Maryland
|
36-4678532
|
(State or other jurisdiction of incorporation of organization)
|
(IRS Employer Identification No.)
|
Large accelerated filer [ ]
|
Accelerated filer [ ]
|
|||
Non-accelerated filer [ ] (Do not check if a smaller reporting company)
|
Smaller reporting company [X]
|
Page
Number
|
||
PART I
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements
|
|
Condensed Consolidated Balance Sheets as of September 30, 2016 (Unaudited) and December 31, 2015
|
2
|
|
Condensed Consolidated Statements of Operations for the Three-Month and Nine-Month Periods Ended September 30, 2016 and 2015 (Unaudited)
|
3
|
|
Condensed Consolidated Statements of Stockholders' Equity for the Nine-Month Periods Ended September 30, 2016 and 2015 (Unaudited)
|
4
|
|
Condensed Consolidated Statements of Cash Flows For the Nine-Month Periods Ended September 30, 2016 and 2015 (Unaudited)
|
5
|
|
Notes to Condensed Consolidated Financial Statements (unaudited)
|
6-23
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
24-36
|
Item 3.
|
Quantitative and Qualitative Disclosure About Market Risk
|
36
|
Item 4.
|
Controls and Procedures
|
37
|
PART II
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
38
|
Item 1A.
|
Risk Factors
|
38
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
38
|
Item 3.
|
Defaults Upon Senior Securities
|
38
|
Item 4.
|
Mine Safety Disclosures
|
38
|
Item 5.
|
Other Information
|
38
|
Item 6.
|
Exhibits
|
38
|
SIGNATURES
|
39
|
|
EXHIBIT INDEX
|
At September 30,
2016
|
At December 31,
2015
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
2,031
|
1,773
|
|||||
Interest-bearing deposits with banks
|
11,766
|
9,089
|
||||||
Cash and cash equivalents
|
13,797
|
10,862
|
||||||
Securities held to maturity (fair value of $17,887 and $20,854)
|
17,698
|
21,063
|
||||||
Loans, net of allowance for loan losses of $892 and $895
|
123,439
|
113,422
|
||||||
Premises and equipment, net
|
4,488
|
4,591
|
||||||
Bank owned life insurance
|
3,148
|
3,075
|
||||||
Federal Home Loan Bank stock, at cost
|
376
|
348
|
||||||
Deferred income taxes
|
2,603
|
2,613
|
||||||
Accrued interest receivable
|
367
|
322
|
||||||
Foreclosed real estate
|
426
|
433
|
||||||
Other assets
|
983
|
1,099
|
||||||
Total assets
|
$
|
167,325
|
157,828
|
|||||
Liabilities and Stockholders' Equity
|
||||||||
Liabilities:
|
||||||||
Noninterest-bearing deposit accounts
|
$
|
30,847
|
28,211
|
|||||
Money-market deposit accounts
|
40,608
|
36,524
|
||||||
Savings accounts
|
45,983
|
41,717
|
||||||
Time deposits
|
21,181
|
24,018
|
||||||
Total deposits
|
138,619
|
130,470
|
||||||
Federal home loan bank advances
|
5,500
|
5,000
|
||||||
Official checks
|
565
|
526
|
||||||
Other liabilities
|
1,165
|
474
|
||||||
Total liabilities
|
145,849
|
136,470
|
||||||
Stockholders' equity:
|
||||||||
Preferred stock, $0.01 par value, 1,000,000 authorized, none
issued and outstanding
|
-
|
-
|
||||||
Common stock, $.01 par value, 6,000,000 shares authorized,
1,031,898 and 1,030,898 shares issued and outstanding at
September 30, 2016 and December 31, 2015, respectively
|
10
|
10
|
||||||
Additional paid in capital
|
7,379
|
7,285
|
||||||
Retained earnings
|
14,583
|
14,633
|
||||||
Unearned Employee Stock Ownership Plan shares
|
(496
|
)
|
(570
|
)
|
||||
Total stockholders' equity
|
21,476
|
21,358
|
||||||
Total liabilities and stockholders' equity
|
$
|
167,325
|
157,828
|
Three-Months Ended
September 30,
|
Nine-Months Ended
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans
|
$
|
1,492
|
|
1,371
|
4,389
|
4,081
|
||||||||||
Securities
|
88
|
116
|
286
|
367
|
||||||||||||
Other
|
13
|
5
|
38
|
18
|
||||||||||||
Total interest income
|
1,593
|
1,492
|
4,713
|
4,466
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposit accounts
|
95
|
94
|
278
|
281
|
||||||||||||
Federal home loan bank borrowings
|
6
|
-
|
15
|
-
|
||||||||||||
Total interest expense
|
101
|
94
|
293
|
281
|
||||||||||||
Net interest income
|
1,492
|
1,398
|
4,420
|
4,185
|
||||||||||||
Provision for loan losses
|
45
|
45
|
135
|
125
|
||||||||||||
Net interest income after provision for loan losses
|
1,447
|
1,353
|
4,285
|
4,060
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Fees and service charges on deposit accounts
|
357
|
369
|
1,064
|
1,090
|
||||||||||||
Gain on sale of loans
|
15
|
9
|
39
|
128
|
||||||||||||
Gain on sale of foreclosed real estate
|
14
|
-
|
14
|
23
|
||||||||||||
Gain on sale of land
|
-
|
-
|
-
|
451
|
||||||||||||
Fees and charges on loans
|
39
|
24
|
115
|
107
|
||||||||||||
Bank owned life insurance earnings
|
24
|
26
|
73
|
50
|
||||||||||||
Other
|
37
|
12
|
83
|
27
|
||||||||||||
Total noninterest income
|
486
|
440
|
1,388
|
1,876
|
||||||||||||
Noninterest expenses:
|
||||||||||||||||
Salaries and employee benefits
|
829
|
948
|
2,590
|
2,789
|
||||||||||||
Occupancy and equipment
|
262
|
298
|
820
|
853
|
||||||||||||
Data processing services
|
307
|
314
|
916
|
979
|
||||||||||||
Professional fees
|
172
|
185
|
533
|
512
|
||||||||||||
Federal Deposit Insurance Corporation insurance
|
31
|
32
|
94
|
93
|
||||||||||||
Advertising and promotion
|
43
|
23
|
64
|
51
|
||||||||||||
Stationery and supplies
|
17
|
13
|
55
|
53
|
||||||||||||
Telephone and postage
|
26
|
34
|
78
|
107
|
||||||||||||
Foreclosed real estate
|
15
|
13
|
36
|
57
|
||||||||||||
Credit card expense
|
41
|
31
|
124
|
93
|
||||||||||||
Other
|
139
|
141
|
421
|
463
|
||||||||||||
Total noninterest expenses
|
1,882
|
2,032
|
5,731
|
6,050
|
||||||||||||
Earnings (loss) before income taxes (benefit)
|
51
|
(239
|
)
|
(58
|
)
|
(114
|
)
|
|||||||||
Income taxes (benefit)
|
16
|
(118
|
)
|
(8
|
)
|
(46
|
)
|
|||||||||
Net earnings (loss)
|
$
|
35
|
|
(121
|
)
|
(50
|
)
|
(68
|
)
|
|||||||
Basic earnings (loss) per common share
|
$
|
0.04
|
|
(0.12
|
)
|
(0.05
|
)
|
(0.07
|
)
|
|||||||
Diluted earnings (loss) per common share
|
$
|
0.04
|
|
(0.12
|
)
|
(0.05
|
)
|
(0.07
|
)
|
|||||||
Cash dividends per common share
|
$
|
-
|
|
-
|
-
|
-
|
Unearned
|
||||||||||||||||||||||||
Employee
|
||||||||||||||||||||||||
Stock
|
||||||||||||||||||||||||
Additional
|
Ownership
|
Total
|
||||||||||||||||||||||
Common Stock
|
Paid In
|
Retained
|
Plan
|
Stockholders'
|
||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Shares
|
Equity
|
|||||||||||||||||||
Balance, December 31, 2014
|
1,094,110
|
$
|
10
|
8,334
|
14,709
|
(665
|
)
|
22,388
|
||||||||||||||||
Net loss (unaudited)
|
-
|
-
|
-
|
(68
|
)
|
-
|
(68
|
)
|
||||||||||||||||
Stock based compensation expense (unaudited)
|
-
|
-
|
150
|
-
|
-
|
150
|
||||||||||||||||||
Repurchase of common stock (unaudited)
|
(11,800
|
)
|
-
|
(213
|
)
|
-
|
-
|
(213
|
)
|
|||||||||||||||
Common stock allocated to Employee Stock Ownership Plan ("ESOP") participants (unaudited)
|
-
|
-
|
(60
|
)
|
-
|
71
|
11
|
|||||||||||||||||
Balance, September 30, 2015(unaudited)
|
1,082,310
|
$
|
10
|
8,211
|
14,641
|
(594
|
)
|
22,268
|
||||||||||||||||
Balance, December 31, 2015
|
1,030,898
|
$
|
10
|
7,285
|
14,633
|
(570
|
)
|
21,358
|
||||||||||||||||
Net loss (unaudited)
|
-
|
-
|
-
|
(50
|
)
|
-
|
(50
|
)
|
||||||||||||||||
Stock based compensation expense (unaudited)
|
-
|
-
|
152
|
-
|
-
|
152
|
||||||||||||||||||
Stock issued for options exercised (unaudited)
|
1,000
|
-
|
11
|
-
|
-
|
11
|
||||||||||||||||||
Common stock allocated to ESOP participants (unaudited)
|
-
|
-
|
(69
|
)
|
-
|
74
|
5
|
|||||||||||||||||
Balance, September 30, 2016 (unaudited)
|
1,031,898
|
$
|
10
|
7,379
|
14,583
|
(496
|
)
|
21,476
|
||||||||||||||||
Nine-Months Ended
September 30,
|
||||||||
2016
|
2015
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(50
|
)
|
|
(68
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation
|
271
|
288
|
||||||
Provision for loan losses
|
135
|
125
|
||||||
Deferred income taxes (benefit)
|
10
|
(60
|
)
|
|||||
Net amortization of premiums/discounts on securities
|
34
|
36
|
||||||
Net amortization of deferred loan fees and costs
|
90
|
13
|
||||||
Bank owned life insurance earnings
|
(73
|
)
|
(50
|
)
|
||||
Loans originated for sale
|
(1,085
|
)
|
(6,102
|
)
|
||||
Proceeds from loans sold
|
1,124
|
6,254
|
||||||
Gain on sale of loans
|
(39
|
)
|
(128
|
)
|
||||
ESOP compensation expense
|
5
|
11
|
||||||
Stock-based compensation expense
|
152
|
150
|
||||||
Increase in accrued interest receivable
|
(45
|
)
|
(3
|
)
|
||||
Decrease (increase) in other assets
|
116
|
(4
|
)
|
|||||
Gain on sale of foreclosed real estate
|
(14
|
)
|
(23
|
)
|
||||
Write-down of foreclosed real estate
|
27
|
-
|
||||||
Gain on the sale of land
|
-
|
(451
|
)
|
|||||
Increase (decrease) in official checks
|
39
|
(42
|
)
|
|||||
Increase in other liabilities
|
691
|
542
|
||||||
Net cash provided by operating activities
|
1,388
|
488
|
||||||
Cash flows from investing activities:
|
||||||||
Principal pay-downs on held-to-maturity securities
|
3,331
|
3,831
|
||||||
Purchase of bank owned life insurance
|
-
|
(3,000
|
)
|
|||||
Net increase in loans
|
(10,340
|
)
|
(5,946
|
)
|
||||
Net (purchases) sales of premises and equipment
|
(168
|
)
|
414
|
|||||
Purchase of Federal Home Loan Bank stock
|
(28
|
)
|
(6
|
)
|
||||
Proceeds from sale of foreclosed real estate
|
106
|
176
|
||||||
Capital improvements to foreclosed real estate
|
(14
|
)
|
(14
|
)
|
||||
Net cash used in investing activities
|
(7,113
|
)
|
(4,545
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
8,149
|
967
|
||||||
Increase in Federal Home Loan Bank advances
|
500
|
-
|
||||||
Repurchase of common stock
|
-
|
(213
|
)
|
|||||
Cash proceeds from stock options exercised
|
11
|
-
|
||||||
Net cash provided by financing activities
|
8,660
|
754
|
||||||
Increase (decrease) in cash and cash equivalents
|
2,935
|
(3,303
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
10,862
|
13,032
|
||||||
Cash and cash equivalents at end of period
|
$
|
13,797
|
|
9,729
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Income taxes
|
$
|
-
|
|
-
|
||||
Interest
|
$
|
293
|
|
281
|
||||
Noncash transaction-
|
||||||||
Transfer from loans to foreclosed real estate
|
$
|
98
|
|
456
|
||||
2016
|
2015
|
|||||||||||||||||||||||
Weighted-
|
Per
|
Weighted-
|
Per
|
|||||||||||||||||||||
Average
|
Share
|
Average
|
Share
|
|||||||||||||||||||||
Earnings
|
Shares
|
Amount
|
Earnings
|
Shares
|
Amount
|
|||||||||||||||||||
Three-Months Ended September 30:
|
||||||||||||||||||||||||
Basic EPS:
|
||||||||||||||||||||||||
Net earnings (loss)
|
$
|
35
|
944,569
|
$
|
0.04
|
$
|
(121
|
)
|
987,627
|
$
|
(0.12
|
)
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||||||||||
Incremental shares from assumed conversion
|
||||||||||||||||||||||||
of options and restricted stock awards
|
32,921
|
-
|
||||||||||||||||||||||
Diluted EPS:
|
||||||||||||||||||||||||
Net earnings (loss)
|
$
|
35
|
977,490
|
$
|
0.04
|
$
|
(121
|
)
|
987,627
|
$
|
(0.12
|
)
|
||||||||||||
Nine-Months Ended September 30:
|
||||||||||||||||||||||||
Basic EPS:
|
||||||||||||||||||||||||
Net loss
|
$
|
(50
|
)
|
942,100
|
$
|
(0.05
|
)
|
$
|
(68
|
)
|
987,445
|
$
|
(0.07
|
)
|
||||||||||
Diluted EPS:
|
||||||||||||||||||||||||
Net loss
|
$
|
(50
|
)
|
942,100
|
$
|
(0.05
|
)
|
$
|
(68
|
)
|
987,445
|
$
|
(0.07
|
)
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
At September 30, 2016
|
||||||||||||||||
Agency mortgage-backed securities
|
$
|
781
|
36
|
-
|
817
|
|||||||||||
Agency collateralized mortgage obligations
|
16,917
|
208
|
(55
|
)
|
17,070
|
|||||||||||
Total
|
$
|
17,698
|
244
|
(55
|
)
|
17,887
|
||||||||||
At December 31, 2015
|
||||||||||||||||
Agency mortgage-backed securities
|
1,086
|
42
|
-
|
1,128
|
||||||||||||
Agency collateralized mortgage obligations
|
19,977
|
27
|
(278
|
)
|
19,726
|
|||||||||||
Total
|
$
|
21,063
|
69
|
(278
|
)
|
20,854
|
Less than Twelve Months
|
Twelve Months or Longer
|
|||||||||||||||
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
At September 30, 2016:
|
||||||||||||||||
Agency Collateralized mortgage obligations
|
$
|
-
|
-
|
(55
|
)
|
4,396
|
At December 31, 2015:
|
||||||||||||||||
Agency Collateralized mortgage obligations
|
$
|
(94
|
)
|
8,332
|
(184
|
)
|
5,839
|
September 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Real estate mortgage loans:
|
||||||||
One-to four-family
|
$
|
52,603
|
46,293
|
|||||
Commercial real estate
|
48,650
|
43,419
|
||||||
Construction and lot
|
3,747
|
5,175
|
||||||
Total real estate loans
|
105,000
|
94,887
|
||||||
Commercial loans
|
1,780
|
1,177
|
||||||
Consumer loans:
|
||||||||
Home equity
|
7,152
|
7,609
|
||||||
Automobile
|
3,234
|
3,321
|
||||||
Credit cards and unsecured
|
5,810
|
6,100
|
||||||
Other
|
1,232
|
1,312
|
||||||
Total consumer loans
|
17,428
|
18,342
|
||||||
Total loans
|
124,208
|
114,406
|
||||||
Add (deduct)
|
||||||||
Loans in process
|
165
|
43
|
||||||
Deferred fees and discounts
|
(42
|
)
|
(132
|
)
|
||||
Allowance for loan losses
|
(892
|
)
|
(895
|
)
|
||||
Total loans, net
|
$
|
123,439
|
113,422
|
|||||
Real Estate
Loans
|
Commercial
Loans
|
Consumer
Loans
|
Unallocated
|
Total
|
||||||||||||||||
Three-Months Ended September 30, 2016:
|
||||||||||||||||||||
Beginning balance
|
$
|
481
|
27
|
356
|
61
|
925
|
||||||||||||||
Provision (credit) for loan loss
|
59
|
14
|
33
|
(61
|
)
|
45
|
||||||||||||||
Charge-offs
|
(53
|
)
|
-
|
(42
|
)
|
-
|
(95
|
)
|
||||||||||||
Recoveries
|
9
|
-
|
8
|
-
|
17
|
|||||||||||||||
Ending balance
|
$
|
496
|
41
|
355
|
-
|
892
|
||||||||||||||
Three-Months Ended September 30, 2015:
|
||||||||||||||||||||
Beginning balance
|
$
|
515
|
13
|
379
|
1
|
908
|
||||||||||||||
Provision (credit) for loan loss
|
5
|
1
|
40
|
(1
|
)
|
45
|
||||||||||||||
Charge-offs
|
(5
|
)
|
-
|
(64
|
)
|
-
|
(69
|
)
|
||||||||||||
Recoveries
|
1
|
-
|
25
|
-
|
26
|
|||||||||||||||
Ending balance
|
$
|
516
|
14
|
380
|
-
|
910
|
||||||||||||||
Nine-Months Ended September 30, 2016:
|
||||||||||||||||||||
Beginning balance
|
$
|
503
|
10
|
381
|
1
|
895
|
||||||||||||||
Provision (credit) for loan loss
|
46
|
31
|
59
|
(1
|
)
|
135
|
||||||||||||||
Charge-offs
|
(67
|
)
|
-
|
(132
|
)
|
-
|
(199
|
)
|
||||||||||||
Recoveries
|
14
|
-
|
47
|
-
|
61
|
|||||||||||||||
Ending balance
|
$
|
496
|
41
|
355
|
-
|
892
|
||||||||||||||
Nine -Months Ended September 30, 2015:
|
||||||||||||||||||||
Beginning balance
|
$
|
708
|
10
|
296
|
73
|
1,087
|
||||||||||||||
Provision (credit) for loan loss
|
(198
|
)
|
4
|
392
|
(73
|
)
|
125
|
|||||||||||||
Charge-offs
|
(5
|
)
|
-
|
(372
|
)
|
-
|
(377
|
)
|
||||||||||||
Recoveries
|
11
|
-
|
64
|
-
|
75
|
|||||||||||||||
Ending balance
|
$
|
516
|
14
|
380
|
-
|
910
|
||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||
Individually evaluated for impairment:
|
||||||||||||||||||||
Recorded investment
|
$
|
2,571
|
-
|
179
|
-
|
2,750
|
||||||||||||||
Balance in allowance for loan losses
|
$
|
45
|
-
|
28
|
-
|
73
|
||||||||||||||
Collectively evaluated for impairment:
|
||||||||||||||||||||
Recorded investment
|
$
|
102,429
|
1,780
|
17,249
|
-
|
121,458
|
||||||||||||||
Balance in allowance for loan losses
|
$
|
451
|
41
|
327
|
-
|
819
|
||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||
Individually evaluated for impairment:
|
||||||||||||||||||||
Recorded investment
|
$
|
2,728
|
-
|
221
|
-
|
2,949
|
||||||||||||||
Balance in allowance for loan losses
|
$
|
73
|
-
|
33
|
-
|
106
|
||||||||||||||
Collectively evaluated for impairment:
|
||||||||||||||||||||
Recorded investment
|
$
|
92,159
|
1,177
|
18,121
|
-
|
111,457
|
||||||||||||||
Balance in allowance for loan losses
|
$
|
430
|
10
|
348
|
1
|
789
|
Credit Risk
|
||||||||||||||||||||||||||||||||||||
Profile by Internally
|
One to
Four
|
Commercial
Real
|
Constru-
ction and
|
Comme-
|
Home
|
Auto-
|
Credit
Cards and
|
|||||||||||||||||||||||||||||
Assigned Grade:
|
Family
|
Estate
|
Lot
|
rcial
|
Equity
|
mobile
|
Unsecured
|
Other
|
Total
|
|||||||||||||||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
49,961
|
48,650
|
3,702
|
1,780
|
6,743
|
3,208
|
5,767
|
1,149
|
120,960
|
||||||||||||||||||||||||||
Special mention
|
89
|
-
|
28
|
-
|
76
|
4
|
8
|
-
|
205
|
|||||||||||||||||||||||||||
Substandard
|
2,553
|
-
|
17
|
-
|
333
|
22
|
35
|
83
|
3,043
|
|||||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Total
|
$
|
52,603
|
48,650
|
3,747
|
1,780
|
7,152
|
3,234
|
5,810
|
1,232
|
124,208
|
||||||||||||||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
41,995
|
43,419
|
5,154
|
1,177
|
7,221
|
3,311
|
6,068
|
1,228
|
109,573
|
|||||||||||||||||||||||||||
Special mention
|
419
|
-
|
21
|
-
|
23
|
-
|
-
|
1
|
464
|
|||||||||||||||||||||||||||
Substandard
|
3,879
|
-
|
-
|
-
|
365
|
10
|
32
|
83
|
4,369
|
|||||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Total
|
$
|
46,293
|
43,419
|
5,175
|
1,177
|
7,609
|
3,321
|
6,100
|
1,312
|
114,406
|
Accruing Loans
|
||||||||||||||||||||||||||||
90 Days
|
||||||||||||||||||||||||||||
30-59
|
60-89
|
and
|
Total
|
|||||||||||||||||||||||||
Days
|
Days
|
Greater
|
Past
|
Nonaccrual
|
Total
|
|||||||||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Due
|
Current
|
Loans
|
Loans
|
||||||||||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
One-to four-family
|
$
|
522
|
182
|
-
|
704
|
50,582
|
1,317
|
52,603
|
||||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
48,650
|
-
|
48,650
|
|||||||||||||||||||||
Construction and lot
|
61
|
-
|
-
|
61
|
3,686
|
-
|
3,747
|
|||||||||||||||||||||
Commercial loans
|
-
|
-
|
-
|
-
|
1,781
|
-
|
1,781
|
|||||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Home equity
|
37
|
76
|
-
|
113
|
6,811
|
228
|
7,152
|
|||||||||||||||||||||
Automobile
|
4
|
-
|
-
|
4
|
3,208
|
22
|
3,234
|
|||||||||||||||||||||
Credit cards and unsecured
|
12
|
188
|
18
|
218
|
5,557
|
35
|
5,810
|
|||||||||||||||||||||
Other
|
7
|
-
|
-
|
7
|
1,142
|
82
|
1,231
|
|||||||||||||||||||||
Total
|
$
|
643
|
446
|
18
|
1,107
|
121,417
|
1,684
|
124,208
|
||||||||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
One-to four-family
|
698
|
419
|
-
|
1,117
|
43,832
|
1,344
|
46,293
|
|||||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
43,419
|
-
|
43,419
|
|||||||||||||||||||||
Construction and lot
|
-
|
21
|
-
|
21
|
5,154
|
-
|
5,175
|
|||||||||||||||||||||
Commercial loans
|
-
|
-
|
-
|
-
|
1,177
|
-
|
1,177
|
|||||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Home equity
|
77
|
51
|
-
|
128
|
7,192
|
289
|
7,609
|
|||||||||||||||||||||
Automobile
|
22
|
-
|
-
|
22
|
3,289
|
10
|
3,321
|
|||||||||||||||||||||
Credit cards and unsecured
|
54
|
-
|
7
|
61
|
6,007
|
32
|
6,100
|
|||||||||||||||||||||
Other
|
4
|
1
|
-
|
5
|
1,224
|
83
|
1,312
|
|||||||||||||||||||||
Total
|
$
|
855
|
492
|
7
|
1,354
|
111,294
|
1,758
|
114,406
|
||||||||||||||||||||
With No Related
Allowance Recorded
|
With an Allowance Recorded
|
Total
|
||||||||||||||||||||||||||||||
Recorded
Investment |
Unpaid
Principal Balance |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
|||||||||||||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
One-to four-family
|
$
|
1,995
|
2,047
|
576
|
593
|
45
|
2,571
|
2,640
|
45
|
|||||||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||||||
Home equity
|
142
|
157
|
37
|
46
|
28
|
179
|
203
|
28
|
||||||||||||||||||||||||
$
|
2,137
|
2,204
|
613
|
639
|
73
|
2,750
|
2,843
|
73
|
||||||||||||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
One-to four-family
|
$
|
1,552
|
1,604
|
1,176
|
1,193
|
73
|
2,728
|
2,797
|
73
|
|||||||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||||||
Home equity
|
56
|
71
|
165
|
174
|
33
|
221
|
245
|
33
|
||||||||||||||||||||||||
$
|
1,608
|
1,675
|
1,341
|
1,367
|
106
|
2,949
|
3,042
|
106
|
Three-Months Ended September 30,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
Average
|
Interest
|
Interest
|
Average
|
Interest
|
Interest
|
|||||||||||||||||||
Recorded
|
Income
|
Income
|
Recorded
|
Income
|
Income
|
|||||||||||||||||||
Investment
|
Recognized
|
Received
|
Investment
|
Recognized
|
Received
|
|||||||||||||||||||
Residential estate loans:
|
||||||||||||||||||||||||
One-to-four family
|
$
|
2,578
|
34
|
36
|
2,711
|
35
|
36
|
|||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity
|
181
|
3
|
2
|
265
|
3
|
4
|
||||||||||||||||||
Total
|
$
|
2,759
|
37
|
38
|
$
|
2,976
|
38
|
40
|
Nine-Months Ended September 30,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
Average
|
Interest
|
Interest
|
Average
|
Interest
|
Interest
|
|||||||||||||||||||
Recorded
|
Income
|
Income
|
Recorded
|
Income
|
Income
|
|||||||||||||||||||
Investment
|
Recognized
|
Received
|
Investment
|
Recognized
|
Received
|
|||||||||||||||||||
Residential estate loans:
|
||||||||||||||||||||||||
One-to-four family
|
$
|
2,587
|
110
|
113
|
2,742
|
92
|
93
|
|||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity
|
184
|
10
|
10
|
271
|
9
|
10
|
||||||||||||||||||
Total
|
$
|
2,771
|
120
|
123
|
$
|
3,013
|
101
|
103
|
Contract
|
||||
Amount
|
||||
Unused lines of credit
|
$
|
19,525
|
||
Commitments to extend credit
|
$
|
276
|
At September 30, 2016
|
At December 31, 2015
|
|||||||||||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||||||||||
Amount
|
Value
|
Level
|
Amount
|
Value
|
Level
|
|||||||||||||||||||
Financial assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
13,797
|
13,797
|
1
|
10,862
|
10,862
|
1
|
|||||||||||||||||
Securities held to maturity
|
17,698
|
17,887
|
2
|
21,063
|
20,854
|
2
|
||||||||||||||||||
Loans
|
123,439
|
123,886
|
3
|
113,422
|
113,558
|
3
|
||||||||||||||||||
Federal Home Loan Bank stock
|
376
|
376
|
3
|
348
|
348
|
3
|
||||||||||||||||||
Accrued interest receivable
|
367
|
367
|
3
|
322
|
322
|
3
|
||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||||||
Deposits
|
138,619
|
134,946
|
3
|
130,470
|
126,230
|
3
|
||||||||||||||||||
Federal Home Loan Bank
|
||||||||||||||||||||||||
advances
|
5,500
|
5,500
|
3
|
5,000
|
5,000
|
3
|
||||||||||||||||||
Off-balance-sheet financial
|
||||||||||||||||||||||||
instruments
|
-
|
-
|
3
|
-
|
-
|
3
|
Weighted-
|
|||||||||||||
Weighted-
|
Average
|
||||||||||||
Average
|
Remaining
|
Aggregate
|
|||||||||||
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
||||||||||
Options
|
Price
|
Term
|
Value
|
||||||||||
Outstanding at December 31, 2014
|
84,000
|
$
|
11.70
|
||||||||||
Forfeited
|
(2,500
|
)
|
14.35
|
||||||||||
Outstanding at September 30, 2015
|
81,500
|
$
|
11.62
|
7.37 years
|
|||||||||
Outstanding at December 31, 2015
|
81,500
|
11.62
|
|||||||||||
Exercised
|
(1,000
|
)
|
10.75
|
||||||||||
Outstanding at September 30, 2016
|
80,500
|
$
|
11.63
|
6.38 years
|
|||||||||
Exercisable at September 30, 2016
|
10,000
|
$
|
10.75
|
6.20 years
|
$ |
92,500
|
Number of
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
|||||||
Outstanding at December 31, 2014
|
38,000
|
$
|
16.91
|
|||||
Vested shares
|
(800
|
)
|
18.25
|
|||||
Outstanding at September 30, 2015
|
37,200
|
$
|
16.91
|
|||||
Outstanding at December 31, 2015
|
28,700
|
$
|
16.92
|
|||||
Vested shares
|
(800
|
)
|
18.25
|
|||||
Outstanding at September 30, 2016
|
27,900
|
$
|
16.88
|
Fair
Value |
Level 1
|
Level 2
|
Level 3
|
Total
Losses |
Losses
Recorded During the Period |
|||||||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||||||
One-to four-family
|
$
|
576
|
-
|
-
|
576
|
45
|
-
|
|||||||||||||||||
Home equity
|
37
|
-
|
-
|
37
|
28
|
-
|
||||||||||||||||||
Total
|
$
|
613
|
-
|
-
|
613
|
73
|
-
|
|||||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||||||
One-to four-family
|
$
|
754
|
-
|
-
|
754
|
69
|
-
|
|||||||||||||||||
Home equity
|
16
|
-
|
-
|
16
|
5
|
-
|
||||||||||||||||||
Total
|
$
|
770
|
-
|
-
|
770
|
74
|
-
|
Quoted Prices
|
||||||||||||||||||||||||
In Active
|
Significant
|
|||||||||||||||||||||||
Markets for
|
Other
|
Significant
|
Losses
|
|||||||||||||||||||||
Identical
|
Observable
|
Unobservable
|
Recorded
|
|||||||||||||||||||||
Fair
|
Assets
|
Inputs
|
Inputs
|
Total
|
During the
|
|||||||||||||||||||
Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Losses
|
Period
|
|||||||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||||||
Foreclosed real estate
|
$
|
426
|
-
|
-
|
426
|
130
|
27
|
|||||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||||||
Foreclosed real estate
|
$
|
433
|
-
|
-
|
433
|
103
|
-
|
|||||||||||||||||
Actual
|
Minimum
For Capital Adequacy Purposes |
Minimum
To Be Well Capitalized Under Prompt and Corrective Action Provisions |
||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||
At September 30, 2016:
|
||||||||||||||||||||||||
Total Capital to Risk-
|
||||||||||||||||||||||||
Weighted Assets
|
$
|
19,241
|
15.96
|
%
|
$
|
9,643
|
8.00
|
%
|
$
|
12,053
|
10.00
|
%
|
||||||||||||
Tier I Capital to Risk-
|
||||||||||||||||||||||||
Weighted Assets
|
18,349
|
15.22
|
7,232
|
6.00
|
9,643
|
8.00
|
||||||||||||||||||
Tier I Capital
|
||||||||||||||||||||||||
to Total Assets
|
18,349
|
11.76
|
6,242
|
4.00
|
7,802
|
5.00
|
||||||||||||||||||
Common equity Tier 1 Capital to
|
||||||||||||||||||||||||
Risk-Weighted Assets
|
18,349
|
15.22
|
5,424
|
4.50
|
7,835
|
6.50
|
||||||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||||||
Total Capital to Risk-
|
||||||||||||||||||||||||
Weighted Assets
|
$
|
19,117
|
17.03
|
%
|
$
|
8,978
|
8.00
|
%
|
$
|
11,222
|
10.00
|
%
|
||||||||||||
Tier I Capital to Risk-
|
||||||||||||||||||||||||
Weighted Assets
|
18,222
|
16.24
|
6,733
|
6.00
|
8,978
|
8.00
|
||||||||||||||||||
Tier I Capital
|
||||||||||||||||||||||||
to Total Assets
|
18,222
|
12.56
|
5,803
|
4.00
|
7,253
|
5.00
|
||||||||||||||||||
Common equity Tier 1 Capital to
|
||||||||||||||||||||||||
Risk-Weighted Assets
|
18,222
|
16.24
|
5,050
|
4.50
|
7,295
|
6.50
|
·
|
statements of our goals, intentions and expectations;
|
·
|
statements regarding our business plans, prospects, growth and operating strategies;
|
·
|
statements regarding the asset quality of our loan and investment portfolios; and
|
·
|
estimates of our risks and future costs and benefits.
|
·
|
the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets;
|
·
|
changes in general economic conditions, either nationally or in our market area;
|
·
|
changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources;
|
·
|
fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market area;
|
·
|
results of examinations of us by the Florida Office of Financial regulation, the Federal Deposit Insurance Corporation or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings;
|
·
|
legislative or regulatory changes that adversely affect our business, changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules, including as a result of Basel III;
|
·
|
our ability to attract and retain deposits;
|
·
|
changes in premiums for deposit insurance;
|
·
|
our ability to control operating costs and expenses;
|
·
|
the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation;
|
·
|
difficulties in reducing risks associated with the loans on our balance sheet;
|
·
|
staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges;
|
·
|
computer systems on which we depend could fail or experience a security breach;
|
·
|
our ability to retain key members of our senior management team;
|
·
|
costs and effects of litigation, including settlements and judgments;
|
·
|
our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto;
|
·
|
increased competitive pressures among financial services companies;
|
·
|
changes in consumer spending, borrowing and savings habits;
|
·
|
the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions;
|
·
|
our ability to pay dividends on our common stock;
|
·
|
adverse changes in the securities markets;
|
·
|
inability of key third-party providers to perform their obligations to us;
|
·
|
the impact of changes in financial services laws and regulations, including laws concerning taxes, banking, securities, consumer protection and insurance and the impact of other governmental initiatives affecting the financial services industry;
|
·
|
changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies, the Public Company Accounting Oversight Board or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods including relating to fair value accounting and loan loss reserve requirements; and
|
·
|
other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described elsewhere in this report and our Form 10-K for the year ended December 31, 2015 filed on March 29, 2016 ("2015 Form 10-K") and our other reports filed with the SEC.
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
Average
Balance |
Interest
and Dividends |
Average
Yield/ Rate |
Average
Balance |
Interest
and Dividend |
Average
Yield/ Rate |
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans (1)
|
$
|
120,905
|
$
|
1,492
|
4.94
|
%
|
$
|
105,729
|
$
|
1,371
|
5.19
|
%
|
||||||||||||
Securities held to maturity
|
18,356
|
88
|
1.92
|
23,081
|
116
|
2.01
|
||||||||||||||||||
Other interest-earning assets (2)
|
7,876
|
13
|
0.66
|
6,613
|
5
|
0.30
|
||||||||||||||||||
Total interest-earning assets
|
147,137
|
1,593
|
4.33
|
135,423
|
1,492
|
4.41
|
||||||||||||||||||
Noninterest-earning assets
|
14,891
|
15,073
|
||||||||||||||||||||||
Total assets
|
$
|
162,028
|
$
|
150,496
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
MMDA and statement savings
|
85,220
|
69
|
0.32
|
77,202
|
63
|
0.33
|
||||||||||||||||||
Time deposits
|
21,746
|
26
|
0.48
|
25,036
|
31
|
0.50
|
||||||||||||||||||
FHLB advances
|
5,466
|
6
|
0.44
|
-
|
-
|
-
|
||||||||||||||||||
Total interest-bearing liabilities
|
112,432
|
101
|
0.36
|
102,238
|
94
|
0.37
|
||||||||||||||||||
Noninterest-bearing liabilities
|
28,153
|
25,831
|
||||||||||||||||||||||
Equity
|
21,443
|
22,427
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
162,028
|
$
|
150,496
|
||||||||||||||||||||
Net interest income
|
$
|
1,492
|
$
|
1,398
|
||||||||||||||||||||
Net interest rate spread (3)
|
3.97
|
%
|
4.04
|
%
|
||||||||||||||||||||
Net interest margin (4)
|
4.06
|
%
|
4.13
|
%
|
||||||||||||||||||||
Ratio of average interest-earning assets
|
||||||||||||||||||||||||
to average interest-bearing liabilities
|
1.31
|
x
|
1.32
|
x
|
||||||||||||||||||||
(1)
|
Includes nonaccrual loans.
|
(2)
|
Other interest-earnings assets consist of Federal Home Loan Bank stock and interest-bearing deposits.
|
(3)
|
Interest-rate spread represents the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
(4)
|
Net interest margin is net interest income divided by average interest-earning assets (annualized).
|
Nine-Months Ended September 30,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
Average
Balance |
Interest
and Dividends |
Average
Yield/ Rate |
Average
Balance |
Interest
and Dividend |
Average
Yield/ Rate |
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable (1)
|
$
|
117,135
|
$
|
4,389
|
5.00
|
%
|
$
|
104,277
|
$
|
4,081
|
5.22
|
%
|
||||||||||||
Securities held to maturity
|
19,506
|
286
|
1.95
|
24,196
|
367
|
2.02
|
||||||||||||||||||
Other interest-earning assets (2)
|
7,443
|
38
|
0.68
|
7,760
|
18
|
0.31
|
||||||||||||||||||
Total interest-earning assets
|
144,084
|
4,713
|
4.36
|
136,233
|
4,466
|
4.37
|
||||||||||||||||||
Noninterest-earning assets
|
15,121
|
13,977
|
||||||||||||||||||||||
Total assets
|
$
|
159,205
|
$
|
150,210
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
MMDA and statement savings
|
82,628
|
197
|
0.32
|
76,455
|
186
|
0.32
|
||||||||||||||||||
Time deposits
|
22,601
|
81
|
0.48
|
25,692
|
95
|
0.49
|
||||||||||||||||||
FHLB advances
|
4,669
|
15
|
0.43
|
-
|
-
|
|||||||||||||||||||
Total interest-bearing liabilities
|
109,898
|
293
|
0.36
|
102,147
|
281
|
0.37
|
||||||||||||||||||
Noninterest-bearing liabilities
|
27,928
|
25,612
|
||||||||||||||||||||||
Equity
|
21,379
|
22,451
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
159,205
|
$
|
150,210
|
||||||||||||||||||||
Net interest income
|
$
|
4,420
|
$
|
4,185
|
||||||||||||||||||||
Net interest rate spread (3)
|
4.00
|
%
|
4.00
|
%
|
||||||||||||||||||||
Net interest margin (4)
|
4.09
|
%
|
4.10
|
%
|
||||||||||||||||||||
Ratio of average interest-earning assets
|
||||||||||||||||||||||||
to average interest-bearing liabilities
|
1.31
|
x
|
1.33
|
x
|
||||||||||||||||||||
(1)
|
Includes nonaccrual loans.
|
(2)
|
Other interest-earnings assets consist of Federal Home Loan Bank stock and interest-bearing deposits.
|
(3)
|
Interest-rate spread represents the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
(4)
|
Net interest margin is net interest income divided by average interest-earning assets (annualized).
|
Unused lines of credit
|
$
|
19,525
|
||
Commitments to extend credit
|
$
|
276
|
(b) |
Changes in Internal Control over Financial Reporting
|
Item 6. |
Exhibits
|
SUNSHINE FINANICAL, INC.
|
||
Date: November 14, 2016
|
By:
|
/s/ Louis O. Davis, Jr.
|
Louis O. Davis, Jr.
|
||
President and Chief Executive Officer
|
||
(Duly Authorized Officer)
|
||
Date: November 14, 2016
|
By:
|
/s/ Scott A. Swain
|
Scott A, Swain
|
||
Senior Vice President, Treasurer and
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
Exhibits:
|
|
3.1
|
Articles of Incorporation of Sunshine Financial, Inc. (incorporated herein by reference to Exhibit 3.1 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-169555))
|
3.2
|
Bylaws, as amended, of Sunshine Financial, Inc. (incorporated herein by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed with the SEC on August 28, 2013 (File No. 000-54280))
|
4.0
|
Form of Common Stock Certificate of Sunshine Financial, Inc. (incorporated herein by reference to Exhibit 4.0 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-169555))
|
10.1
|
Employment Agreement by and between Sunshine Savings Bank and Louis O Davis, Jr. (incorporated herein by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-169555))
|
10.2
|
Form of Change of Control Agreement by and between Sunshine Financial, Inc. and Louis O. Davis Jr. (incorporated herein by reference to Exhibit 10.2 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-169555))
|
10.3
|
Form of Change of Control Agreement by and between Sunshine Financial, Inc. and each of Brian P. Baggett and Scott A. Swain (incorporated herein by reference to Exhibit 10.3 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-169555))
|
10.4
|
Director Fee Arrangements (incorporated herein by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (File No. 000-54280))
|
10.5
|
Sunshine Financial, Inc. 2012 Equity Incentive Plan (incorporated herein by reference to Appendix A to the Registrant's Definitive Proxy Statement filed on Schedule 14A on April 20, 2012 (File No. 000-54280))
|
10.6
|
Forms of Incentive Stock Option, Non-Qualified Stock Option and Restricted Stock Agreements under the 2012 Equity Incentive Plan (incorporated by reference to the Exhibits to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 29, 2012 (File No. 333-182450))
|
10.7
|
Agreement, dated February 5, 2016, by and among, Sunshine Financial, Inc., Sunshine Savings Bank, Stilwell Value Partners VII, L.P., Stilwell Activist Fund, L.P., Stilwell Activist Investments, L.P., Stilwell Partners, L.P. and Stilwell Value LLC, and Corissa J. Briglia (incorporated by reference to the Registrant's Current Report on Form 8-K filed on February 8, 2016 (File No. 000-54280))
|
31.1
|
Rule 13a-14(a) Certification of the Chief Executive Officer
|
31.2
|
Rule 13a-14(a) Certification of the Chief Financial Officer
|
32.0
|
Section 1350 Certification
|
101
|
Interactive Data Files
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Sunshine Financial, Inc. (the "Company");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of 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 report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company's other certifying officer 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 controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-(15(f)) for the Company 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 Company, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this 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 Company'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 evaluations; and
|
(d)
|
disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
|
5.
|
The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company'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 Company'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 role in the Company's internal control over financial reporting.
|
November 14, 2016
|
By:
|
/s/ Louis O. Davis, Jr.
|
Louis O. Davis, Jr.
|
||
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Sunshine Financial, Inc. (the "Company");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of 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 report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company's other certifying officer 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 controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-(15(f)) for the Company 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 Company, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this 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 Company'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 evaluations; and
|
(d)
|
disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
|
5.
|
The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company'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 Company'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 role in the Company's internal control over financial reporting.
|
November 14, 2016
|
By:
|
/s/ Scott A. Swain
|
Scott A. Swain
|
||
Senior Vice President, Treasurer and Chief
|
||
Financial Officer
|
November 14, 2016
|
By:
|
/s/ Louis O. Davis, Jr.
|
Louis O. Davis, Jr.
|
||
President and Chief Executive Officer
|
||
November 14, 2016
|
By:
|
/s/ Scott A. Swain
|
Scott A. Swain
|
||
Senior Vice President, Treasurer and Chief
|
||
Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 14, 2016 |
|
Document and Entity Information: | ||
Entity Registrant Name | Sunshine Financial Inc | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Trading Symbol | ssnf | |
Amendment Flag | false | |
Entity Central Index Key | 0001500837 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 1,031,898 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, State Country Name | Maryland corporation |
SUNSHINE FINANCIAL, INC. AND SUBSIDIARIES -- Condensed Consolidated Balance Sheets (September 30, 2016 figures unaudited) (Parentheticals) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statements of Financial Condition | ||
Securities held to maturity fair value | $ 17,887 | $ 20,854 |
Allowance for loan losses | $ 892 | $ 895 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 6,000,000 | 6,000,000 |
Common stock shares issued | 1,031,898 | 1,030,898 |
Common stock shares outstanding | 1,031,898 | 1,030,898 |
1. Organization and Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Notes | |
1. Organization and Basis of Presentation | 1. Organization and Basis of Presentation Sunshine Financial, Inc. ("Sunshine Financial" or the "Holding Company"), a Maryland corporation, is the holding company for Sunshine Community Bank (the "Bank") and owns all the outstanding common stock of the Bank.
Sunshine Community Bank and its holding company, Sunshine Financial, Inc. announced July 11, 2016 that the Bank completed its conversion from a federal savings bank charter to a Florida state bank charter effective July 1, 2016. As a result of the charter conversion, the Banks legal name changed to Sunshine Community Bank.
The changes had no effect on bank products or services, and deposits remain insured through the Federal Deposit Insurance Corporation. As a Florida-chartered financial institution, the Florida Office of Financial Regulation is the primary regulator for the Bank. Sunshine Community Bank is also regulated by the Federal Deposit Insurance Corporation. Sunshine Financial, Inc. continues to be regulated by the Board of Governors of the Federal Reserve System (the Federal Reserve).
The Holding Company's only business is the operation of the Bank. The Bank, through its six banking offices, provides a variety of retail community banking services to individuals and businesses primarily in Leon County, Florida. The Bank's deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation. The Bank's subsidiary is Sunshine Member Insurance Services, Inc. which was established to sell automobile warranty, credit life and disability insurance products associated with loan products. Collectively the entities are referred to as the "Company."
These condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and Article 8-03 of Regulation S-X and do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for a complete presentation of the Company's consolidated financial condition and results of operations. It is recommended that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2015 filed with the U.S. Securities and Exchange Commission ("SEC") on March 29, 2016.
In the opinion of management, the information reflects all adjustments (consisting only of normal recurring adjustments) which are necessary in order to make the financial statements not misleading and for a fair representation of the results of operations for such periods. The results for the three- and nine-month periods ended September 30, 2016 should not be considered as indicative of results for a full year, or any other future period.
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. Material estimates that are particularly susceptible to change in the near term are determining the allowance for loan losses, accounting for deferred income taxes as well as the valuation of foreclosed real estate.
|
2. Recent Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Notes | |
2. Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS
In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The ASU requires equity investments to be measured at fair value with changes in fair values recognized in net earnings, simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment and eliminates the requirement to disclose fair values, the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost. The ASU also clarifies that the Company should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale debt securities in combination with the Companys other deferred tax assets. These amendments are effective for the Company beginning January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Companys consolidated financial statements.
In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) which will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with term of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. The new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is in the process of determining the effect of the ASU on its consolidated balance sheets and consolidated statements of operations. Early application will be permitted for all organizations.
In March 2016 the FASB issued ASU No. 2016-09 Compensation-Stock Compensation (Topic 718) intended to improve the accounting for employee share-based payments. The ASU simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Early adoption is permitted for any organization in any interim or annual period. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company is in the process of determining the effect of the ASU on its consolidated balance sheet and consolidated statements of operations.
In June 2016, FASB issued Accounting Standards Update ("ASU") No. 2016-13 Financial Instruments-Credit Losses (Topic 326). The ASU improves financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by the Company. The ASU requires the Company to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. The Company will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU will take effect for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is in the process of determining the effect of the ASU on its consolidated balance sheets and consolidated statements of operations.
In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the appropriate classification of eight specific cash flow issues on the cash flow statement. Debt prepayment costs should be classified as an outflow for financing activities. Settlement of zero-coupon debt instruments divides the interest portion as an outflow for operating activities and the principal portion as an outflow for financing activities. Contingent consideration payments made after a business combination should be classified as outflows for financing and operating activities. Proceeds from the settlement of bank-owned life insurance policies should be classified as inflows from investing activities. Other specific areas are identified in the ASU as to the appropriate classification of the cash inflows or outflows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and must be applied using a retrospective transition method to each period presented. The Company does not expect this ASU to have a material impact on the Companys consolidated financial statements.
|
3. Earnings (loss) Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. Earnings (loss) Per Share | 3. Earnings (Loss) Per Share
Earnings (loss) per share ("EPS") has been computed on the basis of the weighted-average number of shares of common stock outstanding. For the three-months ended September 30, 2016, the outstanding stock options are considered dilutive securities for purposes of calculating diluted EPS which was computed using the treasury stock method. For the three-months ended September 30, 2015 and the nine-months ended September 30, 2015 and 2016, the outstanding stock options were not considered dilutive securities due to the net loss incurred by the Company. The shares purchased by the ESOP are included in the weighted-average shares when they are committed to be released ($ in thousands, except per share amounts):
|
4. Securities Held To Maturity |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. Securities Held To Maturity | 4. Securities Held to Maturity
Securities have been classified as held to maturity according to management intent. The carrying amount of securities and their fair values are as follows (in thousands):
There were no securities pledged at September 30, 2016 or December 31, 2015.
Securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position at the date indicated, are as follows (in thousands):
At September 30, 2016 the unrealized losses on eight securities were considered by management to be attributable to changes in market interest rates, and not to credit risk on the part of the issuer. Accordingly, if market interest rates were to decline, much or the entire decline in market value would likely be recovered through market appreciation. As management has the ability and intent to hold debt securities until maturity, or for the foreseeable future, no declines in the fair value below amortized cost are deemed to be other than temporary.
|
5. Loans |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. Loans | 5. Loans The loan portfolio segments and classes as of the dates indicated are as follows (in thousands):
The Company has divided the loan portfolio into three portfolio segments and eight classes, each with different risk characteristics and methodologies for assessing risk. The portfolio segments identified by the Company are as follows:
Real Estate Mortgage Loans. Real estate mortgage loans are loans comprised of three classes: One- to four-family, Commercial real estate and Construction and lot loans. The Company generally originates one- to four-family mortgage loans in amounts up to 80% of the lesser of the appraised value or purchase price of a mortgaged property, but will also permit loan-to-value ratios of up to 95%. For one- to four-family loans exceeding an 80% loan-to-value ratio, the Company generally requires the borrower to obtain private mortgage insurance covering any loss on the amount of the loan in excess of 80% in the event of foreclosure. Commercial real estate loans are generally originated at 75% or less loan-to-value ratio and have amortization terms of up to 20 years and maturities of up to ten years. Construction loans to borrowers are to finance the construction of one- to four-family, owner occupied properties. These loans are categorized as construction loans during the construction period, later converting to residential real estate loans after the construction is complete and amortization of the loan begins. Real estate construction loan funds are disbursed periodically based on the percentage of construction completed. If the estimate of construction cost proves to be inaccurate, the Company may be compelled to advance additional funds to complete the construction with repayment dependent, in part, on the success of the ultimate project rather than the ability of a borrower to repay the loan. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. Construction loans are typically secured by the properties under construction. The Company also makes loans for the purchase of developed lots for future construction of the borrower's primary residence. The Company will generally originate lot loans in an amount up to 75% of the lower of the purchase price or appraisal and have a maximum amortization of up to 20 years and maturities up to 20 years. Construction and lot loan lending is generally considered to involve a higher degree of credit risk than long-term permanent financing of residential properties.
Commercial Loans. Commercial loans are comprised of non-real estate secured and unsecured loans. The Company offers these commercial loans generally to its commercial real estate borrowers.
Consumer Loans. Consumer loans are comprised of four classes: Home Equity, Automobile, Credit cards and unsecured, and Other. The Company offers a variety of secured consumer loans, including home equity, new and used automobile, boat and other recreational vehicle loans, and loans secured by deposit accounts. The Company also offers unsecured consumer loans including a credit card product. The Company originates its consumer loans primarily in its market area. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Loans to consumers are extended after a credit evaluation, including the creditworthiness of the borrower(s), the purpose of the credit, and the secondary source of repayment. Consumer loans are made at fixed and variable interest rates and may be made on terms of up to twenty years. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.
An analysis of the change in the allowance for loan losses for the periods indicated, is as follows (in thousands):
The following summarizes the loan credit quality by loan grade and class at the dates indicated (in thousands):
Internally assigned loan grades are defined as follows:
Pass A Pass loan's primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary.
Special Mention A Special Mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company's credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.
Substandard A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loss A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future.
Age analysis of past-due loans at the dates indicated is as follows (in thousands):
The following summarizes the amount of impaired loans at the dates indicated (in thousands):
The average net investment in impaired loans and interest income recognized and received on impaired loans for the periods shown are as follows (in thousands):
The Company had no troubled debt restructurings (TDR) entered into during the three- and nine-months ended September 30, 2016 or 2015. The Company had no commitments to extend additional credit to borrowers whose terms have been modified in TDRs.
|
6. Lines of Credit |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Notes | |
6. Lines of Credit | 6. Lines of Credit The Company has an unsecured federal funds line of credit for $6.0 million with a correspondent bank and a $41.8 million line with the Federal Home Loan Bank of Atlanta collateralized by a blanket lien on qualifying loans. At September 30, 2016, the Company had $5.5 million outstanding in FHLB advances that mature in 2016 at a weighted average fixed rate of 0.40%. At December 31, 2015, the Company had $5.0 million outstanding in FHLB advances that matured in 2016 at a weighted average fixed rate of 0.39%. At September 30, 2016 and December 31, 2015, the Company had no outstanding balances on the federal funds line of credit.
|
7. Off-balance-sheet Financial Instruments |
9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||
Notes | |||||||||||
7. Off-balance-sheet Financial Instruments | 7. Off-Balance-Sheet Financial Instruments The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are unused lines of credit and commitments to extend credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments.
The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for unused lines of credit and commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed-expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management's credit evaluation of the counterparty.
Unused lines of credit and commitments to extend credit typically result in loans with a market interest rate when funded. A summary of the amounts of the Company's financial instruments, with off-balance-sheet risk follows at September 30, 2016 (in thousands):
|
8. Fair Value of Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8. Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments The estimated fair values of the Company's financial instruments are as follows (in thousands):
Discussion regarding the assumptions used to compute the estimated fair values of financial instruments can be found in Note 1 to the consolidated financial statements included in the 2015 Form 10-K.
|
9. Employee Stock Ownership Plan |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Notes | |
9. Employee Stock Ownership Plan | 9. Employee Stock Ownership Plan The Holding Company has established an ESOP which acquired 98,756 shares of common stock in exchange for a $988,000 note payable from the Bank to the Holding Company. The note bears interest at a fixed rate of 4.25%, is payable in annual installments and is due in 2021. The ESOP expense was $1,000 for the three-months ended September 30, 2016 and $4,000 for the three-months ended September 30, 2015. The ESOP expense was $5,000 for the nine-months ended September 30, 2016 and $11,000 for the nine-months ended September 30, 2015. At September 30, 2016 and 2015, there were 44,539 and 54,412 shares, respectively, that had not been allocated under the ESOP.
|
10. Equity Incentive Plan |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10. Equity Incentive Plan | 10. Equity Incentive Plan In 2012, the stockholders approved the Companys 2012 Equity Incentive Plan (Plan). The Plan authorizes the grant of options for up to 123,445 shares of the Holding Company's common stock. The options granted have ten year terms and vest from one to five years. A summary of the activity in the Company's stock options is as follows:
At September 30, 2016, there was approximately $63,000 of unrecognized compensation expense related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted average period of thirty seven months. The total fair value of shares vesting and recognized as compensation expense was $12,000 for the three-months ended September 30, 2016 and $12,000 for the same period in 2015. The total fair value of shares vesting and recognized as compensation expense was $34,000 for the nine-months ended September 30, 2016 and 2015.
The Plan also authorized the grant of up to 49,378 restricted common shares. The restricted shares awarded vest equally over five years from the date of grant. Restricted shares are forfeited if employment is terminated before the restriction period expires. The record holder of the Company's restricted shares of common stock possesses all the rights of a holder of the Company common stock, including the right to receive dividends on and to vote the restricted shares. The restricted shares may not be sold, transferred, pledged, assigned, encumbered, or otherwise alienated or hypothecated until they become fully vested and transferable in accordance with the agreements. Compensation expense for restricted stock totaled $39,000 for the three-months ended September 30, 2016 and 2015. Compensation expense for restricted stock totaled $118,000 for the nine-months ended September 30, 2016 and $116,000 for the nine-months ended September 30, 2015. The income tax benefit recognized was $15,000 for the three months ended September 30, 2016 and 2015 and $45,000 for the nine-months ended September 30, 2016 and 2015.
A summary of the status of the Company's restricted stock and changes during the periods then ended are presented below:
Total unrecognized compensation cost related to these non-vested restricted stock amounted to approximately $340,000 at September 30, 2016. This cost is expected to be recognized monthly over the related vesting period using the straight-line method through 2019.
|
11. Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11. Fair Value Measurements | 11. Fair Value Measurements Impaired collateral-dependent loans are carried at fair value when the current collateral value is lower than the carrying value of the loan. Those impaired collateral-dependent loans which are measured at fair value on a nonrecurring basis are as follows (in thousands):
Foreclosed real estate is recorded at fair value less estimated costs to sell. Foreclosed real estate which is measured at fair value on a nonrecurring basis is summarized below (in thousands):
|
12. Regulatory Matters |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12. Regulatory Matters | 12. Regulatory Matters
On September 30, 2016, the Bank was subject to minimum capital requirements imposed by the Federal Deposit Insurance Corporation. Capital adequacy requirements are quantitative measures established by regulation that require the Bank to maintain minimum amounts and ratios of capital.
At September 30, 2016, the Bank exceeded all regulatory capital requirements. Consistent with its goals to operate a sound and profitable organization, the Banks policy is to maintain a well-capitalized status under the capital categories. Based on capital levels at September 30, 2016, the Bank was considered to be well-capitalized.
The Bank's actual regulatory capital amounts and percentages are presented in the table ($ in thousands).
In addition to the minimum Common Equity Tier 1 (CET-1), Tier 1 and Total Capital ratios, the Bank has to maintain a capital conservation buffer consisting of additional CET-1 capital equal above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained earnings that could be utilized for such actions. This new capital conservation buffer requirement began to be phased in starting in January 2016 at 0.625% of risk-weighted assets and will increase each year to an amount equal to 2.5% of risk-weighted assets when fully implemented in January 2019.
For a bank holding company with less than $1.0 billion in assets, the capital guidelines apply on a bank only basis and the Federal Reserve expects the holding company's subsidiary banks to be well capitalized under the prompt corrective action regulations. If the Company was subject to regulatory guidelines for bank holding companies with $1.0 billion or more in assets, at September 30, 2016 the Company would have exceeded all regulatory capital requirements.
|
1. Organization and Basis of Presentation: Business Description and Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Business Description and Accounting Policies | Sunshine Financial, Inc. ("Sunshine Financial" or the "Holding Company"), a Maryland corporation, is the holding company for Sunshine Community Bank (the "Bank") and owns all the outstanding common stock of the Bank.
Sunshine Community Bank and its holding company, Sunshine Financial, Inc. announced July 11, 2016 that the Bank completed its conversion from a federal savings bank charter to a Florida state bank charter effective July 1, 2016. As a result of the charter conversion, the Banks legal name changed to Sunshine Community Bank.
The changes had no effect on bank products or services, and deposits remain insured through the Federal Deposit Insurance Corporation. As a Florida-chartered financial institution, the Florida Office of Financial Regulation is the primary regulator for the Bank. Sunshine Community Bank is also regulated by the Federal Deposit Insurance Corporation. Sunshine Financial, Inc. continues to be regulated by the Board of Governors of the Federal Reserve System (the Federal Reserve).
The Holding Company's only business is the operation of the Bank. The Bank, through its six banking offices, provides a variety of retail community banking services to individuals and businesses primarily in Leon County, Florida. The Bank's deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation. The Bank's subsidiary is Sunshine Member Insurance Services, Inc. which was established to sell automobile warranty, credit life and disability insurance products associated with loan products. Collectively the entities are referred to as the "Company."
These condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and Article 8-03 of Regulation S-X and do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for a complete presentation of the Company's consolidated financial condition and results of operations. It is recommended that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2015 filed with the U.S. Securities and Exchange Commission ("SEC") on March 29, 2016.
In the opinion of management, the information reflects all adjustments (consisting only of normal recurring adjustments) which are necessary in order to make the financial statements not misleading and for a fair representation of the results of operations for such periods. The results for the three- and nine-month periods ended September 30, 2016 should not be considered as indicative of results for a full year, or any other future period.
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. Material estimates that are particularly susceptible to change in the near term are determining the allowance for loan losses, accounting for deferred income taxes as well as the valuation of foreclosed real estate. |
3. Earnings (loss) Per Share: Earnings Per Share, Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Earnings Per Share, Policy |
Earnings (loss) per share ("EPS") has been computed on the basis of the weighted-average number of shares of common stock outstanding. For the three-months ended September 30, 2016, the outstanding stock options are considered dilutive securities for purposes of calculating diluted EPS which was computed using the treasury stock method. For the three-months ended September 30, 2015 and the nine-months ended September 30, 2015 and 2016, the outstanding stock options were not considered dilutive securities due to the net loss incurred by the Company. The shares purchased by the ESOP are included in the weighted-average shares when they are committed to be released ($ in thousands, except per share amounts): |
5. Loans: Real Estate Mortgage Loans Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Real Estate Mortgage Loans Policy | Real Estate Mortgage Loans. Real estate mortgage loans are loans comprised of three classes: One- to four-family, Commercial real estate and Construction and lot loans. The Company generally originates one- to four-family mortgage loans in amounts up to 80% of the lesser of the appraised value or purchase price of a mortgaged property, but will also permit loan-to-value ratios of up to 95%. For one- to four-family loans exceeding an 80% loan-to-value ratio, the Company generally requires the borrower to obtain private mortgage insurance covering any loss on the amount of the loan in excess of 80% in the event of foreclosure. Commercial real estate loans are generally originated at 75% or less loan-to-value ratio and have amortization terms of up to 20 years and maturities of up to ten years. Construction loans to borrowers are to finance the construction of one- to four-family, owner occupied properties. These loans are categorized as construction loans during the construction period, later converting to residential real estate loans after the construction is complete and amortization of the loan begins. Real estate construction loan funds are disbursed periodically based on the percentage of construction completed. If the estimate of construction cost proves to be inaccurate, the Company may be compelled to advance additional funds to complete the construction with repayment dependent, in part, on the success of the ultimate project rather than the ability of a borrower to repay the loan. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. Construction loans are typically secured by the properties under construction. The Company also makes loans for the purchase of developed lots for future construction of the borrower's primary residence. The Company will generally originate lot loans in an amount up to 75% of the lower of the purchase price or appraisal and have a maximum amortization of up to 20 years and maturities up to 20 years. Construction and lot loan lending is generally considered to involve a higher degree of credit risk than long-term permanent financing of residential properties. |
5. Loans: Commercial Loan Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Commercial Loan Policy | Commercial Loans. Commercial loans are comprised of non-real estate secured and unsecured loans. The Company offers these commercial loans generally to its commercial real estate borrowers. |
5. Loans: Consumer Loans Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Consumer Loans Policy | Consumer Loans. Consumer loans are comprised of four classes: Home Equity, Automobile, Credit cards and unsecured, and Other. The Company offers a variety of secured consumer loans, including home equity, new and used automobile, boat and other recreational vehicle loans, and loans secured by deposit accounts. The Company also offers unsecured consumer loans including a credit card product. The Company originates its consumer loans primarily in its market area. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Loans to consumers are extended after a credit evaluation, including the creditworthiness of the borrower(s), the purpose of the credit, and the secondary source of repayment. Consumer loans are made at fixed and variable interest rates and may be made on terms of up to twenty years. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. |
5. Loans: Internal Loan Grade Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Internal Loan Grade Policy | Internally assigned loan grades are defined as follows:
Pass A Pass loan's primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary.
Special Mention A Special Mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company's credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.
Substandard A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loss A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. |
7. Off-balance-sheet Financial Instruments: Off-Balance-Sheet Credit Exposure, Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Off-Balance-Sheet Credit Exposure, Policy | The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are unused lines of credit and commitments to extend credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments.
The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for unused lines of credit and commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed-expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management's credit evaluation of the counterparty. |
10. Equity Incentive Plan: Share-based Compensation, Option and Incentive Plans Policy (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Policies | |
Share-based Compensation, Option and Incentive Plans Policy | In 2012, the stockholders approved the Companys 2012 Equity Incentive Plan (Plan). The Plan authorizes the grant of options for up to 123,445 shares of the Holding Company's common stock. The options granted have ten year terms and vest from one to five years. A summary of the activity in the Company's stock options is as follows: |
3. Earnings (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
|
4. Securities Held To Maturity: Schedule of held to maturity securities carrying amount and fair value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of held to maturity securities carrying amount and fair value |
|
4. Securities Held To Maturity: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value |
|
5. Loans: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable |
|
5. Loans: Schedule of Changes in Allowance for Loan Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Allowance for Loan Losses | An analysis of the change in the allowance for loan losses for the periods indicated, is as follows (in thousands):
|
5. Loans: Financing Receivable Credit Quality Indicators (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators |
|
5. Loans: Schedule of Past Due Loans Age Analysis (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Past Due Loans Age Analysis | Age analysis of past-due loans at the dates indicated is as follows (in thousands):
|
5. Loans: Schedule of Impaired Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impaired Loans |
The following summarizes the amount of impaired loans at the dates indicated (in thousands):
|
5. Loans: Schedule of Investment in Impaired Loans and Interest Income Recognized and Received (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment in Impaired Loans and Interest Income Recognized and Received |
|
7. Off-balance-sheet Financial Instruments: Schedule of Fair Value, Off-balance Sheet Risks (Tables) |
9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||
Tables/Schedules | |||||||||||
Schedule of Fair Value, Off-balance Sheet Risks |
|
8. Fair Value of Financial Instruments: Schedule of Financial Instruments Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Fair Value |
|
10. Equity Incentive Plan: Schedule of Equity Incentive Plan Stock Options (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Incentive Plan Stock Options |
|
10. Equity Incentive Plan: Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity |
A summary of the status of the Company's restricted stock and changes during the periods then ended are presented below:
|
11. Fair Value Measurements: Schedule Of Impaired Collateral Dependent Loans Measured At Fair Value On Nonrecurring Basis (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Impaired Collateral Dependent Loans Measured At Fair Value On Nonrecurring Basis |
|
11. Fair Value Measurements: Schedule of Foreclosed Real Estate Measured at Fair Value on Nonrecurring Basis (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Foreclosed Real Estate Measured at Fair Value on Nonrecurring Basis |
|
12. Regulatory Matters: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Bank's actual regulatory capital amounts and percentages are presented in the table ($ in thousands).
|
1. Organization and Basis of Presentation: Business Description and Accounting Policies (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Details | |
Entity Incorporation, State Country Name | Maryland corporation |
3. Earnings (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Basic EPS | Net earnings (loss) | ||||
Earnings (Loss) Per Share Income | $ 35 | $ (121) | $ (50) | $ (68) |
Weighted Average Number of Shares Issued, Basic | 944,569 | 987,627 | 942,100 | 987,445 |
Per Share Amount | $ 0.04 | $ (0.12) | $ (0.05) | $ (0.07) |
Effect of dilutive securities | Incremental shares from assumed conversion of options (antidilutive in 2012) | ||||
Weighted Average Number of Shares Issued, Basic | 32,921 | |||
Diluted EPS | Net earnings (loss) | ||||
Earnings (Loss) Per Share Income | $ 35 | $ (121) | $ (50) | $ (68) |
Weighted Average Number of Shares Issued, Basic | 977,490 | 987,627 | 942,100 | 987,445 |
Per Share Amount | $ 0.04 | $ (0.12) | $ (0.05) | $ (0.07) |
4. Securities Held To Maturity: Schedule of held to maturity securities carrying amount and fair value (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Securities held to maturity fair value | $ 17,887 | $ 20,854 |
Held-to-maturity Securities | ||
Held to Maturity Securities Amortized Cost | 17,698 | 21,063 |
Held to Maturity Securities Gross Unrealized Gains | 244 | 69 |
Held to Maturity Securities Gross Unrealized Losses | (55) | (278) |
Securities held to maturity fair value | 17,887 | 20,854 |
Collateralized Mortgage Backed Securities | ||
Held to Maturity Securities Amortized Cost | 781 | 1,086 |
Held to Maturity Securities Gross Unrealized Gains | 36 | 42 |
Securities held to maturity fair value | 817 | 1,128 |
Collateralized Mortgage Obligations | ||
Held to Maturity Securities Amortized Cost | 16,917 | 19,977 |
Held to Maturity Securities Gross Unrealized Gains | 208 | 27 |
Held to Maturity Securities Gross Unrealized Losses | (55) | (278) |
Securities held to maturity fair value | $ 17,070 | $ 19,726 |
4. Securities Held To Maturity (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Details | ||
Held-to-maturity Securities Pledged as Collateral | $ 0 | $ 0 |
4. Securities Held To Maturity: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) - Collateralized Mortgage Obligations - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (94) | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,332 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (55) | (184) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 4,396 | $ 5,839 |
5. Loans: Schedule of Investment in Impaired Loans and Interest Income Recognized and Received (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
One To Four Family | ||||
Impaired Financing Receivable, Average Recorded Investment | $ 2,578 | $ 2,711 | $ 2,587 | $ 2,742 |
Impaired Financing Receivable Interest Income Recognized | 34 | 35 | 110 | 92 |
Impaired Financing Receivable Interest Income Received | 36 | 36 | 113 | 93 |
Home Equity Line of Credit | ||||
Impaired Financing Receivable, Average Recorded Investment | 181 | 265 | 184 | 271 |
Impaired Financing Receivable Interest Income Recognized | 3 | 3 | 10 | 9 |
Impaired Financing Receivable Interest Income Received | 2 | 4 | 10 | 10 |
Impaired Financing Receivables | ||||
Impaired Financing Receivable, Average Recorded Investment | 2,759 | 2,976 | 2,771 | 3,013 |
Impaired Financing Receivable Interest Income Recognized | 37 | 38 | 120 | 101 |
Impaired Financing Receivable Interest Income Received | $ 38 | $ 40 | $ 123 | $ 103 |
5. Loans (Details) |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Details | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 |
6. Lines of Credit: Line of Credit (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Line of Credit Facility, Fair Value of Amount Outstanding | $ 5,500 | $ 5,000 |
Federal Home Loan Bank, Advances, Interest Rate | 0.40% | 0.39% |
Correspondent Bank | ||
Lines of Credit, Fair Value Disclosure | $ 6,000 | |
Federal Home Loan Bank of Atlanta | ||
Lines of Credit, Fair Value Disclosure | $ 41,800 |
7. Off-balance-sheet Financial Instruments: Schedule of Fair Value, Off-balance Sheet Risks (Details) - Commitments to Extend Credit $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Unused Commitments to Extend Credit | $ 19,525 |
Long-term Line of Credit | $ 276 |
9. Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Apr. 05, 2011 |
|
Details | |||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 98,756 | 98,756 | |||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | $ 988 | ||||
Employee Stock Ownership Plan (ESOP) Interest Rate on Loan for Shares | 4.25% | ||||
ESOP compensation expense | $ 1 | $ 4 | $ 5 | $ 11 | |
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 44,539 | 54,412 | 44,539 | 54,412 |
10. Equity Incentive Plan: Share-based Compensation, Option and Incentive Plans Policy: 2012 Equity Incentive Plan Common Stock Options (Details) |
May 23, 2012
shares
|
---|---|
Equity Incentive Plan -- 2012 | |
Common Stock Options Authorized | 123,445 |
10. Equity Incentive Plan: Equity Incentive Plan Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Equity Incentive Plan Common Stock Expense Cost | The cost is expected to be recognized over a weighted average period of thirty seven months. | |||
Stock based compensation expense | $ 152 | $ 150 | ||
Equity Incentive Plan -- 2012 | ||||
Stock based compensation expense | $ 12 | $ 12 |
10. Equity Incentive Plan (Details) - Equity Incentive Plan -- 2012 - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
May 23, 2012 |
|
Number of Restricted Stock Authorized | 49,378 | ||||
Compensation expense for restricted stock | $ 39 | $ 39 | $ 118 | $ 116 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 15 | $ 15 | $ 45 | $ 45 |
10. Equity Incentive Plan: Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) - Restricted Stock - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | (800) | |||
Share based Compensation Arrangement By Share based Payment Award Options Weighted Average Grant Date Fair Value | $ 18.25 | |||
Restricted stock outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 27,900 | 28,700 | 37,200 | 38,000 |
Share based Compensation Arrangement By Share based Payment Award Options Weighted Average Grant Date Fair Value | $ 16.88 | $ 16.92 | $ 16.91 | $ 16.91 |
10. Equity Incentive Plan: Nonvested Restricted Stock Expense (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Equity Incentive Plan -- 2012 | |
Unrecognized Compensation Expense Related to Nonvested Restricted Stock | $ 340 |
11. Fair Value Measurements: Schedule Of Impaired Collateral Dependent Loans Measured At Fair Value On Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Home Equity Line of Credit | ||
Impaired Collateral Dependent Loans Fair Value | $ 37 | $ 16 |
Impaired Collateral Dependent Loans, Total | ||
Impaired Collateral Dependent Loans Fair Value | 613 | 770 |
Real Estate Loan | One To Four Family | ||
Impaired Collateral Dependent Loans Fair Value | $ 576 | $ 754 |
11. Fair Value Measurements: Schedule of Foreclosed Real Estate Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Foreclosed real estate | ||
Foreclosed real estate measured at fair value on nonrecurring basis | $ 426 | $ 433 |
4^HC [JB9\>3['H?':PJV<)KI ;C)!IBH=W3^]7NL(F(!/@M87(7
M9Q)S/R(^1^-GLZ=%3 $4U#XJB+"=X &4BD(A\-]9\S5D)%Z>S^K?4[4A^Z-P
M\(#JCVQ\'Y(M*&F@%:/R3SC]@+F$;12L4;FTDGIT'O690HD6+WF7)NU3OKDK
M9MIU I\)_!V!Y4 IS6_"BZJT.!&;6SN(.,'5CH=&U"3DYFB\2M5'1%6>*KZ]
M*]DI"KW!'#*&)\QJ0;"@OH3@'X 8
MI1S_P[ZH1V]P/%>D.:K&B#D[>JFY/'P&LWWSM5*]UVA^#1 3^#5::[LJK N"\6RNB<]F3M\A
M[.9GDF0L/3# )-\0IQ75%F5S*&@#?Y_B^I_G0]XD,6OK*X=UZC:6L)_+B\OK
M.W%^'AT_7=U?4/XN;CAVOX?G'Y'A[<(M'GZJ,UW"T:(J"(I4H?.P4%Z_SV
M-6A5[K<^;9 OXFOGMY_P+43Z5@>XE1TTCC*.X&]]>"!9(TYOMY,,6,Y4C()^
MR^^#H9*_AWA [*B7,VPXD3EN:TV/BH6\[%Q*L+-C"JWL%VO:HB8%F2V_R
MS6X=$!'PV,-D3]8D>-\C/H?@7[VE6; $BH7%(2?#G +4@8A7_AEUOPH&8BG
MZZ/ZG]BM=[\7%FY1/O6UZ[S9C)(:&C%*]X#37YA;N R"%4H;1U*-UJ$Z4BA1
MXC7-O8[S-.]
2><* N#$S'I: <1;C#?<'\0%?'>
M+ U;L?N *(M#F5_G!3L$H4^87<+PA%D0S*LO)?C/)7;\A,Z_IZ_..%Q%^BI5
MO_JA_OJ,P#H*K,^V^!GSU24[.5,%IHU/QY(*1^W2X2W9Y77>\'@G'_"R&$0+
M_X5I>VW)'IV_V7@W#:(#;R*[N*2D\_]G"20T+BQ_^[5)3RH%#H?C!UE^:?D.
M4$L#!!0 ( #5X;DF8G_1QH@$ +$# 9 >&PO=V]R:W-H965TE8/HX(^PG32.[-&'FTUWTR)Z"":*
MFUM*^O!_YD!!Z^/R1UC;_*1RX'$X?9#YEU;_ 5!+ P04 " U>&Y)+:23
M6Z(! "Q P &0 'AL+W=O
!
ME(I"(?#?6?,M9"1>GL_JWU.U(?NC" ZH]L?!^2+2AIH!6C\L\X_8"YA&T4
MK%&YM))Z=![UF4*)%J]YER;M4[[Y5LRTZP0^$_@' LN!4IJ/PHNJM#@1FUL[
MB#C!U8Z'1M0DY.9HO$K51T15GBJ^W9;L%(7>80X9PQ-FM2!84%]"\,]#'/@%
MG5^GK[_(<)WHZTQ??Q)_\X7 )@ELYA)OKY;X'G/W(0B[Z*D&VZ6GXTB-H_&Y
M>8MW>9WW/,WD#5Z5@^C@E["=-(X&ULC9G;;MLX$(9?Q? #5.(,#U;@&&B]*+H7"Q2]V+U6;#HV*EE>
M28F[;[\Z)>4$G %O;,G^.9H1^?TDI>V]:7]V9^_[U:^ZNG:/ZW/?WQZRK#N<
M?5UVGYJ;OP[_G)JV+OOAM'W.NEOKR^/4J*XRR'.;U>7ENMYMI]^^M[MM\])7
MEZO_WJZZE[HNV_^^^*JY/Z[5^NV''Y?G(MX1X;M5G)>)M"O&+R"W7T?''%T1EE/LXZV7!NZ!;^>S_*MOG
MR[5;/35]W]33BZ%3T_1^B)5_&F*=?7E\/ZG\J1\/W7#(@2!!!
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M\0 E'EA^ L"544 ]7)Y!\YJEYLC$(-L3#<*]!*
MX8,N2J??LW7 H%6F2W1?N"ON!HI/MP=K?37+_U!+ P04 " V>&Y)]1^Q
M_YH! "N P &0 'AL+W=O[6&JGN*K(+5@G''?$F?$R!&EK
MGP:=%B MDAVO$3VB?WX FPQ/46$&F;B.UU0J 15(>H]^?0. 5;_@_[I LZV+
MUM#BQ[+I5VM\PFZ,T+DX[ :=[S^B.VPH<;\&H-4(X$B#//%:9H.?'IW@"@]
M&*''E0FI8G_J7I'"?/.YRQ+M#I$KH SH HJ-@%Z03I@V+!/WOZ%X:Q*O