Iowa | 81-2510023 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
401 Fair Meadow Drive | ||||
Webster City, Iowa | 50595 | |||
(Address of principal executive offices) | (Zip Code) |
Common stock, par value $0.01 per share | The NASDAQ Stock Market, LLC | |
(Title of each class to be registered) | (Name of each exchange on which each class is to be registered) |
Page | ||||
Part I | ||||
Item 1 | Business | |||
Item 1A | Risk Factors | |||
Item 1B | Unresolved Staff Comments | |||
Item 2 | Properties | |||
Item 3 | Legal Proceedings | |||
Item 4 | Mine Safety Disclosures | |||
Part II | ||||
Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |||
Item 6 | Selected Financial Data | |||
Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||
Item 7A | Quantitative and Qualitative Disclosures about Market Risk | |||
Item 8 | Financial Statements and Supplementary Data | |||
Item 9 | Changes in Disagreements with Accountants on Accounting and Financial Disclosure | |||
Item 9A | Controls and Procedures | |||
Item 9B | Other Information | |||
Part III | ||||
Item 10 | Directors, Executive Officers and Corporate Governance | |||
Item 11 | Executive Compensation | |||
Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||
Item 13 | Certain Relationships and Related Transactions, and Director Independence | |||
Item 14 | Principal Accounting Fees and Services | |||
Part IV | ||||
Item 15 | Exhibits, Financial Statement Schedules | |||
Item 16 | Form 10-K Summary | |||
Signatures |
• | Statements of our goals, intentions and expectations; |
• | Statements regarding our business plans, prospects, growth and operating strategies; |
• | Statements regarding the quality of our loan and investment portfolios; and |
• | Estimates of our risks and future costs and benefits. |
• | General economic conditions, either nationally or in our market areas, that are worse than expected; |
• | Competition among depository and other financial institutions; |
• | Inflation and changes in the interest rate environment that reduce our margins and yields or reduce the fair value of financial instruments; |
• | Changes in consumer spending, borrowing and savings habits; |
• | Our ability to enter new markets successfully and capitalize on growth opportunities; |
• | Our ability to successfully integrate acquired branches or entities; |
• | Adverse changes in the securities markets; |
• | Changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; |
• | Changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board (FASB), the Securities and Exchange Commission (SEC) or the Public Company Accounting Oversight Board; |
• | Changes in our organization, compensation and benefit plans; |
• | Our ability to retain key employees; |
• | Changes in the level of government support for housing finance; |
• | Significant increases in our loan losses |
• | Weaknesses in internal control; and |
• | Changes in the financial condition, results of operations or future prospects of issuers of securities that we own. |
At December 31, | |||||||||||||
2018 | 2017 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
(Dollars in thousands) | |||||||||||||
One-to-four family residential real estate | $ | 52,335 | 81.4 | % | $ | 56,091 | 81.4 | % | |||||
Non-owner occupied one-to-four family residential real estate | 3,013 | 4.6 | 3,117 | 4.5 | |||||||||
Commercial real estate | 2,163 | 3.4 | 3,615 | 5.2 | |||||||||
Consumer | 6,802 | 10.6 | 6,146 | 8.9 | |||||||||
Total loans receivable | 64,313 | 100.0 | % | 68,969 | 100.0 | % | |||||||
Discount/Premium on loan purchases | 30 | 10 | |||||||||||
Deferred loan costs (fees) | (28 | ) | (30 | ) | |||||||||
Allowance for loan losses | (509 | ) | (538 | ) | |||||||||
Total loans receivable, net | $ | 63,806 | $ | 68,411 |
One-to-four family residential real estate | Non-owner occupied one-to-four family residential real estate | Commercial real estate and land | Consumer | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Due During the Years Ending December 31, | |||||||||||||||||||
2019 | $ | 618 | $ | — | $ | — | $ | 415 | $ | 1,033 | |||||||||
2020 | 106 | 5 | — | 639 | 750 | ||||||||||||||
2021 to 2022 | 505 | 57 | 63 | 2,605 | 3,230 | ||||||||||||||
2023to 2027 | 2,689 | 297 | 660 | 2,404 | 6,051 | ||||||||||||||
2028 to 2032 | 10,322 | 992 | 1,072 | 78 | 12,463 | ||||||||||||||
2033 and beyond | 38,096 | 1,661 | 368 | 661 | 40,786 | ||||||||||||||
Total | $ | 52,335 | $ | 3,013 | $ | 2,163 | $ | 6,802 | $ | 64,313 |
Due After December 31, 2019 | |||||||||||
Fixed | Adjustable | Total | |||||||||
(In thousands) | |||||||||||
One-to-four family residential real estate | $ | 35,604 | $ | 16,113 | $ | 51,717 | |||||
Non-owner occupied one-to-four family residential real estate | 1,655 | 1,358 | 3,013 | ||||||||
Commercial real estate | 1,990 | 173 | 2,163 | ||||||||
Consumer | 6,387 | — | 6,387 | ||||||||
Total | $ | 45,636 | $ | 17,644 | $ | 63,280 |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Total loans, at beginning of period | $ | 68,969 | $ | 61,167 | |||
Loans originated: | |||||||
One-to-four family residential | 5,944 | 7,210 | |||||
Non-owner occupied one-to-four family residential real estate | 839 | 432 | |||||
Commercial real estate | 332 | 569 | |||||
Consumer | 3,886 | 2,805 | |||||
Total loans originated | 11,001 | 11,016 | |||||
Loans purchased: | |||||||
One-to-four family residential | — | 9,806 | |||||
Non-owner occupied one-to-four family residential real estate | — | — | |||||
Commercial real estate | — | — | |||||
Consumer | — | — | |||||
Total loans purchased | — | 9,806 | |||||
Loans sold: | |||||||
One-to-four family residential | (563 | ) | (850 | ) | |||
Non-owner occupied one-to-four family residential real estate | — | — | |||||
Commercial real estate | — | — | |||||
Consumer | — | — | |||||
Total loans sold | (563 | ) | (850 | ) | |||
Other: | |||||||
Principal repayments | (15,094 | ) | (12,170 | ) | |||
Net loan activity | (4,656 | ) | 7,802 | ||||
Total loans, including loans held for sale, at end of period | $ | 64,313 | $ | 68,969 |
Loans Delinquent For | Total | |||||||||||||||||||
30-89 Days | 90 Days and Over | |||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
At December 31, 2018 | ||||||||||||||||||||
One-to-four family residential | 25 | $ | 990 | 7 | $ | 369 | 32 | $ | 1,359 | |||||||||||
Non-owner occupied one-to-four family residential real estate | — | — | — | — | — | — | ||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||
Consumer | 31 | 253 | 9 | 64 | 40 | 317 | ||||||||||||||
Total | 56 | 1,243 | 16 | 433 | 72 | 1,676 | ||||||||||||||
At December 31, 2017 | ||||||||||||||||||||
One-to-four family residential | 27 | $ | 1,108 | 10 | $ | 492 | 37 | $ | 1,600 | |||||||||||
Non-owner occupied one-to-four family residential real estate | 1 | 18 | 6 | 177 | 7 | 195 | ||||||||||||||
Commercial real estate | 1 | 36 | 1 | 275 | 2 | 311 | ||||||||||||||
Consumer | 33 | 249 | 9 | 54 | 42 | 303 | ||||||||||||||
Total | 62 | $ | 1,411 | 26 | $ | 998 | 88 | $ | 2,409 |
At December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in thousands) | |||||||
Non-accrual loans: | |||||||
One-to-four family residential real estate | $ | 581 | $ | 151 | |||
Non-owner occupied one-to-four family residential real estate | — | — | |||||
Commercial real estate | — | 275 | |||||
Consumer | 64 | — | |||||
Total | 645 | 426 | |||||
Accruing loans 90 days or more past due: | |||||||
One-to-four family residential real estate | $ | — | $ | 341 | |||
Non-owner occupied one-to-four family residential real estate | — | — | |||||
Commercial real estate | — | — | |||||
Consumer | — | 57 | |||||
Total loans 90 days or more past due | — | 398 | |||||
Total non-performing loans | 645 | 824 | |||||
Real estate owned | 421 | 48 | |||||
Other non-performing assets | — | — | |||||
Total non-performing assets | $ | 1,066 | $ | 872 | |||
Ratios: | |||||||
Total non-performing loans to total loans | 1.00 | % | 1.19 | % | |||
Total non-performing assets to total assets | 0.78 | % | 0.66 | % |
At December 31, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Classification of loans: | |||||||
Substandard | $ | 645 | $ | 1,289 | |||
Doubtful | — | — | |||||
Loss | — | — | |||||
Total classified loans | $ | 645 | $ | 1,289 | |||
Special mention | $ | 1,614 | $ | 1,719 |
At or For the Years Ended December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in thousands) | |||||||
Balance at beginning of year | $ | 538 | $ | 487 | |||
Charge-offs: | |||||||
One-to-four family residential | (67 | ) | (11 | ) | |||
Non-owner occupied one-to-four family residential real estate | — | — | |||||
Commercial real estate | — | — | |||||
Consumer | (61 | ) | (14 | ) | |||
Total charge-offs | (128 | ) | (25 | ) | |||
Recoveries: | |||||||
One-to-four family residential | — | — | |||||
Non-owner occupied one-to-four family residential real estate | — | — | |||||
Commercial real estate | — | — | |||||
Consumer | 21 | — | |||||
Total recoveries | 21 | — | |||||
Net charge-offs | (107 | ) | (25 | ) | |||
Provision for loan losses | 78 | 76 | |||||
Balance at end of year | $ | 509 | $ | 538 | |||
Ratios: | |||||||
Net charge-offs to average loans outstanding | 0.17 | % | 0.04 | % | |||
Allowance for loan losses to non-performing loans at end of year | 78.91 | % | 65.29 | % | |||
Allowance for loan losses to total loans at end of year | 0.79 | % | 0.78 | % |
At December 31, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Amount | Percent of Allowance to Total Allowance | Percent of Loans in Category to Total Loans | Amount | Percent of Allowance to Total Allowance | Percent of Loans in Category to Total Loans | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
One-to-four family residential | $ | 407 | 80.0 | % | 81.4 | % | $ | 393 | 73.1 | % | 81.4 | % | |||||||
Non-owner occupied one-to-four family residential real estate | 13 | 2.5 | 4.6 | 26 | 4.8 | 4.5 | |||||||||||||
Commercial real estate | 19 | 3.7 | 3.4 | 33 | 6.1 | 5.2 | |||||||||||||
Consumer | 70 | 13.8 | 10.6 | 86 | 16.0 | 8.9 | |||||||||||||
Total allowance for loan losses | $ | 509 | 100.0 | % | 100.0 | % | $ | 538 | 100.0 | % | 100.0 | % |
At December 31, | |||||||||||||||
2018 | 2017 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
U.S government and agency securities | $ | 3,740 | $ | 3,714 | $ | 1,239 | $ | 1,234 | |||||||
Mortgage-backed securities(1) | 26,511 | 25,649 | 27,332 | 26,784 | |||||||||||
Municipal securities | 14,484 | 14,259 | 15,051 | 15,111 | |||||||||||
Total securities available-for-sale | $ | 44,735 | $ | 43,622 | $ | 43,622 | $ | 43,129 |
(1) Represents securities issued by Fannie Mae, Freddie Mac or Ginnie Mae, and are backed by residential mortgage loans. |
One Year or Less | More than One Year through Five Years | More than Five Years through Ten Years | More than Ten Years | Total Securities | ||||||||||||||||||||||||||||||||||
Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Fair Value | Weighted Average Yield | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 2,500 | 3.58 | % | $ | — | — | % | $ | 1,240 | 2.66 | % | $ | — | — | % | $ | 3,740 | $ | 3,714 | 3.41 | % | ||||||||||||||||
Mortgage-backed securities | — | — | 23,078 | 1.95 | 3,433 | 2.73 | — | — | 26,511 | 25,649 | 2.04 | |||||||||||||||||||||||||||
Municipal securities | 429 | 1.85 | 2,244 | 3.20 | 6,467 | 1.88 | 5,345 | 1.28 | 14,485 | 14,259 | 3.05 | |||||||||||||||||||||||||||
Total securities available-for-sale | $ | 2,929 | 3.33 | % | $ | 25,322 | 2.06 | % | $ | 11,140 | 2.23 | % | $ | 5,345 | 1.28 | % | $ | 44,736 | $ | 43,622 | 2.48 | % |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Average Balance | Percent | Weighted Average Rate | Average Balance | Percent | Weighted Average Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Deposit type: | |||||||||||||||||||
Statement savings | $ | 14,510 | 17.5 | % | 0.24 | % | $ | 14,369 | 16.5 | % | 0.23 | % | |||||||
Money market | 11,114 | 13.4 | 0.84 | 11,373 | 13.1 | 0.30 | |||||||||||||
NOW | 17,711 | 21.4 | 0.05 | 18,337 | 21.1 | 0.08 | |||||||||||||
Certificates of deposit | 39,406 | 47.7 | 1.48 | 42,785 | 49.3 | 1.21 | |||||||||||||
Total deposits | $ | 82,741 | 100.0 | % | 0.86 | % | $ | 86,864 | 100.0 | % | 0.72 | % |
At December 31, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Interest Rate: | |||||||
Less than 1% | $ | — | $ | 16,330 | |||
1.00% - 1.99% | 27,048 | 26,375 | |||||
2.00% - 2.99% | 13,700 | — | |||||
Total | $ | 40,748 | $ | 42,705 |
At December 31, 2018 | ||||||||||||||||||||||
Period to Maturity | ||||||||||||||||||||||
Less Than or Equal to One Year | Over One Year to Two Years | Over Two Years to Three Years | Over Three Years | Total | Percentage of Total Certificate Accounts | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Interest Rate: | ||||||||||||||||||||||
Less than or equal to1.00% | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | ||||||||||
1.00% - 1.99% | 11,654 | 5,018 | 4,618 | 5,758 | 27,048 | 66.4 | ||||||||||||||||
2.00% - 2.99% | 11,905 | 1,697 | 98 | — | 13,700 | 33.6 | ||||||||||||||||
Total | $ | 23,559 | $ | 6,715 | $ | 4,716 | $ | 5,758 | $ | 40,748 | 100 | % |
At December 31, 2018 | |||
(In thousands) | |||
Three months or less | $ | 892 | |
Over three months through six months | 3,853 | ||
Over six months through one year | 6,441 | ||
Over one year to three years | 2,229 | ||
Over three years | 1,614 | ||
Total | $ | 15,029 |
At or For the Years Ended December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in thousands) | |||||||
FHLB: | |||||||
Balance at end of period | $ | 24,000 | $ | 14,000 | |||
Average balance during period | $ | 14,055 | $ | 4,315 | |||
Maximum outstanding at any month end | $ | 24,000 | $ | 14,000 | |||
Weighted average interest rate at end of period | 2.53 | % | 2.21 | % | |||
Average interest rate during period | 2.31 | % | 1.37 | % |
• | well-capitalized (at least 5% leverage capital, 8% Tier 1 risk-based capital, 10% total risk-based capital and 6.5% common equity Tier 1 risk-based capital); |
• | adequately capitalized (at least 4% leverage capital, 6% Tier 1 risk-based capital, 8% total risk-based capital and 4.5% common equity Tier 1 risk-based capital); |
• | undercapitalized (less than 4% leverage capital, 6% Tier 1 risk-based capital, 8% total risk-based capital or 4.5% common equity Tier 1 risk-based capital); |
• | significantly undercapitalized (less than 3% leverage capital, 4% Tier 1 risk-based capital, 6% total risk-based capital or 3% common equity Tier 1 risk-based capital); and |
• | critically undercapitalized (less than 2% tangible capital). |
• | Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; |
• | Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one- to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services; |
• | Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; |
• | Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; |
• | Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; |
• | fair lending laws; |
• | Unfair or Deceptive Acts or Practices laws and regulations; |
• | Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; |
• | Truth in Savings Act; and |
• | rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws. |
• | Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; |
• | Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; |
• | Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; |
Year Opened | Owned/ Leased | Date of Lease Expiration | Net Book Value as of | |||||||
Location | December 31, 2018 | |||||||||
(In thousands) | ||||||||||
Main Office: | ||||||||||
401 Fair Meadow Drive | 1934 | Owned | Not applicable | $ | 2,479 | |||||
Webster City, Iowa | ||||||||||
Full Service Branch: | ||||||||||
305 First Street West | 2014 | Owned | Not applicable | $ | 204 | |||||
Independence, Iowa |
Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
• | Focus on building commercial and agricultural infrastructure in the organization. Adding staffing depth in the commercial lending and deposit area will be needed to accomplish this goal as well as to ensure that quality objectives are met. The ability to add the commercial and agricultural business lines will allow us to grow the bank to meet our objectives, diversify the portfolio, and add shorter term assets and loans that reprice on a shorter term horizon to the asset mix. This will allow the bank the ability to grow at a faster rate with higher earning assets that are substantially less interest rate sensitive. Strategically we are interested in growing commercial deposits because they tend to be larger accounts and less price sensitive than retail deposits. |
• | Continuing to emphasize the origination of one-to-four family residential real estate loans. We will continue to emphasize the origination of one-to-four family residential real estate loans in our market area. At December 31, 2018, $52.3 million, or 81.4% of our total loan portfolio, consisted of owner-occupied one-to-four family residential real estate loans, compared to $56.1 million, or 81.4% of our total loan portfolio, at December 31, 2017. We will continue to originate these types of loans because it is a strong recurring source of interest income. |
• | Continuing to increase the origination of consumer loans. We plan to continue to increase the origination of consumer loans, including our direct automobile loans. Our consumer loans increased $656,000 during 2018 to $6.8 million at December 31, 2018 from $6.1 million at December 31, 2017. Our consumer loans generally carry higher interest rates and shorter maturities than our one-to-four family residential real estate loans, thereby increasing our interest income and reducing our interest rate risk. In addition, we will attempt to expand our relationships with our consumer loan borrowers with the goal of increasing our interest income. |
• | Continuing to apply disciplined underwriting practices to maintain the quality of our loan portfolio. We believe that strong asset quality is a key to long-term financial success. Our goal is to maintain strong asset quality with moderate credit risk. We seek to accomplish this by applying conservative underwriting standards and by pursuing diligent monitoring and collection efforts. At December 31, 2018, our nonperforming loans (loans which are 90 or more days delinquent and loans which are less than 90 days delinquent but classified as nonaccrual) were 1.0% of our total loan portfolio. |
• | Enhancing core earnings by increasing lower-cost transaction and savings accounts. Demand, checking and money market accounts are a lower-cost source of funds than time deposits, and we have made a concerted effort to increase lower-cost transaction deposit accounts and reduce time deposits. Our ratio of core deposits (which we define as all deposit accounts except for certificate of deposit accounts) to total deposits has decreased to 51.2% at December 31, 2018 from 51.3% at December 31, 2017. We plan to continue to market our core transaction accounts (primarily checking accounts), by emphasizing our high quality service and competitive pricing of these products. Additionally, we believe our implementation of additional products and improved technological services such as remote deposit capture will increase our core deposits. |
• | Managing interest rate risk. We intend to continue to manage our interest rate risk by maintaining our strategy of selling conforming, fixed-rate, one-to-four family residential real estate loans with terms of more than 20 years and increasing our originations of shorter-term consumer loans. |
• | Growing our business by expanding our branch network. As opportunities arise and conditions permit, we will consider opportunities to expand our branch network through whole-bank or branch acquisitions, de novo branching or both. Although we do not currently have any agreements or understandings regarding specific acquisitions or de novo branching opportunities, our strategy is to grow our business within our consolidating market environment. |
For the Year Ended December 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate (1) | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest-earning assets: | ||||||||||||||||
Loans (1) | $ | 65,458 | $ | 2,936 | 4.49 | % | $ | 60,442 | $ | 2,847 | 4.71 | % | ||||
Investment securities - taxable | 34,447 | 796 | 2.31 | 31,080 | 598 | 1.92 | ||||||||||
Investment securities - non-taxable | 9,288 | 191 | 2.06 | 11,633 | 278 | 2.39 | ||||||||||
Other interest-earning assets | 5,349 | 156 | 2.92 | 9,648 | 105 | 1.09 | ||||||||||
Total interest-earning assets | 114,542 | 4,079 | 3.56 | 112,803 | 3,828 | 3.39 | ||||||||||
Noninterest-earning assets | 12,546 | 9,705 | ||||||||||||||
Total assets | $ | 127,088 | $ | 122,508 | ||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Savings accounts | 14,510 | 35 | 0.24 | 14,369 | $ | 33 | 0.23 | |||||||||
Money market accounts | 11,114 | 93 | 0.84 | 11,373 | 34 | 0.30 | ||||||||||
NOW | 13,245 | 9 | 0.07 | 13,739 | 11 | 0.08 | ||||||||||
Certificates of deposit (2) | 39,406 | 576 | 1.46 | 42,808 | 517 | 1.21 | ||||||||||
Total interest-bearing deposits | 78,275 | 713 | 0.91 | 82,289 | 595 | 0.72 | ||||||||||
Advances from FHLB of Des Moines | 14,242 | 331 | 2.32 | 4,315 | 59 | 1.37 | ||||||||||
Total interest-bearing liabilities | 92,517 | 1,044 | 1.13 | 86,604 | 654 | 0.76 | ||||||||||
Noninterest-bearing checking deposits | 4,466 | 4,611 | ||||||||||||||
Noninterest-bearing liabilities | 2,215 | 2,326 | ||||||||||||||
Total liabilities | 99,198 | 93,541 | ||||||||||||||
Equity | 27,890 | 28,967 | ||||||||||||||
Total liabilities and equity | $ | 127,088 | $ | 122,508 | ||||||||||||
Net interest income | $ | 3,035 | $ | 3,174 | ||||||||||||
Net interest rate spread (3) | 2.43 | % | 2.63 | % | ||||||||||||
Net interest-earning assets (4) | $ | 22,025 | $ | 26,199 | ||||||||||||
Net interest margin (5) | 2.65 | % | 2.81 | % | ||||||||||||
Average of interest-earning assets to interest-bearing liabilities | 123.81 | % | 130.25 | % |
(1) Amortization of fees, discounts and premiums included in interest income were $33,000 and $32,000 for the years ended December 31, 2018 and 2017, respectively. | |
(2) Amortization of premiums included in interest expense were $10,000 and $15,000 for the years ended December 31, 2018 and 2017, respectively. | |
(3) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. | |
(4) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. | |
(5) Net interest margin represents net interest income divided by total interest-earning assets. |
Years Ended December 31, | |||||||||
2018 vs. 2017 | |||||||||
Increase (Decrease) Due to | Total Increase (Decrease) | ||||||||
Volume | Rate | ||||||||
(In thousands) | |||||||||
Interest-earning assets: | |||||||||
Loans (1) | $ | 236 | $ | (147 | ) | $ | 89 | ||
Securities available-for-sale - taxable | 65 | 133 | 198 | ||||||
Securities available-for-sale - non-taxable | (56 | ) | (31 | ) | (87 | ) | |||
Other interest-earning assets | (47 | ) | 98 | 51 | |||||
Total interest-earning assets | 198 | 53 | 251 | ||||||
Interest-bearing liabilities: | |||||||||
Savings accounts | — | 2 | 2 | ||||||
Money market accounts | (1 | ) | 60 | 59 | |||||
NOW accounts | — | (2 | ) | (2 | ) | ||||
Certificates of deposit (2) | (41 | ) | 100 | 59 | |||||
Total deposits | (42 | ) | 160 | 118 | |||||
Borrowings | 7 | — | 7 | ||||||
FHLB Advances | 133 | 133 | 266 | ||||||
Total interest-bearing liabilities | 97 | 293 | 390 | ||||||
Change in net interest income | $ | 101 | $ | (240 | ) | $ | (139 | ) |
(1) Amortization of fees, discounts and premiums included in interest income were $33,000 and $32,000 for the years ended December 31, 2018 and 2017, respectively. | |
(2) Amortization of premiums included in interest expense were $10,000 and $15,000 for the years ended December 31, 2018 and 2017, respectively. |
Change in Interest Rates (basis points) (1) | Estimated EVE (2) | Estimated Increase (Decrease) in EVE | EVE as a Percentage of Fair Value of Assets (3) | ||||||||||
EVE Ratio (4) | Increase (Decrease) (basis points) | ||||||||||||
Amount | Percent | ||||||||||||
(Dollars in thousands) | |||||||||||||
300 | $ | 17,853 | $ | (8,411 | ) | (32.02 | )% | 15.51 | % | $ | (4.70 | ) | |
200 | 21,132 | (5,132 | ) | (19.54 | ) | 17.56 | (2.65 | ) | |||||
100 | 24,083 | (2,181 | ) | (8.30 | ) | 19.22 | (0.99 | ) | |||||
— | 26,264 | — | — | 20.21 | — | ||||||||
(100) | 27,043 | 779 | 2.97 | 20.24 | 0.03 |
(1) Assumes an immediate uniform change in interest rates at all maturities. | |
(2) EVE is the fair value of expected cash flows from assets, less the fair value of the expected cash flows arising from our liabilities adjusted for the value of off-balance sheet contracts. | |
(3) Fair value of assets represents then amount at which an asset could be exchanged between knowledgeable and willing parties in an arms length transaction. | |
(4) EVE Ratio represents EVE divided by the fair value of assets. |
Description | ||
Report of Independent Registered Public Accounting Firm | ||
Consolidated Balance Sheets as of December 31, 2018 and 2017 | ||
Consolidated Statements of Operations for the Years ended December 31, 2018 and 2017 | ||
Consolidated Statements of Comprehensive Income (Loss) for the Years ended December 31, 2018 and 2017 | ||
Consolidated Statements of Changes in Stockholders' Equity for the Years ended December 31, 2018 and 2017 | ||
Consolidated Statements of Cash Flows for the Years ended December 31, 2018 and 2017 | ||
Notes to Consolidated Financial Statements |
Assets | 2018 | 2017 | |||||
Cash and due from banks | $ | 3,587,631 | $ | 3,310,400 | |||
Federal funds sold | 11,175,000 | 2,672,000 | |||||
Cash and cash equivalents | 14,762,631 | 5,982,400 | |||||
Time deposits in other financial institutions | 4,540,687 | 4,545,878 | |||||
Securities available-for-sale, at fair value | 43,622,041 | 43,129,481 | |||||
Loans receivable | 64,314,968 | 68,949,715 | |||||
Allowance for loan losses | (508,920 | ) | (538,319 | ) | |||
Loans receivable, net | 63,806,048 | 68,411,396 | |||||
Federal Home Loan Bank (FHLB) stock, at cost | 1,110,000 | 703,400 | |||||
Bankers' Bank stock, at cost | 147,500 | 147,500 | |||||
Office property and equipment, net | 3,585,740 | 3,791,429 | |||||
Deferred taxes on income | 768,831 | 631,080 | |||||
Income taxes receivable | 34,739 | 40,320 | |||||
Accrued interest receivable | 424,909 | 439,855 | |||||
Goodwill | 55,148 | 55,148 | |||||
Bank-owned life insurance | 3,231,032 | 3,138,112 | |||||
Prepaid expenses and other assets | 1,275,166 | 1,205,146 | |||||
$ | 137,364,472 | $ | 132,221,145 | ||||
Liabilities and Stockholders' Equity | |||||||
Deposits | $ | 83,577,825 | $ | 87,740,194 | |||
FHLB advances | 24,000,000 | 14,000,000 | |||||
Advance payments by borrowers for taxes and insurance | 556,494 | 527,774 | |||||
Accrued interest payable | 18,221 | 13,983 | |||||
Accrued expenses and other liabilities | 1,441,057 | 1,509,680 | |||||
Total liabilities | 109,593,597 | 103,791,631 | |||||
Commitments and contingencies (Note 11) | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; issued none | — | — | |||||
Common stock, $.01 par value. Authorized 30,000,000 shares; 2,561,542 shares issued and outstanding at December 31, 2018 and December 31, 2017 | 25,615 | 25,615 | |||||
Additional paid-in capital | 14,223,738 | 14,215,017 | |||||
Retained earnings, substantially restricted | 15,565,683 | 15,758,825 | |||||
Unearned ESOP Shares | (1,204,808 | ) | (1,259,576 | ) | |||
Accumulated other comprehensive loss | (839,353 | ) | (310,367 | ) | |||
Total stockholders' equity | 27,770,875 | 28,429,514 | |||||
Total liabilities and stockholders' equity | $ | 137,364,472 | $ | 132,221,145 |
Twelve Months Ended December 31, | ||||||||
2018 | 2017 | |||||||
Interest income: | ||||||||
Loans receivable | $ | 2,935,821 | $ | 2,847,293 | ||||
Investment securities - taxable | 795,790 | 598,001 | ||||||
Investment securities - tax exempt | 190,883 | 278,312 | ||||||
Other interest earning assets | 156,417 | 104,519 | ||||||
Total interest income | 4,078,911 | 3,828,125 | ||||||
Interest expense: | ||||||||
Deposits | 712,667 | 594,757 | ||||||
FHLB advances | 324,930 | 59,168 | ||||||
Overnight borrowings | 6,560 | — | ||||||
Total interest expense | 1,044,157 | 653,925 | ||||||
Net interest income | 3,034,754 | 3,174,200 | ||||||
Provision for losses on loans | 78,000 | 76,000 | ||||||
Net interest income after provision for losses on loans | 2,956,754 | 3,098,200 | ||||||
Noninterest income: | ||||||||
Fees and service charges | 438,874 | 431,907 | ||||||
Losses on sale of securities available-for-sale, net | (14,465 | ) | — | |||||
Gain on sale of land | 435,818 | — | ||||||
Increase in cash value - bank-owned life insurance | 92,920 | 116,611 | ||||||
Other income | 38,729 | 62,908 | ||||||
Total noninterest income | 991,876 | 611,426 | ||||||
Noninterest expense: | ||||||||
Compensation, payroll taxes, and employee benefits | 1,559,324 | 1,485,549 | ||||||
Advertising | 66,721 | 91,191 | ||||||
Office property and equipment | 370,737 | 450,270 | ||||||
Federal insurance premiums | 25,024 | 33,862 | ||||||
Data processing services | 487,087 | 464,942 | ||||||
Charitable contributions | 3,846 | 5,955 | ||||||
Other real estate expenses, net | 68,871 | 20,939 | ||||||
Dues and subscriptions | 36,948 | 37,701 | ||||||
Accounting, regulatory and professional fees | 628,483 | 658,987 | ||||||
Debit card expenses | 2,623 | 6,568 | ||||||
Other expenses | 451,404 | 351,774 | ||||||
Total noninterest expense | 3,701,068 | 3,607,738 | ||||||
Earnings before taxes on income | 247,562 | 101,888 | ||||||
Tax expense (benefit) | 21,155 | 217,993 | ||||||
Net income (loss) | $ | 226,407 | $ | (116,105 | ) | |||
Basic earnings (loss) per common share | $ | 0.09 | $ | (0.05 | ) | |||
Diluted earnings (loss) per common share | $ | 0.09 | $ | (0.05 | ) |
2018 | 2017 | |||||||
Net income (loss) | $ | 226,407 | $ | (116,105 | ) | |||
Other comprehensive income (loss): | ||||||||
Net change in unrealized gain (loss) on securities | (635,783 | ) | 177,834 | |||||
Reclassification adjustment for net losses realized in net income | 14,465 | — | ||||||
Income tax benefit (expense) | 153,467 | (67,735 | ) | |||||
Other comprehensive income (loss) | (467,851 | ) | 110,099 | |||||
Comprehensive loss | $ | (241,444 | ) | $ | (6,006 | ) |
Common stock | Additional paid-in capital | Retained earnings | Unearned ESOP Shares | Accumulated other comprehensive income (loss) | Total | |||||||||||||||||||
Balance at December 31, 2016 | $ | 25,615 | $ | 14,201,795 | $ | 16,354,380 | $ | (1,314,344 | ) | $ | (420,466 | ) | $ | 28,846,980 | ||||||||||
Net loss | — | — | (116,105 | ) | — | — | (116,105 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | 110,099 | 110,099 | ||||||||||||||||||
Release of ESOP shares | — | 13,222 | — | 54,768 | — | 67,990 | ||||||||||||||||||
Dividends paid on comm stock, | ||||||||||||||||||||||||
$0.20 per common share | — | — | (479,450 | ) | — | — | (479,450 | ) | ||||||||||||||||
Balance at December 31, 2017 | 25,615 | 14,215,017 | 15,758,825 | (1,259,576 | ) | (310,367 | ) | 28,429,514 | ||||||||||||||||
Net income | — | — | 226,407 | — | — | 226,407 | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | (467,851 | ) | (467,851 | ) | ||||||||||||||||
Reclass of stranded tax effects of tax rate change | — | — | 61,135 | — | (61,135 | ) | — | |||||||||||||||||
Release of ESOP shares | — | 8,721 | — | 54,768 | — | 63,489 | ||||||||||||||||||
Dividends paid on common stock, | ||||||||||||||||||||||||
$0.20 per common share | — | — | (480,684 | ) | — | — | (480,684 | ) | ||||||||||||||||
Balance at December 31, 2018 | $ | 25,615 | $ | 14,223,738 | $ | 15,565,683 | $ | (1,204,808 | ) | $ | (839,353 | ) | $ | 27,770,875 |
Twelve Months Ended December 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 226,407 | $ | (116,105 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 706,809 | 831,958 | |||||
Provision for losses on loans | 78,000 | 76,000 | |||||
ESOP expenses | 63,489 | 67,990 | |||||
Deferred taxes on income | 15,716 | 236,134 | |||||
Gain on sales of securities | 14,465 | — | |||||
Gain on sales of one-to-four family residential loans | (4,562 | ) | (11,560 | ) | |||
Proceeds from sales of one-to-four family residential loans | 568,062 | 861,860 | |||||
Originations of one-to-four family residential loans | (563,500 | ) | (850,300 | ) | |||
(Gain) loss on sale of other real estate owned | 14,590 | (9,995 | ) | ||||
Gain on sale of land | (435,818 | ) | 0 | ||||
Write-downs of other real estate owned | 48,243 | 0 | |||||
Increase in cash value of bank-owned life insurance | (92,920 | ) | (116,611 | ) | |||
Change in: | |||||||
Accrued interest receivable | 14,946 | (16,905 | ) | ||||
Prepaid expenses and other assets | 52,399 | 137,372 | |||||
Advance payments by borrowers for taxes and insurance | 28,720 | 35,641 | |||||
Accrued interest payable | 4,238 | 10,786 | |||||
Accrued expenses and other liabilities | (68,621 | ) | (205,678 | ) | |||
Income tax receivable | 5,581 | 20,519 | |||||
Net cash provided by operating activities | 676,244 | 951,106 | |||||
Cash flows from investing activities: | |||||||
Proceeds from maturity of time deposits in other financial institutions | 3,925,191 | 6,134,190 | |||||
Purchase of time deposits in other financial institutions | (3,920,000 | ) | (5,643,000 | ) | |||
Proceeds from calls and maturities of securities available-for-sale | 6,158,406 | 7,608,178 | |||||
Proceeds from sale of securities available-for-sale | 2,121,241 | — | |||||
Purchase of securities available-for-sale | (9,853,924 | ) | (6,444,141 | ) | |||
Purchase of loans | — | (9,789,292 | ) | ||||
Net change in loans receivable | 3,963,974 | 1,865,025 | |||||
Net change in FHLB stock | (406,600 | ) | (348,600 | ) | |||
Proceeds from sale of office property and equipment | 685,818 | — | |||||
Purchase of office property and equipment | (55,186 | ) | (44,708 | ) | |||
Net cash provided by (used in) investing activities | 2,747,040 | (6,662,348 | ) | ||||
Cash flows from financing activities: | |||||||
Net change in deposits | (4,162,369 | ) | 650,514 | ||||
Net change in FHLB advances | 10,000,000 | 8,500,000 | |||||
Dividends paid | (480,684 | ) | (479,450 | ) | |||
Net cash provided by financing activities | 5,356,947 | 8,671,064 | |||||
Net increase in cash and cash equivalents | 8,780,231 | 2,959,822 | |||||
Cash and cash equivalents at beginning of year | 5,982,400 | 3,022,578 | |||||
Cash and cash equivalents at end of year | $ | 14,762,631 | $ | 5,982,400 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid (received) during the year for: | |||||||
Interest | $ | 1,039,919 | $ | 643,138 | |||
Taxes on income | — | (38,660 | ) | ||||
Noncash investing activities: | |||||||
Transfers to other real estate owned from loans | 588,367 | 86,353 | |||||
Transfer to finance the sale of other real estate owned | 24,993 | 73,095 |
(1) | Basis of Presentation |
2018 | 2017 | ||||||
Land | $ | 804,000 | $ | 804,000 | |||
Office building and improvements | 3,657,779 | 3,657,779 | |||||
Furniture, fixtures, and equipment | 513,347 | 531,727 | |||||
4,975,126 | 4,993,506 | ||||||
Less accumulated deprecation | 1,389,386 | 1,202,077 | |||||
$ | 3,585,740 | $ | 3,791,429 |
As of and for the period ending | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Current assets | $ | 153,125 | $ | 136,150 | |||
Long-term assets | 1,631,944 | 1,669,687 | |||||
Current liabilities | 184,389 | 86,294 | |||||
Total equity | 1,600,680 | 1,719,544 | |||||
Total revenue | 996,735 | 924,323 | |||||
Net income | 159,957 | 140,603 |
December 31, | ||||||||
2018 | 2017 | |||||||
Net income | $ | 226,407 | $ | (116,105 | ) | |||
Weighted average common shares outstanding and diluted common shares outstanding | 2,410,295 | 2,404,096 | ||||||
Basic earnings (loss) per common share | $ | 0.09 | $ | (0.05 | ) | |||
Diluted earnings (loss) per common share | $ | 0.09 | $ | (0.05 | ) |
(2) | Securities Available-for-Sale |
Description | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
December 31, 2018: | ||||||||||||||||
U.S. agency securities | $ | 3,740,431 | $ | 8,531 | $ | 34,913 | $ | 3,714,049 | ||||||||
Mortgage-backed securities* | 26,511,033 | 3,911 | 866,060 | 25,648,884 | ||||||||||||
Municipal bonds | 14,484,479 | 29,095 | 254,466 | 14,259,108 | ||||||||||||
$ | 44,735,943 | $ | 41,537 | $ | 1,155,439 | $ | 43,622,041 | |||||||||
December 31, 2017: | ||||||||||||||||
U.S. agency securities | $ | 1,239,357 | $ | — | $ | 5,562 | $ | 1,233,795 | ||||||||
Mortgage-backed securities* | 27,331,766 | — | 547,177 | 26,784,589 | ||||||||||||
Municipal bonds | 15,050,942 | 107,569 | 47,414 | 15,111,097 | ||||||||||||
$ | 43,622,065 | $ | 107,569 | $ | 600,153 | $ | 43,129,481 |
* All mortgage-backed securities are issued by Fannie Mae, Freddie Mac or Ginnie Mae and are backed by residential mortgage loans. |
December 31, 2018 | |||||||
Amortized cost | Fair value | ||||||
Due in one year or less | $ | 2,929,391 | $ | 2,936,751 | |||
Due after one year through five years | 2,243,676 | 2,480,422 | |||||
Due after five years, but less than ten years | 7,706,615 | 7,356,480 | |||||
Due after ten years | 5,345,228 | 5,199,504 | |||||
18,224,910 | 17,973,157 | ||||||
Mortgage-backed securities | 26,511,033 | 25,648,884 | |||||
$ | 44,735,943 | $ | 43,622,041 |
2018 | 2017 | |||||||
Proceeds from sales | $ | 2,121,241 | $ | — | ||||
Gross gains on sales | 7,280 | — | ||||||
Gross losses on sales | 21,745 | — |
December 31, 2018 | |||||||||||||||||||||||
Up to 12 months | Greater than 12 months | Total | |||||||||||||||||||||
Fair value | Gross unrealized loss | Fair value | Gross unrealized loss | Fair value | Gross unrealized loss | ||||||||||||||||||
U.S. agency securities | $ | — | $ | — | $ | 1,205,518 | $ | 34,913 | $ | 1,205,518 | $ | 34,913 | |||||||||||
Mortgage-backed securities | 3,393,192 | 36,192 | 20,903,713 | 829,868 | 24,296,905 | 866,060 | |||||||||||||||||
Municipal bonds | 4,400,121 | 102,524 | 6,694,327 | 151,942 | 11,094,448 | 254,466 | |||||||||||||||||
Total | $ | 7,793,313 | $ | 138,716 | $ | 28,803,558 | $ | 1,016,723 | $ | 36,596,871 | $ | 1,155,439 | |||||||||||
December 31, 2017 | |||||||||||||||||||||||
Up to 12 months | Greater than 12 months | Total | |||||||||||||||||||||
Fair value | Gross unrealized loss | Fair value | Gross unrealized loss | Fair value | Gross unrealized loss | ||||||||||||||||||
U.S. agency securities | $ | 989,537 | $ | 29 | $ | 244,248 | $ | 5,533 | $ | 1,233,785 | $ | 5,562 | |||||||||||
Mortgage-backed securities | 5,944,732 | 80,034 | 20,843,664 | 467,143 | 26,788,396 | 547,177 | |||||||||||||||||
Municipal bonds | 4,913,243 | 18,791 | 2,224,660 | 28,623 | 7,137,903 | 47,414 | |||||||||||||||||
Total | $ | 11,847,512 | $ | 98,854 | $ | 23,312,572 | $ | 501,299 | $ | 35,160,084 | $ | 600,153 |
(3) | Loans Receivable |
2018 | 2017 | ||||||
Loans: | |||||||
One-to-four family residential | $ | 52,335,005 | $ | 56,091,358 | |||
Non-owner occupied one-to-four family residential | 3,013,417 | 3,116,832 | |||||
Commercial real estate | 2,162,851 | 3,615,351 | |||||
Consumer | 6,801,419 | 6,145,488 | |||||
Total loans receivable | 64,312,692 | 68,969,029 | |||||
Premiums/Discounts on loans purchased | 30,318 | 10,650 | |||||
Deferred loan fees | (28,042 | ) | (29,964 | ) | |||
Allowance for loan losses | (508,920 | ) | (538,319 | ) | |||
$ | 63,806,048 | $ | 68,411,396 |
2018 | 2017 | ||||||
Balance at beginning of year | $ | 173,362 | $ | 772,472 | |||
Change in classification | — | (280,413 | ) | ||||
Additions | 11,060 | — | |||||
Repayments/refinances | (8,114 | ) | (318,697 | ) | |||
Ending balance | $ | 176,308 | $ | 173,362 |
(4) | Allowance for Loan Losses |
December 31, 2018 | |||||||||||||||||||
One-to-four family residential | Non-owner occupied on-to-four family residential | Commercial real estate | Consumer | Total | |||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Collectively evaluated for impairment | 407,086 | 13,252 | 19,110 | 69,472 | 508,920 | ||||||||||||||
Total | $ | 407,086 | $ | 13,252 | $ | 19,110 | $ | 69,472 | $ | 508,920 | |||||||||
Loans receivable: | |||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Collectively evaluated for impairment | 52,335,005 | 3,013,417 | 2,162,851 | 6,801,419 | 64,312,692 | ||||||||||||||
Total | $ | 52,335,005 | $ | 3,013,417 | $ | 2,162,851 | $ | 6,801,419 | $ | 64,312,692 | |||||||||
December 31, 2017 | |||||||||||||||||||
One-to-four family residential | Non-owner occupied on-to-four family residential | Commercial real estate | Consumer | Total | |||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Collectively evaluated for impairment | 393,341 | 25,893 | 33,204 | 85,881 | 538,319 | ||||||||||||||
Total | $ | 393,341 | $ | 25,893 | $ | 33,204 | $ | 85,881 | $ | 538,319 | |||||||||
Loans receivable: | |||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 274,804 | $ | — | $ | 274,804 | |||||||||
Collectively evaluated for impairment | 56,091,358 | 3,116,832 | 3,340,547 | 6,145,488 | 68,694,225 | ||||||||||||||
Total | $ | 56,091,358 | $ | 3,116,832 | $ | 3,615,351 | $ | 6,145,488 | $ | 68,969,029 |
December 31, 2018 | |||||||||||||||||||
Beginning Balance | Charge-offs | Recoveries | Provisions | Ending Balance | |||||||||||||||
Loans receivable: | |||||||||||||||||||
One-to-four family residential | $ | 393,341 | $ | 67,870 | $ | — | $ | 81,615 | $ | 407,086 | |||||||||
Non-owner occupied one-to-four family residential | 25,893 | — | — | (12,641 | ) | * | 13,252 | ||||||||||||
Commercial real estate | 33,204 | — | — | (14,094 | ) | * | 19,110 | ||||||||||||
Consumer | 85,881 | 60,845 | 21,316 | 23,120 | 69,472 | ||||||||||||||
Total | $ | 538,319 | $ | 128,715 | $ | 21,316 | $ | 78,000 | $ | 508,920 | |||||||||
December 31, 2017 | |||||||||||||||||||
Beginning Balance | Charge-offs | Recoveries | Provisions | Ending Balance | |||||||||||||||
Loans receivable: | |||||||||||||||||||
One-to-four family residential | $ | 319,849 | $ | 10,944 | $ | 133 | $ | 84,303 | $ | 393,341 | |||||||||
Non-owner occupied one-to-four family residential | 28,231 | — | — | (2,338 | ) | * | 25,893 | ||||||||||||
Commercial real estate | 37,135 | — | — | (3,931 | ) | * | 33,204 | ||||||||||||
Consumer | 101,899 | 14,055 | 71 | (2,034 | ) | * | 85,881 | ||||||||||||
Total | $ | 487,114 | $ | 24,999 | $ | 204 | $ | 76,000 | $ | 538,319 |
* The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. |
(a) | Loan Portfolio Segment Risk Characteristics |
(b) | Charge‑off Policy |
(c) | Troubled Debt Restructurings (TDR) |
(d) | Loans Measured Individually for Impairment |
(e) | Loans Measured Collectively for Impairment |
Pass | Special mention/watch | Substandard | Doubtful | Total | |||||||||||||||
December 31, 2018: | |||||||||||||||||||
Loans receivable | |||||||||||||||||||
One-to-four family residential | $ | 50,712,926 | $ | 1,041,019 | $ | 581,060 | $ | — | $ | 52,335,005 | |||||||||
Non-owner occupied one-to-four family residential | 2,876,981 | 136,436 | — | — | 3,013,417 | ||||||||||||||
Commercial real estate | 2,162,851 | — | — | — | 2,162,851 | ||||||||||||||
Consumer | 6,301,242 | 436,522 | 63,655 | — | 6,801,419 | ||||||||||||||
Total | $ | 62,054,000 | $ | 1,613,977 | $ | 644,715 | $ | — | $ | 64,312,692 | |||||||||
Pass | Special mention/watch | Substandard | Doubtful | Total | |||||||||||||||
December 31, 2017: | |||||||||||||||||||
Loans receivable | |||||||||||||||||||
One-to-four family residential | $ | 54,042,992 | $ | 1,412,334 | $ | 636,032 | $ | — | $ | 56,091,358 | |||||||||
Non-owner occupied one-to-four family residential | 2,782,817 | 17,861 | 316,154 | — | 3,116,832 | ||||||||||||||
Commercial real estate | 3,304,369 | 36,178 | 274,804 | — | 3,615,351 | ||||||||||||||
Consumer | 5,830,415 | 252,722 | 62,351 | — | 6,145,488 | ||||||||||||||
Total | $ | 65,960,593 | $ | 1,719,095 | $ | 1,289,341 | $ | — | $ | 68,969,029 |
(f) | Nonaccrual and Delinquent Loans |
30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans receivable | Recorded investment > 90 days and accruing | |||||||||||||||||||||
December 31, 2018: | |||||||||||||||||||||||||||
Loans receivable | |||||||||||||||||||||||||||
One-to-four family residential | $ | 706,658 | $ | 283,116 | $ | 369,058 | $ | 1,358,832 | $ | 50,976,173 | $ | 52,335,005 | $ | — | |||||||||||||
Non-owner occupied one-to-four family residential | — | — | — | — | 3,013,417 | 3,013,417 | — | ||||||||||||||||||||
Commercial real estate | — | — | — | — | 2,162,851 | 2,162,851 | — | ||||||||||||||||||||
Consumer | 229,899 | 23,400 | 63,655 | 316,954 | 6,484,465 | 6,801,419 | — | ||||||||||||||||||||
Total | $ | 936,557 | $ | 306,516 | $ | 432,713 | $ | 1,675,786 | $ | 62,636,906 | $ | 64,312,692 | $ | — | |||||||||||||
30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans receivable | Recorded investment > 90 days and accruing | |||||||||||||||||||||
December 31, 2017: | |||||||||||||||||||||||||||
Loans receivable | |||||||||||||||||||||||||||
One-to-four family residential | $ | 566,234 | $ | 542,356 | $ | 491,792 | $ | 1,600,382 | $ | 54,490,976 | $ | 56,091,358 | $ | 341,167 | |||||||||||||
Non-owner occupied one-to-four family residential | 17,861 | 177,037 | — | 194,898 | 2,921,934 | 3,116,832 | — | ||||||||||||||||||||
Commercial real estate | 36,178 | — | 274,804 | 310,982 | 3,304,369 | 3,615,351 | — | ||||||||||||||||||||
Consumer | 171,789 | 76,558 | 54,568 | 302,915 | 5,842,573 | 6,145,488 | 57,267 | ||||||||||||||||||||
Total | $ | 792,062 | $ | 795,951 | $ | 821,164 | $ | 2,409,177 | $ | 66,559,852 | $ | 68,969,029 | $ | 398,434 |
December 31, | |||||||
2018 | 2017 | ||||||
Loans receivable | |||||||
One-to-four family residential | $ | 581,060 | $ | 150,625 | |||
Non-owner occupied one-to-four family residential | — | — | |||||
Commercial real estate | — | 274,804 | |||||
Consumer | 63,655 | — | |||||
Total | $ | 644,715 | $ | 425,429 |
(5) | Deposits |
2018 | 2017 | ||||||
Statement savings | $ | 13,461,826 | $ | 14,536,815 | |||
Money market plus | 11,153,339 | 11,749,674 | |||||
NOW | 18,214,876 | 18,749,026 | |||||
Certificates of deposit | 40,747,784 | 42,704,679 | |||||
$ | 83,577,825 | $ | 87,740,194 |
2018 | |||
2019 | $ | 23,558,991 | |
2020 | 6,715,085 | ||
2021 | 4,715,960 | ||
2022 | 3,670,299 | ||
2023 | 2,087,449 | ||
$ | 40,747,784 |
2018 | 2017 | ||||||
Statement savings | $ | 34,642 | $ | 32,743 | |||
Money market plus and NOW | 102,424 | 44,410 | |||||
Certificates of deposit | 575,601 | 517,604 | |||||
$ | 712,667 | $ | 594,757 |
(6) | Advances from Federal Home Loan Bank |
FHLB of Des Moines maturity in fiscal year ending December 31 | Weighted average fixed interest rate | 2018 | 2017 | |||||||
2018 | 2.03% | $ | — | $ | 6,000,000 | |||||
2019 | 2.56% | 19,000,000 | 3,000,000 | |||||||
2020 | 2.36% | 3,000,000 | 3,000,000 | |||||||
2021 | 2.52% | 2,000,000 | 2,000,000 | |||||||
$ | 24,000,000 | $ | 14,000,000 |
(7) | Taxes on Income |
2018 | |||||||||||
Federal | State | Total | |||||||||
Current | $ | 1,744 | $ | 3,695 | $ | 5,439 | |||||
Deferred | 11,731 | 3,985 | 15,716 | ||||||||
$ | 13,475 | $ | 7,680 | $ | 21,155 | ||||||
2017 | |||||||||||
Federal | State | Total | |||||||||
Current | $ | (24,341 | ) | $ | 6,200 | $ | (18,141 | ) | |||
Deferred | 230,134 | 6,000 | 236,134 | ||||||||
$ | 205,793 | $ | 12,200 | $ | 217,993 |
2018 | 2017 | ||||||
Federal tax at statutory rate | $ | 51,988 | $ | 34,642 | |||
Items affecting federal income tax rate: | |||||||
State taxes on income, net of federal benefit | 6,067 | 8,052 | |||||
Tax-exempt income | (55,304 | ) | (84,963 | ) | |||
Valuation allowance | (8,000 | ) | (10,000 | ) | |||
Effect of change in federal tax rate (1) | — | 302,000 | |||||
Other | 26,404 | (31,738 | ) | ||||
$ | 21,155 | $ | 217,993 |
(1) Represents the adjustment from the Tax Cut and Jobs Act adopted December 22, 2017 |
2018 | 2017 | ||||||
Deferred tax assets: | |||||||
Deferred directors’ fees | $ | 185,000 | $ | 195,000 | |||
Allowance for loan losses | 127,000 | 134,000 | |||||
Net operating loss carryforward | 191,000 | 165,000 | |||||
AMT credit carryforward | 17,360 | 34,720 | |||||
Charitable contribution carryforward | 59,000 | 59,000 | |||||
Professional fees | 44,000 | 49,000 | |||||
Securities available for sale | 274,549 | 121,082 | |||||
Other | 19,922 | 23,278 | |||||
Gross deferred tax assets | 917,831 | 781,080 | |||||
Valuation allowance | (88,000 | ) | (96,000 | ) | |||
Net deferred tax assets | 829,831 | 685,080 | |||||
Deferred tax liabilities: | |||||||
Prepaid expenses | (14,000 | ) | (14,000 | ) | |||
FHLB stock dividends | (25,000 | ) | (25,000 | ) | |||
Fixed assets | (8,000 | ) | — | ||||
Intangible assets | (14,000 | ) | (15,000 | ) | |||
Gross deferred tax liabilities | (61,000 | ) | (54,000 | ) | |||
Net deferred tax assets | $ | 768,831 | $ | 631,080 |
(8) | Benefit Plans |
(a) | Retirement Plans |
Plan Name | Pentegra Defined Benefit Plan for Financial Institutions | |
Plan numbers | 13-5645888 #333 | |
Funded status: | ||
Plan year ending 6/30/18 | At least 80% funded | |
Plan year ending 6/30/17 | At least 80% funded | |
Employer contributions: | ||
Plan year ending 6/30/18 | $90,154 | |
Plan year ending 6/30/17 | $62,434 | |
Surcharge imposed | No | |
Rehabilitation plan in place | No | |
Minimum contribution required | Yes |
(b) | Deferred Compensation |
(c) | Employee Stock Ownership Plan |
(9) | Stockholders’ Equity |
(a) | Regulatory Capital Requirements |
December 31, 2018 | |||||||||||||||||||
For capital adequacy | To be well-capitalized under | ||||||||||||||||||
with capital conservation | prompt corrective action | ||||||||||||||||||
Actual | buffer purposes | provisions | |||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Tangible capital: | |||||||||||||||||||
Consolidated | $ | 28,534 | 22.50 | % | $ | 5,081 | 4.00 | % | n/a | n/a | |||||||||
WCF Financial Bank | 19,567 | 16.30 | 4,792 | 4.00 | 5,990 | 5.00 | % | ||||||||||||
Common equity tier 1: | |||||||||||||||||||
Consolidated | 28,534 | 49.00 | 3,712 | 6.375 | 3,785 | 6.50 | |||||||||||||
WCF Financial Bank | 19,567 | 34.40 | 3,631 | 6.375 | 3,702 | 6.50 | |||||||||||||
Risk-based capital: | |||||||||||||||||||
Consolidated | 29,043 | 49.90 | 5,750 | 9.875 | 5,823 | 10.00 | |||||||||||||
WCF Financial Bank | 20,076 | 35.20 | 5,625 | 9.875 | 5,696 | 10.00 | |||||||||||||
Tier 1 risk-based capital: | |||||||||||||||||||
Consolidated | 28,534 | 49.00 | 4,585 | 7.875 | 4,658 | 8.00 | |||||||||||||
WCF Financial Bank | 19,567 | 34.40 | 4,486 | 7.875 | 4,557 | 8.00 |
December 31, 2017 | |||||||||||||||||||
To be well-capitalized under | |||||||||||||||||||
For capital adequacy | prompt corrective action | ||||||||||||||||||
Actual | purposes | provisions | |||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Tangible capital: | |||||||||||||||||||
Consolidated | $ | 28,657 | 23.40 | % | $ | 4,897 | 4.00 | % | N/A | N/A | |||||||||
WCF Financial Bank | 19,117 | 16.50 | 4,637 | 4.00 | 5,796 | 5.00 | % | ||||||||||||
Common equity tier 1: | |||||||||||||||||||
Consolidated | 28,657 | 50.20 | 3,283 | 5.75 | 3,712 | 6.50 | |||||||||||||
WCF Financial Bank | 19,117 | 34.50 | 3,191 | 5.75 | 3,607 | 6.50 | |||||||||||||
Risk-based capital: | |||||||||||||||||||
Consolidated | 29,195 | 51.10 | 5,282 | 9.25 | 5,710 | 10.00 | |||||||||||||
WCF Financial Bank | 19,655 | 35.40 | 5,133 | 9.25 | 5,549 | 10.00 | |||||||||||||
Tier 1 risk-based capital: | |||||||||||||||||||
Consolidated | 28,657 | 50.20 | 4,140 | 7.25 | 4,568 | 8.00 | |||||||||||||
WCF Financial Bank | 19,117 | 34.50 | 4,023 | 7.25 | 4,439 | 8.00 |
(b) | Dividends and Restrictions Thereon |
(10) | Fair Value |
• | Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
• | Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. |
• | Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. |
• | Cash and due from banks, federal funds sold, and time deposits in other financial institutions. The carrying amount is a reasonable estimate of fair value. |
• | Securities available-for-sale. Investment securities classified as available‑for‑sale are reported at fair value on a recurring basis. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. |
• | Loans receivable. The Company does not record loans at fair value on a recurring basis. For variable‑rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are determined using estimated future cash flows, discounted at the interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. The Company does record nonrecurring fair value adjustments to loans to reflect (1) partial write‑downs to collateral value or (2) the establishment of specific loan reserves that are based on the observable market price of the loan or the appraised of the collateral. These loans are classified as Level 3. |
• | Bankers’ Bank and Federal Home Loan Bank (FHLB) stock. The value of Bankers’ Bank and FHLB stock is equivalent to its carrying value because the stock is redeemable at par value. |
• | Accrued interest receivable and accrued interest payable. The recorded amount of accrued interest receivable and accrued interest payable approximates fair value as a result of the short‑term nature of the instruments. |
• | Deposits. The fair value of deposits with no stated maturity, such as passbook, money market, noninterest‑bearing checking, and NOW accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low‑cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. |
• | FHLB advances. The fair value of the FHLB advances is based on the discounted value of the cash flows. The discount rate is estimated using the rates currently offered for fixed‑rate advances of similar remaining maturities. |
December 31, 2018 | |||||||||||||||
Level 1 inputs | Level 2 inputs | Level 3 inputs | Total fair value | ||||||||||||
U.S. agency securities | $ | — | $ | 3,714,049 | $ | — | $ | 3,714,049 | |||||||
Mortgage-backed securities | — | 25,648,884 | — | 25,648,884 | |||||||||||
Municipal bonds | — | 14,259,108 | — | 14,259,108 | |||||||||||
Total | $ | — | $ | 43,622,041 | $ | — | $ | 43,622,041 |
December 31, 2017 | |||||||||||||||
Level 1 inputs | Level 2 inputs | Level 3 inputs | Total fair value | ||||||||||||
U.S. agency securities | $ | — | $ | 1,233,795 | $ | — | $ | 1,233,795 | |||||||
Mortgage-backed securities | — | 26,784,589 | — | 26,784,589 | |||||||||||
Municipal bonds | — | 15,111,097 | — | 15,111,097 | |||||||||||
Total | $ | — | $ | 43,129,481 | $ | — | $ | 43,129,481 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||
Fair value | Carrying | Approximate | Carrying | Approximate | |||||||||||||
hierarchy | amount | fair value | amount | fair value | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | Level 1 | $ | 3,587,631 | $ | 3,587,631 | $ | 3,310,400 | $ | 3,310,400 | ||||||||
Federal funds sold | Level 1 | 11,175,000 | 11,175,000 | 2,672,000 | 2,672,000 | ||||||||||||
Time deposits in other financial institutions | Level 1 | 4,540,687 | 4,540,687 | 4,545,878 | 4,545,878 | ||||||||||||
Securities available for sale | See previous table | 43,622,041 | 43,622,041 | 43,129,481 | 43,129,481 | ||||||||||||
Loans receivable, net | Level 2(1) | 63,806,048 | 63,467,000 | 68,411,395 | 69,008,986 | ||||||||||||
FHLB stock | Level 1 | 1,110,000 | 1,110,000 | 703,400 | 703,400 | ||||||||||||
Bankers’ Bank stock | Level 1 | 147,500 | 147,500 | 147,500 | 147,500 | ||||||||||||
Accrued interest receivable | Level 1 | 424,909 | 424,909 | 439,855 | 439,855 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | Level 2 | 83,577,825 | 84,311,000 | 87,741,341 | 87,828,194 | ||||||||||||
FHLB advances | Level 2 | 24,000,000 | 23,897,000 | 14,000,000 | 14,052,000 | ||||||||||||
Accrued interest payable | Level 1 | 18,221 | 18,221 | 13,983 | 13,983 |
(1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures. |
(12) | Parent Company Only Financial Statements |
Balance Sheets | December 31, | ||||||
2018 | 2017 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 3,012,058 | $ | 2,218,386 | |||
Time deposits in other financial institutions | 739,000 | 1,233,000 | |||||
Securities available-for-sale | 3,304,504 | 4,118,128 | |||||
Loans receivable, net | — | 57,986 | |||||
Investment in WCF Financial Bank | 18,875,109 | 18,910,498 | |||||
Deferred taxes on income | 144,660 | 117,664 | |||||
Income tax receivable | — | 10,260 | |||||
Accrued interest receivable | 10,518 | 12,700 | |||||
Prepaid expenses and other assets | 1,711,629 | 1,767,443 | |||||
Total assets | $ | 27,797,478 | $ | 28,446,065 | |||
Liabilities and Stockholders' Equity | |||||||
Other liabilities | $ | 26,603 | $ | 16,551 | |||
Common stock | 25,615 | 25,615 | |||||
Additional paid-in capital | 14,223,738 | 14,215,017 | |||||
Retained earnings | 15,565,683 | 15,758,826 | |||||
Accumulated other comprehensive income | (839,353 | ) | (310,368 | ) | |||
Unearned ESOP shares | (1,204,808 | ) | (1,259,576 | ) | |||
Total stockholders' equity | 27,770,875 | 28,429,514 | |||||
Total liabilities and stockholders' equity | $ | 27,797,478 | $ | 28,446,065 |
Statements of Operations | Years Ended December 31, | ||||||
2018 | 2017 | ||||||
Interest income: | |||||||
Loans receivable | $ | 14 | $ | 3,330 | |||
Investment securities | 75,785 | 84,213 | |||||
Other interest earning asset | 102,732 | 66,697 | |||||
Total interest income | 178,531 | 154,240 | |||||
Noninterest income | 47,367 | 41,693 | |||||
Noninterest expense | 309,599 | 313,558 | |||||
Loss before income taxes and equity in undistributed earnings of Bank | (83,701 | ) | (117,625 | ) | |||
Tax expense (benefit) | (7,423 | ) | 20,992 | ||||
Loss before equity in undistributed earnings of Bank | (76,278 | ) | (138,617 | ) | |||
Equity in undistributed earnings (loss) of Bank | 302,685 | 22,512 | |||||
Net (loss) income | $ | 226,407 | $ | (116,105 | ) |
Statements of Cash Flows | Years Ended December 31, | ||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | 226,407 | $ | (116,105 | ) | ||
Adjustments to reconcile net (loss) to net cash used for operating activities: | |||||||
Equity in net income (loss) of Bank | (302,685 | ) | (22,512 | ) | |||
Amortization of premiums and discounts | 43,339 | 47,169 | |||||
ESOP Expenses | 63,489 | 67,990 | |||||
Net change in accrued interest receivable | 2,182 | (4,608 | ) | ||||
Deferred taxes | (17,577 | ) | (67,865 | ) | |||
Net change in other assets | (39,505 | ) | 50,502 | ||||
Tax receivable | 10,260 | — | |||||
Net change in other liabilities | 10,054 | (34,459 | ) | ||||
Net cash used in operating activities | (4,036 | ) | (79,888 | ) | |||
Cash flow from investing activities: | |||||||
Proceeds from maturity of time deposits in other institutions | 494,000 | 1,233,000 | |||||
Purchase of time deposits in other financial institutions | — | (1,723,000 | ) | ||||
Proceeds from maturities and calls of securities available-for-sale | 726,406 | 729,086 | |||||
Purchase of investment securities available for sale | — | (2,127,347 | ) | ||||
Net change in loans receivable | 57,986 | 2,197 | |||||
Net change provided by (used in) investing activities | 1,278,392 | (1,886,064 | ) | ||||
Cash flow from financing activities: | |||||||
Cash dividends paid | (480,684 | ) | (479,450 | ) | |||
Net cash used in financing activities | (480,684 | ) | (479,450 | ) | |||
Net increase (decrease) in cash and cash equivalents | 793,672 | (2,445,402 | ) | ||||
Cash and cash equivalents at beginning of year | 2,218,386 | 4,663,788 | |||||
Cash and cash equivalents at end of the year | $ | 3,012,058 | $ | 2,218,386 | |||
(13) | Accumulated Other Comprehensive Income (Loss) |
2018 | 2017 | |||||||
Unrealized holding losses on securities available-for-sale | $ | (1,113,902 | ) | $ | (488,791 | ) | ||
Tax impact | 274,549 | 178,424 | ||||||
$ | (839,353 | ) | $ | (310,367 | ) |
Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters |
Reports of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets as of December 31, 2018 and 2017 | |
Consolidated Statements of Operations for the Years ended December 31, 2018 and 2017 | |
Consolidated Statements of Comprehensive Income for the Years ended December 31, 2018 and 2017 | |
Consolidated Statements of Changes in Stockholders' Equity for the Years ended December 31, 2018 and 2017 | |
Consolidated Statements of Cash Flows for the Years ended December 31, 2018 and 2017 | |
Notes to Consolidated Financial Statements |
3.1 | ||
3.2 | ||
4 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
21 | ||
23 | ||
31.1 | ||
31.2 | ||
32 | ||
101 | The following materials from the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements. |
(1) Incorporated by reference to Exhibit 3.1 to the Company's Form S-1 Registration Statement filed on March 10, 2016 | |
(2) Incorporated by reference to the Form 8-K filed on August 28, 2018 | |
(3) Incorporated by reference to the Form 8-K filed on December 21, 2018 | |
(4) Incorporated by reference to the Proxy Statement filed on August 14, 2017 |
WCF BANCORP, INC. | |||
Date: March 29, 2019 | /s/ Michael R. Segner | ||
Michael R. Segner | |||
President and Chief Executive Officer (Principal Executive Officer) |
Signatures | Title | Date | ||
/s/ Michael R. Segner | President/Chief Executive Officer (Principal Executive Officer) | March 29, 2019 | ||
/s/ Paul L. Moen | Chief Financial Officer (Principal Financial Officer) | March 29, 2019 | ||
/s/ C. Thomas Chalstrom | Director | March 29, 2019 | ||
/s/ Thomas J. Hromatka | Director | March 29, 2019 | ||
/s/ Heidi Tesdahl | Director | March 29, 2019 | ||
/s/ Kasie L. Doering | Director | March 29, 2019 | ||
/s/ Stephen L. Mourlam | Director | March 29, 2019 | ||
/s/ Bradley Mickelson | Director | March 29, 2019 |
1. | I have reviewed this Annual Report on Form 10-K of WCF Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the consolidated 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 registrant as of, and for, the periods presented in this report; |
4. | The registrant’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)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 29, 2019 | /s/ Michael R. Segner | ||
Michael R. Segner | |||
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of WCF Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the consolidated 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 registrant as of, and for, the periods presented in this report; |
4. | The registrant’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)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 29, 2019 | /s/ Paul L. Moen | ||
Paul L. Moen | |||
Chief Financial Officer |
1. | the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: March 29, 2019 | /s/ Michael R. Segner | ||
Michael R. Segner | |||
President and Chief Executive Officer | |||
Date: March 29, 2019 | /s/ Paul L. Moen | ||
Paul L. Moen | |||
Chief Financial Officer |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 29, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WCF Bancorp, Inc. | ||
Entity Central Index Key | 0001667944 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 2,561,542 | ||
Entity Public Float | $ 23.1 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 2,561,542 | 2,561,542 |
Common stock, shares outstanding (in shares) | 2,561,542 | 2,561,542 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 226,407 | $ (116,105) |
Other comprehensive income (loss): | ||
Net change in unrealized gain (loss) on securities | (635,783) | 177,834 |
Reclassification adjustment for net losses realized in net income | 14,465 | 0 |
Income tax benefit (expense) | 153,467 | (67,735) |
Other comprehensive income (loss) | (467,851) | 110,099 |
Comprehensive loss | $ (241,444) | $ (6,006) |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) |
Total |
Common stock |
Additional paid-in capital |
Retained earnings |
Unearned ESOP Shares |
Accumulated other comprehensive income (loss) |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2016 | $ 28,846,980 | $ 25,615 | $ 14,201,795 | $ 16,354,380 | $ (1,314,344) | $ (420,466) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (116,105) | (116,105) | ||||
Other comprehensive income (loss) | 110,099 | 110,099 | ||||
Release of ESOP shares | 67,990 | 13,222 | 54,768 | |||
Dividends paid on common stock ($0.20 per common stock) | (479,450) | (479,450) | ||||
Balance at Dec. 31, 2017 | 28,429,514 | 25,615 | 14,215,017 | 15,758,825 | (1,259,576) | (310,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 226,407 | 226,407 | ||||
Other comprehensive income (loss) | (467,851) | (467,851) | ||||
Reclass of stranded tax effects of tax rate change | 61,135 | (61,135) | ||||
Release of ESOP shares | 63,489 | 8,721 | 54,768 | |||
Dividends paid on common stock ($0.20 per common stock) | (480,684) | (480,684) | ||||
Balance at Dec. 31, 2018 | $ 27,770,875 | $ 25,615 | $ 14,223,738 | $ 15,565,683 | $ (1,204,808) | $ (839,353) |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.20 | $ 0.20 |
Basis of Presentation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation Description of Business WCF Bancorp, Inc. (the Company) is an Iowa-chartered corporation organized in 2016 to be the successor to Webster City Federal Bancorp (the Old Bancorp), a federal corporation, upon completion of the second-step conversion of WCF Financial, M.H.C. (the MHC) from a mutual holding company to a stock holding company form of organization. The MHC was the former mutual holding company for the Old Bancorp prior to the completion of the second-step conversion. Upon consummation of the second-step conversion, the MHC and the Old Bancorp ceased to exist. The second-step conversion was completed on July 13, 2016. The Company's principal business is the ownership and operation of the Bank. The Bank is a community bank and its deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The primary business of the Bank is accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in real estate loans secured by one-to-four family residences. To a lesser extent, the Company also originates consumer loans and non-owner occupied one-to-four family residential real estate loans. On a limited basis the Company has also originated commercial real estate loans. The Company also invests in securities. The Company's primary lending area is broader than our primary deposit market area and includes north central and northeastern Iowa. The Company's revenues are derived principally from interest on loans and securities, and from loan origination and servicing fees. The Company's primary sources of funds are deposits, principal and interest payments on loans and securities and advances from the Federal Home Loan Bank of Des Moines (the FHLB). As a state chartered financial institution, the Bank is subject to comprehensive regulation and examination by the Office of the Iowa Division of Banking and the Federal Deposit Insurance Corporation (the FDIC). As a bank holding company, the Company is subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System (the Federal Reserve Board). Prior to July 1, 2018, the Bank was a federally chartered savings association regulated by the Office of the Comptroller of Currency. The Bank converted its charter and is now an Iowa-chartered commercial bank and a member of the Federal Home Loan Bank (FHLB) system. The Bank maintains insurance on deposits accounts with the Deposit Insurance Fund of the FDIC. The primary business of WCF Financial Service Corp (the Service Corp), a wholly-owned subsidiary of the Bank, was the sale of credit life and disability insurance products that were previously disallowed by savings and loan regulations. Currently the Service Corp is inactive. Principals of Consolidation The consolidated financial statements include the accounts of WCF Bancorp, Inc. and its subsidiaries. All material inter-company accounts and transactions have been eliminated. Use of Estimates The accompanying audited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and in accordance with SEC rules and regulations. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from the estimates. Significant items subject to such estimates and assumptions include the allowance for loan losses, valuation of investments, and deferred tax asset and liabilities including valuation allowance. As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of December 31, 2018, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. Reclassification Certain amounts in prior year financial statements have been reclassified to conform with the current year presentation. The reclassifications had no effect on previously reported net income or stockholders' equity. Segment Information An operating segment is generally defined as a component of a business for which discrete financial information is available and whose operating results are regularly reviewed by the chief operation decision-maker. The Company has determined that its business is comprised of one operating segment, which is banking. The banking segment generates revenue through interest and fees on loans, service charges on deposit accounts, interest on investment securities, and other miscellaneous banking related activities. This segment includes the Company, WCF Financial Bank, its subsidiary, and related elimination entries between them. Comprehensive Income Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) (OCI). OCI consists of the net change in unrealized gains and losses on the Company's securities available-for-sale, including the noncredit-related portion of unrealized gains and losses of OTTI securities. Cash and Cash Equivalents For the purpose of reporting cash flows, the Company includes cash and funds due from other depository institutions. The Company maintains amounts due from banks which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. Included as cash equivalents at December 31, 2018 and 2017 were interest-bearing deposits totaling $14,177,356 and $5,451,778, respectively. Time Deposits in Other Financial Institutions Time deposits in other financial institutions consist of certificate of deposit not meeting the definition of cash and cash equivalents. All certificates are held by other banks, are recorded at cost and mature from January 2019 through December 2023. Securities Securities are classified based on the Company’s intended holding period. Securities that may be sold prior to maturity to meet liquidity needs, to respond to market changes, or to adjust the Company’s asset-liability position are classified as available-for-sale. Currently, all securities are classified as available-for-sale. Securities available-for-sale are carried at fair value, with the aggregate unrealized gains or losses, net of the effect of taxes on income, reported as accumulated other comprehensive income or loss. Other-than-temporary impairment is recorded in net income. The Company’s net income reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value), if any, on debt securities that the Company intends to sell, or would more likely than not be required to sell, before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management lacks intent to sell, and believes that it will not more likely than not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in net income, while the rest of the fair value loss is recognized in other comprehensive income (loss). The credit loss component recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using the Company’s cash flow projections using its base assumptions. A decline in the fair value of any available-for-sale security below cost and that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value for the credit portion of the loss. The impairment is charged to net income and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability to hold and lack of intent to sell the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, and the general market conditions. Net realized gains or losses are shown in the consolidated statements of income in the noninterest income line using the specific identification method. Net realized losses of $14,465 and $0 were recorded in 2018 and 2017, respectively. FHLB Stock FHLB stock represents equity interest in the Federal Home Loan Bank (FHLB) of Des Moines and its carried at cost due to the restricted nature of the stock and is evaluated for potential impairment annually. There was no impairment in 2018 and 2017. Bankers' Bank Stock Bankers' Bank stock represents equity interest in Bankers' Bank of Madison (Bankers' Bank) and is carried at cost due to the restricted nature of the stock and is evaluated for potential impairment annually. There was no impairment in 2018 and 2017. Loans Receivable Loans receivable are stated at the amount of unpaid principal, reduced by the allowance for loan losses, deferred loan fees and discounts on loans purchased. Loans receivable are charged against the allowance when management believes collectability of principal is unlikely. Interest on loans receivable is accrued and credited to operations based primarily on the principal amount outstanding. Certain loan balances include unearned discounts, which are recorded as income over the term of the loan. Accrued interest receivable on loans receivable that become more than 90 days in arrears is charged to an allowance that is established by a charge to interest income. Interest income is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is reasonably assured, in which case the loan is returned to accrual status. Under the Company’s credit policies, commercial loans are considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate except, where more practical, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. Allowance for Loan Losses The allowance for loan losses is based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is appropriate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, the composition of the loan portfolio, value of underlying collateral, and management’s estimate of probable credit losses. Loan Origination Fees and Related Costs Mortgage loan origination fees and certain direct loan origination costs are deferred, and the net fee or cost is amortized using the interest method over the estimated life of the loan. Premiums and discounts in connection with loans purchased are amortized over the term of the loans using the interest method. Financial Instruments with Off-Balance Sheet Risk Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements (see note 11). The Company evaluates each customer's creditworthiness 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 counter party. Office Property and Equipment, Net Office property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided primarily by the straight-line method over the estimated useful lives of the related assets, which range from 10 to 40 years for the office building and improvements and 5 to 25 years for furniture, fixtures, and equipment. Maintenance and repairs expenditures are charged against income. Expenditures for improvements are capitalized and subsequently depreciated. The cost and accumulated depreciation of assets retired or otherwise disposed of are eliminated from the asset and accumulated depreciation accounts. Related profit or loss from such transactions is credited or charged to income. At December 31, 2018 and 2017, the cost and accumulated depreciation of office property and equipment were as follows:
Depreciation expense was $260,875 and $294,804 for the years ended December 31, 2018 and 2017, respectively. Goodwill Accounting Policy Goodwill is not amortized but is subject to a qualitative impairment test to determine if it is more likely than not that goodwill is impaired. If it is determined impairment is more likely than not, a quantitative test is performed to measure the impairment, if any. The Company has completed its annual qualitative test and determined no impairment existed as of December 31, 2018 and 2017. Bank-owned life insurance The carrying amount of bank-owned life insurance consists of the initial premium paid, plus increases in cash value, less the carrying amount associated with any death benefit received. Death benefits paid in excess of the applicable carrying amount are recognized as income. Increases in cash value and the portion of death benefits recognized as income are exempt from income taxes. Revenue Recognition Interest income and expenses are recognized on the accrual method based on the respective outstanding balances of the assets and liabilities. Other revenue is recognized at the time the service is rendered. Taxes on Income Deferred income taxes are provided under the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. There were no interest and penalties on unrecognized tax benefits for the years ending December 31, 2018 and 2017. Regulatory Environment The Company is subject to regulations of certain state and federal agencies, including periodic examinations by those regulatory agencies. The Company and the Bank are also subject to minimum regulatory capital requirements. At December 31, 2018 and 2017, capital levels exceeded minimum capital requirements (see note 9). Investment in Affiliate The Company records its investment in an affiliate, New Castle Players, LLC, in which it has a 27.17% interest, using the equity method of accounting. The affiliate holds an investment in a local hotel in Webster City, Iowa. The Company records the value of its investment at year-end based on the affiliate’s most current available financial statements. In 2018 and 2017, the Company recorded its investment in affiliate value based on the affiliates December 31, 2018 and December 31, 2017 financial statements, respectively. The investment in affiliate is analyzed annually. If impairment is determined to be other-than-temporary, the carrying amount is written down to fair value. The investment in affiliate is included as a component of prepaid expenses and other assets on the consolidated balance sheets, while the equity income earned is included as a component of other noninterest income on the consolidated statements of income. Summary unaudited financial information of the affiliate as of and for the periods ending December 31, 2018 and December 31, 2017 is presented below.
Earnings per Common Share The calculation of earnings per common share and diluted earnings per common share for the twelve months ended December 31, 2018 and December 31, 2017 is presented below.
Unearned employee stock ownership plan (ESOP) shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. ESOP shares that have been committed to be released are considered outstanding when committed to be released and included for the purposes of computing basic and diluted earnings per share. Employee Stock Ownership Plan The Company has an employee stock ownership plan (ESOP) covering substantially all employees. The cost of shares issued to the ESOP but not yet allocated to participants is presented in the consolidated balance sheets as a reduction of stockholders' equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts and dividends paid for unallocated shares. See footnote 8 for additional ESOP disclosures. Subsequent Events The Company has evaluated subsequent events through March 29, 2019, which is the date the consolidated financial statements were issued. There are no subsequent events requiring recognition or disclosure in the consolidated financial statements by the Company other than the item noted below. On February 28, 2019 the Company purchased a pool of one-to-four family residential real estate loans totaling $5.4 million. Current Accounting Developments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. This update will be effective for interim and annual periods beginning after December 15, 2018. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by updating certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other changes, the update includes requiring changes in fair value of equity securities with readily determinable fair value to be recognized in net income and clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with an entity's other deferred tax assets. This update will be effective for interim and annual periods beginning after December 15, 2018, and is to be applied on a modified retrospective basis. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires that financial assets measured at amortized cost should be presented at the net amount expected to be collected through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is in contrast to existing guidance whereby credit losses generally are not recognized until they are incurred. This update will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 shorten the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company currently amortizes premiums on callable debt securities to the earliest call date. As such, the amendments in ASU 2017-08 will not impact the Company's consolidated financial statements, results of operations and liquidity. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendment in this update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, enactment of the reduced federal corporate income tax rate, which is effective in 2018, with early adoption permitted. The amendment can be adopted at the beginning of the period or on a retrospective basis. The Company adopted the amendment in the first quarter of 2018 using the beginning of the period option. The reclassified amount was approximately $61,000. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The company is currently evaluating the impact of this new standard on its consolidated financial statements. |
Securities Available-for-Sale |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Available-for-Sale | Securities Available-for-Sale Securities available-for-sale at December 31, 2018 and 2017 were as follows:
The amortized cost and estimated fair value of securities available-for-sale at December 31, 2018 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The details of the sales of investment securities for the years ended December 31, 2018 and 2017 are summarized in the following table.
At December 31, 2018 and December 31, 2017, accrued interest receivable for securities available-for-sale totaled $231,087 and $220,888, respectively. The following tables show the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2018 and December 31, 2017.
As of December 31, 2018 and 2017, the Company had 78 and 63, respectively, individual securities that were in an unrealized loss position. The Company’s assessment of other-than-temporary impairment is based on its reasonable judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets, and the current and anticipated market conditions when making its assessment. The Company lacks intent to sell its available-for-sale investment securities and it is not more likely than not that the Company will be required to sell them before the recovery of its cost. Due to the issuers’ continued satisfactions of their obligations under the securities in accordance with their contractual terms and the expectation that they will continue to do so, and management’s lack of intent to sell and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in fair value, the Company believes that the investment securities identified in the tables above were temporarily impaired as of December 31, 2018 and December 31, 2017. |
Loans Receivable |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable At December 31, 2018 and 2017, loans receivable consisted of the following segments:
Accrued interest receivable on loans receivable was $193,822 and $218,967 at December 31, 2018 and 2017, respectively. The loan portfolio included $46.7 million and $40.6 million of fixed rate loans and $17.6 million and $28.4 million of variable rate loans as of December 31, 2018 and 2017, respectively. The Company originates residential, commercial real estate loans and other consumer loans, primarily in its Hamilton County, and Buchanan County, Iowa market areas and their adjacent counties. A substantial portion of its borrowers’ ability to repay their loans is dependent upon economic conditions in the Company’s market area. Loan customers of the Company include certain directors, officers, and their related interests and associates. All loans to this group were made in the ordinary course of business at prevailing terms and conditions. Changes in such loans during the years ended December 31, 2018 and 2017 were as follows:
|
Allowance for Loan Losses |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses The following tables present the balance in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017.
Activity in the allowance for loan losses by segment for the years ended December 31, 2018 and 2017 is summarized in the following tables:
One-to-four family residential: The Company generally retains most residential mortgage loans that are originated for its own portfolio. The market value of real estate securing residential real estate loans can fluctuate as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in the Company’s market could increase credit risk associated with its loan portfolio. Additionally, real estate lending typically involves large loan principal amounts and the repayment of the loans generally is dependent, in large part, on the borrower’s continuing financial stability, and is therefore more likely to be affected by adverse personal circumstances. Non-owner occupied one-to-four family residential: The Company originates fixed-rate and adjustable-rate loans secured by non-owner occupied one-to-four family properties. These loans may have a term of up to 25 years. Generally the Bank will lend up to 75% of the property’s appraised value. Appraised values are determined by an outside independent appraiser. In deciding to originate a loan secured by a non-owner occupied one-to-four family residential property, management reviews the creditworthiness of the borrower and the expected cash flows from the property securing the loan, the cash flow requirements of the borrower and the value of the property securing the loan. This segment is generally secured by one-to-four family properties. Commercial real estate: On a very limited basis, the Company originates fixed-rate and adjustable-rate commercial real estate and land loans. These loans may have a term of up to 20 years. Generally the Bank will lend up to 75% of the property’s appraised value. Appraised values are determined by an outside independent appraiser. In recent years, the Company has significantly reduced the emphasis on these types of loans. This segment is generally secured by retail, industrial, service or other commercial properties and loans secured by raw land, including timber. Consumer: Consumer loans typically have shorter terms, lower balances, higher yields, and higher rates of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. This segment consists mainly of loans collateralized by automobiles. The collateral securing these loans may depreciate over time, may be difficult to recover and may fluctuate in value based on condition.
The Company requires a loan to be at least partially charged off as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors.
All loans deemed troubled debt restructurings, or “TDR”, are considered impaired, and are evaluated for collateral sufficiency. A loan is considered a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Bank would not otherwise consider. There were no troubled debt restructurings in 2018 or 2017.
Loans that are deemed to be impaired are reserved for with the necessary allocation. All loans deemed troubled debt restructurings are considered impaired. Generally loans for one-to-four family residential and consumer are collectively evaluated for impairment.
All loans not evaluated individually for impairment are grouped together by type and further segmented by risk classification. The Company’s historical loss experiences for each portfolio segment are calculated using a 12 quarter rolling average loss rate for estimating losses adjusted for qualitative factors. The qualitative factors consider economic and business conditions, changes in nature and volume of the loan portfolio, concentrations, collateral values, level and trends in delinquencies, external factors, lending policies, experience of lending staff, and monitoring of credit quality.The following tables set forth the composition of each class of the Company’s loans by internally assigned credit quality indicators as of December 31, 2018 and 2017.
Special Mention/Watch – Loans classified as special mention/watch are assets that do not warrant adverse classification but possess credit deficiencies or potential weakness deserving close attention. Substandard – Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified 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 – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable, and improbable. The Company had impaired loans with a balance of $0 and $274,804 as of December 31, 2018 and 2017, respectively. No interest income was recorded on impaired loans during 2018 or 2017.
Loans are placed on nonaccrual status when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 or more (unless the loan is well secured with marketable collateral) and in the process of collection. A nonaccrual asset may be restored to an accrual status when all past‑due principal and interest has been paid and the borrower has demonstrated satisfactory payment performance (excluding renewals and modifications that involve the capitalizing of interest). Delinquency status of a loan is determined by the number of days that have elapsed past the loan’s payment due date, using the following classification groupings: 30‑59 days, 60‑89 days, and 90 days or more. Loans shown in the 30‑59 days and 60‑89 days columns in the table below reflect contractual delinquency status only, and include loans considered nonperforming due to classification as a TDR or being placed on nonaccrual. The following tables set forth the composition of the Company’s past-due loans at December 31, 2018 and 2017.
The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of December 31, 2018 and 2017.
|
Deposits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits At December 31, 2018 and 2017, deposits are summarized as follows:
Included in the NOW accounts were $4.8 million and $4.6 million of non-interest bearing deposits as of December 31, 2018 and 2017, respectively. The aggregate amount of certificates of deposit with a minimum denomination of $250,000 was $9.0 million and $7.1 million at December 31, 2018 and 2017 , respectively. At December 31, 2018, the scheduled maturities of certificates of deposits were as follows:
Interest expense on deposits for the years ended December 31, 2018 and 2017 is summarized as follows:
Public funds amounted to $9.7 million and $6.9 million as of December 31, 2018 and 2017, respectively, including deposits of $7.5 million and $5.0 million from a single customer in 2018 and 2017. |
Advances from Federal Home Loan Bank |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank | Advances from Federal Home Loan Bank The following is a summary of advances from FHLB at December 31, 2018 and 2017:
Advances from the FHLB are secured by stock in the FHLB. In addition, the Bank has agreed to maintain unencumbered additional security in the form of certain residential mortgage loans aggregating no less than 125% of outstanding advances. The advance requires monthly interest payments and principal is due at maturity. The FHLB advances at December 31, 2018 and 2017 are collateralized by one-to-four family owner and non-owner residential real estate loans with a carrying value of $37.3 million and $46.8 million, respectively. The Bank also has an available a line of credit in the amount of $2.5 million at Bankers’ Bank. As of December 31, 2018 and 2017, there were no amounts outstanding, and there had been no draws on the line of credit during 2018 or 2017. |
Taxes on Income |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on Income | Taxes on Income Taxes on income comprise the following for the years ended December 31, 2018 and 2017:
Taxes on income differ from the amounts computed by applying the federal income tax rate of 21% for 2018 and 34% for 2017 to earnings before taxes on income for the following reasons, expressed in dollars at December 31, 2018 and 2017:
Federal income tax expense for the years ending December 31, 2018 and 2017 was computed using the consolidated effective federal tax rate. The Company also recognized income tax expense pertaining to state franchise taxes payable individually by the Bank. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below:
Based upon the Company’s level of historical taxable income and anticipated future taxable income over the periods that the deferred tax assets are deductible, management has reviewed whether it is more likely than not the Company will realize the benefits of these deductible differences. Management has determined that a valuation allowance was required for deferred tax assets at December 31, 2018 and 2017, related to the charitable contribution carryforward. The charitable contribution expires in varying amounts between 2020 and 2023. In addition, as of December 31, 2018, a $26,000 valuation allowance was recorded related to the deferred Iowa income tax items of WCF Bancorp, Inc. As of December 31, 2018 the Company had a federal net operating loss carryforward of $821,000 and a state net operating loss carryforward of $482,000 which expire from 2036 to 2037 under current tax law federal net operating losses arising in years ended after December 31, 2017 do not expire. As of December 31, 2018, the Company had no material unrecognized tax benefits. The evaluation was performed for those tax years that remain open to audit. The Company files a consolidated tax return for federal purposes and separate tax returns for the State of Iowa purposes. Under previous law, the provisions of the IRS and similar sections of Iowa law permitted the Bank to deduct from taxable income an allowance for bad debts based on 8% of taxable income before such deduction or actual loss experience. Legislation passed in 1996 eliminated the percentage of taxable income method as an option for computing bad debt deductions for 1996 and in future years. Deferred taxes have been provided for the difference between tax bad debt reserves and the loan loss allowances recorded in the financial statements subsequent to December 31, 1987. However, at December 31, 2018 and 2017, retained earnings contain certain historical additions to bad debt reserves for income tax purposes of $2,134,000 as of December 31, 1987, for which no deferred taxes have been provided because the Bank does not intend to use these reserves for purposes other than to absorb losses. If these amounts which qualified as bad debt deductions are used for purposes other than to absorb bad debt losses or adjustments arising from the carryback of net operating losses, income taxes may be imposed at the then-existing rates. The approximate amount of unrecognized tax liability associated with these historical additions is $523,000. |
Benefit Plans |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans
The Bank is a participant in the Financial Institutions Retirement Fund (FIRF), and all of its officers and employees hired prior to November 1, 2008 are covered by the retirement plan. In August 2008, the board of directors passed a resolution to change the Employer’s Basis of Participation in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan). The amendment excludes employees who began employment after November 1, 2008 from receiving benefits under the defined-benefit plan. The defined-benefit plan had total assets of $5.3 million and total liabilities of $5.3 million with a funding shortfall in the plan of $34,216 as of June 30, 2018, the date of the latest actuarial valuation. In 2017 the defined-benefit plan had total assets of $5.1 million and total liabilities of $5 million with an excess funding in the plan of $141,495 as of June 30, 2017, the date of the latest actuarial valuation. The Company has not undertaken, and does not intend, to voluntarily withdraw or partially withdraw from the defined-benefit plan. Additionally, there are no known intentions to terminate the defined-benefit plan. The Company’s contribution to the Pentegra Defined Benefit Plan was less than five percent of all contributions received. The table below provides additional information for the defined-benefit plan:
The minimum contributions required relate to on-going servicing costs associated with managing the plan and do not relate to a minimum contribution required to keep the funding status above critical levels. On November 1, 2008, the Company began participating in the Pentegra Defined Contribution Plan. The defined-contribution plan covers employees who began employment after November 1, 2008, with a company match of employee contributions up to 6% of the employee’s salary. Employees covered under the defined-benefit plan can also participate in the defined-contribution plan, but the company match is only available to employees who began employment after November 1, 2008. On January 1, 2012 the Company switched defined-contribution plan providers from Pentegra Defined Contribution Plan to Architect 401(k) MEP, provided by The Finway Group. There were $9,605 and $17,283 in contributions made by the Company to the defined-contribution plan in 2018 and 2017, respectively.
The Company has deferred compensation agreements with certain directors. At December 31, 2018 and 2017, accrued deferred compensation of $739,536 and $780,886, respectively, was recorded in accrued expenses and other liabilities. Directors’ fees deferred were $9,000 and $12,400 for 2018 and 2017, respectively. Retired directors withdrew $135,914 and $137,068 in 2018 and 2017, respectively. Interest of $43,371 and $35,151 was accrued in 2018 and 2017, respectively.
The Company established an ESOP on July 13, 2016 in connection with its common stock offering. In conjunction with the second-step conversion described in Note 1, the ESOP purchased 171,138 shares at $8.00 per share. To fund the purchase, the ESOP borrowed $1.4 million from the Company at a variable rate equal to the lowest Prime Rate published in The Wall Street Journal, to be repaid on a prorated basis in 25 substantially equal annual installments. The collateral for the loan is the common stock of the Company purchased by the ESOP. The shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares are to be released annually from the suspense account and the released shares will be allocated to participants on the basis of each participant’s compensation for the year of allocation. As shares are released from collateral, the Company recognizes compensation expense equal to the average market price of the shares during the period. The Company recognizes compensation expenses for dividends paid to unallocated shares. Committed to be released shares are considered outstanding for earnings-per-share purposes. The shares not released are reported as unearned ESOP shares in the stockholders’ equity section on the consolidated balance sheets. At December 31, 2018 there were 20,537 allocated shares and 150,601 unallocated shares. The fair value of unallocated ESOP shares at December 31, 2018 was $1.2 million. |
Stockholders' Equity |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity
The Company and WCF Financial Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators which, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and WCF Financial Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and WCF Financial Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believes the Company and WCF Financial Bank met all capital adequacy requirements to which they were subject as of December 31, 2018 and 2017. The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of December 31, 2018 and 2017 (dollars in thousands).
In July 2013, the Federal Reserve Board issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revised minimum capital requirements and adjusted prompt corrective action thresholds. The final rules revised the regulatory capital elements, added a new common equity Tier 1 capital ratio, increased the minimum Tier 1 capital ratio requirement, and implemented a new capital conservation buffer. The rules also permitted certain banking organizations to retain, through a one-time election, the existing treatment for AOCI. The Company and WCF Financial Bank made the election to retain the existing treatment, which excludes AOCI from regulatory capital amounts. The final rules took effect for the Company and WCF Financial Bank on January 1, 2015, subject to a transition period for certain parts of the rules. Beginning in 2016, an additional capital conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer will be fully phased-in on January 1, 2019 at 2.50%. A banking organization with a conservation buffer of less than 2.50% (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. As of December 31, 2018, the ratios for the Company and WCF Financial Bank were sufficient to meet the fully phased-in conservation buffer.
The Company declared and paid a dividend of $0.05 per share in each of the four quarters for years ended December 31, 2018 and December 31, 2017. The primary source of funds for the Company is dividends from WCF Financial Bank. Under the Iowa Banking Act, Iowa-chartered banks generally may pay dividends only out of undivided profits. The Iowa Division of Banking may restrict the declaration or payment of a dividend by an Iowa-chartered bank, such as WCF Financial Bank. The payment of dividends by any FDIC-insured institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and an FDIC-insured institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. As described above, WCF Financial Bank exceeded its capital requirements under applicable guidelines as of December 31, 2018. Notwithstanding the availability of funds for dividends, however, the FDIC and the Iowa Division of Banking may prohibit the payment of dividends by WCF Financial Bank if either or both determine such payment would constitute an unsafe or unsound practice. In addition, under the Basel III Rule, institutions that seek the freedom to pay dividends will have to maintain 2.5% in Common Equity Tier 1 Capital attributable to the capital conservation buffer. |
Fair Value |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset of liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. ASC 820 requires the use of valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and liabilities carried at fair value.
The following tables summarize financial assets measured at fair value on a recurring basis as of December 31, 2018 and 2017, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. The Company has no liabilities measured at fair value on a recurring basis in the consolidated balance sheets.
There have been no changes in valuation methodologies at December 31, 2018 compared to December 31, 2017 and there were no transfers between levels during the periods ended December 31, 2018 and 2017. The Company is required to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These adjustments to fair value usually result from application of lower‑of‑cost or fair value accounting or write‑downs of individual assets. As of December 31, 2018 and December 31, 2017, the Company did not have any material assets measured at fair value on a nonrecurring basis. The estimated fair values of Company’s financial instruments at December 31, 2018 and 2017 were as follows:
|
Commitments and Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved with various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. The financial instruments include commitments to extend credit of $769,169 and $200,677 as of December 31, 2018 and 2017, respectively. These commitments expire one year from origination and are both fixed and adjustable interest rates ranging from 3.25% to 6.75%. |
Parent Company Only Financial Statements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following parent only balance sheets, statements of operations and cash flows for WCF Bancorp, Inc. should be read in conjunction with the consolidated statements and the notes thereto.
|
Accumulated Other Comprehensive Income (Loss) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) components at December 31, 2018 and 2017 were as follows:
|
Basis of Presentation (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principals of Consolidation | The consolidated financial statements include the accounts of WCF Bancorp, Inc. and its subsidiaries. All material inter-company accounts and transactions have been eliminated. |
Basis of Presentation | The accompanying audited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and in accordance with SEC rules and regulations. |
Use of Estimates | In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from the estimates. Significant items subject to such estimates and assumptions include the allowance for loan losses, valuation of investments, and deferred tax asset and liabilities including valuation allowance. |
Reclassification | Certain amounts in prior year financial statements have been reclassified to conform with the current year presentation. |
Segment Information | An operating segment is generally defined as a component of a business for which discrete financial information is available and whose operating results are regularly reviewed by the chief operation decision-maker. The Company has determined that its business is comprised of one operating segment, which is banking. The banking segment generates revenue through interest and fees on loans, service charges on deposit accounts, interest on investment securities, and other miscellaneous banking related activities. This segment includes the Company, WCF Financial Bank, its subsidiary, and related elimination entries between them. |
Comprehensive Income | Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) (OCI). OCI consists of the net change in unrealized gains and losses on the Company's securities available-for-sale, including the noncredit-related portion of unrealized gains and losses of OTTI securities. |
Cash and Cash Equivalents | For the purpose of reporting cash flows, the Company includes cash and funds due from other depository institutions. The Company maintains amounts due from banks which at times may exceed federally insured limits. |
Time Deposits in Other Financial Institutions | Time deposits in other financial institutions consist of certificate of deposit not meeting the definition of cash and cash equivalents. All certificates are held by other banks, are recorded at cost and mature from January 2019 through December 2023. |
Securities | Securities are classified based on the Company’s intended holding period. Securities that may be sold prior to maturity to meet liquidity needs, to respond to market changes, or to adjust the Company’s asset-liability position are classified as available-for-sale. Currently, all securities are classified as available-for-sale. Securities available-for-sale are carried at fair value, with the aggregate unrealized gains or losses, net of the effect of taxes on income, reported as accumulated other comprehensive income or loss. Other-than-temporary impairment is recorded in net income. The Company’s net income reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value), if any, on debt securities that the Company intends to sell, or would more likely than not be required to sell, before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management lacks intent to sell, and believes that it will not more likely than not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in net income, while the rest of the fair value loss is recognized in other comprehensive income (loss). The credit loss component recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected using the Company’s cash flow projections using its base assumptions. A decline in the fair value of any available-for-sale security below cost and that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value for the credit portion of the loss. The impairment is charged to net income and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability to hold and lack of intent to sell the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, and the general market conditions. |
FHLB Stock | FHLB stock represents equity interest in the Federal Home Loan Bank (FHLB) of Des Moines and its carried at cost due to the restricted nature of the stock and is evaluated for potential impairment annually. |
Bankers' Bank Stock | Bankers' Bank stock represents equity interest in Bankers' Bank of Madison (Bankers' Bank) and is carried at cost due to the restricted nature of the stock and is evaluated for potential impairment annually. |
Loans Receivable/Loan Origination Fees and Related Costs | Mortgage loan origination fees and certain direct loan origination costs are deferred, and the net fee or cost is amortized using the interest method over the estimated life of the loan. Premiums and discounts in connection with loans purchased are amortized over the term of the loans using the interest method. Loans receivable are stated at the amount of unpaid principal, reduced by the allowance for loan losses, deferred loan fees and discounts on loans purchased. Loans receivable are charged against the allowance when management believes collectability of principal is unlikely. Interest on loans receivable is accrued and credited to operations based primarily on the principal amount outstanding. Certain loan balances include unearned discounts, which are recorded as income over the term of the loan. Accrued interest receivable on loans receivable that become more than 90 days in arrears is charged to an allowance that is established by a charge to interest income. Interest income is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is reasonably assured, in which case the loan is returned to accrual status. Under the Company’s credit policies, commercial loans are considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate except, where more practical, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. |
Allowance for Loan Losses | The allowance for loan losses is based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is appropriate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, the composition of the loan portfolio, value of underlying collateral, and management’s estimate of probable credit losses. |
Financial Instruments with Off-Balance Sheet Risk | Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements (see note 11). The Company evaluates each customer's creditworthiness 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 counter party. |
Office Property and Equipment, Net | Office property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided primarily by the straight-line method over the estimated useful lives of the related assets, which range from 10 to 40 years for the office building and improvements and 5 to 25 years for furniture, fixtures, and equipment. Maintenance and repairs expenditures are charged against income. Expenditures for improvements are capitalized and subsequently depreciated. The cost and accumulated depreciation of assets retired or otherwise disposed of are eliminated from the asset and accumulated depreciation accounts. Related profit or loss from such transactions is credited or charged to income. |
Goodwill Accounting Policy | Goodwill is not amortized but is subject to a qualitative impairment test to determine if it is more likely than not that goodwill is impaired. If it is determined impairment is more likely than not, a quantitative test is performed to measure the impairment, if any. |
Bank-owned life insurance | The carrying amount of bank-owned life insurance consists of the initial premium paid, plus increases in cash value, less the carrying amount associated with any death benefit received. Death benefits paid in excess of the applicable carrying amount are recognized as income. Increases in cash value and the portion of death benefits recognized as income are exempt from income taxes. |
Revenue Recognition | Interest income and expenses are recognized on the accrual method based on the respective outstanding balances of the assets and liabilities. Other revenue is recognized at the time the service is rendered. |
Taxes on Income | Deferred income taxes are provided under the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. |
Investment in Affiliate | The Company records its investment in an affiliate, New Castle Players, LLC, in which it has a 27.17% interest, using the equity method of accounting. The affiliate holds an investment in a local hotel in Webster City, Iowa. The Company records the value of its investment at year-end based on the affiliate’s most current available financial statements. In 2018 and 2017, the Company recorded its investment in affiliate value based on the affiliates December 31, 2018 and December 31, 2017 financial statements, respectively. The investment in affiliate is analyzed annually. If impairment is determined to be other-than-temporary, the carrying amount is written down to fair value. The investment in affiliate is included as a component of prepaid expenses and other assets on the consolidated balance sheets, while the equity income earned is included as a component of other noninterest income on the consolidated statements of income. |
Employee Stock Ownership Plan | The Company has an employee stock ownership plan (ESOP) covering substantially all employees. The cost of shares issued to the ESOP but not yet allocated to participants is presented in the consolidated balance sheets as a reduction of stockholders' equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts and dividends paid for unallocated shares. |
Subsequent Events | The Company has evaluated subsequent events through March 29, 2019, which is the date the consolidated financial statements were issued. There are no subsequent events requiring recognition or disclosure in the consolidated financial statements |
Current Accounting Developments | In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. This update will be effective for interim and annual periods beginning after December 15, 2018. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information by updating certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other changes, the update includes requiring changes in fair value of equity securities with readily determinable fair value to be recognized in net income and clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with an entity's other deferred tax assets. This update will be effective for interim and annual periods beginning after December 15, 2018, and is to be applied on a modified retrospective basis. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires that financial assets measured at amortized cost should be presented at the net amount expected to be collected through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is in contrast to existing guidance whereby credit losses generally are not recognized until they are incurred. This update will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 shorten the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company currently amortizes premiums on callable debt securities to the earliest call date. As such, the amendments in ASU 2017-08 will not impact the Company's consolidated financial statements, results of operations and liquidity. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendment in this update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, enactment of the reduced federal corporate income tax rate, which is effective in 2018, with early adoption permitted. The amendment can be adopted at the beginning of the period or on a retrospective basis. The Company adopted the amendment in the first quarter of 2018 using the beginning of the period option. The reclassified amount was approximately $61,000. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The company is currently evaluating the impact of this new standard on its consolidated financial statements. |
Basis of Presentation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | At December 31, 2018 and 2017, the cost and accumulated depreciation of office property and equipment were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Equity Method Investments | Summary unaudited financial information of the affiliate as of and for the periods ending December 31, 2018 and December 31, 2017 is presented below.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The calculation of earnings per common share and diluted earnings per common share for the twelve months ended December 31, 2018 and December 31, 2017 is presented below.
|
Securities Available-for-Sale (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | Securities available-for-sale at December 31, 2018 and 2017 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at December 31, 2018 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investment Securities Sales | The details of the sales of investment securities for the years ended December 31, 2018 and 2017 are summarized in the following table.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Securities in a Continuous Unrealized Loss Position | The following tables show the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2018 and December 31, 2017.
|
Loans Receivable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable | At December 31, 2018 and 2017, loans receivable consisted of the following segments:
Changes in such loans during the years ended December 31, 2018 and 2017 were as follows:
|
Allowance for Loan Losses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Allowance for Loan Losses | The following tables present the balance in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017.
Activity in the allowance for loan losses by segment for the years ended December 31, 2018 and 2017 is summarized in the following tables:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans by Credit Quality Indicators | The following tables set forth the composition of each class of the Company’s loans by internally assigned credit quality indicators as of December 31, 2018 and 2017.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Past Due Loans | The following tables set forth the composition of the Company’s past-due loans at December 31, 2018 and 2017.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable on a Nonaccrual Status | The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of December 31, 2018 and 2017.
|
Deposits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits by Type | At December 31, 2018 and 2017, deposits are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Certificates of Deposit | At December 31, 2018, the scheduled maturities of certificates of deposits were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2018 and 2017 is summarized as follows:
|
Advances from Federal Home Loan Bank (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank, Advances | The following is a summary of advances from FHLB at December 31, 2018 and 2017:
|
Taxes on Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Taxes on income comprise the following for the years ended December 31, 2018 and 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Taxes on income differ from the amounts computed by applying the federal income tax rate of 21% for 2018 and 34% for 2017 to earnings before taxes on income for the following reasons, expressed in dollars at December 31, 2018 and 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below:
|
Benefit Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Schedule of Multiemployer Plans | The table below provides additional information for the defined-benefit plan:
|
Stockholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of December 31, 2018 and 2017 (dollars in thousands).
|
Fair Value (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets Measured at Fair Value on a Recurring Basis | The following tables summarize financial assets measured at fair value on a recurring basis as of December 31, 2018 and 2017, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. The Company has no liabilities measured at fair value on a recurring basis in the consolidated balance sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Estimated Fair Values of Company's Financial Instruments | The estimated fair values of Company’s financial instruments at December 31, 2018 and 2017 were as follows:
|
Parent Company Only Financial Statements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statement |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Cash Flow Statement |
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) components at December 31, 2018 and 2017 were as follows:
|
Basis of Presentation (Segment Information) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
Operating_segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Basis of Presentation (Cash and Cash Equivalents) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest-bearing deposits | $ 14,177,356 | $ 5,451,778 |
Basis of Presentation (Securities Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Losses on sale of securities available-for-sale, net | $ 14,465 | $ 0 |
Basis of Presentation (FHLB Stock) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impairment of FHLB stock | $ 0 | $ 0 |
Basis of Presentation (Bankers' Bank Stock) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impairment of bankers' bank stock | $ 0 | $ 0 |
Basis of Presentation (Office Property and Equipment, net Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 260,875 | $ 294,804 |
Office building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Office building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 40 years | |
Furniture, fixtures, and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Furniture, fixtures, and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years |
Basis of Presentation (Office Property and Equipment, net) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Office property and equipment, gross | $ 4,975,126 | $ 4,993,506 |
Less accumulated deprecation | 1,389,386 | 1,202,077 |
Total office property and equipment, net | 3,585,740 | 3,791,429 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Office property and equipment, gross | 804,000 | 804,000 |
Office building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Office property and equipment, gross | 3,657,779 | 3,657,779 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Office property and equipment, gross | $ 513,347 | $ 531,727 |
Basis of Presentation (Goodwill Accounting Policy) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Basis of Presentation (Taxes on Income) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest and penalties on unrecognized tax benefits | $ 0 | $ 0 |
Basis of Presentation (Investment in Affiliate Narrative) (Details) |
Dec. 31, 2018 |
---|---|
New Castle Players, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 27.17% |
Basis of Presentation (Investment in Affiliate) (Details) - New Castle Players, LLC - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 153,125 | $ 136,150 |
Long-term assets | 1,631,944 | 1,669,687 |
Current liabilities | 184,389 | 86,294 |
Total equity | 1,600,680 | 1,719,544 |
Total revenue | 996,735 | 924,323 |
Net income | $ 159,957 | $ 140,603 |
Basis of Presentation (Earnings per Common Share) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income (loss) | $ 226,407 | $ (116,105) |
Weighted average common shares outstanding and diluted common shares outstanding (in shares) | 2,410,295 | 2,404,096 |
Basic earnings (loss) per common share (in usd per share) | $ 0.09 | $ (0.05) |
Diluted earnings (loss) per common share (in usd per share) | $ 0.09 | $ (0.05) |
Basis of Presentation (Subsequent Events) (Details) $ in Millions |
1 Months Ended |
---|---|
Mar. 28, 2019
USD ($)
| |
Subsequent Event | One-to-four family residential | |
Subsequent Event [Line Items] | |
Purchase one - four family residential real estate loans | $ 5.4 |
Basis of Presentation (Current Accounting Developments) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
ASU 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax effects reclassified into retained earnings | $ 61 |
Securities Available-for-Sale (Amortized Cost and Fair Value of Securities by Maturity) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Amortized cost | ||
Due in one year or less | $ 2,929,391 | |
Due after one year through five years | 2,243,676 | |
Due after five years, but less than ten years | 7,706,615 | |
Due after ten years | 5,345,228 | |
With single maturity date total | 18,224,910 | |
Amortized cost | 44,735,943 | $ 43,622,065 |
Fair value | ||
Due in one year or less | 2,936,751 | |
Due after one year through five years | 2,480,422 | |
Due after five years, but less than ten years | 7,356,480 | |
Due after ten years | 5,199,504 | |
With single maturity date total | 17,973,157 | |
Fair value | 43,622,041 | 43,129,481 |
Mortgage-backed securities | ||
Amortized cost | ||
Without single maturity date | 26,511,033 | |
Amortized cost | 26,511,033 | 27,331,766 |
Fair value | ||
Without single maturity date | 25,648,884 | |
Fair value | $ 25,648,884 | $ 26,784,589 |
Securities Available-for-Sale (Sales of Investment Securities) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 2,121,241 | $ 0 |
Gross gains on sales | 7,280 | 0 |
Gross losses on sales | $ 21,745 | $ 0 |
Securities Available-for-Sale (Narrative) (Details) |
Dec. 31, 2018
USD ($)
security
|
Dec. 31, 2017
USD ($)
security
|
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Accrued interest receivable | $ 424,909 | $ 439,855 |
Number of individual securities that were in an unrealized loss position | security | 78 | 63 |
Available-for-sale securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Accrued interest receivable | $ 231,087 | $ 220,888 |
Securities Available-for-Sale (Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair value | ||
Up to 12 months | $ 7,793,313 | $ 11,847,512 |
Greater than 12 months | 28,803,558 | 23,312,572 |
Total | 36,596,871 | 35,160,084 |
Gross unrealized loss | ||
Up to 12 months | 138,716 | 98,854 |
Greater than 12 months | 1,016,723 | 501,299 |
Total | 1,155,439 | 600,153 |
U.S. agency securities | ||
Fair value | ||
Up to 12 months | 0 | 989,537 |
Greater than 12 months | 1,205,518 | 244,248 |
Total | 1,205,518 | 1,233,785 |
Gross unrealized loss | ||
Up to 12 months | 0 | 29 |
Greater than 12 months | 34,913 | 5,533 |
Total | 34,913 | 5,562 |
Mortgage-backed securities | ||
Fair value | ||
Up to 12 months | 3,393,192 | 5,944,732 |
Greater than 12 months | 20,903,713 | 20,843,664 |
Total | 24,296,905 | 26,788,396 |
Gross unrealized loss | ||
Up to 12 months | 36,192 | 80,034 |
Greater than 12 months | 829,868 | 467,143 |
Total | 866,060 | 547,177 |
Municipal bonds | ||
Fair value | ||
Up to 12 months | 4,400,121 | 4,913,243 |
Greater than 12 months | 6,694,327 | 2,224,660 |
Total | 11,094,448 | 7,137,903 |
Gross unrealized loss | ||
Up to 12 months | 102,524 | 18,791 |
Greater than 12 months | 151,942 | 28,623 |
Total | $ 254,466 | $ 47,414 |
Loans Receivable (Narrative) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 424,909 | $ 439,855 |
Loans receivable with fixed rates of interest | 46,700,000 | 40,600,000 |
Loans receivable with variable rates of interest | 17,600,000 | 28,400,000 |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 193,822 | $ 218,967 |
Loans Receivable (Related Party Loans) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at beginning of year | $ 173,362 | $ 772,472 |
Change in classification | 0 | (280,413) |
Additions | 11,060 | 0 |
Repayments/refinances | (8,114) | (318,697) |
Ending balance | $ 176,308 | $ 173,362 |
Allowance for Loan Losses (Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance of impaired loans | $ 0 | $ 274,804 |
Interest income recorded on impaired loans | $ 0 | 0 |
Non-owner occupied one-to-four family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum term on loans | 25 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Balance of impaired loans | $ 0 | 0 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum term on loans | 20 years | |
Loan amount, percentage of appraised value threshold | 75.00% | |
Balance of impaired loans | $ 0 | $ 274,804 |
Allowance for Loan Losses (Loans on Nonaccrual Status) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 644,715 | $ 425,429 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 581,060 | 150,625 |
Non-owner occupied one-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | 0 | 274,804 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, nonaccrual status | $ 63,655 | $ 0 |
Deposits (Schedule of Deposits) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Banking and Thrift [Abstract] | ||
Statement savings | $ 13,461,826 | $ 14,536,815 |
Money market plus | 11,153,339 | 11,749,674 |
NOW | 18,214,876 | 18,749,026 |
Certificates of deposit | 40,747,784 | 42,704,679 |
Deposits | $ 83,577,825 | $ 87,740,194 |
Deposits (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Concentration Risk [Line Items] | ||
Non-interest bearing deposits | $ 4.8 | $ 4.6 |
Aggregate amount of certificates of deposit with a minimum denomination of $250,000 | 9.0 | 7.1 |
Public funds | 9.7 | 6.9 |
Largest Customer | Customer Concentration Risk | Deposits | ||
Concentration Risk [Line Items] | ||
Public funds | $ 7.5 | $ 5.0 |
Deposits (Scheduled Maturities of Certificates of Deposits) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Banking and Thrift [Abstract] | ||
2019 | $ 23,558,991 | |
2020 | 6,715,085 | |
2021 | 4,715,960 | |
2022 | 3,670,299 | |
2023 | 2,087,449 | |
Total certificates of deposit | $ 40,747,784 | $ 42,704,679 |
Deposits (Interest Expense on Deposits) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Banking and Thrift [Abstract] | ||
Statement savings | $ 34,642 | $ 32,743 |
Money market plus and NOW | 102,424 | 44,410 |
Certificates of deposit | 575,601 | 517,604 |
Interest Expense, Deposits | $ 712,667 | $ 594,757 |
Advances from Federal Home Loan Bank (Summary of Advances from FHLB) (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Weighted average fixed interest rate | ||||
Weighted average fixed interest rate | 2.56% | 2.03% | ||
FHLB of Des Moines maturity in fiscal year ending December 31 | ||||
Maturing in next twelve months | $ 19,000,000 | $ 6,000,000 | ||
Maturing in year two | 3,000,000 | 3,000,000 | ||
Maturing in year three | 2,000,000 | 3,000,000 | ||
Maturing in year four | 2,000,000 | |||
FHLB advances | $ 24,000,000 | $ 14,000,000 | ||
Forecast | ||||
Weighted average fixed interest rate | ||||
Weighted average fixed interest rate | 2.52% | 2.36% |
Advances from Federal Home Loan Bank (Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Line of Credit Facility [Line Items] | ||
Percent of unencumbered additional security to outstanding advances (no less than) | 125.00% | |
Collateral pledged | $ 37,300,000 | $ 46,800,000 |
Line of credit | Bankers' Bank | ||
Line of Credit Facility [Line Items] | ||
Line of credit at Bankers' Bank | 2,500,000.0 | |
Amount outstanding | 0 | 0 |
Amount of draws on the line of credit | $ 0 | $ 0 |
Taxes on Income (Provision/Benefit) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Current federal income tax expense (benefit) | $ 1,744 | $ (24,341) |
Current state income tax expense (benefit) | 3,695 | 6,200 |
Current income tax expense (benefit) | 5,439 | (18,141) |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Deferred federal income tax expense (benefit) | 11,731 | 230,134 |
Deferred state income tax expense (benefit) | 3,985 | 6,000 |
Deferred income tax expense (benefit) | 15,716 | 236,134 |
Federal income tax expense (benefit) | 13,475 | 205,793 |
State income tax expense (benefit) | 7,680 | 12,200 |
Income tax expense (benefit) | $ 21,155 | $ 217,993 |
Taxes on Income (Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Federal income tax rate (as a percent) | 21.00% | 34.00% |
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 88,000 | $ 96,000 |
Unrecognized tax benefits | 0 | |
Retaining earnings on which income taxes have not been provided | 2,134,000 | $ 2,134,000 |
Increase in unrecognized tax benefits resulting from prior period tax positions | 523,000 | |
State income tax items | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 26,000 | |
Federal | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforward | 821,000 | |
State | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforward | $ 482,000 |
Taxes on Income (Effective Tax Rate Reconciliation) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Federal tax at statutory rate | $ 51,988 | $ 34,642 |
Items affecting federal income tax rate: | ||
State taxes on income, net of federal benefit | 6,067 | 8,052 |
Tax-exempt income | (55,304) | (84,963) |
Valuation allowance | (8,000) | (10,000) |
Effect of change in federal tax rate | 0 | 302,000 |
Other | 26,404 | (31,738) |
Income tax expense (benefit) | $ 21,155 | $ 217,993 |
Taxes on Income (Deferred Tax Assets and Liabilities) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Deferred directors’ fees | $ 185,000 | $ 195,000 |
Allowance for loan losses | 127,000 | 134,000 |
Net operating loss carryforward | 191,000 | 165,000 |
AMT credit carryforward | 17,360 | 34,720 |
Charitable contribution carryforward | 59,000 | 59,000 |
Professional fees | 44,000 | 49,000 |
Securities available for sale | 274,549 | 121,082 |
Other | 19,922 | 23,278 |
Gross deferred tax assets | 917,831 | 781,080 |
Valuation allowance | (88,000) | (96,000) |
Net deferred tax assets | 829,831 | 685,080 |
Deferred tax liabilities: | ||
Prepaid expenses | (14,000) | (14,000) |
FHLB stock dividends | (25,000) | (25,000) |
Fixed assets | (8,000) | 0 |
Intangible assets | (14,000) | (15,000) |
Gross deferred tax liabilities | (61,000) | (54,000) |
Net deferred tax assets | $ 768,831 | $ 631,080 |
Benefit Plans (Multiemployer Plan) (Details) - Multiemployer pension plan - Pentegra Defined Benefit Plan - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Multiemployer Plans [Line Items] | |||
Total assets | $ 5,300,000 | $ 5,100,000 | |
Total liabilities | 5,300,000 | 5,000,000 | |
Funded status of plan | $ 34,216 | $ 141,495 | |
Employer contribution, percent of contributions received (less than) | 5.00% |
Benefit Plans (Additional Information for the Defined-Benefit Plans) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Multiemployer pension plan | Pentegra Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 90,154 | $ 62,434 |
Benefit Plans (Defined Contribution Plan) (Details) - Pentegra Defined Contribution Plan - USD ($) |
12 Months Ended | ||
---|---|---|---|
Nov. 01, 2008 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Defined Contribution Plan Disclosure [Line Items] | |||
Employer match of employee contributions | 6.00% | ||
Contributions made by the Company to the defined-contribution plan | $ 9,605 | $ 17,283 |
Benefit Plans (Deferred Compensation) (Details) - Directors - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Accrued deferred compensation | $ 739,536 | $ 780,886 |
Directors' fees deferred | 9,000 | 12,400 |
Retired directors distribution amount | 135,914 | 137,068 |
Interest accrued | $ 43,371 | $ 35,151 |
Benefit Plans (Employee Stock Ownership Plan) (Details) $ / shares in Units, $ in Millions |
Dec. 31, 2018
USD ($)
shares
|
Jul. 13, 2016
USD ($)
Installment
$ / shares
shares
|
---|---|---|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares sold and held in employee stock ownership plan (in shares) | 171,138 | |
Employer loan amount | $ | $ 1.4 | |
Number of installments for repayment of employer loan | Installment | 25 | |
Allocated shares (in shares) | 20,537 | |
Shares held in suspense (in shares) | 150,601 | |
Fair value of unallocated shares | $ | $ 1.2 | |
IPO | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Price per share (in usd per share) | $ / shares | $ 8.00 |
Stockholders' Equity (Narrative) (Details) - $ / shares |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Equity [Abstract] | ||||||||||
Dividends declared per share of common stock (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | ||
Dividends paid per share of common stock (in usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.20 | $ 0.20 |
Fair Value (Narrative) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | $ 0 | $ 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Commitments and Contingencies (Details) - Commitments to extend credit - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheets risks, liability | $ 769,169 | $ 200,677 |
Off-balance sheet risks, expiration period, liability | 1 year | 1 year |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 3.25% | 3.25% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, interest rate, liability | 6.75% | 6.75% |
Parent Company Only Financial Statements (Statements of Operations) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Interest income: | ||
Loans receivable | $ 2,935,821 | $ 2,847,293 |
Other interest earning assets | 156,417 | 104,519 |
Total interest income | 4,078,911 | 3,828,125 |
Noninterest income | 991,876 | 611,426 |
Noninterest expense | 3,701,068 | 3,607,738 |
Tax expense (benefit) | 21,155 | 217,993 |
Net income (loss) | 226,407 | (116,105) |
Parent Company | ||
Interest income: | ||
Loans receivable | 14 | 3,330 |
Investment securities | 75,785 | 84,213 |
Other interest earning assets | 102,732 | 66,697 |
Total interest income | 178,531 | 154,240 |
Noninterest income | 47,367 | 41,693 |
Noninterest expense | 309,599 | 313,558 |
Loss before income taxes and equity in undistributed earnings of Bank | (83,701) | (117,625) |
Tax expense (benefit) | (7,423) | 20,992 |
Loss before equity in undistributed earnings of Bank | (76,278) | (138,617) |
Equity in undistributed earnings (loss) of Bank | 302,685 | 22,512 |
Net income (loss) | $ 226,407 | $ (116,105) |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Equity [Abstract] | ||
Unrealized holding losses on securities available-for-sale | $ (1,113,902) | $ (488,791) |
Tax impact | 274,549 | 178,424 |
Accumulated Other Comprehensive Income (Loss) | $ (839,353) | $ (310,367) |
CSM/#X ?G(8S6J.?"47I9[]XDN5X\0G! )*ZQ68&Z[P"$)X(9?&
M[UD3+Y:>N)Z_JG\*M;M:+LS HQ*_>&7;'!\PJJ!F@[!/:OP, $)S!M%5R&UL?95OKYL@%,:_BO$#7%1 [(TU65V6
M+=F2YB[;7M.65G-1'-!Z]^T'Z'66DKTI_Y[GG-]!H.4HY*MJ&-/16\=[M8T;
MK8=G -2Q81U53V)@O5DY"]E1;8;R M0@&3TY4\=!EB0YZ&C;QU7IYO:R*L55
M\[9G>QFI:]=1^6?'N!BW<1J_3[RTET;;"5"5 [VP[TS_&/;2C, 2Y=1VK%>M
MZ"/)SMOX0_I<$ZMW@I\M&]6J']E*#D*\VL&7TS9.+!#C[*AM!&J:&ZL9YS:0
MP?@]QXR7E-:X[K]'_^1J-[4