10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2017

OR

[   ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______________ to _______________

Commission File No. 001-37382

WCF Bancorp, Inc.

(Exact name of registrant as specified in its charter)

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)

(515) 832-3071

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

YES [ X ]     NO [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES [ X ]     NO [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[ ]	Accelerated filer	[ ]
Non-accelerated filer	[ ]	(Do not check if smaller reporting company)
		Smaller reporting company	[X]
		Emerging growth company	[X]

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES [   ]     NO [X]

As of November 9, 2017, the Registrant had 2,561,542 shares of its common stock, par value $0.01 per share, issued and outstanding.

WCF Bancorp, Inc.

Form 10-Q

Index

		Page
Part I - Financial Information
Item 1	Consolidated Financial Statements
	Consolidated Balance Sheets as of September 30, 2017 (unaudited) and December 31, 2016	1
	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2017 and 2016 (unaudited)	2
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2017 and 2016 (unaudited)	3
	Consolidated Statements of Changes in Equity for the Nine Months Ended September 30, 2017 and 2016 (unaudited)	4
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016 (unaudited)	5
	Notes to Consolidated Financial Statements (unaudited)	6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4	Controls and Procedures	31
Part II - Other Information
Item 1	Legal Proceedings	33
Item 1A	Risk Factors	33
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3	Defaults upon Senior Securities	33
Item 4	Mine Safety Disclosures	33
Item 5	Other Information	33
Item 6	Exhibits	33
	Signature Page	34

Part I – Financial Information

Item 1    Financial Statements

WCF Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

September 30, 2017 (unaudited) and December 31, 2016

Assets	September 30, 2017			December 31, 2016
Cash and due from banks	$	4,171,094		$	1,716,578
Federal funds sold	715,000			1,306,000
Cash and cash equivalents	4,886,094			3,022,578
Time deposits in other financial institutions	4,791,175			5,037,068
Securities available-for-sale, at fair value	40,900,127			44,652,837
Loans receivable	59,356,861			61,063,501
Allowance for loan losses	(516,319		)	(487,114		)
Loans receivable, net	58,840,542			60,576,387
Federal Home Loan Bank (FHLB) stock, at cost	243,400			354,800
Bankers' Bank stock, at cost	147,500			147,500
Office property and equipment, net	3,829,949			4,041,525
Deferred taxes on income	834,083			934,579
Income taxes receivable	52,020			60,839
Accrued interest receivable	405,920			422,949
Goodwill	55,148			55,148
Bank-owned life insurance	3,114,479			3,021,501
Prepaid expenses and other assets	1,297,108			1,319,636
Total assets	$	119,397,545		$	123,647,347
Liabilities and Stockholders' Equity
Deposits	$	85,402,719		$	87,089,680
FHLB advances	2,500,000			5,500,000
Advance payments by borrowers for taxes and insurance	813,699			492,133
Accrued interest payable	93,681			3,196
Accrued expenses and other liabilities	1,615,949			1,715,358
Total liabilities	90,426,048			94,800,367
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; issued none	—			—
Common stock, $0.01 par value. Authorized 30,000,000 shares; 2,561,542 issued and outstanding at September 30, 2017 and December 31, 2016	25,615			25,615
Additional paid-in capital	14,201,795			14,201,795
Retained earnings, substantially restricted	16,152,630			16,354,380
Accumulated other comprehensive income (loss)	(135,275		)	(420,466		)
Unearned ESOP Shares	(1,273,268		)	(1,314,344		)
Total stockholders' equity	28,971,497			28,846,980
Total liabilities and stockholders' equity	$	119,397,545		$	123,647,347

See notes to consolidated financial statements.

1

WCF Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Interest income:
Loans receivable	$	718,780		$	735,492	$	2,166,925		$	2,183,032
Investment securities - taxable	136,758			103,028		442,207			274,187
Investment securities - tax exempt	67,508			89,981		210,853			301,433
Other interest earning assets	27,338			33,182		69,166			69,604
Total interest income	950,384			961,683		2,889,151			2,828,256
Interest expense:
Deposits	144,803			142,548		442,907			432,284
FHLB advances	9,562			15,647		39,660			54,045
Total interest expense	154,365			158,195		482,567			486,329
Net interest income	796,019			803,488		2,406,584			2,341,927
Provision for losses on loans	18,000			—		54,000			20,000
Net interest income after provision for losses on loans	778,019			803,488		2,352,584			2,321,927
Noninterest income:
Fees and service charges	115,125			102,103		331,894			286,301
Gains on sale of securities available-for-sale, net	—			99,853		—			115,100
Increase in cash value - bank-owned life insurance	25,891			—		92,978			—
Other income	19,596			26,582		56,414			44,077
Total noninterest income	160,612			228,538		481,286			445,478
Noninterest expense:
Compensation, payroll taxes, and employee benefits	393,647			334,542		1,153,577			981,288
Advertising	20,433			20,992		64,767			62,807
Office property and equipment	107,749			136,304		339,152			401,155
Federal insurance premiums	8,771			21,012		25,686			60,083
Data processing services	116,517			122,361		342,651			304,842
Charitable contributions	—			5,946		5,955			5,946
Other real estate expenses, net	11,400			1,956		18,091			4,917
Dues and subscriptions	9,487			10,142		25,881			41,619
Accounting, regulatory and professional fees	149,674			142,664		485,603			362,347
Debit card expenses	1,095			2,987		5,501			19,502
Other expenses	86,320			82,552		269,466			272,886
Total noninterest expense	905,093			881,458		2,736,330			2,517,392
Earnings before taxes on income	33,538			150,568		97,540			250,013
Tax (benefit) expense	(17,896		)	82,100		(60,297		)	33,015
Net income	$	51,434		$	68,468	$	157,837		$	216,998
Basic earnings per common share	$	0.02		$	0.03	$	0.07		$	0.09
Diluted earnings per common share	$	0.02		$	0.03	$	0.07		$	0.09

See notes to consolidated financial statements.

2

WCF Bancorp, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income	$	51,434		$	68,468		$	157,837		$	216,998
Other comprehensive income (loss):
Net change in unrealized gains (losses) on securities	(8,795		)	(152,662		)	451,373			223,178
Reclassification adjustment for net gain realized in net income	—			(99,853		)	—			(115,100		)
Income tax (expense) benefit	3,248			89,471			(166,182		)	(45,391		)
Other comprehensive income (loss)	(5,547		)	(163,044		)	285,191			62,687
Comprehensive income (loss)	$	45,887		$	(94,576	)	$	443,028		$	279,685

See notes to consolidated financial statements.

3

WCF Bancorp, Inc. and Subsidiaries

Consolidated Statements of Changes in Equity

(unaudited)

	Common stock			Additional paid-in capital		Retained earnings			Unearned ESOP shares			Accumulated other comprehensive income (loss)			Treasury stock			Total
Balance at December 31, 2015	$	433,448		$	9,633,893	$	16,635,039		$	—		$	93,177		$	(12,212,415	)	$	14,583,142
Net income	—			—		216,998			—			—			—			216,998
Other comprehensive income	—			—		—			—			62,687			—			62,687
Stock offering costs	(407,816		)	4,562,341		—			(1,369,104		)	—			12,212,415			14,997,836
Dividends paid on common stock, $0.10 per common share	—			—		(279,109		)	—			—			—			(279,109		)
Balance at September 30, 2016	$	25,632		$	14,196,234	$	16,572,928		$	(1,369,104	)	$	155,864		$	—		$	29,581,554
Balance at December 31, 2016	$	25,615		$	14,201,795	$	16,354,380		$	(1,314,344	)	$	(420,466	)	$	—		$	28,846,980
Net income	—			—		157,837			—			—			—			157,837
Other comprehensive income	—			—		—			—			285,191			—			285,191
Release of ESOP Shares	—			—		—			41,076			—			—			41,076
Dividends paid on common stock, $0.15 per common share	—			—		(359,587		)	—			—			—			(359,587		)
Balance at September 30, 2017	$	25,615		$	14,201,795	$	16,152,630		$	(1,273,268	)	$	(135,275	)	$	—		$	28,971,497

See notes to the consolidated financial statements.

4

WCF Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

	Nine Months Ended September 30,
	2017			2016
Cash flows from operating activities:
Net income	$	157,837		$	216,998
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	627,183			599,913
Provision for losses on loans	54,000			20,000
ESOP expenses	41,076			—
Deferred taxes on income	(65,687		)	(116,712		)
Gain on sales of securities	—			(115,100		)
Gain on sales of one-to-four family residential loans	(11,560		)	(12,310		)
Proceeds from sales of one-to-four family residential loans	861,560			1,189,200
Originations of one-to-four family residential loans	(850,300		)	(1,176,890		)
Gain on sale of other real estate owned	(9,995		)	—
Increase in cash value of bank-owned life insurance	(92,978		)	—
Change in:
Accrued interest receivable	17,029			(15,962		)
Prepaid expenses and other assets	20,206			(137,653		)
Advance payments by borrowers for taxes and insurance	321,566			(213,948		)
Accrued interest payable	90,485			82,905
Accrued expenses and other liabilities	(99,409		)	2,125,621
Income tax receivable	8,819			(34,457		)
Net cash provided by (used in) operating activities	1,069,832			2,411,605
Cash flows from investing activities:
Proceeds from maturity of time deposits in other financial institutions	5,398,893			3,315,111
Purchase of time deposits in other financial institutions	(5,153,000		)	(5,406,168		)
Proceeds from calls and maturities of investment securities available-for-sale	5,920,463			3,988,949
Proceeds from sale of investment securities available-for-sale	—			12,083,059
Purchase of investment securities available-for-sale	(2,127,431		)	(23,855,716		)
Net change in loans receivable	1,694,462			(1,968,750		)
Net change in FHLB stock	111,400			157,900
Purchase of office property and equipment	(4,555		)	(79,108		)
Net cash provided by (used in) investing activities	5,840,232			(11,764,723		)
Cash flows from financing activities:
Net change in deposits	(1,686,961		)	(1,856,774		)
Net change in FHLB advances	(3,000,000		)	(4,000,000		)
Stock sale proceeds	—			15,744,744
Merger of WCF MHC into WCF Bancorp, Inc.	—			862,549
Dividends paid	(359,587		)	(279,109		)
Stock offering costs	—			(1,609,457		)
Net cash provided by (used in) financing activities	(5,046,548		)	8,861,953
Net increase (decrease) in cash and cash equivalents	1,863,516			(491,165		)
Cash and cash equivalents at beginning of year	3,022,578			8,866,561
Cash and cash equivalents at end of quarter	$	4,886,094		$	8,375,396
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	392,082		$	245,229
Taxes on income	—			116,726
Noncash investing activities:
Transfers to other real estate owned from loans	60,778			49,500
Loans to finance the sale of other real estate owned	73,095			—

See notes to consolidated financial statements.

5

WCF Bancorp, Inc. and Subsidiaries

Form 10-Q

Notes to Consolidated Financial Statements (unaudited)

(1) Basis of Presentation

The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (the Company), and its wholly owned subsidiary WCF Financial Bank (the Bank), and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with Securities and Exchange Commission (SEC) rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2016. The consolidated balance sheet of the Company as of December 31, 2016 has been derived from the audited consolidated balance sheet of the Company as of that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year.

In preparing the 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. For further information with respect to significant accounting policies followed by the Company in preparation of the financial statements, refer to the Company’s annual report for the year ended December 31, 2016.

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 September 30, 2017, there is no significant difference in the comparability of the financial statements as a result of this extended transition period.

The Bank is a federally chartered stock savings 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 Federal Deposit Insurance Corporation (FDIC).

Organization and Business

WCF Bancorp, Inc. (the Company) is an Iowa-chartered corporation organized in 2016 to be the successor to Webster City Federal Bancorp, a federal corporation (Old Bancorp) upon completion of the second-step conversion of WCF Financial M.H.C. from the mutual holding company to the stock holding company form of organization. WCF Financial M.H.C. (the MHC) was the former mutual holding company for Old Bancorp prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of the MHC and Old Bancorp ceased to exist. The second-step conversion was completed on July 13, 2016 at which time the Company sold 2,139,231 shares of its common stock (including 171,138 shares purchased by the Bank's employee stock ownership plan, or ESOP) at $8.00 per share for gross proceeds of approximately $17.1 million. Expenses related to the

6

stock offering totaled $1.7 million and were netted against proceeds. As a part of the second-step conversion, each of the outstanding shares of common stock of Old Bancorp held by persons other than the MHC were converted into 0.8115 shares of Company common stock with cash paid in lieu of fractional shares. As a result, a total of 2,561,542 shares were issues in the second-step conversion. As a result of the second-step conversion, all share and per share information has subsequently been revised to reflect the 0.8115 exchange ratio unless otherwise noted.

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 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, we also originate consumer loans and non owner-occupied one-to-four family residential real estate loans. On a limited basis we have also originated commercial real estate loans, but have deemphasized the origination, and intend to continue to deemphasize the origination, of this type of lending. We also invest in investment securities. Our primary lending area is broader than our primary deposit market area and includes north central and northeastern Iowa. Our revenues are derived principally from interest on loans and securities, and from loan origination and servicing fees. Our primary sources of funds are deposits, principal and interest payments on loans and securities and advances from the FHLB. As a federal savings bank, WCF Financial Bank is subject to comprehensive regulation and examination by the Office of the Comptroller of the Currency (the OCC). As a savings and loan 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).

The primary business of WCF Financial Service Corp (the Service Corp) 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.

Investment Securities

Investment 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 has no 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. 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 by 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.

7

Net realized gains or losses are shown in the consolidated statements of income in the noninterest income line using the specific identification method. There were no net realized gains for the three months ended September 30, 2017 and $99,853 of net realized gains for the three months ended September 30, 2016. There were no net realized gains for the nine months endedSeptember 30, 2017 and $115,100 of net realized gains for the nine months endedSeptember 30, 2016.

Loans Receivable, Net

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.

Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms.  Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year.  Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. 

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.

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.

8

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 September 30, 2017 and December 31, 2016, capital levels exceeded minimum capital requirements (see note 6).

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. 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 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 nine months ended September 30, 2017 and 2016 is presented below.

	As of and For the
	Nine Months Ended September 30,
	2017		2016
Current assets	$	89,759	$	162,802
Long-term assets	1,695,397		1,750,950
Current liabilities	29,746		57,880
Total equity	1,755,410		1,855,872
Total revenue	685,085		709,963
Net income	116,469		215,450

Earnings per Common Share

The calculation of earnings per common share and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 is presented below.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	51,434	$	68,468	$	157,837	$	216,998
Weighted average common shares outstanding and diluted common shares outstanding (1)	2,404,096		2,435,221		2,404,096		2,435,221
Basic earnings per common share	$	0.02	$	0.03	$	0.07	$	0.09
Diluted earnings per common share	$	0.02	$	0.03	$	0.07	$	0.09
(1) Share and per share amounts related to periods prior to the date of completion of the Conversion (July 13, 2016) have been restated to give retroactive recognition to the exchange ratio applied to the Conversion (0.8115 to one)
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 and included for the purposes of computing basic and diluted earnings per share.

9

Employee Stock Ownership Plan

The Company established the 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 Prime Rate published in The Wall Street Journal, to be repaid on prorata 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 will be released annually from the suspense account and the released shares will be allocated to the 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 and the shares will be 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 September 30, 2017 there were 6,845 allocated shares and 164,293 unallocated shares.   The fair value of unallocated ESOP shares at September 30, 2017 was approximately $1,569,000.

Subsequent Events

On October 27, 2017, the board of directors declared a $0.05 per share cash dividend payable on November 22, 2017 to shareholders of record as of November 7, 2017.

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 or 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 entities 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

10

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 March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements.

(2) Securities Available-for-Sale

Securities available-for-sale at September 30, 2017 and December 31, 2016 were as follows:

Description	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
September 30, 2017:
U.S. agency securities	$	249,760	$	—	$	5,172	$	244,588
Mortgage-backed securities*	28,929,146		6,751		344,499		28,591,398
Municipal bonds	11,936,473		180,428		52,760		12,064,141
	$	41,115,379	$	187,179	$	402,431	$	40,900,127
December 31, 2016:
U.S. agency securities	$	249,667	$	—	$	6,602	$	243,065
Mortgage-backed securities*	31,884,681		3,206		491,081		31,396,806
Municipal bonds	12,685,114		68,278		239,306		12,514,086
Corporate bonds	500,000		—		1,120		498,880
	$	45,319,462	$	71,484	$	738,109	$	44,652,837

*All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans.

The amortized cost and estimated fair value of securities available-for-sale at September 30, 2017 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.

	September 30, 2017
	Amortized cost		Fair value
Due in one year or less	$	200,000	$	200,210
Due after one year through five years	1,998,394		2,021,124
Due after five years, but less than ten years	6,361,390		6,496,823
Due after ten years	3,626,449		3,590,572
	12,186,233		12,308,729
Mortgage-backed securities	28,929,146		28,591,398
	$	41,115,379	$	40,900,127

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The details of the sales of investment securities for the three and nine months ended September 30, 2017 and 2016 are summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Proceeds from sales	$	—	$	4,791,663	$	—	$	12,083,059
Gross gains on sales	—		109,062		—		159,262
Gross losses on sales	—		9,209		—		44,162

At September 30, 2017 and December 31, 2016, accrued interest receivable for securities available-for-sale totaled $198,486 and $196,227, 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 September 30, 2017 and December 31, 2016.

	September 30, 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	$	—	$	—	$	244,589	$	5,172	$	244,589	$	5,172
Mortgage-backed securities	16,977,703		193,348		9,094,355		151,151		26,072,058		344,499
Municipal bonds	1,600,601		24,120		1,479,162		28,640		3,079,763		52,760
Total	$	18,578,304	$	217,468	$	10,818,106	$	184,963	$	29,396,410	$	402,431
	December 31, 2016
	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	$	243,065	$	6,602	$	—	$	—	$	243,065	$	6,602
Mortgage-backed securities	23,646,101		404,287		5,401,593		86,794		29,047,694		491,081
Municipal bonds	8,798,581		239,306		—		—		8,798,581		239,306
Corporate bonds	498,880		1,120		—		—		498,880		1,120
Total	$	33,186,627	$	651,315	$	5,401,593	$	86,794	$	38,588,220	$	738,109

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.

The Company does not intend to sell its available-for-sale investment securities and it is not likely 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

12

expectation that they will continue to do so, and management’s intent 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 September 30, 2017 and December 31, 2016.

(3) Loans Receivable

At September 30, 2017 and December 31, 2016, loans receivable consisted of the following segments:

	September 30, 2017			December 31, 2016
Loans:
One-to-four family residential	$	46,290,029		$	47,315,025
Non-owner occupied one-to-four family residential	2,898,603			3,650,171
Commercial real estate	3,858,437			3,596,717
Consumer	6,376,336			6,604,757
Total loans receivable	59,423,405			61,166,670
Discounts on loans purchased	(35,557		)	(56,707		)
Deferred loan costs (fees)	(30,987		)	(46,462		)
Allowance for loan losses	(516,319		)	(487,114		)
	$	58,840,542		$	60,576,387

Accrued interest receivable on loans receivable was $207,434 and $226,722 at September 30, 2017 and December 31, 2016, respectively.

The loan portfolio included approximately $41.0 million of fixed rate loans as of September 30, 2017 and $43.1 million as of December 31, 2016. The loan portfolio also included approximately $18.4 million and $18.1 million of variable rate loans as of September 30, 2017 and December 31, 2016, 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.

13

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 September 30, 2017 and December 31, 2016.

	September 30, 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	347,656		25,152		40,091		103,420		516,319
Total	$	347,656	$	25,152	$	40,091	$	103,420	$	516,319
Loans receivable:
Individually evaluated for impairment	$	—	$	—	$	285,038	$	—	$	285,038
Collectively evaluated for impairment	46,290,029		2,898,603		3,573,399		6,376,336		59,138,367
Total	$	46,290,029	$	2,898,603	$	3,858,437	$	6,376,336	$	59,423,405
	December 31, 2016
	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	319,849		28,231		37,135		101,899		487,114
Total	$	319,849	$	28,231	$	37,135	$	101,899	$	487,114
Loans receivable:
Individually evaluated for impairment	$	—	$	—	$	297,538	$	—	$	297,538
Collectively evaluated for impairment	47,315,025		3,650,171		3,299,179		6,604,757		60,869,132
Total	$	47,315,025	$	3,650,171	$	3,596,717	$	6,604,757	$	61,166,670

14

Activity in the allowance for loan losses by segment for the three and nine months ended September 30, 2017 and 2016 is summarized in the following tables:

	Three months ended September 30, 2017
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	326,526	$	—	$	—	$	21,130			$	347,656
Non-owner occupied one-to-four family residential	30,350		—		—		(5,198		)	*	25,152
Commercial real estate	38,453		—		—		1,638				40,091
Consumer	103,121		131		—		430				103,420
Total	$	498,450	$	131	$	—	$	18,000			$	516,319
	Three months ended September 30, 2016
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	367,057	$	—	$	—	$	(50,444	)	*	$	316,613
Non-owner occupied one-to-four family residential	31,963		—		—		(2,488		)	*	29,475
Commercial real estate	30,309		28,730		—		31,728				33,307
Consumer	86,926		13,342		—		21,204				94,788
Total	$	516,255	$	42,072	$	—	$	—			$	474,183

	Nine Months Ended September 30, 2017
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	319,849	$	10,945	$	133	$	38,619			$	347,656
Non-owner occupied one-to-four family residential	28,231		—		—		(3,079		)		25,152
Commercial real estate	37,135		—		—		2,956				40,091
Consumer	101,899		14,054		71		15,504				103,420
Total	$	487,114	$	24,999	$	204	$	54,000			$	516,319
	Nine Months Ended September 30, 2016
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	366,858	$	5,610	$	—	$	(44,635	)	*	$	316,613
Non-owner occupied one-to-four family residential	44,510		—		—		(15,035		)	*	29,475
Commercial real estate	32,443		28,730		—		29,594				33,307
Consumer	61,367		16,955		300		50,076				94,788
Total	$	505,178	$	51,295	$	300	$	20,000			$	474,183

* 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.

15

(a) Loan Portfolio Segment Risk Characteristics

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 30 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 30 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 and does not intend to emphasize these types of loans in the future. 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.

(b) Charge‑off Policy

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.

(c) Troubled Debt Restructurings (TDR)

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 new troubled debt restructurings in the first nine months of 2017.

(d) Loans Measured Individually for Impairment

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 1-4 family residential and consumer are collectively evaluated for impairment.

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(e) Loans Measured Collectively 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.

	Pass		Special mention/watch		Substandard		Doubtful		Total
September 30, 2017:
Loans
One-to-four family residential	$	44,327,329	$	1,552,019	$	410,681	$	—	$	46,290,029
Non-owner occupied one-to-four family residential	2,528,979		369,624		—		—		2,898,603
Commercial real estate	3,313,998		257,381		287,058		—		3,858,437
Consumer	6,050,785		304,448		21,103		—		6,376,336
Total	$	56,221,091	$	2,483,472	$	718,842	$	—	$	59,423,405
	Pass		Special mention/watch		Substandard		Doubtful		Total
December 31, 2016:
Loans
One-to-four family residential	$	45,851,480	$	978,513	$	485,032	$	—	$	47,315,025
Non-owner occupied one-to-four family residential	3,299,494		36,298		314,379		—		3,650,171
Commercial real estate	3,009,623		289,556		297,538		—		3,596,717
Consumer	6,324,360		270,478		9,919		—		6,604,757
Total	$	58,484,957	$	1,574,845	$	1,106,868	$	—	$	61,166,670

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 one impaired loan as of September 30, 2017 and December 31, 2016. No interest income was recorded on impaired loans during 2017 or 2016.

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(f) Nonaccrual and Delinquent Loans

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).

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 day’s and 60‑89 day’s 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 September 30, 2017 and December 31, 2016.

	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
September 30, 2017:
Loans
One-to-four family residential	$	676,500	$	323,229	$	378,851	$	1,378,580	$	44,911,449	$	46,290,029	$	228,226
Non-owner occupied one-to-four family residential	177,538		—		—		177,538		2,721,065		2,898,603		—
Commercial real estate	—		—		287,058		287,058		3,571,379		3,858,437		—
Consumer	214,092		46,200		6,103		266,395		6,109,941		6,376,336		6,103
Total	$	1,068,130	$	369,429	$	672,012	$	2,109,571	$	57,313,834	$	59,423,405	$	234,329
	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, 2016:
Loans
One-to-four family residential	$	706,135	$	272,378	$	258,009	$	1,236,522	$	46,078,503	$	47,315,025	$	193,251
Non-owner occupied one-to-four family residential	—		36,298		56,639		92,937		3,557,234		3,650,171		56,639
Commercial real estate	27,143		—		297,538		324,681		3,272,036		3,596,717		—
Consumer	190,455		80,023		1,365		271,843		6,332,914		6,604,757		1,365
Total	$	923,733	$	388,699	$	613,551	$	1,925,983	$	59,240,687	$	61,166,670	$	251,255

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The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of September 30, 2017 and December 31, 2016.

	September 30, 2017		December 31, 2016
Loans
One-to-four family residential	$	150,625	$	291,779
Non-owner occupied one-to-four family residential	—		314,380
Commercial real estate	287,058		297,538
Consumer	—		8,554
Total	$	437,683	$	912,251

(4) Deposits

At September 30, 2017 and December 31, 2016, deposits are summarized as follows:

	September 30, 2017		December 31, 2016
Statement savings	$	14,529,038	$	12,031,554
Money market plus	11,975,410		11,169,038
NOW	18,382,024		18,489,727
Certificates of deposit	40,516,247		45,399,361
	$	85,402,719	$	87,089,680

Included in the NOW accounts were approximately $4.7 million and $4.8 million of non-interest bearing deposits as of September 30, 2017 and December 31, 2016, respectively.

(5) Taxes on Income

Taxes on income comprise the following:

	September 30, 2017
	Federal			State			Total
Current	$	(310	)	$	5,700		$	5,390
Deferred	(64,687		)	(1,000		)	(65,687		)
	$	(64,997	)	$	4,700		$	(60,297	)
	September 30, 2016
	Federal			State			Total
Current	$	24,747		$	11,268		$	36,015
Deferred	(11,000		)	8,000			(3,000		)
	$	13,747		$	19,268		$	33,015

Taxes on income differ from the amounts computed by applying the federal income tax rate of 34% to earnings before taxes on income for the following reasons, expressed in dollars:

19

	September 30, 2017			September 30, 2016
Federal tax at statutory rate	$	33,164		$	85,004
Items affecting federal income tax rate:
State taxes on income, net of federal benefit	3,102			12,717
Tax-exempt income	(64,366		)	(94,458		)
Bank-owned life insurance	(31,613		)	—
Valuation allowance	15,000			—
Other	(15,584		)	29,752
	$	(60,297	)	$	33,015

Federal income tax expense for the periods ended September 30, 2017 and December 31, 2016 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 September 30, 2017 and December 31, 2016 are presented below:

	September 30, 2017			December 31, 2016
Deferred tax assets:
Deferred directors’ fees	$	322,000		$	338,000
Allowance for loan losses	193,000			182,000
Net operating loss carryforward	186,000			138,000
AMT credit	44,924			35,000
Charitable contribution	88,000			86,000
Professional fees	76,000			77,000
Securities available-for-sale	79,977			246,159
Fixed assets	29,000			—
Other	19,182			28,420
Gross deferred tax assets	1,038,083			1,130,579
Valuation allowance	(121,000		)	(106,000		)
Net deferred tax assets	917,083			1,024,579
Deferred tax liabilities:
Prepaid expenses	(21,000		)	(21,000		)
FHLB stock dividends	(38,000		)	(38,000		)
Fixed assets	—			(6,000		)
Intangible assets	(24,000		)	(25,000		)
Gross deferred tax liabilities	(83,000		)	(90,000		)
Net deferred tax assets	$	834,083		$	934,579

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 September 30, 2017 and December 31, 2016, related to the charitable contribution carryforward and Iowa corporate net operating loss carryovers. The charitable contribution expires if not used by 2020.

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As of December 31, 2016, 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 September 30, 2017 and December 31, 2016, retained earnings contain certain historical additions to bad debt reserves for income tax purposes of approximately $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 $800,000.

(6) Stockholders’ Equity

(a) Common Stock Repurchase

The Company repurchased no shares during the three and nine months ended September 30, 2017 and 2016.

(b) Regulatory Capital Requirements

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 September 30, 2017 and December 31, 2016.

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The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of September 30, 2017 and December 31, 2016 (dollars in thousands).

	September 30, 2017
					For capital adequacy				To be well-capitalized
					with capital conservation				under prompt corrective
	Actual				buffer purposes				action provisions
	Amount		Percent		Amount		Percent		Amount		Percent
Tangible capital:
Consolidated	$	29,022	23.50	%	$	4,946	4.00	%	N/A		N/A
WCF Financial Bank	19,264		16.40		4,702		4.00		$	5,877	5.00	%
Common equity tier 1:
Consolidated	29,022		57.40		2,909		5.75		3,288		6.50
WCF Financial Bank	19,264		39.30		2,815		5.75		3,182		6.50
Risk-based capital:
Consolidated	29,538		58.40		4,679		9.25		5,059		10.00
WCF Financial Bank	19,780		40.40		4,529		9.25		4,896		10.00
Tier 1 risk-based capital:
Consolidated	29,022		57.40		3,668		7.25		4,047		8.00
WCF Financial Bank	19,264		39.30		3,550		7.25		3,917		8.00

	December 31, 2016
									To be well-capitalized
					For capital adequacy				under prompt corrective
	Actual				purposes				action provisions
	Amount		Percent		Amount		Percent		Amount		Percent
Tangible capital:
Consolidated	$	29,192	24.30	%	$	4,812	4.00	%	N/A		N/A
WCF Financial Bank	18,993		16.00		4,753		4.00		$	5,941	5.00	%
Common equity tier 1:
Consolidated	29,192		55.30		2,706		5.13		3,432		6.50
WCF Financial Bank	18,993		36.80		2,648		5.13		3,359		6.50
Risk-based capital:
Consolidated	29,679		56.20		4,554		8.63		5,280		10.00
WCF Financial Bank	19,480		37.70		4,457		8.63		5,167		10.00
Tier 1 risk-based capital:
Consolidated	29,192		55.30		3,498		6.63		4,224		8.00
WCF Financial Bank	18,993		36.80		3,423		6.63		4,134		8.00

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In July 2013, the Federal Reserve Board and the OCC 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 September 30, 2017, the ratios for the Company and WCF Financial Bank were sufficient to meet the fully phased-in conservation buffer.

(c) Dividends and Restrictions Thereon

The Company declared and paid a $0.05 dividend in each of the first three quarters ended September 30, 2017. In the first quarter of 2016, the Company declared and paid a $0.06 dividend, did not declare or pay a dividend during the second quarter of 2016, and declared and paid a $0.05 dividend in the third quarter of 2016. Per share amounts related to periods prior to the date of completion of the Conversion (July 13, 2016) have been restated to give retroactive recognition to the exchange ratio applied to the Conversion (0.8115 to one).

Federal regulations impose certain limitations on the payment of dividends and other capital distributions by the Bank. Under the regulations, a savings institution, such as the Bank, that will meet the fully phased‑in capital requirements (as defined by the OCC regulations) subsequent to a capital distribution is generally permitted to make such capital distribution without OCC approval so long as they have not been notified of the need for more than normal supervision by the OCC. The Bank has not been so notified and, therefore, may make capital distributions during the calendar year equal to net income plus 50% of the amount by which the Bank’s capital exceeds the fully phased‑in capital requirement as measured at the beginning of the calendar year. A savings institution with total capital in excess of current minimum capital requirements but not in excess of the fully phased‑in requirements is permitted by the new regulations to make, without OCC approval, capital distributions of between 25% and 75% of its net income for the previous four quarters, less dividends already paid for such period. A savings institution that fails to meet current minimum capital requirements is prohibited from making any capital distributions without prior approval from the OCC.

(7) 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 or 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

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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:

• 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.

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.

• 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.

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• FHLB and Bankers’ Bank stock. The value of FHLB and Bankers’ Bank 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.

The following tables summarize financial assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, 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 in the consolidated balance sheets.

	September 30, 2017
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
U.S. agency securities	$	—	$	244,588	$	—	$	244,588
Mortgage-backed securities	—		28,591,398		—		28,591,398
Municipal bonds	—		12,064,141		—		12,064,141
Total	$	—	$	40,900,127	$	—	$	40,900,127

	December 31, 2016
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
U.S. agency securities	$	—	$	243,065	$	—	$	243,065
Mortgage-backed securities	—		31,396,806		—		31,396,806
Municipal bonds	—		12,514,086		—		12,514,086
Corporate bonds	—		498,880		—		498,880
Total	$	—	$	44,652,837	$	—	$	44,652,837

There have been no changes in valuation methodologies at September 30, 2017 compared to December 31, 2016 and there were no transfers between levels during the periods ended September 30, 2017 and December 31, 2016.

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 September 30, 2017 and December 31, 2016, the Company did not have any material assets measured at fair value on a nonrecurring basis.

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The estimated fair values of Company’s financial instruments (as described in note 1) at September 30, 2017 and December 31, 2016 were as follows:

		September 30, 2017				December 31, 2016
	Fair value	Carrying		Approximate		Carrying		Approximate
	hierarchy	amount		fair value		amount		fair value
Financial assets:
Cash and due from banks	Level 1	$	4,171,094	$	4,171,094	$	1,716,578	$	1,716,578
Federal funds sold	Level 1	715,000		715,000		1,306,000		1,306,000
Time deposits in other
financial institutions	Level 1	4,791,175		4,791,175		5,037,068		5,037,068
Securities available-for-sale	See previous table	40,900,127		40,900,127		44,652,837		44,652,837
Loans receivable, net	Level 2 (1)	58,840,542		59,472,542		60,576,387		61,896,952
FHLB stock	Level 1	243,400		243,400		354,800		354,800
Bankers’ Bank stock	Level 1	147,500		147,500		147,500		147,500
Accrued interest receivable	Level 1	405,920		405,920		422,949		422,949
Financial liabilities:
Deposits	Level 2	85,402,719		80,589,197		87,089,680		83,357,680
FHLB advances	Level 2	2,500,000		2,500,000		5,500,000		5,504,950
Accrued interest payable	Level 1	93,681		93,681		3,196		3,196

(1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures.

(8) 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 approximately $297,000 and $360,000 as of September 30, 2017 and December 31, 2016, respectively. These commitments expire one year from origination and are both fixed and adjustable interest rates ranging from 3.25% to 5.50%.

(9)Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) components at September 30, 2017 and December 31, 2016 were as follows:

	September 30, 2017			December 31, 2016
Unrealized holding (losses) gains on securities available-for-sale	$	(215,252	)	$	(666,625	)
Tax impact	79,977			246,159
	$	(135,275	)	$	(420,466	)

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

General

Management’s discussion and analysis of the financial condition at September 30, 2017 and the results of operations for three and nine months ended September 30, 2017 and 2016 is intended to assist in understanding the financial condition and results of operations of the Bank. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto, appearing on Part I, Item 1 of this quarterly report on Form 10-Q.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and words of similar meaning. These forward-looking statements include, but are not limited to:

• 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.

These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

• general economic conditions, either nationally or in our market areas, that are worse than expected;

• changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses;

• our ability to access cost-effective funding;

• fluctuations in real estate values and both residential and commercial real estate market conditions;

• demand for loans and deposits in our market area;

• our ability to implement and change our business strategies;

• competition with depository and other financial institutions;

• inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments, our level of loan originations, or increases in the level of defaults, losses and prepayments on loans we have made and make;

• adverse changes in the securities markets;

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• changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of Basel III;

• the impact of the Dodd-Frank Act and the implementing regulations;

• changes in the quality or composition of our loan or investment portfolios;

• technological changes that may be more difficult or expensive than expected;

• the inability of third-party providers to perform as expected;

• our ability to manage market risk, credit risk and operational risk in the current economic environment;

• our ability to enter new markets successfully and capitalize on growth opportunities;

• our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto;

• changes in consumer spending, borrowing and savings habits;

• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;

• our ability to retain key employees;

• adverse changes in the national agriculture economy and the agriculture economy in our market area;

• our compensation expense associated with equity allocated or awarded to our employees; and

• changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

Critical Accounting Policies

There are no material changes to the critical accounting policies disclosed in our annual report on Form 10-K as filed with the Securities and Exchange Commission on March 24, 2017.

Comparison of Financial Condition at September 30, 2017 and December 31, 2016

Total assets decreased $4.2 million, or 3.4%, to $119.4 million at September 30, 2017 from $123.6 million at December 31, 2016. The decrease resulted primarily from decreases in securities available-for-sale and loans, offset in part by an increase in cash and cash equivalents. Investment securities available-for-sale decreased $3.8 million, or 8.5%, to $40.9 million at September 30, 2017 from $44.7 million at December 31, 2016. The decrease in investment securities available-for-sale was due to the calling of securities and the paydown of principal on mortgage-backed securities. Net loans receivable decreased $1.7 million, or 2.8%, to $58.8 million at September 30, 2017 from $60.6 million at December 31, 2016. The

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decrease in net loans receivable was due to an decrease in one-to-four family residential, non-owner occupied 1-4 family residential, and consumer loans. Cash and due from banks increased $2.5 million, or 143.0%, to $4.2 million at September 30, 2017 compared to $1.7 million at December 31, 2016.

Total liabilities decreased $4.4 million, or 4.6%, to $90.4 million at September 30, 2017 from $94.8 million at December 31, 2016. The decrease in liabilities was mainly due to decreases in deposits and FHLB advances. Deposits decreased due to changes in local competition and investments of parent company funds outside the bank to increase returns on assets. Deposits decreased $1.7 million, or 1.9%, to $85.4 million at September 30, 2017 compared to $87.1 million at December 31, 2016. FHLB advances decreased $3.0 million, or 54.5%, to $2.5 million at September 30, 2017 compared to $5.5 million at December 31, 2016.

Stockholders' equity remained unchanged at $29.0 million at September 30, 2017 and December 31, 2016. Stockholders' equity includes approximately $158,000 of net income during the nine months ended September 30, 2017, an approximate $285,000 increase in market value of securities available-for-sale, net of income taxes, and approximately $41,000 increase in the anticipated release of ESOP shares, offset by approximately $360,000 in aggregate dividends paid on common stock during the first three quarters.

Comparison of Results of Operations for the Three Months Ended September 30, 2017 and 2016

Net income decreased approximately $17,000, or 25.0%, to approximately $51,000 for the three months ended September 30, 2017, from approximately $68,000 for the same period in 2016. Basic/diluted earnings per share were $0.02 and $0.03 for the three months ended September 30, 2017 and 2016, respectively. Total interest income decreased approximately $11,000, or 1.1%, to approximately $950,000 for the 2017 quarter, compared to approximately $962,000 for the 2016 quarter. The decrease in total interest income was primarily attributable to decreases in interest in loans receivable and tax exempt investment securities. Total interest expense decreased approximately $4,000, or 2.5%, to $154,000 for the three months ended September 30, 2017 compared to $158,000 for the three months ended September 30, 2016. This decrease was due to the paying off of FHLB advances.

Each quarter an analysis of allowance factors is completed. Based on these factors, $18,000 in provision for loan losses was recorded for the quarter ended September 30, 2017 compared to no provision for the quarter ended September 30, 2016. The allowance for loan losses reflects the estimate believed to be appropriate to cover incurred probable losses which were inherent in the loan portfolio at September 30, 2017. While we believe the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact the financial condition and results of operations.

Net interest income after provision for losses on loans decreased approximately $25,000, or 3.1%, to approximately $778,000 for the three months ended September 30, 2017 from approximately $803,000 for the three months ended September 30, 2016.

Noninterest income decreased approximately $68,000, or 29.7%, to approximately $161,000 for the three months ended September 30, 2017 from approximately $229,000 for the same period in 2016. The decrease was due to a decrease in gains on sale of securities available-for-sale, net and other income offset by an increase in fees and service charges and an increase in cash value of bank-owned life insurance. There were no gains on securities available-for-sale, net for the three months ended September 30, 2017 compared to $100,000 for the three months ended September 30, 2016. Other income decreased approximately $7,000, or 25.9%, to approximately $20,000 for the three months ended September 30, 2017 from approximately $27,000 for the same period in 2016. This decrease was mainly due to the sale of credit life and disability insurance on loans. Fees and service charges increased approximately $13,000, or 12.7%, to approximat

29

ely$115,000 for the three months ended September 30, 2017 compared to approximately $102,000 for the quarter ended September 30, 2016. This increase was due to the evaluation of our fee structure and modifications of fee amounts. The increase in cash value of bank-owned life insurance of approximately $26,000 for the three months ended September 30, 2017 compared to no cash value for the quarter ended September 30, 2016 was due to the purchase of bank-owned life insurance late in 2016.

Noninterest expense consists primarily of compensation and employee benefits, office property and equipment, data processing services, federal insurance premiums, charitable contributions and accounting, regulatory, and professional fees. During the three months ended September 30, 2017, noninterest expense increased approximately $24,000, or 2.7%, to approximately $905,000 compared to approximately$881,000, for the same three month period in 2016. Compensation and employee benefits increased approximately $59,000, or 17.6%, to approximately $394,000 for the three months ended September 30, 2017 compared to approximately $335,000 for the three months ended September 30, 2016 due to the recording of ESOP compensation expenses for the anticipated release of shares, the dividends paid to the unreleased ESOP shares, and the payment of accrued benefits due to changes in staffing. Office property and equipment decreased approximately $29,000, or 21.3%, to approximately $108,000for the three months ended September 30, 2017 compared to approximately$136,000 for the quarter ended September 30, 2016 due to decreases in depreciation expense. Data processing services decreased approximately $6,000, or 4.9%, to approximately $117,000 for the three months ended September 30, 2017 compared to approximately $122,000 for the three month period ended September 30, 2016. This decrease was due to additional services provided by our data processor in 2016. Federal insurance premiums decreased approximately $12,000, or 57.1%, to approximately $9,000 during the three months ended September 30, 2017 compared to approximately $21,000 for the three months ended September 30, 2016, due to the change in calculation of the insurance premiums. Accounting, regulatory and professional fees increased approximately $7,000, or 4.9%, to approximately $150,000 in the third quarter of 2017 compared to approximately $143,000 for the same quarter of 2016, due to additional auditing and legal services.

We recognized an income tax benefit of approximately $18,000 for the three month period ended September 30, 2017 compared to an income tax expense of approximately $82,000 for the 2016 quarter.

Comparison of Results of Operations for the Nine Months Ended September 30, 2017 and 2016

Net income decreased approximately $59,000, or 27.2%, to approximately $158,000 for the nine months ended September 30, 2017, from approximately $217,000 for the same period in 2016. Basic/diluted earnings per share were $0.07 and $0.09 for the nine months ended September 30, 2017 and 2016, respectively. Total interest income increased approximately $61,000, or 2.2%, to approximately $2.89 million for the nine months ended September 30, 2017, compared to approximately $2.83 million for the nine months ended September 30, 2016. The increase in total interest income was mainly from interest earned on mortgage-backed securities. Total interest expense decreased $3,000, or 0.6%, to $483,000 for the nine months ended September 30, 2017 compared to $486,000 for the nine months ended September 30, 2016 due to the paying off of FHLB advances.

Each quarter an analysis of allowance factors is completed. Based on these factors, $54,000 in provision for loan losses was recorded for the nine months ended September 30, 2017 compared to no provision for the nine months ended September 30, 2016. The allowance for loan losses reflects the estimate believed to be appropriate to cover incurred probable losses which were inherent in the loan portfolio at September 30, 2017. While we believe the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact the financial condition and results of operations.

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Net interest income after provision for losses on loans increased approximately $31,000, or 1.3%, to approximately $2.4 million for the nine months ended September 30, 2017, from approximately $2.3 million for the nine months ended September 30, 2016.

Noninterest income increased approximately $36,000, or 8.1%, to approximately $481,000 for the nine months ended September 30, 2017 from approximately $445,000 for the same period in 2016. The increase was due to an increase in fees and service charges, increase in cash value of bank-owned life insurance, and other income offset by no gains from sales of securities available-for-sale for the nine months ended September 30, 2017 compared to approximately $115,000 for the nine months ended September 30, 2016. Fees and service charges increased approximately $46,000, or 16.1%, to approximately $332,000 for the nine months ended September 30, 2017 compared to approximately $286,000 for the nine months ended September 30, 2016. This increase was due to the evaluation of our fee structure and modifications of fee amounts. The increase in cash value of bank-owned life insurance of approximately $93,000 for the nine months ended September 30, 2017 compared to no cash value for the nine months ended September 30, 2016 was due to the purchase of bank-owned life insurance late in 2016. Other income increased approximately $12,000, or 27.3%, to approximately $56,000 for the nine months ended September 30, 2017 from approximately $44,000 other income for the same period in 2016. This increase was mainly due to the profit on the sale of REO property and the sale of credit life and disability insurance on loans.

Noninterest expense consists primarily of compensation and employee benefits, office property and equipment, data processing services, federal insurance premiums, charitable contributions and accounting, regulatory, and professional fees. During the nine months ended September 30, 2017, noninterest expense increased approximately $219,000, or 8.8%, to approximately $2.7 million compared to approximately $2.5 million for the same nine month period in 2016. Compensation and employee benefits increased approximately $172,000, or 17.5%, to approximately $1.2 million for the nine months ended September 30, 2017 compared to approximately $981,000 for the nine months ended September 30, 2016 due to the recording of ESOP compensation expenses for the anticipated release of shares, the dividends paid to the unreleased ESOP shares, and the payment of accrued benefits due to changes in staffing. Office property and equipment decreased approximately $62,000, or 15.5%, to approximately $339,000for the nine months ended September 30, 2017 compared to approximately$401,000 for the nine months ended September 30, 2016 due to decreases in depreciation expense. Data processing services increased approximately $38,000, or 12.5%, to approximately $343,000 for the nine months ended September 30, 2017 compared to approximately $305,000 for the nine months ended September 30, 2016. This increase was due to additional services provided by our data processor. Federal insurance premiums decreased approximately $34,000, or 56.7%, to approximately $26,000 during the nine months ended September 30, 2017 compared to approximately $60,000 for the nine months ended September 30, 2016, due to the change in calculation of the insurance premiums. Accounting, regulatory and professional fees increased approximately $123,000, or 34.0%, to approximately $486,000 in the nine months ended September 30, 2017 compared to approximately $362,000 for the nine months ended September 30, 2016, due to additional auditing and legal services.

We recognized an income tax benefit of approximately $60,000 for the nine months ended September 30, 2017 compared to an income tax expense of approximately $33,000 for the nine months ended September 30, 2016.

Item 3 Quantitative and Qualitative Disclosures About Market Risk

Not applicable, as the Registrant is a smaller reporting company.

Item 4 Controls and Procedures

31

Evaluation of disclosure controls and procedures.

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2017. Based on that evaluation, our management, including the Chief Executive Officer and the Chief Financial Officer, concluded that our disclosure controls and procedures were effective.

Changes in internal controls.

During the quarter ended September 30, 2017, there have been no changes in the Company’s internal

controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

32

Part II – Other Information

Item 1    Legal Proceedings

The Company is subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Bank’s or the Company’s financial condition or results of operations.

Item 1A Risk Factors

Not applicable, as the Registrant is a smaller reporting company.

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

(a) There were no sales of unregistered securities during the period covered by this Report.

(b) Not applicable.

(c) There were no issuer repurchases of securities during the period covered by this Report.

Item 3    Defaults Upon Senior Securities

None.

Item 4 Mine Safety Disclosures

Not applicable.

Item 5    Other Information

None.

Item 6 Exhibits

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

33

SIGNATURES

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

	WCF BANCORP, INC.
Date: November 9, 2017	/s/ Stephen L. Mourlam
	Stephen L. Mourlam
	President and Chief Executive Officer
Date: November 9, 2017	/s/ Kasie L. Doering
	Kasie L. Doering
	Chief Financial Officer

34

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Stephen L. Mourlam, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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: November 9, 2017	/s/ Stephen L. Mourlam
	Stephen L. Mourlam
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kasie L. Doering, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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: November 9, 2017	/s/ Kasie L. Doering
	Kasie L. Doering
	Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Stephen L. Mourlam, President and Chief Executive Officer of WCF Bancorp, Inc., (the “Company”) and Kasie L. Doering, Chief Financial Officer of the Company, each certify in their capacity as an officer of the Company that they have reviewed the quarterly report on Form 10-Q for the quarter ended September 30, 2017 (the “Report”) and that to the best of their knowledge:

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: November 9, 2017	/s/ Stephen L. Mourlam
	Stephen L. Mourlam
	President and Chief Executive Officer
Date: November 9, 2017	/s/ Kasie L. Doering
	Kasie L. Doering
	Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	WCF Bancorp, Inc.
Entity Central Index Key	0001667944
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		2,561,542

XML

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 4,171,094	$ 1,716,578
Federal funds sold	715,000	1,306,000
Cash and cash equivalents	4,886,094	3,022,578
Time deposits in other financial institutions	4,791,175	5,037,068
Securities available-for-sale, at fair value	40,900,127	44,652,837
Loans receivable	59,356,861	61,063,501
Allowance for loan losses	(516,319)	(487,114)
Loans receivable, net	58,840,542	60,576,387
Federal Home Loan Bank (FHLB) stock, at cost	243,400	354,800
Bankers' Bank stock, at cost	147,500	147,500
Office property and equipment, net	3,829,949	4,041,525
Deferred taxes on income	834,083	934,579
Income taxes receivable	52,020	60,839
Accrued interest receivable	405,920	422,949
Goodwill	55,148	55,148
Bank-owned life insurance	3,114,479	3,021,501
Prepaid expenses and other assets	1,297,108	1,319,636
Total assets	119,397,545	123,647,347
Liabilities and Stockholders' Equity
Deposits	85,402,719	87,089,680
FHLB advances	2,500,000	5,500,000
Advance payments by borrowers for taxes and insurance	813,699	492,133
Accrued interest payable	93,681	3,196
Accrued expenses and other liabilities	1,615,949	1,715,358
Total liabilities	90,426,048	94,800,367
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; issued none	0	0
Common stock, $0.01 par value. Authorized 30,000,000 shares; 2,561,542 issued and outstanding at September 30, 2017 and December 31, 2016	25,615	25,615
Additional paid-in capital	14,201,795	14,201,795
Retained earnings, substantially restricted	16,152,630	16,354,380
Accumulated other comprehensive income (loss)	(135,275)	(420,466)
Unearned ESOP Shares	(1,273,268)	(1,314,344)
Total stockholders' equity	28,971,497	28,846,980
Total liabilities and stockholders' equity	$ 119,397,545	$ 123,647,347

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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

XML

Consolidated Statements of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income:
Loans receivable	$ 718,780	$ 735,492	$ 2,166,925	$ 2,183,032
Investment securities - taxable	136,758	103,028	442,207	274,187
Investment securities - tax exempt	67,508	89,981	210,853	301,433
Other interest earning assets	27,338	33,182	69,166	69,604
Total interest income	950,384	961,683	2,889,151	2,828,256
Interest expense:
Deposits	144,803	142,548	442,907	432,284
FHLB advances	9,562	15,647	39,660	54,045
Total interest expense	154,365	158,195	482,567	486,329
Net interest income	796,019	803,488	2,406,584	2,341,927
Provision for losses on loans	18,000	0	54,000	20,000
Net interest income after provision for losses on loans	778,019	803,488	2,352,584	2,321,927
Noninterest income:
Fees and service charges	115,125	102,103	331,894	286,301
Gains on sale of securities available-for-sale, net	0	99,853	0	115,100
Increase in cash value - bank-owned life insurance	25,891	0	92,978	0
Other income	19,596	26,582	56,414	44,077
Total noninterest income	160,612	228,538	481,286	445,478
Noninterest expense:
Compensation, payroll taxes, and employee benefits	393,647	334,542	1,153,577	981,288
Advertising	20,433	20,992	64,767	62,807
Office property and equipment	107,749	136,304	339,152	401,155
Federal insurance premiums	8,771	21,012	25,686	60,083
Data processing services	116,517	122,361	342,651	304,842
Charitable contributions	0	5,946	5,955	5,946
Other real estate expenses, net	11,400	1,956	18,091	4,917
Dues and subscriptions	9,487	10,142	25,881	41,619
Accounting, regulatory and professional fees	149,674	142,664	485,603	362,347
Debit card expenses	1,095	2,987	5,501	19,502
Other expenses	86,320	82,552	269,466	272,886
Total noninterest expense	905,093	881,458	2,736,330	2,517,392
Earnings before taxes on income	33,538	150,568	97,540	250,013
Tax (benefit) expense	(17,896)	82,100	(60,297)	33,015
Net income	$ 51,434	$ 68,468	$ 157,837	$ 216,998
Basic earnings per common share (in usd per share)	$ 0.02	$ 0.03	$ 0.07	$ 0.09
Diluted earnings per common share (in usd per share)	$ 0.02	$ 0.03	$ 0.07	$ 0.09

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 51,434	$ 68,468	$ 157,837	$ 216,998
Other comprehensive income (loss):
Net change in unrealized gains (losses) on securities	(8,795)	(152,662)	451,373	223,178
Reclassification adjustment for net gain realized in net income	0	(99,853)	0	(115,100)
Income tax (expense) benefit	3,248	89,471	(166,182)	(45,391)
Other comprehensive income (loss)	(5,547)	(163,044)	285,191	62,687
Comprehensive income (loss)	$ 45,887	$ (94,576)	$ 443,028	$ 279,685

XML

Consolidated Statements of Changes in Equity - USD ($)	Total	Common stock	Additional paid-in capital	Retained earnings	Unearned ESOP shares	Accumulated other comprehensive income (loss)	Treasury stock
Balance at Dec. 31, 2015	$ 14,583,142	$ 433,448	$ 9,633,893	$ 16,635,039	$ 0	$ 93,177	$ (12,212,415)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	216,998			216,998
Other comprehensive income	62,687					62,687
Stock offering costs	14,997,836	(407,816)	4,562,341		(1,369,104)		12,212,415
Dividends paid on common stock ($0.15 and $0.10 per common share)	(279,109)			(279,109)
Balance at Sep. 30, 2016	29,581,554	25,632	14,196,234	16,572,928	(1,369,104)	155,864	0
Balance at Dec. 31, 2016	28,846,980	25,615	14,201,795	16,354,380	(1,314,344)	(420,466)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	157,837			157,837
Other comprehensive income	285,191					285,191
Release of ESOP Shares	41,076				41,076
Dividends paid on common stock ($0.15 and $0.10 per common share)	(359,587)			(359,587)
Balance at Sep. 30, 2017	$ 28,971,497	$ 25,615	$ 14,201,795	$ 16,152,630	$ (1,273,268)	$ (135,275)	$ 0

XML

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
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	$ 0.06	$ 0.15	$ 0.10

XML

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 157,837	$ 216,998
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	627,183	599,913
Provision for losses on loans	54,000	20,000
ESOP expenses	41,076	0
Deferred taxes on income	(65,687)	(116,712)
Gain on sales of securities	0	(115,100)
Gain on sales of one-to-four family residential loans	(11,560)	(12,310)
Proceeds from sales of one-to-four family residential loans	861,560	1,189,200
Originations of one-to-four family residential loans	(850,300)	(1,176,890)
Gain on sale of other real estate owned	(9,995)	0
Increase in cash value of bank-owned life insurance	(92,978)	0
Change in:
Accrued interest receivable	17,029	(15,962)
Prepaid expenses and other assets	20,206	(137,653)
Advance payments by borrowers for taxes and insurance	321,566	(213,948)
Accrued interest payable	90,485	82,905
Accrued expenses and other liabilities	(99,409)	2,125,621
Income tax receivable	8,819	(34,457)
Net cash provided by (used in) operating activities	1,069,832	2,411,605
Cash flows from investing activities:
Proceeds from maturity of time deposits in other financial institutions	5,398,893	3,315,111
Purchase of time deposits in other financial institutions	(5,153,000)	(5,406,168)
Proceeds from calls and maturities of investment securities available-for-sale	5,920,463	3,988,949
Proceeds from sale of investment securities available-for-sale	0	12,083,059
Purchase of investment securities available-for-sale	(2,127,431)	(23,855,716)
Net change in loans receivable	1,694,462	(1,968,750)
Net change in FHLB stock	111,400	157,900
Purchase of office property and equipment	(4,555)	(79,108)
Net cash provided by (used in) investing activities	5,840,232	(11,764,723)
Cash flows from financing activities:
Net change in deposits	(1,686,961)	(1,856,774)
Net change in FHLB advances	(3,000,000)	(4,000,000)
Stock sale proceeds	0	15,744,744
Merger of WCF MHC into WCF Bancorp, Inc.	0	862,549
Dividends paid	(359,587)	(279,109)
Stock offering costs	0	(1,609,457)
Net cash provided by (used in) financing activities	(5,046,548)	8,861,953
Net increase (decrease) in cash and cash equivalents	1,863,516	(491,165)
Cash and cash equivalents at beginning of year	3,022,578	8,866,561
Cash and cash equivalents at end of quarter	4,886,094	8,375,396
Cash paid during the year for:
Interest	392,082	245,229
Taxes on income	0	116,726
Noncash investing activities:
Transfers to other real estate owned from loans	60,778	49,500
Loans to finance the sale of other real estate owned	$ 73,095	$ 0

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (the Company), and its wholly owned subsidiary WCF Financial Bank (the Bank), and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with Securities and Exchange Commission (SEC) rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2016. The consolidated balance sheet of the Company as of December 31, 2016 has been derived from the audited consolidated balance sheet of the Company as of that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year.

In preparing the 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. For further information with respect to significant accounting policies followed by the Company in preparation of the financial statements, refer to the Company’s annual report for the year ended December 31, 2016.

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 September 30, 2017, there is no significant difference in the comparability of the financial statements as a result of this extended transition period.

The Bank is a federally chartered stock savings 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 Federal Deposit Insurance Corporation (FDIC).

Organization and Business

WCF Bancorp, Inc. (the Company) is an Iowa-chartered corporation organized in 2016 to be the successor to Webster City Federal Bancorp, a federal corporation (Old Bancorp) upon completion of the second-step conversion of WCF Financial M.H.C. from the mutual holding company to the stock holding company form of organization. WCF Financial M.H.C. (the MHC) was the former mutual holding company for Old Bancorp prior to the completion of the second-step conversion. In conjunction with the second-step conversion, each of the MHC and Old Bancorp ceased to exist. The second-step conversion was completed on July 13, 2016 at which time the Company sold 2,139,231 shares of its common stock (including 171,138 shares purchased by the Bank's employee stock ownership plan, or ESOP) at $8.00 per share for gross proceeds of approximately $17.1 million. Expenses related to the stock offering totaled $1.7 million and were netted against proceeds. As a part of the second-step conversion, each of the outstanding shares of common stock of Old Bancorp held by persons other than the MHC were converted into 0.8115 shares of Company common stock with cash paid in lieu of fractional shares. As a result, a total of 2,561,542 shares were issues in the second-step conversion. As a result of the second-step conversion, all share and per share information has subsequently been revised to reflect the 0.8115 exchange ratio unless otherwise noted.

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 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, we also originate consumer loans and non owner-occupied one-to-four family residential real estate loans. On a limited basis we have also originated commercial real estate loans, but have deemphasized the origination, and intend to continue to deemphasize the origination, of this type of lending. We also invest in investment securities. Our primary lending area is broader than our primary deposit market area and includes north central and northeastern Iowa. Our revenues are derived principally from interest on loans and securities, and from loan origination and servicing fees. Our primary sources of funds are deposits, principal and interest payments on loans and securities and advances from the FHLB. As a federal savings bank, WCF Financial Bank is subject to comprehensive regulation and examination by the Office of the Comptroller of the Currency (the OCC). As a savings and loan 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).

The primary business of WCF Financial Service Corp (the Service Corp) 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.

Investment Securities

Investment 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 has no 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. 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 by 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. There were no net realized gains for the three months ended September 30, 2017 and $99,853 of net realized gains for the three months ended September 30, 2016. There were no net realized gains for the nine months endedSeptember 30, 2017 and $115,100 of net realized gains for the nine months endedSeptember 30, 2016.

Loans Receivable, Net

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.

Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms.  Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year.  Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. 

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.

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.

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 September 30, 2017 and December 31, 2016, capital levels exceeded minimum capital requirements (see note 6).

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. 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 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 nine months ended September 30, 2017 and 2016 is presented below.

	As of and For the
	Nine Months Ended September 30,
	2017		2016
Current assets	$	89,759	$	162,802
Long-term assets	1,695,397		1,750,950
Current liabilities	29,746		57,880
Total equity	1,755,410		1,855,872
Total revenue	685,085		709,963
Net income	116,469		215,450

Earnings per Common Share

The calculation of earnings per common share and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 is presented below.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	51,434	$	68,468	$	157,837	$	216,998
Weighted average common shares outstanding and diluted common shares outstanding (1)	2,404,096		2,435,221		2,404,096		2,435,221
Basic earnings per common share	$	0.02	$	0.03	$	0.07	$	0.09
Diluted earnings per common share	$	0.02	$	0.03	$	0.07	$	0.09
(1) Share and per share amounts related to periods prior to the date of completion of the Conversion (July 13, 2016) have been restated to give retroactive recognition to the exchange ratio applied to the Conversion (0.8115 to one)
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 and included for the purposes of computing basic and diluted earnings per share.

Employee Stock Ownership Plan

The Company established the 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 Prime Rate published in The Wall Street Journal, to be repaid on prorata 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 will be released annually from the suspense account and the released shares will be allocated to the 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 and the shares will be 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 September 30, 2017 there were 6,845 allocated shares and 164,293 unallocated shares.   The fair value of unallocated ESOP shares at September 30, 2017 was approximately $1,569,000.

Subsequent Events

On October 27, 2017, the board of directors declared a $0.05 per share cash dividend payable on November 22, 2017 to shareholders of record as of November 7, 2017.

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 or 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 entities 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 March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements.

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Securities Available-for-Sale

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Securities Available-for-Sale

Securities Available-for-Sale

Securities available-for-sale at September 30, 2017 and December 31, 2016 were as follows:

Description	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
September 30, 2017:
U.S. agency securities	$	249,760	$	—	$	5,172	$	244,588
Mortgage-backed securities*	28,929,146		6,751		344,499		28,591,398
Municipal bonds	11,936,473		180,428		52,760		12,064,141
	$	41,115,379	$	187,179	$	402,431	$	40,900,127
December 31, 2016:
U.S. agency securities	$	249,667	$	—	$	6,602	$	243,065
Mortgage-backed securities*	31,884,681		3,206		491,081		31,396,806
Municipal bonds	12,685,114		68,278		239,306		12,514,086
Corporate bonds	500,000		—		1,120		498,880
	$	45,319,462	$	71,484	$	738,109	$	44,652,837

*All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans.

The amortized cost and estimated fair value of securities available-for-sale at September 30, 2017 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.

	September 30, 2017
	Amortized cost		Fair value
Due in one year or less	$	200,000	$	200,210
Due after one year through five years	1,998,394		2,021,124
Due after five years, but less than ten years	6,361,390		6,496,823
Due after ten years	3,626,449		3,590,572
	12,186,233		12,308,729
Mortgage-backed securities	28,929,146		28,591,398
	$	41,115,379	$	40,900,127

The details of the sales of investment securities for the three and nine months ended September 30, 2017 and 2016 are summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Proceeds from sales	$	—	$	4,791,663	$	—	$	12,083,059
Gross gains on sales	—		109,062		—		159,262
Gross losses on sales	—		9,209		—		44,162

At September 30, 2017 and December 31, 2016, accrued interest receivable for securities available-for-sale totaled $198,486 and $196,227, 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 September 30, 2017 and December 31, 2016.

	September 30, 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	$	—	$	—	$	244,589	$	5,172	$	244,589	$	5,172
Mortgage-backed securities	16,977,703		193,348		9,094,355		151,151		26,072,058		344,499
Municipal bonds	1,600,601		24,120		1,479,162		28,640		3,079,763		52,760
Total	$	18,578,304	$	217,468	$	10,818,106	$	184,963	$	29,396,410	$	402,431
	December 31, 2016
	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	$	243,065	$	6,602	$	—	$	—	$	243,065	$	6,602
Mortgage-backed securities	23,646,101		404,287		5,401,593		86,794		29,047,694		491,081
Municipal bonds	8,798,581		239,306		—		—		8,798,581		239,306
Corporate bonds	498,880		1,120		—		—		498,880		1,120
Total	$	33,186,627	$	651,315	$	5,401,593	$	86,794	$	38,588,220	$	738,109

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.

The Company does not intend to sell its available-for-sale investment securities and it is not likely 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 intent 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 September 30, 2017 and December 31, 2016.

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Loans Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans Receivable

Loans Receivable

At September 30, 2017 and December 31, 2016, loans receivable consisted of the following segments:

	September 30, 2017			December 31, 2016
Loans:
One-to-four family residential	$	46,290,029		$	47,315,025
Non-owner occupied one-to-four family residential	2,898,603			3,650,171
Commercial real estate	3,858,437			3,596,717
Consumer	6,376,336			6,604,757
Total loans receivable	59,423,405			61,166,670
Discounts on loans purchased	(35,557		)	(56,707		)
Deferred loan costs (fees)	(30,987		)	(46,462		)
Allowance for loan losses	(516,319		)	(487,114		)
	$	58,840,542		$	60,576,387

Accrued interest receivable on loans receivable was $207,434 and $226,722 at September 30, 2017 and December 31, 2016, respectively.

The loan portfolio included approximately $41.0 million of fixed rate loans as of September 30, 2017 and $43.1 million as of December 31, 2016. The loan portfolio also included approximately $18.4 million and $18.1 million of variable rate loans as of September 30, 2017 and December 31, 2016, 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.

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 September 30, 2017 and December 31, 2016.

	September 30, 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	347,656		25,152		40,091		103,420		516,319
Total	$	347,656	$	25,152	$	40,091	$	103,420	$	516,319
Loans receivable:
Individually evaluated for impairment	$	—	$	—	$	285,038	$	—	$	285,038
Collectively evaluated for impairment	46,290,029		2,898,603		3,573,399		6,376,336		59,138,367
Total	$	46,290,029	$	2,898,603	$	3,858,437	$	6,376,336	$	59,423,405
	December 31, 2016
	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	319,849		28,231		37,135		101,899		487,114
Total	$	319,849	$	28,231	$	37,135	$	101,899	$	487,114
Loans receivable:
Individually evaluated for impairment	$	—	$	—	$	297,538	$	—	$	297,538
Collectively evaluated for impairment	47,315,025		3,650,171		3,299,179		6,604,757		60,869,132
Total	$	47,315,025	$	3,650,171	$	3,596,717	$	6,604,757	$	61,166,670

Activity in the allowance for loan losses by segment for the three and nine months ended September 30, 2017 and 2016 is summarized in the following tables:

	Three months ended September 30, 2017
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	326,526	$	—	$	—	$	21,130			$	347,656
Non-owner occupied one-to-four family residential	30,350		—		—		(5,198		)	*	25,152
Commercial real estate	38,453		—		—		1,638				40,091
Consumer	103,121		131		—		430				103,420
Total	$	498,450	$	131	$	—	$	18,000			$	516,319
	Three months ended September 30, 2016
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	367,057	$	—	$	—	$	(50,444	)	*	$	316,613
Non-owner occupied one-to-four family residential	31,963		—		—		(2,488		)	*	29,475
Commercial real estate	30,309		28,730		—		31,728				33,307
Consumer	86,926		13,342		—		21,204				94,788
Total	$	516,255	$	42,072	$	—	$	—			$	474,183

	Nine Months Ended September 30, 2017
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	319,849	$	10,945	$	133	$	38,619			$	347,656
Non-owner occupied one-to-four family residential	28,231		—		—		(3,079		)		25,152
Commercial real estate	37,135		—		—		2,956				40,091
Consumer	101,899		14,054		71		15,504				103,420
Total	$	487,114	$	24,999	$	204	$	54,000			$	516,319
	Nine Months Ended September 30, 2016
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	366,858	$	5,610	$	—	$	(44,635	)	*	$	316,613
Non-owner occupied one-to-four family residential	44,510		—		—		(15,035		)	*	29,475
Commercial real estate	32,443		28,730		—		29,594				33,307
Consumer	61,367		16,955		300		50,076				94,788
Total	$	505,178	$	51,295	$	300	$	20,000			$	474,183

* 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

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 30 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 30 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 and does not intend to emphasize these types of loans in the future. 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.

(b) Charge‑off Policy

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.

(c) Troubled Debt Restructurings (TDR)

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 new troubled debt restructurings in the first nine months of 2017.

(d) Loans Measured Individually for Impairment

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 1-4 family residential and consumer are collectively evaluated for impairment.

(e) Loans Measured Collectively 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.

	Pass		Special mention/watch		Substandard		Doubtful		Total
September 30, 2017:
Loans
One-to-four family residential	$	44,327,329	$	1,552,019	$	410,681	$	—	$	46,290,029
Non-owner occupied one-to-four family residential	2,528,979		369,624		—		—		2,898,603
Commercial real estate	3,313,998		257,381		287,058		—		3,858,437
Consumer	6,050,785		304,448		21,103		—		6,376,336
Total	$	56,221,091	$	2,483,472	$	718,842	$	—	$	59,423,405
	Pass		Special mention/watch		Substandard		Doubtful		Total
December 31, 2016:
Loans
One-to-four family residential	$	45,851,480	$	978,513	$	485,032	$	—	$	47,315,025
Non-owner occupied one-to-four family residential	3,299,494		36,298		314,379		—		3,650,171
Commercial real estate	3,009,623		289,556		297,538		—		3,596,717
Consumer	6,324,360		270,478		9,919		—		6,604,757
Total	$	58,484,957	$	1,574,845	$	1,106,868	$	—	$	61,166,670

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 one impaired loan as of September 30, 2017 and December 31, 2016. No interest income was recorded on impaired loans during 2017 or 2016.

(f) Nonaccrual and Delinquent Loans

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).

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 day’s and 60‑89 day’s 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 September 30, 2017 and December 31, 2016.

	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
September 30, 2017:
Loans
One-to-four family residential	$	676,500	$	323,229	$	378,851	$	1,378,580	$	44,911,449	$	46,290,029	$	228,226
Non-owner occupied one-to-four family residential	177,538		—		—		177,538		2,721,065		2,898,603		—
Commercial real estate	—		—		287,058		287,058		3,571,379		3,858,437		—
Consumer	214,092		46,200		6,103		266,395		6,109,941		6,376,336		6,103
Total	$	1,068,130	$	369,429	$	672,012	$	2,109,571	$	57,313,834	$	59,423,405	$	234,329
	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, 2016:
Loans
One-to-four family residential	$	706,135	$	272,378	$	258,009	$	1,236,522	$	46,078,503	$	47,315,025	$	193,251
Non-owner occupied one-to-four family residential	—		36,298		56,639		92,937		3,557,234		3,650,171		56,639
Commercial real estate	27,143		—		297,538		324,681		3,272,036		3,596,717		—
Consumer	190,455		80,023		1,365		271,843		6,332,914		6,604,757		1,365
Total	$	923,733	$	388,699	$	613,551	$	1,925,983	$	59,240,687	$	61,166,670	$	251,255

The following tables set forth the composition of the Company’s recorded investment in loans on nonaccrual status as of September 30, 2017 and December 31, 2016.

	September 30, 2017		December 31, 2016
Loans
One-to-four family residential	$	150,625	$	291,779
Non-owner occupied one-to-four family residential	—		314,380
Commercial real estate	287,058		297,538
Consumer	—		8,554
Total	$	437,683	$	912,251

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Deposits

9 Months Ended

Sep. 30, 2017

Banking and Thrift [Abstract]

Deposits

Deposits

At September 30, 2017 and December 31, 2016, deposits are summarized as follows:

	September 30, 2017		December 31, 2016
Statement savings	$	14,529,038	$	12,031,554
Money market plus	11,975,410		11,169,038
NOW	18,382,024		18,489,727
Certificates of deposit	40,516,247		45,399,361
	$	85,402,719	$	87,089,680

Included in the NOW accounts were approximately $4.7 million and $4.8 million of non-interest bearing deposits as of September 30, 2017 and December 31, 2016, respectively.

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Taxes on Income

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Taxes on Income

Taxes on Income

Taxes on income comprise the following:

	September 30, 2017
	Federal			State			Total
Current	$	(310	)	$	5,700		$	5,390
Deferred	(64,687		)	(1,000		)	(65,687		)
	$	(64,997	)	$	4,700		$	(60,297	)
	September 30, 2016
	Federal			State			Total
Current	$	24,747		$	11,268		$	36,015
Deferred	(11,000		)	8,000			(3,000		)
	$	13,747		$	19,268		$	33,015

Taxes on income differ from the amounts computed by applying the federal income tax rate of 34% to earnings before taxes on income for the following reasons, expressed in dollars:

	September 30, 2017			September 30, 2016
Federal tax at statutory rate	$	33,164		$	85,004
Items affecting federal income tax rate:
State taxes on income, net of federal benefit	3,102			12,717
Tax-exempt income	(64,366		)	(94,458		)
Bank-owned life insurance	(31,613		)	—
Valuation allowance	15,000			—
Other	(15,584		)	29,752
	$	(60,297	)	$	33,015

Federal income tax expense for the periods ended September 30, 2017 and December 31, 2016 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 September 30, 2017 and December 31, 2016 are presented below:

	September 30, 2017			December 31, 2016
Deferred tax assets:
Deferred directors’ fees	$	322,000		$	338,000
Allowance for loan losses	193,000			182,000
Net operating loss carryforward	186,000			138,000
AMT credit	44,924			35,000
Charitable contribution	88,000			86,000
Professional fees	76,000			77,000
Securities available-for-sale	79,977			246,159
Fixed assets	29,000			—
Other	19,182			28,420
Gross deferred tax assets	1,038,083			1,130,579
Valuation allowance	(121,000		)	(106,000		)
Net deferred tax assets	917,083			1,024,579
Deferred tax liabilities:
Prepaid expenses	(21,000		)	(21,000		)
FHLB stock dividends	(38,000		)	(38,000		)
Fixed assets	—			(6,000		)
Intangible assets	(24,000		)	(25,000		)
Gross deferred tax liabilities	(83,000		)	(90,000		)
Net deferred tax assets	$	834,083		$	934,579

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 September 30, 2017 and December 31, 2016, related to the charitable contribution carryforward and Iowa corporate net operating loss carryovers. The charitable contribution expires if not used by 2020.

As of December 31, 2016, 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 September 30, 2017 and December 31, 2016, retained earnings contain certain historical additions to bad debt reserves for income tax purposes of approximately $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 $800,000.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

(a) Common Stock Repurchase

The Company repurchased no shares during the three and nine months ended September 30, 2017 and 2016.

(b) Regulatory Capital Requirements

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 September 30, 2017 and December 31, 2016.

The Company’s and WCF Financial Bank’s capital amounts and ratios are presented in the following table as of September 30, 2017 and December 31, 2016 (dollars in thousands).

	September 30, 2017
					For capital adequacy				To be well-capitalized
					with capital conservation				under prompt corrective
	Actual				buffer purposes				action provisions
	Amount		Percent		Amount		Percent		Amount		Percent
Tangible capital:
Consolidated	$	29,022	23.50	%	$	4,946	4.00	%	N/A		N/A
WCF Financial Bank	19,264		16.40		4,702		4.00		$	5,877	5.00	%
Common equity tier 1:
Consolidated	29,022		57.40		2,909		5.75		3,288		6.50
WCF Financial Bank	19,264		39.30		2,815		5.75		3,182		6.50
Risk-based capital:
Consolidated	29,538		58.40		4,679		9.25		5,059		10.00
WCF Financial Bank	19,780		40.40		4,529		9.25		4,896		10.00
Tier 1 risk-based capital:
Consolidated	29,022		57.40		3,668		7.25		4,047		8.00
WCF Financial Bank	19,264		39.30		3,550		7.25		3,917		8.00

	December 31, 2016
									To be well-capitalized
					For capital adequacy				under prompt corrective
	Actual				purposes				action provisions
	Amount		Percent		Amount		Percent		Amount		Percent
Tangible capital:
Consolidated	$	29,192	24.30	%	$	4,812	4.00	%	N/A		N/A
WCF Financial Bank	18,993		16.00		4,753		4.00		$	5,941	5.00	%
Common equity tier 1:
Consolidated	29,192		55.30		2,706		5.13		3,432		6.50
WCF Financial Bank	18,993		36.80		2,648		5.13		3,359		6.50
Risk-based capital:
Consolidated	29,679		56.20		4,554		8.63		5,280		10.00
WCF Financial Bank	19,480		37.70		4,457		8.63		5,167		10.00
Tier 1 risk-based capital:
Consolidated	29,192		55.30		3,498		6.63		4,224		8.00
WCF Financial Bank	18,993		36.80		3,423		6.63		4,134		8.00

In July 2013, the Federal Reserve Board and the OCC 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 September 30, 2017, the ratios for the Company and WCF Financial Bank were sufficient to meet the fully phased-in conservation buffer.

(c) Dividends and Restrictions Thereon

The Company declared and paid a $0.05 dividend in each of the first three quarters ended September 30, 2017. In the first quarter of 2016, the Company declared and paid a $0.06 dividend, did not declare or pay a dividend during the second quarter of 2016, and declared and paid a $0.05 dividend in the third quarter of 2016. Per share amounts related to periods prior to the date of completion of the Conversion (July 13, 2016) have been restated to give retroactive recognition to the exchange ratio applied to the Conversion (0.8115 to one).

Federal regulations impose certain limitations on the payment of dividends and other capital distributions by the Bank. Under the regulations, a savings institution, such as the Bank, that will meet the fully phased‑in capital requirements (as defined by the OCC regulations) subsequent to a capital distribution is generally permitted to make such capital distribution without OCC approval so long as they have not been notified of the need for more than normal supervision by the OCC. The Bank has not been so notified and, therefore, may make capital distributions during the calendar year equal to net income plus 50% of the amount by which the Bank’s capital exceeds the fully phased‑in capital requirement as measured at the beginning of the calendar year. A savings institution with total capital in excess of current minimum capital requirements but not in excess of the fully phased‑in requirements is permitted by the new regulations to make, without OCC approval, capital distributions of between 25% and 75% of its net income for the previous four quarters, less dividends already paid for such period. A savings institution that fails to meet current minimum capital requirements is prohibited from making any capital distributions without prior approval from the OCC.

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Fair Value

9 Months Ended

Sep. 30, 2017

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 or 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:

• 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.

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.

• 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.

• FHLB and Bankers’ Bank stock. The value of FHLB and Bankers’ Bank 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.

The following tables summarize financial assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, 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 in the consolidated balance sheets.

	September 30, 2017
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
U.S. agency securities	$	—	$	244,588	$	—	$	244,588
Mortgage-backed securities	—		28,591,398		—		28,591,398
Municipal bonds	—		12,064,141		—		12,064,141
Total	$	—	$	40,900,127	$	—	$	40,900,127

	December 31, 2016
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
U.S. agency securities	$	—	$	243,065	$	—	$	243,065
Mortgage-backed securities	—		31,396,806		—		31,396,806
Municipal bonds	—		12,514,086		—		12,514,086
Corporate bonds	—		498,880		—		498,880
Total	$	—	$	44,652,837	$	—	$	44,652,837

There have been no changes in valuation methodologies at September 30, 2017 compared to December 31, 2016 and there were no transfers between levels during the periods ended September 30, 2017 and December 31, 2016.

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 September 30, 2017 and December 31, 2016, 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 (as described in note 1) at September 30, 2017 and December 31, 2016 were as follows:

		September 30, 2017				December 31, 2016
	Fair value	Carrying		Approximate		Carrying		Approximate
	hierarchy	amount		fair value		amount		fair value
Financial assets:
Cash and due from banks	Level 1	$	4,171,094	$	4,171,094	$	1,716,578	$	1,716,578
Federal funds sold	Level 1	715,000		715,000		1,306,000		1,306,000
Time deposits in other
financial institutions	Level 1	4,791,175		4,791,175		5,037,068		5,037,068
Securities available-for-sale	See previous table	40,900,127		40,900,127		44,652,837		44,652,837
Loans receivable, net	Level 2 (1)	58,840,542		59,472,542		60,576,387		61,896,952
FHLB stock	Level 1	243,400		243,400		354,800		354,800
Bankers’ Bank stock	Level 1	147,500		147,500		147,500		147,500
Accrued interest receivable	Level 1	405,920		405,920		422,949		422,949
Financial liabilities:
Deposits	Level 2	85,402,719		80,589,197		87,089,680		83,357,680
FHLB advances	Level 2	2,500,000		2,500,000		5,500,000		5,504,950
Accrued interest payable	Level 1	93,681		93,681		3,196		3,196

(1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

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 approximately $297,000 and $360,000 as of September 30, 2017 and December 31, 2016, respectively. These commitments expire one year from origination and are both fixed and adjustable interest rates ranging from 3.25% to 5.50%.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) components at September 30, 2017 and December 31, 2016 were as follows:

	September 30, 2017			December 31, 2016
Unrealized holding (losses) gains on securities available-for-sale	$	(215,252	)	$	(666,625	)
Tax impact	79,977			246,159
	$	(135,275	)	$	(420,466	)

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying unaudited consolidated financial statements of WCF Bancorp, Inc. (the Company), and its wholly owned subsidiary WCF Financial Bank (the Bank), and Webster City Federal Service Corp, have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with Securities and Exchange Commission (SEC) rules and regulations. Accordingly, the statements do not include all the information and footnotes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto that were included in the Company’s annual report for the year ended December 31, 2016. The consolidated balance sheet of the Company as of December 31, 2016 has been derived from the audited consolidated balance sheet of the Company as of that date. All significant intercompany transactions are eliminated in consolidation. In the opinion of the Company’s management, all adjustments necessary (i) for a fair presentation of the financial statements for the interim periods included herein and (ii) to make such financial statements not misleading have been made and are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year.

Use of Estimates

In preparing the 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.

Investment Securities

Investment 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 has no 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. 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 by 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.

Loans Receivable, Net

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.

Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms.  Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year.  Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. 

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.

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. 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 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 shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares will be released annually from the suspense account and the released shares will be allocated to the 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 and the shares will be 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.

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 or 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 entities 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 March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements.

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Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Equity Method Investments

Summary unaudited financial information of the affiliate as of and for the nine months ended September 30, 2017 and 2016 is presented below.

	As of and For the
	Nine Months Ended September 30,
	2017		2016
Current assets	$	89,759	$	162,802
Long-term assets	1,695,397		1,750,950
Current liabilities	29,746		57,880
Total equity	1,755,410		1,855,872
Total revenue	685,085		709,963
Net income	116,469		215,450

Schedule of Earnings Per Share

The calculation of earnings per common share and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 is presented below.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	51,434	$	68,468	$	157,837	$	216,998
Weighted average common shares outstanding and diluted common shares outstanding (1)	2,404,096		2,435,221		2,404,096		2,435,221
Basic earnings per common share	$	0.02	$	0.03	$	0.07	$	0.09
Diluted earnings per common share	$	0.02	$	0.03	$	0.07	$	0.09
(1) Share and per share amounts related to periods prior to the date of completion of the Conversion (July 13, 2016) have been restated to give retroactive recognition to the exchange ratio applied to the Conversion (0.8115 to one)
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 and included for the purposes of computing basic and diluted earnings per share.

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Securities Available-for-Sale (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

Securities available-for-sale at September 30, 2017 and December 31, 2016 were as follows:

Description	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
September 30, 2017:
U.S. agency securities	$	249,760	$	—	$	5,172	$	244,588
Mortgage-backed securities*	28,929,146		6,751		344,499		28,591,398
Municipal bonds	11,936,473		180,428		52,760		12,064,141
	$	41,115,379	$	187,179	$	402,431	$	40,900,127
December 31, 2016:
U.S. agency securities	$	249,667	$	—	$	6,602	$	243,065
Mortgage-backed securities*	31,884,681		3,206		491,081		31,396,806
Municipal bonds	12,685,114		68,278		239,306		12,514,086
Corporate bonds	500,000		—		1,120		498,880
	$	45,319,462	$	71,484	$	738,109	$	44,652,837

*All mortgage-backed securities are issued by FNMA, FHLMC, or GNMA and are backed by residential mortgage loans.

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of securities available-for-sale at September 30, 2017 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.

	September 30, 2017
	Amortized cost		Fair value
Due in one year or less	$	200,000	$	200,210
Due after one year through five years	1,998,394		2,021,124
Due after five years, but less than ten years	6,361,390		6,496,823
Due after ten years	3,626,449		3,590,572
	12,186,233		12,308,729
Mortgage-backed securities	28,929,146		28,591,398
	$	41,115,379	$	40,900,127

Summary of Investment Securities Sales

The details of the sales of investment securities for the three and nine months ended September 30, 2017 and 2016 are summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Proceeds from sales	$	—	$	4,791,663	$	—	$	12,083,059
Gross gains on sales	—		109,062		—		159,262
Gross losses on sales	—		9,209		—		44,162

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 September 30, 2017 and December 31, 2016.

	September 30, 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	$	—	$	—	$	244,589	$	5,172	$	244,589	$	5,172
Mortgage-backed securities	16,977,703		193,348		9,094,355		151,151		26,072,058		344,499
Municipal bonds	1,600,601		24,120		1,479,162		28,640		3,079,763		52,760
Total	$	18,578,304	$	217,468	$	10,818,106	$	184,963	$	29,396,410	$	402,431
	December 31, 2016
	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	$	243,065	$	6,602	$	—	$	—	$	243,065	$	6,602
Mortgage-backed securities	23,646,101		404,287		5,401,593		86,794		29,047,694		491,081
Municipal bonds	8,798,581		239,306		—		—		8,798,581		239,306
Corporate bonds	498,880		1,120		—		—		498,880		1,120
Total	$	33,186,627	$	651,315	$	5,401,593	$	86,794	$	38,588,220	$	738,109

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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Loans Receivable

At September 30, 2017 and December 31, 2016, loans receivable consisted of the following segments:

	September 30, 2017			December 31, 2016
Loans:
One-to-four family residential	$	46,290,029		$	47,315,025
Non-owner occupied one-to-four family residential	2,898,603			3,650,171
Commercial real estate	3,858,437			3,596,717
Consumer	6,376,336			6,604,757
Total loans receivable	59,423,405			61,166,670
Discounts on loans purchased	(35,557		)	(56,707		)
Deferred loan costs (fees)	(30,987		)	(46,462		)
Allowance for loan losses	(516,319		)	(487,114		)
	$	58,840,542		$	60,576,387

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 September 30, 2017 and December 31, 2016.

	September 30, 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	347,656		25,152		40,091		103,420		516,319
Total	$	347,656	$	25,152	$	40,091	$	103,420	$	516,319
Loans receivable:
Individually evaluated for impairment	$	—	$	—	$	285,038	$	—	$	285,038
Collectively evaluated for impairment	46,290,029		2,898,603		3,573,399		6,376,336		59,138,367
Total	$	46,290,029	$	2,898,603	$	3,858,437	$	6,376,336	$	59,423,405
	December 31, 2016
	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	319,849		28,231		37,135		101,899		487,114
Total	$	319,849	$	28,231	$	37,135	$	101,899	$	487,114
Loans receivable:
Individually evaluated for impairment	$	—	$	—	$	297,538	$	—	$	297,538
Collectively evaluated for impairment	47,315,025		3,650,171		3,299,179		6,604,757		60,869,132
Total	$	47,315,025	$	3,650,171	$	3,596,717	$	6,604,757	$	61,166,670

Activity in the allowance for loan losses by segment for the three and nine months ended September 30, 2017 and 2016 is summarized in the following tables:

	Three months ended September 30, 2017
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	326,526	$	—	$	—	$	21,130			$	347,656
Non-owner occupied one-to-four family residential	30,350		—		—		(5,198		)	*	25,152
Commercial real estate	38,453		—		—		1,638				40,091
Consumer	103,121		131		—		430				103,420
Total	$	498,450	$	131	$	—	$	18,000			$	516,319
	Three months ended September 30, 2016
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	367,057	$	—	$	—	$	(50,444	)	*	$	316,613
Non-owner occupied one-to-four family residential	31,963		—		—		(2,488		)	*	29,475
Commercial real estate	30,309		28,730		—		31,728				33,307
Consumer	86,926		13,342		—		21,204				94,788
Total	$	516,255	$	42,072	$	—	$	—			$	474,183

	Nine Months Ended September 30, 2017
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	319,849	$	10,945	$	133	$	38,619			$	347,656
Non-owner occupied one-to-four family residential	28,231		—		—		(3,079		)		25,152
Commercial real estate	37,135		—		—		2,956				40,091
Consumer	101,899		14,054		71		15,504				103,420
Total	$	487,114	$	24,999	$	204	$	54,000			$	516,319
	Nine Months Ended September 30, 2016
	Beginning Balance		Charge-offs		Recoveries		Provisions				Ending Balance
Loans:
One-to-four family residential	$	366,858	$	5,610	$	—	$	(44,635	)	*	$	316,613
Non-owner occupied one-to-four family residential	44,510		—		—		(15,035		)	*	29,475
Commercial real estate	32,443		28,730		—		29,594				33,307
Consumer	61,367		16,955		300		50,076				94,788
Total	$	505,178	$	51,295	$	300	$	20,000			$	474,183

* 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.

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.

	Pass		Special mention/watch		Substandard		Doubtful		Total
September 30, 2017:
Loans
One-to-four family residential	$	44,327,329	$	1,552,019	$	410,681	$	—	$	46,290,029
Non-owner occupied one-to-four family residential	2,528,979		369,624		—		—		2,898,603
Commercial real estate	3,313,998		257,381		287,058		—		3,858,437
Consumer	6,050,785		304,448		21,103		—		6,376,336
Total	$	56,221,091	$	2,483,472	$	718,842	$	—	$	59,423,405
	Pass		Special mention/watch		Substandard		Doubtful		Total
December 31, 2016:
Loans
One-to-four family residential	$	45,851,480	$	978,513	$	485,032	$	—	$	47,315,025
Non-owner occupied one-to-four family residential	3,299,494		36,298		314,379		—		3,650,171
Commercial real estate	3,009,623		289,556		297,538		—		3,596,717
Consumer	6,324,360		270,478		9,919		—		6,604,757
Total	$	58,484,957	$	1,574,845	$	1,106,868	$	—	$	61,166,670

Summary of Past Due Loans

The following tables set forth the composition of the Company’s past-due loans at September 30, 2017 and December 31, 2016.

	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
September 30, 2017:
Loans
One-to-four family residential	$	676,500	$	323,229	$	378,851	$	1,378,580	$	44,911,449	$	46,290,029	$	228,226
Non-owner occupied one-to-four family residential	177,538		—		—		177,538		2,721,065		2,898,603		—
Commercial real estate	—		—		287,058		287,058		3,571,379		3,858,437		—
Consumer	214,092		46,200		6,103		266,395		6,109,941		6,376,336		6,103
Total	$	1,068,130	$	369,429	$	672,012	$	2,109,571	$	57,313,834	$	59,423,405	$	234,329
	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, 2016:
Loans
One-to-four family residential	$	706,135	$	272,378	$	258,009	$	1,236,522	$	46,078,503	$	47,315,025	$	193,251
Non-owner occupied one-to-four family residential	—		36,298		56,639		92,937		3,557,234		3,650,171		56,639
Commercial real estate	27,143		—		297,538		324,681		3,272,036		3,596,717		—
Consumer	190,455		80,023		1,365		271,843		6,332,914		6,604,757		1,365
Total	$	923,733	$	388,699	$	613,551	$	1,925,983	$	59,240,687	$	61,166,670	$	251,255

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 September 30, 2017 and December 31, 2016.

	September 30, 2017		December 31, 2016
Loans
One-to-four family residential	$	150,625	$	291,779
Non-owner occupied one-to-four family residential	—		314,380
Commercial real estate	287,058		297,538
Consumer	—		8,554
Total	$	437,683	$	912,251

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Deposits (Tables)

9 Months Ended

Sep. 30, 2017

Banking and Thrift [Abstract]

Schedule of Deposits by Type

At September 30, 2017 and December 31, 2016, deposits are summarized as follows:

	September 30, 2017		December 31, 2016
Statement savings	$	14,529,038	$	12,031,554
Money market plus	11,975,410		11,169,038
NOW	18,382,024		18,489,727
Certificates of deposit	40,516,247		45,399,361
	$	85,402,719	$	87,089,680

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Taxes on Income (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Taxes on income comprise the following:

	September 30, 2017
	Federal			State			Total
Current	$	(310	)	$	5,700		$	5,390
Deferred	(64,687		)	(1,000		)	(65,687		)
	$	(64,997	)	$	4,700		$	(60,297	)
	September 30, 2016
	Federal			State			Total
Current	$	24,747		$	11,268		$	36,015
Deferred	(11,000		)	8,000			(3,000		)
	$	13,747		$	19,268		$	33,015

Schedule of Effective Income Tax Rate Reconciliation

Taxes on income differ from the amounts computed by applying the federal income tax rate of 34% to earnings before taxes on income for the following reasons, expressed in dollars:

	September 30, 2017			September 30, 2016
Federal tax at statutory rate	$	33,164		$	85,004
Items affecting federal income tax rate:
State taxes on income, net of federal benefit	3,102			12,717
Tax-exempt income	(64,366		)	(94,458		)
Bank-owned life insurance	(31,613		)	—
Valuation allowance	15,000			—
Other	(15,584		)	29,752
	$	(60,297	)	$	33,015

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 September 30, 2017 and December 31, 2016 are presented below:

	September 30, 2017			December 31, 2016
Deferred tax assets:
Deferred directors’ fees	$	322,000		$	338,000
Allowance for loan losses	193,000			182,000
Net operating loss carryforward	186,000			138,000
AMT credit	44,924			35,000
Charitable contribution	88,000			86,000
Professional fees	76,000			77,000
Securities available-for-sale	79,977			246,159
Fixed assets	29,000			—
Other	19,182			28,420
Gross deferred tax assets	1,038,083			1,130,579
Valuation allowance	(121,000		)	(106,000		)
Net deferred tax assets	917,083			1,024,579
Deferred tax liabilities:
Prepaid expenses	(21,000		)	(21,000		)
FHLB stock dividends	(38,000		)	(38,000		)
Fixed assets	—			(6,000		)
Intangible assets	(24,000		)	(25,000		)
Gross deferred tax liabilities	(83,000		)	(90,000		)
Net deferred tax assets	$	834,083		$	934,579

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 and December 31, 2016 (dollars in thousands).

	September 30, 2017
					For capital adequacy				To be well-capitalized
					with capital conservation				under prompt corrective
	Actual				buffer purposes				action provisions
	Amount		Percent		Amount		Percent		Amount		Percent
Tangible capital:
Consolidated	$	29,022	23.50	%	$	4,946	4.00	%	N/A		N/A
WCF Financial Bank	19,264		16.40		4,702		4.00		$	5,877	5.00	%
Common equity tier 1:
Consolidated	29,022		57.40		2,909		5.75		3,288		6.50
WCF Financial Bank	19,264		39.30		2,815		5.75		3,182		6.50
Risk-based capital:
Consolidated	29,538		58.40		4,679		9.25		5,059		10.00
WCF Financial Bank	19,780		40.40		4,529		9.25		4,896		10.00
Tier 1 risk-based capital:
Consolidated	29,022		57.40		3,668		7.25		4,047		8.00
WCF Financial Bank	19,264		39.30		3,550		7.25		3,917		8.00

	December 31, 2016
									To be well-capitalized
					For capital adequacy				under prompt corrective
	Actual				purposes				action provisions
	Amount		Percent		Amount		Percent		Amount		Percent
Tangible capital:
Consolidated	$	29,192	24.30	%	$	4,812	4.00	%	N/A		N/A
WCF Financial Bank	18,993		16.00		4,753		4.00		$	5,941	5.00	%
Common equity tier 1:
Consolidated	29,192		55.30		2,706		5.13		3,432		6.50
WCF Financial Bank	18,993		36.80		2,648		5.13		3,359		6.50
Risk-based capital:
Consolidated	29,679		56.20		4,554		8.63		5,280		10.00
WCF Financial Bank	19,480		37.70		4,457		8.63		5,167		10.00
Tier 1 risk-based capital:
Consolidated	29,192		55.30		3,498		6.63		4,224		8.00
WCF Financial Bank	18,993		36.80		3,423		6.63		4,134		8.00

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 and December 31, 2016, 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 in the consolidated balance sheets.

	September 30, 2017
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
U.S. agency securities	$	—	$	244,588	$	—	$	244,588
Mortgage-backed securities	—		28,591,398		—		28,591,398
Municipal bonds	—		12,064,141		—		12,064,141
Total	$	—	$	40,900,127	$	—	$	40,900,127

	December 31, 2016
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
U.S. agency securities	$	—	$	243,065	$	—	$	243,065
Mortgage-backed securities	—		31,396,806		—		31,396,806
Municipal bonds	—		12,514,086		—		12,514,086
Corporate bonds	—		498,880		—		498,880
Total	$	—	$	44,652,837	$	—	$	44,652,837

Summary of Estimated Fair Values of Company's Financial Instruments

The estimated fair values of Company’s financial instruments (as described in note 1) at September 30, 2017 and December 31, 2016 were as follows:

		September 30, 2017				December 31, 2016
	Fair value	Carrying		Approximate		Carrying		Approximate
	hierarchy	amount		fair value		amount		fair value
Financial assets:
Cash and due from banks	Level 1	$	4,171,094	$	4,171,094	$	1,716,578	$	1,716,578
Federal funds sold	Level 1	715,000		715,000		1,306,000		1,306,000
Time deposits in other
financial institutions	Level 1	4,791,175		4,791,175		5,037,068		5,037,068
Securities available-for-sale	See previous table	40,900,127		40,900,127		44,652,837		44,652,837
Loans receivable, net	Level 2 (1)	58,840,542		59,472,542		60,576,387		61,896,952
FHLB stock	Level 1	243,400		243,400		354,800		354,800
Bankers’ Bank stock	Level 1	147,500		147,500		147,500		147,500
Accrued interest receivable	Level 1	405,920		405,920		422,949		422,949
Financial liabilities:
Deposits	Level 2	85,402,719		80,589,197		87,089,680		83,357,680
FHLB advances	Level 2	2,500,000		2,500,000		5,500,000		5,504,950
Accrued interest payable	Level 1	93,681		93,681		3,196		3,196

(1) Impaired loans would have a fair value hierarchy of a Level 3. See previous disclosures.

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) components at September 30, 2017 and December 31, 2016 were as follows:

	September 30, 2017			December 31, 2016
Unrealized holding (losses) gains on securities available-for-sale	$	(215,252	)	$	(666,625	)
Tax impact	79,977			246,159
	$	(135,275	)	$	(420,466	)

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Basis of Presentation (Stock Conversion) (Details)		9 Months Ended
	Jul. 13, 2016 USD ($) $ / shares shares	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jul. 13, 2016 USD ($) $ / shares shares
Class of Stock [Line Items]
Shares sold and held in employee stock ownership plan (in shares)	171,138			171,138
Proceeds from the issuance of stock during initial offering | $	$ 17,100,000
Offering costs incurred to date | $		$ 0	$ 1,609,457	$ 1,700,000
Exchange ratio applied to the Conversion	0.8115			0.8115
Second-step conversion
Class of Stock [Line Items]
Exchange ratio applied to the Conversion	0.8115			0.8115
Common stock issued in the second-step conversion (in shares)	2,561,542
IPO
Class of Stock [Line Items]
Common stock sold in offering (in shares)	2,139,231
Price per share (in usd per share) | $ / shares	$ 8.00			$ 8.00

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Basis of Presentation (Investment Securities Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gains on sale of securities available-for-sale, net	$ 0	$ 99,853	$ 0	$ 115,100

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Basis of Presentation (Investment in Affiliate Narrative) (Details)	Sep. 30, 2017
New Castle Players, LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage	27.17%

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Basis of Presentation (Investment in Affiliate) (Details) - New Castle Players, LLC - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Schedule of Equity Method Investments [Line Items]
Current assets	$ 89,759	$ 162,802
Long-term assets	1,695,397	1,750,950
Current liabilities	29,746	57,880
Total equity	1,755,410	1,855,872
Total revenue	685,085	709,963
Net income	$ 116,469	$ 215,450

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Basis of Presentation (Earnings per Common Share) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Jul. 13, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income | $	$ 51,434	$ 68,468	$ 157,837	$ 216,998
Weighted average common shares outstanding and diluted common shares outstanding (in shares) | shares	2,404,096	2,435,221	2,404,096	2,435,221
Basic earnings per common share (in usd per share)	$ 0.02	$ 0.03	$ 0.07	$ 0.09
Diluted earnings per common share (in usd per share)	$ 0.02	$ 0.03	$ 0.07	$ 0.09
Exchange ratio applied to the Conversion					0.8115

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Basis of Presentation (Employee Stock Ownership Plan) (Details) $ / shares in Units, $ in Thousands	Sep. 30, 2017 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 | $		$ 1,400
Number of installments for repayment of employer loan | Installment		25
Allocated shares (in shares)	6,845
Shares held in suspense (in shares)	164,293
Fair value of unallocated shares | $	$ 1,569
IPO
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Price per share (in usd per share) | $ / shares		$ 8.00

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Basis of Presentation (Subsequent Events) (Details) - $ / shares		3 Months Ended
	Oct. 27, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Subsequent Event [Line Items]
Dividends declared per share of common stock (in usd per share)		$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0	$ 0.06
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share of common stock (in usd per share)	$ 0.05

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Securities Available-for-Sale (Amortized Cost to Fair Value) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized cost	$ 41,115,379	$ 45,319,462
Gross unrealized gains	187,179	71,484
Gross unrealized losses	402,431	738,109
Fair value	40,900,127	44,652,837
U.S. agency securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized cost	249,760	249,667
Gross unrealized gains	0	0
Gross unrealized losses	5,172	6,602
Fair value	244,588	243,065
Mortgage-backed securities
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized cost	28,929,146	31,884,681
Gross unrealized gains	6,751	3,206
Gross unrealized losses	344,499	491,081
Fair value	28,591,398	31,396,806
Municipal bonds
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized cost	11,936,473	12,685,114
Gross unrealized gains	180,428	68,278
Gross unrealized losses	52,760	239,306
Fair value	$ 12,064,141	12,514,086
Corporate bonds
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized cost		500,000
Gross unrealized gains		0
Gross unrealized losses		1,120
Fair value		$ 498,880

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Securities Available-for-Sale (Amortized Cost and Fair Value of Securities by Maturity) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Amortized cost
Due in one year or less	$ 200,000
Due after one year through five years	1,998,394
Due after five years, but less than ten years	6,361,390
Due after ten years	3,626,449
With single maturity date total	12,186,233
Amortized cost	41,115,379	$ 45,319,462
Fair value
Due in one year or less	200,210
Due after one year through five years	2,021,124
Due after five years, but less than ten years	6,496,823
Due after ten years	3,590,572
With single maturity date total	12,308,729
Fair value	40,900,127	44,652,837
Mortgage-backed securities
Amortized cost
Without single maturity date	28,929,146
Amortized cost	28,929,146	31,884,681
Fair value
Without single maturity date	28,591,398
Fair value	$ 28,591,398	$ 31,396,806

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Securities Available-for-Sale (Sales of Investment Securities) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 0	$ 4,791,663	$ 0	$ 12,083,059
Gross gains on sales	0	109,062	0	159,262
Gross losses on sales	$ 0	$ 9,209	$ 0	$ 44,162

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Securities Available-for-Sale (Narrative) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Accrued interest receivable	$ 405,920	$ 422,949
Available-for-sale securities
Schedule of Available-for-sale Securities [Line Items]
Accrued interest receivable	$ 198,486	$ 196,227

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Securities Available-for-Sale (Securities in a Continuous Unrealized Loss Position) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair value
Up to 12 months	$ 18,578,304	$ 33,186,627
Greater than 12 months	10,818,106	5,401,593
Total	29,396,410	38,588,220
Gross unrealized loss
Up to 12 months	217,468	651,315
Greater than 12 months	184,963	86,794
Total	402,431	738,109
U.S. agency securities
Fair value
Up to 12 months	0	243,065
Greater than 12 months	244,589	0
Total	244,589	243,065
Gross unrealized loss
Up to 12 months	0	6,602
Greater than 12 months	5,172	0
Total	5,172	6,602
Mortgage-backed securities
Fair value
Up to 12 months	16,977,703	23,646,101
Greater than 12 months	9,094,355	5,401,593
Total	26,072,058	29,047,694
Gross unrealized loss
Up to 12 months	193,348	404,287
Greater than 12 months	151,151	86,794
Total	344,499	491,081
Municipal bonds
Fair value
Up to 12 months	1,600,601	8,798,581
Greater than 12 months	1,479,162	0
Total	3,079,763	8,798,581
Gross unrealized loss
Up to 12 months	24,120	239,306
Greater than 12 months	28,640	0
Total	$ 52,760	239,306
Corporate bonds
Fair value
Up to 12 months		498,880
Greater than 12 months		0
Total		498,880
Gross unrealized loss
Up to 12 months		1,120
Greater than 12 months		0
Total		$ 1,120

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Loans Receivable (Summary of Loans Receivable) (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	$ 59,423,405		$ 61,166,670
Discounts on loans purchased	(35,557)		(56,707)
Deferred loan costs (fees)	(30,987)		(46,462)
Allowance for loan losses	(516,319)	$ (498,450)	(487,114)	$ (474,183)	$ (516,255)	$ (505,178)
Loans receivable, net	58,840,542		60,576,387
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	46,290,029		47,315,025
Allowance for loan losses	(347,656)	(326,526)	(319,849)	(316,613)	(367,057)	(366,858)
Non-owner occupied one-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	2,898,603		3,650,171
Allowance for loan losses	(25,152)	(30,350)	(28,231)	(29,475)	(31,963)	(44,510)
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	3,858,437		3,596,717
Allowance for loan losses	(40,091)	(38,453)	(37,135)	(33,307)	(30,309)	(32,443)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	6,376,336		6,604,757
Allowance for loan losses	$ (103,420)	$ (103,121)	$ (101,899)	$ (94,788)	$ (86,926)	$ (61,367)

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Loans Receivable (Narrative) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($) loan	Dec. 31, 2016 USD ($) loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 405,920	$ 422,949
Loans receivable with fixed rates of interest	41,000,000	43,100,000
Loans receivable with variable rates of interest	$ 18,400,000	$ 18,100,000
Number of impaired loans | loan	1	1
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	30 years
Loan amount, percentage of appraised value threshold	75.00%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum term on loans	30 years
Loan amount, percentage of appraised value threshold	75.00%
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 207,434	$ 226,722

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Loans Receivable (Allowance for Loan Losses) (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	$ 0		$ 0
Allowance for loan losses, Collectively evaluated for impairment	516,319		487,114
Allowance for loan losses, Total	516,319	$ 498,450	487,114	$ 474,183	$ 516,255	$ 505,178
Loans receivable, Individually evaluated for impairment	285,038		297,538
Loans receivable, Collectively evaluated for impairment	59,138,367		60,869,132
Total loans receivable	59,423,405		61,166,670
One-to-four family residential
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	0		0
Allowance for loan losses, Collectively evaluated for impairment	347,656		319,849
Allowance for loan losses, Total	347,656	326,526	319,849	316,613	367,057	366,858
Loans receivable, Individually evaluated for impairment	0		0
Loans receivable, Collectively evaluated for impairment	46,290,029		47,315,025
Total loans receivable	46,290,029		47,315,025
Non-owner occupied one-to-four family residential
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	0		0
Allowance for loan losses, Collectively evaluated for impairment	25,152		28,231
Allowance for loan losses, Total	25,152	30,350	28,231	29,475	31,963	44,510
Loans receivable, Individually evaluated for impairment	0		0
Loans receivable, Collectively evaluated for impairment	2,898,603		3,650,171
Total loans receivable	2,898,603		3,650,171
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	0		0
Allowance for loan losses, Collectively evaluated for impairment	40,091		37,135
Allowance for loan losses, Total	40,091	38,453	37,135	33,307	30,309	32,443
Loans receivable, Individually evaluated for impairment	285,038		297,538
Loans receivable, Collectively evaluated for impairment	3,573,399		3,299,179
Total loans receivable	3,858,437		3,596,717
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	0		0
Allowance for loan losses, Collectively evaluated for impairment	103,420		101,899
Allowance for loan losses, Total	103,420	$ 103,121	101,899	$ 94,788	$ 86,926	$ 61,367
Loans receivable, Individually evaluated for impairment	0		0
Loans receivable, Collectively evaluated for impairment	6,376,336		6,604,757
Total loans receivable	$ 6,376,336		$ 6,604,757

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Loans Receivable (Allowance for Loan Losses by Segment) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	$ 498,450	$ 516,255	$ 487,114	$ 505,178
Charge-offs	131	42,072	24,999	51,295
Recoveries	0	0	204	300
Provisions	18,000	0	54,000	20,000
Ending Balance	516,319	474,183	516,319	474,183
One-to-four family residential
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	326,526	367,057	319,849	366,858
Charge-offs	0	0	10,945	5,610
Recoveries	0	0	133	0
Provisions	21,130	(50,444)	38,619	(44,635)
Ending Balance	347,656	316,613	347,656	316,613
Non-owner occupied one-to-four family residential
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	30,350	31,963	28,231	44,510
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provisions	(5,198)	(2,488)	(3,079)	(15,035)
Ending Balance	25,152	29,475	25,152	29,475
Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	38,453	30,309	37,135	32,443
Charge-offs	0	28,730	0	28,730
Recoveries	0	0	0	0
Provisions	1,638	31,728	2,956	29,594
Ending Balance	40,091	33,307	40,091	33,307
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning Balance	103,121	86,926	101,899	61,367
Charge-offs	131	13,342	14,054	16,955
Recoveries	0	0	71	300
Provisions	430	21,204	15,504	50,076
Ending Balance	$ 103,420	$ 94,788	$ 103,420	$ 94,788

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Loans Receivable (Credit Quality Indicators by Loan Segment) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	$ 59,423,405	$ 61,166,670
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	56,221,091	58,484,957
Special mention/watch
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	2,483,472	1,574,845
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	718,842	1,106,868
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
One-to-four family residential
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	46,290,029	47,315,025
One-to-four family residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	44,327,329	45,851,480
One-to-four family residential | Special mention/watch
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,552,019	978,513
One-to-four family residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	410,681	485,032
One-to-four family residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Non-owner occupied one-to-four family residential
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	2,898,603	3,650,171
Non-owner occupied one-to-four family residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	2,528,979	3,299,494
Non-owner occupied one-to-four family residential | Special mention/watch
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	369,624	36,298
Non-owner occupied one-to-four family residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	314,379
Non-owner occupied one-to-four family residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	3,858,437	3,596,717
Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	3,313,998	3,009,623
Commercial real estate | Special mention/watch
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	257,381	289,556
Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	287,058	297,538
Commercial real estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	6,376,336	6,604,757
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	6,050,785	6,324,360
Consumer | Special mention/watch
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	304,448	270,478
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	21,103	9,919
Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	$ 0	$ 0

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Loans Receivable (Past Due Loans) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	$ 2,109,571	$ 1,925,983
Current	57,313,834	59,240,687
Total loans receivable	59,423,405	61,166,670
Recorded investment, 90 days past due and still accruing	234,329	251,255
30 to 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	1,068,130	923,733
60 to 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	369,429	388,699
90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	672,012	613,551
One-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	1,378,580	1,236,522
Current	44,911,449	46,078,503
Total loans receivable	46,290,029	47,315,025
Recorded investment, 90 days past due and still accruing	228,226	193,251
One-to-four family residential | 30 to 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	676,500	706,135
One-to-four family residential | 60 to 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	323,229	272,378
One-to-four family residential | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	378,851	258,009
Non-owner occupied one-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	177,538	92,937
Current	2,721,065	3,557,234
Total loans receivable	2,898,603	3,650,171
Recorded investment, 90 days past due and still accruing	0	56,639
Non-owner occupied one-to-four family residential | 30 to 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	177,538	0
Non-owner occupied one-to-four family residential | 60 to 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	36,298
Non-owner occupied one-to-four family residential | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	56,639
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	287,058	324,681
Current	3,571,379	3,272,036
Total loans receivable	3,858,437	3,596,717
Recorded investment, 90 days past due and still accruing	0	0
Commercial real estate | 30 to 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	27,143
Commercial real estate | 60 to 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Commercial real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	287,058	297,538
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	266,395	271,843
Current	6,109,941	6,332,914
Total loans receivable	6,376,336	6,604,757
Recorded investment, 90 days past due and still accruing	6,103	1,365
Consumer | 30 to 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	214,092	190,455
Consumer | 60 to 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	46,200	80,023
Consumer | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	$ 6,103	$ 1,365

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Loans Receivable (Loans on Nonaccrual Status) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment, nonaccrual status	$ 437,683	$ 912,251
One-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment, nonaccrual status	150,625	291,779
Non-owner occupied one-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment, nonaccrual status	0	314,380
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment, nonaccrual status	287,058	297,538
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment, nonaccrual status	$ 0	$ 8,554

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Deposits (Schedule of Deposits) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Banking and Thrift [Abstract]
Statement savings	$ 14,529,038	$ 12,031,554
Money market plus	11,975,410	11,169,038
NOW	18,382,024	18,489,727
Certificates of deposit	40,516,247	45,399,361
Deposits	$ 85,402,719	$ 87,089,680

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Deposits (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Banking and Thrift [Abstract]
Non-interest bearing deposits	$ 4.7	$ 4.8

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Taxes on Income (Provision/Benefit) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current federal income tax expense (benefit)			$ (310)	$ 24,747
Current state income tax expense (benefit)			5,700	11,268
Current income tax expense (benefit)			5,390	36,015
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Deferred federal income tax expense (benefit)			(64,687)	(11,000)
Deferred state income tax expense (benefit)			(1,000)	8,000
Deferred income tax expense (benefit)			(65,687)	(3,000)
Federal income tax expense (benefit)			(64,997)	13,747
State income tax expense (benefit)			4,700	19,268
Income tax expense (benefit)	$ (17,896)	$ 82,100	$ (60,297)	$ 33,015

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Taxes on Income (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal income tax rate (as a percent)	34.00%	34.00%
Unrecognized tax benefit		$ 0
Retaining earnings on which income taxes have not been provided	$ 2,134	$ 2,134
Increase in unrecognized tax benefits resulting from prior period tax positions	$ 800

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Taxes on Income (Effective Tax Rate Reconciliation) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Federal tax at statutory rate			$ 33,164	$ 85,004
Items affecting federal income tax rate:
State taxes on income, net of federal benefit			3,102	12,717
Tax-exempt income			(64,366)	(94,458)
Bank-owned life insurance			(31,613)	0
Valuation allowance			15,000	0
Other			(15,584)	29,752
Income tax expense (benefit)	$ (17,896)	$ 82,100	$ (60,297)	$ 33,015

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Taxes on Income (Deferred Tax Assets and Liabilities) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Deferred directors’ fees	$ 322,000	$ 338,000
Allowance for loan losses	193,000	182,000
Net operating loss carryforward	186,000	138,000
AMT credit	44,924	35,000
Charitable contribution	88,000	86,000
Professional fees	76,000	77,000
Securities available-for-sale	79,977	246,159
Fixed assets	29,000	0
Other	19,182	28,420
Gross deferred tax assets	1,038,083	1,130,579
Valuation allowance	(121,000)	(106,000)
Net deferred tax assets	917,083	1,024,579
Deferred tax liabilities:
Prepaid expenses	(21,000)	(21,000)
FHLB stock dividends	(38,000)	(38,000)
Fixed assets	0	(6,000)
Intangible assets	(24,000)	(25,000)
Gross deferred tax liabilities	(83,000)	(90,000)
Net deferred tax assets	$ 834,083	$ 934,579

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Stockholders' Equity (Narrative) (Details)	3 Months Ended						9 Months Ended
	Sep. 30, 2017 $ / shares shares	Jun. 30, 2017 $ / shares	Mar. 31, 2017 $ / shares	Sep. 30, 2016 $ / shares shares	Jun. 30, 2016 $ / shares	Mar. 31, 2016 $ / shares	Sep. 30, 2017 $ / shares shares	Sep. 30, 2016 $ / shares shares	Jul. 13, 2016
Equity, Class of Treasury Stock [Line Items]
Dividends declared per share of common stock (in usd per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0	$ 0.06
Dividends paid per share of common stock (in usd per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0	$ 0.06	$ 0.15	$ 0.10
Exchange ratio applied to the Conversion									0.8115
Common stock
Equity, Class of Treasury Stock [Line Items]
Number of shares of common stock repurchased (in shares) | shares	0			0			0	0

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Stockholders' Equity (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Consolidated
Tangible capital:
Actual, Amount	$ 29,022	$ 29,192
Actual, Percent	23.50%	24.30%
For capital adequacy purposes, Amount	$ 4,946	$ 4,812
For capital adequacy purposes, Percent	4.00%	4.00%
Common equity tier 1:
Amount, Amount	$ 29,022	$ 29,192
Actual, Percent	57.40%	55.30%
For capital adequacy purposes, Amount	$ 2,909	$ 2,706
For capital adequacy purposes, Percent	5.75%	5.13%
To be well-capitalized under prompt correction action provisions, Amount	$ 3,288	$ 3,432
To be well-capitalized under prompt correction action provisions, Percent	6.50%	6.50%
Risk-based capital:
Actual, Amount	$ 29,538	$ 29,679
Actual, Percent	58.40%	56.20%
For capital adequacy purposes, Amount	$ 4,679	$ 4,554
For capital adequacy purposes, Percent	9.25%	8.63%
To be well-capitalized under prompt correction action provisions, Amount	$ 5,059	$ 5,280
To be well-capitalized under prompt correction action provisions, Percent	10.00%	10.00%
Tier 1 risk-based capital:
Actual, Amount	$ 29,022	$ 29,192
Actual, Percent	57.40%	55.30%
For capital adequacy purposes, Amount	$ 3,668	$ 3,498
For capital adequacy purposes, Percent	7.25%	6.63%
To be well-capitalized under prompt correction action provisions, Amount	$ 4,047	$ 4,224
To be well-capitalized under prompt correction action provisions, Percent	8.00%	8.00%
WCF Financial Bank
Tangible capital:
Actual, Amount	$ 19,264	$ 18,993
Actual, Percent	16.40%	16.00%
For capital adequacy purposes, Amount	$ 4,702	$ 4,753
For capital adequacy purposes, Percent	4.00%	4.00%
To be well-capitalized under prompt correction action provisions, Amount	$ 5,877	$ 5,941
To be well-capitalized under prompt correction action provisions, Percent	5.00%	5.00%
Common equity tier 1:
Amount, Amount	$ 19,264	$ 18,993
Actual, Percent	39.30%	36.80%
For capital adequacy purposes, Amount	$ 2,815	$ 2,648
For capital adequacy purposes, Percent	5.75%	5.13%
To be well-capitalized under prompt correction action provisions, Amount	$ 3,182	$ 3,359
To be well-capitalized under prompt correction action provisions, Percent	6.50%	6.50%
Risk-based capital:
Actual, Amount	$ 19,780	$ 19,480
Actual, Percent	40.40%	37.70%
For capital adequacy purposes, Amount	$ 4,529	$ 4,457
For capital adequacy purposes, Percent	9.25%	8.63%
To be well-capitalized under prompt correction action provisions, Amount	$ 4,896	$ 5,167
To be well-capitalized under prompt correction action provisions, Percent	10.00%	10.00%
Tier 1 risk-based capital:
Actual, Amount	$ 19,264	$ 18,993
Actual, Percent	39.30%	36.80%
For capital adequacy purposes, Amount	$ 3,550	$ 3,423
For capital adequacy purposes, Percent	7.25%	6.63%
To be well-capitalized under prompt correction action provisions, Amount	$ 3,917	$ 4,134
To be well-capitalized under prompt correction action provisions, Percent	8.00%	8.00%

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Fair Value (Narrative) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
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

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Fair Value (Fair Value Measurements) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 40,900,127	$ 44,652,837
U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	244,588	243,065
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	28,591,398	31,396,806
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	12,064,141	12,514,086
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value		498,880
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	40,900,127	44,652,837
Recurring | U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	244,588	243,065
Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	28,591,398	31,396,806
Recurring | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	12,064,141	12,514,086
Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value		498,880
Recurring | Level 1 inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 1 inputs | U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 1 inputs | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 1 inputs | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 1 inputs | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value		0
Recurring | Level 2 inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	40,900,127	44,652,837
Recurring | Level 2 inputs | U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	244,588	243,065
Recurring | Level 2 inputs | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	28,591,398	31,396,806
Recurring | Level 2 inputs | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	12,064,141	12,514,086
Recurring | Level 2 inputs | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value		498,880
Recurring | Level 3 inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 3 inputs | U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 3 inputs | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Recurring | Level 3 inputs | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 0	0
Recurring | Level 3 inputs | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value		$ 0

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Fair Value (Estimated Fair Value of Financial Instruments) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Financial assets:
Securities available-for-sale, at fair value	$ 40,900,127	$ 44,652,837
Carrying amount
Financial assets:
Securities available-for-sale, at fair value	40,900,127	44,652,837
Approximate fair value
Financial assets:
Securities available-for-sale, at fair value	40,900,127	44,652,837
Level 1 | Carrying amount
Financial assets:
Cash and due from banks	4,171,094	1,716,578
Federal funds sold	715,000	1,306,000
Time deposits in other financial institutions	4,791,175	5,037,068
FHLB stock	243,400	354,800
Bankers’ Bank stock	147,500	147,500
Accrued interest receivable	405,920	422,949
Financial liabilities:
Accrued interest payable	93,681	3,196
Level 1 | Approximate fair value
Financial assets:
Cash and due from banks	4,171,094	1,716,578
Federal funds sold	715,000	1,306,000
Time deposits in other financial institutions	4,791,175	5,037,068
FHLB stock	243,400	354,800
Bankers’ Bank stock	147,500	147,500
Accrued interest receivable	405,920	422,949
Financial liabilities:
Accrued interest payable	93,681	3,196
Level 2 | Carrying amount
Financial assets:
Loans receivable, net	58,840,542	60,576,387
Financial liabilities:
Deposits	85,402,719	87,089,680
FHLB advances	2,500,000	5,500,000
Level 2 | Approximate fair value
Financial assets:
Loans receivable, net	59,472,542	61,896,952
Financial liabilities:
Deposits	80,589,197	83,357,680
FHLB advances	$ 2,500,000	$ 5,504,950

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Commitments and Contingencies (Details) - Commitments to extend credit - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheets risks, liability	$ 297	$ 360
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	5.50%	5.50%

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Equity [Abstract]
Unrealized holding (losses) gains on securities available-for-sale	$ (215,252)	$ (666,625)
Tax impact	79,977	246,159
Accumulated other comprehensive income (loss)	$ (135,275)	$ (420,466)