10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

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

For the quarterly period ended:  September 30, 2015

OR

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

For the transition period from:                    to

Commission file number: 0-25976

UNITED BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	23-2802415
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

30 S. 15th Street
Philadelphia, PA	19102
(Address of principal	(Zip code)
executive offices)

Registrant's telephone number, including area code:  (215)351-4600

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

Yes [ ]   No [ X]

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.

(Check one):
Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ]	Smaller reporting company [ X]
(Do not check if a smaller
reporting company)

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

Yes [ ]  No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of January 8, 2016 the aggregate number of the shares of the Registrant's Common Stock issued was 826,921.

The Series Preferred Stock consists of 500,000 authorized shares of stock of which 250,000 have been designated as Series A Preferred stock of which 99,342 shares are issued as of January 8, 2016.

EXPLANATORY NOTE

The sole purpose of this amendment to our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015, originally filed with the Securities and Exchange Commission on November 18, 2015, is to furnish Exhibit 101 to the Form 10-Q which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the financial statements and notes included in Part 1, Item 1 of the Form 10-Q.

No changes have been made to the Form 10-Q other than the furnishing of Exhibit 101 described above. This amendment does not reflect subsequent events occurring after the original filing date of the Form 10-Q or modify or update in any way disclosures made in the Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the Interactive Data File on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.

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.

	UNITED BANCSHARES, INC
	(Registrant)
January 8, 2016	/s/ Evelyn F. Smalls
Date	Evelyn F. Smalls
	President and Chief Executive Officer
January 8, 2016	/s/ Brenda Hudson-Nelson
Date	Executive Vice President,
	Chief Financial Officer

Exhibit No.	Description
3.1	Certificate of Incorporation (1)
3.2	Bylaws (1)
31.1	Rule 13a-14(a)/15d-14(a) Certifications (1)
31.2	Rule 13a-14(a)/15d-14(a) Certifications (1)
32.1	Section 1350 Certifications (1)
32.2 101.INS 101.SCH 101.CAL 101.DEF 101.LAB 101.PRE	Section 1350 Certifications (1) XBRL Instance Document (2) XBRL Taxonomy Extension Schema Document(2) XBRL Taxonomy Extension Calculation Linkbase Document(2) XBRL Taxonomy Extension Definition Linkbase Document(2) XBRL Taxonomy Extension Label Linkbase Document(2) XBRL Taxonomy Extension Presentation Linkbase Document(2)

(1)	Filed previously.
(2)	Furnished herewith.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information:
Entity Registrant Name	UNITED BANCSHARES INC /PA
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Central Index Key	0000944792
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		826,921
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	upoh

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CONSOLIDATED BALANCE SHEETS - USD ($)		Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks		$ 2,406,637	$ 1,919,494
Interest-bearing deposits with banks		310,575	310,088
Federal funds sold		10,118,000	1,007,000
Cash and cash equivalents		12,835,212	3,236,582
Investment securities available-for-sale, at fair value		7,164,289	8,539,892
Loans held for sale		535,344	6,160,183
Loans held at fair value		2,473,475	628,750
Loans, net of unearned discounts and deferred fees		34,554,640	40,861,890
Less allowance for loan losses		(469,259)	(734,567)
Net loans		34,085,381	40,127,323
Bank premises and equipment, net		516,218	549,466
Accrued interest receivable		189,129	249,571
Other real estate owned		718,793	563,543
Prepaid expenses and other assets		627,249	408,956
Total assets		59,145,090	60,464,266
Liabilities:
Demand deposits, noninterest-bearing		14,953,410	14,984,387
Demand deposits, interest-bearing		14,738,172	13,738,476
Savings deposits		11,596,740	12,091,282
Time deposits, under $250,000		8,085,606	9,393,551
Time deposits, $250,000 and over		6,501,126	6,754,617
Total deposits		55,875,054	56,962,313
Accrued interest payable		13,228	16,253
Accrued expenses and other liabilities		345,916	305,060
Total liabilities		56,234,198	57,283,626
Shareholders' equity:
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 124,342 issued and outstanding at September 30, 2015 and 136,842 issued and outstanding at December 31, 2014		1,243	1,368
Common Stock		8,269	10,686
Additional paid-in-capital		14,752,394	14,749,852
Accumulated deficit		(11,881,049)	(11,568,043)
Accumulated other comprehensive income (loss)		30,035	(13,223)
Total shareholders' equity		2,910,892	3,180,640
Total liabilities and shareholders' equity		59,145,090	60,464,266
Common Stock
Shareholders' equity:
Common Stock	[1]	$ 8,269	8,769
Class B Non-voting Common Stock
Shareholders' equity:
Common Stock	[2]		$ 1,917

[1] Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding at September 30, 2015 and 876,921 issued and outstanding at December 31, 2014

[2] Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value; 191,667 issued and outstanding at December 31, 2014

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares issued	826,921	876,921
Common stock, shares outstanding	826,921	876,921
Series A Preferred Stock
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	124,342	136,842
Preferred stock, shares outstanding	124,342	136,842
Preferred stock, Dividend Rate	6.00%	6.00%
Class B Non-voting Common Stock
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	250,000	250,000
Common stock, shares issued		191,667
Common stock, shares outstanding		191,667

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income:
Interest and fees on loans	$ 588,991	$ 677,703	$ 1,833,681	$ 1,963,866
Interest on investment securities	42,561	57,763	135,152	177,555
Interest on federal funds sold	4,739	2,004	8,998	6,577
Interest on time deposits with other banks	166	166	492	3,153
Total interest income	636,457	737,636	1,978,323	2,151,151
Interest expense:
Interest on time deposits	9,472	10,194	29,264	29,697
Interest on demand deposits	6,426	6,806	18,705	20,157
Interest on savings deposits	1,493	1,521	4,430	4,667
Total interest expense	17,391	18,521	52,399	54,521
Net interest income	619,066	719,115	1,925,924	2,096,630
Provision (credit) for loan losses	83,000	62,000	(17,000)	132,000
Net interest income after provision for loan losses	536,066	657,115	1,942,924	1,964,630
Noninterest income:
Customer service fees	89,368	92,654	324,920	290,629
ATM fee income	27,661	36,002	90,810	123,249
Gain on sale of loans	176,229	10,618	380,625	10,618
Gain on sale of other real estate	4,048	1,348	1,759	1,348
Net change in fair value of financial instruments	19,225	71,695	50,104	69,116
Loan syndication fees			85,000	87,550
Other income	17,245	18,194	43,854	71,080
Total noninterest income	333,776	230,511	977,072	653,590
Noninterest expense:
Salaries, wages and employee benefits	377,504	394,190	1,180,883	1,208,180
Occupancy and equipment	240,517	247,361	742,761	743,864
Office operations and supplies	76,253	72,216	226,635	206,193
Marketing and public relations	7,935	10,477	34,124	47,747
Professional services	76,977	89,296	242,392	235,436
Data processing	94,218	103,327	281,305	323,198
Other real estate expense (income)	9,999	(30,328)	(53,215)	6,828
Loan and collection costs	42,345	43,218	146,116	82,146
Deposit insurance assessments	34,200	34,200	100,600	106,200
Other operating	119,803	106,665	331,401	265,623
Total noninterest expense	1,079,751	1,070,622	3,233,002	3,225,415
Net loss before income taxes	$ (209,909)	$ (182,996)	$ (313,006)	$ (607,195)
Provision for income taxes
Net loss	$ (209,909)	$ (182,996)	$ (313,006)	$ (607,195)
Net loss per common share-basic and diluted	$ (0.25)	$ (0.17)	$ (0.32)	$ (0.57)
Weighted average number of common shares	826,921	1,068,588	986,487	1,068,588
Comprehensive loss:
Net loss	$ (209,909)	$ (182,996)	$ (313,006)	$ (607,195)
Unrealized gains on available for sale securities	64,491	109,208	43,258	240,898
Total comprehensive loss	$ (145,418)	$ (73,788)	$ (269,748)	$ (366,297)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (313,006)	$ (607,195)
Adjustments to reconcile net loss to net cash provided by operating activities:
(Credit)provision for loan losses	(17,000)	132,000
Accretion of discounts on investments	(1,220)	(1,301)
Amortization of premiums on investments	14,617	18,869
Depreciation on fixed assets	132,713	130,544
Net change in fair value of financial instruments	(50,104)	(69,116)
Gain on sale of loans	(380,625)	(10,618)
(Write-up) Write-down of other real estate owned	(88,460)	(33,766)
Gain on sale of other real estate owned	(1,759)	(1,348)
Proceeds from the sale of loans held-for-sale	6,433,243	1,755,721
Loans originated for sale	(377,675)	(496,982)
Increase in accrued interest receivable and other assets	(157,850)	(48)
Increase (decrease) in accrued interest payable and other liabilities	37,831	(72,460)
Net cash provided by operating activities	5,230,705	744,300
Cash flows from investing activities:
Proceeds from maturity and principal reductions of available-for-sale investment securities	1,405,542	321,966
Purchase of securities available-for-sale	(79)	(32)
Proceeds from sale of other real estate	83,209	29,642
Net decrease (increase) in loans	5,910,701	(1,344,911)
Net increase in loans held at fair value	(1,844,725)	(167,159)
Purchase of bank premises and equipment	(99,465)	(69,714)
Net cash provided by (used in) investing activities	5,455,183	(1,230,208)
Cash flows from financing activities:
Net (decrease) increase in deposits	(1,087,258)	219,548
Net cash used in financing activities	(1,087,258)	219,548
Net increase in cash and cash equivalents	9,598,630	(266,360)
Cash and cash equivalents at beginning of period	3,236,582	5,789,778
Cash and cash equivalents at end of period	12,835,212	5,523,418
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	55,424	51,949
Noncash transfer of loans to other real estate	$ 148,241	$ 192,485

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1. Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Notes

1. Significant Accounting Policies

1. Significant Accounting Policies

 United Bancshares, Inc. (the "Company") is a bank holding company registered under the Bank Holding Company Act of 1956.  The Company's principal activity is the ownership and management of its wholly owned subsidiary, United Bank of Philadelphia (the "Bank").

During interim periods, the Company follows the accounting policies set forth in its Annual Report on Form 10-K filed with the Securities and Exchange Commission.  Readers are encouraged to refer to the Company's Form 10-K for the fiscal year ended December 31, 2014 when reviewing this Form 10-Q.  Quarterly results reported herein are not necessarily indicative of results to be expected for other quarters.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the Company's consolidated financial position as of September 30, 2015 and December 31, 2014 and the consolidated results of its operations and its cash flows for the three and nine months ended September 30, 2015 and 2014.

Management’s Use of Estimates

The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.  Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities.

Commitments

In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments.

Contingencies

The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company.

Loans Held for Sale

From time to time, the Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market.  These loans are carried at estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. 

Loans Held at Fair Value

The Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market.  Management has elected to carry these loans at fair value.  Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries.

Loans

The Bank has both the positive intent and ability to hold the majority of its loans to maturity.  These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses.  Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process.  Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term.

The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.  The Bank does not allocate reserves for unfunded commitments to fund lines of credit.

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  The Bank will identify and assess loans that may be impaired through any of the following processes:

·       During regularly scheduled meetings of the Asset Quality Committee

·       During regular reviews of the delinquency report

·       During the course of routine account servicing, annual review, or credit file update

·       Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable Loan-to-Value ratio

Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures.

Non-accrual and Past Due Loans.

Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due.  The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more.  If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Interest on loans past due 90 days or more ceases to accrue except for loans that are well collateralized and in the process of collection.  When a loan is placed on nonaccrual status, previously accrued and unpaid interest is reversed out of income.  Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Income Taxes

Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities.  Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not.   For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards.  If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

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2. Net Loss Per Share

9 Months Ended

Sep. 30, 2015

Notes

2. Net Loss Per Share

2. Net Loss Per Share

The calculation of net loss per share follows:

	Three Months Ended September 30, 2015	Three Months Ended September 30, 2014	Nine Months Ended September 30, 2015	Nine Months Ended September 30, 2014
Basic:
Net loss available to common shareholders	$(209,909)	$(182,996)	$(313,006)	$(607,195)
Average common shares outstanding-basic	826,921	1,068,588	986,487	1,068,588
Net loss per share-basic	$(0.25)	$(0.17)	$(0.32)	$(0.57)
Diluted:
Average common shares-diluted	826,921	1,068,588	986,487	1,068,588
Net loss per share-diluted	$(0.25)	$(0.17)	$(0.32)	$(0.57)

Wells Fargo (formerly Wachovia Corporation) owned 241,666 shares of UBS Common Stock (50,000 voting shares); however, on February 18, 2015, Wells Fargo returned all shares (voting and non voting) for cancellation.

The preferred stock is non cumulative and the Company is restricted from paying dividends.  Therefore, no effect of the preferred stock is included in the loss per share calculations.

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3. Changes in Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Notes

3. Changes in Accumulated Other Comprehensive Income

3. Changes in Accumulated Other Comprehensive Income

The following table presents the changes in other comprehensive income:

	Three Months Ended September 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$97	$(33)	$64
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$97	$(33)	$64
	Three Months Ended September 30, 2014
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$163	$(54)	$109
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$163	$(54)	$109
	Nine Months Ended September 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$66	$(23)	$43
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$66	$(23)	$43
	Nine Months Ended September 30, 2014
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$359	$(118)	$241
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$359	$(118)	$241

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4. New Authoritative Accounting Guidance

9 Months Ended

Sep. 30, 2015

Notes

4. New Authoritative Accounting Guidance

4. New Authoritative Accounting Guidance

ASU 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan though completion of a deed in lieu of foreclosure or through a similar legal agreement.  The amendments require interim and annual disclosure of both the amount of the foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this amendment had no impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

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5. Investment Securities

9 Months Ended

Sep. 30, 2015

Notes

5. Investment Securities

5.  Investment Securities

The following is a summary of the Company's investment portfolio: 

(In 000’s)	September 30, 2015
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$3,097	$2	$(9)	$3,090
Government Sponsored Enterprises residential mortgage-backed securities	3,893	63	(12)	3,944
Investments in money market funds	130	-	-	130
	$7,120	$65	$(21)	$7,164

	December 31, 2014
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$4,097	$-	$(61)	$4,036
Government Sponsored Enterprises residential mortgage-backed securities	4,333	60	(20)	4,374
Investments in money market funds	130	-	-	130
	$8,560	$60	$(81)	$8,540

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of September 30, 2015, are as follows:

(In 000’s)	Amortized Cost	Fair Value
Due in one year	$-	$-
Due after one year through five years	-	-
Due after five years through ten years	3,097	3,090
Government Sponsored Enterprises residential mortgage-backed securities	3,893	3,944
Total debt securities	6,990	7,034
Investments in money market funds	130	130
	$7,120	$7,164

Expected maturities will differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without any penalties.

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at September 30, 2015:

	Number	Less than 12 months		12 months or longer		Total
Description of	Of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	Securities	Value	Losses	Value	losses	value	Losses
U.S. Government agency securities	6	$248	$(8)	$1,491	$(1)	$1,739	$(9)
Government Sponsored Enterprises residential mortgage-backed securities	4	231	(4)	755	(8)	986	(12)
Total temporarily impaired investment Securities	10	$479	$(12)	$2,246	$(9)	$2,725	$(21)

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2014:

	Number	Less than 12 months		12 months or longer		Total
Description of	of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	securities	Value	Losses	Value	Losses	value	Losses
U.S. Government  agency securities	13	$246	$(4)	$3,290	$(57)	$3,536	$(61)
Government Sponsored Enterprises residentialortgage-backed securities	6	-	-	1,440	(20)	1,440	$(20)
Total temporarily impaired investment Securities	19	$246	$(4)	$4,730	$(77)	$4,976	$(81)

Government Sponsored Enterprises residential mortgage-backed securities. Unrealized losses on the Company’s investment in Government Sponsored Enterprises residential mortgage-backed securities were caused by market interest rate increases. The Company purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Because the decline in fair value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired.

U.S. Government and Agency Securities. Unrealized losses on the Company's investments in direct obligations of U.S. government agencies were caused by market interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired.

The Company has a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary.  This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.  On a quarterly basis, the Company reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. The Company considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, the intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in value.

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6. Loans and Allowance For Loan Losses

9 Months Ended

Sep. 30, 2015

Notes

6. Loans and Allowance For Loan Losses

6. Loans and Allowance for Loan Losses

The composition of the Bank’s loan portfolio is as follows:

(Dollars in thousands)	September 30, 2015	December 31, 2014
Commercial and industrial	$3,351	$4,635
Commercial real estate	27,010	31,556
Consumer real estate	2,926	3,297
Consumer loans other	1,268	1,373
Total loans	$34,555	$40,861

The determination of the allowance for loan losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance is the accumulation of three components that are calculated based on various independent methodologies that are based on management’s estimates.  The three components are as follows:

·       Specific Loan Evaluation Component – Includes the specific evaluation of impaired loans.  

·       Historical Charge-Off Component – Applies an annualized eight-quarter rolling historical charge-off rate to all pools of non-classified loans.

·       Qualitative Factors Component – The loan portfolio is broken down into multiple homogenous sub classifications, upon which multiple factors (such as delinquency trends, economic conditions, concentrations, growth/volume trends, and management/staff ability) are evaluated, resulting in an allowance amount for each of the sub classifications. The sum of these amounts comprises the Qualitative Factors Component.

All of these factors may be susceptible to significant change.  During the nine months ended September 30, 2015, the Bank reduced several of its qualitative factors in the commercial real estate segment of the loan portfolio for which it has never experienced losses or charge-offs.  In addition, the average historical loss factors increased for the commercial and industrial segment of the portfolio as a result of $212,000 charge-offs during the quarter. To the extent actual outcomes differ from management’s estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods.

The following table presents an analysis of the allowance for loan losses.

(in 000's)	For the Three months ended September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total
Beginning balance	$320	$236	$23	$17	$596
Provision (credit) for loan losses	100	(9)	(4)	(4)	83
Charge-offs	(212)	-	-	(2)	(214)
Recoveries	2	-	1	1	4
Net (charge-offs) recoveries	(210)	-	1	(1)	(210)
Ending balance	$210	$227	$20	$12	$469

(in 000's)	For the Three months ended September 30, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans  Other	Total
Beginning balance	$297	$295	$52	$13	$657
Provision (credit) for loan losses	74	5	(18)	1	62
Charge-offs	-	-	(19)	(7)	(26)
Recoveries	1	-	3	5	9
Net recoveries	1	-	(16)	(2)	(17)
Ending balance	$372	$300	$18	$12	$702

(in 000's)	For the Nine months ended September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total
Beginning balance	$403	$300	$20	$12	$735
Provision (credit) for loan losses	63	(73)	(4)	(3)	(17)
Charge-offs	(259)	-	-	(15)	(274)
Recoveries	3	-	4	18	25
Net (charge-offs) recoveries	(256)	-	4	3	(249)
Ending balance	$210	$227	$20	$12	$469

\\

(in 000's)	For the Nine months ended September 30, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Beginning balance	$483	$280	$59	$17	$839
Provision (credit) for loan losses	139	20	(28)	1	132
Charge-offs	(253)	-	(19)	(25)	(297)
Recoveries	3	-	6	19	28
Net (charge-offs)recoveries	(250)	-	(13)	(6)	(269)
Ending balance	$372	$300	$18	$12	$702

(in 000's)	September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$9	$47	$-	$-	$56
Loans collectively  evaluated for impairment	201	180	20	12	413
	$210	$227	$20	$12	$469
Loans, ending balance:
Loans individually evaluated for impairment	$196	$1,491	$-	$-	$1,687
Loans collectively  evaluated for impairment	3,155	25,519	2,926	1,268	32,868
Total	$3,351	$27,010	$2,926	$1,268	$34,555

	December 31, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$247	$27	$-	$-	$274
Loans collectively  evaluated for impairment	156	273	20	12	461
	$403	$300	$20	$12	$735
Loans, ending balance:
Loans individually evaluated for impairment	$382	$1,623	$-	$-	$2,005
Loans collectively  evaluated for impairment	4,253	29,933	3,297	1,373	38,856
Total	$4,635	$31,556	$3,297	$1,373	$40,861

Nonperforming and Nonaccrual and Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of September 30, 2015 is as follows:

		Accruing
	Loans	Loans 90 or
(In 000's)	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$110	$110	$1,532	$1,642
SBA loans	-	-	-	-	151	151
Asset-based	-	-	-	-	1,558	1,558
Total Commercial and industrial	-	-	110	110	3,241	3,351
Commercial real estate:
Commercial mortgages	606	54	969	1,629	11,770	13,399
SBA loans	-	-	109	109	564	673
Construction	-	-	-	-	2,529	2,529
Religious organizations	-	-	488	488	9,921	10,409
Total Commercial real estate	606	54	1,566	2,226	24,784	27,010
Consumer real estate:
Home equity loans	83	126	359	568	381	949
Home equity lines of credit	-	-	-	-	21	21
1-4 family residential mortgages	55	-	75	130	1,826	1,956
Total consumer real estate	138	126	434	698	2,228	2,926
Total real estate	744	180	2,000	2,924	27,012	29,936
Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	55	91	-	146	995	1,141
Other	-	-	-	-	127	127
Total consumer and other	55	91	-	146	1,122	1,268
Total loans	$799	$271	$2,110	$3,180	$31,376	$34,555

An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 is as follows:

		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
(In 000's)	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$248	$248	$2,315	$2,563
SBA loans	-	-	48	48	120	168
Asset-based	-	-	-	-	1,904	1,904
Total Commercial and industrial	-	-	296	296	4,339	4,635
Commercial real estate:
Commercial mortgages	17	83	985	1,085	14,385	15,470
SBA loans	-	-	118	118	407	525
Construction	-	-	-	-	3,423	3,423
Religious organizations	-	-	520	520	11,618	12,138
Total Commercial real estate	17	83	1,623	1,723	29,833	31,556
Consumer real estate:
Home equity loans	246	-	368	614	433	1,047
Home equity lines of credit	-	-	-	-	22	22
1-4 family residential mortgages	-	-	194	194	2,034	2,228
Total consumer real estate	246	-	562	808	2,489	3,297
Total real estate	263	83	2,185	2,531	32,322	34,853
Consumer and other:
Consumer installment	-	-	-	-	7	7
Student loans	136	88	-	224	997	1,221
Other	12	-	-	12	133	145
Total consumer and other	148	88	-	236	1,137	1,373
Total loans	$411	$171	$2,481	$3,063	$37,798	$40,861

Loan Origination/Risk Management.  The Bank has lending policies and procedures in place to maximize loan income within an acceptable level of risk.  Management reviews and approves these policies and procedures on a regular basis.  A reporting system supplements the review process by providing management with periodic reports related to loan origination, asset quality, concentrations of credit, loan delinquencies and non-performing and emerging problem loans.  Diversification in the portfolio is a means of managing risk with fluctuations in economic conditions.

Credit Quality Indicators.  For commercial loans, management uses internally assigned risk ratings as the best indicator of credit quality.  Each loan’s internal risk weighting is assigned at origination and updated at least annually and more frequently if circumstances warrant a change in risk rating.  The Bank uses a 1 through 8 loan grading system that follows regulatory accepted definitions as follows:

·       Risk ratings of “1” through “3” are used for loans that are performing and meet and are expected to continue to meet all of the terms and conditions set forth in the original loan documentation and are generally current on principal and interest payments.  Loans with these risk ratings are reflected as “Good/Excellent” and “Satisfactory” in the following table.

·       Risk ratings of “4” are assigned to “Pass/Watch” loans which may require a higher degree of regular, careful attention.  Borrowers may be exhibiting weaker balance sheets and positive but inconsistent cash flow coverage. Borrowers in this classification generally exhibit a higher level of credit risk and are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Loans with this rating would not normally be acceptable as new credits unless they are adequately secured and/or carry substantial guarantors. Loans with this rating are reflected as “Pass” in the following table.

·       Risk ratings of “5” are assigned to “Special Mention” loans that do not presently expose the Bank to a significant degree of risks, but have potential weaknesses/deficiencies deserving Management’s closer attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. No loss of principal or interest is envisioned.  Borrower is experiencing adverse operating trends, which potentially could impair debt, services capacity and may necessitate restructuring of credit.  Secondary sources of repayment are accessible and considered adequate to cover the Bank's exposure. However, a restructuring of the debt should result in repayment. The asset is currently protected, but is potentially weak. This category may include credits with inadequate loan agreements, control over the collateral or an unbalanced position in the balance sheet which has not reached a point where the liquidation is jeopardized but exceptions are considered material. These borrowers would have limited ability to obtain credit elsewhere.

·       Risk ratings of “6” are assigned to “Substandard” loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets must have a well-defined weakness. They are characterized by the distinct possibility that some loss is possible if the deficiencies are not corrected. The borrower’s recent performance indicated an inability to repay the debt, even if restructured. Primary source of repayment is gone or severely impaired and the Bank may have to rely upon the secondary source. Secondary sources of repayment (e.g., guarantors and collateral) should be adequate for a full recovery. Flaws in documentation may leave the bank in a subordinated or unsecured position when the collateral is needed for the repayment.

·       Risk ratings of “7” are assigned to “Doubtful” loans which have all the weaknesses inherent in those classified “Substandard” with the added characteristic that the weakness makes the collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.  The borrower's recent performance indicates an inability to repay the debt.  Recovery from secondary sources is uncertain.  The possibility of a loss is extremely high, but because of certain important and reasonably- specific pending factors, its classification as a loss is deferred.

·       Risk rating of “8” are assigned to “Loss” loans which are considered non-collectible and do not warrant classification as active assets.  They are recommended for charge-off if attempts to recover will be long term in nature.  This classification does not mean that an asset has no recovery or salvage value, but rather, that it is not practical or desirable to defer writing off the loss, although a future recovery may be possible.  Loss should always be taken in the period in which they surface and are identified as non-collectible as a result there is no tabular presentation.

For consumer and residential mortgage loans, management uses performing versus nonperforming as the best indicator of credit quality.  Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to contractual terms is in doubt.  These credit quality indicators are updated on an ongoing basis.  A loan is placed on nonaccrual status as soon as management believes there is doubt as to the ultimate ability to collect interest on a loan, but no later than 90 days past due.

The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.

(In 000's)	Commercial Loans September 30, 2015
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$1,120	$18	$-	$254	$-	$1,642
SBA loans	-	8	103	-	40	-	151
Asset-based	-	1,312	124	-	46	76	1,558
	250	2,440	245	-	340	76	3,351
Commercial real estate:
Commercial mortgages	-	10,718	1,114	620	724	223	13,399
SBA Loans	-	399	165	-	109	-	673
Construction	-	2,529	-	-	-	-	2,529
Religious organizations	-	7,427	2,057	722	203	-	10,409
	-	21,073	3,336	1,342	1,036	223	27,010
Total commercial loans	$250	$23,513	$3,581	$1,342	$1,376	$299	$30,361

	Residential Mortgage and Consumer Loans September 30, 2015
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$500	$359	$949
Home equity line of credit	21	-	21
1-4 family residential mortgages	1,881	75	1,956
	2,492	434	2,926
Consumer Other:
Consumer Installment	-	-	-
Student loans	1,141	-	1,141
Other	127	-	127
	1,268	-	1,268
Total  consumer loans	$3,760	$434	$4,194
Total loans				$34,555

(In 000's)	Commercial Loans, December 31, 2014
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$300	$1,321	$474	$220	$113	$135	$2,563
SBA loans	-	80	-	-	88	-	168
Asset-based	-	1,734	124	-	46	-	1,904
	300	3,135	598	220	247	135	4,635
Commercial real estate:
Commercial mortgages	-	13,024	724	57	1,348	317	15,470
SBA Loans	-	237	170	-	118	-	525
Construction	-	3,423	-	-	-	-	3,423
Religious organizations	-	9,730	1,185	703	520	-	12,138
	-	26,414	2,079	760	1,986	317	31,556
Total commercial loans	$300	$29,549	$2,677	$980	$2,233	$452	$36,191

	Residential Mortgage and Consumer Loans December 31, 2014
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$679	$368	$1,047
Home equity line of credit	22	-	22
1-4 family residential mortgages	2,034	194	2,228
	2,735	562	3,297
Consumer Other:
Consumer Installment	7	-	7
Student loans	1,221	-	1,221
Other	145	-	145
	1,373	-	1,373
Total  consumer loans	$4,108	$562	$4,670
Total loans				$40,861

Impaired Loans. The Bank identifies a loan as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank.   If these factors do not exist, the Bank will record interest payments on the cost recovery basis.

In accordance with guidance provided by ASC 310-10, Accounting by Creditors for Impairment of a Loan, management employs one of three methods to determine and measure impairment: the Present Value of Future Cash Flow Method; the Fair Value of Collateral Method; or the Observable Market Price of a Loan Method.  To perform an impairment analysis, the Company reviews a loan’s internally assigned grade, its outstanding balance, guarantors, collateral, strategy, and a current report of the action being implemented. Based on the nature of the specific loans, one of the impairment methods is chosen for the respective loan and any impairment is determined, based on criteria established in ASC 310-10.

The Company makes partial charge-offs of impaired loans when the impairment is deemed permanent and is considered a loss.  Specific reserves are allocated to cover “other-than-permanent” impairment for which the underlying collateral value may fluctuate with market conditions.  There were no partial charge-offs.

Consumer real estate and other loans are not individually evaluated for impairment, but collectively evaluated, because they are pools of smaller balance homogeneous loans.

Impaired loans as of September 30, 2015 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance
Commercial and industrial:
Commercial	$322	$110	$-	$110	$-
SBA Loans	40	40	-	40	-
Asset-based	46	-	46	46	9
Total commercial and industrial	408	150	46	196	9
Commercial real estate:
Commercial mortgages	894	505	389	894	41
SBA Loans	109	-	109	109	6
Religious organizations	488	488	-	488	-
Total commercial real estate	1,491	996	498	1,491	47
Total loans	$1,899	$1,143	$544	$1,687	$56

Impaired loans as of December 31, 2014 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance
Commercial and industrial:
Commercial	$501	$38	$210	$248	$199
SBA loans	94	46	48	94	48
Asset-based	40	40	-	40	-
Total commercial and industrial	635	124	258	382	247
Commercial real estate:
Commercial mortgages	985	616	369	985	27
SBA Loans	118	118	-	118	-
Religious organizations	520	520	-	520	-
Total commercial real estate	1,623	1,254	369	1,623	27
Total loans	$2,258	$1,378	$627	$2,005	$274

The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank.   If these factors do not exist, the Bank will record interest payments on the cost recovery basis. The following tables present additional information about impaired loans.

(In 000's)	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$160	$-	$204	$3
SBA  loans	40	1	48	-
Asset-based	46	1	-	-
Total commercial and industrial	246	2	252	3
Commercial real estate:
Commercial mortgages	976	-	995	-
SBA loans	110	-	122	-
Religious organizations	488	-	610	-
Total commercial real estate	1,574	-	1,727	-
Total loans	$1,820	$2	$1,979	$3

(In 000's)	Nine Months Ended  September 30, 2015		Nine Months Ended  September 30, 2014
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$188	$-	$231	$3
SBA  loans	58	2	48	-
Asset-based	36	2	-	-
Total commercial and industrial	282	4	279	3
Commercial real estate:
Commercial mortgages	971	-	931	3
SBA loans	112	-	125	1
Religious organizations	496	2	617	2
Total commercial real estate	1,579	2	1,673	6
Total loans	$1,861	$6	$1,952	$9

Troubled debt restructurings (“TDRs”).  TDRs occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider, such as a below market interest rate, extending the maturity of a loan, or a combination of both. The Company made modifications to certain loans in its commercial loan portfolio that included the term out of lines of credit to begin the amortization of principal.  The terms of these loans do not include any financial concessions and are consistent with the current market.  Management reviews all loan modifications to determine whether the modification qualifies as a troubled debt restructuring (i.e. whether the creditor has been granted a concession or is experiencing financial difficulties).  Based on this review and evaluation, none of the modified loans met the criteria of a troubled debt restructuring.  Therefore, the Company had no troubled debt restructurings at September 30, 2015 and December 31, 2014.

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7. Other Real Estate Owned

9 Months Ended

Sep. 30, 2015

Notes

7. Other Real Estate Owned

7. Other Real Estate Owned

Other real estate owned (“OREO”) consists of properties acquired as a result of deed in-lieu-of foreclosure and foreclosures. Properties or other assets are classified as OREO and are reported at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of assets are capitalized, and costs relating to holding the property are charged to expense.

Activity in other real estate owned for the periods was as follows:

(in 000's)	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Beginning balance	$757	$420	$564	$433
Additions, transfers from loans	-	240	149	240
Sales	(38)	(29)	(83)	(29)
	715	631	630	644
Write-ups (downs)	-	-	89	(13)
Ending Balance	$719	$631	$719	$631

The following schedule reflects the components of other real estate owned:

(in 000's)	September 30, 2015	December 31, 2014
Commercial real estate	$335	$191
Residential real estate	384	373
Total	$719	$564

The following table details the components of net expense (income) of other real estate owned:

	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
(in 000's)	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Insurance	$4	$5	$13	$16
Professional fees	-	2	-	2
Real estate taxes	4	3	10	14
Utilities	1	1	2	3
Other	1	6	11	6
Transfer-in write-up	-	(47)	(89)	(47)
Impairment charges (net)	-	-	-	13
Total {verbose}	$10	$(30)	$(53)	$7

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8. Fair Value

9 Months Ended

Sep. 30, 2015

Notes

8. Fair Value

8.  Fair Value

Fair Value Measurement

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The fair value guidance in FASB ASC 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried at fair value in three levels as follows:

Level 1

·       Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2

·      

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, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.”

Level 3

·       Prices or valuation techniques that require inputs that are both unobservable (i.e., supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

·       These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Fair Value on a Recurring Basis

Securities Available for Sale (“AFS”):  Where quoted prices are available in an active market, securities would be classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds and mutual funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow models. Level 2 securities include U.S. agency securities and mortgage backed agency securities.  In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy.

Loans Held for Sale. Fair values are estimated by using actual quoted market bids on a loan by loan basis.

Loans Held at Fair Value.  Fair values for loans for which the guaranteed portion is intended to be sold are estimated by using actual quoted market bids on a loan by loan basis. Fair values for the un-guaranteed portion of SBA loans are estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries.

Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below.

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at September 30, 2015	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale:
U.S. Government agency securities	$3,090	$-	$3,090	$-
Government Sponsored Enterprises residential mortgage-backed securities	3,944	-	3,944	-
Money Market Funds	130	130	-	-
Total	$7,164	$130	$7,034	$-
Loans held for sale	$535	$-	$535	$-
Loans held at fair value	$2,473	$-	$-	$2,473

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant  Unobservable Inputs (Level 3)
Investment securities available-for-sale:
U.S. Government Agency securities	$4,036	$-	$4,036	$-
Government Sponsored Enterprises residential mortgage-backed securities	4,374	-	4,374	-
Money Market Funds	130	130	-	-
Total	$8,540	$130	$8,410	$-
Loans held for sale	$6,160	$-	$6,160	$-
Loans held at fair value	$629	$-	$-	$629

The fair value of the Bank’s AFS securities portfolio was approximately $7,164,000 and $8,540,000 at September 30, 2015 and December 31, 2014, respectively. All the residential mortgage-backed securities were issued or guaranteed by the Government National Mortgage Association (“GNMA”), the Federal National Mortgage Association (“FNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”).  The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States.  The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar instruments and all relevant information.  There were no transfers between Level 1 and Level 2 assets during the periods ended September 30, 2015 and 2014.

When estimating the fair value of Level 3 financial instruments, management uses various observable and unobservable inputs.  

These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)

Assets measured at fair value	September 30, 2015 Fair value	December 31, 2014 Fair Value	Principal valuation techniques	Significant observable inputs	September 30, 2015 Range of inputs	December 31, 2014 Range of inputs
Loans held at fair value:	$2,473	$629	Discounted cash flow	Constant prepayment rate	6.96% to 9.68%	7.58% to 8.52%
				Weighted average discount rate	7.45% to 9.58%	9.02% to 9.24%
				Weighted average life	3.42 yrs to 9.83 yrs	3.75 yrs to 4.25 yrs

Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period.

The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value:

(in 000’s)	Loans held at fair value
Balance at December 31, 2014	$629
Origination of loans	2,894
Principal repayments	(835)
Change in fair value of financial instruments	(215)
Balance at September 30, 2015	2,473

Fair Value on a Nonrecurring Basis

Certain assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  

The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of September 30, 2015 and December 31, 2014, for which a nonrecurring change in fair value has been recorded during the nine months ended September 30, 2015 and year ended December 31, 2014.

Carrying Value at September 30, 2015:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during 9 months ended
Impaired loans	$1,687	$-	$-	$1,687	$-
Other real estate owned (“OREO”)	$719	$ -	$ -	$719	$88

Carrying Value at December 31, 2014:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during 12 months ended
Impaired Loans	$1,731	$-	$-	$1,731	$(142)
Other real estate owned (“OREO”)	$564	$-	$-	$564	$(13)

The measured impairment for collateral dependent impaired loans is determined by the fair value of the collateral less estimated liquidation costs.  Collateral values for loans and OREO are determined by annual or more frequent appraisals if warranted by volatile market conditions, which may be discounted up to 10% based upon management’s review and the estimated cost of liquidation. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.  Adjustments are routinely made on the appraisal process by the appraisers for differences between the comparable sales and income data available.  Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation allowance for impaired loans is adjusted as necessary based on changes in the value of collateral as well as the cost of liquidation.  It is included in the allowance for loan losses in the consolidated statements of condition.

Fair Value of Financial Instruments

FASB ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.

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

Cash and cash equivalents: The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values.

Investment securities: Fair values for investment securities available-for-sale are as described above.  If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Loans held for sale:  Fair values for loans held for sale are estimated by using actual quoted market bids on a loan by loan basis.

Loans held at fair value: The fair value of loans held at fair value was estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, default and voluntary prepayments as well as loan specific assumptions for losses and recoveries.

Loans (other than impaired loans): The fair value of loans was estimated using a discounted cash flow analysis, which considered estimated pre­payments, amortizations, and non performance risk.  Prepayments and discount rates were based on current marketplace estimates and rates.

 Accrued interest receivable:  The carrying amount of accrued interest receivable approximates fair value.

Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amounts payable on demand at the reporting date (e.g., their carrying amounts).  The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate the fair values at the reporting date.  Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation.  The Treasury yield curve was utilized for discounting cash flows as it approximates the average marketplace certificate of deposit rates across the relevant maturity spectrum.

Accrued interest payable:  The carrying amounts of accrued interest payable approximate fair value.

Commitments to extend credit: The carrying amounts for commitments to extend credit approximate fair value as such commitments are not substantially different from the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparts.  The carrying amount of accrued interest payable approximates fair market value.

The fair value of assets and liabilities are depicted below:

		September 30, 2015		December 31, 2014
(in 000’s)	Level in	Carrying	Fair	Carrying	Fair
	Value Hierarchy	Amount	Value	Amount	Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1	$12,835	$12,835	$3,237	$3,237
Available for sale securities	(1)	7,164	7,164	8,540	8,540
Loans held for sale	Level 2	535	535	6,160	6,160
Loans held at fair value	Level 3	2,473	2,473	629	629
Loans, net of allowance for loan losses	(2)	34,085	34,524	40,127	40,069
Accrued interest receivable	Level 2	189	189	250	250
Liabilities:
Demand deposits	Level 2	29,691	29,691	28,723	28,723
Savings deposits	Level 2	11,597	11,597	12,091	12,091
Time deposits	Level 2	14,586	14,596	16,148	16,157
Accrued interest payable	Level 2			16	16

(1)   Level 1 for money market funds; Level 2 for all other securities.

(2)   Level 2 for non-impaired loans; Level 3 for impaired loans.

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9. Regulatory

9 Months Ended

Sep. 30, 2015

Notes

9. Regulatory

9. Regulatory

On January 31, 2012, the Bank entered into stipulations consenting to the issuance of Consent Orders with the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“Department”).  The material terms of the Consent Orders are identical.  

The requirements and status of items included in the Consent Orders are as follows:

Requirement	Status
Increase participation of the Bank’s board of directors in the Bank’s affairs by having the board assume full responsibility for approving the Bank’s policies and objectives and for supervising the Bank’s management;	Board participation improved with attendance at board and committee meetings.
Have and retain qualified management, and notify the FDIC and the Department of any changes in the Bank’s board of directors or senior executive officers;	A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.
Retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan;	An engagement letter from a qualified consultant was received and approved by the Bank’s regulators.  Upon acceptance, the review commenced in May 2012 and was completed in June 2012.
Formulate and implement written profit and budget plans for each year during which the orders are in effect;	Profit and budget plans have been prepared and submitted to regulators as required annually.
Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;	An annual comprehensive strategic plan was prepared and submitted to regulators as required.
Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period;	A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.
Formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its regulatory examination;	A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.
Eliminate all assets classified as “Loss” at its current regulatory examination;	All assets classified as “Loss” have been eliminated.
Revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination;	The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.
Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;	The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.

Requirement	Status
Develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes;	The Bank’s interest rate risk policy and procedures were submitted to regulators as required.
Revise its liquidity and funds management policy and update and review the policy annually;	The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.
Refrain from accepting any brokered deposits;	The Bank did not accept brokered deposits.
Refrain from paying cash dividends without prior approval of the FDIC and the Department;	The Bank did not pay cash dividends.
Establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and	An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.
Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.	Quarterly reports were prepared and submitted   as required.

The Orders will remain in effect until modified or terminated by the FDIC and the Department and do not restrict the Bank from transacting its normal banking business.  The Bank will continue to serve its customers in all areas including making loans, establishing lines of credit, accepting deposits and processing banking transactions.  Customer deposits remain fully insured to the highest limits set by the FDIC.  The FDIC and the Department did not impose or recommend any monetary penalties in connection with the Consent Orders.

 As of September 30, 2015 and December 31, 2014, the Bank’s tier one leverage capital ratio was 4.77% and 5.18%, respectively, and its total risk based capital ratio was 8.67% and 8.60%, respectively.   The net loss for the nine months ended September 30, 2015 resulted in a decline in the tier one leverage ratio; however, the total risk based capital ratio increased because of the decrease in loans during the period that generally carry a higher risk weight than cash or investments.  Management has developed and submitted a Capital Plan that focuses on the following:

1.     Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital.

2.     External equity investments—an investment banker has been engaged to help the Bank generate external capital investments.

As a result of the above actions, management believes that the Bank has and will continue to attempt to comply with the terms and conditions of the Orders and will continue to operate as a going concern and an independent financial institution for the foreseeable future.

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1. Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Policies

Management's Use of Estimates

Management’s Use of Estimates

The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.  Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities.

Commitments

Commitments

In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments.

Contingencies

Contingencies

The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company.

Loans Held For Sale

Loans Held for Sale

From time to time, the Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market.  These loans are carried at estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. 

Loans Held At Fair Value

Loans Held at Fair Value

The Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market.  Management has elected to carry these loans at fair value.  Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries.

Loans

Loans

The Bank has both the positive intent and ability to hold the majority of its loans to maturity.  These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount.

Allowance For Loan Losses

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses.  Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process.  Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term.

The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.  The Bank does not allocate reserves for unfunded commitments to fund lines of credit.

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  The Bank will identify and assess loans that may be impaired through any of the following processes:

·       During regularly scheduled meetings of the Asset Quality Committee

·       During regular reviews of the delinquency report

·       During the course of routine account servicing, annual review, or credit file update

·       Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable Loan-to-Value ratio

Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures.

Non-accrual and Past Due Loans.

Non-accrual and Past Due Loans.

Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due.  The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more.  If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Interest on loans past due 90 days or more ceases to accrue except for loans that are well collateralized and in the process of collection.  When a loan is placed on nonaccrual status, previously accrued and unpaid interest is reversed out of income.  Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Income Taxes

Income Taxes

Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities.  Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not.   For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards.  If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

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2. Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Net Loss per Common Share

The calculation of net loss per share follows:

	Three Months Ended September 30, 2015	Three Months Ended September 30, 2014	Nine Months Ended September 30, 2015	Nine Months Ended September 30, 2014
Basic:
Net loss available to common shareholders	$(209,909)	$(182,996)	$(313,006)	$(607,195)
Average common shares outstanding-basic	826,921	1,068,588	986,487	1,068,588
Net loss per share-basic	$(0.25)	$(0.17)	$(0.32)	$(0.57)
Diluted:
Average common shares-diluted	826,921	1,068,588	986,487	1,068,588
Net loss per share-diluted	$(0.25)	$(0.17)	$(0.32)	$(0.57)

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3. Changes in Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Components of Other Comprehensive Income

The following table presents the changes in other comprehensive income:

	Three Months Ended September 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$97	$(33)	$64
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$97	$(33)	$64
	Three Months Ended September 30, 2014
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$163	$(54)	$109
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$163	$(54)	$109
	Nine Months Ended September 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$66	$(23)	$43
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$66	$(23)	$43
	Nine Months Ended September 30, 2014
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$359	$(118)	$241
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$359	$(118)	$241

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5. Investment Securities (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Available-for-sale Securities Reconciliation

The following is a summary of the Company's investment portfolio: 

(In 000’s)	September 30, 2015
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$3,097	$2	$(9)	$3,090
Government Sponsored Enterprises residential mortgage-backed securities	3,893	63	(12)	3,944
Investments in money market funds	130	-	-	130
	$7,120	$65	$(21)	$7,164

	December 31, 2014
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$4,097	$-	$(61)	$4,036
Government Sponsored Enterprises residential mortgage-backed securities	4,333	60	(20)	4,374
Investments in money market funds	130	-	-	130
	$8,560	$60	$(81)	$8,540

Schedule of Investments Classified by Contractual Maturity Date

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of September 30, 2015, are as follows:

(In 000’s)	Amortized Cost	Fair Value
Due in one year	$-	$-
Due after one year through five years	-	-
Due after five years through ten years	3,097	3,090
Government Sponsored Enterprises residential mortgage-backed securities	3,893	3,944
Total debt securities	6,990	7,034
Investments in money market funds	130	130
	$7,120	$7,164

Schedule of Unrealized Loss on Investments

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at September 30, 2015:

	Number	Less than 12 months		12 months or longer		Total
Description of	Of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	Securities	Value	Losses	Value	losses	value	Losses
U.S. Government agency securities	6	$248	$(8)	$1,491	$(1)	$1,739	$(9)
Government Sponsored Enterprises residential mortgage-backed securities	4	231	(4)	755	(8)	986	(12)
Total temporarily impaired investment Securities	10	$479	$(12)	$2,246	$(9)	$2,725	$(21)

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2014:

	Number	Less than 12 months		12 months or longer		Total
Description of	of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	securities	Value	Losses	Value	Losses	value	Losses
U.S. Government  agency securities	13	$246	$(4)	$3,290	$(57)	$3,536	$(61)
Government Sponsored Enterprises residentialortgage-backed securities	6	-	-	1,440	(20)	1,440	$(20)
Total temporarily impaired investment Securities	19	$246	$(4)	$4,730	$(77)	$4,976	$(81)

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6. Loans and Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of the Composition of Net Loans

(Dollars in thousands)	September 30, 2015	December 31, 2014
Commercial and industrial	$3,351	$4,635
Commercial real estate	27,010	31,556
Consumer real estate	2,926	3,297
Consumer loans other	1,268	1,373
Total loans	$34,555	$40,861

Schedule of Age Analysis of Allowance for Loan Losses

The following table presents an analysis of the allowance for loan losses.

(in 000's)	For the Three months ended September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total
Beginning balance	$320	$236	$23	$17	$596
Provision (credit) for loan losses	100	(9)	(4)	(4)	83
Charge-offs	(212)	-	-	(2)	(214)
Recoveries	2	-	1	1	4
Net (charge-offs) recoveries	(210)	-	1	(1)	(210)
Ending balance	$210	$227	$20	$12	$469

(in 000's)	For the Three months ended September 30, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans  Other	Total
Beginning balance	$297	$295	$52	$13	$657
Provision (credit) for loan losses	74	5	(18)	1	62
Charge-offs	-	-	(19)	(7)	(26)
Recoveries	1	-	3	5	9
Net recoveries	1	-	(16)	(2)	(17)
Ending balance	$372	$300	$18	$12	$702

(in 000's)	For the Nine months ended September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total
Beginning balance	$403	$300	$20	$12	$735
Provision (credit) for loan losses	63	(73)	(4)	(3)	(17)
Charge-offs	(259)	-	-	(15)	(274)
Recoveries	3	-	4	18	25
Net (charge-offs) recoveries	(256)	-	4	3	(249)
Ending balance	$210	$227	$20	$12	$469

\\

(in 000's)	For the Nine months ended September 30, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Beginning balance	$483	$280	$59	$17	$839
Provision (credit) for loan losses	139	20	(28)	1	132
Charge-offs	(253)	-	(19)	(25)	(297)
Recoveries	3	-	6	19	28
Net (charge-offs)recoveries	(250)	-	(13)	(6)	(269)
Ending balance	$372	$300	$18	$12	$702

(in 000's)	September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$9	$47	$-	$-	$56
Loans collectively  evaluated for impairment	201	180	20	12	413
	$210	$227	$20	$12	$469
Loans, ending balance:
Loans individually evaluated for impairment	$196	$1,491	$-	$-	$1,687
Loans collectively  evaluated for impairment	3,155	25,519	2,926	1,268	32,868
Total	$3,351	$27,010	$2,926	$1,268	$34,555

	December 31, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$247	$27	$-	$-	$274
Loans collectively  evaluated for impairment	156	273	20	12	461
	$403	$300	$20	$12	$735
Loans, ending balance:
Loans individually evaluated for impairment	$382	$1,623	$-	$-	$2,005
Loans collectively  evaluated for impairment	4,253	29,933	3,297	1,373	38,856
Total	$4,635	$31,556	$3,297	$1,373	$40,861

Schedule of Age Analysis of Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of September 30, 2015 is as follows:

		Accruing
	Loans	Loans 90 or
(In 000's)	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$110	$110	$1,532	$1,642
SBA loans	-	-	-	-	151	151
Asset-based	-	-	-	-	1,558	1,558
Total Commercial and industrial	-	-	110	110	3,241	3,351
Commercial real estate:
Commercial mortgages	606	54	969	1,629	11,770	13,399
SBA loans	-	-	109	109	564	673
Construction	-	-	-	-	2,529	2,529
Religious organizations	-	-	488	488	9,921	10,409
Total Commercial real estate	606	54	1,566	2,226	24,784	27,010
Consumer real estate:
Home equity loans	83	126	359	568	381	949
Home equity lines of credit	-	-	-	-	21	21
1-4 family residential mortgages	55	-	75	130	1,826	1,956
Total consumer real estate	138	126	434	698	2,228	2,926
Total real estate	744	180	2,000	2,924	27,012	29,936
Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	55	91	-	146	995	1,141
Other	-	-	-	-	127	127
Total consumer and other	55	91	-	146	1,122	1,268
Total loans	$799	$271	$2,110	$3,180	$31,376	$34,555

An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 is as follows:

		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
(In 000's)	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$248	$248	$2,315	$2,563
SBA loans	-	-	48	48	120	168
Asset-based	-	-	-	-	1,904	1,904
Total Commercial and industrial	-	-	296	296	4,339	4,635
Commercial real estate:
Commercial mortgages	17	83	985	1,085	14,385	15,470
SBA loans	-	-	118	118	407	525
Construction	-	-	-	-	3,423	3,423
Religious organizations	-	-	520	520	11,618	12,138
Total Commercial real estate	17	83	1,623	1,723	29,833	31,556
Consumer real estate:
Home equity loans	246	-	368	614	433	1,047
Home equity lines of credit	-	-	-	-	22	22
1-4 family residential mortgages	-	-	194	194	2,034	2,228
Total consumer real estate	246	-	562	808	2,489	3,297
Total real estate	263	83	2,185	2,531	32,322	34,853
Consumer and other:
Consumer installment	-	-	-	-	7	7
Student loans	136	88	-	224	997	1,221
Other	12	-	-	12	133	145
Total consumer and other	148	88	-	236	1,137	1,373
Total loans	$411	$171	$2,481	$3,063	$37,798	$40,861

Schedule of Bank Loans by Class According to Credit Quality

The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.

(In 000's)	Commercial Loans September 30, 2015
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$1,120	$18	$-	$254	$-	$1,642
SBA loans	-	8	103	-	40	-	151
Asset-based	-	1,312	124	-	46	76	1,558
	250	2,440	245	-	340	76	3,351
Commercial real estate:
Commercial mortgages	-	10,718	1,114	620	724	223	13,399
SBA Loans	-	399	165	-	109	-	673
Construction	-	2,529	-	-	-	-	2,529
Religious organizations	-	7,427	2,057	722	203	-	10,409
	-	21,073	3,336	1,342	1,036	223	27,010
Total commercial loans	$250	$23,513	$3,581	$1,342	$1,376	$299	$30,361

	Residential Mortgage and Consumer Loans September 30, 2015
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$500	$359	$949
Home equity line of credit	21	-	21
1-4 family residential mortgages	1,881	75	1,956
	2,492	434	2,926
Consumer Other:
Consumer Installment	-	-	-
Student loans	1,141	-	1,141
Other	127	-	127
	1,268	-	1,268
Total  consumer loans	$3,760	$434	$4,194
Total loans				$34,555

(In 000's)	Commercial Loans, December 31, 2014
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$300	$1,321	$474	$220	$113	$135	$2,563
SBA loans	-	80	-	-	88	-	168
Asset-based	-	1,734	124	-	46	-	1,904
	300	3,135	598	220	247	135	4,635
Commercial real estate:
Commercial mortgages	-	13,024	724	57	1,348	317	15,470
SBA Loans	-	237	170	-	118	-	525
Construction	-	3,423	-	-	-	-	3,423
Religious organizations	-	9,730	1,185	703	520	-	12,138
	-	26,414	2,079	760	1,986	317	31,556
Total commercial loans	$300	$29,549	$2,677	$980	$2,233	$452	$36,191

	Residential Mortgage and Consumer Loans December 31, 2014
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$679	$368	$1,047
Home equity line of credit	22	-	22
1-4 family residential mortgages	2,034	194	2,228
	2,735	562	3,297
Consumer Other:
Consumer Installment	7	-	7
Student loans	1,221	-	1,221
Other	145	-	145
	1,373	-	1,373
Total  consumer loans	$4,108	$562	$4,670
Total loans				$40,861

Schedule of Impaired Loans

Impaired loans as of September 30, 2015 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance
Commercial and industrial:
Commercial	$322	$110	$-	$110	$-
SBA Loans	40	40	-	40	-
Asset-based	46	-	46	46	9
Total commercial and industrial	408	150	46	196	9
Commercial real estate:
Commercial mortgages	894	505	389	894	41
SBA Loans	109	-	109	109	6
Religious organizations	488	488	-	488	-
Total commercial real estate	1,491	996	498	1,491	47
Total loans	$1,899	$1,143	$544	$1,687	$56

Impaired loans as of December 31, 2014 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance
Commercial and industrial:
Commercial	$501	$38	$210	$248	$199
SBA loans	94	46	48	94	48
Asset-based	40	40	-	40	-
Total commercial and industrial	635	124	258	382	247
Commercial real estate:
Commercial mortgages	985	616	369	985	27
SBA Loans	118	118	-	118	-
Religious organizations	520	520	-	520	-
Total commercial real estate	1,623	1,254	369	1,623	27
Total loans	$2,258	$1,378	$627	$2,005	$274

Schedule of Interest Income on Impaired Loans

The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank.   If these factors do not exist, the Bank will record interest payments on the cost recovery basis. The following tables present additional information about impaired loans.

(In 000's)	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$160	$-	$204	$3
SBA  loans	40	1	48	-
Asset-based	46	1	-	-
Total commercial and industrial	246	2	252	3
Commercial real estate:
Commercial mortgages	976	-	995	-
SBA loans	110	-	122	-
Religious organizations	488	-	610	-
Total commercial real estate	1,574	-	1,727	-
Total loans	$1,820	$2	$1,979	$3

(In 000's)	Nine Months Ended  September 30, 2015		Nine Months Ended  September 30, 2014
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$188	$-	$231	$3
SBA  loans	58	2	48	-
Asset-based	36	2	-	-
Total commercial and industrial	282	4	279	3
Commercial real estate:
Commercial mortgages	971	-	931	3
SBA loans	112	-	125	1
Religious organizations	496	2	617	2
Total commercial real estate	1,579	2	1,673	6
Total loans	$1,861	$6	$1,952	$9

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7. Other Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Change in Other Real Estate Owned

Activity in other real estate owned for the periods was as follows:

(in 000's)	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Beginning balance	$757	$420	$564	$433
Additions, transfers from loans	-	240	149	240
Sales	(38)	(29)	(83)	(29)
	715	631	630	644
Write-ups (downs)	-	-	89	(13)
Ending Balance	$719	$631	$719	$631

Schedule of Components of Other Real Estate Owned

The following schedule reflects the components of other real estate owned:

(in 000's)	September 30, 2015	December 31, 2014
Commercial real estate	$335	$191
Residential real estate	384	373
Total	$719	$564

Schedule of Components of Net Expense (income) of Other Real Estate Owned

The following table details the components of net expense (income) of other real estate owned:

	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
(in 000's)	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Insurance	$4	$5	$13	$16
Professional fees	-	2	-	2
Real estate taxes	4	3	10	14
Utilities	1	1	2	3
Other	1	6	11	6
Transfer-in write-up	-	(47)	(89)	(47)
Impairment charges (net)	-	-	-	13
Total {verbose}	$10	$(30)	$(53)	$7

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8. Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Fair Value of Assets on a Recurring Basis

Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below.

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at September 30, 2015	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale:
U.S. Government agency securities	$3,090	$-	$3,090	$-
Government Sponsored Enterprises residential mortgage-backed securities	3,944	-	3,944	-
Money Market Funds	130	130	-	-
Total	$7,164	$130	$7,034	$-
Loans held for sale	$535	$-	$535	$-
Loans held at fair value	$2,473	$-	$-	$2,473

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant  Unobservable Inputs (Level 3)
Investment securities available-for-sale:
U.S. Government Agency securities	$4,036	$-	$4,036	$-
Government Sponsored Enterprises residential mortgage-backed securities	4,374	-	4,374	-
Money Market Funds	130	130	-	-
Total	$8,540	$130	$8,410	$-
Loans held for sale	$6,160	$-	$6,160	$-
Loans held at fair value	$629	$-	$-	$629

Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments

These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)

Assets measured at fair value	September 30, 2015 Fair value	December 31, 2014 Fair Value	Principal valuation techniques	Significant observable inputs	September 30, 2015 Range of inputs	December 31, 2014 Range of inputs
Loans held at fair value:	$2,473	$629	Discounted cash flow	Constant prepayment rate	6.96% to 9.68%	7.58% to 8.52%
				Weighted average discount rate	7.45% to 9.58%	9.02% to 9.24%
				Weighted average life	3.42 yrs to 9.83 yrs	3.75 yrs to 4.25 yrs

Schedule of Fair Value of Assets Measured on a Nonrecurring Basis

The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of September 30, 2015 and December 31, 2014, for which a nonrecurring change in fair value has been recorded during the nine months ended September 30, 2015 and year ended December 31, 2014.

Carrying Value at September 30, 2015:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during 9 months ended
Impaired loans	$1,687	$-	$-	$1,687	$-
Other real estate owned (“OREO”)	$719	$ -	$ -	$719	$88

Carrying Value at December 31, 2014:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during 12 months ended
Impaired Loans	$1,731	$-	$-	$1,731	$(142)
Other real estate owned (“OREO”)	$564	$-	$-	$564	$(13)

Schedule of Fair Value of Financial Instruments at Year-End

		September 30, 2015		December 31, 2014
(in 000’s)	Level in	Carrying	Fair	Carrying	Fair
	Value Hierarchy	Amount	Value	Amount	Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1	$12,835	$12,835	$3,237	$3,237
Available for sale securities	(1)	7,164	7,164	8,540	8,540
Loans held for sale	Level 2	535	535	6,160	6,160
Loans held at fair value	Level 3	2,473	2,473	629	629
Loans, net of allowance for loan losses	(2)	34,085	34,524	40,127	40,069
Accrued interest receivable	Level 2	189	189	250	250
Liabilities:
Demand deposits	Level 2	29,691	29,691	28,723	28,723
Savings deposits	Level 2	11,597	11,597	12,091	12,091
Time deposits	Level 2	14,586	14,596	16,148	16,157
Accrued interest payable	Level 2			16	16

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9. Regulatory (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

The requirements and status of items included in the Consent Orders

The requirements and status of items included in the Consent Orders are as follows:

Requirement	Status
Increase participation of the Bank’s board of directors in the Bank’s affairs by having the board assume full responsibility for approving the Bank’s policies and objectives and for supervising the Bank’s management;	Board participation improved with attendance at board and committee meetings.
Have and retain qualified management, and notify the FDIC and the Department of any changes in the Bank’s board of directors or senior executive officers;	A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.
Retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan;	An engagement letter from a qualified consultant was received and approved by the Bank’s regulators.  Upon acceptance, the review commenced in May 2012 and was completed in June 2012.
Formulate and implement written profit and budget plans for each year during which the orders are in effect;	Profit and budget plans have been prepared and submitted to regulators as required annually.
Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;	An annual comprehensive strategic plan was prepared and submitted to regulators as required.
Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period;	A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.
Formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its regulatory examination;	A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.
Eliminate all assets classified as “Loss” at its current regulatory examination;	All assets classified as “Loss” have been eliminated.
Revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination;	The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.
Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;	The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.

Requirement	Status
Develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes;	The Bank’s interest rate risk policy and procedures were submitted to regulators as required.
Revise its liquidity and funds management policy and update and review the policy annually;	The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.
Refrain from accepting any brokered deposits;	The Bank did not accept brokered deposits.
Refrain from paying cash dividends without prior approval of the FDIC and the Department;	The Bank did not pay cash dividends.
Establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and	An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.
Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.	Quarterly reports were prepared and submitted   as required.

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2. Net Loss Per Share: Schedule of Net Loss per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Details
Net loss available to common shareholders	$ (209,909)	$ (182,996)	$ (313,006)	$ (607,195)
Average common shares outstanding-basic	826,921	1,068,588	986,487	1,068,588
Net loss per share-basic	$ (0.25)	$ (0.17)	$ (0.32)	$ (0.57)
Average common shares-diluted	826,921	1,068,588	986,487	1,068,588
Net loss per share-diluted	$ (0.25)	$ (0.17)	$ (0.32)	$ (0.57)

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2. Net Loss Per Share (Details)	3 Months Ended
	Mar. 31, 2015 shares
Details
Shares cancelled	50,000

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3. Changes in Accumulated Other Comprehensive Income: Schedule of Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Details
Unrealized holding gain arising during period, before tax amount	$ 97	$ 163	$ 66	$ 359
Unrealized holding gain arising during period, taxes	(33)	(54)	(23)	(118)
Unrealized holding gain arising during period, net of tax amount	64	109	43	241
Less: reclassification adjustment for gains(losses) realized in net loss, before tax amount	0	0	0	0
Less: reclassification adjustment for gains(losses) realized in net loss, taxes	0	0	0	0
Less: reclassification adjustment for gains(losses) realized in net loss, net of tax amount	0	0	0	0
Other comprehensive loss, net, before tax amount	97	163	66	359
Other comprehensive loss, net, taxes	(33)	(54)	(23)	(118)
Other comprehensive loss, net, net after tax amount	$ 64	$ 109	$ 43	$ 241

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5. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Available-for-sale Securities, Amortized Cost Basis	$ 7,120,000	$ 8,560,000
Available-for-sale Securities, Gross Unrealized Gain	65,000	60,000
Available-for-sale Securities, Gross Unrealized Loss	(21,000)	(81,000)
Investment securities available-for-sale, at fair value	7,164,289	8,539,892
US Government Agency Securities
Available-for-sale Securities, Amortized Cost Basis	3,097,000	4,097,000
Available-for-sale Securities, Gross Unrealized Gain	2,000	0
Available-for-sale Securities, Gross Unrealized Loss	(9,000)	(61,000)
Investment securities available-for-sale, at fair value	3,090,000	4,036,000
Government Sponsored Enterprises residential mortgage-backed securities
Available-for-sale Securities, Amortized Cost Basis	3,893,000	4,333,000
Available-for-sale Securities, Gross Unrealized Gain	63,000	60,000
Available-for-sale Securities, Gross Unrealized Loss	(12,000)	(20,000)
Investment securities available-for-sale, at fair value	3,944,000	4,374,000
Investments in money market funds
Available-for-sale Securities, Amortized Cost Basis	130,000	130,000
Available-for-sale Securities, Gross Unrealized Gain	0	0
Available-for-sale Securities, Gross Unrealized Loss	0	0
Investment securities available-for-sale, at fair value	$ 130,000	$ 130,000

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5. Investment Securities: Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Amortized Cost, due in one year	$ 0
Fair Value, due in one year	0
Amortized Cost, due after one year through five years	0
Fair Value, due after one year through five years	0
Amortized Cost, due after five years through ten years	3,097,000
Fair Value, due after five years through ten years	3,090,000
Available-for-sale Securities, Amortized Cost Basis	7,120,000	$ 8,560,000
Investment securities available-for-sale, at fair value	7,164,289	8,539,892
Total debt securities, Amortized Cost Basis	6,990,000
Total debt securities, Fair Value	7,034,000
Government Sponsored Enterprises residential mortgage-backed securities
Available-for-sale Securities, Amortized Cost Basis	3,893,000	4,333,000
Investment securities available-for-sale, at fair value	3,944,000	4,374,000
Investments in money market funds
Available-for-sale Securities, Amortized Cost Basis	130,000	130,000
Investment securities available-for-sale, at fair value	$ 130,000	$ 130,000

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5. Investment Securities: Schedule of Unrealized Loss on Investments (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Number of Securities	10	19
Less than Twelve Months, Fair Value	$ 479	$ 246
Less than 12 Months, Unrealized Losses	(12)	(4)
Twelve Months or Longer, Fair Value	2,246	4,730
12 Months or Longer, Unrealized Losses	(9)	(77)
Total Fair Value	2,725	4,976
Total Unrealized Losses	$ (21)	$ (81)
US Government Agency Securities
Number of Securities	6	13
Less than Twelve Months, Fair Value	$ 248	$ 246
Less than 12 Months, Unrealized Losses	(8)	(4)
Twelve Months or Longer, Fair Value	1,491	3,290
12 Months or Longer, Unrealized Losses	(1)	(57)
Total Fair Value	1,739	3,536
Total Unrealized Losses	$ (9)	$ (61)
Government Sponsored Enterprises residential mortgage-backed securities
Number of Securities	4	6
Less than Twelve Months, Fair Value	$ 231	$ 0
Less than 12 Months, Unrealized Losses	(4)	0
Twelve Months or Longer, Fair Value	755	1,440
12 Months or Longer, Unrealized Losses	(8)	(20)
Total Fair Value	986	1,440
Total Unrealized Losses	$ (12)	$ (20)

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6. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Details
Commercial and industrial	$ 3,351	$ 4,635
Commercial real estate	27,010	31,556
Consumer real estate	2,926	3,297
Consumer loans other	1,268	1,373
Loans, net	$ 34,555	$ 40,861

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6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Beginning balance	$ 596,000	$ 657,000	$ 735,000	$ 839,000
Provision (credit) for loan losses	83,000	62,000	(17,000)	132,000
Charge-offs	(214,000)	(26,000)	(274,000)	(297,000)
Recoveries	4,000	9,000	25,000	28,000
Net (charge-offs) recoveries	(210,000)	(17,000)	(249,000)	(269,000)
Ending balance	469,000	702,000	469,000	702,000
Period-end amount allocated to: Loans individually evaluated for impairment	56,000		56,000		$ 274,000
Period-end amount allocated to: Loans collectively evaluated for impairment	413,000		413,000		461,000
Period-end amount allocated to: Total	469,259		469,259		734,567
Loans, ending balance: Loans individually evaluated for impairment	1,687,000		1,687,000		2,005,000
Loans, ending balance: Loans collectively evaluated for impairment	32,868,000		32,868,000		38,856,000
Loans, ending balance: Total	34,554,640		34,554,640		40,861,890
Commercial And Industrial
Beginning balance	320,000	297,000	403,000	483,000
Provision (credit) for loan losses	100,000	74,000	63,000	139,000
Charge-offs	(212,000)	0	(259,000)	(253,000)
Recoveries	2,000	1,000	3,000	3,000
Net (charge-offs) recoveries	(210,000)	1,000	(256,000)	(250,000)
Ending balance	210,000	372,000	210,000	372,000
Period-end amount allocated to: Loans individually evaluated for impairment	9,000		9,000		247,000
Period-end amount allocated to: Loans collectively evaluated for impairment	201,000		201,000		156,000
Period-end amount allocated to: Total	210,000		210,000		403,000
Loans, ending balance: Loans individually evaluated for impairment	196,000		196,000		382,000
Loans, ending balance: Loans collectively evaluated for impairment	3,155,000		3,155,000		4,253,000
Loans, ending balance: Total	3,351,000		3,351,000		4,635,000
Commercial Real Estate Portfolio Segment
Beginning balance	236,000	295,000	300,000	280,000
Provision (credit) for loan losses	(9,000)	5,000	(73,000)	20,000
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Ending balance	227,000	300,000	227,000	300,000
Period-end amount allocated to: Loans individually evaluated for impairment	47,000		47,000		27,000
Period-end amount allocated to: Loans collectively evaluated for impairment	180,000		180,000		273,000
Period-end amount allocated to: Total	227,000		227,000		300,000
Loans, ending balance: Loans individually evaluated for impairment	1,491,000		1,491,000		1,623,000
Loans, ending balance: Loans collectively evaluated for impairment	25,519,000		25,519,000		29,933,000
Loans, ending balance: Total	27,010,000		27,010,000		31,556,000
Consumer Real Estate
Beginning balance	23,000	52,000	20,000	59,000
Provision (credit) for loan losses	(4,000)	(18,000)	(4,000)	(28,000)
Charge-offs	0	(19,000)	0	(19,000)
Recoveries	1,000	3,000	4,000	6,000
Net (charge-offs) recoveries	1,000	(16,000)	4,000	(13,000)
Ending balance	20,000	18,000	20,000	18,000
Period-end amount allocated to: Loans individually evaluated for impairment	0		0		0
Period-end amount allocated to: Loans collectively evaluated for impairment	20,000		20,000		20,000
Period-end amount allocated to: Total	20,000		20,000		20,000
Loans, ending balance: Loans individually evaluated for impairment	0		0		0
Loans, ending balance: Loans collectively evaluated for impairment	2,926,000		2,926,000		3,297,000
Loans, ending balance: Total	2,926,000		2,926,000		3,297,000
Consumer And Other Loans
Beginning balance	17,000	13,000	12,000	17,000
Provision (credit) for loan losses	(4,000)	1,000	(3,000)	1,000
Charge-offs	(2,000)	(7,000)	(15,000)	(25,000)
Recoveries	1,000	5,000	18,000	19,000
Net (charge-offs) recoveries	(1,000)	(2,000)	3,000	(6,000)
Ending balance	12,000	$ 12,000	12,000	$ 12,000
Period-end amount allocated to: Loans individually evaluated for impairment	0		0		0
Period-end amount allocated to: Loans collectively evaluated for impairment	12,000		12,000		12,000
Period-end amount allocated to: Total	12,000		12,000		12,000
Loans, ending balance: Loans individually evaluated for impairment	0		0		0
Loans, ending balance: Loans collectively evaluated for impairment	1,268,000		1,268,000		1,373,000
Loans, ending balance: Total	$ 1,268,000		$ 1,268,000		$ 1,373,000

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6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Past Due Loans	$ 3,180,000	$ 3,063,000
Nonaccrual	2,110,000	2,481,000
Current Loans	31,376,000	37,798,000
Total Loans	34,554,640	40,861,890
Commercial And Industrial
Past Due Loans	110,000	296,000
Nonaccrual	110,000	296,000
Current Loans	3,241,000	4,339,000
Total Loans	3,351,000	4,635,000
Commercial And Industrial | Commercial
Past Due Loans	110,000	248,000
Nonaccrual	110,000	248,000
Current Loans	1,532,000	2,315,000
Total Loans	1,642,000	2,563,000
Commercial And Industrial | SBA Loans
Past Due Loans	0	48,000
Nonaccrual	0	48,000
Current Loans	151,000	120,000
Total Loans	151,000	168,000
Commercial And Industrial | Asset Based Loans
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	1,558,000	1,904,000
Total Loans	1,558,000	1,904,000
Commercial Real Estate Portfolio Segment
Past Due Loans	2,226,000	1,723,000
Nonaccrual	1,566,000	1,623,000
Current Loans	24,784,000	29,833,000
Total Loans	27,010,000	31,556,000
Commercial Real Estate Portfolio Segment | SBA Loans
Past Due Loans	109,000	118,000
Nonaccrual	109,000	118,000
Current Loans	564,000	407,000
Total Loans	673,000	525,000
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Past Due Loans	1,629,000	1,085,000
Nonaccrual	969,000	985,000
Current Loans	11,770,000	14,385,000
Total Loans	13,399,000	15,470,000
Commercial Real Estate Portfolio Segment | Construction
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	2,529,000	3,423,000
Total Loans	2,529,000	3,423,000
Commercial Real Estate Portfolio Segment | Religious Organizations
Past Due Loans	488,000	520,000
Nonaccrual	488,000	520,000
Current Loans	9,921,000	11,618,000
Total Loans	10,409,000	12,138,000
Consumer Real Estate
Past Due Loans	698,000	808,000
Nonaccrual	434,000	562,000
Current Loans	2,228,000	2,489,000
Total Loans	2,926,000	3,297,000
Consumer Real Estate | Home Equity Line of Credit
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	21,000	22,000
Total Loans	21,000	22,000
Consumer Real Estate | Home Equity Loans
Past Due Loans	568,000	614,000
Nonaccrual	359,000	368,000
Current Loans	381,000	433,000
Total Loans	949,000	1,047,000
Consumer Real Estate | 1-4 family residential mortgages
Past Due Loans	130,000	194,000
Nonaccrual	75,000	194,000
Current Loans	1,826,000	2,034,000
Total Loans	1,956,000	2,228,000
Total Real Estate
Past Due Loans	2,924,000	2,531,000
Nonaccrual	2,000,000	2,185,000
Current Loans	27,012,000	32,322,000
Total Loans	29,936,000	34,853,000
Consumer And Other Loans
Past Due Loans	146,000	236,000
Nonaccrual	0	0
Current Loans	1,122,000	1,137,000
Total Loans	1,268,000	1,373,000
Consumer And Other Loans | Consumer Installment
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	0	7,000
Total Loans	0	7,000
Consumer And Other Loans | Student Loans
Past Due Loans	146,000	224,000
Nonaccrual	0	0
Current Loans	995,000	997,000
Total Loans	1,141,000	1,221,000
Consumer And Other Loans | Other
Past Due Loans	0	12,000
Nonaccrual	0	0
Current Loans	127,000	133,000
Total Loans	127,000	145,000
Loans 30-89 Days Past Due
Past Due Loans	799,000	411,000
Loans 30-89 Days Past Due | Commercial And Industrial
Past Due Loans	0	0
Loans 30-89 Days Past Due | Commercial And Industrial | Commercial
Past Due Loans	0	0
Loans 30-89 Days Past Due | Commercial And Industrial | SBA Loans
Past Due Loans	0	0
Loans 30-89 Days Past Due | Commercial And Industrial | Asset Based Loans
Past Due Loans	0	0
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment
Past Due Loans	606,000	17,000
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | SBA Loans
Past Due Loans	0	0
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Past Due Loans	606,000	17,000
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | Construction
Past Due Loans	0	0
Loans 30-89 Days Past Due | Commercial Real Estate Portfolio Segment | Religious Organizations
Past Due Loans	0	0
Loans 30-89 Days Past Due | Consumer Real Estate
Past Due Loans	138,000	246,000
Loans 30-89 Days Past Due | Consumer Real Estate | Home Equity Line of Credit
Past Due Loans	0	0
Loans 30-89 Days Past Due | Consumer Real Estate | Home Equity Loans
Past Due Loans	83,000	246,000
Loans 30-89 Days Past Due | Consumer Real Estate | 1-4 family residential mortgages
Past Due Loans	55,000	0
Loans 30-89 Days Past Due | Total Real Estate
Past Due Loans	744,000	263,000
Loans 30-89 Days Past Due | Consumer And Other Loans
Past Due Loans	55,000	148,000
Loans 30-89 Days Past Due | Consumer And Other Loans | Consumer Installment
Past Due Loans	0	0
Loans 30-89 Days Past Due | Consumer And Other Loans | Student Loans
Past Due Loans	55,000	136,000
Loans 30-89 Days Past Due | Consumer And Other Loans | Other
Past Due Loans	0	12,000
Accruing Loans 90 or More Days Past Due
Past Due Loans	271,000	171,000
Accruing Loans 90 or More Days Past Due | Commercial And Industrial
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | Commercial
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | SBA Loans
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Commercial And Industrial | Asset Based Loans
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment
Past Due Loans	54,000	83,000
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | SBA Loans
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Past Due Loans	54,000	83,000
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | Construction
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Commercial Real Estate Portfolio Segment | Religious Organizations
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Consumer Real Estate
Past Due Loans	126,000	0
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | Home Equity Line of Credit
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | Home Equity Loans
Past Due Loans	126,000	0
Accruing Loans 90 or More Days Past Due | Consumer Real Estate | 1-4 family residential mortgages
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Total Real Estate
Past Due Loans	180,000	83,000
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans
Past Due Loans	91,000	88,000
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | Consumer Installment
Past Due Loans	0	0
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | Student Loans
Past Due Loans	91,000	88,000
Accruing Loans 90 or More Days Past Due | Consumer And Other Loans | Other
Past Due Loans	$ 0	$ 0

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6. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Commercial real estate	$ 27,010,000	$ 31,556,000
Consumer real estate	2,926,000	3,297,000
Consumer loans other	1,268,000	1,373,000
Total loans	34,555,000	40,861,000
Total Loans	34,554,640	40,861,890
Commercial And Industrial
Total Loans	3,351,000	4,635,000
Commercial And Industrial | Commercial
Total Loans	1,642,000	2,563,000
Commercial And Industrial | SBA Loans
Total Loans	151,000	168,000
Commercial Real Estate Portfolio Segment
Total Loans	27,010,000	31,556,000
Commercial Real Estate Portfolio Segment | SBA Loans
Total Loans	673,000	525,000
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Total Loans	13,399,000	15,470,000
Commercial Real Estate Portfolio Segment | Construction
Total Loans	2,529,000	3,423,000
Commercial Real Estate Portfolio Segment | Religious Organizations
Total Loans	10,409,000	12,138,000
Consumer Real Estate
Total Loans	2,926,000	3,297,000
Consumer And Other Loans
Total Loans	1,268,000	1,373,000
Good/Excellent
Total commercial loans	250,000	300,000
Good/Excellent | Commercial And Industrial
Total commercial loans	250,000	300,000
Good/Excellent | Commercial And Industrial | Commercial
Total commercial loans	250,000	300,000
Good/Excellent | Commercial And Industrial | SBA Loans
Total commercial loans	0	0
Good/Excellent | Commercial And Industrial | Asset Based
Total commercial loans	0	0
Good/Excellent | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	0	0
Good/Excellent | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	0	0
Good/Excellent | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Good/Excellent | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	0	0
Satisfactory
Total commercial loans	23,513,000	29,549,000
Satisfactory | Commercial And Industrial
Total commercial loans	2,440,000	3,135,000
Satisfactory | Commercial And Industrial | Commercial
Total commercial loans	1,120,000	1,321,000
Satisfactory | Commercial And Industrial | SBA Loans
Total commercial loans	8,000	80,000
Satisfactory | Commercial And Industrial | Asset Based
Total commercial loans	1,312,000	1,734,000
Satisfactory | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	399,000	237,000
Satisfactory | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	10,718,000	13,024,000
Satisfactory | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	2,529,000	3,423,000
Satisfactory | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	7,427,000	9,730,000
Pass
Total commercial loans	3,581,000	2,677,000
Pass | Commercial And Industrial
Total commercial loans	245,000	598,000
Pass | Commercial And Industrial | Commercial
Total commercial loans	18,000	474,000
Pass | Commercial And Industrial | SBA Loans
Total commercial loans	103,000	0
Pass | Commercial And Industrial | Asset Based
Total commercial loans	124,000	124,000
Pass | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	165,000	170,000
Pass | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	1,114,000	724,000
Pass | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Pass | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	2,057,000	1,185,000
Special Mention
Total commercial loans	1,342,000	980,000
Special Mention | Commercial And Industrial
Total commercial loans	0	220,000
Special Mention | Commercial And Industrial | Commercial
Total commercial loans	0	220,000
Special Mention | Commercial And Industrial | SBA Loans
Total commercial loans	0	0
Special Mention | Commercial And Industrial | Asset Based
Total commercial loans	0	0
Special Mention | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	0	0
Special Mention | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	620,000	57,000
Special Mention | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Special Mention | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	722,000	703,000
Substandard
Total commercial loans	1,376,000	2,233,000
Substandard | Commercial And Industrial
Total commercial loans	340,000	247,000
Substandard | Commercial And Industrial | Commercial
Total commercial loans	254,000	113,000
Substandard | Commercial And Industrial | SBA Loans
Total commercial loans	40,000	88,000
Substandard | Commercial And Industrial | Asset Based
Total commercial loans	46,000	46,000
Substandard | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	109,000	118,000
Substandard | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	724,000	1,348,000
Substandard | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Substandard | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	203,000	520,000
Doubtful
Total commercial loans	299,000	452,000
Doubtful | Commercial And Industrial
Total commercial loans	76,000	135,000
Doubtful | Commercial And Industrial | Commercial
Total commercial loans	0	135,000
Doubtful | Commercial And Industrial | SBA Loans
Total commercial loans	0	0
Doubtful | Commercial And Industrial | Asset Based
Total commercial loans	76,000	0
Doubtful | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	0	0
Doubtful | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	223,000	317,000
Doubtful | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Doubtful | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	0	0
Total
Total commercial loans	30,361,000	36,191,000
Consumer real estate	2,926,000	3,297,000
Total consumer loans	4,194,000	4,670,000
Total | Commercial And Industrial
Total commercial loans	3,351,000	4,635,000
Total | Commercial And Industrial | Commercial
Total commercial loans	1,642,000	2,563,000
Total | Commercial And Industrial | SBA Loans
Total commercial loans	151,000	168,000
Total | Commercial And Industrial | Asset Based
Total commercial loans	1,558,000	1,904,000
Total | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	673,000	525,000
Total | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	13,399,000	15,470,000
Total | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	2,529,000	3,423,000
Total | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	10,409,000	12,138,000
Total | Consumer Real Estate | Home Equity
Consumer real estate	949,000	1,047,000
Total | Consumer Real Estate | Home Equity Line Of Credit
Consumer real estate	21,000	22,000
Total | Consumer Real Estate | 1-4 Family Residential Mortgages
Consumer real estate	1,956,000	2,228,000
Total | Consumer And Other Loans | Consumer Installment
Consumer loans other	0	7,000
Total | Consumer And Other Loans | Student Loans
Consumer loans other	1,141,000	1,221,000
Total | Consumer And Other Loans | Other
Consumer loans other	127,000	145,000
Performing
Consumer real estate	2,492,000	2,735,000
Total consumer loans	3,760,000	4,108,000
Performing | Consumer Real Estate | Home Equity
Consumer real estate	500,000	679,000
Performing | Consumer Real Estate | Home Equity Line Of Credit
Consumer real estate	21,000	22,000
Performing | Consumer Real Estate | 1-4 Family Residential Mortgages
Consumer real estate	1,881,000	2,034,000
Performing | Consumer And Other Loans | Consumer Installment
Consumer loans other	0	7,000
Performing | Consumer And Other Loans | Student Loans
Consumer loans other	1,141,000	1,221,000
Performing | Consumer And Other Loans | Other
Consumer loans other	127,000	145,000
Nonperforming
Consumer real estate	434,000	562,000
Total consumer loans	434,000	562,000
Nonperforming | Consumer Real Estate | Home Equity
Consumer real estate	359,000	368,000
Nonperforming | Consumer Real Estate | Home Equity Line Of Credit
Consumer real estate	0	0
Nonperforming | Consumer Real Estate | 1-4 Family Residential Mortgages
Consumer real estate	75,000	194,000
Nonperforming | Consumer And Other Loans | Consumer Installment
Consumer loans other	0	0
Nonperforming | Consumer And Other Loans | Student Loans
Consumer loans other	0	0
Nonperforming | Consumer And Other Loans | Other
Consumer loans other	$ 0	$ 0

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6. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Unpaid Contractual Principal Balance	$ 1,899	$ 2,258
Recorded Investment With No Allowance	1,143	1,378
Recorded Investment With Allowance	544	627
Total Recorded Investment	1,687	2,005
Related Allowance	56	274
Commercial And Industrial
Unpaid Contractual Principal Balance	408	635
Recorded Investment With No Allowance	150	124
Recorded Investment With Allowance	46	258
Total Recorded Investment	196	382
Related Allowance	9	247
Commercial And Industrial | Commercial
Unpaid Contractual Principal Balance	322	501
Recorded Investment With No Allowance	110	38
Recorded Investment With Allowance	0	210
Total Recorded Investment	110	248
Related Allowance	0	199
Commercial And Industrial | SBA Loans
Unpaid Contractual Principal Balance	40	94
Recorded Investment With No Allowance	40	46
Recorded Investment With Allowance	0	48
Total Recorded Investment	40	94
Related Allowance	0	48
Commercial And Industrial | Asset Based Loans
Unpaid Contractual Principal Balance	46	40
Recorded Investment With No Allowance	0	40
Recorded Investment With Allowance	46	0
Total Recorded Investment	46	40
Related Allowance	9	0
Commercial Real Estate Portfolio Segment
Unpaid Contractual Principal Balance	1,491	1,623
Recorded Investment With No Allowance	996	1,254
Recorded Investment With Allowance	498	369
Total Recorded Investment	1,491	1,623
Related Allowance	47	27
Commercial Real Estate Portfolio Segment | SBA Loans
Unpaid Contractual Principal Balance	109	118
Recorded Investment With No Allowance	0	118
Recorded Investment With Allowance	109	0
Total Recorded Investment	109	118
Related Allowance	6	0
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Unpaid Contractual Principal Balance	894	985
Recorded Investment With No Allowance	505	616
Recorded Investment With Allowance	389	369
Total Recorded Investment	894	985
Related Allowance	41	27
Commercial Real Estate Portfolio Segment | Religious Organizations
Unpaid Contractual Principal Balance	488	520
Recorded Investment With No Allowance	488	520
Recorded Investment With Allowance	0	0
Total Recorded Investment	488	520
Related Allowance	$ 0	$ 0

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6. Loans and Allowance For Loan Losses: Schedule of Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Average Recorded Investment	$ 1,820	$ 1,979	$ 1,861	$ 1,952
Interest recognized on impaired loans	2	3	6	9
Commercial And Industrial
Average Recorded Investment	246	252	282	279
Interest recognized on impaired loans	2	3	4	3
Commercial And Industrial | Commercial
Average Recorded Investment	160	204	188	231
Interest recognized on impaired loans	0	3	0	3
Commercial And Industrial | SBA Loans
Average Recorded Investment	40	48	58	48
Interest recognized on impaired loans	1	0	2	0
Commercial And Industrial | Asset Based Loans
Average Recorded Investment	46	0	36	0
Interest recognized on impaired loans	1	0	2	0
Commercial Real Estate Portfolio Segment
Average Recorded Investment	1,574	1,727	1,579	1,673
Interest recognized on impaired loans	0	0	2	6
Commercial Real Estate Portfolio Segment | SBA Loans
Average Recorded Investment	110	122	112	125
Interest recognized on impaired loans	0	0	0	1
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Average Recorded Investment	976	995	971	931
Interest recognized on impaired loans	0	0	0	3
Commercial Real Estate Portfolio Segment | Religious Organizations
Average Recorded Investment	488	610	496	617
Interest recognized on impaired loans	$ 0	$ 0	$ 2	$ 2

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7. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Details
Other Real Estate, Beginning Balance	$ 757,043	$ 420,000	$ 563,543	$ 433,000
Additions, transfers from loans	0	240,000	149,000	240,000
Sales	(38,000)	(29,000)	(83,000)	(29,000)
Write-ups (downs)	0	0	89,000	(13,000)
Other Real Estate, Ending Balance	$ 718,793	$ 631,000	$ 718,793	$ 631,000

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7. Other Real Estate Owned: Schedule of Components of Other Real Estate Owned (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Other real estate owned	$ 718,793	$ 757,043	$ 563,543	$ 631,000	$ 420,000	$ 433,000
Commercial Real Estate
Other real estate owned	335,000		191,000
Residential Real Estate
Other real estate owned	$ 384,000		$ 373,000

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7. Other Real Estate Owned: Schedule of Components of Net Expense (income) of Other Real Estate Owned (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Professional fees	$ 76,977	$ 89,296	$ 242,392	$ 235,436
Impairment charges (net)			88,460	33,766
Total	9,999	(30,328)	(53,215)	6,828
Other Real Estate
Insurance	4,000	5,000	13,000	16,000
Professional fees	0	2,000	0	2,000
Real estate taxes	4,000	3,000	10,000	14,000
Utilities	1,000	1,000	2,000	3,000
Other	1,000	6,000	11,000	6,000
Transfer-in write up	0	(47,000)	(89,000)	(47,000)
Impairment charges (net)	$ 0	$ 0	$ 0	$ 13,000

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8. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Assets Measured at Fair Value	$ 7,164,000	$ 8,540,000
Loans held for sale, at fair value	535,344	6,160,183
Loans held at fair value	2,473,475	628,750
US Government Agency Securities
Assets Measured at Fair Value	3,090,000	4,036,000
Government Sponsored Enterprises residential mortgage-backed securities
Assets Measured at Fair Value	3,944,000	4,374,000
Investments in money market funds
Assets Measured at Fair Value	130,000	130,000
Fair Value, Inputs, Level 1
Assets Measured at Fair Value	130,000	130,000
Loans held for sale, at fair value	0	0
Loans held at fair value	0	0
Fair Value, Inputs, Level 1 | US Government Agency Securities
Assets Measured at Fair Value	0	0
Fair Value, Inputs, Level 1 | Government Sponsored Enterprises residential mortgage-backed securities
Assets Measured at Fair Value	0	0
Fair Value, Inputs, Level 1 | Investments in money market funds
Assets Measured at Fair Value	130,000	130,000
Fair Value, Inputs, Level 2
Assets Measured at Fair Value	7,034,000	8,410,000
Loans held for sale, at fair value	535,344	6,160,183
Loans held at fair value	0	0
Fair Value, Inputs, Level 2 | US Government Agency Securities
Assets Measured at Fair Value	3,090,000	4,036,000
Fair Value, Inputs, Level 2 | Government Sponsored Enterprises residential mortgage-backed securities
Assets Measured at Fair Value	3,944,000	4,374,000
Fair Value, Inputs, Level 2 | Investments in money market funds
Assets Measured at Fair Value	0	0
Fair Value, Inputs, Level 3
Assets Measured at Fair Value	0	0
Loans held for sale, at fair value	0	0
Loans held at fair value	2,473,475	628,750
Fair Value, Inputs, Level 3 | US Government Agency Securities
Assets Measured at Fair Value	0	0
Fair Value, Inputs, Level 3 | Government Sponsored Enterprises residential mortgage-backed securities
Assets Measured at Fair Value	0	0
Fair Value, Inputs, Level 3 | Investments in money market funds
Assets Measured at Fair Value	$ 0	$ 0

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8. Fair Value (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Investment securities available-for-sale, at fair value	$ 7,164,289	$ 8,539,892
Loans Held at Fair Value
Balance, Starting	629,000
Origination of loans	2,894,000
Principal repayments	(835,000)
Change in fair value of financial instruments	(215,000)
Balance, Ending	$ 2,473,000

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8. Fair Value: Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Loans held at fair value	$ 2,473,475	$ 628,750
Fair Value, Inputs, Level 3
Loans held at fair value	$ 2,473,475	$ 628,750
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Minimum
Constant prepayment rate	6.96%	7.58%
Weighted average discount rate	7.45%	9.02%
Weighted average life	3 years 5 months 1 day	3 years 9 months
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Maximum
Constant prepayment rate	9.68%	8.52%
Weighted average discount rate	9.58%	9.24%
Weighted average life	9 years 9 months 29 days	4 years 3 months

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8. Fair Value: Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Impaired Loans, Carrying Value
Assets, Fair Value, Nonrecurring	$ 1,687	$ 1,731
Total fair value loss during the year	0	(142)
Other Real Estate Owned
Assets, Fair Value, Nonrecurring	719	564
Total fair value loss during the year	88	(13)
Fair Value, Inputs, Level 1 | Impaired Loans, Carrying Value
Assets, Fair Value, Nonrecurring	0	0
Fair Value, Inputs, Level 1 | Other Real Estate Owned
Assets, Fair Value, Nonrecurring	0	0
Fair Value, Inputs, Level 2 | Impaired Loans, Carrying Value
Assets, Fair Value, Nonrecurring	0	0
Fair Value, Inputs, Level 2 | Other Real Estate Owned
Assets, Fair Value, Nonrecurring	0	0
Fair Value, Inputs, Level 3 | Impaired Loans, Carrying Value
Assets, Fair Value, Nonrecurring	1,687	1,731
Fair Value, Inputs, Level 3 | Other Real Estate Owned
Assets, Fair Value, Nonrecurring	$ 719	$ 564

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8. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Details) - USD ($)		Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Assets:
Cash and cash equivalents		$ 12,835,212	$ 3,236,582	$ 5,523,418	$ 5,789,778
Available for sale securities		7,164,289	8,539,892
Loans held for sale		535,344	6,160,183
Loans held at fair value		2,473,475	628,750
Loans, net of allowance for loan losses		34,085,381	40,127,323
Savings deposits		11,596,740	12,091,282
Accrued interest payable		13,228	16,253
Fair Value, Inputs, Level 1
Assets:
Loans held for sale		0	0
Loans held at fair value		0	0
Fair Value, Inputs, Level 2
Assets:
Loans held for sale		535,344	6,160,183
Loans held at fair value		0	0
Fair Value, Inputs, Level 3
Assets:
Loans held for sale		0	0
Loans held at fair value		2,473,475	628,750
Carrying Amount
Assets:
Available for sale securities	[1]	7,164,289	8,539,892
Carrying Amount | Fair Value, Inputs, Level 1
Assets:
Cash and cash equivalents		12,835,000	3,237,000
Carrying Amount | Fair Value, Inputs, Level 2
Assets:
Loans held for sale		535,344	6,160,183
Loans, net of allowance for loan losses	[2]	34,085,381	40,127,323
Accrued interest receivable		189,129	249,571
Demand Deposits		29,691,000	28,723,000
Savings deposits		11,597,000	12,091,000
Time deposits		14,586,000	16,148,000
Accrued interest payable			16,000
Carrying Amount | Fair Value, Inputs, Level 3
Assets:
Loans held at fair value		2,473,475	628,750
Fair Value
Assets:
Available for sale securities	[1]		8,539,892
Fair Value | Fair Value, Inputs, Level 1
Assets:
Cash and cash equivalents		12,835,000	3,237,000
Fair Value | Fair Value, Inputs, Level 2
Assets:
Loans held for sale		535,344	6,160,183
Loans, net of allowance for loan losses	[2]	34,524,000	40,069,000
Accrued interest receivable		189,129	249,571
Demand Deposits		29,691,000	28,723,000
Savings deposits		11,597,000	12,091,000
Time deposits		14,596,000	16,157,000
Accrued interest payable			16,000
Fair Value | Fair Value, Inputs, Level 3
Assets:
Loans held at fair value		$ 2,473,475	$ 628,750

[1] Level 1 for money market funds; Level 2 for all other securities.

[2] Level 2 for non-impaired loans; Level 3 for impaired loans.

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9. Regulatory: The requirements and status of items included in the Consent Orders (Details)	9 Months Ended
	Sep. 30, 2015
Details
Description of Regulatory Requirements, Prompt Corrective Action	Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period;

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9. Regulatory (Details) - BankMember	Sep. 30, 2015	Dec. 31, 2014
Tier One Leverage Capital Ratio	4.77%	5.18%
Risk Based Capital Ratio	8.67%	8.60%