10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2016

OR

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

For the transition period from ____________ to _______________

Commission File No. 0-23433

WAYNE SAVINGS BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Delaware	31-1557791
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)
151 North Market Street
Wooster, Ohio	44691
(Address of principal	(Zip Code)
executive office)

Registrant’s telephone number, including area code: (330) 264-5767

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  x     No  o

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 (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes o 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 definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o    Accelerated filer o    Non-accelerated filer  o  Smaller reporting company  x

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

Yes o                No  x

As of July 29, 2016, the latest practicable date, 2,781,839 shares of the registrant’s common stock, $.10 par value, were issued and outstanding.

Wayne Savings Bancshares, Inc.

Index

		Page
PART I -	FINANCIAL INFORMATION
Item 1	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Income and Comprehensive Income (Loss)	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4	Controls and Procedures	50
PART II -	OTHER INFORMATION
Item 1	Legal Proceedings	51
Item 1A	Risk Factors	51
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3	Defaults Upon Senior Securities	51
Item 4	Mine Safety Disclosures	51
Item 5	Other Information	52
Item 6	Exhibits	52
SIGNATURES		53

Wayne Savings Bancshares, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share data)

	June 30, 2016			December 31, 2015
	(Unaudited)
Assets
Cash and due from banks	$	8,425		$	3,487
Interest-bearing deposits		3,642			7,669
Cash and cash equivalents		12,067			11,156
Available-for-sale securities		86,605			95,347
Held-to-maturity securities		9,159			8,307
Loans, net of allowance for loan losses of $2,776 and $2,837           at June 30, 2016 and December 31, 2015, respectively		315,144			293,121
Premises and equipment		6,659			6,663
Federal Home Loan Bank stock		4,226			4,226
Foreclosed assets held for sale, net		19			14
Accrued interest receivable		1,166			1,149
Bank-owned life insurance		9,689			9,554
Goodwill		1,719			1,719
Other assets		2,612			1,893
Prepaid federal income taxes		140			483
Total assets	$	449,205		$	433,632
Liabilities and Stockholders’ Equity
Liabilities
Deposits
Demand	$	102,003		$	101,532
Savings and money market		139,639			132,089
Time		135,293			128,806
Total deposits		376,935			362,427
Other short-term borrowings		6,157			5,606
Federal Home Loan Bank advances		21,000			21,000
Interest payable and other liabilities		3,262			4,258
Deferred federal income taxes		593			436
Total liabilities		407,947			393,727
Commitments and Contingencies		—			—
Stockholders’ Equity
Preferred stock, 500,000 shares of $.10 par value authorized;           no shares issued		—			—
Common stock, $.10 par value; authorized 9,000,000 shares;           3,978,731 shares issued	$	398		$	398
Additional paid-in capital		36,026			36,017
Retained earnings		21,947			21,060
Shares acquired by ESOP		(308	)		(343	)
Accumulated other comprehensive income (loss)		131			(291	)
Treasury stock, at cost: Common: 1,196,892 shares at June 30, 2016             and December 31, 2015		(16,936	)		(16,936	)
Total stockholders’ equity		41,258			39,905
Total liabilities and stockholders’ equity	$	449,205		$	433,632

See accompanying notes to condensed consolidated financial statements.

2 

Wayne Savings Bancshares, Inc.

Condensed Consolidated Statements of Income and Comprehensive Income (Loss)

For the three and six months ended June 30, 2016 and 2015

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Interest and Dividend Income
Loans	$	3,209		$	2,855		$	6,378		$	5,665
Securities		568			688			1,196			1,392
Dividends on Federal Home Loan Bank           stock and other		49			45			93			89
Total interest and dividend income		3,826			3,588			7,667			7,146
Interest Expense
Deposits		447			402			868			794
Other short-term borrowings		2			3			4			5
Federal Home Loan Bank advances		69			98			139			190
Total interest expense		518			503			1,011			989
Net Interest Income		3,308			3,085			6,656			6,157
Provision (Credit) for Loan Losses		11			481			(56	)		714
Net Interest Income After Provision      (Credit) for Loan Losses		3,297			2,604			6,712			5,443
Noninterest Income
Gain on loan sales		73			15			121			62
Earnings on bank-owned life insurance		75			73			148			145
Service fees, charges and other operating		407			355			738			667
Total noninterest income		555			443			1,007			874
Noninterest Expense
Salaries and employee benefits		1,762			1,584			3,448			3,159
Net occupancy and equipment expense		509			491			1,036			978
Federal deposit insurance premiums		69			68			140			128
Franchise taxes		89			67			177			133
Other		521			572			1,057			1,087
Total noninterest expense		2,950			2,782			5,858			5,485
Income Before Federal Income Taxes		902			265			1,861			832
Provision for Federal Income Taxes		228			22			480			149
Net Income	$	674		$	243		$	1,381		$	683
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale      securities		159			(932	)		640			(709	)
Tax (expense) benefit		(53	)		317			(218	)		241
Other comprehensive income (loss)		106			(615	)		422			(468	)
Total comprehensive income (loss)	$	780		$	(372	)	$	1,803		$	215
Basic and Diluted Earnings Per Share	$	0.24		$	0.09		$	0.50		$	0.25
Dividends Per Share	$	0.09		$	0.09		$	0.18		$	0.18

See accompanying notes to condensed consolidated financial statements.

3 

Wayne Savings Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2016 and 2015

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2016			2015
Operating Activities
Net income	$	1,381		$	683
Items not requiring (providing) cash
Depreciation and amortization		322			288
Provision (Credit) for loan losses		(56	)		714
Amortization of premiums and discounts on securities		590			673
Amortization of mortgage servicing rights		17			22
Amortization of deferred loan origination fees		(56	)		(45	)
Increase in value of bank-owned life insurance		(135	)		(134	)
Amortization expense of stock benefit plan		45			49
Provision for impairment on foreclosed assets held for sale		16			9
Loss on sale of foreclosed assets held for sale		5			77
Loss on sale of premises and equipment		—			2
Net gain on sale of loans		(121	)		(62	)
Proceeds from sale of loans in the secondary market		3,091			1,964
Origination of loans for sale in the secondary market		(2,970	)		(1,902	)
Deferred income taxes		(60	)		18
Changes in
Accrued interest receivable		(17	)		(5	)
Other assets		(393	)		(708	)
Interest payable and other liabilities		(162	)		(293	)
Net cash provided by operating activities		1,497			1,350
Investing Activities
Purchase of available-for-sale securities		(3,475	)		(11,391	)
Purchase of  held-to-maturity securities		(895	)		(1,637	)
Proceeds from maturities and paydowns of available-for-sale securities		12,281			12,616
Proceeds from maturities and paydowns of held-to-maturity securities		27			40
Net change in loans		(22,017	)		(7,911	)
Purchase of premises and equipment		(318	)		(313	)
Proceeds from the sale of foreclosed assets		80			102
Net cash used in investing activities	$	(14,317	)	$	(8,494	)

See accompanying notes to condensed consolidated financial statements.

4 

Wayne Savings Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (continued)

For the six months ended June 30, 2016 and 2015

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2016			2015
Financing Activities
Net change in deposits	$	14,508		$	4,367
Net change in other short-term borrowings		551			(230	)
Proceeds from Federal Home Loan Bank advances		13,375			7,341
Repayments of Federal Home Loan Bank advances		(13,375	)		(5,800	)
Advances by borrowers for taxes and insurance		(834	)		(941	)
Dividends on common stock		(494	)		(498	)
Treasury stock purchases		—			(338	)
Net cash provided in financing activities		13,731			3,901
Change in Cash and Cash Equivalents		911			(3,243	)
Cash and Cash Equivalents, Beginning of period		11,156			10,783
Cash and Cash Equivalents, End of period	$	12,067		$	7,540
Supplemental Cash Flows Information
Interest paid on deposits and borrowings	$	1,005		$	990
Federal income taxes paid	$	150		$	100
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Transfers from loans to foreclosed assets held for sale	$	106		$	308
Recognition of mortgage servicing rights	$	45		$	29
Dividends payable	$	250		$	250

See accompanying notes to condensed consolidated financial statements.

5 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Note 1:  Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Wayne Savings Bancshares, Inc. (the “Company”) included in the Annual Report on Form 10-K for the year ended December 31, 2015 Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included. The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results which may be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2015, has been derived from the consolidated balance sheet of the Company as of that date.

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

6 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Note 2:  Principles of Consolidation

The accompanying condensed consolidated financial statements include Wayne Savings Bancshares, Inc. and the Company’s wholly-owned subsidiary, Wayne Savings Community Bank (“Wayne Savings” or the “Bank”).

Wayne Savings has eleven full-service offices in Wayne, Holmes, Ashland, Medina and Stark counties. All significant intercompany transactions and balances have been eliminated in the consolidation.

Note 3:  Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Available-for-sale securities
June 30, 2016:
U.S. government agencies	$	96	$	—	$	—	$	96
Mortgage-backed securities of           government sponsored entities		69,041		893		174		69,760
Private-label collateralized mortgage           obligations		172		1		—		173
State and political subdivisions		15,880		723		27		16,576
Totals	$	85,189	$	1,617	$	201	$	86,605

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities	(In thousands)
December 31, 2015:
U.S. government agencies	$	101	$	—	$	—	$	101
Mortgage-backed securities of           government sponsored entities		75,972		662		530		76,104
Private-label collateralized mortgage           obligations		274		3		—		277
State and political subdivisions		18,224		677		36		18,865
Totals	$	94,571	$	1,342	$	566	$	95,347

7 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Held-to-maturity Securities:
June 30, 2016:
U.S. government agencies	$	78	$	—	$	—	$	78
Mortgage-backed securities of           government sponsored entities		1,028		20		—		1,048
State and political subdivisions		8,053		217		39		8,231
Totals	$	9,159	$	237	$	39	$	9,357

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity Securities:	(In thousands)
December 31, 2015:
U.S. government agencies	$	82	$	—	$	—	$	82
Mortgage-backed securities of           government sponsored entities		1,052		5		—		1,057
State and political subdivisions		7,173		29		136		7,066
Totals	$	8,307	$	34	$	136	$	8,205

8 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Amortized cost and fair value of available-for-sale securities and held-to-maturity securities at June 30, 2016 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
One to five years	$	6,133	$	6,420	$	1,408	$	1,432
Five to ten years		3,423		3,600		3,344		3,436
After ten years		6,420		6,652		3,379		3,441
		15,976		16,672		8,131		8,309
Mortgage-backed securities of      government sponsored entities		69,041		69,760		1,028		1,048
Private-label collateralized mortgage      obligations		172		173		—		—
Totals	$	85,189	$	86,605	$	9,159	$	9,357

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $53.3 million at June 30, 2016, compared to $55.3 million at December 31, 2015.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2016 and December 31, 2015, was $21.0 million and $53.8 million, which represented approximately 22% and 52%, respectively, of the Company’s total aggregate fair value of the available-for-sale and held-to-maturity investment portfolios. These decreases resulted primarily from changes in market interest rates.

Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the decreases in fair value for these securities are temporary at June 30, 2016.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The following table shows the gross unrealized losses and fair value of the Company’s temporarily impaired investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

9 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

	June 30, 2016
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Mortgage-backed securities of      government sponsored entities	$	9,063	$	80	$	11,023	$	94	$	20,086	$	174
State and political subdivisions		—		—		959		66		959		66
Total temporarily impaired securities	$	9,063	$	80	$	11,982	$	160	$	21,045	$	240

	December 31, 2015
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Mortgage-backed securities of      government sponsored entities	$	32,930	$	269	$	14,560	$	261	$	47,490	$	530
State and political subdivisions		3,756		50		2,515		122		6,271		172
Total temporarily impaired securities	$	36,686	$	319	$	17,075	$	383	$	53,761	$	702

Note 4:     Credit Quality of Loans and the Allowance for Loan Losses

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.

10 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past due status is determined based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current for a period of six months and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the collectibility of a loan balance is in question. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated 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 nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be 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.

A loan is considered impaired when, based on current information and events, it is probable that the Company 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. Impairment is measured on a loan-by-loan basis for commercial and construction loans by using 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 balance homogenous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

11 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

The risk characteristics of each portfolio segment are as follows:

Residential Real Estate Loans

For residential mortgage loans that are secured by one-to-four family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to-four family residences. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

All Other Mortgage Loans

All other mortgage loans consist of residential construction loans, nonresidential real estate loans, land loans and multi-family real estate loans.

Residential construction loan proceeds are disbursed in increments as construction progresses and as inspections warrant. Construction loans are typically structured as permanent one-to-four family loans originated by the Company with a 12-month construction phase. Accordingly, upon completion of the construction phase, there is no change in interest rate or term to maturity of the original construction loan, nor is a new permanent loan originated. These loans are generally owner occupied and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded.

Nonresidential real estate loans are negotiated on a case-by-case basis. Loans secured by nonresidential real estate generally involve a greater degree of risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by nonresidential real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired.

The Company also originates a limited number of land loans secured by individual improved and unimproved lots for future residential construction. In addition, the Company originates loans to commercial customers with land held as the collateral.

Multi-family real estate loans generally involve a greater degree of credit risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by multi-family real estate is typically dependent upon the successful operation of the related real estate property. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired.

12 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Commercial Business Loans

Commercial business loans carry a higher degree of risk than one-to-four family residential loans. Such lending typically involves large loan balances concentrated in a single borrower or groups of related borrowers for rental or business properties. In addition, the payment experience on loans secured by income-producing properties is typically dependent on the success of the operation of the related project and thus is typically affected by adverse conditions in the real estate market and in the economy. The Company originates commercial loans generally in the $50,000 to $1,000,000 range with the majority of these loans being under $500,000. Commercial loans are generally underwritten based on the borrower’s ability to pay and assets such as buildings, land and equipment are taken as additional loan collateral. Each loan is evaluated for a level of risk and assigned a rating from “1” (the highest quality rating) to “7” (the lowest quality rating).

Consumer Loans

Consumer loans entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly, such as automobiles, mobile homes, boats, and recreational vehicles. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. In particular, amounts realizable on the sale of repossessed automobiles may be significantly reduced based upon the condition of the automobiles and the lack of demand for used automobiles.

The following presents by portfolio segment the activity in the allowance for loan losses for the three and six months ended June 30, 2016 and 2015:

Three months ended June 30, 2016	One-to-four family residential		All other mortgage loans			Commercial business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,279	$	1,207		$	281		$	4		$	—	$	2,771
Provision charged           to expense		303		(245	)		(47	)		—			—		11
Losses charged off		—		(5	)		—			(1	)		—		(6	)
Recoveries		—		—			—			—			—		—
Ending balance	$	1,582	$	957		$	234		$	3		$	—	$	2,776

Three months ended June 30, 2015	One-to-four family residential			All other mortgage loans		Commercial business loans			Consumer loans		Unallocated		Total
	(In thousands)
Beginning balance	$	910		$	1,055	$	380		$	4	$	—	$	2,349
Provision charged           to expense		367			109		(34	)		1		38		481
Losses charged off		(205	)		—		—			—		—		(205	)
Recoveries		43			—		—			—		—		43
Ending balance	$	1,115		$	1,164	$	346		$	5	$	38	$	2,668

13 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Six months ended June 30, 2016	One-to-four family residential		All other mortgage loans			Commercial business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,346	$	1,210		$	279		$	2		$	—	$	2,837
Provision (Credit)           charged to           expense		235		(248	)		(45	)		2			—		(56	)
Losses charged off		—		(5	)		—			(1	)		—		(6	)
Recoveries		1		—			—			—			—		1
Ending balance	$	1,582	$	957		$	234		$	3		$	—	$	2,776

Six months ended June 30, 2015	One-to-four family residential			All other mortgage loans		Commercial business loans		Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,533		$	885	$	343	$	8		$	—	$	2,769
Provision charged           to expense		397			279		3		(3	)		38		714
Losses charged off		(859	)		—		—		—			—		(859	)
Recoveries		44			—		—		—			—		44
Ending balance	$	1,115		$	1,164	$	346	$	5		$	38	$	2,668

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on the portfolio segment and impairment method as of June 30, 2016 and December 31, 2015:

June 30, 2016	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for           impairment	$	447	$	57	$	53	$	—	$	557
Collectively evaluated for           impairment		1,135		900		181		3		2,219
Total allowance for loan losses	$	1,582	$	957	$	234	$	3	$	2,776
Loan Balances:
Ending balance:
Individually evaluated for           impairment	$	1,661	$	1,273	$	53	$	—	$	2,987
Collectively evaluated for           impairment		183,327		118,783		20,523		2,003		324,636
Total balance	$	184,988	$	120,056	$	20,576	$	2,003	$	327,623

14 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

December 31, 2015	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
Allowance Balances:		(In thousands)
Ending balance:
Individually evaluated for           impairment	$	506	$	13	$	33	$	—	$	552
Collectively evaluated for           impairment		840		1,197		246		2		2,285
Total allowance for loan losses	$	1,346	$	1,210	$	279	$	2	$	2,837
Loan Balances:
Ending balance:
Individually evaluated for           impairment	$	2,789	$	1,061	$	33	$	—	$	3,883
Collectively evaluated for           impairment		176,943		104,060		17,998		1,904		300,905
Total balance	$	179,732	$	105,121	$	18,031	$	1,904	$	304,788

Total loans in the above tables do not include deferred loan origination fees of $778 and $765 or loans in process of $8.9 million and $8.1 million, respectively, for June 30, 2016 and December 31, 2015.

15 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of June 30, 2016 and December 31, 2015:

June 30, 2016	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	180,215	$	117,741	$	20,024	$	2,003
Special Mention (Risk 5)		284		136		499		—
Substandard (Risk 6)		4,489		2,179		53		—
Total	$	184,988	$	120,056	$	20,576	$	2,003

December 31, 2015	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	172,617	$	100,961	$	17,893	$	1,904
Special Mention (Risk 5)		1,406		1,881		105		—
Substandard (Risk 6)		5,709		2,279		33		—
Total	$	179,732	$	105,121	$	18,031	$	1,904

16 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

* Ratings are generally assigned to consumer and residential mortgage loans on a “pass” or “fail” basis, where “fail” results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank’s loan policy that produces a risk rating as described below.

Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds.

Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive.

Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization.

Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies.

Risk 5 or “Special Mention,” also known as “watch,” has potential weakness that deserves Management’s close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral.

Risk 6 or “Substandard” loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower’s credit strength with limited credit access and all nonperforming loans.

Risk 7 or “Doubtful” loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge- off. This category is considered to be temporary until a charge-off amount can be reasonably determined.

17 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

The following tables present the Bank’s loan portfolio aging analysis for June 30, 2016 and December 31, 2015:

June 30, 2016	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
	(In thousands)
One-to-four family       residential loans	$	298	$	107	$	518	$	923	$	184,065	$	184,988	$	—
All other mortgage       loans		134		—		318		452		119,604		120,056		—
Commercial       business loans		—		4		23		27		20,549		20,576		—
Consumer loans		—		—		—		—		2,003		2,003		—
Total	$	432	$	111	$	859	$	1,402	$	326,221	$	327,623	$	—

December 31, 2015	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
	(In thousands)
One-to-four family       residential loans	$	516	$	329	$	903	$	1,748	$	177,984	$	179,732	$	—
All other mortgage       loans		298		—		209		507		104,614		105,121		—
Commercial       business loans		68		—		—		68		17,963		18,031		—
Consumer loans		—		—		—		—		1,904		1,904		—
Total	$	882	$	329	$	1,112	$	2,323	$	302,465	$	304,788	$	—

18 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Nonaccrual loans were comprised of the following at:

Nonaccrual loans	June 30, 2016		December 31, 2015
	(In thousands)
One-to-four family residential loans	$	1,546	$	1,733
Nonresidential real estate loans		318		208
All other mortgage loans		—		—
Commercial business loans		27		—
Consumer loans		—		—
Total	$	1,891	$	1,941

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Bank 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 but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Information with respect to the Company’s impaired loans at June 30, 2016 and December 31, 2015 in combination with activity for the three and six months ended June 30, 2016 and 2015 is presented below:

	As of June 30, 2016						Three months ended June 30, 2016				Six months ended June 30, 2016
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
							(In thousands)
Loans without a      specific valuation      allowance
One-to-four family      residential loans	$	894	$	908	$	—	$	900	$	10	$	1,008	$	20
All other mortgage      loans		1,029		1,029		—		1,034		17		689		35
Commercial business      loans		—		—		—		—		—		—		—
Loans with a      specific valuation      allowance
One-to-four family      residential loans		767		767		447		772		—		1,036		—
All other mortgage      loans		244		244		57		213		—		496		—
Commercial business      loans		53		53		53		41		1		38		1
Total:
One-to-four family      residential loans	$	1,661	$	1,675	$	447	$	1,672	$	10	$	2,044	$	20
All other mortgage      loans		1,273		1,273		57		1,247		17		1,185		35
Commercial business      loans		53		53		53		41		1		38		1
	$	2,987	$	3,001	$	557	$	2,960	$	28	$	3,267	$	56

19 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

	As of December 31, 2015						Three months ended June 30, 2015				Six months ended June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a      specific valuation      allowance
One-to-four family      residential loans	$	1,224	$	1,238	$	—	$	1,794	$	13	$	1,565	$	25
All other mortgage      loans		—		—		—		1,063		18		709		36
Commercial business      loans		—		—		—		—		—		—		—
Loans with a      specific valuation      allowance
One-to-four family      residential loans		1,565		1,875		506		1,010		12		1,397		25
All other mortgage      loans		1,061		1,061		13		83		—		61		—
Commercial business      loans		33		33		33		125		1		131		1
Total:
One-to-four family      residential loans	$	2,789	$	3,113	$	506	$	2,804	$	25	$	2,962	$	50
All other mortgage      loans		1,061		1,061		13		1,146		18		770		36
Commercial business      loans		33		33		33		125		1		131		1
	$	3,883	$	4,207	$	552	$	4,075	$	44	$	3,863	$	87

The interest income recognized in the above tables reflects interest income recognized and is not materially different from the cash basis method.

All TDR classifications are due to concessions being granted to borrowers experiencing financial difficulties. Concessions to borrowers can include exceptions to loan policy including high loan-to-value ratios, no private mortgage insurance (“PMI”) and high debt-to-income ratios, as well as term and rate exceptions. There were $412,000 of TDR classifications that occurred in the 2016 year to date period and included the renewal of an interest only loan as the customer repayments had not been in accordance with the original loan terms.

20 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

The remaining loans are to the same borrower and are on a nonaccrual status. There were no TDR classifications that occurred during the 2015 quarter-to-date or year-to-date period. Each TDR has been individually evaluated for impairment with the appropriate specific valuation allowance included in the allowance for loan losses calculation.There were no TDR classifications which defaulted during the three and six month periods ended June 30, 2016 and 2015. The Company considers TDRs that become 90 days or more past due under modified terms as subsequently defaulted.

	Quarter-to-Date					Year-to-Date
Troubled Debt Restructurings	Number of loans	Pre- modification Recorded Principal Balance		Post- modification Recorded Principal Balance		Number of loans		Pre- modification Recorded Principal Balance		Post- modification Recorded Principal Balance
		(dollars in thousands)						(dollars in thousands)
June 30, 2016
One-to-four family      residential loans		$	—	$	—		8	$	412	$	412

Foreclosed assets held for sale include those properties that the Bank has obtained legal title to, through a formal foreclosure process, or the borrower conveying all interest in the property to the Bank through the completion of a deed in lieu of foreclosure, or similar legal agreement. The following table presents the balance of mortgage loans collateralized by residential real estate properties held as foreclosed assets at June 30, 2016 and December 31, 2015.

	June 30, 2016		December 31, 2015
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	19	$	14

Banks foreclose on certain properties in the normal course of business when it is more probable than not that the loan balance will not be recovered through scheduled payments. Foreclosure is usually a last resort and begins after all other collection efforts have been exhausted. The following table presents the balance of those mortgage loans collateralized by residential real estate properties that are in the formal process of foreclosure at June 30, 2016 and December 31, 2015.

	June 30, 2016		December 31, 2015
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	104	$	171

21 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Note 5:     Goodwill

The following table presents the balance of goodwill at June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
	(In thousands)
Goodwill	$	1,719	$	1,719
Total	$	1,719	$	1,719

The Company is required to annually test goodwill for impairment or more frequently if impairment indicators exist. The Company’s testing of goodwill at November 30, 2015 indicated there was no impairment in the carrying value of the related asset.

Note 6:     Repurchase Agreements

Repurchase agreements are offered by the Bank to commercial business customers to provide them with an opportunity to earn a return on their excess cash balances. These repurchase agreements are considered secured borrowings and are reported in other short-term borrowings. On a daily basis the Bank transfers securities to these customers in exchange for their cash and subsequently agrees to repurchase those same securities the next business day. In the event the Bank is unable to repurchase the securities from the customer, the customer will then have a claim against those securities.

The following tables present the contractual maturity of the repurchase agreements, and the fair value and type of securities pledged as collateral in exchange for these short-term borrowings at June 30, 2016 and December 31, 2015.

22 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
June 30, 2016	(In thousands)
Repurchase Agreements
Mortgage-backed securities           of government           sponsored entities	$	6,157	$	—	$	—	$	—	$	6,157
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings									$	6,157

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
December 31, 2015	(In thousands)
Repurchase Agreements
Mortgage-backed securities           of government           sponsored entities	$	5,606	$	—	$	—	$	—	$	5,606
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings									$	5,606

Note 7:     Earnings Per Share

Basic earnings per common share is computed based upon the weighted-average number of common shares outstanding during the period, less shares in the Company’s Employee Stock Ownership Plan (“ESOP”) that are unallocated and not committed to be released. There were no dilutive shares at June 30, 2016 or June 30, 2015.

The computations are as follows:

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Net income (in thousands)	$	674	$	243	$	1,381	$	683
Weighted-average common shares outstanding		2,747,567		2,761,678		2,747,567		2,763,453
Net income per share	$	0.24	$	0.09	$	0.50	$	0.25

23 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Note 8:     Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory–and possibly additional discretionary–actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

The Bank must give notice to, or under certain conditions specified by regulation, apply to, the Federal Reserve Bank of Cleveland prior to declaring a dividend to the Company. Under existing regulatory guidance, a dividend is generally permissible without regulatory approval if the institution is considered to be “well capitalized” and the dividend does not exceed current year-to-date net income plus the change in retained earnings for the previous two calendar years.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of Tier I capital to average assets, of Tier 1 Common equity capital to risk-weighted assets, of Tier 1 capital to risk-weighted assets, and of Total Risk-based capital to risk-weighted assets, all as defined in the regulations. Management believes, as of June 30, 2016, that the Bank met all capital adequacy requirements to which it is subject.

As of June 30, 2016, based on the computations for the call report the Bank is classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since June 30, 2016, that management believes have changed the Bank’s capital classification.

The Bank’s actual capital amounts and ratios as of June 30, 2016 and December 31, 2015 are presented in the following table.

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of June 30, 2016
Tier I Capital to average assets	$	38,670		8.7%	$	17,774		4.0%	$	22,218		5.0%
Tier 1 Common equity capital to risk-       weighted assets		38,670		12.9%		13,539		4.5%		19,556		6.5%
Tier I Capital to risk-weighted assets		38,670		12.9%		18,052		6.0%		24,069		8.0%
Total Risk-based capital to risk-      weighted assets		41,446		13.8%		24,069		8.0%		30,087		10.0%
As of December 31, 2015
Tier I Capital to average assets	$	37,524		8.8%	$	17,092		4.0%	$	21,365		5.0%
Tier 1 Common equity capital to risk-      weighted assets		37,524		13.4%		12,645		4.5%		18,265		6.5%
Tier I Capital to risk-weighted assets		37,524		13.4%		16,860		6.0%		22,480		8.0%
Total Risk-based capital to risk-      weighted assets		40,361		14.4%		22,480		8.0%		28,099		10.0%

24 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Effective January 1, 2015, new regulatory capital requirements commonly referred to as “Basel III” were implemented and are reflected in the capital table above. Management opted out of the accumulated other comprehensive income treatment under the new requirements, and as such unrealized gains and losses from available-for-sale securities will continue to be excluded from Bank regulatory capital.

Implementation of the deductions and other adjustments to Common Equity Tier 1 (CET1) began on January 1, 2015, and will phase in over a four-year period (beginning at 40% on January 1, 2015, and an additional 20% per year thereafter).  Under the new rule, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of CET1 capital above its minimum risk-based capital requirements.  The implementation of the capital conservation buffer begins on January 1, 2016, at the 0.625% level and will phase in over a four-year period (increasing by that amount on each subsequent January 1 until it reaches 2.5% on January 1, 2019).

Note 9:     Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows:

	Gross Unrealized Gains on Available-for- Sale Securities		Net Unrealized Loss for Unfunded Status of Split- Dollar Life Insurance Plan Liability (tax-free)			Gross Unrealized Loss for Unfunded Status of Defined Benefit Plan			Tax Effect			Total Accumulated Other Comprehensive Income (Loss)
	(In thousands)
June 30, 2016	$	1,416	$	(89	)	$	(1,083	)	$	(113	)	$	131
December 31, 2015	$	777	$	(89	)	$	(1,083	)	$	104		$	(291	)

There were no amounts reclassified out of accumulated other comprehensive income (loss) during the

six months ended June 30, 2016 or 2015.

Note 10:     Fair Value Measurements

Fair value 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 measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or

25 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Recurring Measurements

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the Company’s consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy.

The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and December 31, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
U.S. government agencies	$	96	$	—	$	96	$	—
Mortgage-backed securities of           government sponsored entities		69,760		—		69,760		—
Private-label collateralized mortgage           obligations		173		—		173		—
State and political subdivisions		16,576		—		16,576		—

26 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
U.S. government agencies	$	101	$	—	$	101	$	—
Mortgage-backed securities of           government sponsored entities		76,104		—		76,104		—
Private-label collateralized mortgage           obligations		277		—		277		—
State and political subdivisions		18,865		—		18,865		—

Nonrecurring Measurements

Certain assets may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

Collateral-dependent Impaired Loans, Net of ALLL

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the office of the Chief Financial Officer. Appraisals are reviewed for accuracy and consistency by the Credit Analyst. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the office of the Chief Financial Officer by comparison to historical results.

Foreclosed Assets Held for Sale

Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of real estate is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy.

Appraisals of real estate are obtained when the real estate is acquired and subsequently as deemed necessary by the Chief Financial Officer. Appraisals are reviewed internally for accuracy and consistency in accordance with regulatory requirements. Appraisers are selected from the list of approved appraisers maintained by management.

The following table presents the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and December 31, 2015.

27 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Collateral-dependent           impaired loans	$	26	$	—	$	—	$	26
Foreclosed assets		19		—		—		19
December 31, 2015
Collateral-dependent           impaired loans	$	292	$	—	$	—	$	292
Foreclosed assets		5		—		—		5

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements in thousands.

	Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
June 30, 2016
Collateral-dependent           impaired loans	$	26	Historical proceeds from prior sales	Selling Costs	41%
Foreclosed assets		19	Historical proceeds from prior sales	Selling Costs	N/A
December 31, 2015
Collateral-dependent           impaired loans	$	292	Market comparable properties, less delinquent real estate taxes	N/A	N/A
Foreclosed assets		5	Agreed upon selling price	Selling Costs	10%

There were no changes in the inputs or methodologies used to determine fair value at June 30, 2016 as compared to December 31, 2015.

28 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

The following table presents estimated fair values of the Company’s financial instruments not carried at fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.

			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Financial assets
Cash and cash equivalents	$	12,067	$	12,067	$	—	$	—
Held-to-maturity           securities		9,159		—		9,357		—
Loans, net of allowance           for loan losses		315,144		—		—		332,540
Federal Home Loan Bank           stock		4,226		—		4,226		—
Interest receivable		1,166		—		1,166		—
Financial liabilities
Deposits		376,935		42,906		321,747		—
Other short-term           borrowings		6,157		—		6,157		—
Federal Home Loan Bank           advances		21,000		—		21,274		—
Advances from borrowers           for taxes and insurance		406		—		406		—
Interest payable		46		—		46		—

29 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
Financial assets
Cash and cash equivalents	$	11,156	$	11,156	$	—	$	—
Held-to-maturity           securities		8,307		—		8,205		—
Loans, net of allowance           for loan losses		293,121		—		—		302,595
Federal Home Loan Bank           stock		4,226		—		4,226		—
Interest receivable		1,149		—		1,149		—
Financial liabilities
Deposits		362,427		42,630		295,796		—
Other short-term           borrowings		5,606		—		5,606		—
Federal Home Loan Bank           advances		21,000		—		20,978		—
Advances from borrowers           for taxes and insurance		1,240		—		1,240		—
Interest payable		40		—		40		—

The following methods and assumptions were used to estimate the fair value of each class of financial instruments.

Cash and Cash Equivalents, Interest Receivable and Federal Home Loan Bank Stock

The carrying amount approximates fair value.

Held-to-maturity Securities

The fair value of held-to-maturity securities was estimated by using pricing models that contain market pricing and information, quoted prices of securities with similar characteristics or discounted cash flows that use credit-adjusted discount rates.

30 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

Loans

The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations.

Deposits

Deposits include savings accounts, checking accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.

Federal Home Loan Bank Advances

Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt.

Commitments to Originate Loans, Letters of Credit and Lines of Credit

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2016 and December 31, 2015.

Interest Payable, Other Short-Term Borrowings and Advances From Borrowers for Taxes and Insurance

The carrying amount approximates fair value.

Note 11:     Recent Accounting Developments

FASB ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, was issued in August 2014. The amendments in this update provide guidance in Generally Accepted Accounting Principles (GAAP) about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, was issued in January, 2015. This update eliminates from Generally Accepted Accounting Principles the concept of extraordinary items, which required that an entity separately classify, present and disclose extraordinary

31 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

events and transactions. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction is extraordinary. It will also alleviate uncertainty for preparers, auditors, and regulators because auditors and regulators will no longer need to evaluate whether the preparer treated an unusual item appropriately. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, was issued in April, 2015. The amendments in this Update require that debt issuance costs related to a recognized debit liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued, and the amendments in this Update should be applied retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-04, Compensation – Retirement Benefits (Subtopic 715), Practical Expedient for the Measurement of an Employer’s Defined Benefit Obligation and Plan Assets, was issued in April, 2015. A reporting entity with a fiscal year end that does not coincide with a month end may incur more costs than other entities when measuring the fair value of plan assets of a defined benefit pension or other post-retirement benefit. For an entity with a fiscal year end that does not coincide with a month end, the amendments in this Update provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month end that is closest to the entity’s fiscal year end and apply that practical expedient consistently from year to year. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. Early application is permitted, and the amendments in this Update should be applied retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-10, Technical Corrections and Improvements was issued in June, 2015. The amendments in this Update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to entities. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this update. The adoption of the amendments that required transition guidance did not have a material impact on the Company’s consolidated financial statements. The adoption of the other amendments in this update did not have a material impact on the Company’s consolidated financial statements.

32 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

FASB ASU 2015-14, Revenue from Contracts with Customers, (Topic 606), Deferral of the effective date, was issued in August 2015. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 was originally effective for fiscal years and interim periods within those years beginning after December 15, 2016. In August 2015, the FASB issued 2015-14, which deferred the effective date of ASU 2014-09 by one year for periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date and requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the potential impact on its consolidated financial statements and related notes, as well as the available transition methods.

FASB ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements was issued in August, 2015. The amendments in this Update address line-of-credit arrangements. In that, given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the terms of the line-of-credit arrangement. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued, and the amendments in this Update should be applied retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments was issued in September 2015. The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-01, Financial Instruments–Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities was issued in January 2016. The amendments in this Update make targeted improvements to generally accepted accounting principles, and address certain aspects of recognition, measurement, presentation, and disclosure of financial statements. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Except as specifically stated, early adoption of the amendments in this Update are not permitted. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-02, Leases (Topic 842), Section A- Leases, Amendments to the FASB Accounting Standards Codification, Section B – Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification, and Section C – Background Information and Basis for Conclusions was issued in February 2016. The amendments in this Update are designed to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this Update

33 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

include disclosures that are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-04, Liabilities-Extinguishments of Liabilities (Subtopic 405-20), was issued in March 2016. The amendments in this Update apply to entities that offer certain prepaid stored-value products, including prepaid gift cards, prepaid telecommunication cards, and travelers checks. The amendments in this Update contain specific guidance for the derecognition of pre-paid stored value product liabilities and are an improvement to GAAP because they specify how pre-paid stored-value product liabilities with the Update’s scope should be derecognized. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier application is permitted, including adoption in an interim period. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-10, Revenue from Contracts with Customers, (Topic 606), Identifying Performance Obligations and Licensing was issued in April 2016. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or 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. The amendments in this Update clarify the following two aspects in Topic 606, identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients, was issued in May 2016. The amendments in this update do not change the core principle of the guidance in Topic 606, but rather clarify certain narrow aspects. The amendments in this update clarify the objective of collectibility and determine whether a contract is valid based on if the customer has the ability and intention to pay, and also to clarify when revenue would be recognized for a contract that fails collectibility. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, was issued in June 2016. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To

34 

Wayne Savings Bancshares, Inc.
Notes to Condensed Consolidated Financial Statements

achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal year. Early adoption of the amendments in this Update are allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of this Update. The Company is studying the implications of this update, including following evolving regulatory and industry guidance, and gathering additional detailed historical data. The effect of this Update on the Company’s financial statements is not known at this time.

35 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operation

Strategic Initiatives

As part of an ongoing strategic planning process, which includes annual plan updates and regular progress reviews by the Board of Directors, our initiatives to improve shareholder returns include:

· Enhance balance sheet assets to increase higher yielding and/or shorter duration commercial business and commercial real estate loans and home equity lines of credit and reducing the investment securities portfolio.

· Offer value-added account services to strengthen customer relationships.

· Actively manage capital to provide an appropriate return to shareholders.

· Transition from a transaction-oriented thrift culture to a relationship-oriented commercial bank culture and gain customer relationships by taking advantage of disruption in the local banking market resulting from acquisitions of independent local community and regional banks

· Examine staffing levels and facilities and monitor customer and transaction volume in the face of decreasing transaction volume levels through traditional channels.

· Offset pressure on net interest margin and customer resistance to fees wherever possible, including by incorporating operating efficiency into the performance goals of managers with expense responsibility

· Upgrade technology for more efficient customer service and operations.

Critical Accounting Policies

Critical Accounting Policies – The Company’s critical accounting policy relates to the allowance for loan losses and goodwill. The Company has established a systematic method of periodically reviewing the credit quality of the loan portfolio in order to establish a sufficient allowance for loan losses. The allowance for loan losses is based on management’s current judgments about the credit quality of individual loans and segments of the loan portfolio. The allowance for loan losses is established through a provision, and considers all known internal and external factors that affect loan repayment as of the reporting date. Such evaluation, which includes a review of all loans on which full repayment may not be reasonably assured, considers among other matters, the estimated net realizable value or the fair value of the underlying collateral, economic conditions, historical loan loss experience, management’s knowledge of inherent risks in the portfolio that are probable and reasonably estimable and other factors, including those required by regulation that warrant recognition in providing an appropriate loan loss allowance. Management has discussed the development and selection of this critical accounting policy with the audit committee of the Board of Directors.

36 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Discussion of Financial Condition Changes from December 31, 2015 to June 30, 2016

At June 30, 2016, the Company had total assets of $449.2 million, an increase of $15.6 million, from total assets at December 31, 2015. The increase in total assets includes a $22.0 million increase in net loans, partially offset by a $7.8 million decrease in securities balances compared to December 31, 2015.

Total securities decreased $7.8 million to $95.8 million at June 30, 2016, compared to $103.6 million at December 31, 2015. The decrease in securities is primarily due to investing the principal and interest cash flows received from securities into higher yielding loans. The decrease included principal repayments of $12.3 million and amortization of premiums of $590,000, partially offset by purchases totaling $4.4 million, and a $640,000 increase in unrealized gains on available-for-sale securities during the six months ended June 30, 2016.

Net loans receivable increased $22.0 million at June 30, 2016 compared to December 31, 2015. The Bank originated $46.6 million of loans, received payments of $21.7 million, and originated and sold $3.0 million of 30-year fixed-rate residential mortgage loans into the secondary market. The increase in net loan balances is mainly due to new origination in excess of principal reductions during the current year period.

The allowance for loan losses totaled $2.8 million and decreased $61,000 compared to December 31, 2015 due mainly to the provision for loan losses credit of $56,000. The aforementioned provision for loan losses credit was due to reduced loss history and favorable economic factors, including reduced past due loan balances and a reduced number of local foreclosures compared to December, partially offset by additional allocation associated with increased loan balances.

37 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Management continues to focus on risk selection and the returns generated in return for risks taken in making its lending and investment decisions. Key areas of risk reviewed for each potential loan origination and securities purchase include credit, interest rate and liquidity risk. Interest rate risk arises mainly from longer term fixed-rate loans. Credit risk arises mainly from loan structure and underwriting conditions. The effects of additional loan portfolio risks generated by competitive pressures in the Company’s market area are evaluated relative to the projected returns to ensure acceptable financial performance over a long-term horizon. As part of an overall strategy to manage liquidity and interest rate risk, management continues to execute a strategy of immediately selling certain newly originated 30-year fixed-rate residential mortgage loans into the secondary market to limit the interest rate risk exposure on the balance sheet and to utilize the secondary market as a backup source of liquidity. Loans sold into the secondary market are sold with representations and warranties. In the event that those representations and warranties are violated, repurchase of loans may be required. No repurchases have been required in recent periods and management believes that the bank is in full compliance with applicable selling and servicing guides. Similarly, in order to further limit the overall interest rate risk on the balance sheet, the Company focuses on the origination of shorter-term and adjustable-rate secured commercial loans and limits the retention of long-term fixed-rate residential mortgages. These strategies have the effect of generating lower loan yields in the short term due to the loans being priced off the lower yield short end of the yield curve. The principal source of liquidity is the Bank’s investment securities portfolio. To the extent that loan demand is insufficient in any given period, investments in the securities portfolio are made to provide cash flows to fund loan demand in future periods (a source of liquidity), while also limiting the interest rate risk exposure of the Company. Investments generally contribute to higher risk-based capital ratios, compared to loans, as the investments the Company purchases are risk weighted less than the loan originations. As loan volume increases relative to investment volume, risk-based capital ratios will likely decline, as loans generally require a higher allocation of risk-based capital compared to investments. As demonstrated by quarterly balance sheet presentations, as a result of general economic and competitive conditions, loan demand and originations are volatile on a sequential quarter basis, which in turn results in volatility in quarterly investment securities balances. The longer term trend and strategic direction is for an increase in higher yielding loan balances relative to lower yielding investment securities balances.

38 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

The following table sets forth certain information regarding the Company’s loan portfolio for the dates indicated.

	June 30, 2016				December 31, 2015
	Balance		Percent of total loans		Balance		Percent of total loans
	(Dollars in thousands)
Mortgage loans:
One-to-four family residential(1)	$	184,988		56.46%	$	179,732		58.97%
Residential construction loans		5,227		1.60%		6,177		2.03%
Multi-family residential		12,353		3.77%		12,474		4.09%
Nonresidential real estate/land(2)		102,476		31.28%		86,470		28.37%
Total mortgage loans		305,044		93.11%		284,853		93.46%
Other loans:
Consumer loans(3)		2,003		0.61%		1,904		0.62%
Commercial business loans		20,576		6.28%		18,031		5.92%
Total other loans		22,579		6.89%		19,935		6.54%
Total loans before net items		327,623		100.00%		304,788		100.00%
Less:
Loans in process		8,925				8,065
Deferred loan origination fees		778				765
Allowance for loan losses		2,776				2,837
Total loans receivable, net	$	315,144			$	293,121

⁽¹⁾ Includes equity loans collateralized by second mortgages in the aggregate amount of $15.3 million at both June 30, 2016 and at December 31, 2015. Such loans are secured by one-to-four family residential properties and are underwritten to conform with bank loan policies.

⁽²⁾ Includes commercial loans secured by residential real estate of $30.8 million at June 30, 2016 and $29.4 million at December 31, 2015.

⁽³⁾ Includes land loans of $3.5 million at June 30, 2016 and $3.6 million at December 31, 2015.

⁽⁴⁾ Includes second mortgage loans of $292 at June 30, 2016 and $332 at December 31, 2015.

Foreclosed assets held for sale totaled $19,000 at June 30, 2016, an increase of $5,000, compared to $14,000 at December 31, 2015. The increase in foreclosed assets during the current year was due to additions of properties totaling $106,000, partially offset by sales totaling $85,000 that resulted in a net loss of $5,000. During the prior year period there were additions of $308,000 offset with a write-down of $9,000 on a specific property and sales totaling $179,000 that resulted in a loss of $77,000. Total impaired assets were $3.0 million, or 0.66% of total assets at June 30, 2016, compared to $3.9 million, or 0.90% of total assets at December 31, 2015.

39 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Goodwill of $1.7 million is carried on the Company’s balance sheet as a result of the acquisition of Stebbins Bancshares in June 2004. In accordance with FASB ASC 350, this goodwill is tested for impairment on at least an annual basis. Management evaluated the goodwill using an analysis of required measures of value, including the current stock price as an indicator of minority interest value, change of control multiples as a measure of controlling interest value and discounted cash flow analysis as a measure of going concern value and applied a weighting based on appraisal standards to arrive at a valuation conclusion that indicated no impairment at November 30, 2015. Management believes that there were no interim impairment indicators that would require another evaluation at June 30, 2016.

Deposits totaled $376.9 million at June 30, 2016, an increase of $14.5 million from $362.4 million at December 31, 2015. This increase includes a $471,000 increase in demand deposits, a $7.6 million increase in savings and money market balances and a $6.5 million increase in time deposits. The Company continues to monitor deposit activity closely to respond to changes in customer preference for types of deposits and competitive pressure.

Other short-term borrowings, which consist solely of repurchase agreements with commercial customers of the Bank, increased by $551,000 and totaled $6.2 million at June 30, 2016. The increase was due to an increase in excess funds held by those commercial customers holding repurchase agreements. These customer repurchase agreements are offered by the Bank in order to retain commercial customer funds and to afford those commercial customers the opportunity to earn a return on a short-term secured transaction. Average balances are shown in the tables below and reflect no significant variation during the periods. The interest rate paid on these borrowings was 0.15% at both June 30, 2016 and December 31, 2015.

Advances from the Federal Home Loan Bank (FHLB) totaled $21.0 million, at both June 30, 2016 and December 31, 2015. The Company uses advances from the FHLB for both short-term cash management purposes and to extend the term to maturity of liabilities for interest rate risk management purposes. The cost of longer term liabilities purchased from the FHLB is generally less expensive than obtaining a similar term to maturity through retail certificates of deposit. Repricing risk associated with advances is mitigated through the laddering of advance maturities over time. The weighted-average cost of FHLB advances was 1.32% at June 30, 2016 compared to 1.86% at December 31, 2015.

Stockholders’ equity increased by $1.4 million during the period ended June 30, 2016. This increase was due to net income of $1.4 million, and $422,000 increase in unrealized gains on available-for-sale securities, partially offset by $494,000 in shareholder dividends.

40 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Average Balance Sheet

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.

	For the three months ended June 30,
	2016						2015
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable, net(1)	$	309,263	$	3,209		4.15%	$	268,531	$	2,855		4.25%
Investment securities(2)		97,159		568		2.34%		114,739		688		2.40%
Interest-earning deposits(3)		15,526		49		1.26%		14,772		45		1.22%
Total interest-earning assets		421,948		3,826		3.63%		398,042		3,588		3.61%
Noninterest-earning assets		24,169						24,470
Total assets	$	446,117					$	422,512
Interest-bearing liabilities:
Deposits	$	374,061	$	447		0.48%	$	351,496	$	402		0.46%
Other short-term borrowings		5,627		2		0.14%		6,804		3		0.18%
Borrowings		21,000		69		1.31%		19,171		98		2.04%
Total interest-bearing liabilities		400,688		518		0.52%		377,471		503		0.53%
Noninterest-bearing  liabilities		4,417						4,927
Total liabilities		405,105						382,398
Stockholders’ equity		41,012						40,114
Total liabilities and stockholders’ equity	$	446,117					$	422,512
Net interest income			$	3,308					$	3,085
Interest rate spread(4)						3.11%						3.08%
Net yield on interest-earning assets(5)						3.14%						3.10%
Ratio of average interest-earning assets to average  interest-bearing liabilities						105.31%						105.45%

⁽¹⁾ Includes nonaccrual loan balances.

⁽²⁾ Includes mortgage-backed securities both designated as available-for-sale and held-to-maturity.

⁽³⁾ Includes interest-earning deposits in other financial institutions.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net yield on interest-earning assets represents net interest income as a percentage of average interest-earning assets.

41 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Comparison of Operating Results for the Three Months Ended June 30, 2016 and 2015

General

Net income for the three months ended June 30, 2016, totaled $674,000, an increase of $431,000, compared to $243,000 for the three month period ended June 30, 2015. The increase in net income was due to an increase in both net interest income and noninterest income, and a decrease in the provision for loan losses, partially offset by an increase in both noninterest expense and the provision for federal income taxes.

Interest Income

Interest income increased $238,000, and totaled $3.8 million for the three month period ended June 30, 2016, compared to $3.6 million for the three month period ended June 30, 2015. The increase was due to both an increase in the average balance of interest-earning assets and the weighted-average yield. The average balance of interest-earning assets increased by $23.9 million and totaled $421.9 million for the 2016 period from $398.0 million in the 2015 period. The weighted-average yield was 3.63% for the three months ended June 30, 2016, and increased by 2 basis points compared to 3.61% for the three months ended June 30, 2015.

Interest income on loans was $3.2 million for the three month period ended June 30, 2016, and increased $354,000 compared to the three month period ended June 30, 2015. This increase was primarily due to a $40.8 million increase in the average balance of loans from $268.5 million in the 2015 period to $309.3 million for the 2016 period. The increase in the average balance of loans outstanding was partially offset by a decrease in the weighted-average yield of 10 basis points from 4.25% for the three months ended June 30, 2015 to 4.15% for the three months ended June 30, 2016.

Interest income on securities decreased $120,000 during the three months ended June 30, 2016, compared to the same period in 2015. This decrease was due to both a decrease in the average balance of investment securities, and a decrease in the weighted-average rate. The average balance of investment securities decreased $17.5 million from $114.7 million in the 2015 period to $97.2 million in the 2016 period, and the weighted-average rate decreased 6 basis points from 2.40% in the 2015 period to 2.34% for the 2016 period. The decrease in the average balance was due to investing excess cash into the loan portfolio, while the decrease in yield was primarily due to a the maturity and repayment of higher yielding investments and purchases of new investment securities at lower yields.

Dividends on Federal Home Loan Bank stock and other income was $49,000 for the three month period ended June 30, 2016, and increased $4,000 compared to the same period in 2015. The increase was due to a 4 basis increase in the weighted-average rate from 1.22% in the 2015 period to 1.26% in the 2016 period, and a $754,000 increase in the average balance outstanding.

Interest Expense

Interest expense totaled $518,000 for the three month period ended June 30, 2016, an increase of $15,000 compared to the three month period ended June 30, 2015. The increase was due to a $23.2 million increase in the average balance of total interest-bearing liabilities from $377.5 million in the 2015 period to $400.7 million in the 2016 period, partially offset by a 1 basis point decrease in the weighted-average cost of funds from 0.53% in the 2015 period to 0.52% in the current year period.

42 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Interest expense on deposits for the three month period ended June 30, 2016 totaled $447,000, an increase of $45,000 compared to $402,000 for the same period in the previous year. The increase was primarily due to a $7.2 million increase in average certificate of deposit balances and a shift from shorter term, lower cost certificates of deposit into longer term, higher cost certificates of deposit. The increase was also due to a $15.3 million increase in the combined average balance of money market and savings accounts and demand deposit accounts. The weighted-average cost of deposits also increased by 2 basis points, from 0.46% in the 2015 period to 0.48% in the 2016 period.

Interest expense on other short-term borrowings totaled $2,000 for the three month period ended June 30, 2016, and decreased $1,000 from the same period in the previous year. The weighted-average cost of short-term borrowings decreased 4 basis points from 0.18% in the 2015 period to 0.14% in the 2016 period, and the average balance of short-term borrowings decreased by $1.2 million compared to the prior year period.

Interest expense on Federal Home Loan Bank advances totaled $69,000 for the three month period ended June 30, 2016, a decrease of $29,000 from $98,000 in the 2015 period. The decrease was primarily due to a 73 basis point decrease in the weighted-average cost from 2.04% in the 2015 period to 1.31% in the 2016 period. The decrease in the weighted-average cost was partially offset by a $1.8 million increase in the average balance outstanding from $19.2 million in the 2015 period to $21.0 million in the 2016 period. The decrease in the weighted-average cost was due to the maturity of higher rate advances, while the increase in the average balance was due to the addition of new lower cost fixed-rate term advances in excess of the scheduled maturities of fixed-rate term advances in lieu of higher cost retail or wholesale deposits.

Net Interest Income

Net interest income totaled $3.3 million for the three months ended June 30, 2016, and increased $223,000 compared to the three month period ended June 30, 2015. The increase in net interest income was primarily due to a $23.9 million increase in the average balance of interest-earning assets and a favorable shift in the composition of earning assets compared to the prior year quarter. The increase in the average balance of earning assets was substantially due to a $40.7 million increase in the average balance of higher yielding loans, partially offset by a $16.8 million decline in lower yielding investments and interest-earning deposits compared to the prior year quarter. This increase was also due to a 3 basis point increase in the net interest spread from 3.08% at June 30, 2015 to 3.11% at June 30, 2016. The increase in the net interest spread is a result of yields on interest-earning assets increasing more than the rate paid on interest-bearing liabilities. During the three months ended June 30, 2016, the yield on earning assets increased 2 basis points and the rate paid on interest-bearing liabilities decreased 1 basis point, compared to the same period last year. The yield on earning assets was favorably impacted as a result of an increase in higher yielding loan balances partially offset with a decline in the average yield of investment securities.

43 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Provision for Loan Losses

Management recorded an $11,000 provision for loan losses for the three month period ended June 30, 2016, compared to a provision of $481,000 for the three month period ended June 30, 2015. The decrease is primarily due to a decrease in net charge-offs, and impaired loans from the prior year period, as well as improved economic factors, partially offset by higher loan balances. There were charge-offs totaling $6,000 in the current year quarter compared to charge-offs totaling $205,000 in the prior year quarter, and impaired loans totaled $3.0 million at June 30, 2016, a decrease of $900,000, compared to $3.9 million at June 30, 2015.

Noninterest Income

Noninterest income totaled $555,000 for the three month period ended June 30, 2016, an increase of $112,000, from $443,000 for the same period in 2015. The increase was due to a $58,000 increase in gain on sale of loans, and a $52,000 increase in service fees, charges and other operating income. The increase in gain on sale of loans was due to sales totaling $1.9 million in the current year period, compared to sales totaling $524,000 in the same period last year. The increase in service fees, charges and other operating income was primarily due to a $52,000 supervisory fee refund in the current year period.

Noninterest Expense

Noninterest expense totaled $3.0 million for three month period ended June 30, 2016, an increase of $168,000 from $2.8 million for the three months ended June 30, 2015. This increase includes a $178,000 increase in salaries and employee benefits and a $22,000 increase in franchise taxes, partially offset by a $51,000 decrease in other noninterest expense. The increase in salaries and employee benefits was due to increased director and committee fees due to a change in the director fee structure, increased compensation due to staff additions and merit increases, increased pension expense due to planned retirements, and higher healthcare costs due to an increase in premiums and staffing levels compared to the prior year period. These increases were partially offset by a decrease in lower education and training, and post-retirement benefit costs. The increase in franchise taxes was due to the exclusion of the tax credit for the state supervisory exam fee that had previously been recorded in other noninterest expense in the prior year period. The decrease in other noninterest expense was due to a decrease in real estate owned expense, legal expense and supervisory fee expense, partially offset by an increase in audit expense compared to the prior year quarter.

Federal Income Taxes

Federal income tax expense totaled $228,000 for the three month period ended June 30, 2016, an increase of $206,000 compared to $22,000 for three month period ended June 30, 2015. The increase was primarily due to a $637,000 increase in pretax income compared to the prior year period, and an increase in the effective tax rate. The effective tax rate in the current year quarter was 25.28% compared to 8.30% for the prior year quarter. The effective rate is below the statutory rate of 34% due to certain income items that are not subject to tax.

44 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Comparison of Operating Results for the Six Months Ended June 30, 2016 and 2015

General

Net income for the six months ended June 30, 2016, totaled $1.4 million, an increase of $698,000, compared to $683,000 for the six month period ended June 30, 2015. The increase in net income was due to an increase in both net interest income and noninterest income, and a decrease in the provision for loan losses, partially offset by an increase in both noninterest expense and the provision for federal income taxes.

45 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Average Balance Sheet

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.

	For the six months ended June 30,
	2016						2015
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable, net(1)	$	304,038	$	6,378		4.20%	$	267,423	$	5,665		4.24%
Investment securities(2)		99,116		1,196		2.41%		114,285		1,392		2.44%
Interest-earning deposits(3)		12,661		93		1.47%		13,706		89		1.30%
Total interest-earning assets		415,815		7,667		3.69%		395,414		7,146		3.61%
Noninterest-earning assets		24,188						24,237
Total assets	$	440,003					$	419,651
Interest-bearing liabilities:
Deposits	$	367,970	$	868		0.47%	$	350,022	$	794		0.45%
Other short-term borrowings		5,747		4		0.14%		6,874		5		0.15%
Borrowings		21,324		139		1.30%		17,817		190		2.13%
Total interest-bearing liabilities		395,041		1,011		0.51%		374,713		989		0.53%
Noninterest-bearing  liabilities		4,260						4,709
Total liabilities		399,301						379,422
Stockholders’ equity		40,702						40,229
Total liabilities and stockholders’ equity	$	440,003					$	419,651
Net interest income			$	6,656					$	6,157
Interest rate spread(4)						3.18%						3.08%
Net yield on interest-earning assets(5)						3.20%						3.11%
Ratio of average interest-earning assets to average interest-bearing liabilities						105.26%						105.52%

⁽¹⁾ Includes nonaccrual loan balances.

⁽²⁾ Includes mortgage-backed securities both designated as available-for-sale and held-to-maturity.

⁽³⁾ Includes interest-earning deposits in other financial institutions.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net yield on interest-earning assets represents net interest income as a percentage of average interest-earning assets.

46 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Interest Income

Interest income increased $521,000, and totaled $7.7 million for the six month period ended June 30, 2016, compared to $7.1 million for the six month period ended June 30, 2015. The increase was due to both an increase in the average balance of interest-earning assets and the weighted-average yield. The average balance of interest-earning assets increased by $20.4 million and totaled $415.8 million for the 2016 period from $395.4 million in the 2015 period. The weighted-average yield was 3.69% for the six months ended June 30, 2016, and increased by 8 basis points compared to 3.61% for the six months ended June 30, 2015.

Interest income on loans was $6.4 million for the six month period ended June 30, 2016, and increased $713,000 compared to the six month period ended June 30, 2015. This increase was primarily due to a $36.6 million increase in the average balance of loans from $267.4 million in the 2015 period to $304.0 million for the 2016 period. The increase in the average balance of loans outstanding was partially offset by a 4 basis point decrease in the weighted-average yield from 4.24% for the six months ended June 30, 2015 to 4.20% for the six months ended June 30, 2016.

Interest income on securities totaled $1.2 million for the six months ended June 30, 2016, and decreased $196,000 compared to the six month period ended June 30, 2015. This decrease was due to both a decrease in the average balance and a decrease in the weighted-average rate. The average balance of investment securities decreased $15.2 million, from $114.3 million in the 2015 period to $99.1 million in the 2016 period. The weighted-average rate of investment securities was 2.41% in the 2016 period and decreased 3 basis points from 2.44% in the 2015 period. The decrease in the average balance was due to investing excess cash into the loan portfolio.

Dividends on Federal Home Loan Bank stock and other income was $93,000 for six month period ended June 30, 2016, and increased $4,000 compared to the six month period ending June 30, 2015. The weighted-average rate increased 17 basis points from 1.30% in the 2015 period to 1.47% in the 2016 period. This increase in the weighted-average rate was partially offset by a $1.0 million decrease in the average balance.

Interest Expense

Interest expense totaled $1.0 million for the six month period ended June 30, 2016, and increased $22,000 compared to the six month period ended June 30, 2015. The increase was due to a $20.3 million increase in the average balance of total interest-bearing liabilities from $374.7 million in the 2015 period to $395.0 million in the 2016 period, partially offset by a 2 basis point decrease in the weighted-average cost of funds from 0.53% in the 2015 period to 0.51% in the current year period.

47 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Interest expense on deposits for the six month period ended June 30, 2016 totaled $868,000, an increase of $74,000 compared to $794,000 for the same period in the previous year. The increase in interest expense was primarily due to a $4.9 million increase in average certificate of deposit balances and a shift from shorter term, lower cost certificates of deposit into longer term, higher cost certificates of deposit. In addition to the increased certificate of deposit balances, the average balance of savings and money market balances increased by $4.7 million and the average balance of demand deposits increased by $8.4 million. The weighted-average cost of deposits also increased by 2 basis points, from 0.45% in the 2015 period to 0.47% in the 2016 period.

Interest expense on other short-term borrowings totaled $4,000 for the six month period ended June 30, 2016, and decreased $1,000 compared to the same period last year. The weighted-average cost of short-term borrowings decreased 1 basis point from 0.15% in the 2015 period to 0.14% in the 2016 period, and the average balance of short-term borrowings decreased $1.1 million.

Interest expense on Federal Home Loan Bank advances totaled $139,000 for the six month period ended June 30, 2016, a decrease of $51,000 from $190,000 in the 2015 period. The decrease was primarily due to an 83 basis point decrease in the weighted-average cost from 2.13% in the 2015 period to 1.30% in the 2016 period. The decrease in the weighted-average cost was partially offset by a $3.5 million increase in the average balance outstanding from $17.8 million in the 2015 period to $21.3 million in the 2016 period. The decrease in the weighted-average cost was due to the maturity of higher rate advances, while the increase in the average balance was due to the addition of new lower cost fixed-rate term advances in excess of the scheduled maturities of fixed-rate term advances in lieu of higher cost retail or wholesale deposits.

Net Interest Income

Net interest income totaled $6.7 million for the six months ended June 30, 2016, and increased $499,000 compared to the six month period ended June 30, 2015. The increase in net interest income was primarily due to a $20.4 million increase in the average balance of interest-earning assets and a favorable shift in the composition of earning assets compared to the prior year quarter. The increase in the average balance of earning assets was substantially due to a $36.6 million increase in the average balance of higher yielding loans, partially offset by a $16.2 million decline in lower yielding investments and interest-earning deposits compared to the prior year period. This increase was also due to a 10 basis point increase in the interest rate spread from 3.08% at June 30, 2015 to 3.18% at June 30, 2016. The increase in the interest rate spread is a result of yields on interest-earning assets increasing more than the rate paid on interest-bearing liabilities. During the six months ended June 30, 2016, the yield on earning assets increased 8 basis points, while the rate paid on interest-bearing liabilities decreased 2 basis points, compared to the same period last year. The yield on earning assets was favorably impacted as a result of an increase in higher yielding loan balances, and reduced prepayments and premium amortization on investment securities.

Provision (Credit) for Loan Losses

Management recorded a $56,000 credit for loan losses for the six month period ended June 30, 2016, compared to a provision of $714,000 for the six month period ended June 30, 2015. The decrease is primarily due to a decrease in net charge-offs, and impaired loans from the prior year period, as well as improved economic factors, partially offset by higher loan balances. There were $6,000 in charge-offs during the current year period compared to charge-offs totaling $859,000 in the prior year period.

48 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Noninterest Income

Noninterest income totaled $1.0 million for the six month period ended June 30, 2016, an increase of $133,000, from $874,000 for the same period in 2015. The increase was primarily due to a $59,000 increase in gain on sale of loans and a $71,000 increase in service fees, charges and other operating income. The increase in gain on sale of loans was primarily due to an increase in loans sold. Loans sold during the 2016 year to date period totaled $3.0 million, compared to loan sales of $1.9 million in the same period one year ago. The increase in service fees, charges and other operating income was due to the supervisory fee refund previously mentioned , as well as an increase in service charges on deposit accounts and debit card interchange income.

Noninterest Expense

Noninterest expense totaled $5.9 million for six month period ended June 30, 2016, an increase of $373,000 from $5.5 million for the six months ended June 30, 2015. This increase includes a $289,000 increase in salaries and employee benefits, a $58,000 increase in occupancy and equipment expense, a $44,000 increase in franchise taxes, partially offset by a $30,000 decrease in other noninterest expense. The increase in salaries and employee benefits was due to increased director and committee fees due to a recent change in the director fee structure, increased compensation and payroll taxes due to staff additions and merit increases, higher healthcare costs due to an increase in premiums and staffing levels compared to the prior year period, and higher pension costs due to planned retirements. These increases were partially offset by a decrease in disability insurance, education and training, and post-retirement benefit costs. The increase in occupancy and equipment expense was due to increased depreciation, data processing expense and ATM network expenses partially offset by lower building repairs and maintenance and non-capital furniture and fixture costs. The increase in franchise taxes was due to the exclusion of the tax credit for the state supervisory exam fee that had previously been recorded in other noninterest expense in the prior year period. The decrease in other noninterest expense was due to a decrease in the loss on sale of foreclosed assets, legal costs, supervisory exam fees as discussed above and lower appraisal expense compared to the prior year. These decreased expenses were partially offset with an increase in stationary, printing and supplies expense, audit related expense, and special services compared to the prior year.

Federal Income Taxes

Federal income tax expense totaled $480,000 for the six month period ended June 30, 2016, an increase of $331,000 compared to $149,000 for six month period ended June 30, 2015. The increase was primarily due to a $1.0 million increase in pretax income compared to the prior year period, and an increase in the effective tax rate. The effective tax rate in the current year period was 25.8% compared to 17.9% for the prior year period. The effective rate is below the statutory rate of 34% due to certain income items that are not subject to tax.

49 

Wayne Savings Bancshares, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations

Forward-Looking Statements

This document contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and similar expressions. These forward-looking statements include: statements of goals, intentions and expectations, statements regarding prospects and business strategy, statements regarding asset quality and market risk, and estimates of future costs, benefits and results.

These forward-looking statements are subject to significant risks, assumptions and uncertainties, including, among other things, the following: (1) general economic conditions, (2) competitive pressure among financial services companies, (3) changes in interest rates, (4) deposit flows, (5) loan demand, (6) changes in legislation or regulation, (7) changes in accounting principles, policies and guidelines, (8) litigation liabilities, including costs, expenses, settlements and judgments, and (9) other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. We have no obligation to update or revise any forward-looking statements to reflect any changed assumptions, any unanticipated events or any changes in the future.

ITEM 3          Quantitative and Qualitative Disclosures About Market Risk

Management believes there has been no material change in the Company’s market risk since the Company’s Form 10-K was filed with the Securities and Exchange Commission for the year ended December 31, 2015.

ITEM 4          Controls and Procedures

(a)          Evaluation of disclosure controls and procedures.

Under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and Chief Financial Officer, the Company evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective in timely alerting them to the material information relating to the Company (or our consolidated subsidiaries) required to be included in the Company’s periodic SEC filings.

(b)          Changes in internal controls.

There has been no change made in the Company’s internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

50 

Wayne Savings Bancshares, Inc.
PART II

ITEM 1. Legal Proceedings

Not applicable.

ITEM 1A. Risk Factors

There have been no material changes in the risk factors set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)	Not applicable.
(b)	Not applicable.
(c)	Not applicable.

ITEM 3. Defaults Upon Senior Securities

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

51 

Wayne Savings Bancshares, Inc.
PART II

ITEM 5. Other Information

Not applicable.

ITEM 6. Exhibits

Exhibit
Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
32	Written Statement of Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
101	Interactive financial data (XBRL)

52 

Wayne Savings Bancshares, Inc.

Signatures

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.

Date:	August 3, 2016	By:	/s/H. Stewart Fitz Gibbon III
			H. Stewart Fitz Gibbon III
			President and Chief Executive Officer
Date:	August 3, 2016	By:	/s/Myron Swartzentruber
			Myron Swartzentruber
			Senior Vice President and
			Chief Financial Officer

53 

EX-31.1

Exhibit 31.1

Pursuant to Rule 13a-14(a) and 15d-14(a)

OF THE SECURITIES AND EXCHANGE ACT OF 1934

Certification of the Chief Executive Officer

I, H. Stewart Fitz Gibbon III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Wayne Savings Bancshares, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements and other financial information included in this quarterly report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(c) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 3, 2016	/s/H. Stewart Fitz Gibbon III
Date	H. Stewart Fitz Gibbon III
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Pursuant to Rule 13a-14(a) and 15d-14(a)

OF THE SECURITIES AND EXCHANGE ACT OF 1934

Certification of the Chief financial Officer

I, Myron Swartzentruber, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Wayne Savings Bancshares, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements and other financial information included in this quarterly report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(c) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 3, 2016	/s/Myron Swartzentruber
Date	Myron Swartzentruber
	Senior Vice President and
	Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

I, H. Stewart Fitz Gibbon III, President and Chief Executive Officer, and Myron Swartzentruber, Senior Vice President and Chief Financial Officer, of Wayne Savings Bancshares, Inc. (the “Company”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) The Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2016, (the “Report”) fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 3, 2016	/s/H. Stewart Fitz Gibbon III
Date	H. Stewart Fitz Gibbon III
	President and Chief Executive Officer
August 3, 2016	/s/Myron Swartzentruber
Date	Myron Swartzentruber
	Senior Vice President and
	Chief Financial Officer

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document And Entity Information
Entity Registrant Name	WAYNE SAVINGS BANCSHARES INC /DE/
Entity Central Index Key	0001036030
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,781,839
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 8,425	$ 3,487
Interest-bearing deposits	3,642	7,669
Cash and cash equivalents	12,067	11,156
Available-for-sale securities	86,605	95,347
Held-to-maturity securities	9,159	8,307
Loans, net of allowance for loan losses of $2,776 and $2,837 at June 30, 2016 and December 31, 2015, respectively	315,144	293,121
Premises and equipment	6,659	6,663
Federal Home Loan Bank stock	4,226	4,226
Foreclosed assets held for sale, net	19	14
Accrued interest receivable	1,166	1,149
Bank-owned life insurance	9,689	9,554
Goodwill	1,719	1,719
Other assets	2,612	1,893
Prepaid federal income taxes	140	483
Total assets	449,205	433,632
Deposits
Demand	102,003	101,532
Savings and money market	139,639	132,089
Time	135,293	128,806
Total deposits	376,935	362,427
Other short-term borrowings	6,157	5,606
Federal Home Loan Bank advances	21,000	21,000
Interest payable and other liabilities	3,262	4,258
Deferred federal income taxes	593	436
Total liabilities	407,947	393,727
Commitments and Contingencies
Stockholders' Equity
Preferred stock, 500,000 shares of $.10 par value authorized; no shares issued
Common stock, $.10 par value; authorized 9,000,000 shares; 3,978,731 shares issued	398	398
Additional paid-in capital	36,026	36,017
Retained earnings	21,947	21,060
Shares acquired by ESOP	(308)	(343)
Accumulated other comprehensive income (loss)	131	(291)
Treasury stock, at cost: Common: 1,196,892 shares at June 30, 2016	(16,936)	(16,936)
Total stockholders' equity	41,258	39,905
Total liabilities and stockholders' equity	$ 449,205	$ 433,632

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 2,776	$ 2,837
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	9,000,000	9,000,000
Common stock, shares issued	3,978,731	3,978,731
Treasury stock, shares	1,196,892	1,196,892

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Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and Dividend Income
Loans	$ 3,209	$ 2,855	$ 6,378	$ 5,665
Securities	568	688	1,196	1,392
Dividends on Federal Home Loan Bank stock and other	49	45	93	89
Total interest and dividend income	3,826	3,588	7,667	7,146
Interest Expense
Deposits	447	402	868	794
Other short-term borrowings	2	3	4	5
Federal Home Loan Bank advances	69	98	139	190
Total interest expense	518	503	1,011	989
Net Interest Income	3,308	3,085	6,656	6,157
Provision (Credit) for Loan Losses	11	481	(56)	714
Net Interest Income After Provision (Credit) for Loan Losses	3,297	2,604	6,712	5,443
Noninterest Income
Gain on loan sales	73	15	121	62
Earnings on bank-owned life insurance	75	73	148	145
Service fees, charges and other operating	407	355	738	667
Total noninterest income	555	443	1,007	874
Noninterest Expense
Salaries and employee benefits	1,762	1,584	3,448	3,159
Net occupancy and equipment expense	509	491	1,036	978
Federal deposit insurance premiums	69	68	140	128
Franchise taxes	89	67	177	133
Other	521	572	1,057	1,087
Total noninterest expense	2,950	2,782	5,858	5,485
Income Before Federal Income Taxes	902	265	1,861	832
Provision for Federal Income Taxes	228	22	480	149
Net Income	674	243	1,381	683
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities	159	(932)	640	(709)
Tax (expense) benefit	(53)	317	(218)	241
Other comprehensive income (loss)	106	(615)	422	(468)
Total comprehensive income (loss)	$ 780	$ (372)	$ 1,803	$ 215
Basic and Diluted Earnings Per Share	$ 0.24	$ 0.09	$ 0.50	$ 0.25
Dividends Per Share	$ 0.09	$ 0.09	$ 0.18	$ 0.18

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net income	$ 1,381	$ 683
Items not requiring (providing) cash
Depreciation and amortization	322	288
Provision (Credit) for loan losses	(56)	714
Amortization of premiums and discounts on securities	590	673
Amortization of mortgage servicing rights	17	22
Amortization of deferred loan origination fees	(56)	(45)
Increase in value of bank-owned life insurance	(135)	(134)
Amortization expense of stock benefit plan	45	49
Provision for impairment on foreclosed assets held for sale	16	9
Loss on sale of foreclosed assets held for sale	5	77
Loss on sale of premises and equipment		2
Net gain on sale of loans	(121)	(62)
Proceeds from sale of loans in the secondary market	3,091	1,964
Origination of loans for sale in the secondary market	(2,970)	(1,902)
Deferred income taxes	(60)	18
Changes in
Accrued interest receivable	(17)	(5)
Other assets	(393)	(708)
Interest payable and other liabilities	(162)	(293)
Net cash provided by operating activities	1,497	1,350
Investing Activities
Purchase of available-for-sale securities	(3,475)	(11,391)
Purchase of held-to-maturity securities	(895)	(1,637)
Proceeds from maturities and paydowns of available-for-sale securities	12,281	12,616
Proceeds from maturities and paydowns of held-to-maturity securities	27	40
Net change in loans	(22,017)	(7,911)
Purchase of premises and equipment	(318)	(313)
Proceeds from the sale of foreclosed assets	80	102
Net cash used in investing activities	(14,317)	(8,494)
Financing Activities
Net change in deposits	14,508	4,367
Net change in other short-term borrowings	551	(230)
Proceeds from Federal Home Loan Bank advances	13,375	7,341
Repayments of Federal Home Loan Bank advances	(13,375)	(5,800)
Advances by borrowers for taxes and insurance	(834)	(941)
Dividends on common stock	(494)	(498)
Treasury stock purchases		(338)
Net cash provided in financing activities	13,731	3,901
Change in Cash and Cash Equivalents	911	(3,243)
Cash and Cash Equivalents, Beginning of period	11,156	10,783
Cash and Cash Equivalents, End of period	12,067	7,540
Supplemental Cash Flows Information
Interest paid on deposits and borrowings	1,005	990
Federal income taxes paid	150	100
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Transfers from loans to foreclosed assets held for sale	106	308
Recognition of mortgage servicing rights	45	29
Dividends payable	$ 250	$ 250

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Basis of Presentation

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1:  Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Wayne Savings Bancshares, Inc. (the “Company”) included in the Annual Report on Form 10-K for the year ended December 31, 2015 Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included. The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results which may be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2015, has been derived from the consolidated balance sheet of the Company as of that date.

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

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Principles of Consolidation

6 Months Ended

Jun. 30, 2016

Principles of Consolidation [Abstract]

Principles of Consolidation

Note 2:  Principles of Consolidation

The accompanying condensed consolidated financial statements include Wayne Savings Bancshares, Inc. and the Company’s wholly-owned subsidiary, Wayne Savings Community Bank (“Wayne Savings” or the “Bank”).

Wayne Savings has eleven full-service offices in Wayne, Holmes, Ashland, Medina and Stark counties. All significant intercompany transactions and balances have been eliminated in the consolidation.

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Securities

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Securities

Note 3:  Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses		Fair Value
	(In thousands)
Available-for-sale securities
June 30, 2016:
U.S. government agencies	$	96	$	—	$	—	$	96
Mortgage-backed securities of            government sponsored entities		69,041		893		174		69,760
Private-label collateralized mortgage            obligations		172		1		—		173
State and political subdivisions		15,880		723		27		16,576
Totals	$	85,189	$	1,617	$	201	$	86,605

	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized  Losses		Fair Value
Available-for-sale securities	(In thousands)
December 31, 2015:
U.S. government agencies	$	101	$	—	$	—	$	101
Mortgage-backed securities of            government sponsored entities		75,972		662		530		76,104
Private-label collateralized mortgage            obligations		274		3		—		277
State and political subdivisions		18,224		677		36		18,865
Totals	$	94,571	$	1,342	$	566	$	95,347

	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized  Losses		Fair Value
	(In thousands)
Held-to-maturity Securities:
June 30, 2016:
U.S. government agencies	$	78	$	—	$	—	$	78
Mortgage-backed securities of            government sponsored entities		1,028		20		—		1,048
State and political subdivisions		8,053		217		39		8,231
Totals	$	9,159	$	237	$	39	$	9,357

	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized  Losses		Fair Value
Held-to-maturity Securities:	(In thousands)
December 31, 2015:
U.S. government agencies	$	82	$	—	$	—	$	82
Mortgage-backed securities of            government sponsored entities		1,052		5		—		1,057
State and political subdivisions		7,173		29		136		7,066
Totals	$	8,307	$	34	$	136	$	8,205

Amortized cost and fair value of available-for-sale securities and held-to-maturity securities at June 30, 2016 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
One to five years	$	6,133	$	6,420	$	1,408	$	1,432
Five to ten years		3,423		3,600		3,344		3,436
After ten years		6,420		6,652		3,379		3,441
		15,976		16,672		8,131		8,309
Mortgage-backed securities of       government sponsored entities		69,041		69,760		1,028		1,048
Private-label collateralized mortgage       obligations		172		173		—		—
Totals	$	85,189	$	86,605	$	9,159	$	9,357

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $53.3 million at June 30, 2016, compared to $55.3 million at December 31, 2015.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2016 and December 31, 2015, was $21.0 million and $53.8 million, which represented approximately 22% and 52%, respectively, of the Company’s total aggregate fair value of the available-for-sale and held-to-maturity investment portfolios. These decreases resulted primarily from changes in market interest rates.

Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the decreases in fair value for these securities are temporary at June 30, 2016.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The following table shows the gross unrealized losses and fair value of the Company’s temporarily impaired investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. 

	June 30, 2016
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized  Losses
	(In thousands)
Mortgage-backed securities of       government sponsored entities	$	9,063	$	80	$	11,023	$	94	$	20,086	$	174
State and political subdivisions		—		—		959		66		959		66
Total temporarily impaired securities	$	9,063	$	80	$	11,982	$	160	$	21,045	$	240

	December 31, 2015
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized  Losses		Fair Value		Unrealized  Losses
	(In thousands)
Mortgage-backed securities of       government sponsored entities	$	32,930	$	269	$	14,560	$	261	$	47,490	$	530
State and political subdivisions		3,756		50		2,515		122		6,271		172
Total temporarily impaired securities	$	36,686	$	319	$	17,075	$	383	$	53,761	$	702

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Credit Quality of Loans and the Allowance for Loan Losses

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Credit Quality of Loans and the Allowance for Loan Losses

Note 4:     Credit Quality of Loans and the Allowance for Loan Losses

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past due status is determined based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current for a period of six months and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the collectibility of a loan balance is in question. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated 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 nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be 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.

A loan is considered impaired when, based on current information and events, it is probable that the Company 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. Impairment is measured on a loan-by-loan basis for commercial and construction loans by using 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 balance homogenous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

The risk characteristics of each portfolio segment are as follows:

Residential Real Estate Loans

For residential mortgage loans that are secured by one-to-four family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to-four family residences. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

All Other Mortgage Loans

All other mortgage loans consist of residential construction loans, nonresidential real estate loans, land loans and multi-family real estate loans.

Residential construction loan proceeds are disbursed in increments as construction progresses and as inspections warrant. Construction loans are typically structured as permanent one-to-four family loans originated by the Company with a 12-month construction phase. Accordingly, upon completion of the construction phase, there is no change in interest rate or term to maturity of the original construction loan, nor is a new permanent loan originated. These loans are generally owner occupied and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded.

Nonresidential real estate loans are negotiated on a case-by-case basis. Loans secured by nonresidential real estate generally involve a greater degree of risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by nonresidential real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired.

The Company also originates a limited number of land loans secured by individual improved and unimproved lots for future residential construction. In addition, the Company originates loans to commercial customers with land held as the collateral.

Multi-family real estate loans generally involve a greater degree of credit risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by multi-family real estate is typically dependent upon the successful operation of the related real estate property. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired.

Commercial Business Loans

Commercial business loans carry a higher degree of risk than one-to-four family residential loans. Such lending typically involves large loan balances concentrated in a single borrower or groups of related borrowers for rental or business properties. In addition, the payment experience on loans secured by income-producing properties is typically dependent on the success of the operation of the related project and thus is typically affected by adverse conditions in the real estate market and in the economy. The Company originates commercial loans generally in the $50,000 to $1,000,000 range with the majority of these loans being under $500,000. Commercial loans are generally underwritten based on the borrower’s ability to pay and assets such as buildings, land and equipment are taken as additional loan collateral. Each loan is evaluated for a level of risk and assigned a rating from “1” (the highest quality rating) to “7” (the lowest quality rating).

Consumer Loans

Consumer loans entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly, such as automobiles, mobile homes, boats, and recreational vehicles. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. In particular, amounts realizable on the sale of repossessed automobiles may be significantly reduced based upon the condition of the automobiles and the lack of demand for used automobiles.

The following presents by portfolio segment the activity in the allowance for loan losses for the three and six months ended June 30, 2016 and 2015:

Three months ended June 30, 2016	One-to-four family residential		All other mortgage loans			Commercial business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,279	$	1,207		$	281		$	4		$	—	$	2,771
Provision charged           to expense		303		(245	)		(47	)		—			—		11
Losses charged off		—		(5	)		—			(1	)		—		(6	)
Recoveries		—		—			—			—			—		—
Ending balance	$	1,582	$	957		$	234		$	3		$	—	$	2,776

Three months ended June 30, 2015	One-to-four family residential			All other mortgage loans		Commercial business loans			Consumer loans		Unallocated		Total
	(In thousands)
Beginning balance	$	910		$	1,055	$	380		$	4	$	—	$	2,349
Provision charged           to expense		367			109		(34	)		1		38		481
Losses charged off		(205	)		—		—			—		—		(205	)
Recoveries		43			—		—			—		—		43
Ending balance	$	1,115		$	1,164	$	346		$	5	$	38	$	2,668

Six months ended June 30, 2016	One-to-four family residential		All other mortgage loans			Commercial business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,346	$	1,210		$	279		$	2		$	—	$	2,837
Provision (Credit)           charged to           expense		235		(248	)		(45	)		2			—		(56	)
Losses charged off		—		(5	)		—			(1	)		—		(6	)
Recoveries		1		—			—			—			—		1
Ending balance	$	1,582	$	957		$	234		$	3		$	—	$	2,776

Six months ended June 30, 2015	One-to-four family residential			All other mortgage loans		Commercial business loans		Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,533		$	885	$	343	$	8		$	—	$	2,769
Provision charged           to expense		397			279		3		(3	)		38		714
Losses charged off		(859	)		—		—		—			—		(859	)
Recoveries		44			—		—		—			—		44
Ending balance	$	1,115		$	1,164	$	346	$	5		$	38	$	2,668

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on the portfolio segment and impairment method as of June 30, 2016 and December 31, 2015:

June 30, 2016	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for           impairment	$	447	$	57	$	53	$	—	$	557
Collectively evaluated for           impairment		1,135		900		181		3		2,219
Total allowance for loan losses	$	1,582	$	957	$	234	$	3	$	2,776
Loan Balances:
Ending balance:
Individually evaluated for           impairment	$	1,661	$	1,273	$	53	$	—	$	2,987
Collectively evaluated for           impairment		183,327		118,783		20,523		2,003		324,636
Total balance	$	184,988	$	120,056	$	20,576	$	2,003	$	327,623

December 31, 2015	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
Allowance Balances:		(In thousands)
Ending balance:
Individually evaluated for           impairment	$	506	$	13	$	33	$	—	$	552
Collectively evaluated for           impairment		840		1,197		246		2		2,285
Total allowance for loan losses	$	1,346	$	1,210	$	279	$	2	$	2,837
Loan Balances:
Ending balance:
Individually evaluated for           impairment	$	2,789	$	1,061	$	33	$	—	$	3,883
Collectively evaluated for           impairment		176,943		104,060		17,998		1,904		300,905
Total balance	$	179,732	$	105,121	$	18,031	$	1,904	$	304,788

Total loans in the above tables do not include deferred loan origination fees of $778 and $765 or loans in process of $8.9 million and $8.1 million, respectively, for June 30, 2016 and December 31, 2015.

The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of June 30, 2016 and December 31, 2015:

June 30, 2016	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	180,215	$	117,741	$	20,024	$	2,003
Special Mention (Risk 5)		284		136		499		—
Substandard (Risk 6)		4,489		2,179		53		—
Total	$	184,988	$	120,056	$	20,576	$	2,003

December 31, 2015	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	172,617	$	100,961	$	17,893	$	1,904
Special Mention (Risk 5)		1,406		1,881		105		—
Substandard (Risk 6)		5,709		2,279		33		—
Total	$	179,732	$	105,121	$	18,031	$	1,904

* Ratings are generally assigned to consumer and residential mortgage loans on a “pass” or “fail” basis, where “fail” results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank’s loan policy that produces a risk rating as described below.

Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds.

Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive.

Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization.

Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies.

Risk 5 or “Special Mention,” also known as “watch,” has potential weakness that deserves Management’s close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral.

Risk 6 or “Substandard” loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower’s credit strength with limited credit access and all nonperforming loans.

Risk 7 or “Doubtful” loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge- off. This category is considered to be temporary until a charge-off amount can be reasonably determined.

The following tables present the Bank’s loan portfolio aging analysis for June 30, 2016 and December 31, 2015:

June 30, 2016	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
	(In thousands)
One-to-four family       residential loans	$	298	$	107	$	518	$	923	$	184,065	$	184,988	$	—
All other mortgage       loans		134		—		318		452		119,604		120,056		—
Commercial       business loans		—		4		23		27		20,549		20,576		—
Consumer loans		—		—		—		—		2,003		2,003		—
Total	$	432	$	111	$	859	$	1,402	$	326,221	$	327,623	$	—

December 31, 2015	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
	(In thousands)
One-to-four family       residential loans	$	516	$	329	$	903	$	1,748	$	177,984	$	179,732	$	—
All other mortgage       loans		298		—		209		507		104,614		105,121		—
Commercial       business loans		68		—		—		68		17,963		18,031		—
Consumer loans		—		—		—		—		1,904		1,904		—
Total	$	882	$	329	$	1,112	$	2,323	$	302,465	$	304,788	$	—

Nonaccrual loans were comprised of the following at:

Nonaccrual loans	June 30, 2016		December 31, 2015
	(In thousands)
One-to-four family residential loans	$	1,546	$	1,733
Nonresidential real estate loans		318		208
All other mortgage loans		—		—
Commercial business loans		27		—
Consumer loans		—		—
Total	$	1,891	$	1,941

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Bank 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 but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Information with respect to the Company’s impaired loans at June 30, 2016 and December 31, 2015 in combination with activity for the three and six months ended June 30, 2016 and 2015 is presented below:

	As of June 30, 2016						Three months ended June 30, 2016				Six months ended June 30, 2016
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
							(In thousands)
Loans without a      specific valuation      allowance
One-to-four family      residential loans	$	894	$	908	$	—	$	900	$	10	$	1,008	$	20
All other mortgage      loans		1,029		1,029		—		1,034		17		689		35
Commercial business      loans		—		—		—		—		—		—		—
Loans with a      specific valuation      allowance
One-to-four family      residential loans		767		767		447		772		—		1,036		—
All other mortgage      loans		244		244		57		213		—		496		—
Commercial business      loans		53		53		53		41		1		38		1
Total:
One-to-four family      residential loans	$	1,661	$	1,675	$	447	$	1,672	$	10	$	2,044	$	20
All other mortgage      loans		1,273		1,273		57		1,247		17		1,185		35
Commercial business      loans		53		53		53		41		1		38		1
	$	2,987	$	3,001	$	557	$	2,960	$	28	$	3,267	$	56

	As of December 31, 2015						Three months ended June 30, 2015				Six months ended June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a      specific valuation      allowance
One-to-four family      residential loans	$	1,224	$	1,238	$	—	$	1,794	$	13	$	1,565	$	25
All other mortgage      loans		—		—		—		1,063		18		709		36
Commercial business      loans		—		—		—		—		—		—		—
Loans with a      specific valuation      allowance
One-to-four family      residential loans		1,565		1,875		506		1,010		12		1,397		25
All other mortgage      loans		1,061		1,061		13		83		—		61		—
Commercial business      loans		33		33		33		125		1		131		1
Total:
One-to-four family      residential loans	$	2,789	$	3,113	$	506	$	2,804	$	25	$	2,962	$	50
All other mortgage      loans		1,061		1,061		13		1,146		18		770		36
Commercial business      loans		33		33		33		125		1		131		1
	$	3,883	$	4,207	$	552	$	4,075	$	44	$	3,863	$	87

The interest income recognized in the above tables reflects interest income recognized and is not materially different from the cash basis method.

All TDR classifications are due to concessions being granted to borrowers experiencing financial difficulties. Concessions to borrowers can include exceptions to loan policy including high loan-to-value ratios, no private mortgage insurance (“PMI”) and high debt-to-income ratios, as well as term and rate exceptions. There were $412,000 of TDR classifications that occurred in the 2016 year to date period and included the renewal of an interest only loan as the customer repayments had not been in accordance with the original loan terms.

The remaining loans are to the same borrower and are on a nonaccrual status. There were no TDR classifications that occurred during the 2015 quarter-to-date or year-to-date period. Each TDR has been individually evaluated for impairment with the appropriate specific valuation allowance included in the allowance for loan losses calculation.There were no TDR classifications which defaulted during the three and six month periods ended June 30, 2016 and 2015. The Company considers TDRs that become 90 days or more past due under modified terms as subsequently defaulted.

	Quarter-to-Date					Year-to-Date
Troubled Debt Restructurings	Number of loans	Pre- modification Recorded Principal Balance		Post- modification Recorded Principal Balance		Number of loans		Pre- modification Recorded Principal Balance		Post- modification Recorded Principal Balance
		(dollars in thousands)						(dollars in thousands)
June 30, 2016
One-to-four family      residential loans		$	—	$	—		8	$	412	$	412

Foreclosed assets held for sale include those properties that the Bank has obtained legal title to, through a formal foreclosure process, or the borrower conveying all interest in the property to the Bank through the completion of a deed in lieu of foreclosure, or similar legal agreement. The following table presents the balance of mortgage loans collateralized by residential real estate properties held as foreclosed assets at June 30, 2016 and December 31, 2015.

	June 30, 2016		December 31, 2015
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	19	$	14

Banks foreclose on certain properties in the normal course of business when it is more probable than not that the loan balance will not be recovered through scheduled payments. Foreclosure is usually a last resort and begins after all other collection efforts have been exhausted. The following table presents the balance of those mortgage loans collateralized by residential real estate properties that are in the formal process of foreclosure at June 30, 2016 and December 31, 2015.

	June 30, 2016		December 31, 2015
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	104	$	171

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Goodwill

6 Months Ended

Jun. 30, 2016

Goodwill [Abstract]

Goodwill

Note 5:     Goodwill

The following table presents the balance of goodwill at June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
	(In thousands)
Goodwill	$	1,719	$	1,719
Total	$	1,719	$	1,719

The Company is required to annually test goodwill for impairment or more frequently if impairment indicators exist. The Company’s testing of goodwill at November 30, 2015 indicated there was no impairment in the carrying value of the related asset.

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Repurchase Agreements

6 Months Ended

Jun. 30, 2016

Disclosure of Repurchase Agreements [Abstract]

Repurchase Agreements

Note 6:     Repurchase Agreements

Repurchase agreements are offered by the Bank to commercial business customers to provide them with an opportunity to earn a return on their excess cash balances. These repurchase agreements are considered secured borrowings and are reported in other short-term borrowings. On a daily basis the Bank transfers securities to these customers in exchange for their cash and subsequently agrees to repurchase those same securities the next business day. In the event the Bank is unable to repurchase the securities from the customer, the customer will then have a claim against those securities.

The following tables present the contractual maturity of the repurchase agreements, and the fair value and type of securities pledged as collateral in exchange for these short-term borrowings at June 30, 2016 and December 31, 2015.

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 - 90  Days		Greater Than 90 Days				Total
June 30, 2016	(In thousands)
Repurchase Agreements
Mortgage-backed securities            of government            sponsored entities	$	6,157	$	—	$	—		$	—	$		6,157
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings										$		6,157

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30  Days		30 - 90  Days		Greater Than  90 Days				Total
December 31, 2015	(In thousands)
Repurchase Agreements
Mortgage-backed securities            of government            sponsored entities	$	5,606	$	—	$	—		$	—	$		5,606
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings										$		5,606

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 7:     Earnings Per Share

Basic earnings per common share is computed based upon the weighted-average number of common shares outstanding during the period, less shares in the Company’s Employee Stock Ownership Plan (“ESOP”) that are unallocated and not committed to be released. There were no dilutive shares at June 30, 2016 or June 30, 2015.

The computations are as follows:

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Net income (in thousands)	$	674	$	243	$	1,381	$	683
Weighted-average common shares outstanding		2,747,567		2,761,678		2,747,567		2,763,453
Net income per share	$	0.24	$	0.09	$	0.50	$	0.25

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Regulatory Matters

6 Months Ended

Jun. 30, 2016

Regulatory Matters [Abstract]

Regulatory Matters

Note 8:     Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory–and possibly additional discretionary–actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

The Bank must give notice to, or under certain conditions specified by regulation, apply to, the Federal Reserve Bank of Cleveland prior to declaring a dividend to the Company. Under existing regulatory guidance, a dividend is generally permissible without regulatory approval if the institution is considered to be “well capitalized” and the dividend does not exceed current year-to-date net income plus the change in retained earnings for the previous two calendar years.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of Tier I capital to average assets, of Tier 1 Common equity capital to risk-weighted assets, of Tier 1 capital to risk-weighted assets, and of Total Risk-based capital to risk-weighted assets, all as defined in the regulations. Management believes, as of June 30, 2016, that the Bank met all capital adequacy requirements to which it is subject.

As of June 30, 2016, based on the computations for the call report the Bank is classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since June 30, 2016, that management believes have changed the Bank’s capital classification.

The Bank’s actual capital amounts and ratios as of June 30, 2016 and December 31, 2015 are presented in the following table.

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized  Under Prompt Corrective Action  Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of June 30, 2016
Tier I Capital to average assets	$	38,670		8.7%	$	17,774		4.0%	$	22,218		5.0%
Tier 1 Common equity capital to risk-       weighted assets		38,670		12.9%		13,539		4.5%		19,556		6.5%
Tier I Capital to risk-weighted assets		38,670		12.9%		18,052		6.0%		24,069		8.0%
Total Risk-based capital to risk-       weighted assets		41,446		13.8%		24,069		8.0%		30,087		10.0%
As of December 31, 2015
Tier I Capital to average assets	$	37,524		8.8%	$	17,092		4.0%	$	21,365		5.0%
Tier 1 Common equity capital to risk-      weighted assets		37,524		13.4%		12,645		4.5%		18,265		6.5%
Tier I Capital to risk-weighted assets		37,524		13.4%		16,860		6.0%		22,480		8.0%
Total Risk-based capital to risk-       weighted assets		40,361		14.4%		22,480		8.0%		28,099		10.0%

Effective January 1, 2015, new regulatory capital requirements commonly referred to as “Basel III” were implemented and are reflected in the capital table above. Management opted out of the accumulated other comprehensive income treatment under the new requirements, and as such unrealized gains and losses from available-for-sale securities will continue to be excluded from Bank regulatory capital.

Implementation of the deductions and other adjustments to Common Equity Tier 1 (CET1) began on January 1, 2015, and will phase in over a four-year period (beginning at 40% on January 1, 2015, and an additional 20% per year thereafter).  Under the new rule, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of CET1 capital above its minimum risk-based capital requirements.  The implementation of the capital conservation buffer begins on January 1, 2016, at the 0.625% level and will phase in over a four-year period (increasing by that amount on each subsequent January 1 until it reaches 2.5% on January 1, 2019).

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2016

Stockholders' Equity Note [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 9:     Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows:

	Gross Unrealized Gains on  Available-for- Sale Securities		Net Unrealized Loss  for Unfunded  Status of Split- Dollar Life  Insurance Plan  Liability (tax-free)			Gross Unrealized  Loss for  Unfunded Status  of Defined  Benefit Plan			Tax Effect			Total Accumulated  Other Comprehensive  Income (Loss)
	(In thousands)
June 30, 2016	$	1,416	$	(89	)	$	(1,083	)	$	(113	)	$	131
December 31, 2015	$	777	$	(89	)	$	(1,083	)	$	104		$	(291	)

There were no amounts reclassified out of accumulated other comprehensive income (loss) during the

six months ended June 30, 2016 or 2015.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 10:     Fair Value Measurements

Fair value 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 measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Recurring Measurements

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the Company’s consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy.

The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and December 31, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
U.S. government agencies	$	96	$	—	$	96	$	—
Mortgage-backed securities of            government sponsored entities		69,760		—		69,760		—
Private-label collateralized mortgage            obligations		173		—		173		—
State and political subdivisions		16,576		—		16,576		—
			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets  for Identical  Assets (Level 1)		Significant Other  Observable  Inputs (Level 2)		Significant  Unobservable  Inputs (Level 3)
	(In thousands)
December 31, 2015
U.S. government agencies	$	101	$	—	$	101	$	—
Mortgage-backed securities of            government sponsored entities		76,104		—		76,104		—
Private-label collateralized mortgage            obligations		277		—		277		—
State and political subdivisions		18,865		—		18,865		—

Nonrecurring Measurements

Certain assets may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

Collateral-dependent Impaired Loans, Net of ALLL

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the office of the Chief Financial Officer. Appraisals are reviewed for accuracy and consistency by the Credit Analyst. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the office of the Chief Financial Officer by comparison to historical results.

Foreclosed Assets Held for Sale

Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of real estate is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy.

Appraisals of real estate are obtained when the real estate is acquired and subsequently as deemed necessary by the Chief Financial Officer. Appraisals are reviewed internally for accuracy and consistency in accordance with regulatory requirements. Appraisers are selected from the list of approved appraisers maintained by management.

The following table presents the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and December 31, 2015.

			Fair Value Measurement Using
	Fair Value		Quoted Prices in  Active Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Collateral-dependent            impaired loans	$	26	$	—	$	—	$	26
Foreclosed assets		19		—		—		19
December 31, 2015
Collateral-dependent            impaired loans	$	292	$	—	$	—	$	292
Foreclosed assets		5		—		—		5

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements in thousands.

	Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
June 30, 2016
Collateral-dependent           impaired loans	$	26	Historical proceeds from  prior sales	Selling Costs	41%
Foreclosed assets		19	Historical proceeds from  prior sales	Selling Costs	N/A
December 31, 2015
Collateral-dependent           impaired loans	$	292	Market comparable properties, less delinquent  real estate taxes	N/A	N/A
Foreclosed assets		5	Agreed upon selling price	Selling Costs	10%

There were no changes in the inputs or methodologies used to determine fair value at June 30, 2016 as compared to December 31, 2015.

The following table presents estimated fair values of the Company’s financial instruments not carried at fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.

			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant  Unobservable Inputs  (Level 3)
	(In thousands)
June 30, 2016
Financial assets
Cash and cash equivalents	$	12,067	$	12,067	$	—	$	—
Held-to-maturity            securities		9,159		—		9,357		—
Loans, net of allowance            for loan losses		315,144		—		—		332,540
Federal Home Loan Bank            stock		4,226		—		4,226		—
Interest receivable		1,166		—		1,166		—
Financial liabilities
Deposits		376,935		42,906		321,747		—
Other short-term            borrowings		6,157		—		6,157		—
Federal Home Loan Bank            advances		21,000		—		21,274		—
Advances from borrowers            for taxes and insurance		406		—		406		—
Interest payable		46		—		46		—

			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant  Unobservable  Inputs (Level 3)
	(In thousands)
December 31, 2015
Financial assets
Cash and cash equivalents	$	11,156	$	11,156	$	—	$	—
Held-to-maturity            securities		8,307		—		8,205		—
Loans, net of allowance            for loan losses		293,121		—		—		302,595
Federal Home Loan Bank            stock		4,226		—		4,226		—
Interest receivable		1,149		—		1,149		—
Financial liabilities
Deposits		362,427		42,630		295,796		—
Other short-term            borrowings		5,606		—		5,606		—
Federal Home Loan Bank            advances		21,000		—		20,978		—
Advances from borrowers            for taxes and insurance		1,240		—		1,240		—
Interest payable		40		—		40		—

The following methods and assumptions were used to estimate the fair value of each class of financial instruments.

Cash and Cash Equivalents, Interest Receivable and Federal Home Loan Bank Stock

The carrying amount approximates fair value.

Held-to-maturity Securities

The fair value of held-to-maturity securities was estimated by using pricing models that contain market pricing and information, quoted prices of securities with similar characteristics or discounted cash flows that use credit-adjusted discount rates.

Loans

The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations.

Deposits

Deposits include savings accounts, checking accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.

Federal Home Loan Bank Advances

Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt.

Commitments to Originate Loans, Letters of Credit and Lines of Credit

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2016 and December 31, 2015.

Interest Payable, Other Short-Term Borrowings and Advances From Borrowers for Taxes and Insurance

The carrying amount approximates fair value.

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Recent Accounting Developments

6 Months Ended

Jun. 30, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Developments

Note 11:     Recent Accounting Developments

FASB ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, was issued in August 2014. The amendments in this update provide guidance in Generally Accepted Accounting Principles (GAAP) about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, was issued in January, 2015. This update eliminates from Generally Accepted Accounting Principles the concept of extraordinary items, which required that an entity separately classify, present and disclose extraordinary events and transactions. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction is extraordinary. It will also alleviate uncertainty for preparers, auditors, and regulators because auditors and regulators will no longer need to evaluate whether the preparer treated an unusual item appropriately. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, was issued in April, 2015. The amendments in this Update require that debt issuance costs related to a recognized debit liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued, and the amendments in this Update should be applied retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-04, Compensation – Retirement Benefits (Subtopic 715), Practical Expedient for the Measurement of an Employer’s Defined Benefit Obligation and Plan Assets, was issued in April, 2015. A reporting entity with a fiscal year end that does not coincide with a month end may incur more costs than other entities when measuring the fair value of plan assets of a defined benefit pension or other post-retirement benefit. For an entity with a fiscal year end that does not coincide with a month end, the amendments in this Update provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month end that is closest to the entity’s fiscal year end and apply that practical expedient consistently from year to year. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. Early application is permitted, and the amendments in this Update should be applied retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-10, Technical Corrections and Improvements was issued in June, 2015. The amendments in this Update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to entities. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this update. The adoption of the amendments that required transition guidance did not have a material impact on the Company’s consolidated financial statements. The adoption of the other amendments in this update did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-14, Revenue from Contracts with Customers, (Topic 606), Deferral of the effective date, was issued in August 2015. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 was originally effective for fiscal years and interim periods within those years beginning after December 15, 2016. In August 2015, the FASB issued 2015-14, which deferred the effective date of ASU 2014-09 by one year for periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date and requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the potential impact on its consolidated financial statements and related notes, as well as the available transition methods.

FASB ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements was issued in August, 2015. The amendments in this Update address line-of-credit arrangements. In that, given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the terms of the line-of-credit arrangement. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued, and the amendments in this Update should be applied retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments was issued in September 2015. The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-01, Financial Instruments–Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities was issued in January 2016. The amendments in this Update make targeted improvements to generally accepted accounting principles, and address certain aspects of recognition, measurement, presentation, and disclosure of financial statements. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Except as specifically stated, early adoption of the amendments in this Update are not permitted. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-02, Leases (Topic 842), Section A- Leases, Amendments to the FASB Accounting Standards Codification, Section B – Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification, and Section C – Background Information and Basis for Conclusions was issued in February 2016. The amendments in this Update are designed to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this Update include disclosures that are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-04, Liabilities-Extinguishments of Liabilities (Subtopic 405-20), was issued in March 2016. The amendments in this Update apply to entities that offer certain prepaid stored-value products, including prepaid gift cards, prepaid telecommunication cards, and travelers checks. The amendments in this Update contain specific guidance for the derecognition of pre-paid stored value product liabilities and are an improvement to GAAP because they specify how pre-paid stored-value product liabilities with the Update’s scope should be derecognized. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier application is permitted, including adoption in an interim period. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-10, Revenue from Contracts with Customers, (Topic 606), Identifying Performance Obligations and Licensing was issued in April 2016. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or 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. The amendments in this Update clarify the following two aspects in Topic 606, identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients, was issued in May 2016. The amendments in this update do not change the core principle of the guidance in Topic 606, but rather clarify certain narrow aspects. The amendments in this update clarify the objective of collectibility and determine whether a contract is valid based on if the customer has the ability and intention to pay, and also to clarify when revenue would be recognized for a contract that fails collectibility. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

FASB ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, was issued in June 2016. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal year. Early adoption of the amendments in this Update are allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of this Update. The Company is studying the implications of this update, including following evolving regulatory and industry guidance, and gathering additional detailed historical data. The effect of this Update on the Company’s financial statements is not known at this time.

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Securities (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Available for Sale Securities

	Amortized Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses		Fair Value
	(In thousands)
Available-for-sale securities
June 30, 2016:
U.S. government agencies	$	96	$	—	$	—	$	96
Mortgage-backed securities of            government sponsored entities		69,041		893		174		69,760
Private-label collateralized mortgage            obligations		172		1		—		173
State and political subdivisions		15,880		723		27		16,576
Totals	$	85,189	$	1,617	$	201	$	86,605

	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized  Losses		Fair Value
Available-for-sale securities	(In thousands)
December 31, 2015:
U.S. government agencies	$	101	$	—	$	—	$	101
Mortgage-backed securities of            government sponsored entities		75,972		662		530		76,104
Private-label collateralized mortgage            obligations		274		3		—		277
State and political subdivisions		18,224		677		36		18,865
Totals	$	94,571	$	1,342	$	566	$	95,347

Schedule of Held To Maturity Securities

	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized  Losses		Fair Value
	(In thousands)
Held-to-maturity Securities:
June 30, 2016:
U.S. government agencies	$	78	$	—	$	—	$	78
Mortgage-backed securities of            government sponsored entities		1,028		20		—		1,048
State and political subdivisions		8,053		217		39		8,231
Totals	$	9,159	$	237	$	39	$	9,357

	Amortized Cost		Gross Unrealized  Gains		Gross Unrealized  Losses		Fair Value
Held-to-maturity Securities:	(In thousands)
December 31, 2015:
U.S. government agencies	$	82	$	—	$	—	$	82
Mortgage-backed securities of            government sponsored entities		1,052		5		—		1,057
State and political subdivisions		7,173		29		136		7,066
Totals	$	8,307	$	34	$	136	$	8,205

Schedule of Expected Maturities of Available for Sale and Held To Maturity Securities

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
One to five years	$	6,133	$	6,420	$	1,408	$	1,432
Five to ten years		3,423		3,600		3,344		3,436
After ten years		6,420		6,652		3,379		3,441
		15,976		16,672		8,131		8,309
Mortgage-backed securities of       government sponsored entities		69,041		69,760		1,028		1,048
Private-label collateralized mortgage       obligations		172		173		—		—
Totals	$	85,189	$	86,605	$	9,159	$	9,357

Schedule of Securities in a Gross Unrealized Loss Position

	June 30, 2016
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized  Losses
	(In thousands)
Mortgage-backed securities of       government sponsored entities	$	9,063	$	80	$	11,023	$	94	$	20,086	$	174
State and political subdivisions		—		—		959		66		959		66
Total temporarily impaired securities	$	9,063	$	80	$	11,982	$	160	$	21,045	$	240

	December 31, 2015
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized  Losses		Fair Value		Unrealized  Losses
	(In thousands)
Mortgage-backed securities of       government sponsored entities	$	32,930	$	269	$	14,560	$	261	$	47,490	$	530
State and political subdivisions		3,756		50		2,515		122		6,271		172
Total temporarily impaired securities	$	36,686	$	319	$	17,075	$	383	$	53,761	$	702

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Credit Quality of Loans and the Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Schedule of Allowance for Loan Losses

Three months ended  June 30, 2016	One-to-four  family residential		All other mortgage  loans			Commercial  business  loans			Consumer  loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,279	$	1,207		$	281		$	4		$	—	$	2,771
Provision charged            to expense		303		(245	)		(47	)		—			—		11
Losses charged off		—		(5	)		—			(1	)		—		(6	)
Recoveries		—		—			—			—			—		—
Ending balance	$	1,582	$	957		$	234		$	3		$	—	$	2,776

Three months ended  June 30, 2015	One-to-four family residential			All other  mortgage  loans		Commercial  business  loans			Consumer  loans		Unallocated		Total
	(In thousands)
Beginning balance	$	910		$	1,055	$	380		$	4	$	—	$	2,349
Provision charged            to expense		367			109		(34	)		1		38		481
Losses charged off		(205	)		—		—			—		—		(205	)
Recoveries		43			—		—			—		—		43
Ending balance	$	1,115		$	1,164	$	346		$	5	$	38	$	2,668

Six months ended  June 30, 2016	One-to-four family  residential		All other  mortgage  loans			Commercial  business  loans			Consumer  loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,346	$	1,210		$	279		$	2		$	—	$	2,837
Provision (Credit)            charged to            expense		235		(248	)		(45	)		2			—		(56	)
Losses charged off		—		(5	)		—			(1	)		—		(6	)
Recoveries		1		—			—			—			—		1
Ending balance	$	1,582	$	957		$	234		$	3		$	—	$	2,776

Six months ended June 30, 2015	One-to-four family residential			All other mortgage  loans		Commercial business  loans		Consumer  loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,533		$	885	$	343	$	8		$	—	$	2,769
Provision charged            to expense		397			279		3		(3	)		38		714
Losses charged off		(859	)		—		—		—			—		(859	)
Recoveries		44			—		—		—			—		44
Ending balance	$	1,115		$	1,164	$	346	$	5		$	38	$	2,668

June 30, 2016	One-to-four family residential		All other  mortgage loans		Commercial business loans		Consumer  loans		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for            impairment	$	447	$	57	$	53	$	—	$	557
Collectively evaluated for            impairment		1,135		900		181		3		2,219
Total allowance for loan losses	$	1,582	$	957	$	234	$	3	$	2,776
Loan Balances:
Ending balance:
Individually evaluated for            impairment	$	1,661	$	1,273	$	53	$	—	$	2,987
Collectively evaluated for            impairment		183,327		118,783		20,523		2,003		324,636
Total balance	$	184,988	$	120,056	$	20,576	$	2,003	$	327,623

December 31, 2015	One-to-four family residential		All other mortgage  loans		Commercial  business loans		Consumer  loans		Total
Allowance Balances:		(In thousands)
Ending balance:
Individually evaluated for            impairment	$	506	$	13	$	33	$	—	$	552
Collectively evaluated for            impairment		840		1,197		246		2		2,285
Total allowance for loan losses	$	1,346	$	1,210	$	279	$	2	$	2,837
Loan Balances:
Ending balance:
Individually evaluated for            impairment	$	2,789	$	1,061	$	33	$	—	$	3,883
Collectively evaluated for            impairment		176,943		104,060		17,998		1,904		300,905
Total balance	$	179,732	$	105,121	$	18,031	$	1,904	$	304,788

Schedule of Loans Receivable by Credit Risk Profile

June 30, 2016	One-to-four  family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	180,215	$	117,741	$	20,024	$	2,003
Special Mention (Risk 5)		284		136		499		—
Substandard (Risk 6)		4,489		2,179		53		—
Total	$	184,988	$	120,056	$	20,576	$	2,003

December 31, 2015	One-to-four family residential		All other mortgage loans		Commercial  business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	172,617	$	100,961	$	17,893	$	1,904
Special Mention (Risk 5)		1,406		1,881		105		—
Substandard (Risk 6)		5,709		2,279		33		—
Total	$	179,732	$	105,121	$	18,031	$	1,904

* Ratings are generally assigned to consumer and residential mortgage loans on a “pass” or “fail” basis, where “fail” results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank’s loan policy that produces a risk rating as described below.

Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds.

Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive.

Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization.

Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies.

Risk 5 or “Special Mention,” also known as “watch,” has potential weakness that deserves Management’s close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral.

Risk 6 or “Substandard” loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower’s credit strength with limited credit access and all nonperforming loans.

Risk 7 or “Doubtful” loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge- off. This category is considered to be temporary until a charge-off amount can be reasonably determined.

Schedule of Aging Analysis of Loans Receivable

June 30, 2016	30-59  Days Past  Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans >  90 Days and  Accruing
	(In thousands)
One-to-four family        residential loans	$	298	$	107	$	518	$	923	$	184,065	$	184,988	$	—
All other mortgage        loans		134		—		318		452		119,604		120,056		—
Commercial        business loans		—		4		23		27		20,549		20,576		—
Consumer loans		—		—		—		—		2,003		2,003		—
Total	$	432	$	111	$	859	$	1,402	$	326,221	$	327,623	$	—

December 31, 2015	30-59  Days Past  Due		60-89 Days Past  Due		Greater  Than 90  Days		Total Past  Due		Current		Total Loans Receivable		Total Loans >  90 Days and  Accruing
	(In thousands)
One-to-four family        residential loans	$	516	$	329	$	903	$	1,748	$	177,984	$	179,732	$	—
All other mortgage        loans		298		—		209		507		104,614		105,121		—
Commercial        business loans		68		—		—		68		17,963		18,031		—
Consumer loans		—		—		—		—		1,904		1,904		—
Total	$	882	$	329	$	1,112	$	2,323	$	302,465	$	304,788	$	—

Schedule of Non-accrual Loans

Nonaccrual loans	June 30, 2016		December 31, 2015
	(In thousands)
One-to-four family residential loans	$	1,546	$	1,733
Nonresidential real estate loans		318		208
All other mortgage loans		—		—
Commercial business loans		27		—
Consumer loans		—		—
Total	$	1,891	$	1,941

Schedule of Impaired Loans

	As of June 30, 2016						Three months ended June 30, 2016				Six months ended June 30, 2016
	Recorded Balance		Unpaid Principal Balance		Specific  Allowance		Average Investment in  Impaired Loans		Interest Income Recognized		Average Investment in  Impaired Loans		Interest Income  Recognized
							(In thousands)
Loans without a       specific valuation       allowance
One-to-four family       residential loans	$	894	$	908	$	—	$	900	$	10	$	1,008	$	20
All other mortgage       loans		1,029		1,029		—		1,034		17		689		35
Commercial business       loans		—		—		—		—		—		—		—
Loans with a       specific valuation       allowance
One-to-four family       residential loans		767		767		447		772		—		1,036		—
All other mortgage       loans		244		244		57		213		—		496		—
Commercial business       loans		53		53		53		41		1		38		1
Total:
One-to-four family       residential loans	$	1,661	$	1,675	$	447	$	1,672	$	10	$	2,044	$	20
All other mortgage       loans		1,273		1,273		57		1,247		17		1,185		35
Commercial business       loans		53		53		53		41		1		38		1
	$	2,987	$	3,001	$	557	$	2,960	$	28	$	3,267	$	56
	As of December 31, 2015						Three months ended June 30, 2015				Six months ended June 30, 2015
	Recorded Balance		Unpaid  Principal  Balance		Specific  Allowance		Average  Investment in  Impaired Loans		Interest  Income  Recognized		Average  Investment in  Impaired Loans		Interest  Income  Recognized
	(In thousands)
Loans without a       specific valuation       allowance
One-to-four family       residential loans	$	1,224	$	1,238	$	—	$	1,794	$	13	$	1,565	$	25
All other mortgage       loans		—		—		—		1,063		18		709		36
Commercial business       loans		—		—		—		—		—		—		—
Loans with a       specific valuation       allowance
One-to-four family       residential loans		1,565		1,875		506		1,010		12		1,397		25
All other mortgage       loans		1,061		1,061		13		83		—		61		—
Commercial business       loans		33		33		33		125		1		131		1
Total:
One-to-four family       residential loans	$	2,789	$	3,113	$	506	$	2,804	$	25	$	2,962	$	50
All other mortgage       loans		1,061		1,061		13		1,146		18		770		36
Commercial business       loans		33		33		33		125		1		131		1
	$	3,883	$	4,207	$	552	$	4,075	$	44	$	3,863	$	87

Schedule of Troubled Debt Restructurings

	Quarter-to-Date					Year-to-Date
Troubled Debt Restructurings	Number of loans	Pre- modification  Recorded  Principal  Balance		Post- modification Recorded Principal  Balance		Number  of loans		Pre- modification  Recorded Principal  Balance		Post- modification  Recorded  Principal  Balance
		(dollars in thousands)						(dollars in thousands)
June 30, 2016
One-to-four family       residential loans		$	—	$	—		8	$	412	$	412

Schedule of balance of mortgage loans collateralized by residential real estate properties held as foreclosed assets

	June 30, 2016		December 31, 2015
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	19	$	14

Schedule of balance of mortgage loans collateralized by residential real estate properties that are in formal process of foreclosure

	June 30, 2016		December 31, 2015
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	104	$	171

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill [Abstract]

Schedule of balance of goodwill

	June 30, 2016		December 31, 2015
	(In thousands)
Goodwill	$	1,719	$	1,719
Total	$	1,719	$	1,719

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Repurchase Agreements (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure of Repurchase Agreements [Abstract]

Schedule of contractual maturity of repurchase agreements, and fair value and type of securities pledged as collateral in exchange for short-term borrowings

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 - 90  Days		Greater Than 90 Days		Total
June 30, 2016	(In thousands)
Repurchase Agreements
Mortgage-backed securities            of government            sponsored entities	$	6,157	$	—	$	—	$	—	$	6,157
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings									$	6,157

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30  Days		30 - 90  Days		Greater Than 90 Days		Total
December 31, 2015	(In thousands)
Repurchase Agreements
Mortgage-backed securities            of government            sponsored entities	$	5,606	$	—	$	—	$	—	$	5,606
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings									$	5,606

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of Computations of Earnings Per Share

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Net income (in thousands)	$	674	$	243	$	1,381	$	683
Weighted-average common shares outstanding		2,747,567		2,761,678		2,747,567		2,763,453
Net income per share	$	0.24	$	0.09	$	0.50	$	0.25

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Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2016

Regulatory Matters [Abstract]

Schedule of Regulatory Capital Requirements

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized  Under Prompt Corrective Action  Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of June 30, 2016
Tier I Capital to average assets	$	38,670		8.7%	$	17,774		4.0%	$	22,218		5.0%
Tier 1 Common equity capital to risk-       weighted assets		38,670		12.9%		13,539		4.5%		19,556		6.5%
Tier I Capital to risk-weighted assets		38,670		12.9%		18,052		6.0%		24,069		8.0%
Total Risk-based capital to risk-       weighted assets		41,446		13.8%		24,069		8.0%		30,087		10.0%
As of December 31, 2015
Tier I Capital to average assets	$	37,524		8.8%	$	17,092		4.0%	$	21,365		5.0%
Tier 1 Common equity capital to risk-      weighted assets		37,524		13.4%		12,645		4.5%		18,265		6.5%
Tier I Capital to risk-weighted assets		37,524		13.4%		16,860		6.0%		22,480		8.0%
Total Risk-based capital to risk-       weighted assets		40,361		14.4%		22,480		8.0%		28,099		10.0%

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2016

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

	Gross Unrealized Gains on  Available-for- Sale Securities		Net Unrealized Loss  for Unfunded  Status of Split- Dollar Life  Insurance Plan  Liability (tax-free)			Gross Unrealized  Loss for  Unfunded Status  of Defined  Benefit Plan			Tax Effect			Total Accumulated  Other Comprehensive  Income (Loss)
	(In thousands)
June 30, 2016	$	1,416	$	(89	)	$	(1,083	)	$	(113	)	$	131
December 31, 2015	$	777	$	(89	)	$	(1,083	)	$	104		$	(291	)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measured on a Recurring Basis

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
U.S. government agencies	$	96	$	—	$	96	$	—
Mortgage-backed securities of            government sponsored entities		69,760		—		69,760		—
Private-label collateralized mortgage            obligations		173		—		173		—
State and political subdivisions		16,576		—		16,576		—
			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets  for Identical  Assets (Level 1)		Significant Other  Observable  Inputs (Level 2)		Significant  Unobservable  Inputs (Level 3)
	(In thousands)
December 31, 2015
U.S. government agencies	$	101	$	—	$	101	$	—
Mortgage-backed securities of            government sponsored entities		76,104		—		76,104		—
Private-label collateralized mortgage            obligations		277		—		277		—
State and political subdivisions		18,865		—		18,865		—

Schedule of Fair Value Measured on a Nonrecurring Basis

			Fair Value Measurement Using
	Fair Value		Quoted Prices in  Active Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Collateral-dependent            impaired loans	$	26	$	—	$	—	$	26
Foreclosed assets		19		—		—		19
December 31, 2015
Collateral-dependent            impaired loans	$	292	$	—	$	—	$	292
Foreclosed assets		5		—		—		5

Schedule of Level 3 Fair Value Measurements

	Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
June 30, 2016
Collateral-dependent           impaired loans	$	26	Historical proceeds from  prior sales	Selling Costs	41%
Foreclosed assets		19	Historical proceeds from  prior sales	Selling Costs	N/A
December 31, 2015
Collateral-dependent           impaired loans	$	292	Market comparable properties, less delinquent  real estate taxes	N/A	N/A
Foreclosed assets		5	Agreed upon selling price	Selling Costs	10%

Schedule of Fair Value of Financial Instruments

			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant  Unobservable Inputs  (Level 3)
	(In thousands)
June 30, 2016
Financial assets
Cash and cash equivalents	$	12,067	$	12,067	$	—	$	—
Held-to-maturity            securities		9,159		—		9,357		—
Loans, net of allowance            for loan losses		315,144		—		—		332,540
Federal Home Loan Bank            stock		4,226		—		4,226		—
Interest receivable		1,166		—		1,166		—
Financial liabilities
Deposits		376,935		42,906		321,747		—
Other short-term            borrowings		6,157		—		6,157		—
Federal Home Loan Bank            advances		21,000		—		21,274		—
Advances from borrowers            for taxes and insurance		406		—		406		—
Interest payable		46		—		46		—

			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant  Unobservable  Inputs (Level 3)
	(In thousands)
December 31, 2015
Financial assets
Cash and cash equivalents	$	11,156	$	11,156	$	—	$	—
Held-to-maturity            securities		8,307		—		8,205		—
Loans, net of allowance            for loan losses		293,121		—		—		302,595
Federal Home Loan Bank            stock		4,226		—		4,226		—
Interest receivable		1,149		—		1,149		—
Financial liabilities
Deposits		362,427		42,630		295,796		—
Other short-term            borrowings		5,606		—		5,606		—
Federal Home Loan Bank            advances		21,000		—		20,978		—
Advances from borrowers            for taxes and insurance		1,240		—		1,240		—
Interest payable		40		—		40		—

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Securities (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Carrying value of securities pledged as collateral to secure public deposits	$ 53.3	$ 55.3
Fair value of investments, carried at less than historical costs	$ 21.0	$ 53.8
Percentage available for sale Securities in unrealized loss positions out of total available for sale securities	22.00%	52.00%

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Securities (Schedule of Available for Sale Securities and Held To Maturity Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available for sale
Amortized Cost	$ 85,189	$ 94,571
Gross Unrealized Gains	1,617	1,342
Gross Unrealized Losses	201	566
Approximate Fair Value	86,605	95,347
Held to maturity
Amortized Cost	9,159	8,307
Gross Unrealized Gains	237	34
Gross Unrealized Losses	39	136
Approximate Fair Value	9,357	8,205
U.S. government agencies [Member]
Available for sale
Amortized Cost	96	101
Gross Unrealized Gains
Gross Unrealized Losses
Approximate Fair Value	96	101
Held to maturity
Amortized Cost	78	82
Gross Unrealized Gains
Gross Unrealized Losses
Approximate Fair Value	78	82
Mortgage-backed securities of government-sponsored entities [Member]
Available for sale
Amortized Cost	69,041	75,972
Gross Unrealized Gains	893	662
Gross Unrealized Losses	174	530
Approximate Fair Value	69,760	76,104
Held to maturity
Amortized Cost	1,028	1,052
Gross Unrealized Gains	20	5
Gross Unrealized Losses
Approximate Fair Value	1,048	1,057
Private-label collateralized mortgage obligations [Member]
Available for sale
Amortized Cost	172	274
Gross Unrealized Gains	1	3
Gross Unrealized Losses
Approximate Fair Value	173	277
State and political subdivisions [Member]
Available for sale
Amortized Cost	15,880	18,224
Gross Unrealized Gains	723	677
Gross Unrealized Losses	27	36
Approximate Fair Value	16,576	18,865
Held to maturity
Amortized Cost	8,053	7,173
Gross Unrealized Gains	217	29
Gross Unrealized Losses	39	136
Approximate Fair Value	$ 8,231	$ 7,066

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Securities (Schedule of Expected Maturities of Available for Sale and Held To Maturity Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale- Debt maturities, Amortized Cost
One to five years	$ 6,133
Five to ten years	3,423
After ten Years	6,420
Subtotal	15,976
Totals	85,189
Available for Sale Securities, Fair Values
One to five years	6,420
Five to ten years	3,600
After ten Years	6,652
Subtotal	16,672
Totals	86,605
Held to Maturity securities, Amortized Cost
One to five years	1,408
Five to ten years	3,344
After ten Years	3,379
Subtotal	8,131
Held-to-maturity securities	9,159	$ 8,307
Held to Maturity securities, Fair Values
One to five years	1,432
Five to ten years	3,436
After ten Years	3,441
Subtotal	8,309
Total	9,357	8,205
Mortgage-backed securities of government-sponsored entities [Member]
Available-for-sale- Debt maturities, Amortized Cost
Maturities without single maturity date	69,041
Available for Sale Securities, Fair Values
Maturities without single maturity date	69,760
Held to Maturity securities, Amortized Cost
Maturities without single maturity date	1,028
Held-to-maturity securities	1,028	1,052
Held to Maturity securities, Fair Values
Maturities without single maturity date	1,048
Total	1,048	$ 1,057
Private-label collateralized mortgage obligations [Member]
Available-for-sale- Debt maturities, Amortized Cost
Maturities without single maturity date	172
Available for Sale Securities, Fair Values
Maturities without single maturity date	$ 173

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Securities (Schedule of Securities in a Gross Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Securities with unrealized loss position
Less than 12 Months, Fair Value	$ 9,063	$ 36,686
Less than 12 Months, Unrealized Losses	80	319
More than 12 Months, Fair Value	11,982	17,075
More than 12 Months, Unrealized Losses	160	383
Total, Fair Value	21,045	53,761
Total, Unrealized Losses	240	702
Mortgage-backed securities of government-sponsored entities [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value	9,063	32,930
Less than 12 Months, Unrealized Losses	80	269
More than 12 Months, Fair Value	11,023	14,560
More than 12 Months, Unrealized Losses	94	261
Total, Fair Value	20,086	47,490
Total, Unrealized Losses	174	530
State and political subdivisions [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value		3,756
Less than 12 Months, Unrealized Losses		50
More than 12 Months, Fair Value	959	2,515
More than 12 Months, Unrealized Losses	66	122
Total, Fair Value	959	6,271
Total, Unrealized Losses	$ 66	$ 172

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Credit Quality of Loans and the Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Deferred loan origination fees	$ 778	$ 765
Loans in process	$ 8,900	$ 8,100

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Activity in the allowance for loan losses by portfolio segment
Beginning balance	$ 2,771	$ 2,349	$ 2,837	$ 2,769
Provision charged to expense	11	481	(56)	714
Losses charged off	(6)	(205)	(6)	(859)
Recoveries		43	1	44
Ending balance	2,776	2,668	2,776	2,668
One-to-four family residential [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning balance	1,279	910	1,346	1,533
Provision charged to expense	303	367	235	397
Losses charged off		(205)		(859)
Recoveries		43	1	44
Ending balance	1,582	1,115	1,582	1,115
All other mortgage loans [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning balance	1,207	1,055	1,210	885
Provision charged to expense	(245)	109	(248)	279
Losses charged off	(5)		(5)
Recoveries
Ending balance	957	1,164	957	1,164
Commercial business loans [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning balance	281	380	279	343
Provision charged to expense	(47)	(34)	(45)	3
Losses charged off
Recoveries
Ending balance	234	346	234	346
Consumer loans [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning balance	4	4	2	8
Provision charged to expense		1	2	(3)
Losses charged off	(1)		(1)
Recoveries
Ending balance	3	5	3	5
Unallocated [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning balance
Provision charged to expense		38		38
Losses charged off
Recoveries
Ending balance		$ 38		$ 38

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Allowance for Loan Losses and Recorded Investment) (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Ending balances: Allowance for loan losses
Individually evaluated for impairment		$ 557		$ 552
Collectively evaluated for impairment		2,219		2,285
Total allowance for loan losses		2,776	$ 2,771	2,837	$ 2,668	$ 2,349	$ 2,769
Ending balances: Loans
Individually evaluated for impairment		2,987		3,883
Collectively evaluated for impairment		324,636		300,905
Total balance		327,623		304,788
One-to-four family residential [Member]
Ending balances: Allowance for loan losses
Individually evaluated for impairment		447		506
Collectively evaluated for impairment		1,135		840
Total allowance for loan losses		1,582	1,279	1,346	1,115	910	1,533
Ending balances: Loans
Individually evaluated for impairment		1,661		2,789
Collectively evaluated for impairment		183,327		176,943
Total balance	[1]	184,988		179,732
All other mortgage loans [Member]
Ending balances: Allowance for loan losses
Individually evaluated for impairment		57		13
Collectively evaluated for impairment		900		1,197
Total allowance for loan losses		957	1,207	1,210	1,164	1,055	885
Ending balances: Loans
Individually evaluated for impairment		1,273		1,061
Collectively evaluated for impairment		118,783		104,060
Total balance	[1]	120,056		105,121
Commercial business loans [Member]
Ending balances: Allowance for loan losses
Individually evaluated for impairment		53		33
Collectively evaluated for impairment		181		246
Total allowance for loan losses		234	281	279	346	380	343
Ending balances: Loans
Individually evaluated for impairment		53		33
Collectively evaluated for impairment		20,523		17,998
Total balance	[1]	20,576		18,031
Consumer loans [Member]
Ending balances: Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment		3		2
Total allowance for loan losses		3	$ 4	2	$ 5	$ 4	$ 8
Ending balances: Loans
Individually evaluated for impairment
Collectively evaluated for impairment		2,003		1,904
Total balance	[1]	$ 2,003		$ 1,904

[1] Ratings are generally assigned to consumer and residential mortgage loans on a "pass" or "fail" basis, where "fail" results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank's loan policy that produces a risk rating as described below.

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Loans Receivable by Credit Risk Profile) (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross		$ 327,623	$ 304,788
One-to-four family residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	184,988	179,732
One-to-four family residential [Member] | Pass (Risk 1-4) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	180,215	172,617
One-to-four family residential [Member] | Special Mention (Risk 5) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	284	1,406
One-to-four family residential [Member] | Substandard (Risk 6) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	4,489	5,709
All other mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	120,056	105,121
All other mortgage loans [Member] | Pass (Risk 1-4) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	117,741	100,961
All other mortgage loans [Member] | Special Mention (Risk 5) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	136	1,881
All other mortgage loans [Member] | Substandard (Risk 6) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	2,179	2,279
Commercial business loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	20,576	18,031
Commercial business loans [Member] | Pass (Risk 1-4) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	20,024	17,893
Commercial business loans [Member] | Special Mention (Risk 5) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	499	105
Commercial business loans [Member] | Substandard (Risk 6) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	53	33
Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	2,003	1,904
Consumer loans [Member] | Pass (Risk 1-4) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross	[1]	2,003	$ 1,904
Consumer loans [Member] | Special Mention (Risk 5) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross
Consumer loans [Member] | Substandard (Risk 6) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, gross

[1] Ratings are generally assigned to consumer and residential mortgage loans on a "pass" or "fail" basis, where "fail" results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank's loan policy that produces a risk rating as described below.

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Aging Analysis of Loans Receivable) (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		$ 1,402	$ 2,323
Current		326,221	302,465
Total Loans receivable		327,623	304,788
30-59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		432	882
60-89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		111	329
Greater Than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		859	1,112
Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due
Current		2,003	1,904
Total Loans receivable	[1]	2,003	1,904
Consumer loans [Member] | 30-59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due
Consumer loans [Member] | 60-89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due
Consumer loans [Member] | Greater Than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due
One-to-four family residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		298	1,748
Current		184,065	177,984
Total Loans receivable	[1]	184,988	179,732
One-to-four family residential [Member] | 30-59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		298	516
One-to-four family residential [Member] | 60-89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		107	329
One-to-four family residential [Member] | Greater Than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		518	903
All other mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		452	507
Current		119,604	104,614
Total Loans receivable	[1]	120,056	105,121
All other mortgage loans [Member] | 30-59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		134	298
All other mortgage loans [Member] | 60-89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due
All other mortgage loans [Member] | Greater Than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		318	209
Commercial business loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		27	68
Current		20,549	17,963
Total Loans receivable	[1]	20,576	18,031
Commercial business loans [Member] | 30-59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due			$ 68
Commercial business loans [Member] | 60-89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		4
Commercial business loans [Member] | Greater Than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Past Due		$ 23

[1] Ratings are generally assigned to consumer and residential mortgage loans on a "pass" or "fail" basis, where "fail" results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank's loan policy that produces a risk rating as described below.

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 1,891	$ 1,941
One-to-four family residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	1,546	1,733
Nonresidential real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	318	$ 208
All other mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans
Commercial business loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	27
Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Specific Allowance	$ 557		$ 557		$ 552
Recorded Balance	2,987		2,987		3,883
Unpaid Principal Balance	3,001		3,001		4,207
Average Investment in Impaired Loans	2,960	$ 4,075	3,267	$ 3,863
Interest Income Recognized	28	44	56	87
One-to-four family residential [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific valuation allowance, Recorded Balance	894		894		1,224
Loans without a specific valuation allowance, Unpaid Principal Balance	908		908		1,238
Loans without a specific valuation allowance, Average Investment in Impaired Loans	900	1,794	1,008	1,565
Loans without a specific valuation allowance, Interest Income Recognized	10	13	20	25
Loans with a specific valuation allowance, Recorded Balance	767		767		1,565
Loans with a specific valuation allowance, Unpaid Principal Balance	767		767		1,875
Specific Allowance	447		447		506
Loans with a specific valuation allowance, Average Investment in Impaired Loans	772	1,010	1,036	1,397
Loans with a specific valuation allowance, Interest Income Recognized		12		25
Recorded Balance	1,661		1,661		2,789
Unpaid Principal Balance	1,675		1,675		3,113
Average Investment in Impaired Loans	1,672	2,804	2,044	2,962
Interest Income Recognized	10	25	20	50
All other mortgage loans [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific valuation allowance, Recorded Balance	1,029		1,029
Loans without a specific valuation allowance, Unpaid Principal Balance	1,029		1,029
Loans without a specific valuation allowance, Average Investment in Impaired Loans	1,034	1,063	689	709
Loans without a specific valuation allowance, Interest Income Recognized	17	18	35	36
Loans with a specific valuation allowance, Recorded Balance	244		244		1,061
Loans with a specific valuation allowance, Unpaid Principal Balance	244		244		1,061
Specific Allowance	57		57		13
Loans with a specific valuation allowance, Average Investment in Impaired Loans	213	83	496	61
Recorded Balance	1,273		1,273		1,061
Unpaid Principal Balance	1,273		1,273		1,061
Average Investment in Impaired Loans	1,247	1,146	1,185	770
Interest Income Recognized	17	18	35	36
Commercial business loans [Member]
Financing Receivable, Impaired [Line Items]
Loans with a specific valuation allowance, Recorded Balance	53		53		33
Loans with a specific valuation allowance, Unpaid Principal Balance	53		53		33
Specific Allowance	53		53		33
Loans with a specific valuation allowance, Average Investment in Impaired Loans	41	125	38	131
Loans with a specific valuation allowance, Interest Income Recognized	1	1	1	1
Recorded Balance	53		53		33
Unpaid Principal Balance	53		53		$ 33
Average Investment in Impaired Loans	41	125	38	131
Interest Income Recognized	$ 1	$ 1	$ 1	$ 1

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Troubled Debt Restructurings) (Details) - All other mortgage loans [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) N
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | N	8
Pre-modification Recorded Principal Balance	$ 412
Post-modification Recorded Principal Balance	$ 412

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Credit Quality of Loans and the Allowance for Loan Losses (Schedule of Loans Collateralized by Residential Real Estate Properties) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	$ 19	$ 14
One-to-four family residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	19	14
Recorded investment of assets in process of foreclosure	$ 104	$ 171

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Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Abstract]
Goodwill	$ 1,719	$ 1,719
Goodwill impairment loss	$ 0

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Repurchase Agreements (Schedule of contractual maturity of repurchase agreements, and fair value and type of securities pledged as collateral in exchange for short-term borrowings) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Gross amount of recognized liabilities for repurchase agreements included in other short-term borrowings	$ 6,157	$ 5,606
Mortgage-backed securities of government-sponsored entities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total Borrowings	6,157	5,606
Overnight and Continuous [Member] | Mortgage-backed securities of government-sponsored entities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total Borrowings	6,157	$ 5,606
Up to 30 Days [Member] | Mortgage-backed securities of government-sponsored entities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total Borrowings
30 to 90 Days [Member] | Mortgage-backed securities of government-sponsored entities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total Borrowings
Greater than 90 Days [Member] | Mortgage-backed securities of government-sponsored entities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total Borrowings

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 674	$ 243	$ 1,381	$ 683
Weighted-average common shares outstanding	2,747,567	2,761,678	2,747,567	2,763,453
Net income per share	$ 0.24	$ 0.09	$ 0.50	$ 0.25

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Regulatory Matters (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016
Regulatory Matters [Abstract]
Common Equity Tier 1, phase period	4 years
Deductions and other adjustments percentage in first year	40.00%
Deductions and other adjustments percentage in after first year	20.00%
Common Equity Tier 1, capital conservation buffer ratio	0.625%
Common Equity Tier 1, capital conservation buffer phase period	4 years
Common Equity Tier 1, maximum capital conservation buffer ratio	2.50%

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Regulatory Matters (Schedule of Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Tier 1 Leverage Capital (to average assets)
Tier 1 Capital	$ 38,670	$ 37,524
Tier 1 Capital (to average assets) ratio	8.70%	8.80%
Minimum amount of Tier 1 Capital for adequacy purposes	$ 17,774	$ 17,092
Minimum amount of Tier 1 Capital for adequacy purposes, ratio	4.00%	4.00%
Minimum Tier 1 Capital required to be well-capitalized	$ 22,218	$ 21,365
Minimum Tier 1 Capital required to be well-capitalized, ratio	5.00%	5.00%
Tier 1 Common equity capital to risk-weighted assets
Tier 1 Common equity capital	$ 38,670	$ 37,524
Tier 1 Common equity capital ratio	12.90%	13.40%
Minimum amount of Tier 1 Common equity capital for adequacy purposes	$ 13,539	$ 12,645
Minimum amount of Tier 1 Common equity capital for adequacy purposes ratio	4.50%	4.50%
Minimum amount of Tier 1 Common equity capital to be well-capitalized	$ 19,556	$ 18,265
Minimum amount of Tier 1 Common equity capital to be well-capitalized ratio	6.50%	6.50%
Tier 1 Capital (to risk-weighted assets)
Tier 1 Capital	$ 38,670	$ 37,524
Tier 1 Capital (to risk-weighted assets) ratio	12.90%	13.40%
Minimum amount of Tier 1 Capital for adequacy purposes	$ 18,052	$ 16,860
Minimum amount of Tier 1 Capital for adequacy purposes, ratio	6.00%	6.00%
Minimum Tier 1 Capital required to be well-capitalized	$ 24,069	$ 22,480
Minimum Tier 1 Capital required to be well-capitalized, ratio	8.00%	8.00%
Total Capital
Total Capital	$ 41,446	$ 40,361
Total Capital (to risk-weighted assets) ratio	13.80%	14.40%
Minimum amount of capital for adequacy purposes	$ 24,069	$ 22,480
Minimum amount of capital for adequacy purposes, ratio	8.00%	8.00%
Minimum Capital required to be well-capitalized	$ 30,087	$ 28,099
Minimum Capital required to be well-capitalized, ratio	10.00%	10.00%

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Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Gross Unrealized Gains on Available-for-sale Securities	$ 1,416	$ 777
Net Unrealized Loss for Unfunded Status of Split-dollar Life Insurance Plan Liability (tax-free)	(89)	(89)
Gross Unrealized Loss for Unfunded Status of Defined Benefit Plan	(1,083)	(1,083)
Tax Effect	(113)	104
Total Accumulated Other Comprehensive Income (Loss)	$ 131	$ (291)

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Fair Value Measurements (Schedule of Fair Value Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Recurring Fair Value Measurements
Available-for-sale securities	$ 86,605	$ 95,347
U.S. government agencies [Member]
Recurring Fair Value Measurements
Available-for-sale securities	96	101
U.S. government agencies [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
U.S. government agencies [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Recurring Fair Value Measurements
Available-for-sale securities	96	101
U.S. government agencies [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
U.S. government agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member]
Recurring Fair Value Measurements
Available-for-sale securities	96	101
Mortgage-backed securities of government-sponsored entities [Member]
Recurring Fair Value Measurements
Available-for-sale securities	69,760	76,104
Mortgage-backed securities of government-sponsored entities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
Mortgage-backed securities of government-sponsored entities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Recurring Fair Value Measurements
Available-for-sale securities	69,760	76,104
Mortgage-backed securities of government-sponsored entities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
Mortgage-backed securities of government-sponsored entities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member]
Recurring Fair Value Measurements
Available-for-sale securities	69,760	76,104
Private-label collateralized mortgage obligations [Member]
Recurring Fair Value Measurements
Available-for-sale securities	173	277
Private-label collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
Private-label collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Recurring Fair Value Measurements
Available-for-sale securities	173	277
Private-label collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
Private-label collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member]
Recurring Fair Value Measurements
Available-for-sale securities	173	277
State and political subdivisions [Member]
Recurring Fair Value Measurements
Available-for-sale securities	16,576	18,865
State and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
State and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Recurring Fair Value Measurements
Available-for-sale securities	16,576	18,865
State and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Recurring Fair Value Measurements
Available-for-sale securities
State and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member]
Recurring Fair Value Measurements
Available-for-sale securities	$ 16,576	$ 18,865

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Fair Value Measurements (Schedule of Fair Value Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans
Foreclosed assets
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans
Foreclosed assets
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	26	292
Foreclosed assets	19	5
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	26	292
Foreclosed assets	$ 19	$ 5

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Fair Value Measurements (Schedule of Level 3 Fair Value Measurements) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Collateral-dependent impaired loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral-dependent impaired loans	$ 26	$ 292
Valuation Technique	Historical proceeds from prior sales	Market comparable properties, less delinquent real estate taxes
Unobservable Input	Selling Costs
Range (Weighted Average)	41%
Foreclosed assets [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Foreclosed assets	$ 19	$ 5
Valuation Technique	Historical proceeds from prior sales	Agreed upon selling price
Unobservable Input	Selling Costs	Selling Costs
Range (Weighted Average)		10%

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Fair Value Measurements (Schedule of Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial assets
Held-to-maturity securities	$ 9,159	$ 8,307
Held-to-maturity securities	9,357	8,205
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets
Cash and cash equivalents	12,067	11,156
Held-to-maturity securities
Loans, net of allowance for loan losses
Federal Home Loan Bank stock
Interest receivable
Financial liabilities
Deposits	42,906	42,630
Other short-term borrowings
Federal Home Loan Bank advances
Advances from borrowers for taxes and insurance
Interest payable
Significant Other Observable Inputs (Level 2) [Member]
Financial assets
Cash and cash equivalents
Held-to-maturity securities	9,357	8,205
Loans, net of allowance for loan losses
Federal Home Loan Bank stock	4,226	4,226
Interest receivable	1,166	1,149
Financial liabilities
Deposits	321,747	295,796
Other short-term borrowings	6,157	5,606
Federal Home Loan Bank advances	21,274	20,978
Advances from borrowers for taxes and insurance	406	1,240
Interest payable	46	40
Significant Unobservable Inputs (Level 3) [Member]
Financial assets
Cash and cash equivalents
Held-to-maturity securities
Loans, net of allowance for loan losses	332,540	302,595
Federal Home Loan Bank stock
Interest receivable
Financial liabilities
Deposits
Other short-term borrowings
Federal Home Loan Bank advances
Advances from borrowers for taxes and insurance
Interest payable
Carrying Amount [Member]
Financial assets
Cash and cash equivalents	12,067	11,156
Held-to-maturity securities	9,159	8,307
Loans, net of allowance for loan losses	315,144	293,121
Federal Home Loan Bank stock	4,226	4,226
Interest receivable	1,166	1,149
Financial liabilities
Deposits	376,935	362,427
Other short-term borrowings	6,157	5,606
Federal Home Loan Bank advances	21,000	21,000
Advances from borrowers for taxes and insurance	406	1,240
Interest payable	$ 46	$ 40