0	%	$	42,894		5.0	%
Total capital to risk weighted assets
Company	$	98,915		16.2	%	$	52,682		8.625	%	$	61,080		10.0	%
Bank	$	97,729		16.0	%	$	52,561		8.625	%	$	60,941		10.0	%
Tier 1 capital to risk weighted assets
Company	$	92,803		15.2	%	$	40,466		6.625	%	$	48,864		8.0	%
Bank	$	91,617		15.0	%	$	40,373		6.625	%	$	48,753		8.0	%
Common equity tier 1 capital to risk weighted assets
Company	$	92,803		15.2	%	$	31,304		5.125	%		n/a		n/a
Bank	$	91,617		15.0	%	$	31,232		5.125	%	$	39,611		6.5	%

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Basis of Presentation - Additional Information (Detail)	Mar. 31, 2017
HopFed Capital Trust [Member] | Majority-Owned Subsidiary, Unconsolidated [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percent of common stock of HopFed Bancorp, Inc.	100.00%

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Net Income Per Share - Reconciliation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic IPS:
Net income	$ 935,000	$ 509,000
Average common shares outstanding	6,218,706	6,297,755
Net income per share	$ 0.15	$ 0.08
Diluted IPS:
Net income	$ 935,000	$ 509,000
Average common shares outstanding	6,218,706	6,297,755
Dilutive effect of stock options	0	0
Average diluted shares outstanding	6,218,706	6,297,755
Net income per share, diluted	$ 0.15	$ 0.08

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Stock Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
2004 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to the HopFed Bancorp, Inc	$ 31,000	$ 30,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of restricted stock issued		10,609

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Stock Compensation - Company's Future Compensation Expense Related to Restricted Stock Vesting (Detail) $ in Thousands	Mar. 31, 2017 USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
2017	$ 57
2018	54
2019	9
2020	2
Total	$ 122

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Securities - Amortized Cost of Securities and their Estimated Fair Values (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
FHLB stock	$ 4,428	$ 4,428
FHLB stock	4,428	4,428
Amortized Cost	206,482	208,651
Gross Unrealized Gains	2,541	2,702
Gross Unrealized Losses	(1,443)	(1,873)
Estimated Fair Value	207,580	209,480
Estimated Fair Value, Less than 12 months	98,323	99,141
Unrealized Losses, Less than 12 months	(1,149)	(1,577)
Estimated Fair Value, 12 months or longer	11,749	10,898
Unrealized Losses, 12 months or longer	(294)	(296)
Estimated Fair Value	110,072	110,039
Unrealized Losses	(1,443)	(1,873)
U.S. Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	90,294	83,667
Gross Unrealized Gains	929	983
Gross Unrealized Losses	(468)	(638)
Estimated Fair Value	90,755	84,012
U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 months	43,756	41,963
Unrealized Losses, Less than 12 months	(419)	(597)
Estimated Fair Value, 12 months or longer	3,380	3,459
Unrealized Losses, 12 months or longer	(49)	(41)
Estimated Fair Value	47,136	45,422
Unrealized Losses	(468)	(638)
Taxable Municipals Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,164	2,720
Gross Unrealized Gains	16	17
Gross Unrealized Losses	(9)	(10)
Estimated Fair Value	2,171	2,727
Taxable Municipals Bonds [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 months	794	1,347
Unrealized Losses, Less than 12 months	(9)	(10)
Estimated Fair Value	794	1,347
Unrealized Losses	(9)	(10)
Tax Free Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	33,052	33,004
Gross Unrealized Gains	1,128	1,081
Gross Unrealized Losses	(67)	(174)
Estimated Fair Value	34,113	33,911
Tax Free Municipal Bonds [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 months	5,408	7,369
Unrealized Losses, Less than 12 months	(67)	(174)
Estimated Fair Value	5,408	7,369
Unrealized Losses	(67)	(174)
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	77,334	85,626
Gross Unrealized Gains	374	437
Gross Unrealized Losses	(899)	(1,051)
Estimated Fair Value	76,809	85,012
Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 months	48,365	48,462
Unrealized Losses, Less than 12 months	(654)	(796)
Estimated Fair Value, 12 months or longer	8,369	7,439
Unrealized Losses, 12 months or longer	(245)	(255)
Estimated Fair Value	56,734	55,901
Unrealized Losses	(899)	(1,051)
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,000	2,000
Gross Unrealized Gains		1
Estimated Fair Value	2,000	2,001
Trust Preferred Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,638	1,634
Gross Unrealized Gains	94	183
Estimated Fair Value	$ 1,732	$ 1,817

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Securities - Maturities of Debt Securities Available for Sale (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized cost of debt securities available for sale, due within one year	$ 6,622
Amortized cost of debt securities available for sale, due in one to five years	20,553
Amortized cost of debt securities available for sale, due in five to ten years	30,572
Amortized cost of debt securities available for sale, due after ten years	11,024
Total amortized cost debt securities available for sale with specific maturities	68,771
Total securities available-for-sale at amortized cost	206,482	$ 208,651
Estimated fair value of debt securities available for sale, due within one year	6,624
Estimated fair value of debt securities available for sale, due in one to five years	20,748
Estimated fair value of debt securities available for sale, due in five to ten years	30,878
Estimated fair value of debt securities available for sale, due after ten years	11,515
Total estimated fair value of debt securities available for sale with specific maturities	69,765
Total securities available for sale at estimated fair value	207,580	209,480
Amortizing Agency Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost of debt securities available for sale without specific maturities	60,377
Total estimated fair value of debt securities available for sale without specific maturities	61,006
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost of debt securities available for sale without specific maturities	77,334
Total securities available-for-sale at amortized cost	77,334	85,626
Total estimated fair value of debt securities available for sale without specific maturities	76,809
Total securities available for sale at estimated fair value	$ 76,809	$ 85,012

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Securities - Additional Information (Detail) $ in Millions	Mar. 31, 2017 USD ($) Securities	Dec. 31, 2016 USD ($)
Investments, Debt and Equity Securities [Abstract]
Number of securities with unrealized losses | Securities	69
Securities with market value sold under agreements to repurchase from various customers	$ 128.9	$ 125.6
Securities pledged to municipalities for deposits in excess of FDIC limits, market value	$ 131.9	$ 128.4

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Loans - Additional Information (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2017 USD ($) Loans SecurityLoan	Dec. 31, 2016 USD ($) Loans SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentrations of loans exceeding 10% of total loans | Loans	0	0
Total loans past due more than 90 days and still accruing interest	$ 0	$ 0
Number of additional TDRs | SecurityLoan	0	8
Number of lending relationships | SecurityLoan	2	3
Number of loans removed from TDR status | SecurityLoan	1
Troubled debt restructurings outstanding balance	$ 2,200,000
Loans that have been modified as TDRs, subsequently defaulted	0
Commitments to lend additional funds to borrower	$ 0
Consumer Loans [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	1 year
Consumer Loans [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	5 years
Commercial Loans [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	1 year
Commercial Loans [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	5 years
Multi-Family [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	5 years
Multi-Family [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans amortization period	20 years
Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases receivable in percentage	84.90%	84.00%
One-to-Four Family Mortgages [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	30 years
Home Equity Line of Credit [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	10 years
Home Equity Line of Credit [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	15 years
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans amortization period	20 years
Construction [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	12 months
Construction [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	24 months
Recreational Land Development Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans amortization period	20 years
Recreational Land Development Loans [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	1 year
Recreational Land Development Loans [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	5 years
Farmland [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	5 years
Farmland [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	20 years
Fixed rate of interest period	10 years
Non-Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable maturity period	20 years
Non-Residential Real Estate [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	5 years
Non-Residential Real Estate [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fixed rate of interest period	10 years

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Loans - Composition of Loan Portfolio By Type of Loan (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Real estate loans:
Total loans, gross	$ 622,070	$ 610,837
Deferred loan fees, net of costs	(426)	(439)
Less allowance for loan losses	(6,164)	(6,112)
Total loans, net	615,480	604,286
Multi-Family [Member]
Real estate loans:
Total loans, gross	38,483	34,284
Consumer Loans [Member]
Real estate loans:
Total loans, gross	8,674	8,717
Less allowance for loan losses	(240)	(208)
Commercial Loans [Member]
Real estate loans:
Total loans, gross	84,955	88,907
Less allowance for loan losses	(1,316)	(593)
Junior Liens [Member]
Real estate loans:
Total loans, gross	1,365	1,452
Real Estate Loans [Member]
Real estate loans:
Total loans, gross	528,441	513,213
Real Estate Loans [Member] | Multi-Family [Member]
Real estate loans:
Total loans, gross	38,483	34,284
Real Estate Loans [Member] | One-to-Four Family Mortgages [Member]
Real estate loans:
Total loans, gross	157,626	147,962
Real Estate Loans [Member] | Home Equity Line of Credit [Member]
Real estate loans:
Total loans, gross	36,694	35,684
Real Estate Loans [Member] | Construction [Member]
Real estate loans:
Total loans, gross	17,386	39,255
Real Estate Loans [Member] | Land [Member]
Real estate loans:
Total loans, gross	20,142	23,840
Real Estate Loans [Member] | Farmland [Member]
Real estate loans:
Total loans, gross	42,812	47,796
Real Estate Loans [Member] | Non-Residential Real Estate [Member]
Real estate loans:
Total loans, gross	213,933	182,940
Real Estate Loans [Member] | Junior Liens [Member]
Real estate loans:
Total loans, gross	1,365	1,452
Total Other Loans [Member]
Real estate loans:
Total loans, gross	93,629	97,624
Total Other Loans [Member] | Consumer Loans [Member]
Real estate loans:
Total loans, gross	8,674	8,717
Total Other Loans [Member] | Commercial Loans [Member]
Real estate loans:
Total loans, gross	$ 84,955	$ 88,907

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Loans - Allowance for Loan Loss Account by Loan (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 6,112	$ 5,700	$ 5,700
Charge off	(292)	(83)	(1,468)
Recovery	53		639
General Provision	709		(108)
Specific Provision	(418)		1,349
Ending balance	6,164		6,112
Multi-Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	412	227	227
Charge off			(421)
General Provision	181		323
Specific Provision			283
Ending balance	593		412
One-to-Four Family Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	852	1,030	1,030
Recovery	3		167
General Provision	245		(118)
Specific Provision	(3)		(227)
Ending balance	1,097		852
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	260	201	201
Charge off			(30)
Recovery	2		14
General Provision	68		59
Specific Provision	(2)		16
Ending balance	328		260
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	277	377	377
General Provision	(136)		(100)
Ending balance	141		277
Land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	1,760	1,379	1,379
General Provision	(396)		(586)
Specific Provision	(931)		967
Ending balance	433		1,760
Non-Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	778	358	358
General Provision	(147)		420
Specific Provision	35
Ending balance	666		778
Farmland [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	964	1,139	1,139
Recovery	6		10
General Provision	324		(41)
Specific Provision	47		(144)
Ending balance	1,341		964
Junior Liens [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	8	8	8
Recovery	1		14
General Provision	1
Specific Provision	(1)		(14)
Ending balance	9		8
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	208	358	358
Charge off	(68)		(422)
Recovery	33		293
General Provision	18		(187)
Specific Provision	49		166
Ending balance	240		208
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	593	$ 623	623
Charge off	(224)		(595)
Recovery	8		141
General Provision	551		122
Specific Provision	388		302
Ending balance	$ 1,316		$ 593

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Loans - Loan Balances by Loan Classification Allocated Between Past Due Performing and Non-performing (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	$ 591,999	$ 578,173
30 - 89 Days Past Due	746	1,211
Non-accrual Loans	8,944	9,074
Special Mention	2,980	2,114
Impaired Loans Currently Performing Substandard	17,401	20,265
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	622,070	610,837
Multi-Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	37,668	31,280
Impaired Loans Currently Performing Substandard	815	3,004
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	38,483	34,284
One-to-Four Family Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	153,653	145,069
30 - 89 Days Past Due	688	896
Non-accrual Loans	248	270
Special Mention	55	744
Impaired Loans Currently Performing Substandard	2,982	983
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	157,626	147,962
Home Equity Line of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	36,132	35,087
30 - 89 Days Past Due		22
Non-accrual Loans	402	402
Special Mention		25
Impaired Loans Currently Performing Substandard	160	148
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	36,694	35,684
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	17,386	39,255
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	17,386	39,255
Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	12,020	15,581
Non-accrual Loans	7,234	7,675
Special Mention	431	35
Impaired Loans Currently Performing Substandard	457	549
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	20,142	23,840
Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	40,588	44,832
Non-accrual Loans	338
Special Mention	693	674
Impaired Loans Currently Performing Substandard	1,193	2,290
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	42,812	47,796
Non-Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	202,168	172,395
Non-accrual Loans	210	208
Special Mention	1,518	3
Impaired Loans Currently Performing Substandard	10,037	10,334
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	213,933	182,940
Junior Liens [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	1,320	1,407
30 - 89 Days Past Due	4	4
Special Mention	29	30
Impaired Loans Currently Performing Substandard	12	11
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	1,365	1,452
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	8,239	8,354
30 - 89 Days Past Due	22	28
Non-accrual Loans	119	3
Impaired Loans Currently Performing Substandard	294	332
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	8,674	8,717
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Currently Performing	82,825	84,913
30 - 89 Days Past Due	32	261
Non-accrual Loans	393	516
Special Mention	254	603
Impaired Loans Currently Performing Substandard	1,451	2,614
Impaired Loans Currently Performing Doubtful	0	0
Total loans, gross	$ 84,955	$ 88,907

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Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 492	$ 1,148
Collectively evaluated for impairment	5,672	4,964
Total ending allowance balance	6,164	6,112
Loans individually evaluated for impairment	26,345	29,339
Loans collectively evaluated for impairment	595,725	581,498
Total ending loans balance	622,070	610,837
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	201	28
Collectively evaluated for impairment	1,115	565
Total ending allowance balance	1,316	593
Loans individually evaluated for impairment	1,844	3,130
Loans collectively evaluated for impairment	83,111	85,777
Total ending loans balance	84,955	88,907
Land Development/Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	105	1,036
Collectively evaluated for impairment	469	1,001
Total ending allowance balance	574	2,037
Loans individually evaluated for impairment	7,691	8,224
Loans collectively evaluated for impairment	29,837	54,871
Total ending loans balance	37,528	63,095
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	88
Collectively evaluated for impairment	2,512	2,154
Total ending allowance balance	2,600	2,154
Loans individually evaluated for impairment	12,593	15,836
Loans collectively evaluated for impairment	282,635	249,184
Total ending loans balance	295,228	265,020
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	1,434	1,120
Total ending allowance balance	1,434	1,120
Loans individually evaluated for impairment	3,804	1,814
Loans collectively evaluated for impairment	191,881	183,284
Total ending loans balance	195,685	185,098
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	98	84
Collectively evaluated for impairment	142	124
Total ending allowance balance	240	208
Loans individually evaluated for impairment	413	335
Loans collectively evaluated for impairment	8,261	8,382
Total ending loans balance	$ 8,674	$ 8,717

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Loans - Summary of Company's Impaired Loans, Including Respective Regulatory Classification and Respective Specific Reserve (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	$ 622,070	$ 610,837
Specific Allowance for Impairment	492	1,148
Allowance for Loans not Impaired	5,672	4,964
Multi-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	38,483	34,284
Allowance for Loans not Impaired	593	412
One-to-Four Family Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	157,626	147,962
Allowance for Loans not Impaired	1,097	852
Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	36,694	35,684
Allowance for Loans not Impaired	328	260
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	17,386	39,255
Allowance for Loans not Impaired	141	277
Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	20,142	23,840
Specific Allowance for Impairment	105	1,036
Allowance for Loans not Impaired	328	724
Non-Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	213,933	182,940
Specific Allowance for Impairment	53
Allowance for Loans not Impaired	1,288	964
Farmland [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	42,812	47,796
Specific Allowance for Impairment	35
Allowance for Loans not Impaired	631	778
Junior Liens [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,365	1,452
Allowance for Loans not Impaired	9	8
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	8,674	8,717
Specific Allowance for Impairment	98	84
Allowance for Loans not Impaired	142	124
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	84,955	88,907
Specific Allowance for Impairment	201	28
Allowance for Loans not Impaired	1,115	565
Pass [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	592,745	579,384
Pass [Member] | Multi-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	37,668	31,280
Pass [Member] | One-to-Four Family Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	154,341	145,965
Pass [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	36,132	35,109
Pass [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	17,386	39,255
Pass [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	12,020	15,581
Pass [Member] | Non-Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	202,168	172,395
Pass [Member] | Farmland [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	40,588	44,832
Pass [Member] | Junior Liens [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,324	1,411
Pass [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	8,261	8,382
Pass [Member] | Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	82,857	85,174
Special Mention [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	2,980	2,114
Special Mention [Member] | One-to-Four Family Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	55	744
Special Mention [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total		25
Special Mention [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	431	35
Special Mention [Member] | Non-Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,518	3
Special Mention [Member] | Farmland [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	693	674
Special Mention [Member] | Junior Liens [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	29	30
Special Mention [Member] | Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	254	603
Impaired Loans Substandard [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	26,345	29,339
Impaired Loans Substandard [Member] | Multi-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	815	3,004
Impaired Loans Substandard [Member] | One-to-Four Family Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	3,230	1,253
Impaired Loans Substandard [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	562	550
Impaired Loans Substandard [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	7,691	8,224
Impaired Loans Substandard [Member] | Non-Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	10,247	10,542
Impaired Loans Substandard [Member] | Farmland [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,531	2,290
Impaired Loans Substandard [Member] | Junior Liens [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	12	11
Impaired Loans Substandard [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	413	335
Impaired Loans Substandard [Member] | Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	$ 1,844	$ 3,130

XML

Loans - Impaired Loans by Classification Type (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 17,847	$ 22,068
Total impaired loans Recorded Investment	26,345	29,339
Unpaid Principal Balance	18,807	23,028
Total impaired loans Unpaid Principal Balance	27,305	30,299
Related Allowance	0	0
Average Recorded Investment	19,961	26,861
Interest Income Recognized	219	1,020
Recorded Investment	8,498	7,271
Unpaid Principal Balance	8,498	7,271
Related Allowance	492	1,148
Average Recorded Investment	7,885	4,733
Total impaired loans Average Recorded Investment	27,846	31,594
Interest Income Recognized	8	509
Total impaired loans Interest Income Recognized	227	1,529
Multi-Family [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	815	3,004
Unpaid Principal Balance	815	3,004
Related Allowance	0	0
Average Recorded Investment	1,910	3,005
Interest Income Recognized	10	172
Average Recorded Investment		910
One-to-Four Family Mortgages [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	3,230	1,253
Unpaid Principal Balance	3,230	1,253
Related Allowance	0	0
Average Recorded Investment	2,242	1,470
Interest Income Recognized	31	67
Average Recorded Investment		452
Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	562	550
Unpaid Principal Balance	562	550
Related Allowance	0	0
Average Recorded Investment	556	390
Interest Income Recognized	10	24
Construction [Member]
Financing Receivable, Impaired [Line Items]
Related Allowance	0	0
Land [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,020	1,553
Unpaid Principal Balance	1,980	2,513
Related Allowance	0	0
Average Recorded Investment	1,287	7,868
Interest Income Recognized	9	38
Recorded Investment	6,671	6,671
Unpaid Principal Balance	6,671	6,671
Related Allowance	105	1,036
Average Recorded Investment	6,671	1,811
Interest Income Recognized		485
Non-Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,005	10,542
Unpaid Principal Balance	1,005	10,542
Related Allowance	0	0
Average Recorded Investment	1,648	9,363
Interest Income Recognized	13	485
Recorded Investment	398
Unpaid Principal Balance	398
Related Allowance	53
Average Recorded Investment	199
Interest Income Recognized	5
Farmland [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,849	2,290
Unpaid Principal Balance	9,849	2,290
Related Allowance	0	0
Average Recorded Investment	10,196	1,563
Interest Income Recognized	134	120
Recorded Investment	526
Unpaid Principal Balance	526
Related Allowance	35
Average Recorded Investment	263	533
Junior Liens [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	12	11
Unpaid Principal Balance	12	11
Related Allowance	0	0
Average Recorded Investment	12	13
Interest Income Recognized		1
Consumer Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	18
Unpaid Principal Balance	18
Related Allowance	0	0
Average Recorded Investment	9	21
Interest Income Recognized		1
Recorded Investment	395	335
Unpaid Principal Balance	395	335
Related Allowance	98	84
Average Recorded Investment	365	273
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,336	2,865
Unpaid Principal Balance	1,336	2,865
Related Allowance	0	0
Average Recorded Investment	2,101	3,168
Interest Income Recognized	12	112
Recorded Investment	508	265
Unpaid Principal Balance	508	265
Related Allowance	201	28
Average Recorded Investment	387	754
Interest Income Recognized	$ 3	$ 24

XML

Loans - Summary of the Activity in Loans Classified as TDRs (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2017 USD ($) Contracts	Dec. 31, 2016 USD ($) Contracts
Multi-Family [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	3	3
Pre-Modification Outstanding Record Investment	$ 815,273	$ 815,273
Post Modification Outstanding Record Investment, net of related allowance	$ 815,273	$ 815,273
Non-Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	3	5
Pre-Modification Outstanding Record Investment	$ 3,421,915	$ 5,646,223
Post Modification Outstanding Record Investment, net of related allowance	$ 3,421,915	$ 5,646,223

XML

Foreclosed Assets - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017 USD ($)
Banking and Thrift, Interest [Abstract]
Minimum book balance for appraisal on all foreclosed assets	$ 250,000

XML

Foreclosed Assets - Presentation of Balances in Foreclosed Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total other assets owned	$ 2,111	$ 2,397	$ 1,457	$ 1,736
Multi-Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total other assets owned	1,775	1,775
One-to-Four Family Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total other assets owned	135	135	55	55
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total other assets owned	28	28	943	943
Non-Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total other assets owned	$ 173	$ 459	$ 459	$ 738

XML

Foreclosed Assets - Summary of Foreclosed Properties Activity (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	$ 2,397	$ 1,736
Foreclosure	43	12
Sales	(329)	(282)
Reduction in Values	0	0
Gain (Loss) on Sale		(9)
Ending Balance	2,111	1,457
Multi-Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	1,775
Reduction in Values	0
Ending Balance	1,775
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Foreclosure		12
Sales		(12)
Reduction in Values		0
One-to-Four Family Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	135	55
Reduction in Values	0	0
Ending Balance	135	55
Home Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	28	943
Reduction in Values	0	0
Ending Balance	28	943
Non-Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	459	738
Foreclosure	43
Sales	(329)	(270)
Reduction in Values	0	0
Gain (Loss) on Sale		(9)
Ending Balance	$ 173	$ 459

XML

Fair Value of Assets and Liabilities - Additional information (Detail)	3 Months Ended
	Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Maturity period of cash and cash equivalents	90 days
Interest rate to be received under swap agreement adjusted quarterly	Three month libor plus 3.10%
Percentage above LIBOR	3.10%

XML

Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Securities available for sale	$ 207,580	$ 209,480
U.S. Treasury Securities [Member]
Assets
Securities available for sale	2,000	2,001
U.S. Agency Securities [Member]
Assets
Securities available for sale	90,755	84,012
Taxable Municipals Bonds [Member]
Assets
Securities available for sale	2,171	2,727
Tax Free Municipal Bonds [Member]
Assets
Securities available for sale	34,113	33,911
Trust Preferred Securities [Member]
Assets
Securities available for sale	1,732	1,817
Mortgage-Backed Securities [Member]
Assets
Securities available for sale	76,809	85,012
Fair Value, Measurements, Recurring [Member]
Assets
Securities available for sale	207,580	209,480
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member]
Assets
Securities available for sale	2,000	2,001
Fair Value, Measurements, Recurring [Member] | U.S. Agency Securities [Member]
Assets
Securities available for sale	90,755	84,012
Fair Value, Measurements, Recurring [Member] | Taxable Municipals Bonds [Member]
Assets
Securities available for sale	2,171	2,727
Fair Value, Measurements, Recurring [Member] | Tax Free Municipal Bonds [Member]
Assets
Securities available for sale	34,113	33,911
Fair Value, Measurements, Recurring [Member] | Trust Preferred Securities [Member]
Assets
Securities available for sale	1,732	1,817
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
Assets
Securities available for sale	76,809	85,012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets
Securities available for sale	2,000	2,001
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Securities available for sale	2,000	2,001
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member]
Assets
Securities available for sale	2,000	2,001
Significant Other Observable Inputs (Level 2) [Member]
Assets
Securities available for sale	203,848	205,662
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Securities available for sale	203,848	205,662
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Securities [Member]
Assets
Securities available for sale	90,755	84,012
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals Bonds [Member]
Assets
Securities available for sale	2,171	2,727
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Tax Free Municipal Bonds [Member]
Assets
Securities available for sale	34,113	33,911
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
Assets
Securities available for sale	76,809	85,012
Significant Unobservable Inputs (Level 3) [Member]
Assets
Securities available for sale	1,732	1,817
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Securities available for sale	1,732	1,817
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred Securities [Member]
Assets
Securities available for sale	$ 1,732	$ 1,817

XML

Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Assets
Foreclosed assets	$ 2,111	$ 2,397	$ 1,457	$ 1,736
Fair Value, Measurements, Nonrecurring [Member]
Assets
Foreclosed assets	2,111	2,397
Impaired loans, net of allowance	8,006	6,123
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member]
Assets
Foreclosed assets	2,111	2,397
Impaired loans, net of allowance	$ 8,006	$ 6,123

XML

Fair Value of Assets and Liabilities - Quantitative Information about Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis (Detail) - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Measurements, Nonrecurring [Member] | Foreclosed Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 2,111	$ 2,397
Valuation Technique	Discount to appraised value of collateral	Discount to appraised value of collateral
Unobservable Input	Appraisal comparability adjustments	Appraisal comparability adjustments
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 8,006	$ 6,123
Valuation Technique	Discount to appraised value of collateral	Discount to appraised value of collateral
Unobservable Input	Appraisal comparability adjustments	Appraisal comparability adjustments
Fair Value, Measurements, Nonrecurring [Member] | Minimum [Member] | Foreclosed Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs, Percentage	30.00%	30.00%
Fair Value, Measurements, Nonrecurring [Member] | Minimum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs, Percentage	10.00%	10.00%
Fair Value, Measurements, Nonrecurring [Member] | Maximum [Member] | Foreclosed Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs, Percentage	55.00%	55.00%
Fair Value, Measurements, Nonrecurring [Member] | Maximum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs, Percentage	25.00%	15.00%
Fair Value, Measurements, Recurring [Member] | Trust Preferred Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,732	$ 1,817
Valuation Technique	Discounted cash flow Spread to Libor swap curve	Discounted cash flow Spread to Libor swap curve
Unobservable Input	Compare to quotes for sale when available	Compare to quotes for sale when available
Quantitative Range of Unobservable Inputs, Description	One month libor	One month libor
Fair Value, Measurements, Recurring [Member] | Minimum [Member] | Trust Preferred Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs, Percentage	4.00%	4.00%
Fair Value, Measurements, Recurring [Member] | Maximum [Member] | Trust Preferred Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs, Percentage	6.00%	6.00%

XML

Fair Value of Assets and Liabilities - Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items (Detail) - Other Assets [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, Beginning balance	$ 1,817	$ 1,865
Change in unrealized losses included in other comprehensive income for assets and liabilities still held at March 31	(89)	105
Accretion of previously discounted amounts	4	4
Purchases, issuances and settlements, net	0	0
Transfers in and/or out of Level 3	0	0
Fair value, Ending balance	$ 1,732	$ 1,974

XML

Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets:
Securities available for sale	$ 207,580	$ 209,480
Financial liabilities:
Repurchase agreements	128,900	125,600
Amortized Cost [Member]
Financial Assets:
Cash and due from banks	30,663	21,779
Interest-bearing deposits	19,408	3,970
Securities available for sale	207,580	209,480
Federal Home Loan Bank stock	4,428	4,428
Loans held for sale	1,091	1,094
Loans receivable	615,480	604,286
Accrued interest receivable	3,121	3,799
Financial liabilities:
Deposits	765,743	732,882
Advances from borrowers for taxes and insurance	867	766
Advances from Federal Home Loan Bank	11,000	11,000
Repurchase agreements	45,492	47,655
Subordinated debentures	10,310	10,310
Estimated Fair Value [Member]
Financial Assets:
Cash and due from banks	30,663	21,779
Interest-bearing deposits	19,408	3,970
Securities available for sale	207,580	209,480
Federal Home Loan Bank stock	4,428	4,428
Loans held for sale	1,091	1,094
Loans receivable	600,288	593,257
Accrued interest receivable	3,121	3,799
Financial liabilities:
Deposits	766,415	732,942
Advances from borrowers for taxes and insurance	867	766
Advances from Federal Home Loan Bank	10,999	10,979
Repurchase agreements	45,492	47,655
Subordinated debentures	10,099	10,099
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets:
Cash and due from banks	30,663	21,779
Interest-bearing deposits	19,408	3,970
Securities available for sale	2,000	2,001
Significant Other Observable Inputs (Level 2) [Member]
Financial Assets:
Securities available for sale	203,848	205,662
Loans held for sale	1,091	1,094
Financial liabilities:
Deposits	766,415	732,942
Advances from borrowers for taxes and insurance	867	766
Advances from Federal Home Loan Bank	10,999	10,979
Repurchase agreements	45,492	47,655
Significant Unobservable Inputs (Level 3) [Member]
Financial Assets:
Securities available for sale	1,732	1,817
Federal Home Loan Bank stock	4,428	4,428
Loans receivable	600,288	593,257
Accrued interest receivable	3,121	3,799
Financial liabilities:
Subordinated debentures	$ 10,099	$ 10,099

XML

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Tax Benefit [Line Items]
Unrecognized tax benefits	$ 0
Effective tax rate	35.00%
Effective tax rate	12.60%	8.30%
Bank owned life insurance	$ 10,120,000		$ 10,662,000
Proceeds from life insurance policy	170,000
Securities available for sale	$ 207,580,000		209,480,000
Tennessee [Member]
Income Tax Benefit [Line Items]
Effective tax rate	6.50%
Tax Free Municipal Bonds [Member]
Income Tax Benefit [Line Items]
Securities available for sale	$ 34,113,000		$ 33,911,000

XML

Esop - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Total ESOP shares	600,000	600,000
ESOP common stock, per share	$ 13.14
ESOP borrowed	$ 7,900,000
Accrued ESOP contribution liability	$ 195,000
2015 HopFed Bancorp, Inc. Employee Stock Ownership Plan ("ESOP") [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Employee stock ownership plan employee minimum service period	1 year
Minimum age eligibility of employee	21 years

XML

Esop - Summary of Shares Held by Employee Stock Ownership Plan (ESOP) (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Accrued for allocation to participants	10,185
Earned ESOP shares	101,654	101,654
Unearned ESOP shares	488,161	498,346
Total ESOP shares	600,000	600,000
Fair value of unearned shares	$ 6,990,466	$ 6,707,737

XML

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Undisbursed loan commitments	$ 48,700,000
Time deposits	311,839,000	$ 293,078,000
Outstanding borrowings	11,000,000	11,000,000
Securities pledged to municipalities for deposits in excess of FDIC limits, market value	131,900,000	128,400,000
Securities with market value sold under agreements to repurchase from various customers	128,900,000	$ 125,600,000
Federal Home Loan Bank of Cincinnati [Member]
Loss Contingencies [Line Items]
Letters of credit	45,500,000
Securities pledged to municipalities for deposits in excess of FDIC limits, market value	45,200,000
Securities with market value sold under agreements to repurchase from various customers	45,500,000
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Letters of credit	287,000
Home Equity Lines of Credit [Member]
Loss Contingencies [Line Items]
Lines of credit outstanding	32,100,000
Personal Lines of Credit [Member]
Loss Contingencies [Line Items]
Lines of credit outstanding	19,400,000
Loan Origination Commitments [Member]
Loss Contingencies [Line Items]
Outstanding commitments	43,900,000
One Year [Member]
Loss Contingencies [Line Items]
Time deposits	43,100,000
One Year [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Certificates of deposits	100,000
One Year [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Certificates of deposits	250,000
One Year Or Less [Member]
Loss Contingencies [Line Items]
Time deposits	47,600,000
One Year Or Less [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Certificates of deposits	$ 250,000

XML

Commitments and Contingencies - Schedule of FHLB Borrowings (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balance	$ 11,000	$ 11,000
Rate	1.04%	1.04%
October 6, 2017 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balance	$ 5,000	$ 5,000
Rate	0.88%	0.88%
Maturity	Oct. 06, 2017	Oct. 06, 2017
July 6, 2018 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balance	$ 6,000	$ 6,000
Rate	1.18%	1.18%
Maturity	Jul. 06, 2018	Jul. 06, 2018

XML

Regulatory Matters - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier one capital ratio		5.75%	5.125%
Tier 1 risk based capital ratios		7.25%	6.625%
Total risk based capital ratio		9.25%	8.625%
Minimum capital conservation buffer	0.625%	1.25%
Total assets		$ 15,000,000
Common equity tier 1 capital assets		45,297	$ 40,466
Maximum [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital assets		$ 250,000,000
Bank Holding Companies and Banks Subject to the rules [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier one capital ratio		4.50%
Tier 1 risk based capital ratios	8.50%	6.00%		4.00%
Total risk based capital ratio	10.50%	8.00%
Tier 1 leverage ratio		4.00%
Capital conservation buffer ratio		2.50%
Common equity Tier 1 risk-based capital ratio	7.00%

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Regulatory Matters - The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage capital to adjusted total assets, Actual Amount	$ 94,592	$ 92,803
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	35,876	34,392
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	44,845	42,990
Total capital to risk weighted assets, Actual Amount	100,756	98,915
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	57,792	52,682
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	62,478	61,080
Tier 1 capital to risk weighted assets, Actual Amount	94,592	92,803
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	45,297	40,466
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	49,983	48,864
Common equity tier 1 capital to risk weighted assets, Actual Amount	94,592	92,803
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	$ 35,925	$ 31,304
Tier 1 leverage capital to adjusted total assets, Actual Ratio	10.60%	10.80%
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	4.00%	4.00%
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	5.00%	5.00%
Total capital to risk weighted assets, Actual Ratio	16.10%	16.20%
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	9.25%	8.625%
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	10.00%	10.00%
Tier 1 capital to risk weighted assets, Actual Ratio	15.10%	15.20%
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	7.25%	6.625%
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	8.00%	8.00%
Common equity tier 1 capital to risk weighted assets, Actual Ratio	15.10%	15.20%
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	5.75%	5.125%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage capital to adjusted total assets, Actual Amount	$ 93,585	$ 91,617
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	35,752	34,315
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	44,690	42,894
Total capital to risk weighted assets, Actual Amount	99,749	97,729
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	57,664	52,561
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	62,339	60,941
Tier 1 capital to risk weighted assets, Actual Amount	93,585	91,617
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	45,196	40,373
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	49,871	48,753
Common equity tier 1 capital to risk weighted assets, Actual Amount	93,585	91,617
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Amount	35,845	31,232
Common equity tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Amount	$ 40,520	$ 39,611
Tier 1 leverage capital to adjusted total assets, Actual Ratio	10.50%	10.70%
Tier 1 leverage capital to adjusted total assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	4.00%	4.00%
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	5.00%	5.00%
Total capital to risk weighted assets, Actual Ratio	16.00%	16.00%
Total capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	9.25%	8.625%
Total capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	10.00%	10.00%
Tier 1 capital to risk weighted assets, Actual Ratio	15.00%	15.00%
Tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	7.25%	6.625%
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	8.00%	8.00%
Common equity tier 1 capital to risk weighted assets, Actual Ratio	15.00%	15.00%
Common equity tier 1 capital to risk weighted assets, Minimum Capital Required - Basel III Phase-In Schedule, Ratio	5.75%	5.125%
Common equity tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Corrective Action Provision, Ratio	6.50%	6.50%