Cincinnati Bancorp, Inc. - Quarter Report: 2021 June (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-39188
(Exact name of registrant as specified in its charter)
Maryland | 84-2848636 |
(State or other jurisdiction of | (I.R.S. Employer |
6581 Harrison Avenue, Cincinnati, Ohio | 45247 |
(Address of principal executive offices) | (Zip Code) |
(513) 574-3025
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Common stock, $0.01 par value per share | CNNB | The Nasdaq Stock Market, LLC | ||
(Title of Each Class) | (Trading Symbol(s)) |
| (Name of Each Exchange on Which Registered) |
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 ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule #12b-2 of the Exchange Act.
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ⌧ | Smaller reporting company ☒ |
| Emerging Growth Company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes ☐ No ☒
The number of outstanding shares of the registrant’s common stock as of August 11, 2021 was 2,933,625.
Cincinnati Bancorp, Inc.
Form 10-Q
Index
Part I. – Financial Information
Item 1. Financial Statements
Cincinnati Bancorp, Inc.
Condensed Consolidated Balance Sheets
June 30, 2021 (Unaudited) and December 31, 2020
| June 30, |
| December 31, | |||
2021 | 2020 | |||||
Assets |
|
|
|
| ||
Cash and due from banks | $ | 2,108,054 | $ | 2,951,787 | ||
Interest-bearing demand deposits in banks |
| 7,477,440 |
| 23,558,019 | ||
Federal funds sold |
| 6,152,000 |
| 5,838,000 | ||
Cash and cash equivalents |
| 15,737,494 |
| 32,347,806 | ||
Interest-bearing time deposits | 1,500,000 | 3,000,000 | ||||
Available-for-sale debt securities |
| 9,170,776 |
| 5,213,830 | ||
Loans held for sale |
| 12,822,300 |
| 13,345,370 | ||
Loans, net of allowance for loan losses of $1,672,545 and $1,672,545, respectively |
| 192,343,365 |
| 166,667,918 | ||
Premises and equipment, net |
| 3,474,669 |
| 3,487,826 | ||
Federal Home Loan Bank stock |
| 3,766,100 |
| 2,801,800 | ||
Interest receivable |
| 566,796 |
| 520,775 | ||
Mortgage servicing rights |
| 2,716,301 |
| 2,025,323 | ||
Federal Home Loan Bank lender risk account receivable |
| 1,927,124 |
| 1,947,271 | ||
Bank-owned life insurance |
| 4,213,985 |
| 4,172,486 | ||
Other assets |
| 1,531,028 |
| 1,603,150 | ||
| ||||||
Total assets | $ | 249,769,938 | $ | 237,133,555 | ||
| ||||||
Liabilities and Stockholders' Equity |
|
| ||||
| ||||||
Liabilities |
|
| ||||
Deposits |
|
| ||||
Demand | $ | 40,297,353 | $ | 41,945,628 | ||
Savings |
| 54,524,077 |
| 48,056,629 | ||
Certificates of deposit |
| 62,473,051 |
| 62,204,786 | ||
Total deposits |
| 157,294,481 |
| 152,207,043 | ||
| ||||||
Federal Home Loan Bank advances |
| 46,312,000 |
| 38,412,000 | ||
Advances from borrowers for taxes and insurance |
| 1,018,783 |
| 1,946,340 | ||
Interest payable |
| 59,856 |
| 73,585 | ||
Directors deferred compensation | 688,857 | 601,536 | ||||
Deferred tax liabilities |
| 757,791 |
| 905,975 | ||
Other liabilities |
| 841,213 |
| 1,483,105 | ||
| ||||||
Total liabilities |
| 206,972,981 |
| 195,629,584 | ||
| ||||||
Commitments and Contingent Liabilities |
|
| ||||
| ||||||
Stockholders' Equity |
|
|
| |||
Preferred stock - authorized 1,000,000 shares, $0.01 par value, none issued |
|
| ||||
Common stock - authorized 14,000,000 shares, $0.01 par value; issued 2,975,625 at June 30, 2021 and December 31, 2020; outstanding 2,961,634 at June 30, 2021 and 2,975,625 at December 31, 2020 |
|
| 29,756 |
| 29,756 | |
Additional paid-in capital |
| 23,179,224 |
| 23,266,485 | ||
Unearned ESOP shares |
| (1,622,235) |
| (1,673,660) | ||
Retained earnings - substantially restricted |
| 21,576,440 |
| 20,173,404 | ||
Accumulated other comprehensive loss |
|
| (366,228) |
| (292,014) | |
Total stockholders' equity |
| 42,796,957 |
| 41,503,971 | ||
| ||||||
Total liabilities and stockholders' equity | $ | 249,769,938 | $ | 237,133,555 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
1
Cincinnati Bancorp, Inc.
Condensed Consolidated Statements of Income
Three and Six Months Ended June 30, 2021 and 2020 (Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||
(Unaudited) | (Unaudited) | |||||||||||
Interest and Dividend Income |
|
|
|
|
|
|
|
| ||||
Loans, including fees | $ | 1,875,716 | $ | 2,014,550 | $ | 3,756,623 | $ | 4,025,915 | ||||
Securities |
| 20,596 |
| 20,496 |
| 33,076 |
| 47,214 | ||||
Dividends on Federal Home Loan Bank stock and other |
| 14,493 |
| 25,813 |
| 37,484 |
| 111,172 | ||||
Total interest and dividend income |
| 1,910,805 |
| 2,060,859 |
| 3,827,183 |
| 4,184,301 | ||||
| ||||||||||||
Interest Expense |
|
|
|
| ||||||||
Deposits |
| 255,061 |
| 428,742 |
| 547,338 |
| 931,846 | ||||
Federal Home Loan Bank advances |
| 247,850 |
| 239,762 |
| 455,510 |
| 488,144 | ||||
Total interest expense |
| 502,911 |
| 668,504 |
| 1,002,848 |
| 1,419,990 | ||||
| ||||||||||||
Net Interest Income |
| 1,407,894 |
| 1,392,355 |
| 2,824,335 |
| 2,764,311 | ||||
| ||||||||||||
Provision for Loan Losses |
| — |
| — |
| — |
| 65,000 | ||||
| ||||||||||||
Net Interest Income After Provision for Loan Losses |
| 1,407,894 |
| 1,392,355 |
| 2,824,335 |
| 2,699,311 | ||||
| ||||||||||||
Noninterest Income |
|
|
|
| ||||||||
Gain on sales of loans |
| 1,927,553 |
| 2,275,977 |
| 4,784,820 |
| 2,714,331 | ||||
Mortgage servicing fees (costs) |
| 247,650 |
| (115,769) |
| 333,793 |
| (219,283) | ||||
Mortgage derivative income (expense) | (433,875) | — | (129,180) | — | ||||||||
Other |
| 269,292 |
| 248,506 |
| 575,295 |
| 441,249 | ||||
Total noninterest income |
| 2,010,620 |
| 2,408,714 |
| 5,564,728 |
| 2,936,297 | ||||
| ||||||||||||
Noninterest Expense |
|
|
|
| ||||||||
Salaries and employee benefits |
| 2,207,502 |
| 1,937,933 |
| 4,402,563 |
| 3,238,707 | ||||
Occupancy and equipment |
| 182,222 |
| 177,547 |
| 378,586 |
| 328,613 | ||||
Directors compensation |
| 42,250 |
| 44,583 |
| 84,500 |
| 90,333 | ||||
Data processing |
| 180,619 |
| 129,124 |
| 395,527 |
| 250,382 | ||||
Professional fees |
| 91,376 |
| 74,333 |
| 183,178 |
| 146,062 | ||||
Franchise tax |
| 72,510 |
| 55,202 |
| 142,312 |
| 110,860 | ||||
Deposit insurance premiums |
| 15,020 |
| 3,019 |
| 29,859 |
| 3,019 | ||||
Advertising |
| 97,563 |
| 43,595 |
| 134,677 |
| 111,234 | ||||
Software licenses |
| 33,626 |
| 36,569 |
| 60,389 |
| 69,540 | ||||
Loan costs |
| 186,268 |
| 150,552 |
| 399,691 |
| 218,705 | ||||
Other |
| 219,070 |
| 244,025 |
| 414,461 |
| 463,031 | ||||
Total noninterest expense |
| 3,328,026 |
| 2,896,482 |
| 6,625,743 |
| 5,030,486 | ||||
| ||||||||||||
Income Before Income Taxes |
| 90,488 |
| 904,587 |
| 1,763,320 |
| 605,122 | ||||
| ||||||||||||
Provision for Income Taxes |
| 9,964 |
| 180,594 |
| 360,284 |
| 107,179 | ||||
| ||||||||||||
Net Income | $ | 80,524 | $ | 723,993 | $ | 1,403,036 | $ | 497,943 | ||||
| ||||||||||||
Earnings per common share - basic | $ | 0.03 | $ | 0.26 | $ | 0.51 | $ | 0.18 | ||||
Earnings per common share - diluted | $ | 0.03 | $ | 0.26 | $ | 0.49 | $ | 0.18 | ||||
Weighted-average shares outstanding - basic |
| 2,747,331 |
| 2,738,353 |
| 2,750,057 |
| 2,749,782 | ||||
Weighted-average shares outstanding - diluted |
| 2,819,644 |
| 2,775,340 |
| 2,819,131 |
| 2,792,341 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
Cincinnati Bancorp, Inc.
Condensed Consolidated Statements of Comprehensive Income
Three and Six Months Ended June 30, 2021 and 2020 (Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||
(Unaudited) | (Unaudited) | |||||||||||
Net Income | $ | 80,524 | $ | 723,993 | $ | 1,403,036 | $ | 497,943 | ||||
|
|
|
| |||||||||
Other Comprehensive Income (Loss): |
|
|
|
|
|
|
|
| ||||
Net unrealized gains (losses) on available-for-sale securities |
| (42,270) |
| 92,535 |
| (14,748) |
| 33,582 | ||||
Tax (expense) benefit |
| 8,877 |
| (19,432) |
| 3,097 |
| (7,052) | ||||
Changes in directors' retirement plan prior service costs |
| 10,962 |
| (13,568) |
| (41,183) |
| (25,923) | ||||
Tax (expense) benefit |
| (2,302) |
| 2,849 |
| (21,380) |
| 5,444 | ||||
Other comprehensive income (loss) |
| (24,733) |
| 62,384 |
| (74,214) |
| 6,051 | ||||
|
|
|
| |||||||||
Comprehensive Income | $ | 55,791 | $ | 786,377 | $ | 1,328,822 | $ | 503,994 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
Cincinnati Bancorp, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Three and Six Months Ended June 30, 2021 and 2020 (Unaudited)
|
|
|
|
|
|
|
|
| Accumulated |
|
| |||||||
Additional | Unearned | Other | Total | |||||||||||||||
Common | Paid-in | ESOP | Retained | Comprehensive | Stockholders’ | |||||||||||||
Stock | Capital | Shares | Earnings | Loss | Equity | |||||||||||||
For the Three Ended June 30, 2021: | ||||||||||||||||||
| ||||||||||||||||||
Balance, April 1, 2021 | $ | 29,756 | $ | 23,265,450 | $ | (1,647,947) | $ | 21,495,916 | $ | (341,495) | $ | 42,801,680 | ||||||
ESOP shares earned |
| — |
| 12,170 |
| 25,712 |
| — |
| — |
| 37,882 | ||||||
|
|
|
|
|
| |||||||||||||
Stock based compensation expense |
| — |
| 55,915 |
| — |
| — |
| — |
| 55,915 | ||||||
| ||||||||||||||||||
Net income |
| — |
| — |
| — |
| 80,524 |
| — |
| 80,524 | ||||||
|
|
|
|
|
| |||||||||||||
Repurchase of common stock |
| — |
| (154,311) |
| — |
| — |
| — |
| (154,311) | ||||||
|
|
|
|
|
| |||||||||||||
Other comprehensive loss |
| — |
| — |
| — |
| — |
| (24,733) |
| (24,733) | ||||||
|
|
|
|
| ||||||||||||||
Balance, June 30, 2021 | $ | 29,756 | $ | 23,179,224 | $ | (1,622,235) | $ | 21,576,440 | $ | (366,228) | $ | 42,796,957 |
|
|
|
| Accumulated |
| |||||||||||||
Additional | Unearned | Other | Total | |||||||||||||||
Common | Paid-in | ESOP | Retained | Comprehensive | Stockholders' | |||||||||||||
| Stock |
| Capital |
| Shares |
| Earnings |
| Loss |
| Equity | |||||||
For the Three Ended June 30, 2020: | ||||||||||||||||||
Balance, April 1, 2020 | $ | 29,756 | $ | 23,187,302 | $ | (1,750,797) | $ | 16,791,633 | $ | (347,322) | $ | 37,910,572 | ||||||
ESOP shares earned |
| — |
| (3,745) |
| 25,712 |
| — |
| — |
| 21,967 | ||||||
Stock based compensation expense |
| — |
| 25,790 |
| — |
| — |
| — |
| 25,790 | ||||||
Net income |
| — |
| — |
| — |
| 723,993 |
| — |
| 723,993 | ||||||
Other comprehensive income |
| — |
| — |
| — |
| — |
| 62,384 |
| 62,384 | ||||||
Balance, June 30, 2020 | $ | 29,756 | $ | 23,209,347 | $ | (1,725,085) | $ | 17,515,626 | $ | (284,938) | $ | 38,744,706 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
Cincinnati Bancorp, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Three and Six Months Ended June 30, 2021 and 2020 (Unaudited)
Accumulated | ||||||||||||||||||
Additional | Unearned | Other | Total | |||||||||||||||
Common | Paid-in | ESOP | Retained | Comprehensive | Stockholders' | |||||||||||||
| Stock |
| Capital |
| Shares |
| Earnings |
| Loss |
| Equity | |||||||
For the Six Months Ended June 30, 2021: | ||||||||||||||||||
Balance, January 1, 2021 | $ | 29,756 | $ | 23,266,485 | $ | (1,673,660) | $ | 20,173,404 | $ | (292,014) | $ | 41,503,971 | ||||||
ESOP shares earned |
| — |
| 18,162 |
| 51,425 |
| — |
| — |
| 69,587 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Stock-based compensation expense |
| — |
| 84,449 |
| — |
| — |
| — |
| 84,449 | ||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net income |
| — |
| — |
| — |
| 1,403,036 |
| — |
| 1,403,036 | ||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
Repurchase of common stock | — | (189,872) | — | — | — | (189,872) | ||||||||||||
Other comprehensive loss |
| — |
| — |
| — |
| — |
| (74,214) |
| (74,214) | ||||||
Balance, June 30, 2021 | $ | 29,756 | $ | 23,179,224 | $ | (1,622,235) | $ | 21,576,440 | $ | (366,228) | $ | 42,796,957 |
| | | | Additional | | Unearned | | | | | Other | | Total | |||||
| Common | | Paid-in | | ESOP | | Retained | | Comprehensive | | Stockholders' | |||||||
|
| Stock |
| Capital |
| Shares |
| Earnings |
| Loss |
| Equity | ||||||
For the Six Months Ended June 30, 2020: | | | | | | | ||||||||||||
| | | | | | |||||||||||||
Balance, January 1, 2020 | $ | 29,607 | $ | 7,529,850 | $ | (449,313) | $ | 17,017,683 | $ | (290,989) | $ | 23,836,838 | ||||||
Proceeds from issuance of 1,652,960 shares of common stock (which included 132,237 shares to the ESOP), net of the offering costs of $1.2 million | 29,756 | 15,577,194 | (1,322,370) | — | — | 14,284,580 | ||||||||||||
Contribution by CF Mutual Holding Company | 50,000 | — | — | — | 50,000 | |||||||||||||
Exchange of common stock |
| (29,607) |
| — |
| — |
| — |
| — |
| (29,607) | ||||||
|
|
|
|
|
|
|
| |||||||||||
ESOP shares earned |
| — |
| 721 |
| 46,598 |
| — |
| — |
| 47,319 | ||||||
|
|
|
|
|
|
|
|
|
| |||||||||
Stock-based compensation expense |
| — |
| 51,582 |
| — |
| — |
| — |
| 51,582 | ||||||
|
|
|
|
|
|
| ||||||||||||
Net income |
| — |
| — |
| — |
| 497,943 |
| — |
| 497,943 | ||||||
|
|
|
|
|
|
|
|
|
| |||||||||
Other comprehensive income |
| — |
| — |
| — |
| — |
| 6,051 |
| 6,051 | ||||||
| | | | | | | | | ||||||||||
Balance, June 30, 2020 | $ | 29,756 | $ | 23,209,347 | $ | (1,725,085) | $ | 17,515,626 | $ | (284,938) | $ | 38,744,706 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
Cincinnati Bancorp, Inc.
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2021 and 2020 (Unaudited)
Six Months Ended June 30, | ||||||
| 2021 |
| 2020 | |||
Operating Activities |
|
| ||||
Net income | $ | 1,403,036 | $ | 497,943 | ||
Items not requiring (providing) cash: | ||||||
Depreciation and amortization |
| 114,087 |
| 110,327 | ||
Provision for loan losses |
| — |
| 65,000 | ||
Amortization of premiums and discounts on securities, net |
| 5,836 |
| 11,637 | ||
Amortization of deferred prepayment penalty on Federal Home Loan Bank advances | — | 2,315 | ||||
Change in deferred income taxes |
| 148,184 |
| 284,693 | ||
Gain on sale of loans |
| (4,784,820) |
| (2,714,331) | ||
Proceeds from the sale of loans held for sale |
| 158,036,785 |
| 121,567,144 | ||
Origination of loans held for sale |
| (152,728,895) |
| (135,391,885) | ||
Mortgage servicing rights | (690,978) | (43,027) | ||||
Earnings on cash surrender value of bank-owned life insurance |
| (41,499) |
| (42,497) | ||
Stock-based compensation expense |
| 84,449 |
| 51,582 | ||
ESOP shares earned |
| 69,587 |
| 47,319 | ||
Changes in: |
|
| ||||
Interest receivable |
| (46,021) |
| 61,716 | ||
Federal Home Loan Bank lender risk account receivable |
| 20,147 |
| 13,047 | ||
Derivative assets | 201,121 | — | ||||
Other assets |
| (128,999) |
| (76,364) | ||
Interest payable |
| (13,729) |
| (14,813) | ||
Derivative liabilities | (71,941) | — | ||||
Other liabilities |
| (838,464) |
| (44,599) | ||
Net cash provided by (used in) operating activities |
| 737,886 |
| (15,614,793) | ||
| ||||||
Investing Activities |
|
| ||||
Net change in interest-bearing deposits | 1,500,000 | (1,500,000) | ||||
Proceeds from maturities of available-for-sale securities |
| 1,056,845 |
| 751,761 | ||
Purchase of available for sale securities | (5,034,375) | — | ||||
Purchase of Federal Home Loan Bank stock |
| (964,300) |
| (144,400) | ||
Net change in loans |
| (25,675,447) |
| 17,273,543 | ||
Purchase of premises and equipment |
| (100,930) |
| (294,393) | ||
Net cash provided by (used in) investing activities |
| (29,218,207) |
| 16,086,511 | ||
Financing Activities | ||||||
Net increase (decrease) in deposits | 5,087,438 | (17,567,513) | ||||
Repurchase of common stock | (189,872) | — | ||||
Proceeds from issuance of common stock | — | 14,060,646 | ||||
Proceeds from Federal Home Loan Bank advances | 17,500,000 | 14,000,000 | ||||
Repayment of Federal Home Loan Bank advances | (9,600,000) | (19,400,000) | ||||
Net decrease in advances from borrowers for taxes and insurance | (927,557) | 997 | ||||
Net cash provided by (used in) financing activities | 11,870,009 | (8,905,870) | ||||
Decrease in Cash and Cash Equivalents | (16,610,312) | (8,434,152) | ||||
Cash and Cash Equivalents, Beginning of Period | 32,347,806 | 37,735,266 | ||||
Cash and Cash Equivalents, End of Period | $ | 15,737,494 | $ | 29,301,114 | ||
Supplemental Cash Flows Information | ||||||
Interest paid | $ | 1,016,577 | $ | 1,434,803 | ||
Income taxes paid | 455,000 | — |
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
NOTE 1: Nature of Operations and Summary of Significant Account Policies
Nature of Operations
Cincinnati Bancorp (“Bancorp”), the predecessor to Cincinnati Bancorp, Inc. (“Company”), was the mid-tier holding company for Cincinnati Federal (the “Bank”), a federally chartered stock savings and loan association that is primarily engaged in providing a full range of banking and financial services to individual and corporate customers. Our business operations are conducted in the larger Greater Cincinnati/Northern Kentucky metropolitan area which includes Hamilton, Warren, Butler and Clermont Counties in Ohio, Boone, Kenton and Campbell Counties in Kentucky, and Dearborn County, Indiana.
On October 14, 2015, the Bank had reorganized into the mutual holding company structure. As part of the reorganization, the Bancorp sold 773,663 shares of common stock at a price of $10.00 per share in a public offering and issued 945,587 shares of common stock to CF Mutual Holding Company, the Bancorp’s parent mutual holding company.
On December 20, 2019, the Bancorp’s shareholders approved a plan of conversion and reorganization, whereby CF Mutual Holding Company and Cincinnati Bancorp would convert and reorganize from the mutual holding company structure to the stock holding company structure. The conversion and reorganization were completed effective January 22, 2020, whereby the Company, a Maryland corporation and successor to the Bancorp, sold a total of 1,652,960 shares of common stock at a price of $10.00 per share in the subscription offering, which included 132,237 shares sold to Cincinnati Federal’s Employee Stock Ownership Plan, and issued 1,322,665 shares of common stock in exchange for the outstanding shares of common stock of the Bancorp owned by stockholders other than CF Mutual Holding Company. The exchange ratio for previously held shares of Cincinnati Bancorp was 1.6351 as applied in the conversion offering. References herein to the “Company” include Cincinnati Bancorp, Inc. and Cincinnati Bancorp before completion of the conversion.
The Company is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.
Revenue Recognition
The Company accounts for revenues in accordance with accounting guidance that provides that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Interest income, net securities gains (losses), gains from the sale of mortgage loans and earnings on bank-owned life insurance are not covered under ASC 606 and are recognized as contractually earned. For other revenue streams including service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All of the Company’s revenue from contracts with customers is recognized within other noninterest income.
Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering and other fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs.
Service charges on deposits are withdrawn from the customer’s account balance. Service charges are recorded in other noninterest income.
Interchange income: The Company earns interchange income from cardholder transactions conducted through the various payment networks. Interchange income from cardholder transactions represent a percentage of the underlying transaction value and is recognized daily, concurrently with the transaction processing services provided to the cardholder. The gross amount of these fees is processed through noninterest income. Interchange fees are recorded in other noninterest income.
7
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
Principles of Consolidation
The accompanying condensed consolidated financial statements as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020 include the accounts of the Company and the Bank. All significant intercompany items have been eliminated in consolidation.
Interim Financial Statements
The interim condensed consolidated financial statements as of June 30, 2021, and for the three and six months ended June 30, 2021 and 2020, are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments contained in these unaudited consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been omitted. The results of operations for the three and six months ended June 30, 2021, are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2021, or any other period.
The accompanying condensed consolidated financial statements as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020, should be read in conjunction with the audited consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020 and 2019 contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights, lender reserve account and fair values of financial instruments.
Revisions
Certain immaterial revisions have been made to the 2020 condensed consolidated financial statements for a change in earnings per share and diluted earnings per share more fully discussed in Note 4. These revisions did not have a significant impact on the financial line items impacted.
NOTE 2: Securities
Available-for-sale debt securities are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.
For debt securities with fair value below amortized cost, when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income.
8
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:
|
| Gross |
| Gross |
| |||||||
Amortized | Unrealized | Unrealized | ||||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Available-for-Sale Debt Securities: | ||||||||||||
| ||||||||||||
June 30, 2021 (unaudited): |
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|
|
|
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|
| ||||
Mortgage-backed securities of government sponsored entities | $ | 9,142,213 | $ | 55,718 | $ | (27,155) | $ | 9,170,776 | ||||
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December 31, 2020: |
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|
|
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|
|
|
| ||||
Mortgage-backed securities of government sponsored entities | $ | 5,170,519 | $ | 46,278 | $ | (2,967) | $ | 5,213,830 |
The Company had no sales of investment securities during the three and six month periods ended June 30, 2021 or 2020. The Company had not pledged any of its investment securities as of June 30, 2021 or December 31, 2020.
The amortized cost and fair value of available-for-sale securities at June 30, 2021 and December 31, 2020, by contractual maturity is not disclosed for mortgage-backed securities, as expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
Certain investments in debt securities have fair values at an amount less than their historical cost. The total fair value of these investments at June 30, 2021 and December 31, 2020 was $4,872,946 and $192,587, respectively, which was approximately 53.1% and 3.7%, respectively, of the Company’s investment portfolio at those respective dates.
The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that the individual securities have been in continuous unrealized loss position at June 30, 2021 and December 31, 2020:
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
|
| Unrealized |
|
| Unrealized |
|
| Unrealized | ||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||
June 30, 2021 (unaudited): |
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|
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| ||||||
Mortgage-backed securities of government sponsored entities | $ | 4,824,200 | $ | (26,646) | $ | 48,746 | $ | (509) | $ | 4,872,946 | $ | (27,155) | ||||||
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December 31, 2020: |
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| ||||||
Mortgage-backed securities of government sponsored entities | $ | 51,122 | $ | (617) | $ | 141,465 | $ | (2,350) | $ | 192,587 | $ | (2,967) |
9
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
NOTE 3: Loans and Allowance for Loan Losses
Categories of loans at June 30, 2021 and December 31, 2020 include:
| June 30, |
| December 31, | |||
2021 | 2020 | |||||
(unaudited) | ||||||
One to four family mortgage loans - owner occupied | $ | 77,823,417 | $ | 72,697,588 | ||
One to four family - investment |
| 10,788,072 |
| 12,058,824 | ||
Multi-family mortgage loans |
| 52,010,529 |
| 41,749,223 | ||
Nonresidential mortgage loans |
| 37,425,392 |
| 29,531,917 | ||
Construction and land loans |
| 15,711,968 |
| 5,841,415 | ||
Real estate secured lines of credit |
| 10,189,144 |
| 9,934,387 | ||
Commercial loans |
| 404,961 |
| 736,979 | ||
Other consumer loans |
| 361,919 |
| 338,709 | ||
Total loans |
| 204,715,402 |
| 172,889,042 | ||
| ||||||
Less: |
|
| ||||
Net deferred loan costs |
| (390,098) |
| (332,908) | ||
Undisbursed portion of loans |
| 11,089,590 |
| 4,881,487 | ||
Allowance for loan losses |
| 1,672,545 |
| 1,672,545 | ||
| ||||||
Net loans | $ | 192,343,365 | $ | 166,667,918 |
10
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
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 and six months ended June 30, 2021 and 2020 and the year ended December 31, 2020:
At or For the Six Months Ended June 30, 2021 (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 | $ | 416,404 | $ | 99,978 | $ | 670,822 | $ | 316,332 | $ | 96,435 | $ | 49,336 | $ | 17,111 | $ | 6,127 | $ | 1,672,545 | |||||||||
Provision (credit) charged to expense | (55,596) | (37,314) | 1,511 | (134) | 134,230 | (20,228) | (16,705) | (5,764) | — | ||||||||||||||||||
Losses charged off |
| — |
| — | — |
| — |
| — |
| — |
| — |
| — |
| — | ||||||||||
Recoveries |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Balance, end of period | $ | 360,808 | $ | 62,664 | $ | 672,333 | $ | 316,198 | $ | 230,665 | $ | 29,108 | $ | 406 | $ | 363 | $ | 1,672,545 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 61,431 | $ | 54,071 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 115,502 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 299,377 | $ | 8,593 | $ | 672,333 | $ | 316,198 | $ | 230,665 | $ | 29,108 | $ | 406 | $ | 363 | $ | 1,557,043 | |||||||||
Loans: |
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|
|
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| ||||||||||||||||||
Ending balance | $ | 77,823,417 | $ | 10,788,072 | $ | 52,010,529 | $ | 37,425,392 | $ | 15,711,968 | $ | 10,189,144 | $ | 404,961 | $ | 361,919 | $ | 204,715,402 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 1,307,857 | $ | 444,164 | $ | 128,886 | $ | — | $ | — | $ | 56,671 | $ | — | $ | — | $ | 1,937,578 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 76,515,560 | $ | 10,343,908 | $ | 51,881,643 | $ | 37,425,392 | $ | 15,711,968 | $ | 10,132,473 | $ | 404,961 | $ | 361,919 | $ | 202,777,824 |
At or For Three Months Ended June 30, 2021 (Unaudited) | |||||||||||||||||||||||||||
| One- to Four- |
| One- to Four- |
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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: |
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| |||||||||||||
Balance, beginning of period | $ | 362,568 | $ | 121,520 | $ | 680,132 | $ | 293,812 | $ | 160,203 | $ | 36,936 | $ | 11,677 | $ | 5,697 | $ | 1,672,545 | |||||||||
Provision (credit) charged to expense | (1,760) | (58,856) | (7,799) | 22,386 | 70,462 | (7,828) | (11,271) | (5,334) | — | ||||||||||||||||||
Losses charged off |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Recoveries |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Balance, end of period | $ | 360,808 | $ | 62,664 | $ | 672,333 | $ | 316,198 | $ | 230,665 | $ | 29,108 | $ | 406 | $ | 363 | $ | 1,672,545 |
At or For the Six Months Ended June 30, 2020 (Unaudited) | |||||||||||||||||||||||||||
One- to Four- | One- to Four- | Multi-Family | Nonresidential | Construction | Real Estate | Commercial | Other | Total | |||||||||||||||||||
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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 |
| 124,866 |
| 15,522 |
| (176,066) |
| 120,196 |
| 6,137 |
| (39,465) |
| 20,812 |
| (7,002) |
| 65,000 | |||||||||
Losses charged off |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Recoveries |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Balance, end of period | $ | 449,513 | $ | 97,741 | $ | 348,117 | $ | 397,222 | $ | 75,594 | $ | 65,722 | $ | 32,220 | $ | 6,416 | $ | 1,472,545 |
At or For Three Months Ended June 30, 2020 (Unaudited) | |||||||||||||||||||||||||||
One- to Four- | One- to Four- | Multi-Family | Nonresidential | Construction | Real Estate | Commercial | Other | Total | |||||||||||||||||||
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Allowance for loan losses: |
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Balance, beginning of period | $ | 218,676 | $ | 154,898 | $ | 480,541 | $ | 416,193 | $ | 81,451 | $ | 99,062 | $ | 16,401 | $ | 5,323 | $ | 1,472,545 | |||||||||
Provision (credit) charged to expense |
| 230,837 |
| (57,157) |
| (132,424) |
| (18,971) |
| (5,857) |
| (33,340) |
| 15,819 |
| 1,093 |
| — | |||||||||
Losses charged off |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Recoveries |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Balance, end of period | $ | 449,513 | $ | 97,741 | $ | 348,117 | $ | 397,222 | $ | 75,594 | $ | 65,722 | $ | 32,220 | $ | 6,416 | $ | 1,472,545 |
11
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
At or For the Year Ended December 31, 2020 | |||||||||||||||||||||||||||
| One- to Four- |
| One- to Four- |
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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 loans: |
|
| |||||||||||||||||||||||||
Balance, beginning of year | $ | 324,647 | $ | 82,219 | $ | 524,183 | $ | 277,026 | $ | 69,457 | $ | 105,187 | $ | 11,408 | $ | 13,418 | $ | 1,407,545 | |||||||||
Provision (credit) charged to expense | 91,757 | 17,759 | 146,639 | 39,306 | 26,978 | (55,851) | 5,703 | (7,291) | 265,000 | ||||||||||||||||||
(Charge-offs) recoveries |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||
Balance, end of year | $ | 416,404 | $ | 99,978 | $ | 670,822 | $ | 316,332 | $ | 96,435 | $ | 49,336 | $ | 17,111 | $ | 6,127 | $ | 1,672,545 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 20,722 | $ | 40,075 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 60,797 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 395,682 | $ | 59,903 | $ | 670,822 | $ | 316,332 | $ | 96,435 | $ | 49,336 | $ | 17,111 | $ | 6,127 | $ | 1,611,748 | |||||||||
Loans: |
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Ending balance | $ | 72,697,588 | $ | 12,058,824 | $ | 41,749,223 | $ | 29,531,917 | $ | 5,841,415 | $ | 9,934,387 | $ | 736,979 | $ | 338,709 | $ | 172,889,042 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 1,236,597 | $ | 561,660 | $ | 210,524 | $ | — | $ | — | $ | 58,557 | $ | — | $ | — | $ | 2,067,338 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 71,460,991 | $ | 11,497,164 | $ | 41,538,699 | $ | 29,531,917 | $ | 5,841,415 | $ | 9,875,830 | $ | 736,979 | $ | 338,709 | $ | 170,821,704 |
The Company has adopted a standard grading system for all loans.
Definitions are as follows:
Prime (1) loans are of superior quality with excellent credit strength and repayment ability proving a nominal credit risk.
Good (2) loans are of above average credit strength and repayment ability proving only a minimal credit risk.
Satisfactory (3) loans are of reasonable credit strength and repayment ability proving an average credit risk due to one or more underlying weaknesses.
Acceptable (4) loans are of the lowest acceptable credit strength and weakened repayment ability providing a cautionary credit risk due to one or more underlying weaknesses. New borrowers are typically not underwritten within this classification.
Special Mention (5) loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Ordinarily, special mention credits have characteristics which corrective management action would remedy.
Substandard (6) loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful (7) loans have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current known facts, conditions and values, highly questionable and improbable.
Loss (8) loans are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off even though partial recovery may be realized in the future.
12
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of June 30, 2021 and December 31, 2020:
June 30, 2021 (unaudited) | |||||||||||||||||||||||||||
| One- to Four- |
| One- to Four- |
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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 | $ | 77,091,650 | $ | 10,478,842 | $ | 52,010,529 | $ | 36,977,920 | $ | 15,711,968 | $ | 10,063,226 | $ | 404,961 | $ | 361,919 | $ | 203,101,015 | |||||||||
Special mention | — | 309,230 | — | 447,472 | — | — | — | — | 756,702 | ||||||||||||||||||
Substandard | 731,767 | — | — | — | — | 125,918 | — | — | 857,685 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 77,823,417 | $ | 10,788,072 | $ | 52,010,529 | $ | 37,425,392 | $ | 15,711,968 | $ | 10,189,144 | $ | 404,961 | $ | 361,919 | $ | 204,715,402 |
December 31, 2020 | |||||||||||||||||||||||||||
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 | $ | 71,930,902 | $ | 11,538,993 | $ | 41,669,892 | $ | 29,063,783 | $ | 5,841,415 | $ | 9,783,448 | $ | 736,979 | $ | 338,709 | $ | 170,904,121 | |||||||||
Special mention | 113,516 | 519,831 | — | 468,134 | — | — | — | — | 1,101,481 | ||||||||||||||||||
Substandard | 653,170 | — | 79,331 | — | — | 150,939 | — | — | 883,440 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 72,697,588 | $ | 12,058,824 | $ | 41,749,223 | $ | 29,531,917 | $ | 5,841,415 | $ | 9,934,387 | $ | 736,979 | $ | 338,709 | $ | 172,889,042 |
Pass portfolio within the tables above consists of loans graded Prime (1) through Acceptable (4).
The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the three or six months ended June 30, 2021.
13
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
The following tables present the loan portfolio aging analysis of the recorded investment in loans as of June 30, 2021 and December 31, 2020:
June 30, 2021 (unaudited) | |||||||||||||||||||||
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| 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 | $ | 243,145 | $ | — | $ | 258,904 | $ | 502,049 | $ | 77,321,368 | $ | 77,823,417 | $ | — | |||||||
One to four family - investment |
| — |
| — |
| — |
| — |
| 10,788,072 |
| 10,788,072 |
| — | |||||||
Multi-family mortgage loans |
| — |
| — |
| — |
| — |
| 52,010,529 |
| 52,010,529 |
| — | |||||||
Nonresidential mortgage loans |
| — |
| — |
| — |
| — |
| 37,425,392 |
| 37,425,392 |
| — | |||||||
Construction & land loans |
| — |
| — |
| — |
| — |
| 15,711,968 |
| 15,711,968 |
| — | |||||||
Real estate secured lines of credit |
| — |
| — |
| — |
| — |
| 10,189,144 |
| 10,189,144 |
| — | |||||||
Commercial loans |
| — |
| — |
| — |
| — |
| 404,961 |
| 404,961 |
| — | |||||||
Other consumer loans |
| — |
| — |
| — |
| — |
| 361,919 |
| 361,919 |
| — | |||||||
Total | $ | 243,145 | $ | — | $ | 258,904 | $ | 502,049 | $ | 204,213,353 | $ | 204,715,402 | $ | — |
December 31, 2020 | |||||||||||||||||||||
|
|
| 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 | $ | 96,826 | $ | 127,616 | $ | 173,877 | $ | 398,319 | $ | 72,299,269 | $ | 72,697,588 | $ | — | |||||||
One to four family - investment |
| — |
| — |
| — |
| — |
| 12,058,824 |
| 12,058,824 |
| — | |||||||
Multi-family mortgage loans |
| — |
| — |
| — |
| — |
| 41,749,223 |
| 41,749,223 |
| — | |||||||
Nonresidential mortgage loans |
| — |
| — |
| — |
| — |
| 29,531,917 |
| 29,531,917 |
| — | |||||||
Construction & land loans |
| — |
| — |
| — |
| — |
| 5,841,415 |
| 5,841,415 |
| — | |||||||
Real estate secured lines of credit |
| — |
| — |
| — |
| — |
| 9,934,387 |
| 9,934,387 |
| — | |||||||
Commercial loans |
| — |
| — |
| — |
| — |
| 736,979 |
| 736,979 |
| — | |||||||
Other consumer loans |
| — |
| — |
| — |
| — |
| 338,709 |
| 338,709 |
| — | |||||||
Total | $ | 96,826 | $ | 127,616 | $ | 173,877 | $ | 398,319 | $ | 172,490,723 | $ | 172,889,042 | $ | — |
A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310, Receivables), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans and loans modified in troubled debt restructurings (“TDRs”).
14
Cincinnati Bancorp, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)