10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

    x     Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2012

OR

    ¨     Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from          to         

Commission File No. 001-35034

Wolverine Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	27-3939016
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

5710 Eastman Avenue, Midland, Michigan	48640
(Address of Principal Executive Offices)	Zip Code

(989) 631-4280

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

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 requirements for the past 90 days.    YES  x    NO  ¨.

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

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if smaller reporting company)	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  ¨    NO  x

The number of shares outstanding of the Registrant’s common stock, $0.01 per share, as of July 31, 2012, was 2,389,401.

Wolverine Bancorp, Inc.

Form 10-Q

Index

		Page
Part I. Financial Information
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets as of June 30, 2012 (unaudited) and December 31, 2011		1
	Condensed Consolidated Statements of Income and Comprehensive Income for the Three Months and Six Months Ended June 30, 2012 and 2011 (unaudited)		2
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011 (unaudited)		3
	Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2012 (unaudited)		4
	Notes to Condensed Consolidated Financial Statements (unaudited)		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		35
Item 4.	Controls and Procedures		35
Part II. Other Information
Item 1.	Legal Proceedings		36
Item 1A.	Risk Factors		36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		36
Item 3.	Defaults upon Senior Securities		36
Item 4.	Mine Safety Disclosures		36
Item 5.	Other Information		36
Item 6.	Exhibits		36
	Signature Page		37

Part I. Financial Information

Item 1. Financial Statements

Wolverine Bancorp, Inc.

Condensed Consolidated Balance Sheets

(Dollars in Thousands)

	June 30, 2012			December 31, 2011
	(Unaudited)
Assets
Cash and due from banks	$	391		$	454
Interest-earning demand deposits		23,279			13,669
Cash and cash equivalents		23,670			14,123
Interest-earning time deposits		3,486			21,146
Held to maturity securities		259			315
Loans held for sale		2,726			666
Loans, net of allowance for loan losses of $6,500 and $9,503		243,945			243,663
Premises and equipment, net		1,515			1,503
Federal Home Loan Bank stock		4,391			4,391
Other real estate owned		1,006			1,365
Accrued interest receivable		764			833
Other assets		5,454			5,677
Total assets	$	287,216		$	293,682
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	156,340		$	161,364
Federal Home Loan Bank advances		61,893			65,860
Interest payable and other liabilities		3,317			1,481
Total liabilities		221,550			228,705
Commitments and Contingencies
Stockholders’ Equity
Common Stock, $0.01 par value per share:
Issued and outstanding – 2,500,224 and 2,507,500 at June 30, 2012 and December 31, 2011	$	25		$	25
Additional paid-in capital		23,693			23,806
Unearned employee stock ownership plan (ESOP)		(1,906	)		(1,906	)
Retained earnings		43,854			43,052
Total stockholders’ equity		65,666			64,977
Total liabilities and stockholders’ equity	$	287,216		$	293,682

The accompanying notes are an integral part of these condensed financial statements.

1

Wolverine Bancorp, Inc.

Condensed Consolidated Statements of Income and Comprehensive Income

(Dollars in Thousands, except per share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
	(Unaudited)					(Unaudited)
Interest and Dividend Income
Loans	$	3,461		$	3,518	$	7,003		$	7,015
Investment securities and other		60			81		155			186
Total interest and dividend income		3,521			3,599		7,158			7,201
Interest Expense
Deposits		334			464		698			973
Borrowings		640			840		1,322			1,650
Total interest expense		974			1,304		2,020			2,623
Net Interest Income		2,547			2,295		5,138			4,578
Provision for Loan Losses		300			400		950			760
Net Interest Income After Provision for Loan Losses		2,247			1,895		4,188			3,818
Noninterest Income
Service charges and fees		48			64		122			122
Net gain on loan sales		431			80		775			216
Gross income on real estate owned		1			35		2			92
Loan fees earned		16			53		83			119
Net gain (loss) on sale of real estate owned		(31	)		20		(63	)		75
Other		43			45		86			117
Total noninterest income		508			297		1,005			741
Noninterest Expense
Salaries and employee benefits		1,088			870		2,168			1,722
Net occupancy and equipment expense		198			187		394			370
Information technology expense		58			67		119			118
Federal deposit insurance corporation premiums		70			72		142			142
Professional and services fees		121			134		277			288
Other real estate owned expense		72			148		144			546
Loan legal expense		22			31		55			76
Other		349			312		674			617
Total noninterest expense		1,978			1,821		3,973			3,879
Income Before Income Tax		777			371		1,220			680
Provision for Income Taxes		266			127		418			234
Net Income and Comprehensive Income	$	511		$	244	$	802		$	446
Earnings Per Share:
Basic	$	0.22		$	0.11	$	0.35		$	0.17
Diluted	$	0.22		$	0.11	$	0.35		$	0.17

The accompanying notes are an integral part of these condensed financial statements.

2

Wolverine Bancorp, Inc.

Condensed Consolidated Statement of Cash Flows

(Dollars in Thousands)

	Six Months Ended June 30,
	2012			2011
	(Unaudited)
Operating Activities
Net income	$	802		$	446
Items not requiring (providing) cash
Depreciation		116			107
Provision for loan losses		950			760
Amortization of Federal Home Loan Bank advance prepayment penalty		33			33
Deferred income taxes		(326	)		135
Loss (Gain) on other real estate owned		63			253
Loans originated for sale		(40,781	)		(11,427	)
Proceeds from loans sold		39,496			12,050
Gain on sale of loans		(775	)		(216	)
Gain on sale of premises or equipment		(1	)		(31	)
Changes in
Interest receivable and other assets		618			866
Interest payable and other liabilities		1,835			846
Net cash provided by operating activities		2,030			3,822
Investing Activities
Net change in interest-bearing deposits		17,660			(10,950	)
Proceeds from calls, maturities and pay-downs of held to maturity securities		57			73
Net change in loans		(1,455	)		(11,642	)
Proceeds from sale of premises and equipment		23			64
Proceeds from sale of real estate owned		519			1,082
Redemption of FHLB stock		—			219
Purchase of premises and equipment		(150	)		(33	)
Net cash provided by (used in) investing activities		16,654			(21,187	)
Financing Activities
Net change in demand deposits, money market, checking and savings accounts		2,302			2,083
Net change in certificates of deposit		(7,326	)		(9,525	)
Proceeds from stock conversion		—			2,676
Proceeds from Federal Home Loan Bank advances		22,000			—
Repayment of Federal Home Loan Bank advances		(26,000	)		(5,000	)
Purchase of treasury stock		(113	)		—
Net cash used in financing activities		(9,137	)		(9,766	)
Increase (Decrease) in Cash and Cash Equivalents		9,547			(27,131	)
Cash and Cash Equivalents, Beginning of Period		14,123			48,936
Cash and Cash Equivalents, End of Period	$	23,670		$	21,805
Supplemental Disclosures of Cash Flows Information
Interest paid	$	2,068		$	2,660
Income taxes paid		450			—
Loans transferred to real estate owned		222			953

The accompanying notes are an integral part of these condensed financial statements.

3

Wolverine Bancorp, Inc.

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)

(Dollars in Thousands, except share data)

	Common Stock		Additional  Paid-in Capital			Unearned ESOP Shares			Retained Earnings		Total Stockholders’ Equity
Balances at January 1, 2012	$	25	$	23,806		$	(1,906	)	$	43,052	$	64,977
Net income		—		—			—			802		802
Purchase of 7,276 shares of common stock		—		(113	)		—			—		(113	)
Balances at June 30, 2012	$	25	$	23,693		$	(1,906	)	$	43,854	$	65,666

The accompanying notes are an integral part of these condensed financial statements.

4

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 1: Basis of Presentation

The unaudited condensed consolidated financial statements of Wolverine Bancorp, Inc. (the “Company”), the holding company of Wolverine Bank (the “Bank”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) believed necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of December 31, 2011 has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto filed as part of our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 31, 2012.

Note 2: Plan of Conversion and Change in Corporate Form

On January 19, 2011, the Bank converted to a stock savings bank structure and established the Company, as the parent holding company of the Bank. In connection with the conversion, 2,507,500 shares of the Company’s common stock were issued at $10.00 per share for total gross offering proceeds of $25.1 million. Expenses related to the offering were approximately $1.3 million. In addition, the Bank’s Board of Directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering, for a total of $2.0 million. The Company is incorporated under the laws of the State of Maryland and owns all of the outstanding common stock of the Bank.

The common stock began trading on the NASDAQ Capital Market on January 20, 2011 under the symbol “WBKC”.

In accordance with Office of Thrift Supervision (“OTS”) regulations, at the time of the completion of the Bank’s mutual to stock conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders and supplemental eligible account holders who continue to maintain their accounts at the Bank after conversion. The liquidation account will be reduced annually to the extent that eligible account holders and supplemental eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s or and supplemental eligible account holder's interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. We may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. The initial liquidation account amount was $41.7 million.

5

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 3: Accounting Developments

The FASB has issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This ASU amendment allows an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments to the Codification in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 is to be applied retrospectively. For public entities, the amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of ASU No. 2011-05 did not have a material impact on the Company’s financial statements.

The FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This ASU defers the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated other comprehensive income into net income for all periods presented. The ASU does not change the other requirements of FASB ASU No. 2011-05, Presentation of Comprehensive Income . Entities are still required to present reclassification adjustments within other comprehensive income either on the face of the statement that reports other comprehensive income or in the notes to the financial statements. The requirement to present comprehensive income in either a single continuous statement or two consecutive condensed statements remains for both annual and interim reporting. The deferral of the requirement for the presentation of reclassification adjustments is intended to be temporary until the FASB reconsiders the operational concerns and needs of financial statement users.

The Company adopted the amendments in this Update at the same time as ASU 2011-05, which became effective beginning in the interim period ended March 31, 2012. As the Company had no reclassifications adjustments within other comprehensive income, ASU No. 2011-12 had no impact on its financial statements.

6

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 4: Securities

The amortized cost and approximate fair values of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
Held to Maturity Securities:
June 30, 2012
Municipal	$	259	$	—	$	—	$	259
December 31, 2011
Municipal	$	315	$	—	$	—	$	315

The amortized cost and fair value of securities at June 30, 2012, 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.

	June 30, 2012
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		—		—
Five to ten years		259		259
After ten years		—		—
Totals	$	259	$	259

There were no sales of securities during the six months ended June 30, 2012 and 2011.

7

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 5: Loans and Allowance for Loan Losses

Categories of loans include:

	June 30,		December 31,
	2012		2011
Real Estate
One-to four-family	$	60,260	$	68,287
Home equity		11,532		13,572
Commercial mortgage loans
Commercial real estate		96,552		89,463
Multifamily		52,863		51,411
Land		12,508		13,445
Construction		16,378		19,704
Commercial Non-mortgage		7,507		7,675
Consumer		1,157		1,247
Total loans		258,757		264,804
Less
Net deferred loan fees, premiums and discounts		432		440
Undisbursed portion of loans		7,880		11,198
Allowance for loan losses		6,500		9,503
Net loans	$	243,945	$	243,663

The risk characteristics of each loan portfolio segment are as follows:

1-4 Family, Home Equity, and Consumer

With respect to residential loans that are secured by one-to four-family residences and are primarily owner-occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to four-family residences, and consumer loans are typically secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties.

Home equity loans secured by second mortgages have greater risk than one- to four-family residential mortgage loans secured by first mortgages. We face the risk that the collateral will be insufficient to compensate us for loan losses and costs of foreclosure. When customers default on their loans, we attempt to foreclose on the property and resell the property as soon as possible to minimize foreclosure and carrying costs. However, the value of the collateral may not be sufficient to compensate us for the amount of the unpaid loan and we may be unsuccessful in recovering the remaining balance from those customers. Particularly with respect to our home equity loans, decreases in real estate values could adversely affect the value of property used as collateral for our loans.

8

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Consumer and other loans generally have greater risk compared to longer-term loans secured by improved, owner-occupied real estate, particularly consumer loans that are secured by rapidly depreciable assets, such as automobiles. In these cases, any repossessed collateral for a defaulted loan may not provide an adequate source of repayment of the outstanding loan balance. As a result, consumer loan collections are dependent on the borrower’s continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy.

Commercial real estate and multifamily

Commercial real estate and multifamily loans generally have greater credit risk than the owner-occupied one- to four-family residential mortgage loans that we originate for retention in our loan portfolio. Repayment of these loans generally depends, in large part, on sufficient income from the property securing the loan or the borrower’s business to cover operating expenses and debt service. These types of loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our commercial real estate and multifamily loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination.

Land

Land loans generally have greater credit risk than the owner-occupied one-to four-family residential mortgage loans that we originate for retention in our portfolio. Repayment of these loans generally depends, in large part, on the sale of the land. The sale of land can either take place when the land is undeveloped, or developed. Generally, other cash flow sources of the borrower are utilized to make additional payments on land loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our land loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination.

Construction

Construction loans include those for one- to four-family residential properties and commercial properties, including multifamily loans and commercial “mixed-use” buildings and homes built by developers on speculation. With respect to construction loans for one- to four-family residential properties and which are primarily owner-occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. These are generally “interest-only” loans during the construction period which typically does not exceed nine months. Construction loans for commercial real estate are made in accordance with a schedule reflecting the cost of construction, and are generally limited to a 75% loan-to-completed appraised value ratio. For all construction loans, we generally require that a commitment for permanent financing be in place prior to closing the construction loan

.

9

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Repayment of one-to four-family residential property loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment of commercial property loans and homes built by developers on speculation is normally expected from the property’s eventual rental income, income from the borrower’s operations, the personal resources of the guarantor, or the sale of the subject property. Generally, before making a commitment to fund a construction loan, we require an appraisal of the property by a state-certified or state-licensed appraiser. We generally review and inspect properties before disbursement of funds during the term of the construction loan.

Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost is inaccurate, we may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project is inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment of the construction loan upon the sale of the property. Construction loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated.

Commercial non-mortgage

Commercial non-mortgage loans generally have a greater credit risk than residential mortgage loans. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial non-mortgage loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial non-mortgage loans may be substantially dependent on the success of the business itself. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

In determining the appropriate level of allowance for loan loss, we analyze various components of our portfolio. The following components are analyzed: all substandard loans on an individual basis; all loans that are designated special mention or closely monitored; loans not classified according to purpose or collateral type; and overdrawn deposit account balances.

10

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

We also factor in historical loss experience and qualitative considerations, including trends in charge offs and recoveries; trends in delinquencies and impaired/classified loans; effects of credit concentrations; changes in underwriting standards and loan review system; experience in lending staff; current industry conditions; and current market conditions.

In instances where risk and loss exposure is clearly identified with a particular asset, the asset or a portion of the asset will be charged off.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2012, December 31, 2011 and June 30, 2011:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily			Land			Construction			Commercial Non- Mortgage		Consumer			Total
Year to date analysis as of June 30, 2012
Allowance for loan losses:
Balance, beginning of year	$	1,580		$	290		$	3,462		$	1,933		$	1,622		$	423		$	165	$	28		$	9,503
Provision charged to expense		(26	)		(16	)		216			583			178			(10	)		24		1			950
Losses charged off		(61	)		—			(1,253	)		(1,241	)		(1,486	)		(2	)		—		(2	)		(4,045	)
Recoveries		21			16			—			52			—			—			—		3			92
Balance, end of period	$	1,514		$	290		$	2,425		$	1,327		$	314		$	411		$	189	$	30		$	6,500
Ending Balance: individually evaluated for impairment	$	—		$	—		$	1		$	—		$	299		$	—		$	—	$	—		$	300
Ending balance: collectively evaluated for impairment	$	1,514		$	290		$	2,424		$	1,247		$	15		$	411		$	189	$	30		$	6,200
Loans:
Ending Balance	$	60,260		$	11,532		$	96,552		$	52,863		$	12,508		$	16,378		$	7,507	$	1,157		$	258,757
Ending Balance: individually evaluated for impairment	$	2,428		$	76		$	6,536		$	8,153		$	6,559		$	—		$	373	$	—		$	24,125
Ending Balance: collectively evaluated for impairment	$	57,832		$	11,456		$	90,016		$	44,710		$	5,949		$	16,378		$	7,134	$	1,157		$	234,632
Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily			Land			Construction			Commercial Non- Mortgage		Consumer			Total
Quarter to date analysis as of June 30, 2012
Allowance for loan losses:
Balance, beginning of year	$	1,590		$	316		$	2,250		$	1,222		$	278		$	390		$	184	$	28		$	6,258
Provision charged to expense		(77	)		(27	)		17			64			136			21			5		2			300
Losses charged off		—			—			—			—			(100	)		—			—		(1	)		(101	)
Recoveries		1			—			—			41			—			—			—		1			43
Balance, end of period	$	1,514		$	290		$	2,425		$	1,327		$	314		$	411		$	189	$	30		$	6,500

11

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of December 31, 2011
Allowance for loan losses:
Balance, beginning of year	$	2,079		$	313		$	3,914		$	1,765	$	1,036		$	367	$	269		$	32		$	9,775
Provision charged to expense		(166	)		138			328			168		973			56		(104	)		(8	)		1,385
Losses charged off		(335	)		(161	)		(785	)		—		(391	)		—		—			(3	)		(1,675	)
Recoveries		2			—			5			—		4			—		—			7			18
Balance, end of year	$	1,580		$	290		$	3,462		$	1,933	$	1,622		$	423	$	165		$	28		$	9,503
Ending Balance: individually evaluated for impairment	$	111		$	—		$	1,538		$	829	$	1,332		$	2	$	—		$	—		$	3,812
Ending balance: collectively evaluated for impairment	$	1,469		$	290		$	1,924		$	1,104	$	290		$	421	$	165		$	28		$	5,691
Loans:
Ending Balance	$	68,287		$	13,572		$	89,463		$	51,411	$	13,445		$	19,704	$	7,675		$	1,247		$	264,804
Ending Balance: individually evaluated for impairment	$	3,314		$	327		$	9,206		$	9,854	$	8,710		$	174	$	375		$	—		$	31,960
Ending Balance: collectively evaluated for impairment	$	64,973		$	13,245		$	80,257		$	41,557	$	4,735		$	19,530	$	7,300		$	1,247		$	232,844
Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of June 30, 2011
Allowance for loan losses:
Balance, beginning of year	$	2,079		$	313		$	3,914		$	1,765	$	1,036		$	367	$	269		$	32		$	9,775
Provision charged to expense		(71	)		24			58			129		648			22		(49	)		(1	)		760
Losses charged off		(39	)		—			(369	)		—		—			—		—			(1	)		(409	)
Recoveries		2			—			5			—		1			—		—			4			12
Balance, end of year	$	1,971		$	337		$	3,608		$	1,894	$	1,685		$	389	$	220		$	34		$	10,138

12

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Loan Class	1-4 Family			Home Equity		Commercial Real Estate			Multifamily			Land		Construction			Commercial Non- Mortgage			Consumer		Total
Quarter to date analysis as of June 30, 2011
Allowance for loan losses:
Balance, beginning of quarter	$	2,010		$	311	$	3,661		$	1,913		$	1,141	$	405		$	262		$	29	$	9,732
Provision charged to expense		(41	)		26		(55	)		(19	)		544		(16	)		(42	)		3		400
Losses charged off		—			—		(2	)		—			—		—			—			—		(2	)
Recoveries		2			—		4			—			—		—			—			2		8
Balance, end of period	$	1,971		$	337	$	3,608		$	1,894		$	1,685	$	389		$	220		$	34	$	10,138

Consistent with regulatory guidance, charge offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. Our policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except one-to-four family residential loans and consumer loans, we promptly charge off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

We charge off one-to-four family residential and consumer loans, or portions thereof, when we reasonably determine the amount of the loss. We adhere to timeframes established by applicable regulatory guidance which provides for the charge off of one-to-four family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which we can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

13

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of June 30, 2012 and December 31, 2011:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2012		2011		2012		2011		2012		2011		2012		2011
Pass	$	54,357	$	61,574	$	11,452	$	13,331	$	69,611	$	63,107	$	34,792	$	34,012
Pass (Closely Monitored)		3,190		3,387		—		—		11,282		9,136		8,208		5,581
Special Mention		658		508		4		35		9,479		8,512		5,457		6,043
Substandard		2,055		2,818		76		206		6,180		8,708		4,406		5,775
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	60,260	$	68,287	$	11,532	$	13,572	$	96,552	$	89,463	$	52,863	$	51,411

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
Pass	$	3,816	$	3,043	$	16,378	$	19,410	$	6,732	$	7,034	$	1,131	$	1,242	$	198,269	$	202,753
Pass (Closely Monitored)		1,979		797		—		120		305		162		26		5		24,990		19,188
Special Mention		237		1,572		—		—		97		104		—		—		15,932		16,774
Substandard		6,476		8,033		—		174		373		375		—		—		19,566		26,089
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	12,508	$	13,445	$	16,378	$	19,704	$	7,507	$	7,675	$	1,157	$	1,247	$	258,757	$	264,804

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis is performed during the loan approval process and is updated as circumstances warrant.

The Pass asset quality rating encompasses assets that have performed as expected. These assets generally do not have delinquency or servicing issues. Loans assigned this rating include loans to borrowers possessing solid credit quality with acceptable risk. Borrowers in these grades are differentiated from higher grades on the basis of size (capital and/or revenue), leverage, asset quality, stability of the industry or specific market area and quality/coverage of collateral. These borrowers generally have a history of consistent earnings and reasonable leverage.

The Closely Monitored asset quality rating encompasses assets that have been brought to the attention of management and may, if not corrected, warrant a more serious quality rating by management. These assets are usually in the first phase of a deficiency situation and may possess similar criteria as Special Mention assets. This grade includes “pass grade” loans to borrowers which require special monitoring because of deteriorating financial results, declining credit ratings, decreasing cash flow, increasing leverage, marginal collateral coverage or industry stress that has resulted or may result in a changing overall risk profile.

14

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The Special Mention asset quality rating encompasses assets that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. This grade is intended to include loans to borrowers whose credit quality has clearly deteriorated and where risk of further decline is possible unless active measures are taken to correct the situation. Weaknesses are considered potential at this state and are not yet fully defined.

The Substandard asset quality rating encompasses assets that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; assets having a well-defined weakness(es) based upon objective evidence; assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected; or the possibility that liquidation will not be timely. Loans categorized in this grade possess a well defined credit weakness and the likelihood of repayment from the primary source is uncertain. Significant financial deterioration has occurred and very close attention is warranted to ensure the full repayment without loss. Collateral coverage may be marginal and the accrual of interest has been suspended.

The Doubtful asset quality rating encompasses assets that have all of the weaknesses of those classified as Substandard. In addition, these weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The Loss asset quality rating encompasses assets that are considered uncollectible and of such little value that their continuance as assets of the bank is not warranted. A loss classification does not mean that an asset has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be realized in the future.

The following table is a summary of our past due and non-accrual loans as of June 30, 2012 and December 31, 2011:

As of June 30, 2012:	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 & Accruing		Total Nonaccrual
1-4 Family	$	526	$	95	$	67	$	688	$	59,572	$	60,260	$	—	$	801
Home Equity		—		—		76		76		11,456		11,532		—		76
Commercial Real Estate		648		—		818		1,466		95,086		96,552		—		1,895
Multifamily		3,649		—		—		3,649		49,214		52,863		—		—
Land		984		—		4,972		5,956		6,552		12,508		—		6,465
Construction		—		—		—		—		16,378		16,378		—		—
Commercial Non-Mortgage		—		—		373		373		7,134		7,507		—		373
Consumer		—		—		—		—		1,157		1,157		—		—
Total	$	5,807	$	95	$	6,306	$	12,208	$	246,549	$	258,757	$	—	$	9,610

15

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

As of December 31, 2011:	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 & Accruing		Total Nonaccrual
1-4 Family	$	1,117	$	83	$	575	$	1,775	$	66,512	$	68,287	$	—	$	922
Home Equity		—		—		165		165		13,407		13,572		—		165
Commercial Real Estate		614		128		980		1,722		87,741		89,463		—		3,652
Multifamily		4,199		—		—		4,199		47,212		51,411		—		—
Land		—		—		906		906		12,539		13,445		—		7,833
Construction		—		—		—		—		19,704		19,704		—		2
Commercial Non-Mortgage		—		—		375		375		7,300		7,675		—		375
Consumer		—		—		—		—		1,247		1,247		—		—
Total	$	5,930	$	211	$	3,001	$	9,142	$	255,662	$	264,804	$	—	$	12,949

Nonaccrual Loan and Past Due Loans. The accrual of interest is discontinued on all loan classes at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. We generally require a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

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 we will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing 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. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made.

16

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following tables present impaired loans for the period ended June 30, 2012:

As of June 30, 2012	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		YTD Average Balance		QTD Interest Income		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,428	$	2,558	$	—	$	2,508	$	2,641	$	36	$	64
Home Equity		76		76		—		148		231		1		3
Commercial Real Estate		6,487		8,862		—		8,562		8,505		106		195
Multifamily		8,153		8,973		—		9,333		9,580		141		282
Land		1,587		2,399		—		3,931		3,684		32		60
Construction		—		—		—		2		60		—		—
Commercial Non-Mortgage		373		373		—		373		374		3		6
Consumer		—		—		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity		—		—		—		—		—		—		—
Commercial Real Estate		49		60		1		49		49		—		1
Multifamily		—		—		—		—		—		—		—
Land		4,972		6,392		299		5,257		5,571		72		146
Construction		—		—		—		—		—		—		—
Commercial Non-Mortgage		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total
1-4 Family	$	2,428	$	2,558	$	—	$	2,508	$	2,641	$	36	$	64
Home Equity		76		76		—		148		231		1		3
Commercial Real Estate		6,536		8,822		1		8,611		8,554		106		196
Multifamily		8,153		8,973		—		9,333		9,580		141		282
Land		6,559		8,791		299		9,188		9,255		104		206
Construction		—		—		—		2		60		—		—
Commercial Non-Mortgage		373		373		—		373		374		3		6
Consumer		—		—		—		—		—		—		—
Total	$	24,125	$	29,593	$	300	$	30,163	$	30,695	$	391	$	757

17

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following tables present impaired loans for the period ended December 31, 2011:

As of December 31, 2011	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,921	$	1,963	$	—	$	1,777	$	114
Home Equity		327		432		—		190		22
Commercial Real Estate		3,018		3,046		—		2,560		157
Multifamily		290		290		—		131		5
Land		—		—		—		85		—
Construction		172		172		—		73		5
Commercial Non-Mortgage		375		375		—		293		11
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	1,393	$	1,423	$	111	$	1,249	$	51
Home Equity		—		—		—		72		—
Commercial Real Estate		6,188		6,653		1,538		5,975		334
Multifamily		9,564		9,565		829		9,391		538
Land		8,710		9,386		1,332		8,180		377
Construction		2		2		2		112		—
Commercial Non-Mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Total
1-4 Family	$	3,314	$	3,386	$	111	$	3,026	$	165
Home Equity		327		432		—		262		22
Commercial Real Estate		9,206		9,699		1,538		8,535		491
Multifamily		9,854		9,855		829		9,522		543
Land		8,710		9,386		1,332		8,265		377
Construction		174		174		2		185		5
Commercial Non-Mortgage		375		375		—		293		11
Consumer		—		—		—		—		—
Total	$	31,960	$	33,307	$	3,812	$	30,088	$	1,614

18

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following tables present impaired loans for the period ended June 30, 2011:

As of June 30, 2011	QTD Average Balance		YTD Average Balance		QTD Interest Income		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,768	$	1,777	$	21	$	43
Home Equity		129		145		2		4
Commercial Real Estate		2,144		1,072		33		63
Multifamily		—		—		—		—
Land		15		83		—		—
Construction		—		35		—		—
Commercial Non-Mortgage		126		63		3		6
Consumer		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	1,312	$	1,222	$	29	$	39
Home Equity		120		93		1		2
Commercial Real Estate		5,409		5,810		55		99
Multifamily		9,743		9,424		148		238
Land		8,218		8,006		104		181
Construction		92		127		1		2
Commercial Non-Mortgage		—		—		—		—
Consumer		—		—		—		—
Total
1-4 Family	$	3,080	$	2,999	$	50	$	82
Home Equity		249		238		3		7
Commercial Real Estate		7,553		6,882		88		161
Multifamily		9,743		9,424		148		238
Land		8,233		8,089		104		181
Construction		92		162		1		2
Commercial Non-Mortgage		126		63		3		6
Consumer		—		—		—		—
Total	$	29,076	$	27,857	$	397	$	677

Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assumed, in which case interest is recognized on a cash basis and is reasonable compared to interest income noted above.

19

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Troubled Debt Restructuring (TDR)

We may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that we would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring. We may modify loans through rate reductions, short-term extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral.

We identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future.

For one-to-four family residential and home equity lines of credit, a restructure often occurs with past due loans and may be offered as an alternative to foreclosure. There are other situations where borrowers, who are not past due, experience a sudden job loss, become over-extended with credit obligations, or other problems, have indicated that they will be unable to make the required monthly payment and request payment relief.

When considering a loan restructure, management will determine if: (i) the financial distress is short or long term; (ii) loan concessions are necessary; and (iii) the restructure is a viable solution.

When a loan is restructured, the new terms often require a reduced monthly debt service payment. No TDRs that were on non-accrual status at the time the concessions were granted have been returned to accrual status. For commercial loans, management completes an analysis of the operating entity’s ability to repay the debt. If the operating entity is capable of servicing the new debt service requirements and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance with the new loan terms. To date, there have been no commercial loans restructured and immediately placed on accrual status after the execution of the TDR.

For retail loans, an analysis of the individual’s ability to service the new required payments is performed. If the borrower is capable of servicing the newly restructured debt and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance to the new loan terms. The reason for the TDR is also considered, such as paying past due real estate taxes or payments caused by a temporary job loss, when determining whether a retail TDR loan could be returned to accrual status. Retail TDRs remain on nonaccrual status until sufficient payments have been made to bring the past due principal and interest current and/or after six months of performance to the new loan terms at which point the loan could be transferred to accrual status.

20

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Effective July 1, 2011, we adopted the provisions of Accounting Standards Update (ASU) No. 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring. As a result of adopting the provisions of ASU 2011-02, we reassessed all loan modifications occurring since January 1, 2011 for identification as TDRs.

The following table summarizes the loans that have been restructured as TDRs during the three months ended June 30, 2012:

	Three Months Ended June 30, 2012						Six Months Ended June 30, 2012
	Count		Balance prior to TDR		Balance after TDR		Count		Balance prior to TDR		Balance after TDR
	(Dollars in thousands)
Commercial real estate		1		98		101		3		237		246
Total loans		1	$	98	$	101		3	$	237	$	246

We had no TDRs that had payment defaults during 2012. Default occurs when a TDR is 90 days or more past due, transferred to nonaccrual status, or transferred to other real estate owned within twelve months of restructuring.

Management monitors the TDRs based on the type of modification or concession granted to the borrower. These types of modifications may include rate reductions, payment/term extensions, forgiveness of principal, forbearance, and other applicable actions. During the three months ended June 30, 2012, management predominantly utilized rate reductions and lower monthly payments, either from a longer amortization period or interest only repayment schedule, because these concessions provide needed payment relief without risking the loss of principal. Management will also agree to a forbearance agreement when it is deemed appropriate to avoid foreclosure.

21

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 6: Disclosures About Fair Value of Assets and Liabilities

ASC Topic 820, Fair Value Measurements, defines fair value as 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. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes 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

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets under the valuation hierarchy. We have no assets or liabilities measured at fair value on a recurring basis and no liabilities measured at fair value on a nonrecurring basis.

Transfers between Levels

There were no transfers between Levels 1, 2 and 3 during the three months ended June 30, 2012.

Nonrecurring Measurements

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets 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, 2012 and December 31, 2011.

			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2012
Impaired loans	$	5,948	$	—	$	—	$	5,948
December 31, 2011
Impaired loans	$	9,587	$	—	$	—	$	9,587

22

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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 an 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 or subsequently as deemed necessary and approved by management. Appraisals are reviewed for accuracy and consistency by the Credit Analysis department. Typically, appraisers are selected from the list of approved appraisers maintained by the Underwriting department. The appraised values may be reduced by discounts to consider a lack of marketability or 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 Credit Analysis department and approved by management.

Unobservable (Level 3) inputs

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

	Fair Value at June 30, 2012		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	5,948	Market comparable properties	Marketability discount		21	% - 41%  (27%)

23

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Fair Value of Financial Instruments

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2012.

		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)
Financial assets
Cash and cash equivalents	$23,670		$	23,670	$	—	$	—
Interest-earning time deposits	3,486			3,486		—		—
Held to maturity securities	259			—		259		—
Loans held for sale	2,726			—		2,777		—
Loans, net of allowance for loan losses	243,945			—		—		247,304
Federal Home Loan Bank stock	4,391			—		4,391		—
Interest receivable	764			—		764		—
Financial liabilities
Deposits	156,340			92,050		—		64,651
Federal Home Loan Bank advances	61,893			—		70,152		—
Interest payable	177			—		177		—

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Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than 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. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, we do not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.

	December 31, 2011
	Carrying Amount		Fair Value
Financial assets
Cash and cash equivalents	$	14,123	$	14,123
Interest-earning time deposits		21,146		21,146
Held to maturity securities		315		315
Loans held for sale		666		674
Loans, net of allowance for loan losses		243,663		245,377
Federal Home Loan Bank stock		4,391		4,391
Interest receivable		833		833
Financial liabilities
Deposits		161,364		164,968
Federal Home Loan Bank advances		65,860		74,229
Interest payable		226		226

The following methods and assumptions were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value.

Cash and Cash Equivalents, Interest-Earning Time Deposits, Federal Home Loan Bank Stock, Interest Receivable, Stock Conversion Related Liabilities and Interest Payable

The carrying amount approximates fair value.

Held to Maturity Securities

Fair values equal quoted market prices, if available. If quoted market prices are not available, fair value is estimated based on quoted market prices of similar securities.

Loans Held for Sale

Fair value is estimated using quoted market prices from the secondary market.

25

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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 demand deposits, 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 us 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

Loan commitments and letters-of-credit generally have short-term, variable rate features and contain clauses which limit our exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.

Note 7: Earnings Per Share

	Three Months Ended			Six Months Ended
	June 30, 2012			June 30, 2012
Basic and diluted
Earnings:
Net Income	$	511		$	802
Shares:
Weighted average common shares outstanding		2,501			2,501
Less: Average unallocated ESOP shares		(188	)		(188	)
Average shares		2,313			2,313
Net income per common share, basic and diluted	$	0.22		$	0.35

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Management’s discussion and analysis of the financial condition and results of operations at and for three months and six months ended June 30, 2012 and 2011 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto, appearing on Part I, Item 1 of this quarterly report on Form 10-Q.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:

• statements of our goals, intentions and expectations;

• statements regarding our business plans, prospects, growth and operating strategies;

• statements regarding the asset quality of our loan and investment portfolios; and

• estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this quarterly report.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

• general economic conditions, either nationally or in our market areas, that are worse than expected;

• competition among depository and other financial institutions;

• changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;

• adverse changes in the securities markets;

• changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;

• our ability to enter new markets successfully and capitalize on growth opportunities;

• our ability to successfully integrate acquired entities, if any;

• changes in consumer spending, borrowing and savings habits;

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• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;

• changes in our organization, compensation and benefit plans;

• changes in our financial condition or results of operations that reduce capital; and

• changes in the financial condition or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

Critical Accounting Policies

We consider accounting policies that require management to exercise significant judgment or discretion or make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income, to be critical accounting policies. We consider the following to be our critical accounting policies.

Allowance for Loan Losses. We believe that the allowance for loan losses and related provision for loan losses are particularly susceptible to change in the near term, due to changes in credit quality which are evidenced by trends in charge offs and in the volume and severity of past due loans. In addition, our portfolio is comprised of a substantial amount of commercial real estate loans which generally have greater credit risk than one- to four-family residential mortgage and consumer loans because these loans generally have larger principal balances and are non-homogenous.

The allowance for loan losses is maintained at a level to cover probable credit losses inherent in the loan portfolio at the balance sheet date. Based on our estimate of the level of allowance for loan losses required, we record a provision for loan losses as a charge to earnings to maintain the allowance for loan losses at an appropriate level. The estimate of our credit losses is applied to two general categories of loans:

• loans that we evaluate individually for impairment under ASC 310-10, “Receivables;” and

• groups of loans with similar risk characteristics that we evaluate collectively for impairment under ASC 450-20, “Loss Contingencies.”

The allowance for loan losses is evaluated on a regular basis by management and reflects consideration of all significant factors that affect the collectability of the loan portfolio. The factors used to evaluate the collectability of the loan portfolio include, but are not limited to, current economic conditions, our historical loss experience, the nature and volume of the loan portfolio, the financial strength of the borrower, and estimated value of any underlying collateral. This evaluation is inherently subjective as it requires estimates that are subject to significant revision as more information becomes available. Actual loan losses may be significantly more than the allowance for loan losses we have established which could have a material negative effect on our financial results. See also “Business of Wolverine Bank—Allowance for Loan Losses.”

Income Tax Accounting. The provision for income taxes is based upon income in our consolidated financial statements, rather than amounts reported on our income tax return. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on our deferred tax assets and liabilities is recognized as income or expense

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in the period that includes the enactment date. Under U.S. GAAP, a valuation allowance is required to be recognized if it is more likely than not that a deferred tax asset will not be realized. The determination as to whether we will be able to realize the deferred tax assets is highly subjective and dependent upon judgment concerning our evaluation of both positive and negative evidence, our forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. Positive evidence includes the existence of taxes paid in available carryback years as well as the probability that taxable income will be generated in future periods, while negative evidence includes any cumulative losses in the current year and prior two years and general business and economic trends. Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets. Any required valuation allowance would result in additional income tax expense in the period and could have a significant impact on our future earnings. Positions taken in our tax returns may be subject to challenge by the taxing authorities upon examination. The benefit of an uncertain tax position is initially recognized in the financial statements only when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. Differences between our position and the position of tax authorities could result in a reduction of a tax benefit or an increase to a tax liability, which could adversely affect our future income tax expense.

We believe our tax policies and practices are critical accounting policies because the determination of our tax provision and current and deferred tax assets and liabilities have a material impact on our net income and the carrying value of our assets. We believe our tax liabilities and assets are properly recorded in the consolidated financial statements at June 30, 2012 and December 31, 2011 and no valuation allowance was necessary.

Comparison of Financial Condition at June 30, 2012 and December 31, 2011

Total assets decreased $6.5 million, or 2.2%, to $287.2 million at June 30, 2012 from $293.7 million at December 31, 2011. The decrease was primarily the result of paying off maturing Federal Home Loan Bank advances, a decrease in customer deposits, and a reduction in interest bearing time deposits.

Cash and cash equivalents increased $9.6 million, or 68.1%, to $23.7 million at June 30, 2012 from $14.1 million at December 31, 2011, and interest-earning time deposits decreased $17.7 million, or 83.4%, to $3.5 million at June 30, 2012 from $21.1 million at December 31, 2011. The net increase in cash and cash equivalents was primarily the result of funds received from the maturing of interest-earning time deposits which were used to pay down Federal Home Loan Bank advances and customer certificates of deposits.

Net loans increased $282,000, or 0.2%, to $243.9 million at June 30, 2012 from $243.7 million at December 31, 2011 as our construction loans decreased $3.3 million, or 16.9%, one-to four-family residential real estate loans decreased $8.0 million, or 11.8%, and our home equity loans decreased $2.0 million, or 15.0%. These were offset by an increase in our commercial real estate loans of $7.1 million, or 7.9% and decreases in our undisbursed loan funds and allowance for loan losses of $3.3 million, or 29.6%, and $3.0 million, or 31.6%, respectively.

The decrease in our allowance for loan losses was due to the March 31, 2012 charging off of $3.8 million of specific reserves on collateral-dependent impaired loans. These charge offs were considered confirmed losses and the majority of the charge offs were based on recent appraisal values or evaluations. The allowance for loan losses as a percentage of total loans decreased to 2.5% as of June 30, 2012, from 3.7% at December 31, 2011. However, we feel we are adequately covered because of the aforementioned charge offs taken during the three months ended March 31, 2012.

Securities held to maturity, consisting of one municipal security at June 30, 2012 decreased $56,000, or 17.8%, to $259,000 from $315,000 at December 31, 2011 due to paydowns.

29

Other real estate owned decreased $360,000, or 28.6%, to $1.0 million at June 30, 2012, from $1.4 million at December 31, 2011. The decrease in other real estate owned resulted from sales of $537,000 and write-downs of $45,000, offset by new foreclosures of $222,000.

Other assets, consisting primarily of prepaid FDIC assessments and deferred federal taxes, decreased $223,000, or 3.5%, to $5.5 million at June 30, 2012, from $5.7 million at December 31, 2011. The decrease was primarily attributable to a net decrease in our deferred and accrued federal income taxes of $418,000.

Deposits decreased by $5.1 million, or 3.2%, to $156.3 million at June 30, 2012 from $161.4 million at December 31, 2011. Certificates of deposit decreased $7.3 million, or 10.2%, to $64.3 million at June 30, 2012 from $71.6 million at December 31, 2011. Our core deposits (consisting of interest-bearing and noninterest-bearing checking accounts, money market accounts and savings accounts) increased by $2.2 million, or 2.4%, to $92.0 million at June 30, 2012 from $89.8 million at December 31, 2011. The increase in our core deposits resulted primarily from continuing to build relationships with our existing customers as well as our marketing efforts for new customers.

Federal Home Loan Bank advances decreased $4.0 million to $61.9 million at June 30, 2012 from $65.9 million at December 31, 2011 as a result of paying off maturing advances.

Interest payable and other liabilities, consisting mainly of liabilities for checks and money orders and accrued expenses, increased $1.8 million, or 120.0% to $3.3 million at June 30, 2012, from $1.5 million at December 31, 2011. The increase was primarily due to a $641,000 increase in our liability for checks and money orders and a $1.0 million increase in borrowers’ prepaid taxes and insurances.

Total stockholders’ equity increased $689,000, or 1.1%, to $65.7 million at June 30, 2012 from $65.0 million at December 31, 2011 primarily due to net income of $802,000. This was offset by purchases of 7,276 shares of Wolverine Bancorp, Inc. common stock, totaling $113,000 pursuant to our announced stock repurchase program which was approved by our Board of Directors on February 14, 2012.

Comparison of Operating Results for the Three Months Ended June 30, 2012 and 2011

General. We recorded net income of $511,000 for the three months ended June 30, 2012 compared to net income of $244,000 for the three months ended June 30, 2011. The increase in our net income is primarily due to an increase in our net interest income of $252,000 to $2.5 million for the three months ended June 30, 2012 from $2.3 million for the three months ended June 30, 2011. In addition to this, we had an increase in our net gains on loans sales of $351,000 and a decrease in our provision for loan loss expense of $100,000. These were offset by an increase in our salaries and employee benefits of $218,000.

Interest and Dividend Income. Interest and dividend income decreased slightly by $78,000, or 2.2%, to $3.5 million for the three months ended June 30, 2012, as the average balance of interest-earning assets decreased $19.9 million to $277.4 million for the three months ended June 30, 2012 from $297.3 million for the three months ended June 30, 2011 which was partially offset by an increase in the average yield on interest-earning assets of 24 basis points to 5.08% during the 2012 period from 4.84% during the 2011 period. The increase in our average yield on interest-earning assets was due primarily to an increase in net loans and a decrease in lower yielding other interest-earning assets.

The biggest component of the decrease in average interest-earning assets was in other interest-earning assets, consisting of interest-earning overnight funds and time deposits, which decreased $26.5 million, or 51.9%, to $24.6 million for the three months ended June 30, 2012 from $51.1 million for the three months ended June 30, 2011. Although the average yield on this investment type increased 2 basis points from 0.39% to 0.41%, the decrease in the average balance resulted in a $25,000 decrease in interest income from other interest-earning assets to $25,000 for the three months ended June 30, 2012 from $50,000 for the three months ended June 30, 2011.

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Average net loans increased $6.8 million, or 2.8%, to $248.1 million for the three months ended June 30, 2012 from $241.3 million for the three months ended June 30, 2011. Interest income on loans decreased slightly by $57,000, or 1.6%, to $3.5 million for the three months ended June 30, 2012, as the average yield on loans decreased 25 basis points to 5.58% for the three months ended June 30, 2012 from 5.83% for the three months ended June 30, 2011 reflecting the lower market interest rate environment.

Interest Expense. Interest expense decreased $330,000, or 25.3%, to $974,000 for the three months ended June 30, 2012 from $1.3 million for the three months ended June 30, 2011, as the average balance of interest-bearing liabilities decreased $23.4 million, or 9.7%, to $218.0 million for the three months ended June 30, 2012 from $241.4 million for the three months ended June 30, 2011, and the average rate we paid on these liabilities decreased 37 basis points to 1.79% from 2.16%. The biggest component of the decrease was interest expense on Federal Home Loan Bank advances which decreased $200,000, or 23.9%, to $640,000 for the three months ended June 30, 2012 from $840,000 for the three months ended June 30, 2011. This resulted from a $9.9 million decrease in the average balance of Federal Home Loan Bank advances to $61.9 million for the three months ended June 30, 2012 from $71.8 million for the three months ended June 30, 2011 and a 55 basis point decrease in the average rate paid on borrowing from 4.68% for the three months ended June 30, 2011 to 4.13% for the three months ended June 30, 2012. The decrease in the average balance of these borrowings was due to our strategy of not renewing our maturing advances and paying them off when they come due.

Interest expense on certificates of deposits decreased $108,000 or 28.8% to $267,000 for the three months ended June 30, 2012 from $375,000 for the three months ended June 30, 2011. This is primarily due to a decrease in the average balance of certificates of deposits of $13.8 million to $65.4 million for the 2012 period, from $79.2 million for the 2011 period. The decrease in the balance of certificates of deposits was primarily due to a decrease in rates paid on these deposits in the continuing low interest rate environment. Additionally, the yield on certificates of deposit decreased 27 basis points to 1.63% for the 2012 period from 1.90% for the 2011 period.

The average balance of our core deposits, consisting of checking accounts, money market accounts and savings accounts, increased $305,000, or 0.3%, to $90.7 million for the three months ended June 30, 2012 from $90.4 million for the three months ended June 30, 2011. However, the interest on core deposits decreased $22,000 to $67,000 for the 2012 period from $89,000 for the 2011 period, as the yield on these deposits for the three months ended June 30, 2012 decreased 9 basis points, or 24.7%, to 0.30% from 0.39% for the three months ended June 30, 2011.

Interest expense on borrowed funds, consisting entirely of Federal Home Loan Bank advances, decreased $200,000, or 23.9%, to $640,000 for the three months ended June 30, 2012 from $840,000 for the three months ended June 30, 2011, as our average balance of our borrowings decreased $9.9 million and the average rate paid decreased 55 basis points to 4.13% from 4.68%. The decrease in the rate is due to two restructures of outstanding advances. First, in the third quarter of 2011, we restructured $18.0 million of outstanding advances under the Federal Home Loan Bank of Indianapolis’ ‘blend and extend’ program, costing 3.78% with a weighted average remaining maturity of 19 months to 2.69% with a weighted average remaining maturity of 62 months. In addition, in the second quarter of 2012, we restructured $22.0 million of outstanding advances under the aforementioned program, costing 5.51% with a weighted average remaining maturity of 4 years to 4.22% with a weighted average remaining maturity of 9 years.

Net Interest Income. Net interest income increased $252,000, or 11.0%, to $2.5 million for the three months ended June 30, 2012 from $2.3 million for the three months ended June 30, 2011, as our average net interest-earning assets increased to $59.4 million from $55.9 million, our net interest rate

31

spread increased 61 basis points to 3.29% from 2.68% and our net interest margin increased 57 basis points to 3.55% from 2.98%. The increases in our net interest rate spread and net interest margin reflected the restructuring of FHLB advances; paying off of our maturing, higher interest rate FHLB advances; and managing the maturities of higher interest rate certificates of deposit, offset by our ongoing interest rate risk strategy of selling in the secondary market long-term, fixed-rate one- to four-family residential mortgage loans during the current low interest rate environment, and an increase in our average net loans.

Provision for Loan Losses. Based on our analysis of the factors described in “Critical Accounting Policies — Allowance for Loan Losses,” in our Annual Report on Form 10-K for 2011, we recorded a provision for loan losses of $300,000 for the three months ended June 30, 2012 and a provision for loan losses of $400,000 for the three months ended June 30, 2011. We have continued with additional provisions in 2012 because of elevated levels of non-performing assets, delinquencies and classified assets, as well as continued concerns about the Michigan economy, elevated levels of unemployment, and some declining collateral values. At June 30, 2012, non-performing loans totaled $11.2 million, or 4.6% of total loans, as compared to $14.6 million, or 6.0% of total loans, at June 30, 2011. The large decrease in non-performing loans is significantly due to the aforementioned charging off of the specific reserves which took place during the three months ended March 31, 2012.

The allowance for loan losses to total loans receivable decreased to 2.6% at June 30, 2012 from 4.0% at June 30, 2011. This ratio was at 3.7% at December 31, 2011. The decrease in our allowance for loan losses was primarily due to the charge off and elimination of all previously established specific valuation allowances, which totaled $3.8 million. We are not required to maintain an allowance for loan losses on these loans as the loan balance has already been written down to the estimated collateral values on our collateral dependent impaired loans. Therefore, the ratio of the allowance for loan losses to total loans and the ratio of the allowance for loan losses to non-performing loans has been adversely affected by these charge offs. Correspondingly, the amount of non-performing loans decreased from $16.0 million as of December 31, 2011 to $11.8 million as of March 31, 2012 primarily as a result of these charge offs.

All loans rated substandard are reviewed for impairment at least quarterly. Overall, management continues to focus on resolving non-performing assets and improving asset quality. In addition to our collections department personnel in working out loans, we continue to involve business development officers and, on significant assets, underwriters and senior management.

Noninterest Income. Noninterest income increased by $211,000, or 71.0%, to $508,000 for the three months ended June 30, 2012 from $297,000 for the three months ended June 30, 2011. The increase was primarily attributable to an increase of $351,000 in gain on sale of mortgage loans. This was offset by decreases in gross rental income on other real estate owned and net gain on other real estate owned of $34,000 and $51,000, respectively. These decreases were due to a decreased number of foreclosed rental properties and writedowns on current other real estate owned properties. There was also a decrease of $37,000 in loan fees earned. This is attributable to fees paid for mortgage loan processing services that are netted against loan fees earned.

Noninterest Expense. Noninterest expense increased by $157,000, or 8.6%, to $2.0 million for the three months ended June 30, 2012 from $1.8 million for the three months ended June 30, 2011. The increase was primarily due to an increase of $218,000 or 25.1% in salaries and employee benefits expense due to increased staff and new positions. This was offset by a decrease of $76,000 in other real estate owned expenses.

Income Tax Expense. We recorded $266,000 of income tax expense for the three months ended June 30, 2012 compared to $127,000 of income tax expense for the 2011 quarter. The income tax expense was a result of increased income before income tax expense of $776,000 during the three months ended June 30, 2012 as compared to $371,000 for the three months ended June 30, 2011. Our effective tax rate was 34.3% for both the three months ended June 30, 2012 and the three months ended June 30, 2011.

32

Comparison of Operating Results for the Six Months Ended June 30, 2012 and 2011

General. We recorded net income of $802,000 for the six months ended June 30, 2012 compared to net income of $446,000 for the six months ended June 30, 2011. Net interest income increased $560,000 to $5.1 million for the six months ended June 30, 2012 from $4.6 million for the six months ended June 30, 2011, and other noninterest income increased $264,000 to $1.0 million for the six months ended June 30, 2012 from $741,000 for the year earlier period.

Interest and Dividend Income. Interest and dividend income decreased slightly by $43,000, or 0.6%, to $7.1 million for the six months ended June 30, 2012 from $7.2 million for the six months ended June 30, 2011, as the average balance of interest-earning assets decreased $18.4 million to $279.6 million for the six months ended June 30, 2012 from $298.0 million for the six months ended June 30, 2011, and the average yield on interest-earning assets increased 29 basis points to 5.12% during the 2012 period from 4.83% during the 2011 period. The increase in our average yield on interest-earning assets was due primarily to an increase in net loans and a decrease in lower yielding other interest-earning assets.

The biggest component decrease in average interest-earning assets was in the other interest-earning assets category, consisting of interest-earning overnight funds and time deposits, which decreased $25.2 million, or 46.5% to $29.0 million for the six months ended June 30, 2012 from $54.2 million for the six months ended June 30, 2011. The average yield on these investments increased 6 basis points from 0.45% to 0.51%, resulting in a $49,000 decrease in interest income from other interest-earning assets to $73,000 for the six months ended June 30, 2012 from $122,000 for the six months ended June 30, 2011. This was offset by the increase in average net loans of $7.1 million or 3.0%, to $246.0 million for the six months ended June 30, 2012 from $238.9 million for the six months ended June 30, 2011.

Interest income on loans decreased slightly by $12,000, or 0.2%, to $7.0 million for the six months ended June 30, 2012 from $7.0 million for the six months ended June 30, 2011, as the average yield on loans decreased 18 basis points to 5.69% for the six months ended June 30, 2012 from 5.87% for the six months ended June 30, 2011 reflecting the lower market interest rate environment, and the average balance of loans increased $7.0 million, or 3.0%, to $245.9 million for the six months ended June 30, 2012 from $238.9 million for the six months ended June 30, 2011.

Interest income on investment securities and other interest-earning assets, and dividends on FHLB of Indianapolis stock decreased $31,000, or 16.4%, to $155,000 for the six months ended June 30, 2012 from $186,000 for the six months ended June 30, 2011. This decrease was primarily attributable to a decrease in the average balance of other interest-earning assets, consisting of interest-earning overnight funds, and time deposits and a decrease in the weighted average yield paid on these interest-earning assets. The average balance as of June 30, 2011 of other interest-earning assets was $59.1 million, compared to the average balance for the six months ended June 30, 2012 of $33.7 million. This decrease of $25.4 million represents a decrease of 42.9%. This shift in asset mix caused the weighted average yield paid on these interest-earning assets to increase 29 basis points to 0.92% for the 2012 period from 0.63% for the 2011 period.

Interest Expense. Interest expense decreased $603,000, or 23.0%, to $2.0 million for the six months ended June 30, 2012 from $2.6 million for the six months ended June 30, 2011, as the average balance of interest-bearing liabilities decreased $22.0 million, or 9.1%, to $220.7 million for the six months ended June 30, 2012 from $242.7 million for the six months ended June 30, 2011. The average rate we paid on these liabilities decreased 33 basis points to 1.83% from 2.16%. The biggest component of the decrease was interest expense on Federal Home Loan Bank advances which decreased $328,000, or 19.9%, to $1.3 million for the six months ended June 30, 2012 from $1.7 million for the six months ended June 30, 2011. This resulted from an $9.3 million decrease in the average balance of Federal Home Loan Bank advances to $62.5 million for the six

33

months ended June 30, 2012 from $71.8 million for the six months ended June 30, 2011 and a 37 basis point decrease in the average rate paid on borrowing from 4.60% for the six months ended June 30, 2011 to 4.23% for the six months ended June 30, 2012. The decrease in the average balance of these borrowings was due to our strategy of not renewing our maturing advances and paying them off when they come due. Additionally, the impact of restructuring our advances decreased the average yield from the 2011 period to the 2012 period.

The average balance of our core deposits, consisting of checking accounts, money market accounts and savings accounts, increased $1.0 million, or 1.2%, to $91.4 million for the six months ended June 30, 2012 from $90.4 million for the six months ended June 30, 2011. Also, the interest on core deposits decreased $46,000 to $140,000 for the 2012 period from $187,000 for the 2011 period.

Interest expense on certificates of deposits decreased $228,000 or 29.1% to $557,000 for the six months ended June 30, 2012 from $786,000 for the six months ended June 30, 2011. This is primarily due to a decrease in the average balance of certificates of deposits of $13.8 million to $66.7 million for the 2012 period, from $80.5 million for the 2011 period. The decrease in the balance of certificates of deposits was primarily due to a decrease in interest rates. Also the yield on certificates of deposit decreased 28 basis points to 1.67% for the 2012 period from 1.95% for the 2011 period.

Net Interest Income. Net interest income increased $560,000, or 12.2%, to $5.1 million for the six months ended June 30, 2012 from $4.6 million for the six months ended June 30, 2011, as our net interest-earning assets increased to $59.0 million from $55.4 million, our net interest rate spread increased 62 basis points to 3.29% from 2.67% and our net interest margin increased 60 basis points to 3.56% from 2.96%. The increases in our net interest rate spread and net interest margin reflected the restructuring of FHLB advances; paying off of our maturing, higher interest rate FHLB advances; and managing the maturities of higher interest rate certificates of deposit, offset by our ongoing interest rate risk strategy of selling in the secondary market long-term, fixed-rate one- to four-family residential mortgage loans during the current low interest rate environment.

Provision for Loan Losses. Based on our analysis of the factors described in “Critical Accounting Policies — Allowance for Loan Losses,” in the December 31, 2011 10-K, we recorded a provision for loan losses of $950,000 for the six months ended June 30, 2012 and a provision for loan losses of $760,000 for the six months ended June 30, 2011. We have continued with additional provisions in 2012 because of elevated levels of non-performing assets, delinquencies and classified assets, as well as continued concerns about the Michigan economy, elevated levels of unemployment, and some declining collateral values.

The allowance for loan losses as a percentage of non-performing loans decreased to 57.8% at June 30, 2012 from 69.2% at June 30, 2011. To the best of our knowledge, we have provided for all losses that are both probable and reasonable to estimate at June 30, 2012 and 2011.

Noninterest Income. Noninterest income increased by $264,000, or 35.6%, to $1.0 million for the six months ended June 30, 2012 from $741,000 for the six months ended June 30, 2011. The increase was primarily attributable to an increase of $559,000 in gain on sale of mortgage loans. This was offset by decreases in gross rental income on other real estate owned and net gain on other real estate owned of $90,000 and $138,000, respectively. These decreases were due to a decreased number of foreclosed rental properties and writedowns on current other real estate owned properties.

Noninterest Expense. Noninterest expense increased by $94,000, or 2.4%, to $4.0 million for the six months ended June 30, 2012 from $3.9 million for the six months ended June 30, 2011. The increase was primarily due to an increase of $446,000 or 25.9% in salaries and employee benefits expense due to increased staff and new positions. This was offset by a decrease of $402,000 in other real estate owned expenses due to a decrease in foreclosed properties.

Income Tax Expense. We recorded a $418,000 income tax expense for the six months ended June 30, 2012 compared to a $234,000 income tax expense for the 2011 period, reflecting the income of $1.2 million before income tax expense during the six months ended June 30, 2012 versus income before

34

income tax of $680,000 for the six months ended June 30, 2011. Our effective tax expense rate was 34.3% for the six months ended June 30, 2012 compared to an effective tax expense rate of 34.4% for the six months ended June 30, 2011.

Asset Quality

Other real estate owned totaled $1.0 million, or 0.35% of total assets, at June 30, 2012 as compared to $2.0 million, or 0.7% of total assets, at June 30, 2011. The largest relationship as of June 30, 2012 was $215,000, or 21.4% of other real estate owned, which consisted of two single family homes. This relationship was also the largest other real estate owned relationship at December 31, 2011.

Non-performing assets, which includes non-performing loans, other real estate owned and troubled debt restructurings, totaled $12.3 million, or 4.6% of total assets, at June 31, 2012 as compared to $16.6 million, or 5.4% of total assets, at June 30, 2011.

The largest substandard relationship as of June 30, 2012 has a total balance of $4.3 million. Of the $19.6 million loans rated substandard, approximately $9.3 million are performing.

At June 30, 2012, we had 7 loans, totaling $3.5 million, for which we had temporarily extended the maturities while working on the loan renewal process. During the renewal process, the borrowers continue repayment according to the original loan terms which are at market interest rates. The largest loan had an outstanding principal balance of $3.0 million and was intended to be paid off. The renewal loan has since been approved as a short-term renewal and is expected to close in the period ending September 30, 2012. Of the remaining loans, one was classified as substandard, totaling $106,000. At June 30, 2012, none of these loans was considered a troubled debt restructuring, and all of these loans were considered performing at June 30, 2012.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable, as the Registrant is a smaller reporting company.

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer and the Chief Operating Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of June 30, 2012. Based on that evaluation, our management, including the Chief Executive Officer and the Chief Operating Officer and Treasurer, concluded that our disclosure controls and procedures were effective.

During the quarter ended June 30, 2012, there have been no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

35

Part II – Other Information

Item 1. Legal Proceedings

We are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on our financial condition or results of operations.

Item 1A. Risk Factors

Not applicable, as the Registrant is a smaller reporting company.

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

(a) There were no sales of unregistered securities during the period covered by this Report.

(b) Not applicable.

(c) The following table presents for the periods indicated a summary of the purchases made by or on behalf of Wolverine Bancorp, Inc. of shares of its common stock.

					Total Number of		Maximum Number of
	Total				Shares Purchased as		Shares that May Yet
	Number of		Average Price		Part of Publicly		Be Purchased Under
	Shares		Paid		Announced Plans or		the Plans or
Period	Purchased		per Share		Programs		Programs (1)
April 1, 2012 through April 30, 2012		3,285	$	15.50		3,285		118,899
May 1, 2012 through May 31, 2012		—	$	—		—		118,899
June 1, 2012 through June 30, 2012		800	$	15.60		800		118,099
		4,085				4,085

⁽¹⁾ The Company’s board of directors approved a stock repurchase program on February 14, 2012 for the repurchase of 125,375 shares of common stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	INS XBRL Instance
101	SCH XBRL Taxonomy Extension Schema
101	CAL XBRL Taxonomy Extension Calculation
101	DEF XBRL Taxonomy Extension Definition
101	LAB XBRL Taxonomy Extension Label
101	PRE XBRL Taxonomy Extension Presentation

36

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.

	WOLVERINE BANCORP, INC.
Date: August 14, 2012	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer
Date: August 14, 2012	/s/ Rick A. Rosinski
	Rick A. Rosinski
	Chief Operating Officer and Treasurer

37

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David H. Dunn, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Wolverine Bancorp, Inc.;

2. Based on my knowledge, this 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 report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this 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 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(e) and 15(d)-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-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 subsidiary, is made known to us by others within those entities, particularly during the period in which this 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 report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably 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 the Bank’s 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:

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.

Date: August 14, 2012	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Rick A. Rosinski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Wolverine Bancorp, Inc.;

2. Based on my knowledge, this 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 report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this 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 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(e) and 15(d)-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-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 subsidiary, is made known to us by others within those entities, particularly during the period in which this 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 report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent financial quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably 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 the Bank’s 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:

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.

Date: August 14, 2012	/s/ Rick A. Rosinski
	Rick A. Rosinski
	Chief Operating Officer and Treasurer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

David H. Dunn, President and Chief Executive Officer of Wolverine Bancorp, Inc., (the “Company”) and Rick A. Rosinski, Chief Operating Officer and Treasurer of the Company, each certify in his capacity as an officer of the Company that he has reviewed the quarterly report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”) and that to the best of his knowledge:

1. the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Date: August 14, 2012	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer
Date: August 14, 2012	/s/ Rick A. Rosinski
	Rick A. Rosinski
	Chief Operating Officer and Treasurer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings:
Net income	$ 511	$ 244	$ 802	$ 446
Shares:
Weighted average common shares outstanding	2,501		2,501
Less: Average unallocated ESOP shares	(188)		(188)
Average shares	2,313		2,313
Net income per common share, basic and diluted	$ 0.22		$ 0.35

XML

Loans and Allowance for Loan Losses (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	$ 258,757	$ 264,804	$ 10,138
Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	60,260	68,287	1,971
Real estate home equity loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	11,532	13,572	337
Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	96,552	89,463	3,608
Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	52,863	51,411	1,894
Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	12,508	13,445	1,685
Commercial mortgage construction loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	16,378	19,704	389
Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	7,507	7,675	220
Commercial mortgage consumer loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	1,157	1,247	34
Pass [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	198,269	202,753
Pass [Member] | Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	54,357	61,574
Pass [Member] | Real estate home equity loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	11,452	13,331
Pass [Member] | Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	69,611	63,107
Pass [Member] | Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	34,792	34,012
Pass [Member] | Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	3,816	3,043
Pass [Member] | Commercial mortgage construction loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	16,378	19,410
Pass [Member] | Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	6,732	7,034
Pass [Member] | Commercial mortgage consumer loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	1,131	1,242
Pass Closely Monitored [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	24,990	19,188
Pass Closely Monitored [Member] | Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	3,190	3,387
Pass Closely Monitored [Member] | Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	11,282	9,136
Pass Closely Monitored [Member] | Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	8,208	5,581
Pass Closely Monitored [Member] | Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	1,979	797
Pass Closely Monitored [Member] | Commercial mortgage construction loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable		120
Pass Closely Monitored [Member] | Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	305	162
Pass Closely Monitored [Member] | Commercial mortgage consumer loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	26	5
Special Mention [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	15,932	16,774
Special Mention [Member] | Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	658	508
Special Mention [Member] | Real estate home equity loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	4	35
Special Mention [Member] | Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	9,479	8,512
Special Mention [Member] | Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	5,457	6,043
Special Mention [Member] | Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	237	1,572
Special Mention [Member] | Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	97	104
Substandard [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	19,566	26,089
Substandard [Member] | Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	2,055	2,818
Substandard [Member] | Real estate home equity loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	76	206
Substandard [Member] | Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	6,180	8,708
Substandard [Member] | Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	4,406	5,775
Substandard [Member] | Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	6,476	8,033
Substandard [Member] | Commercial mortgage construction loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable		174
Substandard [Member] | Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable	373	375
Doubtful [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Real estate home equity loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Commercial mortgage construction loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Doubtful [Member] | Commercial mortgage consumer loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Real estate one to four family loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Real estate home equity loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Commercial real estate loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Commercial mortgage multifamily loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Commercial mortgage land loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Commercial mortgage construction loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Commercial nonmortgage loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable
Loss [Member] | Commercial mortgage consumer loans [Member]
Credit risk profile of our loan portfolio based on rating category and payment activity
Financing Receivable, Recorded Investment, Loans Receivable

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Plan of Conversion and Change in Corporate Form

6 Months Ended

Jun. 30, 2012

Plan of Conversion and Change in Corporate Form [Abstract]

Plan of Conversion and Change in Corporate Form

Note 2: Plan of Conversion and Change in Corporate Form

On January 19, 2011, the Bank converted to a stock savings bank structure and established the Company, as the parent holding company of the Bank. In connection with the conversion, 2,507,500 shares of the Company’s common stock were issued at $10.00 per share for total gross offering proceeds of $25.1 million. Expenses related to the offering were approximately $1.3 million. In addition, the Bank’s Board of Directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering, for a total of $2.0 million. The Company is incorporated under the laws of the State of Maryland and owns all of the outstanding common stock of the Bank.

The common stock began trading on the NASDAQ Capital Market on January 20, 2011 under the symbol “WBKC”.

In accordance with Office of Thrift Supervision (“OTS”) regulations, at the time of the completion of the Bank’s mutual to stock conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders and supplemental eligible account holders who continue to maintain their accounts at the Bank after conversion. The liquidation account will be reduced annually to the extent that eligible account holders and supplemental eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s or and supplemental eligible account holder's interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. We may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. The initial liquidation account amount was $41.7 million.

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Loans and Allowances for Loan Losses (Details Textual)	6 Months Ended
	Jun. 30, 2012
Loans and Allowance for Loan Losses (Textual) [Abstract]
Maximum period for construction loans	9 months
Percentage of construction loans for commercial real estate of loan-to-completed appraised value ratio	75.00%
Charge off of one-to-four family first and junior lien mortgages to the net realizable value less costs to sell	180 days
Period for charge off of unsecured open end loans	180 days
Period for charge down of secured loans to net realizable value	90 days
Period for discontinuation of Accrual of interest on all loan classes	6 months
Charge down to the net realizable value	other secured loans are 120 days past due
Minimum Realizable period for new loan into accrual status under performance with new loan terms	6 months
Minimum period for realizable of Troubled Debt Restructuring loans into nonaccrual status or default loans	90 days

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Loans and Allowances for Loan Losses (Details 5) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012 Loan	Jun. 30, 2012 Loan
Summary of loans that have been restructured as TDRs
Count	1	3
Balance prior to TDR	$ 98	$ 237
Balance after TDR	101	246
Commercial real estate [Member]
Summary of loans that have been restructured as TDRs
Count	1	3
Balance prior to TDR	98	237
Balance after TDR	$ 101	$ 246

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Disclosures About Fair Value of Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Significant Unobservable Inputs (Level 3) [Member]
Summary of fair value measurements of assets and liabilities on nonrecurring basis
Impaired Loans	$ 5,948
Fair Value, Measurements, Nonrecurring [Member]
Summary of fair value measurements of assets and liabilities on nonrecurring basis
Impaired Loans	5,948	9,587
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Summary of fair value measurements of assets and liabilities on nonrecurring basis
Impaired Loans
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Summary of fair value measurements of assets and liabilities on nonrecurring basis
Impaired Loans
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Summary of fair value measurements of assets and liabilities on nonrecurring basis
Impaired Loans	$ 5,948	$ 9,587

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Disclosures About Fair Value of Assets and Liabilities (Details 1) (Significant Unobservable Inputs (Level 3) [Member], USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will
Collateral-dependent impaired loans	$ 5,948
Valuation Technique	Market comparable properties
Unobservable Inputs	Marketability discount
Maximum [Member]
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will
Range (Weighted Average)	41.00%
Minimum [Member]
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will
Range (Weighted Average)	21.00%
Weighted Average [Member]
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will
Range (Weighted Average)	(27.00%)

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Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis of Presentation [Abstract]

Basis of Presentation

Note 1: Basis of Presentation

The unaudited condensed consolidated financial statements of Wolverine Bancorp, Inc. (the “Company”), the holding company of Wolverine Bank (the “Bank”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) believed necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of December 31, 2011 has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto filed as part of our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 31, 2012.

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Disclosures About Fair Value of Assets and Liabilities (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Financial assets
Cash and cash equivalents	$ 23,670	$ 14,123
Interest-earning time deposits	3,486	21,146
Held to maturity securities	259	315
Loans held for sale	2,726	666
Loans, net of allowance for loan losses	243,945	243,663
Federal Home Loan Bank stock	4,391	4,391
Interest receivable fair value disclosure	764	833
Financial liabilities
Deposits	156,340	161,364
Federal Home Loan Bank advances	61,893	65,860
Interest Payable fair value disclosure	177	226
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets
Cash and cash equivalents		14,123
Interest-earning time deposits		21,146
Held to maturity securities		315
Loans held for sale		674
Loans, net of allowance for loan losses		245,377
Federal Home Loan Bank stock		4,391
Interest receivable fair value disclosure		833
Financial liabilities
Deposits		164,968
Federal Home Loan Bank advances		74,229
Interest Payable fair value disclosure		226
Estimate of Fair Value, Fair Value Disclosure [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets
Cash and cash equivalents	23,670
Interest-earning time deposits	3,486
Financial liabilities
Deposits	92,050
Estimate of Fair Value, Fair Value Disclosure [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets
Held to maturity securities	259
Loans held for sale	2,777
Federal Home Loan Bank stock	4,391
Interest receivable fair value disclosure	764
Financial liabilities
Federal Home Loan Bank advances	70,152
Interest Payable fair value disclosure	177
Estimate of Fair Value, Fair Value Disclosure [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets
Loans, net of allowance for loan losses	247,304
Financial liabilities
Deposits	$ 64,651

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Assets
Cash and due from banks	$ 391	$ 454
Interest-earning demand deposits	23,279	13,669
Cash and cash equivalents	23,670	14,123
Interest-earning time deposits	3,486	21,146
Held to maturity securities	259	315
Loans held for sale	2,726	666
Loans, net of allowance for loan losses of $6,500 and $9,503	243,945	243,663
Premises and equipment, net	1,515	1,503
Federal Home Loan Bank stock	4,391	4,391
Other real estate owned	1,006	1,365
Accrued interest receivable	764	833
Other assets	5,454	5,677
Total assets	287,216	293,682
Liabilities
Deposits	156,340	161,364
Federal Home Loan Bank advances	61,893	65,860
Interest payable and other liabilities	3,317	1,481
Total liabilities	221,550	228,705
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 par value per share: Issued and outstanding - 2,500,224 and 2,507,500 at June 30, 2012 and December 31, 2011	25	25
Additional paid-in capital	23,693	23,806
Unearned employee stock ownership plan (ESOP)	(1,906)	(1,906)
Retained earnings	43,854	43,052
Total stockholders' equity	65,666	64,977
Total liabilities and stockholders' equity	$ 287,216	$ 293,682

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Condensed Consolidated Statement of Changes in Stockholders' Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Unearned ESOP Shares [Member]	Retained Earnings [Member]
Balances at Dec. 31, 2011	$ 64,977	$ 25	$ 23,806	$ (1,906)	$ 43,052
Net income	802				802
Purchase of 7,276 shares of common stock	(113)		(113)
Balances at Jun. 30, 2012	$ 65,666	$ 25	$ 23,693	$ (1,906)	$ 43,854

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Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Summary of amortized cost and fair value of held to maturity securities by contractual maturity
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	259
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount
Held-to-maturity Securities, Amortized Cost, Total	259
Held-to-maturity Securities, Debt Maturities, Remainder of Fiscal Year, Fair Value
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value	259
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value
Held-to-maturity Securities, Fair Value, Total	$ 259

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Loans and Allowance for Loan Losses (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Allowance for loan losses:
Balance, beginning of year	$ 6,258	$ 9,732	$ 9,503	$ 9,775	$ 9,775
Provision charged to expense		400	950	760	1,385
Allowance for Loan and Lease Losses, Provision for Loss, Gross	300
Losses charged off	(101)	(2)	(4,045)	(409)	(1,675)
Recoveries	43	8	92	12	18
Balance, end of period	6,500	10,138	6,500	10,138	9,503
Ending Balance: individually evaluated for impairment	300		300		3,812
Ending balance: collectively evaluated for impairment	6,200		6,200		5,691
Loans:
Ending Balance	258,757	10,138	258,757	10,138	264,804
Ending Balance: individually evaluated for impairment	24,125		24,125		31,960
Ending Balance: collectively evaluated for impairment	234,632		234,632		232,844
Real estate one to four family loans [Member]
Allowance for loan losses:
Balance, beginning of year	1,590	2,010	1,580	2,079	2,079
Provision charged to expense		(41)
Allowance for Loan and Lease Losses, Provision for Loss, Gross	(77)		(26)	(71)	(166)
Losses charged off			(61)	(39)	(335)
Recoveries	1	2	21	2	2
Balance, end of period	1,514	1,971	1,514	1,971	1,580
Ending Balance: individually evaluated for impairment					111
Ending balance: collectively evaluated for impairment	1,514		1,514		1,469
Loans:
Ending Balance	60,260	1,971	60,260	1,971	68,287
Ending Balance: individually evaluated for impairment	2,428		2,428		3,314
Ending Balance: collectively evaluated for impairment	57,832		57,832		64,973
Real estate home equity loans [Member]
Allowance for loan losses:
Balance, beginning of year	316	311	290	313	313
Provision charged to expense		26
Allowance for Loan and Lease Losses, Provision for Loss, Gross	(27)		(16)	24	138
Losses charged off					(161)
Recoveries	16		16
Balance, end of period	290	337	290	337	290
Ending Balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	290		290		290
Loans:
Ending Balance	11,532	337	11,532	337	13,572
Ending Balance: individually evaluated for impairment	76		76		327
Ending Balance: collectively evaluated for impairment	11,456		11,456		13,245
Commercial real estate loans [Member]
Allowance for loan losses:
Balance, beginning of year	2,250	3,661	3,462	3,914	3,914
Provision charged to expense		(55)
Allowance for Loan and Lease Losses, Provision for Loss, Gross	17		216	58	328
Losses charged off		(2)	(1,253)	(369)	(785)
Recoveries		4		5	5
Balance, end of period	2,425	3,608	2,425	3,608	3,462
Ending Balance: individually evaluated for impairment	1		1		1,538
Ending balance: collectively evaluated for impairment	2,424		2,424		1,924
Loans:
Ending Balance	96,552	3,608	96,552	3,608	89,463
Ending Balance: individually evaluated for impairment	6,536		6,536		9,206
Ending Balance: collectively evaluated for impairment	90,016		90,016		80,257
Commercial mortgage multifamily loans [Member]
Allowance for loan losses:
Balance, beginning of year	1,222	1,913	1,933	1,765	1,765
Provision charged to expense		(19)
Allowance for Loan and Lease Losses, Provision for Loss, Gross	64		583	129	168
Losses charged off			(1,241)
Recoveries	41		52
Balance, end of period	1,327	1,894	1,327	1,894	1,933
Ending Balance: individually evaluated for impairment					829
Ending balance: collectively evaluated for impairment	1,247		1,247		1,104
Loans:
Ending Balance	52,863	1,894	52,863	1,894	51,411
Ending Balance: individually evaluated for impairment	8,153		8,153		9,854
Ending Balance: collectively evaluated for impairment	44,710		44,710		41,557
Commercial mortgage land loans [Member]
Allowance for loan losses:
Balance, beginning of year	278	1,141	1,622	1,036	1,036
Provision charged to expense		544
Allowance for Loan and Lease Losses, Provision for Loss, Gross	136		178	648	973
Losses charged off	(100)		(1,486)		(391)
Recoveries				1	4
Balance, end of period	314	1,685	314	1,685	1,622
Ending Balance: individually evaluated for impairment	299		299		1,332
Ending balance: collectively evaluated for impairment	15		15		290
Loans:
Ending Balance	12,508	1,685	12,508	1,685	13,445
Ending Balance: individually evaluated for impairment	6,559		6,559		8,710
Ending Balance: collectively evaluated for impairment	5,949		5,949		4,735
Commercial mortgage construction loans [Member]
Allowance for loan losses:
Balance, beginning of year	390	405	423	367	367
Provision charged to expense		(16)
Allowance for Loan and Lease Losses, Provision for Loss, Gross	21		(10)	22	56
Losses charged off			(2)
Balance, end of period	411	389	411	389	423
Ending Balance: individually evaluated for impairment					2
Ending balance: collectively evaluated for impairment	411		411		421
Loans:
Ending Balance	16,378	389	16,378	389	19,704
Ending Balance: individually evaluated for impairment					174
Ending Balance: collectively evaluated for impairment	16,378		16,378		19,530
Commercial nonmortgage loans [Member]
Allowance for loan losses:
Balance, beginning of year	184	262	165	269	269
Provision charged to expense		(42)
Allowance for Loan and Lease Losses, Provision for Loss, Gross	5		24	(49)	(104)
Balance, end of period	189	220	189	220	165
Ending Balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	189		189		165
Loans:
Ending Balance	7,507	220	7,507	220	7,675
Ending Balance: individually evaluated for impairment	373		373		375
Ending Balance: collectively evaluated for impairment	7,134		7,134		7,300
Commercial mortgage consumer loans [Member]
Allowance for loan losses:
Balance, beginning of year	28	29	28	32	32
Provision charged to expense		3
Allowance for Loan and Lease Losses, Provision for Loss, Gross	2		1	(1)	(8)
Losses charged off	(1)		(2)	(1)	(3)
Recoveries	1	2	3	4	7
Balance, end of period	30	34	30	34	28
Ending Balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	30		30		28
Loans:
Ending Balance	1,157	34	1,157	34	1,247
Ending Balance: individually evaluated for impairment
Ending Balance: collectively evaluated for impairment	$ 1,157		$ 1,157		$ 1,247

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Condensed Consolidated Statement of Changes in Stockholders' Equity (Parenthetical)	6 Months Ended
	Jun. 30, 2012
Condensed Consolidated Statement of Changes in Stockholders' Equity [Abstract]
Purchase of common stock, shares	7,276

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]
Allowance for loan losses	$ 6,500	$ 9,503
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	2,500,224	2,507,500
Common stock, shares outstanding	2,500,224	2,507,500

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans and Allowance for Loan Losses [Abstract]

Summary of loans by categories of loans class

	June 30,		December 31,
	2012		2011
Real Estate
One-to four-family	$	60,260	$	68,287
Home equity		11,532		13,572
Commercial mortgage loans
Commercial real estate		96,552		89,463
Multifamily		52,863		51,411
Land		12,508		13,445
Construction		16,378		19,704
Commercial Non-mortgage		7,507		7,675
Consumer		1,157		1,247
Total loans		258,757		264,804
Less
Net deferred loan fees, premiums and discounts		432		440
Undisbursed portion of loans		7,880		11,198
Allowance for loan losses		6,500		9,503
Net loans	$	243,945	$	243,663

Financing receivables and allowance for credit losses on financing receivables

Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily			Land			Construction			Commercial Non- Mortgage		Consumer			Total
Year to date analysis as of June 30, 2012
Allowance for loan losses:
Balance, beginning of year	$	1,580		$	290		$	3,462		$	1,933		$	1,622		$	423		$	165	$	28		$	9,503
Provision charged to expense		(26	)		(16	)		216			583			178			(10	)		24		1			950
Losses charged off		(61	)		—			(1,253	)		(1,241	)		(1,486	)		(2	)		—		(2	)		(4,045	)
Recoveries		21			16			—			52			—			—			—		3			92
Balance, end of period	$	1,514		$	290		$	2,425		$	1,327		$	314		$	411		$	189	$	30		$	6,500
Ending Balance: individually evaluated for impairment	$	—		$	—		$	1		$	—		$	299		$	—		$	—	$	—		$	300
Ending balance: collectively evaluated for impairment	$	1,514		$	290		$	2,424		$	1,247		$	15		$	411		$	189	$	30		$	6,200
Loans:
Ending Balance	$	60,260		$	11,532		$	96,552		$	52,863		$	12,508		$	16,378		$	7,507	$	1,157		$	258,757
Ending Balance: individually evaluated for impairment	$	2,428		$	76		$	6,536		$	8,153		$	6,559		$	—		$	373	$	—		$	24,125
Ending Balance: collectively evaluated for impairment	$	57,832		$	11,456		$	90,016		$	44,710		$	5,949		$	16,378		$	7,134	$	1,157		$	234,632
Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily			Land			Construction			Commercial Non- Mortgage		Consumer			Total
Quarter to date analysis as of June 30, 2012
Allowance for loan losses:
Balance, beginning of year	$	1,590		$	316		$	2,250		$	1,222		$	278		$	390		$	184	$	28		$	6,258
Provision charged to expense		(77	)		(27	)		17			64			136			21			5		2			300
Losses charged off		—			—			—			—			(100	)		—			—		(1	)		(101	)
Recoveries		1			—			—			41			—			—			—		1			43
Balance, end of period	$	1,514		$	290		$	2,425		$	1,327		$	314		$	411		$	189	$	30		$	6,500

Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of December 31, 2011
Allowance for loan losses:
Balance, beginning of year	$	2,079		$	313		$	3,914		$	1,765	$	1,036		$	367	$	269		$	32		$	9,775
Provision charged to expense		(166	)		138			328			168		973			56		(104	)		(8	)		1,385
Losses charged off		(335	)		(161	)		(785	)		—		(391	)		—		—			(3	)		(1,675	)
Recoveries		2			—			5			—		4			—		—			7			18
Balance, end of year	$	1,580		$	290		$	3,462		$	1,933	$	1,622		$	423	$	165		$	28		$	9,503
Ending Balance: individually evaluated for impairment	$	111		$	—		$	1,538		$	829	$	1,332		$	2	$	—		$	—		$	3,812
Ending balance: collectively evaluated for impairment	$	1,469		$	290		$	1,924		$	1,104	$	290		$	421	$	165		$	28		$	5,691
Loans:
Ending Balance	$	68,287		$	13,572		$	89,463		$	51,411	$	13,445		$	19,704	$	7,675		$	1,247		$	264,804
Ending Balance: individually evaluated for impairment	$	3,314		$	327		$	9,206		$	9,854	$	8,710		$	174	$	375		$	—		$	31,960
Ending Balance: collectively evaluated for impairment	$	64,973		$	13,245		$	80,257		$	41,557	$	4,735		$	19,530	$	7,300		$	1,247		$	232,844
Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of June 30, 2011
Allowance for loan losses:
Balance, beginning of year	$	2,079		$	313		$	3,914		$	1,765	$	1,036		$	367	$	269		$	32		$	9,775
Provision charged to expense		(71	)		24			58			129		648			22		(49	)		(1	)		760
Losses charged off		(39	)		—			(369	)		—		—			—		—			(1	)		(409	)
Recoveries		2			—			5			—		1			—		—			4			12
Balance, end of year	$	1,971		$	337		$	3,608		$	1,894	$	1,685		$	389	$	220		$	34		$	10,138

Loan Class	1-4 Family			Home Equity		Commercial Real Estate			Multifamily			Land		Construction			Commercial Non- Mortgage			Consumer		Total
Quarter to date analysis as of June 30, 2011
Allowance for loan losses:
Balance, beginning of quarter	$	2,010		$	311	$	3,661		$	1,913		$	1,141	$	405		$	262		$	29	$	9,732
Provision charged to expense		(41	)		26		(55	)		(19	)		544		(16	)		(42	)		3		400
Losses charged off		—			—		(2	)		—			—		—			—			—		(2	)
Recoveries		2			—		4			—			—		—			—			2		8
Balance, end of period	$	1,971		$	337	$	3,608		$	1,894		$	1,685	$	389		$	220		$	34	$	10,138

Credit risk profile of our loan portfolio based on rating category and payment activity

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2012		2011		2012		2011		2012		2011		2012		2011
Pass	$	54,357	$	61,574	$	11,452	$	13,331	$	69,611	$	63,107	$	34,792	$	34,012
Pass (Closely Monitored)		3,190		3,387		—		—		11,282		9,136		8,208		5,581
Special Mention		658		508		4		35		9,479		8,512		5,457		6,043
Substandard		2,055		2,818		76		206		6,180		8,708		4,406		5,775
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	60,260	$	68,287	$	11,532	$	13,572	$	96,552	$	89,463	$	52,863	$	51,411

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
Pass	$	3,816	$	3,043	$	16,378	$	19,410	$	6,732	$	7,034	$	1,131	$	1,242	$	198,269	$	202,753
Pass (Closely Monitored)		1,979		797		—		120		305		162		26		5		24,990		19,188
Special Mention		237		1,572		—		—		97		104		—		—		15,932		16,774
Substandard		6,476		8,033		—		174		373		375		—		—		19,566		26,089
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	12,508	$	13,445	$	16,378	$	19,704	$	7,507	$	7,675	$	1,157	$	1,247	$	258,757	$	264,804

Summary of our past due and non-accrual loans

As of June 30, 2012:	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 & Accruing		Total Nonaccrual
1-4 Family	$	526	$	95	$	67	$	688	$	59,572	$	60,260	$	—	$	801
Home Equity		—		—		76		76		11,456		11,532		—		76
Commercial Real Estate		648		—		818		1,466		95,086		96,552		—		1,895
Multifamily		3,649		—		—		3,649		49,214		52,863		—		—
Land		984		—		4,972		5,956		6,552		12,508		—		6,465
Construction		—		—		—		—		16,378		16,378		—		—
Commercial Non-Mortgage		—		—		373		373		7,134		7,507		—		373
Consumer		—		—		—		—		1,157		1,157		—		—
Total	$	5,807	$	95	$	6,306	$	12,208	$	246,549	$	258,757	$	—	$	9,610

As of December 31, 2011:	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 & Accruing		Total Nonaccrual
1-4 Family	$	1,117	$	83	$	575	$	1,775	$	66,512	$	68,287	$	—	$	922
Home Equity		—		—		165		165		13,407		13,572		—		165
Commercial Real Estate		614		128		980		1,722		87,741		89,463		—		3,652
Multifamily		4,199		—		—		4,199		47,212		51,411		—		—
Land		—		—		906		906		12,539		13,445		—		7,833
Construction		—		—		—		—		19,704		19,704		—		2
Commercial Non-Mortgage		—		—		375		375		7,300		7,675		—		375
Consumer		—		—		—		—		1,247		1,247		—		—
Total	$	5,930	$	211	$	3,001	$	9,142	$	255,662	$	264,804	$	—	$	12,949

Summary of impaired loans by class

As of June 30, 2012	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		YTD Average Balance		QTD Interest Income		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,428	$	2,558	$	—	$	2,508	$	2,641	$	36	$	64
Home Equity		76		76		—		148		231		1		3
Commercial Real Estate		6,487		8,862		—		8,562		8,505		106		195
Multifamily		8,153		8,973		—		9,333		9,580		141		282
Land		1,587		2,399		—		3,931		3,684		32		60
Construction		—		—		—		2		60		—		—
Commercial Non-Mortgage		373		373		—		373		374		3		6
Consumer		—		—		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity		—		—		—		—		—		—		—
Commercial Real Estate		49		60		1		49		49		—		1
Multifamily		—		—		—		—		—		—		—
Land		4,972		6,392		299		5,257		5,571		72		146
Construction		—		—		—		—		—		—		—
Commercial Non-Mortgage		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total
1-4 Family	$	2,428	$	2,558	$	—	$	2,508	$	2,641	$	36	$	64
Home Equity		76		76		—		148		231		1		3
Commercial Real Estate		6,536		8,822		1		8,611		8,554		106		196
Multifamily		8,153		8,973		—		9,333		9,580		141		282
Land		6,559		8,791		299		9,188		9,255		104		206
Construction		—		—		—		2		60		—		—
Commercial Non-Mortgage		373		373		—		373		374		3		6
Consumer		—		—		—		—		—		—		—
Total	$	24,125	$	29,593	$	300	$	30,163	$	30,695	$	391	$	757

The following tables present impaired loans for the period ended December 31, 2011:

As of December 31, 2011	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,921	$	1,963	$	—	$	1,777	$	114
Home Equity		327		432		—		190		22
Commercial Real Estate		3,018		3,046		—		2,560		157
Multifamily		290		290		—		131		5
Land		—		—		—		85		—
Construction		172		172		—		73		5
Commercial Non-Mortgage		375		375		—		293		11
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	1,393	$	1,423	$	111	$	1,249	$	51
Home Equity		—		—		—		72		—
Commercial Real Estate		6,188		6,653		1,538		5,975		334
Multifamily		9,564		9,565		829		9,391		538
Land		8,710		9,386		1,332		8,180		377
Construction		2		2		2		112		—
Commercial Non-Mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Total
1-4 Family	$	3,314	$	3,386	$	111	$	3,026	$	165
Home Equity		327		432		—		262		22
Commercial Real Estate		9,206		9,699		1,538		8,535		491
Multifamily		9,854		9,855		829		9,522		543
Land		8,710		9,386		1,332		8,265		377
Construction		174		174		2		185		5
Commercial Non-Mortgage		375		375		—		293		11
Consumer		—		—		—		—		—
Total	$	31,960	$	33,307	$	3,812	$	30,088	$	1,614

The following tables present impaired loans for the period ended June 30, 2011:

As of June 30, 2011	QTD Average Balance		YTD Average Balance		QTD Interest Income		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,768	$	1,777	$	21	$	43
Home Equity		129		145		2		4
Commercial Real Estate		2,144		1,072		33		63
Multifamily		—		—		—		—
Land		15		83		—		—
Construction		—		35		—		—
Commercial Non-Mortgage		126		63		3		6
Consumer		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	1,312	$	1,222	$	29	$	39
Home Equity		120		93		1		2
Commercial Real Estate		5,409		5,810		55		99
Multifamily		9,743		9,424		148		238
Land		8,218		8,006		104		181
Construction		92		127		1		2
Commercial Non-Mortgage		—		—		—		—
Consumer		—		—		—		—
Total
1-4 Family	$	3,080	$	2,999	$	50	$	82
Home Equity		249		238		3		7
Commercial Real Estate		7,553		6,882		88		161
Multifamily		9,743		9,424		148		238
Land		8,233		8,089		104		181
Construction		92		162		1		2
Commercial Non-Mortgage		126		63		3		6
Consumer		—		—		—		—
Total	$	29,076	$	27,857	$	397	$	677

Summary of loans that have been restructured as TDRs

	Three Months Ended June 30, 2012						Six Months Ended June 30, 2012
	Count		Balance prior to TDR		Balance after TDR		Count		Balance prior to TDR		Balance after TDR
	(Dollars in thousands)
Commercial real estate		1		98		101		3		237		246
Total loans		1	$	98	$	101		3	$	237	$	246

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Wolverine Bancorp, Inc.
Entity Central Index Key	0001500836
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,389,401

XML

Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Disclosures About Fair Value of Assets and Liabilities [Abstract]

Summary of fair value measurements of assets and liabilities nonrecurring basis

			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2012
Impaired loans	$	5,948	$	—	$	—	$	5,948
December 31, 2011
Impaired loans	$	9,587	$	—	$	—	$	9,587

Summary of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will

	Fair Value at June 30, 2012		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	5,948	Market comparable properties	Marketability discount		21	% - 41%  (27%)

Summary of estimated fair values of the Company's 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)
Financial assets
Cash and cash equivalents	$23,670		$	23,670	$	—	$	—
Interest-earning time deposits	3,486			3,486		—		—
Held to maturity securities	259			—		259		—
Loans held for sale	2,726			—		2,777		—
Loans, net of allowance for loan losses	243,945			—		—		247,304
Federal Home Loan Bank stock	4,391			—		4,391		—
Interest receivable	764			—		764		—
Financial liabilities
Deposits	156,340			92,050		—		64,651
Federal Home Loan Bank advances	61,893			—		70,152		—
Interest payable	177			—		177		—

	December 31, 2011
	Carrying Amount		Fair Value
Financial assets
Cash and cash equivalents	$	14,123	$	14,123
Interest-earning time deposits		21,146		21,146
Held to maturity securities		315		315
Loans held for sale		666		674
Loans, net of allowance for loan losses		243,663		245,377
Federal Home Loan Bank stock		4,391		4,391
Interest receivable		833		833
Financial liabilities
Deposits		161,364		164,968
Federal Home Loan Bank advances		65,860		74,229
Interest payable		226		226

XML

Condensed Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Interest and Dividend Income
Loans	$ 3,461	$ 3,518	$ 7,003	$ 7,015
Investment securities and other	60	81	155	186
Total interest and dividend income	3,521	3,599	7,158	7,201
Interest Expense
Deposits	334	464	698	973
Borrowings	640	840	1,322	1,650
Total interest expense	974	1,304	2,020	2,623
Net Interest Income	2,547	2,295	5,138	4,578
Provision for Loan Losses	300	400	950	760
Net Interest Income After Provision for Loan Losses	2,247	1,895	4,188	3,818
Noninterest Income
Service charges and fees	48	64	122	122
Net gain on loan sales	431	80	775	216
Gross income on real estate owned	1	35	2	92
Loan fees earned	16	53	83	119
Net gain (loss) on sale of real estate owned	(31)	20	(63)	75
Other	43	45	86	117
Total noninterest income	508	297	1,005	741
Noninterest Expense
Salaries and employee benefits	1,088	870	2,168	1,722
Net occupancy and equipment expense	198	187	394	370
Information technology expense	58	67	119	118
Federal deposit insurance corporation premiums	70	72	142	142
Professional and services fees	121	134	277	288
Other real estate owned expense	72	148	144	546
Loan legal expense	22	31	55	76
Other	349	312	674	617
Total noninterest expense	1,978	1,821	3,973	3,879
Income Before Income Tax	777	371	1,220	680
Provision for Income Taxes	266	127	418	234
Net Income and Comprehensive Income	$ 511	$ 244	$ 802	$ 446
Earnings Per Share:
Basic	$ 0.22	$ 0.11	$ 0.35	$ 0.17
Diluted	$ 0.22	$ 0.11	$ 0.35	$ 0.17

XML

Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2012

Loans and Allowance for Loan Losses [Abstract]

Loans and Allowance for Loan Losses

Note 5: Loans and Allowance for Loan Losses

Categories of loans include:

	June 30,		December 31,
	2012		2011
Real Estate
One-to four-family	$	60,260	$	68,287
Home equity		11,532		13,572
Commercial mortgage loans
Commercial real estate		96,552		89,463
Multifamily		52,863		51,411
Land		12,508		13,445
Construction		16,378		19,704
Commercial Non-mortgage		7,507		7,675
Consumer		1,157		1,247
Total loans		258,757		264,804
Less
Net deferred loan fees, premiums and discounts		432		440
Undisbursed portion of loans		7,880		11,198
Allowance for loan losses		6,500		9,503
Net loans	$	243,945	$	243,663

The risk characteristics of each loan portfolio segment are as follows:

1-4 Family, Home Equity, and Consumer

With respect to residential loans that are secured by one-to four-family residences and are primarily owner-occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to four-family residences, and consumer loans are typically secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties.

Home equity loans secured by second mortgages have greater risk than one- to four-family residential mortgage loans secured by first mortgages. We face the risk that the collateral will be insufficient to compensate us for loan losses and costs of foreclosure. When customers default on their loans, we attempt to foreclose on the property and resell the property as soon as possible to minimize foreclosure and carrying costs. However, the value of the collateral may not be sufficient to compensate us for the amount of the unpaid loan and we may be unsuccessful in recovering the remaining balance from those customers. Particularly with respect to our home equity loans, decreases in real estate values could adversely affect the value of property used as collateral for our loans.

Consumer and other loans generally have greater risk compared to longer-term loans secured by improved, owner-occupied real estate, particularly consumer loans that are secured by rapidly depreciable assets, such as automobiles. In these cases, any repossessed collateral for a defaulted loan may not provide an adequate source of repayment of the outstanding loan balance. As a result, consumer loan collections are dependent on the borrower’s continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy.

Commercial real estate and multifamily

Commercial real estate and multifamily loans generally have greater credit risk than the owner-occupied one- to four-family residential mortgage loans that we originate for retention in our loan portfolio. Repayment of these loans generally depends, in large part, on sufficient income from the property securing the loan or the borrower’s business to cover operating expenses and debt service. These types of loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our commercial real estate and multifamily loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination.

Land

Land loans generally have greater credit risk than the owner-occupied one-to four-family residential mortgage loans that we originate for retention in our portfolio. Repayment of these loans generally depends, in large part, on the sale of the land. The sale of land can either take place when the land is undeveloped, or developed. Generally, other cash flow sources of the borrower are utilized to make additional payments on land loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our land loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination.

Construction

Construction loans include those for one- to four-family residential properties and commercial properties, including multifamily loans and commercial “mixed-use” buildings and homes built by developers on speculation. With respect to construction loans for one- to four-family residential properties and which are primarily owner-occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. These are generally “interest-only” loans during the construction period which typically does not exceed nine months. Construction loans for commercial real estate are made in accordance with a schedule reflecting the cost of construction, and are generally limited to a 75% loan-to-completed appraised value ratio. For all construction loans, we generally require that a commitment for permanent financing be in place prior to closing the construction loan

.

Repayment of one-to four-family residential property loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment of commercial property loans and homes built by developers on speculation is normally expected from the property’s eventual rental income, income from the borrower’s operations, the personal resources of the guarantor, or the sale of the subject property. Generally, before making a commitment to fund a construction loan, we require an appraisal of the property by a state-certified or state-licensed appraiser. We generally review and inspect properties before disbursement of funds during the term of the construction loan.

Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost is inaccurate, we may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project is inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment of the construction loan upon the sale of the property. Construction loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated.

Commercial non-mortgage

Commercial non-mortgage loans generally have a greater credit risk than residential mortgage loans. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial non-mortgage loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial non-mortgage loans may be substantially dependent on the success of the business itself. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

In determining the appropriate level of allowance for loan loss, we analyze various components of our portfolio. The following components are analyzed: all substandard loans on an individual basis; all loans that are designated special mention or closely monitored; loans not classified according to purpose or collateral type; and overdrawn deposit account balances.

We also factor in historical loss experience and qualitative considerations, including trends in charge offs and recoveries; trends in delinquencies and impaired/classified loans; effects of credit concentrations; changes in underwriting standards and loan review system; experience in lending staff; current industry conditions; and current market conditions.

In instances where risk and loss exposure is clearly identified with a particular asset, the asset or a portion of the asset will be charged off.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2012, December 31, 2011 and June 30, 2011:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily			Land			Construction			Commercial Non- Mortgage		Consumer			Total
Year to date analysis as of June 30, 2012
Allowance for loan losses:
Balance, beginning of year	$	1,580		$	290		$	3,462		$	1,933		$	1,622		$	423		$	165	$	28		$	9,503
Provision charged to expense		(26	)		(16	)		216			583			178			(10	)		24		1			950
Losses charged off		(61	)		—			(1,253	)		(1,241	)		(1,486	)		(2	)		—		(2	)		(4,045	)
Recoveries		21			16			—			52			—			—			—		3			92
Balance, end of period	$	1,514		$	290		$	2,425		$	1,327		$	314		$	411		$	189	$	30		$	6,500
Ending Balance: individually evaluated for impairment	$	—		$	—		$	1		$	—		$	299		$	—		$	—	$	—		$	300
Ending balance: collectively evaluated for impairment	$	1,514		$	290		$	2,424		$	1,247		$	15		$	411		$	189	$	30		$	6,200
Loans:
Ending Balance	$	60,260		$	11,532		$	96,552		$	52,863		$	12,508		$	16,378		$	7,507	$	1,157		$	258,757
Ending Balance: individually evaluated for impairment	$	2,428		$	76		$	6,536		$	8,153		$	6,559		$	—		$	373	$	—		$	24,125
Ending Balance: collectively evaluated for impairment	$	57,832		$	11,456		$	90,016		$	44,710		$	5,949		$	16,378		$	7,134	$	1,157		$	234,632
Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily			Land			Construction			Commercial Non- Mortgage		Consumer			Total
Quarter to date analysis as of June 30, 2012
Allowance for loan losses:
Balance, beginning of year	$	1,590		$	316		$	2,250		$	1,222		$	278		$	390		$	184	$	28		$	6,258
Provision charged to expense		(77	)		(27	)		17			64			136			21			5		2			300
Losses charged off		—			—			—			—			(100	)		—			—		(1	)		(101	)
Recoveries		1			—			—			41			—			—			—		1			43
Balance, end of period	$	1,514		$	290		$	2,425		$	1,327		$	314		$	411		$	189	$	30		$	6,500

Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of December 31, 2011
Allowance for loan losses:
Balance, beginning of year	$	2,079		$	313		$	3,914		$	1,765	$	1,036		$	367	$	269		$	32		$	9,775
Provision charged to expense		(166	)		138			328			168		973			56		(104	)		(8	)		1,385
Losses charged off		(335	)		(161	)		(785	)		—		(391	)		—		—			(3	)		(1,675	)
Recoveries		2			—			5			—		4			—		—			7			18
Balance, end of year	$	1,580		$	290		$	3,462		$	1,933	$	1,622		$	423	$	165		$	28		$	9,503
Ending Balance: individually evaluated for impairment	$	111		$	—		$	1,538		$	829	$	1,332		$	2	$	—		$	—		$	3,812
Ending balance: collectively evaluated for impairment	$	1,469		$	290		$	1,924		$	1,104	$	290		$	421	$	165		$	28		$	5,691
Loans:
Ending Balance	$	68,287		$	13,572		$	89,463		$	51,411	$	13,445		$	19,704	$	7,675		$	1,247		$	264,804
Ending Balance: individually evaluated for impairment	$	3,314		$	327		$	9,206		$	9,854	$	8,710		$	174	$	375		$	—		$	31,960
Ending Balance: collectively evaluated for impairment	$	64,973		$	13,245		$	80,257		$	41,557	$	4,735		$	19,530	$	7,300		$	1,247		$	232,844
Loan Class	1-4 Family			Home Equity			Commercial Real Estate			Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of June 30, 2011
Allowance for loan losses:
Balance, beginning of year	$	2,079		$	313		$	3,914		$	1,765	$	1,036		$	367	$	269		$	32		$	9,775
Provision charged to expense		(71	)		24			58			129		648			22		(49	)		(1	)		760
Losses charged off		(39	)		—			(369	)		—		—			—		—			(1	)		(409	)
Recoveries		2			—			5			—		1			—		—			4			12
Balance, end of year	$	1,971		$	337		$	3,608		$	1,894	$	1,685		$	389	$	220		$	34		$	10,138

Loan Class	1-4 Family			Home Equity		Commercial Real Estate			Multifamily			Land		Construction			Commercial Non- Mortgage			Consumer		Total
Quarter to date analysis as of June 30, 2011
Allowance for loan losses:
Balance, beginning of quarter	$	2,010		$	311	$	3,661		$	1,913		$	1,141	$	405		$	262		$	29	$	9,732
Provision charged to expense		(41	)		26		(55	)		(19	)		544		(16	)		(42	)		3		400
Losses charged off		—			—		(2	)		—			—		—			—			—		(2	)
Recoveries		2			—		4			—			—		—			—			2		8
Balance, end of period	$	1,971		$	337	$	3,608		$	1,894		$	1,685	$	389		$	220		$	34	$	10,138

Consistent with regulatory guidance, charge offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. Our policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except one-to-four family residential loans and consumer loans, we promptly charge off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

We charge off one-to-four family residential and consumer loans, or portions thereof, when we reasonably determine the amount of the loss. We adhere to timeframes established by applicable regulatory guidance which provides for the charge off of one-to-four family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which we can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of June 30, 2012 and December 31, 2011:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2012		2011		2012		2011		2012		2011		2012		2011
Pass	$	54,357	$	61,574	$	11,452	$	13,331	$	69,611	$	63,107	$	34,792	$	34,012
Pass (Closely Monitored)		3,190		3,387		—		—		11,282		9,136		8,208		5,581
Special Mention		658		508		4		35		9,479		8,512		5,457		6,043
Substandard		2,055		2,818		76		206		6,180		8,708		4,406		5,775
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	60,260	$	68,287	$	11,532	$	13,572	$	96,552	$	89,463	$	52,863	$	51,411

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
Pass	$	3,816	$	3,043	$	16,378	$	19,410	$	6,732	$	7,034	$	1,131	$	1,242	$	198,269	$	202,753
Pass (Closely Monitored)		1,979		797		—		120		305		162		26		5		24,990		19,188
Special Mention		237		1,572		—		—		97		104		—		—		15,932		16,774
Substandard		6,476		8,033		—		174		373		375		—		—		19,566		26,089
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	12,508	$	13,445	$	16,378	$	19,704	$	7,507	$	7,675	$	1,157	$	1,247	$	258,757	$	264,804

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis is performed during the loan approval process and is updated as circumstances warrant.

The Pass asset quality rating encompasses assets that have performed as expected. These assets generally do not have delinquency or servicing issues. Loans assigned this rating include loans to borrowers possessing solid credit quality with acceptable risk. Borrowers in these grades are differentiated from higher grades on the basis of size (capital and/or revenue), leverage, asset quality, stability of the industry or specific market area and quality/coverage of collateral. These borrowers generally have a history of consistent earnings and reasonable leverage.

The Closely Monitored asset quality rating encompasses assets that have been brought to the attention of management and may, if not corrected, warrant a more serious quality rating by management. These assets are usually in the first phase of a deficiency situation and may possess similar criteria as Special Mention assets. This grade includes “pass grade” loans to borrowers which require special monitoring because of deteriorating financial results, declining credit ratings, decreasing cash flow, increasing leverage, marginal collateral coverage or industry stress that has resulted or may result in a changing overall risk profile.

The Special Mention asset quality rating encompasses assets that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. This grade is intended to include loans to borrowers whose credit quality has clearly deteriorated and where risk of further decline is possible unless active measures are taken to correct the situation. Weaknesses are considered potential at this state and are not yet fully defined.

The Substandard asset quality rating encompasses assets that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; assets having a well-defined weakness(es) based upon objective evidence; assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected; or the possibility that liquidation will not be timely. Loans categorized in this grade possess a well defined credit weakness and the likelihood of repayment from the primary source is uncertain. Significant financial deterioration has occurred and very close attention is warranted to ensure the full repayment without loss. Collateral coverage may be marginal and the accrual of interest has been suspended.

The Doubtful asset quality rating encompasses assets that have all of the weaknesses of those classified as Substandard. In addition, these weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The Loss asset quality rating encompasses assets that are considered uncollectible and of such little value that their continuance as assets of the bank is not warranted. A loss classification does not mean that an asset has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be realized in the future.

The following table is a summary of our past due and non-accrual loans as of June 30, 2012 and December 31, 2011:

As of June 30, 2012:	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 & Accruing		Total Nonaccrual
1-4 Family	$	526	$	95	$	67	$	688	$	59,572	$	60,260	$	—	$	801
Home Equity		—		—		76		76		11,456		11,532		—		76
Commercial Real Estate		648		—		818		1,466		95,086		96,552		—		1,895
Multifamily		3,649		—		—		3,649		49,214		52,863		—		—
Land		984		—		4,972		5,956		6,552		12,508		—		6,465
Construction		—		—		—		—		16,378		16,378		—		—
Commercial Non-Mortgage		—		—		373		373		7,134		7,507		—		373
Consumer		—		—		—		—		1,157		1,157		—		—
Total	$	5,807	$	95	$	6,306	$	12,208	$	246,549	$	258,757	$	—	$	9,610

As of December 31, 2011:	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 & Accruing		Total Nonaccrual
1-4 Family	$	1,117	$	83	$	575	$	1,775	$	66,512	$	68,287	$	—	$	922
Home Equity		—		—		165		165		13,407		13,572		—		165
Commercial Real Estate		614		128		980		1,722		87,741		89,463		—		3,652
Multifamily		4,199		—		—		4,199		47,212		51,411		—		—
Land		—		—		906		906		12,539		13,445		—		7,833
Construction		—		—		—		—		19,704		19,704		—		2
Commercial Non-Mortgage		—		—		375		375		7,300		7,675		—		375
Consumer		—		—		—		—		1,247		1,247		—		—
Total	$	5,930	$	211	$	3,001	$	9,142	$	255,662	$	264,804	$	—	$	12,949

Nonaccrual Loan and Past Due Loans. The accrual of interest is discontinued on all loan classes at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. We generally require a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

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 we will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing 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. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made.

The following tables present impaired loans for the period ended June 30, 2012:

As of June 30, 2012	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		YTD Average Balance		QTD Interest Income		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,428	$	2,558	$	—	$	2,508	$	2,641	$	36	$	64
Home Equity		76		76		—		148		231		1		3
Commercial Real Estate		6,487		8,862		—		8,562		8,505		106		195
Multifamily		8,153		8,973		—		9,333		9,580		141		282
Land		1,587		2,399		—		3,931		3,684		32		60
Construction		—		—		—		2		60		—		—
Commercial Non-Mortgage		373		373		—		373		374		3		6
Consumer		—		—		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity		—		—		—		—		—		—		—
Commercial Real Estate		49		60		1		49		49		—		1
Multifamily		—		—		—		—		—		—		—
Land		4,972		6,392		299		5,257		5,571		72		146
Construction		—		—		—		—		—		—		—
Commercial Non-Mortgage		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total
1-4 Family	$	2,428	$	2,558	$	—	$	2,508	$	2,641	$	36	$	64
Home Equity		76		76		—		148		231		1		3
Commercial Real Estate		6,536		8,822		1		8,611		8,554		106		196
Multifamily		8,153		8,973		—		9,333		9,580		141		282
Land		6,559		8,791		299		9,188		9,255		104		206
Construction		—		—		—		2		60		—		—
Commercial Non-Mortgage		373		373		—		373		374		3		6
Consumer		—		—		—		—		—		—		—
Total	$	24,125	$	29,593	$	300	$	30,163	$	30,695	$	391	$	757

The following tables present impaired loans for the period ended December 31, 2011:

As of December 31, 2011	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,921	$	1,963	$	—	$	1,777	$	114
Home Equity		327		432		—		190		22
Commercial Real Estate		3,018		3,046		—		2,560		157
Multifamily		290		290		—		131		5
Land		—		—		—		85		—
Construction		172		172		—		73		5
Commercial Non-Mortgage		375		375		—		293		11
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	1,393	$	1,423	$	111	$	1,249	$	51
Home Equity		—		—		—		72		—
Commercial Real Estate		6,188		6,653		1,538		5,975		334
Multifamily		9,564		9,565		829		9,391		538
Land		8,710		9,386		1,332		8,180		377
Construction		2		2		2		112		—
Commercial Non-Mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Total
1-4 Family	$	3,314	$	3,386	$	111	$	3,026	$	165
Home Equity		327		432		—		262		22
Commercial Real Estate		9,206		9,699		1,538		8,535		491
Multifamily		9,854		9,855		829		9,522		543
Land		8,710		9,386		1,332		8,265		377
Construction		174		174		2		185		5
Commercial Non-Mortgage		375		375		—		293		11
Consumer		—		—		—		—		—
Total	$	31,960	$	33,307	$	3,812	$	30,088	$	1,614

The following tables present impaired loans for the period ended June 30, 2011:

As of June 30, 2011	QTD Average Balance		YTD Average Balance		QTD Interest Income		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,768	$	1,777	$	21	$	43
Home Equity		129		145		2		4
Commercial Real Estate		2,144		1,072		33		63
Multifamily		—		—		—		—
Land		15		83		—		—
Construction		—		35		—		—
Commercial Non-Mortgage		126		63		3		6
Consumer		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	1,312	$	1,222	$	29	$	39
Home Equity		120		93		1		2
Commercial Real Estate		5,409		5,810		55		99
Multifamily		9,743		9,424		148		238
Land		8,218		8,006		104		181
Construction		92		127		1		2
Commercial Non-Mortgage		—		—		—		—
Consumer		—		—		—		—
Total
1-4 Family	$	3,080	$	2,999	$	50	$	82
Home Equity		249		238		3		7
Commercial Real Estate		7,553		6,882		88		161
Multifamily		9,743		9,424		148		238
Land		8,233		8,089		104		181
Construction		92		162		1		2
Commercial Non-Mortgage		126		63		3		6
Consumer		—		—		—		—
Total	$	29,076	$	27,857	$	397	$	677

Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assumed, in which case interest is recognized on a cash basis and is reasonable compared to interest income noted above.

Troubled Debt Restructuring (TDR)

We may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that we would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring. We may modify loans through rate reductions, short-term extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral.

We identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future.

For one-to-four family residential and home equity lines of credit, a restructure often occurs with past due loans and may be offered as an alternative to foreclosure. There are other situations where borrowers, who are not past due, experience a sudden job loss, become over-extended with credit obligations, or other problems, have indicated that they will be unable to make the required monthly payment and request payment relief.

When considering a loan restructure, management will determine if: (i) the financial distress is short or long term; (ii) loan concessions are necessary; and (iii) the restructure is a viable solution.

When a loan is restructured, the new terms often require a reduced monthly debt service payment. No TDRs that were on non-accrual status at the time the concessions were granted have been returned to accrual status. For commercial loans, management completes an analysis of the operating entity’s ability to repay the debt. If the operating entity is capable of servicing the new debt service requirements and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance with the new loan terms. To date, there have been no commercial loans restructured and immediately placed on accrual status after the execution of the TDR.

For retail loans, an analysis of the individual’s ability to service the new required payments is performed. If the borrower is capable of servicing the newly restructured debt and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance to the new loan terms. The reason for the TDR is also considered, such as paying past due real estate taxes or payments caused by a temporary job loss, when determining whether a retail TDR loan could be returned to accrual status. Retail TDRs remain on nonaccrual status until sufficient payments have been made to bring the past due principal and interest current and/or after six months of performance to the new loan terms at which point the loan could be transferred to accrual status.

Effective July 1, 2011, we adopted the provisions of Accounting Standards Update (ASU) No. 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring. As a result of adopting the provisions of ASU 2011-02, we reassessed all loan modifications occurring since January 1, 2011 for identification as TDRs.

The following table summarizes the loans that have been restructured as TDRs during the three months ended June 30, 2012:

	Three Months Ended June 30, 2012						Six Months Ended June 30, 2012
	Count		Balance prior to TDR		Balance after TDR		Count		Balance prior to TDR		Balance after TDR
	(Dollars in thousands)
Commercial real estate		1		98		101		3		237		246
Total loans		1	$	98	$	101		3	$	237	$	246

We had no TDRs that had payment defaults during 2012. Default occurs when a TDR is 90 days or more past due, transferred to nonaccrual status, or transferred to other real estate owned within twelve months of restructuring.

Management monitors the TDRs based on the type of modification or concession granted to the borrower. These types of modifications may include rate reductions, payment/term extensions, forgiveness of principal, forbearance, and other applicable actions. During the three months ended June 30, 2012, management predominantly utilized rate reductions and lower monthly payments, either from a longer amortization period or interest only repayment schedule, because these concessions provide needed payment relief without risking the loss of principal. Management will also agree to a forbearance agreement when it is deemed appropriate to avoid foreclosure.

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Securities

6 Months Ended

Jun. 30, 2012

Securities [Abstract]

Securities

Note 4: Securities

The amortized cost and approximate fair values of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
Held to Maturity Securities:
June 30, 2012
Municipal	$	259	$	—	$	—	$	259
December 31, 2011
Municipal	$	315	$	—	$	—	$	315

The amortized cost and fair value of securities at June 30, 2012, 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.

	June 30, 2012
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		—		—
Five to ten years		259		259
After ten years		—		—
Totals	$	259	$	259

There were no sales of securities during the six months ended June 30, 2012 and 2011.

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Loans and Allowance for Loan Losses (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	$ 258,757	$ 264,804	$ 10,138
Net deferred loan fees, premiums and discounts	432	440
Undisbursed portion of loans	7,880	11,198
Allowance for loan losses	6,500	9,503
Net loans	243,945	243,663
Real estate one to four family loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	60,260	68,287	1,971
Real estate home equity loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	11,532	13,572	337
Commercial real estate loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	96,552	89,463	3,608
Commercial mortgage multifamily loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	52,863	51,411	1,894
Commercial mortgage land loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	12,508	13,445	1,685
Commercial mortgage construction loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	16,378	19,704	389
Commercial nonmortgage loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	7,507	7,675	220
Commercial mortgage consumer loans [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	1,157	1,247	34
Commercial mortgage loans: [Member]
Loans and Leases Receivable, Gross, Carrying Amount, by Category Alternative [Abstract]
Total loans	$ 258,757	$ 264,804

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule of Net income per common share, Basic and Diluted

	Three Months Ended			Six Months Ended
	June 30, 2012			June 30, 2012
Basic and diluted
Earnings:
Net Income	$	511		$	802
Shares:
Weighted average common shares outstanding		2,501			2,501
Less: Average unallocated ESOP shares		(188	)		(188	)
Average shares		2,313			2,313
Net income per common share, basic and diluted	$	0.22		$	0.35

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Loans and Allowance for Loan Losses (Policies)

6 Months Ended

Jun. 30, 2012

Loans and Allowance for Loan Losses [Abstract]

Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring

Effective July 1, 2011, we adopted the provisions of Accounting Standards Update (ASU) No. 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring. As a result of adopting the provisions of ASU 2011-02, we reassessed all loan modifications occurring since January 1, 2011 for identification as TDRs.

Comprehensive Income (Topic 220):

The FASB has issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This ASU amendment allows an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments to the Codification in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 is to be applied retrospectively. For public entities, the amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of ASU No. 2011-05 did not have a material impact on the Company’s financial statements.

The FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This ASU defers the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated other comprehensive income into net income for all periods presented. The ASU does not change the other requirements of FASB ASU No. 2011-05, Presentation of Comprehensive Income . Entities are still required to present reclassification adjustments within other comprehensive income either on the face of the statement that reports other comprehensive income or in the notes to the financial statements. The requirement to present comprehensive income in either a single continuous statement or two consecutive condensed statements remains for both annual and interim reporting. The deferral of the requirement for the presentation of reclassification adjustments is intended to be temporary until the FASB reconsiders the operational concerns and needs of financial statement users.

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Disclosures About Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2012

Disclosures About Fair Value of Assets and Liabilities [Abstract]

Disclosures About Fair Value of Assets and Liabilities

Note 6: Disclosures About Fair Value of Assets and Liabilities

ASC Topic 820, Fair Value Measurements, defines fair value as 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. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes 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

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets under the valuation hierarchy. We have no assets or liabilities measured at fair value on a recurring basis and no liabilities measured at fair value on a nonrecurring basis.

Transfers between Levels

There were no transfers between Levels 1, 2 and 3 during the three months ended June 30, 2012.

Nonrecurring Measurements

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets 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, 2012 and December 31, 2011.

			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2012
Impaired loans	$	5,948	$	—	$	—	$	5,948
December 31, 2011
Impaired loans	$	9,587	$	—	$	—	$	9,587

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 an 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 or subsequently as deemed necessary and approved by management. Appraisals are reviewed for accuracy and consistency by the Credit Analysis department. Typically, appraisers are selected from the list of approved appraisers maintained by the Underwriting department. The appraised values may be reduced by discounts to consider a lack of marketability or 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 Credit Analysis department and approved by management.

Unobservable (Level 3) inputs

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

	Fair Value at June 30, 2012		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	5,948	Market comparable properties	Marketability discount		21	% - 41%  (27%)

Fair Value of Financial Instruments

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2012.

		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)
Financial assets
Cash and cash equivalents	$23,670		$	23,670	$	—	$	—
Interest-earning time deposits	3,486			3,486		—		—
Held to maturity securities	259			—		259		—
Loans held for sale	2,726			—		2,777		—
Loans, net of allowance for loan losses	243,945			—		—		247,304
Federal Home Loan Bank stock	4,391			—		4,391		—
Interest receivable	764			—		764		—
Financial liabilities
Deposits	156,340			92,050		—		64,651
Federal Home Loan Bank advances	61,893			—		70,152		—
Interest payable	177			—		177		—

The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than 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. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, we do not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.

	December 31, 2011
	Carrying Amount		Fair Value
Financial assets
Cash and cash equivalents	$	14,123	$	14,123
Interest-earning time deposits		21,146		21,146
Held to maturity securities		315		315
Loans held for sale		666		674
Loans, net of allowance for loan losses		243,663		245,377
Federal Home Loan Bank stock		4,391		4,391
Interest receivable		833		833
Financial liabilities
Deposits		161,364		164,968
Federal Home Loan Bank advances		65,860		74,229
Interest payable		226		226

The following methods and assumptions were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value.

Cash and Cash Equivalents, Interest-Earning Time Deposits, Federal Home Loan Bank Stock, Interest Receivable, Stock Conversion Related Liabilities and Interest Payable

The carrying amount approximates fair value.

Held to Maturity Securities

Fair values equal quoted market prices, if available. If quoted market prices are not available, fair value is estimated based on quoted market prices of similar securities.

Loans Held for Sale

Fair value is estimated using quoted market prices from the secondary market.

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 demand deposits, 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 us 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

Loan commitments and letters-of-credit generally have short-term, variable rate features and contain clauses which limit our exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.

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Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 7: Earnings Per Share

	Three Months Ended			Six Months Ended
	June 30, 2012			June 30, 2012
Basic and diluted
Earnings:
Net Income	$	511		$	802
Shares:
Weighted average common shares outstanding		2,501			2,501
Less: Average unallocated ESOP shares		(188	)		(188	)
Average shares		2,313			2,313
Net income per common share, basic and diluted	$	0.22		$	0.35

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Securities (Tables)

6 Months Ended

Jun. 30, 2012

Securities [Abstract]

Schedule of amortized cost and approximate fair values of held to maturity securities

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
Held to Maturity Securities:
June 30, 2012
Municipal	$	259	$	—	$	—	$	259
December 31, 2011
Municipal	$	315	$	—	$	—	$	315

Summary of amortized cost and fair value of held to maturity securities by contractual maturity

	June 30, 2012
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		—		—
Five to ten years		259		259
After ten years		—		—
Totals	$	259	$	259

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Securities (Details) (Municipal [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Municipal [Member]
Schedule of amortized cost and approximate fair values of held to maturity securities
Held to maturity securities, Amortized cost	$ 259	$ 315
Held-to-maturity Securities, Gross Unrecognized Gains
Held-to-maturity Securities, Gross Unrecognized Losses
Held-to-maturity Securities, Fair Value	$ 259	$ 315

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Loans and Allowance for Loan Losses (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	$ 5,807	$ 5,930
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	95	211
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	6,306	3,001
Financing Receivable, Recorded Investment, Past Due, Total	12,208	9,142
Financing Receivable, Recorded Investment, Current	246,549	255,662
Financing Receivable, Recorded Investment, Loans Receivable	258,757	264,804	10,138
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status	9,610	12,949
1-4 Family [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	526	1,117
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	95	83
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	67	575
Financing Receivable, Recorded Investment, Past Due, Total	688	1,775
Financing Receivable, Recorded Investment, Current	59,572	66,512
Financing Receivable, Recorded Investment, Loans Receivable	60,260	68,287
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status	801	922
Home Equity [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	76	165
Financing Receivable, Recorded Investment, Past Due, Total	76	165
Financing Receivable, Recorded Investment, Current	11,456	13,407
Financing Receivable, Recorded Investment, Loans Receivable	11,532	13,572
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status	76	165
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	648	614
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due		128
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	818	980
Financing Receivable, Recorded Investment, Past Due, Total	1,466	1,722
Financing Receivable, Recorded Investment, Current	95,086	87,741
Financing Receivable, Recorded Investment, Loans Receivable	96,552	89,463
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status	1,895	3,652
Multifamily [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	3,649	4,199
Financing Receivable, Recorded Investment, Past Due, Total	3,649	4,199
Financing Receivable, Recorded Investment, Current	49,214	47,212
Financing Receivable, Recorded Investment, Loans Receivable	52,863	51,411
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Land [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	984
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	4,972	906
Financing Receivable, Recorded Investment, Past Due, Total	5,956	906
Financing Receivable, Recorded Investment, Current	6,552	12,539
Financing Receivable, Recorded Investment, Loans Receivable	12,508	13,445
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status	6,465	7,833
Construction [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Current	16,378	19,704
Financing Receivable, Recorded Investment, Loans Receivable	16,378	19,704
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status		2
Commercial Non-Mortgage [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	373	375
Financing Receivable, Recorded Investment, Past Due, Total	373	375
Financing Receivable, Recorded Investment, Current	7,134	7,300
Financing Receivable, Recorded Investment, Loans Receivable	7,507	7,675
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Nonaccrual Status	373	375
Consumer [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Current	1,157	1,247
Financing Receivable, Recorded Investment, Loans Receivable	1,157	1,247
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing

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Condensed Consolidated Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating Activities
Net income	$ 802	$ 446
Items not requiring (providing) cash
Depreciation	116	107
Provision for loan losses	950	760
Amortization of Federal Home Loan Bank advance prepayment penalty	33	33
Deferred income taxes	(326)	135
Loss (Gain) on other real estate owned	63	253
Loans originated for sale	(40,781)	(11,427)
Proceeds from loans sold	39,496	12,050
Gain on sale of loans	(775)	(216)
Gain on sale of premises or equipment	(1)	(31)
Changes in
Interest receivable and other assets	618	866
Interest payable and other liabilities	1,835	846
Net cash provided by operating activities	2,030	3,822
Investing Activities
Net change in interest-bearing deposits	17,660	(10,950)
Proceeds from calls, maturities and pay-downs of held to maturity securities	57	73
Net change in loans	(1,455)	(11,642)
Proceeds from sale of premises and equipment	23	64
Proceeds from sale of real estate owned	519	1,082
Redemption of FHLB stock		219
Purchase of premises and equipment	(150)	(33)
Net cash provided by (used in) investing activities	16,654	(21,187)
Financing Activities
Net change in demand deposits, money market, checking and savings accounts	2,302	2,083
Net change in certificates of deposit	(7,326)	(9,525)
Proceeds from stock conversion		2,676
Proceeds from Federal Home Loan Bank advances	22,000
Repayment of Federal Home Loan Bank advances	(26,000)	(5,000)
Purchase of treasury stock	(113)
Net cash used in financing activities	(9,137)	(9,766)
Increase (Decrease) in Cash and Cash Equivalents	9,547	(27,131)
Cash and Cash Equivalents, Beginning of Period	14,123	48,936
Cash and Cash Equivalents, End of Period	23,670	21,805
Supplemental Disclosures of Cash Flows Information
Interest paid	2,068	2,660
Income taxes paid	450
Loans transferred to real estate owned	$ 222	$ 953

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Accounting Developments

6 Months Ended

Jun. 30, 2012

Accounting Developments [Abstract]

Accounting Developments

Note 3: Accounting Developments

The FASB has issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This ASU amendment allows an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments to the Codification in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 is to be applied retrospectively. For public entities, the amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of ASU No. 2011-05 did not have a material impact on the Company’s financial statements.

The FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This ASU defers the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated other comprehensive income into net income for all periods presented. The ASU does not change the other requirements of FASB ASU No. 2011-05, Presentation of Comprehensive Income . Entities are still required to present reclassification adjustments within other comprehensive income either on the face of the statement that reports other comprehensive income or in the notes to the financial statements. The requirement to present comprehensive income in either a single continuous statement or two consecutive condensed statements remains for both annual and interim reporting. The deferral of the requirement for the presentation of reclassification adjustments is intended to be temporary until the FASB reconsiders the operational concerns and needs of financial statement users.

The Company adopted the amendments in this Update at the same time as ASU 2011-05, which became effective beginning in the interim period ended March 31, 2012. As the Company had no reclassifications adjustments within other comprehensive income, ASU No. 2011-12 had no impact on its financial statements.

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Loans and Allowance for Loan Losses (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Loans with a specific valuation allowance
Specific Allowance	$ 300		$ 300		$ 3,812
Total
Recorded Balance	24,125		24,125		31,960
Unpaid Principal Balance	29,593		29,593		33,307
Specific Allowance	300		300		3,812
Average Balance	30,163	29,076	30,695	27,857	30,088
Interest Income	391	397	757	677	1,614
1-4 Family [Member]
Loans without a specific valuation allowance
Recorded Balance	2,428		2,428		1,921
Unpaid Principal Balance	2,558		2,558		1,963
Average Balance	2,508	1,768	2,641	1,777	1,777
Interest Income	36	21	64	43	114
Loans with a specific valuation allowance
Recorded Balance					1,393
Unpaid Principal Balance					1,423
Specific Allowance					111
Average Balance		1,312		1,222	1,249
Interest Income		29		39	51
Total
Recorded Balance	2,428		2,428		3,314
Unpaid Principal Balance	2,558		2,558		3,386
Specific Allowance					111
Average Balance	2,508	3,080	2,641	2,999	3,026
Interest Income	36	50	64	82	165
Home Equity [Member]
Loans without a specific valuation allowance
Recorded Balance	76		76		327
Unpaid Principal Balance	76		76		432
Average Balance	148	129	231	145	190
Interest Income	1	2	3	4	22
Loans with a specific valuation allowance
Recorded Balance
Unpaid Principal Balance
Specific Allowance
Average Balance		120		93	72
Interest Income		1		2
Total
Recorded Balance	76		76		327
Unpaid Principal Balance	76		76		432
Specific Allowance
Average Balance	148	249	231	238	262
Interest Income	1	3	3	7	22
Commercial Real Estate [Member]
Loans without a specific valuation allowance
Recorded Balance	6,487		6,487		3,018
Unpaid Principal Balance	8,862		8,862		3,046
Average Balance	8,562	2,144	8,505	1,072	2,560
Interest Income	106	33	195	63	157
Loans with a specific valuation allowance
Recorded Balance	49		49		6,188
Unpaid Principal Balance	60		60		6,653
Specific Allowance	1		1		1,538
Average Balance		5,409	49	5,810	5,975
Interest Income		55	1	99	334
Total
Recorded Balance	6,536		6,536		9,206
Unpaid Principal Balance	8,822		8,822		9,699
Specific Allowance	1		1		1,538
Average Balance	8,611	7,553	8,554	6,882	8,535
Interest Income	106	88	196	161	491
Multifamily [Member]
Loans without a specific valuation allowance
Recorded Balance	8,153		8,153		290
Unpaid Principal Balance	8,973		8,973		290
Average Balance	9,333		9,580		131
Interest Income	141		282		5
Loans with a specific valuation allowance
Recorded Balance					9,564
Unpaid Principal Balance					9,565
Specific Allowance					829
Average Balance		9,743		9,424	9,391
Interest Income		148		238	538
Total
Recorded Balance	8,153		8,153		9,854
Unpaid Principal Balance	8,973		8,973		9,855
Specific Allowance					829
Average Balance	9,333	9,743	9,580	9,424	9,522
Interest Income	141	148	282	238	543
Land [Member]
Loans without a specific valuation allowance
Recorded Balance	1,587		1,587
Unpaid Principal Balance	2,399		2,399
Average Balance	3,931	15	3,684	83	85
Interest Income	32		60
Loans with a specific valuation allowance
Recorded Balance	4,972		4,972		8,710
Unpaid Principal Balance	6,392		6,392		9,386
Specific Allowance	299		299		1,332
Average Balance	5,257	8,218	5,571	8,006	8,180
Interest Income	72	104	146	181	377
Total
Recorded Balance	6,559		6,559		8,710
Unpaid Principal Balance	8,791		8,791		9,386
Specific Allowance	299		299		1,332
Average Balance	9,188	8,233	9,255	8,089	8,265
Interest Income	104	104	206	181	377
Construction [Member]
Loans without a specific valuation allowance
Recorded Balance					172
Unpaid Principal Balance					172
Average Balance	2		60	35	73
Interest Income					5
Loans with a specific valuation allowance
Recorded Balance					2
Unpaid Principal Balance					2
Specific Allowance					2
Average Balance		92		127	112
Interest Income		1		2
Total
Recorded Balance					174
Unpaid Principal Balance					174
Specific Allowance					2
Average Balance	2	92	60	162	185
Interest Income		1		2	5
Commercial Non-Mortgage [Member]
Loans without a specific valuation allowance
Recorded Balance	373		373		375
Unpaid Principal Balance	373		373		375
Average Balance	373	126	374	63	293
Interest Income	3	3	6	6	11
Loans with a specific valuation allowance
Recorded Balance
Unpaid Principal Balance
Specific Allowance
Average Balance
Interest Income
Total
Recorded Balance	373		373		375
Unpaid Principal Balance	373		373		375
Specific Allowance
Average Balance	373	126	374	63	293
Interest Income	3	3	6	6	11
Consumer [Member]
Loans without a specific valuation allowance
Recorded Balance
Unpaid Principal Balance
Average Balance
Interest Income
Loans with a specific valuation allowance
Recorded Balance
Unpaid Principal Balance
Specific Allowance
Average Balance
Interest Income
Total
Recorded Balance
Unpaid Principal Balance
Specific Allowance
Average Balance
Interest Income

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Plan of Conversion and Change in Corporate Form (Details) (USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Plan of Conversion and Change in Corporate Form (Textual) [Abstract]
Conversion of shares into common stock, number	2,507,500
Converted shares issued price per share	$ 10.00
Proceeds from offering of converted shares	$ 25.1
Stock issuance costs during period	1.3
Percentage of ESOP to common stock sold in the offering	8.00%
Stock issued to in ESOP	2.0
Initial liquidation account amount	$ 41.7