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LOANS HELD FOR INVESTMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Schedule of Loans Held for Investment Net [Table Text Block]
The components of loans held for investment, net in the consolidated balance sheets were as follows:
 
 
 
December 31, 2016
 
December 31, 2015
 
 
 
Amount
 
Percent
 
Amount
 
Percent
 
 
 
 
 
 
 
 
 
 
 
Loans held for investment, net:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
195,814,205
 
 
80.0
%
$
146,643,998
 
 
75.3
%
One- to four-family residential real estate
 
 
29,976,625
 
 
12.2
%
 
31,412,437
 
 
16.1
%
Commercial and industrial
 
 
9,876,020
 
 
4.0
%
 
10,235,492
 
 
5.3
%
Consumer and other
 
 
9,191,249
 
 
3.8
%
 
6,428,765
 
 
3.3
%
Total gross loans
 
 
244,858,099
 
 
100.0
%
 
194,720,692
 
 
100.0
%
Unamortized loan fees
 
 
(952,717)
 
 
 
 
 
(689,102)
 
 
 
 
Loans held for investment
 
 
243,905,382
 
 
 
 
 
194,031,590
 
 
 
 
Allowance for loan losses
 
 
(2,506,033)
 
 
 
 
 
(1,894,196)
 
 
 
 
Loans held for investment, net
 
$
241,399,349
 
 
 
 
$
192,137,394
 
 
 
 
Allowance For Credit Losses On Financing Receivables Impairment [Table Text Block]
The following is a summary of the allowance for loan losses and recorded investment in loans as of December 31, 2016 and 2015:
  
 
 
As of December 31, 2016
 
 
 
 
 
One- to Four-
 
 
 
 
 
 
 
 
 
 
 
Family
 
 
 
 
 
 
 
 
 
Commercial
 
Residential Real
 
Commercial and
 
Commercial and
 
 
 
 
 
Real Estate
 
Estate
 
Industrial
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
Ending balance: collectively evaluated for impairment
 
 
1,688,448
 
 
617,912
 
 
147,371
 
 
52,302
 
 
2,506,033
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
1,688,448
 
$
617,912
 
$
147,371
 
$
52,302
 
$
2,506,033
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
3,441,874
 
$
1,744,062
 
$
801,078
 
$
194,068
 
$
6,181,082
 
Ending balance: collectively evaluated for impairment
 
 
192,372,331
 
 
28,232,563
 
 
9,074,942
 
 
8,997,181
 
 
238,677,017
 
Ending balance: loans acquired with deteriorated credit quality
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
195,814,205
 
$
29,976,625
 
$
9,876,020
 
$
9,191,249
 
$
244,858,099
 
 
 
 
As of December 31, 2015
 
 
 
 
 
One- to Four-
 
 
 
 
 
 
 
 
 
 
 
Family
 
 
 
 
 
 
 
 
 
Commercial
 
Residential Real
 
Commercial and
 
Commercial and
 
 
 
 
 
Real Estate
 
Estate
 
Industrial
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
Ending balance: collectively evaluated for impairment
 
 
1,136,458
 
 
656,089
 
 
63,527
 
 
38,122
 
 
1,894,196
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
1,136,458
 
$
656,089
 
$
63,527
 
$
38,122
 
$
1,894,196
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
2,221,619
 
$
1,830,826
 
$
354,208
 
$
-
 
$
4,406,653
 
Ending balance: collectively evaluated for impairment
 
 
144,422,379
 
 
29,581,611
 
 
9,881,284
 
 
6,428,765
 
 
190,314,039
 
Ending balance: loans acquired with deteriorated credit quality
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
146,643,998
 
$
31,412,437
 
$
10,235,492
 
$
6,428,765
 
$
194,720,692
 
Allowance for Credit Losses on Financing Receivables [Table Text Block]
The following is a summary of activities for the allowance for loan losses for the years ended December 31, 2016 and 2015:
 
 
 
Year ended
 
Year ended
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Beginning balance
 
$
1,894,196
 
$
1,707,282
 
 
 
 
 
 
 
 
 
Provision for (credit to) loan losses
 
 
1,019,000
 
 
694,000
 
 
 
 
 
 
 
 
 
Charge-offs:
 
 
 
 
 
 
 
Commercial real estate
 
 
-
 
 
-
 
One- to four-family residential real estate
 
 
(140,725)
 
 
(339,352)
 
Commercial and industrial
 
 
(384,563)
 
 
(354,000)
 
Consumer and other
 
 
-
 
 
(160)
 
Total charge-offs
 
 
(525,288)
 
 
(693,512)
 
 
 
 
 
 
 
 
 
Recoveries:
 
 
 
 
 
 
 
Commercial real estate
 
 
116,125
 
 
183,546
 
One- to four-family residential real estate
 
 
2,000
 
 
2,800
 
Commercial and industrial
 
 
-
 
 
-
 
Consumer and other
 
 
-
 
 
80
 
Total recoveries
 
 
118,125
 
 
186,426
 
Net (charge-offs) recoveries
 
 
(407,163)
 
 
(507,086)
 
 
 
 
 
 
 
 
 
Ending balance
 
$
2,506,033
 
$
1,894,196
 
Past Due Financing Receivables [Table Text Block]
The following tables present an aging analysis of the recorded investment of past due loans as of December 31, 2016 and 2015. Payment activity is reviewed by management on a monthly basis to determine the performance of each loan. Per Company policy, loans past due 90 days or more no longer accrue interest.
 
 
 
Past Due
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
Financing
 
 
 
30 - 59 Days
 
60 - 89 Days
 
or More
 
Total
 
Current
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
550,000
 
$
-
 
$
-
 
$
550,000
 
$
195,264,205
 
$
195,814,205
 
One- to four-family residential real estate
 
 
108,080
 
 
501,316
 
 
68,906
 
 
678,302
 
 
29,298,323
 
 
29,976,625
 
Commercial and industrial
 
 
1,139,634
 
 
-
 
 
461,021
 
 
1,600,655
 
 
8,275,365
 
 
9,876,020
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
9,191,249
 
 
9,191,249
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals
 
$
1,797,714
 
$
501,316
 
$
529,927
 
$
2,828,957
 
$
242,029,142
 
$
244,858,099
 
 
 
 
 
Past Due
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
Financing
 
 
 
30 - 59 Days
 
60 - 89 Days
 
or More
 
Total
 
Current
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
-
 
$
-
 
$
-
 
$
-
 
$
146,643,998
 
$
146,643,998
 
One- to four-family residential real estate
 
 
314,541
 
 
173,467
 
 
788,159
 
 
1,276,167
 
 
30,136,270
 
 
31,412,437
 
Commercial and industrial
 
 
-
 
 
-
 
 
-
 
 
-
 
 
10,235,492
 
 
10,235,492
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
6,428,765
 
 
6,428,765
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals
 
$
314,541
 
$
173,467
 
$
788,159
 
$
1,276,167
 
$
193,444,525
 
$
194,720,692
 
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]
The following table sets forth nonaccrual loans and other real estate at December 31, 2016 and 2015:
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans
 
 
 
 
 
 
 
 
Commercial real estate
 
$
3,718,686
 
 
$
-
 
One- to four-family residential real estate
 
 
648,880
 
 
 
1,489,851
 
Commercial and industrial
 
 
1,600,655
 
 
 
354,208
 
Consumer and other
 
 
-
 
 
 
-
 
Total nonaccrual loans
 
 
5,968,221
 
 
 
1,844,059
 
Other real estate (ORE)
 
 
-
 
 
 
306,000
 
 
 
 
 
 
 
 
 
 
Total nonperforming assets
 
$
5,968,221
 
 
$
2,150,059
 
 
 
 
 
 
 
 
 
 
Nonperforming assets to gross loans held for investment and ORE
 
 
2.44
%
 
 
1.10
%
Nonperforming assets to total assets
 
 
1.81
%
 
 
0.79
%
Financing Receivable Credit Quality Indicators [Table Text Block]
The following table represents the credit exposure by internally assigned grades at December 31, 2016 and 2015. This grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements in accordance with the loan terms. The Bank’s internal credit risk grading system is based on management’s experiences with similarly graded loans. Credit risk grades are reassessed each quarter based on any recent developments potentially impacting the creditworthiness of the borrower, as well as other external statistics and factors, which may affect the risk characteristics of the respective loan .
 
 
 
As of December 31, 2016
 
 
 
Commercial
Real Estate
 
 
One- to Four-
Family
Residential Real
Estate
 
 
Commercial and
Industrial
 
 
Consumer and
Other
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grade
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
$
187,069,284
 
 
$
28,232,563
 
 
$
7,697,960
 
 
$
8,997,181
 
 
$
231,996,988
 
Special mention
 
 
523,207
 
 
 
65,457
 
 
 
267,327
 
 
 
-
 
 
 
855,991
 
Substandard
 
 
8,221,714
 
 
 
1,678,605
 
 
 
1,614,733
 
 
 
194,068
 
 
 
11,709,120
 
Doubtful
 
 
-
 
 
 
-
 
 
 
296,000
 
 
 
-
 
 
 
296,000
 
Loss
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals
 
$
195,814,205
 
 
$
29,976,625
 
 
$
9,876,020
 
 
$
9,191,249
 
 
$
244,858,099
 
 
 
 
As of December 31, 2015
 
 
 
Commercial
Real Estate
 
 
One- to Four-
Family
Residential Real
Estate
 
 
Commercial and
Industrial
 
 
Consumer and
Other
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grade
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
$
142,560,320
 
 
$
29,434,236
 
 
$
9,785,619
 
 
$
6,428,765
 
 
$
188,208,940
 
Special mention
 
 
1,862,059
 
 
 
147,375
 
 
 
95,665
 
 
 
-
 
 
 
2,105,099
 
Substandard
 
 
2,221,619
 
 
 
1,830,826
 
 
 
-
 
 
 
-
 
 
 
4,052,445
 
Doubtful
 
 
-
 
 
 
-
 
 
 
354,208
 
 
 
-
 
 
 
354,208
 
Loss
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals
 
$
146,643,998
 
 
$
31,412,437
 
 
$
10,235,492
 
 
$
6,428,765
 
 
$
194,720,692
 
Impaired Financing Receivables [Table Text Block]
The following tables include the recorded investment and unpaid principal balances, net of charge-offs for impaired loans with the associated allowance amount, if applicable. Management determined the allocated allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less selling costs was used to determine the allocated allowance recorded.
 
 
 
As of December 31, 2016
 
 
 
 
 
 
Principal
 
 
 
 
Average
 
 
 
Recorded
 
Net of
 
Related
 
Recorded
 
 
 
Investment
 
Charge-offs
 
Allowance
 
Investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
3,718,686
 
$
3,718,686
 
$
-
 
$
1,385,277
 
One- to four-family residential real estate
 
 
648,880
 
 
648,880
 
 
-
 
 
656,495
 
Commercial and industrial
 
 
1,600,655
 
 
1,600,655
 
 
-
 
 
1,075,536
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
$
-
 
$
-
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
3,718,686
 
$
3,718,686
 
$
-
 
$
1,385,277
 
One- to four-family residential real estate
 
 
648,880
 
 
648,880
 
 
-
 
 
656,495
 
Commercial and industrial
 
 
1,600,655
 
 
1,600,655
 
 
-
 
 
1,075,536
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Principal
 
 
 
 
Average
 
 
 
Recorded
 
Net of
 
Related
 
Recorded
 
 
 
Investment
 
Charge-offs
 
Allowance
 
Investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
-
 
$
-
 
$
-
 
$
-
 
One- to four-family residential real estate
 
 
1,489,851
 
 
1,489,851
 
 
-
 
 
1,949,279
 
Commercial and industrial
 
 
354,208
 
 
354,208
 
 
-
 
 
733,940
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
$
-
 
$
-
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
-
 
$
-
 
$
-
 
$
-
 
One- to four-family residential real estate
 
 
1,489,851
 
 
1,489,851
 
 
-
 
 
1,949,279
 
Commercial and industrial
 
 
354,208
 
 
354,208
 
 
-
 
 
733,940
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-