Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2020

Categories of loans at September 30, 2020 and December 31, 2019 include:


	September 30,		December 31,
	2020		2019
	(Unaudited)

One to four family mortgage loans - owner occupied	$	79,018,999	$	91,919,064
One to four family - investment		12,570,884		12,846,342
Multi-family mortgage loans		38,680,588		36,628,238
Nonresidential mortgage loans		26,728,087		23,377,598
Construction and land loans		5,611,889		5,329,188
Real estate secured lines of credit		10,560,399		10,029,917
Commercial loans		1,396,309		557,268
Other consumer loans		333,617		863,546
Total loans		174,900,772		181,551,161

Less:
Net deferred loan costs		(342,969)		(482,681)
Undisbursed portion of loans		3,926,225		1,294,271
Allowance for loan losses		1,472,545		1,407,545

Net loans	$	169,844,971	$	179,332,026

Schedule of allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method

The following tables present the activity in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three months and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019:


	At or for the Nine Months Ended September 30, 2020 (Unaudited)
	One- to Four-		One- to Four-
	Family		Family								Real Estate
	Mortgage		Mortgage		Multi-Family		Nonresidential		Construction		Secured				Other
	Loans Owner		Loans		Mortgage		Mortgage		& Land		Lines of		Commercial		Consumer
	Occupied		Investment		Loans		Loans		Loans		Credit		Loans		Loans		Total
Allowance for loan losses:
Balance, beginning of period	$	324,647	$	82,219	$	524,183	$	277,026	$	69,457	$	105,187	$	11,408	$	13,418	$	1,407,545
Provision (credit) charged to expense		53,694		1,349		(155,411)		157,250		15,485		(18,670)		19,080		(7,777)		65,000
Losses charged off		—		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—		—		—
Balance, end of period	$	378,341	$	83,568	$	368,772	$	434,276	$	84,942	$	86,517	$	30,488	$	5,641	$	1,472,545

Ending balance: Individually evaluated for impairment	$	20,722	$	8,013	$	—	$	—	$	—	$	—	$	—	$	—	$	28,735

Ending balance: Collectively evaluated for impairment	$	357,619	$	75,555	$	368,772	$	434,276	$	84,942	$	86,517	$	30,488	$	5,641	$	1,443,810
Loans:
Ending balance	$	79,018,999	$	12,570,884	$	38,680,588	$	26,728,087	$	5,611,889	$	10,560,399	$	1,396,309	$	333,617	$	174,900,772

Ending balance: Individually evaluated for impairment	$	1,160,983	$	569,212	$	213,116	$	43,562	$	—	$	59,268	$	—	$	—	$	2,046,141

Ending balance: Collectively evaluated for impairment	$	77,858,016	$	12,001,672	$	38,467,472	$	26,684,525	$	5,611,889	$	10,501,131	$	1,396,309	$	333,617	$	172,854,631


	At or for the Three Months Ended September 30, 2020 (Unaudited)
	One- to Four-
	Family		One- to Four-
	Mortgage		Family								Real Estate
	Loans		Mortgage		Multi-Family		Nonresidential		Construction &		Secured				Other
	Owner		Loans		Mortgage		Mortgage		Land		Lines of		Commercial		Consumer
	Occupied		Investment		Loans		Loans		Loans		Credit		Loans		Loans		Total
Allowance for loan losses:
Balance, beginning of period	$	449,513	$	97,741	$	348,117	$	397,222	$	75,594	$	65,722	$	32,220	$	6,416	$	1,472,545
Provision (credit) charged to expense		(71,172)		(14,173)		20,655		37,054		9,348		20,795		(1,732)		(775)		—
Losses charged off		—		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—		—		—
Balance, end of period	$	378,341	$	83,568	$	368,772	$	434,276	$	84,942	$	86,517	$	30,488	$	5,641	$	1,472,545


	At or for Nine Months Ended September 30, 2019 (Unaudited)
	One- to Four-
	Family		One- to Four-								Real
	Mortgage		Family								Estate
	Loans		Mortgage		Multi-Family		Nonresidential		Construction &		Secured				Other
	Owner		Loans		Mortgage		Mortgage		Land		Lines of		Commercial		Consumer
	Occupied		Investment		Loans		Loans		Loans		Credit		Loans		Loans		Total
Allowance for loan losses:
Balance, beginning of period	$	456,630	$	123,017	$	224,384	$	182,338	$	100,187	$	296,873	$	9,001	$	12,642	$	1,405,072
Provision (credit) charged to expense		(81,169)		(27,962)		138,667		6,201		(10,142)		(1,320)		(1,443)		2,168		25,000
Losses charged off		(14,431)		(8,012)		—		—		—		—		—		(84)		(22,527)
Recoveries		—		—		—		—		—		—		—		—		—
Balance, end of period	$	361,030	$	87,043	$	363,051	$	188,539	$	90,045	$	295,553	$	7,558	$	14,726	$	1,407,545


	At or for the Three Months Ended September 30, 2019 (Unaudited)
	One- to Four-		One- to Four-
	Family		Family								Real Estate
	Mortgage		Mortgage		Multi-Family		Nonresidential		Construction		Secured				Other
	Loans Owner		Loans		Mortgage		Mortgage		& Land		Lines of		Commercial		Consumer
	Occupied		Investment		Loans		Loans		Loans		Credit		Loans		Loans		Total
Allowance for loan losses:
Balance, beginning of period	$	456,630	$	123,017	$	224,384	$	182,338	$	100,187	$	296,873	$	9,001	$	12,558	$	1,404,988
Provision (credit) charged to expense		(81,169)		(27,962)		138,667		6,201		(10,142)		(1,320)		(1,443)		2,168		25,000
Losses charged off		(14,431)		(8,012)		—		—		—		—		—		—		(22,443)
Recoveries		—		—		—		—		—		—		—		—		—
Balance, end of period	$	361,030	$	87,043	$	363,051	$	188,539	$	90,045	$	295,553	$	7,558	$	14,726	$	1,407,545


	At or For the Year Ended December 31, 2019
	One- to Four-		One- to Four-
	Family		Family								Real Estate
	Mortgage		Mortgage		Multi-Family		Nonresidential		Construction		Secured				Other
	Loans Owner		Loans		Mortgage		Mortgage		& Land		Lines of		Commercial		Consumer
	Occupied		Investment		Loans		Loans		Loans		Credit		Loans		Loans		Total

Allowance for loan losses:
Balance, beginning of year	$	456,630	$	123,017	$	224,384	$	182,338	$	100,187	$	296,873	$	9,001	$	12,642	$	1,405,072
Provision (credit) charged to expense		(117,552)		(32,786)		299,799		94,688		(30,730)		(191,686)		2,407		860		25,000
Recoveries		(14,431)		(8,012)		—		—		—		—		—		(84)		(22,527)
Balance, end of year	$	324,647	$	82,219	$	524,183	$	277,026	$	69,457	$	105,187	$	11,408	$	13,418	$	1,407,545

Ending balance: Individually evaluated for impairment	$	20,722	$	8,013	$	—	$	—	$	—	$	—	$	—	$	—	$	28,735

Ending balance: Collectively evaluated for impairment	$	303,925	$	74,206	$	524,183	$	277,026	$	69,457	$	105,187	$	11,408	$	13,418	$	1,378,810
Loans:
Ending balance	$	91,919,064	$	12,846,342	$	36,628,238	$	23,377,598	$	5,329,188	$	10,029,917	$	557,268	$	863,546	$	181,551,161

Ending balance: Individually evaluated for impairment	$	1,115,573	$	760,733	$	507,066	$	56,190	$	—	$	81,505	$	—	$	—	$	2,521,067

Ending balance: Collectively evaluated for impairment	$	90,803,491	$	12,085,609	$	36,121,172	$	23,321,408	$	5,329,188	$	9,948,412	$	557,268	$	863,546	$	179,030,094

Schedule of credit risk profile of the Company's loan portfolio based on internal rating category and payment activity

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of September 30, 2020 and December 31, 2019:


	September 30, 2020 (Unaudited)
	One- to Four-		One- to Four-
	Family Mortgage		Family Mortgage								Real Estate				Other
	Loans - Owner		Loans -		Multi-Family		Nonresidential		Construction &		Secured Lines of		Commercial		Consumer
	Occupied		Investment		Mortgage Loans		Mortgage Loans		Land Loans		Credit		Loans		Loans		Total

Pass	$	78,330,038	$	11,927,786	$	38,599,760	$	26,206,289	$	5,611,889	$	10,407,609	$	1,396,309	$	333,617	$	172,813,297
Special mention		115,200		528,524		—		521,798		—		—		—		—		1,165,522
Substandard		573,761		114,574		80,828		—		—		152,790		—		—		921,953
Doubtful		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—

Total	$	79,018,999	$	12,570,884	$	38,680,588	$	26,728,087	$	5,611,889	$	10,560,399	$	1,396,309	$	333,617	$	174,900,772


	December 31, 2019
	One- to Four-		One- to Four-
	Family Mortgage		Family Mortgage								Real Estate				Other
	Loans - Owner		Loans -		Multi-Family		Nonresidential		Construction &		Secured Lines of		Commercial		Consumer
	Occupied		Investment		Mortgage Loans		Mortgage Loans		Land Loans		Credit		Loans		Loans		Total

Pass	$	91,281,765	$	12,115,427	$	36,256,469	$	22,813,758	$	5,329,188	$	9,870,477	$	557,268	$	863,546	$	179,087,898
Special mention		—		548,876		—		563,840		—		—		—		—		1,112,716
Substandard		637,299		182,039		371,769		—		—		159,440		—		—		1,350,547
Doubtful		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—

Total	$	91,919,064	$	12,846,342	$	36,628,238	$	23,377,598	$	5,329,188	$	10,029,917	$	557,268	$	863,546	$	181,551,161

Schedule of loan portfolio aging analysis of the recorded investment in loans

The following tables present the loan portfolio aging analysis of the recorded investment in loans as of September 30, 2020 and December 31, 2019:


	September 30, 2020 (Unaudited)
					90 Days and								Total Loans >
	30‑59 Days Past		60‑89 Days		Greater		Total Past				Total Loans		90 Days Past
	Due		Past Due		Past Due		Due		Current		Receivable		Due & Accruing

One to four-family mortgage loans	$	—	$	—	$	174,585	$	174,585	$	78,844,414	$	79,018,999	$	—
One to four family - investment		—		—		—		—		12,570,884		12,570,884		—
Multi-family mortgage loans		—		—		—		—		38,680,588		38,680,588		—
Nonresidential mortgage loans		—		—		—		—		26,728,087		26,728,087		—
Construction & land loans		—		—		—		—		5,611,889		5,611,889		—
Real estate secured lines of credit		—		—		—		—		10,560,399		10,560,399		—
Commercial loans		—		—		—		—		1,396,309		1,396,309		—
Other consumer loans		—		—		—		—		333,617		333,617		—

Total	$	—	$	—	$	174,585	$	174,585	$	174,726,187	$	174,900,772	$	—


	December 31, 2019
					90 Days and								Total Loans >
	30‑59 Days Past		60‑89 Days		Greater		Total Past				Total Loans		90 Days Past
	Due		Past Due		Past Due		Due		Current		Receivable		Due & Accruing

One to four-family mortgage loans	$	—	$	—	$	110,934	$	110,934	$	91,808,130	$	91,919,064	$	—
One to four family - investment		—		—		—		—		12,846,342		12,846,342		—
Multi-family mortgage loans		—		—		—		—		36,628,238		36,628,238		—
Nonresidential mortgage loans		—		—		—		—		23,377,598		23,377,598		—
Construction & land loans		—		—		—		—		5,329,188		5,329,188		—
Real estate secured lines of credit		97,679		—		—		97,679		9,932,238		10,029,917		—
Commercial loans		—		—		—		—		557,268		557,268		—
Other consumer loans		—		—		—		—		863,546		863,546		—

Total	$	97,679	$	—	$	110,934	$	208,613	$	181,342,548	$	181,551,161	$	—

Schedule of impaired loans

The following tables present impaired loans for September 30, 2020, September 30, 2019 and December 31, 2019:


							For the Three Months Ended				For the Nine Months Ended
	At September 30, 2020 (Unaudited)						September 30, 2020				September 30, 2020
							Average				Average
			Unpaid				Investment				Investment
	Recorded		Principal		Specific		in Impaired		Interest Income		in Impaired		Interest Income
	Balance		Balance		Allowance		Loans		Recognized		Loans		Recognized
Loans without a specific valuation allowance	(Unaudited)
One- to four-family mortgage loans	$	1,101,454	$	1,101,454	$	—	$	1,104,471		12,064	$	1,110,663	$	37,388
One to four family - investment		358,573		358,573		—		362,529		5,591		367,480		16,538
Multi-family mortgage loans		213,116		213,116		—		213,755		2,963		370,624		19,239
Nonresidential mortgage loans		43,562		43,562		—		45,581		636		49,805		2,116
Construction & land loans		—		—		—		—		—		—		—
Real estate secured lines of credit		59,268		59,268		—		59,735		1,028		60,527		3,116
Commercial Loans		—		—		—		—		—		—		—
Other consumer loans		—		—		—		—		—		—		—
Loans with a specific valuation allowance
One- to four-family mortgage loans		59,529		80,251		20,722		80,390		259		80,934		1,439
One to four family - investment		210,639		218,652		8,013		219,921		1,008		220,921		8,389
Multi-family mortgage loans		—		—		—		—		—		—		—
Nonresidential mortgage loans		—		—		—		—		—		—		—
Construction & land loans		—		—		—		—		—		—		—
Real estate secured lines of credit		—		—		—		—		—		—		—
Commercial Loans		—		—		—		—		—		—		—
Other consumer loans		—		—		—		—		—		—		—

	$	2,046,141	$	2,074,876	$	28,735	$	2,086,382	$	23,549	$	2,260,954	$	88,225


							For the Three Months Ended				For the Nine Months Ended
	At September 30, 2019 (Unaudited)						September 30, 2019				September 30, 2019
							Average				Average
			Unpaid				Investment				Investment
	Recorded		Principal		Specific		in Impaired		Interest Income		in Impaired		Interest Income
	Balance		Balance		Allowance		Loans		Recognized		Loans		Recognized
	(Unaudited)
Loans without a specific valuation allowance
One- to four-family mortgage loans	$	1,014,485	$	1,014,485	$	—	$	1,017,137		11,815	$	1,037,293	$	38,717
One to four family - investment		378,530		378,530		—		381,591		5,949		385,557		16,101
Multi-family mortgage loans		508,621		508,621		—		509,764		12,797		511,849		29,566
Nonresidential mortgage loans		75,852		75,852		—		77,662		1,182		79,530		2,415
Construction & land loans		—		—		—		—		—		—		—
Real estate secured lines of credit		83,926		83,926		—		85,497		1,380		87,490		3,943
Commercial Loans		—		—		—		—		—		—		—
Other consumer loans		—		—		—		—		—		—		—
Loans with a specific valuation allowance
One- to four-family mortgage loans		66,568		68,366		1,798		68,366		—		68,366		—
One to four family - investment		361,668		397,470		35,802		399,117		4,807		403,613		15,593
Multi-family mortgage loans		—		—		—		—		—		—		—
Nonresidential mortgage loans		—		—		—		—		—		—		—
Construction & land loans		—		—		—		—		—		—		—
Real estate secured lines of credit		—		—		—		—		—		—		—
Commercial Loans		—		—		—		—		—		—		—
Other consumer loans		—		—		—		—		—		—		—

	$	2,489,650	$	2,527,250	$	37,600	$	2,539,134	$	37,930	$	2,573,698	$	106,335


	December 31, 2019
							Average
			Unpaid				Investment
	Recorded		Principal		Specific		in Impaired		Interest Income
	Balance		Balance		Allowance		Loans		Recognized
Loans without a specific valuation allowance
One- to four-family mortgage loans	$	1,054,515	$	1,054,515	$	—	$	1,077,076	$	52,394
One- to four-family - investment		374,389		374,389		—		383,268		21,191
Multi-family mortgage loans		507,066		507,066		—		510,866		43,647
Nonresidential mortgage loans		56,190		56,190		—		75,260		4,583
Construction & land loans		—		—		—		—		—
Real estate secured lines of credit		81,505		81,505		—		86,326		5,416
Commercial loans		—		—		—		—		—
Other consumer loans		—		—		—		—		—
Loans with a specific valuation allowance
One- to four-family mortgage loans		61,058		81,780		20,722		79,941		1,170
One- to four-family - investment		386,344		394,357		8,013		401,718		19,965
Multi-family mortgage loans		—		—		—		—		—
Nonresidential mortgage loans		—		—		—		—		—
Construction & land loans		—		—		—		—		—
Real estate secured lines of credit		—		—		—		—		—
Commercial loans		—		—		—		—		—
Other consumer loans		—		—		—		—		—

	$	2,521,067	$	2,549,802	$	28,735	$	2,614,455	$	148,366

Schedule of nonaccrual loans

The following table presents the nonaccrual loans at September 30, 2020 and December 31, 2019. This table excludes accruing TDRs, which totaled $1,068,000 and $1,445,000 at September 30, 2020 and December 31, 2019, respectively.


	September 30,		December 31,
	2020		2019
		(Unaudited)
One- to four-family mortgage loans	$	174,585	$	110,934
One to four family - investment		—		—
Multi-family mortgage loans		—		—
Nonresidential mortgage loans		—		—
Construction and land loans		—		—
Real estate secured lines of credit		—		—
Commercial loans		—		—
Other consumer loans		—		—

Total	$	174,585	$	110,934

Schedule of Troubled Debt Restructurings

There were no newly classified TDRs at September 30, 2020. The following table presents the newly classified TDR’s at December 31, 2019:


	December 31, 2019
		Pre-Modification		Post-Modification
	Number of	Recorded		Recorded
	Loans	Balance		Balance
Mortgage loans on real estate:
Residential 1-4 family - owner occupied	3	$	266,418	$	240,926
Residential 1-4 family - investment	—		—		—
Multifamily	—		—		—
Nonresidential mortgage loans	—		—		—
Construction & land loans	—		—		—
Construction & land loans	—		—		—
Real estate secured lines of credit	1		—		40,627
Commercial loans	—		—		—
Consumer loans	—		—		—

	4	$	266,418	$	281,553

Newly classified TDRs, by type of modification, are as follows for December 31, 2019:


	December 31, 2019
	Interest Only		Term		Combination		Total Modification
Mortgage loans on real estate:
Residential 1-4 family - owner occupied	$	—	$	—	$	240,926	$	240,926
Residential 1-4 family - investment		—		—		—		—
Multifamily		—		—		—		—
Nonresidential mortgage loans		—		—		—		—
Construction & land loans		—		—		—		—
Real estate secured lines of credit		40,627		—		—		40,627
Commercial loans		—		—		—		—
Consumer loans		—		—		—		—

	$	40,627	$	—	$	240,926	$	281,553