LOANS HELD FOR INVESTMENT, NET (Tables)

3 Months Ended

Mar. 31, 2017

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:

	March 31, 2017					December 31, 2016
	Amount		Percent			Amount		Percent

Loans held for investment, net:
Commercial real estate	$	215,588,112		82.4	%	$	195,814,205		80.0	%
One- to four-family residential real estate		30,807,251		11.8	%		29,976,625		12.2	%
Commercial and industrial		10,072,491		3.9	%		9,876,020		4.0	%
Consumer and other		5,072,179		1.9	%		9,191,249		3.8	%
Total gross loans		261,540,033		100.0	%		244,858,099		100.0	%
Unamortized loan fees		(1,046,114)					(952,717)
Loans held for investment		260,493,919					243,905,382
Allowance for loan losses		(2,763,483)					(2,506,033)
Loans held for investment, net	$	257,730,436				$	241,399,349

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 March 31, 2017 and December 31, 2016:

	As of March 31, 2017
	Commercial Real Estate		One- to Four-Family Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
Allowance for loan losses
Ending balance: individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-
Ending balance: collectively evaluated for impairment		1,809,806		627,650		299,768		26,258		2,763,483
Total	$	1,809,806	$	627,650	$	299,768	$	26,258	$	2,763,483

Gross loans
Ending balance: individually evaluated for impairment	$	8,650,332	$	1,627,385	$	2,143,868	$	188,580	$	12,610,165
Ending balance: collectively evaluated for impairment		206,937,780		29,179,866		7,928,623		4,883,599		248,929,868
Ending balance: loans acquired with deteriorated credit quality		-		-		-		-		-
Total	$	215,588,112	$	30,807,251	$	10,072,491	$	5,072,179	$	261,540,033

	As of December 31, 2016
	Commercial Real Estate		One- to Four-Family Residential Real Estate		Commercial and Industrial		Consumer and 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

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 three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017		2016

Beginning balance	$	2,506,033	$	1,894,196

Provision for loan losses		250,000		52,000

Charge-offs:
Commercial real estate		-		-
One- to four-family residential real estate		-		(10,756)
Commercial and industrial		-		-
Consumer and other		-		-
Total charge-offs		-		(10,756)

Recoveries:
Commercial real estate		1,200		116,125
One- to four-family residential real estate		6,250		800
Commercial and industrial		-		-
Consumer and other		-		-
Total recoveries		7,450		116,925
Net recoveries		7,450		106,169

Ending balance	$	2,763,483	$	2,052,365

Past Due Financing Receivables [Table Text Block]

The following tables present an aging analysis of the recorded investment of past due loans as of March 31, 2017 and December 31, 2016. 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

March 31, 2017
Commercial real estate	$	-	$	-	$	3,717,827	$	3,717,827	$	211,870,285	$	215,588,112
One- to four-family residential real estate		569,490		94,939		37,499		701,928		30,105,323		30,807,251
Commercial and industrial		-		1,118,535		461,021		1,579,556		8,492,935		10,072,491
Consumer and other		38,751		-		-		38,751		5,033,428		5,072,179

Totals	$	608,241	$	1,213,474	$	4,216,347	$	6,038,062	$	255,501,971	$	261,540,033

	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

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following table sets forth nonaccrual loans and other real estate at March 31, 2017 and December 31, 2016:

	March 31,			December 31,
	2017			2016

Nonaccrual loans
Commercial real estate	$	3,717,827		$	3,718,686
One- to four-family residential real estate		605,603			648,880
Commercial and industrial		1,579,556			1,600,655
Consumer and other		-			-
Total nonaccrual loans		5,902,986			5,968,221
Other real estate (ORE)		-			-

Total nonperforming assets	$	5,902,986		$	5,968,221

Nonperforming assets to gross loans held for investment and ORE		2.26	%		2.44	%
Nonperforming assets to total assets		1.77	%		1.81	%

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table represents the credit exposure by internally assigned grades at March 31, 2017 and December 31, 2016. 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 March 31, 2017
			One- to Four-
			Family
	Commercial Real		Residential Real		Commercial and		Consumer and
	Estate		Estate		Industrial		Other		Total

Grade
Pass	$	206,937,780	$	29,179,866	$	7,928,623	$	4,883,599	$	248,929,868
Special mention		520,095		-		260,763		-		780,858
Substandard		8,130,237		1,627,385		1,587,105		188,580		11,533,307
Doubtful		-		-		296,000		-		296,000
Loss		-		-		-		-		-

Totals	$	215,588,112	$	30,807,251	$	10,072,491	$	5,072,179	$	261,540,033

	As of December 31, 2016
			One- to Four-
			Family
	Commercial Real		Residential Real		Commercial and		Consumer and
	Estate		Estate		Industrial		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

Impaired Financing Receivables [Table Text Block]

The following table includes 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 March 31, 2017
			Principal				Average
	Recorded		Net of		Related		Recorded
	Investment		Charge-offs		Allowance		Investment

With no related allowance recorded:
Commercial real estate	$	3,717,827	$	3,717,827	$	-	$	3,739,943
One- to four-family residential real estate		605,603		605,603		-		614,436
Commercial and industrial		1,579,556		1,579,556		-		1,626,532
Consumer and other		-		-		-		-

With an allowance recorded:	$	-	$	-	$	-	$	-

Total:
Commercial real estate	$	3,717,827	$	3,717,827	$	-	$	3,739,943
One- to four-family residential real estate		605,603		605,603		-		614,436
Commercial and industrial		1,579,556		1,579,556		-		1,626,532
Consumer and other		-		-		-		-

	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		-		-		-		-