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 March 31, 2014

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	(I.R.S. Employer
incorporation or organization)	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 April 30, 2014, was 2,293,725

Wolverine Bancorp, Inc.

Form 10-Q

Index

		Page
Part I. Financial Information
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2014 (unaudited) and December 31, 2013		1
	Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2014 and 2013 (unaudited)		2
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013 (unaudited)		3
	Condensed Consolidated Statement of Changes in Stockholders’ Equity for the three months ended March 31, 2014 (unaudited)		4
	Notes to Condensed Consolidated Financial Statements (unaudited)		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		34
Item 4.	Controls and Procedures		35
Part II. Other Information
Item 1.	Legal Proceedings		35
Item 1A.	Risk Factors		35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3.	Defaults upon Senior Securities		35
Item 4.	Mine Safety Disclosures		35
Item 5.	Other Information		35
Item 6.	Exhibits		36
	Signature Page		37

Wolverine Bancorp, Inc.

Condensed Consolidated Balance Sheets

(Amounts in Thousands, except per share data)

	March 31,			December 31,
	2014			2013
	(Unaudited)
Assets
Cash and due from banks	$	473		$	791
Interest-earning demand deposits		24,605			25,390
Cash and cash equivalents		25,078			26,181
Held to maturity securities		57			123
Loans held for sale		719			1,325
Loans, net of allowance for loan losses of $7,919 and $7,597		276,965			259,381
Premises and equipment, net		1,508			1,569
Federal Home Loan Bank stock		3,320			3,320
Other real estate owned		913			872
Accrued interest receivable		710			699
Other assets		4,421			4,291
Total assets	$	313,691		$	297,761
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	198,594		$	172,983
Federal Home Loan Bank advances		52,000			61,994
Interest payable and other liabilities		2,470			2,459
Total liabilities		253,064			237,436
Commitments and Contingencies
Stockholders’ Equity
Common Stock, $0.01 par value per share:
Authorized – 100,000,000 shares
Issued and outstanding – 2,293,725 and 2,297,725 at March 31, 2014 and December 31,2013		23			23
Additional paid-in capital		18,950			18,952
Unearned employee stock ownership plan (ESOP)		(1,666	)		(1,666	)
Retained earnings		43,320			43,016
Total stockholders’ equity		60,627			60,325
Total liabilities and stockholders’ equity	$	313,691		$	297,761

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

1

Wolverine Bancorp, Inc.

Condensed Consolidated Statements of Income and Comprehensive Income

(Amounts in Thousands, except per share data)

	Three months ended March 31,
	2014			2013
	(Unaudited)
Interest and Dividend Income
Loans	$	3,360		$	3,310
Investment securities and other		49			44
Total interest and dividend income		3,409			3,354
Interest Expense
Deposits		190			224
Borrowings		531			582
Total interest expense		721			806
Net Interest Income		2,688			2,548
Provision for Loan Losses		300			325
Net Interest Income After Provision for Loan Losses		2,388			2,223
Noninterest Income
Service charges and fees		51			54
Net gain on loan sales		120			536
Net gain (loss) on sale of real estate owned		(21	)		94
Other		39			51
Total noninterest income		189			735
Noninterest Expense
Salaries and employee benefits		1,231			1,292
Net occupancy and equipment expense		230			178
Information technology expense		60			57
Federal deposit insurance corporation premiums		53			58
Professional and services fees		151			129
Other real estate owned expense		19			18
Loan legal expense		12			47
Advertising expense		40			65
Michigan business tax		51			47
Other		266			268
Total noninterest expense		2,113			2,159
Income Before Income Tax		464			799
Provision for Income Taxes		160			274
Net Income and Comprehensive Income	$	304		$	525
Earnings Per Share:
Basic	$	0.14		$	0.23
Diluted	$	0.14		$	0.23

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

2

Wolverine Bancorp, Inc.

Condensed Consolidated Statement of Cash Flows

(Amounts in Thousands)

	Three months ended March 31,
	2014			2013
	(Unaudited)
Operating Activities
Net income	$	304		$	525
Items not requiring (providing) cash
Depreciation		65			51
Provision for loan losses		300			325
Amortization of Federal Home Loan Bank advance prepayment penalty		6			17
(Gain) loss on other real estate owned		21			(94	)
Loans originated for sale		(3,234	)		(17,174	)
Proceeds from loans sold		3,960			18,009
Gain on sale of loans		(120	)		(536	)
Share based compensation		84			82
Changes in
Interest receivable and other assets		(141	)		277
Interest payable and other liabilities		11			339
Net cash provided by operating activities		1,256			1,821
Investing Activities
Proceeds from calls, maturities and pay-downs of held to maturity securities		66			69
Net change in loans		(18,139	)		2,592
Proceeds from sale of real estate owned		193			469
Purchase of premises and equipment		(4	)		(31	)
Net cash used (provided) by investing activities		(17,884	)		3,099
Financing Activities
Net change in demand deposits, money market, checking and savings accounts		10,553			771
Net change in certificates of deposit		15,058			3,381
Repayment of Federal Home Loan Bank advances		(10,000	)		—
Purchase of common stock		(86	)		(100	)
Net cash provided by financing activities		15,525			4,052
Decrease (Increase) in Cash and Cash Equivalents		(1,103	)		8,972
Cash and Cash Equivalents, Beginning of Period		26,181			16,552
Cash and Cash Equivalents, End of Period	$	25,078		$	25,524
Supplemental Disclosures of Cash Flows Information
Interest paid	$	711		$	2,972
Income taxes paid		200			—
Loans transferred to real estate owned		255			—

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

3

Wolverine Bancorp, Inc.

Condensed Consolidated Statement of Change in Stockholders’ Equity

(Amounts in Thousands, except share data)

(Unaudited)

	Common Stock		Additional Paid-in Capital			Unearned ESOP Shares			Retained Earnings		Total Stockholders’ Equity
Balances at January 1, 2014	$	23	$	18,952		$	(1,666	)	$	43,016	$	60,325
Net income		—		—			—			304		304
Purchase of 4,000 shares of common stock		—		(86	)		—			—		(86	)
Share based compensation expense		—		84			—			—		84
Balances at March 31, 2014	$	23	$	18,950		$	(1,666	)	$	43,320	$	60,627

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

4

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

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, 2013 has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three month period ended March 31, 2014 is not necessarily indicative of the results that may be expected for the year ending December 31, 2014. 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, 2014.

Note 2: Accounting Developments

Financial Accounting Standards Board (“FASB”)

In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements.

In January 2014, the FASB issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements.

5

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 3: 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:
March 31, 2014
Municipal	$	57	$	—	$	—	$	57
December 31, 2013
Municipal	$	123	$	—	$	—	$	123

The amortized cost and fair value of securities at March 31, 2014, 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.

	March 31, 2014
	Amortized Cost		Fair Value
Within one year	$	57	$	57
One to five years		—		—
Five to ten years		—		—
After ten years		—		—
Totals	$	57	$	57

There were no sales of securities during the three months ended March 31, 2014 and 2013.

6

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 4: Loans and Allowance for Loan Losses

Categories of loans include:

	March 31,		December 31,
	2014		2013
Real Estate
One-to four-family	$	51,159	$	49,726
Home equity		6,997		7,912
Commercial mortgage loans
Commercial real estate		145,645		126,154
Multifamily		60,129		62,790
Land		10,227		9,734
Construction		22,737		8,669
Commercial Non-mortgage		6,656		7,226
Consumer		1,076		1,167
Total loans		304,626		273,378
Less
Net deferred loan fees, premiums and discounts		554		467
Undisbursed portion of loans		19,188		5,933
Allowance for loan losses		7,919		7,597
Net loans	$	276,965	$	259,381

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.

7

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

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

8

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

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.

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.

9

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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 March 31, 2014, December 31, 2013 and March 31, 2013:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Quarter to date analysis as of March 31, 2014
Allowance for loan losses:
Balance, beginning of period	$	1,354		$	251		$	2,861	$	1,514		$	1,145	$	285	$	157		$	30		$	7,597
Provision charged to expense		(358	)		(103	)		611		(176	)		270		105		(31	)		(18	)		300
Losses charged off		—			—			—		—			—		—		—			—			—
Recoveries		10			—			3		—			7		—		—			2			22
Balance, end of period	$	1,006		$	148		$	3,475	$	1,338		$	1,422	$	390	$	126		$	14		$	7,919
Ending Balance: individually evaluated for impairment	$	—		$	—		$	345	$	100		$	850	$	—	$	—		$	—		$	1,295
Ending balance: collectively evaluated for impairment	$	1,006		$	148		$	3,130	$	1,238		$	572	$	390	$	126		$	14		$	6,624
Loans:
Ending Balance	$	51,159		$	6,997		$	145,645	$	60,129		$	10,227	$	22,737	$	6,656		$	1,076		$	304,626
Ending Balance: individually evaluated for impairment	$	1,695		$	64		$	10,161	$	8,384		$	4,094	$	—	$	612		$	—		$	25,010
Ending Balance: collectively evaluated for impairment	$	49,464		$	6,933		$	135,484	$	51,745		$	6,133	$	22,737	$	6,044		$	1,076		$	279,616

10

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

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, 2013
Allowance for loan losses:
Balance, beginning of year	$	1,433		$	266		$	2,663	$	1,497	$	312	$	302		$	166		$	32		$	6,671
Provision charged to expense		116			(16	)		98		17		651		(17	)		(14	)		(5	)		830
Losses charged off		(210	)		—			—		—		—		—			—			(2	)		(212	)
Recoveries		15			1			100		—		182		—			5			5			308
Balance, end of year	$	1,354		$	251		$	2,861	$	1,514	$	1,145	$	285		$	157		$	30		$	7,597
Ending Balance: individually evaluated for impairment	$	—		$	—		$	345	$	100	$	850	$	—		$	—		$	—		$	1,295
Ending balance: collectively evaluated for impairment	$	1,354		$	251		$	2,516	$	1,414	$	295	$	285		$	157		$	30		$	6,302
Loans:
Ending Balance	$	49,726		$	7,912		$	126,154	$	62,790	$	9,734	$	8,669		$	7,226		$	1,167		$	273,378
Ending Balance: individually evaluated for impairment	$	2,494		$	—		$	11,067	$	8,462	$	4,162		—		$	600		$	—		$	26,785
Ending Balance: collectively evaluated for impairment	$	47,232		$	7,912		$	115,087	$	54,328	$	5,572	$	8,669		$	6,626		$	1,167		$	246,593

11

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

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 March 31, 2013
Allowance for loan losses:
Balance, beginning of year	$	1,433		$	266	$	2,663	$	1,497	$	312		$	302	$	166		$	32		$	6,671
Provision charged to expense		21			26		193		158		(47	)		49		(73	)		(2	)		325
Losses charged off		(12	)		—		—		—		—			—		—			—			(12	)
Recoveries		3			—		—		—		—			—		—			2			5
Balance, end of year	$	1,445		$	292	$	2,856	$	1,655	$	265		$	351	$	93		$	32		$	6,989
Ending Balance: individually evaluated for impairment	$	9		$	—	$	228	$	48	$	100		$	—	$	15		$	—		$	400
Ending balance: collectively evaluated for impairment	$	1,436		$	292	$	2,628	$	1,607	$	165		$	351	$	78		$	32		$	6,589
Loans:
Ending Balance	$	54,953		$	11,129	$	108,649	$	62,945	$	10,065		$	13,369	$	3,541		$	1,195		$	265,846
Ending Balance: individually evaluated for impairment	$	2,809		$	—	$	10,955	$	9,449	$	4,693		$	80	$	837		$	—		$	28,823
Ending Balance: collectively evaluated for impairment	$	52,144		$	11,129	$	97,694	$	54,296	$	5,372		$	13,289	$	2,704		$	1,195		$	237,823

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.

12

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

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 March 31, 2014 and December 31, 2013:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2014		2013		2014		2013		2014		2013		2014		2013
Pass	$	47,690	$	45,735	$	6,997	$	7,806	$	127,673	$	107,825	$	46,419	$	48,808
Pass (Closely Monitored)		1,706		1,827		—		106		4,203		4,081		8,947		9,170
Special Mention		721		818		—		—		4,677		4,992		—		—
Substandard		1,042		1,346		—		—		9,092		9,256		4,763		4,812
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	51,159	$	49,726	$	6,997	$	7,912	$	145,645	$	126,154	$	60,129	$	62,790

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Pass	$	4,501	$	3,742	$	22,737	$	8,669	$	5,903	$	6,540	$	1,076	$	1,167	$	262,996	$	230,292
Pass (Closely Monitored)		1,675		1,830		—		—		141		55		—		—		16,672		17,069
Special Mention		—		43		—		—		32		36		—		—		5,430		5,889
Substandard		4,051		4,119		—		—		580		595		—		—		19,528		20,128
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	10,227	$	9,734	$	22,737	$	8,669	$	6,656	$	7,226	$	1,076	$	1,167	$	304,626	$	273,378

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.

13

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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 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.

14

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following table is a summary of our past due and non-accrual loans as of March 31, 2014 and December 31, 2013:

	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	$	242	$	—	$	—	$	242	$	50,917	$	51,159	$	—	$	—
Home Equity		—		—		—		—		6,997		6,997		—		—
Commercial Real Estate		—		—		—		—		145,645		145,645		—		713
Multifamily		—		—		—		—		60,129		60,129		—		—
Land		50		—		4,023		4,073		6,154		10,227		—		4,017
Construction		—		—		—		—		22,737		22,737		—		—
Commercial Non-Mortgage		—		—		32		32		6,624		6,656		—		143
Consumer		—		—		—		—		1,076		1,076		—		—
Total	$	292	$	—	$	4,055	$	4,347	$	300,279	$	304,626	$	—	$	4,873

As of December 31, 2013:	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	$	217	$	—	$	254	$	471	$	49,255	$	49,726	$	—	$	254
Home Equity		—		—		—		—		7,912		7,912		—		—
Commercial Real Estate		716		667		49		1,432		124,722		126,154		—		779
Multifamily		—		—		1,363		1,363		61,427		62,790		1,363		—
Land		—		—		4,068		4,068		5,666		9,734		27		4,041
Construction		—		—		—		—		8,669		8,669		—		—
Commercial Non-Mortgage		—		—		36		36		7,190		7,226		—		157
Consumer		—		—		—		—		1,167		1,167		—		—
Total	$	933	$	667	$	5,770	$	7,370	$	266,008	$	273,378	$	1,390	$	5,231

15

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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 Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following table presents impaired loans at March 31, 2014:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,514	$	1,651	$	—	$	1,733	$	22
Home Equity		64		64		—		64		1
Commercial Real Estate		6,226		8,255		—		6,652		65
Multifamily		7,033		7,847		—		7,066		81
Land		707		1,645		—		711		1
Construction		—		2		—		—		—
Commercial Non-Mortgage		257		257		—		242		3
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		181		181		—		181		3
Home Equity		—		—		—		—		—
Commercial Real Estate		3,935		3,946		345		3,962		63
Multifamily		1,351		1,351		100		1,357		20
Land		3,387		4,704		850		3,417		—
Construction		—		—		—		—		—
Commercial Non-Mortgage		355		355		—		365		4
Consumer		—		—		—		—		—
Total
1-4 Family	$	1,695	$	1,832	$	—	$	1,914	$	25
Home Equity		64		64		—		64		1
Commercial Real Estate		10,161		12,201		345		10,614		128
Multifamily		8,384		9,198		100		8,423		101
Land		4,094		6,349		850		4,128		1
Construction		—		2		—		—		—
Commercial Non-Mortgage		612		612		—		607		7
Consumer		—		—		—		—		—
Total	$	25,010	$	30,258	$	1,295	$	25,750	$	263

17

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following table presents impaired loans at December 31, 2013:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,494	$	2,712	$	—	$	2,668	$	225
Home Equity		—		—		—		—		—
Commercial Real Estate		7,128		9,152		—		7,630		315
Multifamily		7,099		7,914		—		7,325		409
Land		742		1,672		—		913		48
Construction		—		—		—		—		—
Commercial Non-Mortgage		600		600		—		726		30
Consumer		—		—		—		4		—
Loans with a specific valuation allowance
1-4 Family		—		—		—		—		—
Home Equity		—		—		—				—
Commercial Real Estate		3,939		3,939		345		2,843		218
Multifamily		1,363		1,363		100		1,100		33
Land		3,420		4,730		850		3,641		—
Construction		—		—		—		—		—
Commercial Non-Mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Totals
1-4 Family	$	2,494	$	2,712	$	—	$	2,668	$	225
Home Equity		—		—		—		—		—
Commercial Real Estate		11,067		13,091		345		10,473		533
Multifamily		8,462		9,277		100		8,425		442
Land		4,162		6,402		850		4,554		48
Construction		—		—		—		—		—
Commercial Non-Mortgage		600		600		—		726		30
Consumer		—		—		—		4		—
Total	$	26,785	$	32,082	$	1,295	$	26,850	$	1,278

18

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The following table presents impaired loans at March 31, 2013:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,629	$	2,838	$	—	$	2,823	$	130
Home Equity		—		—		—		—		—
Commercial Real Estate		6,822		9,065		—		6,912		65
Multifamily		8,609		9,423		—		9,615		88
Land		1,866		3,156		—		5,873		83
Construction		80		82		—		28		—
Commercial Non-Mortgage		277		372		—		277		3
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		180		181		9		182		—
Home Equity		—		—		—		—		—
Commercial Real Estate		4,133		4,133		228		3,766		20
Multifamily		840		840		48		843		—
Land		2,827		4,724		100		1,947		50
Construction		—		—		—		—		—
Commercial Non-Mortgage		560		559		15		560		6
Consumer		—		—		—		—		—
Total
1-4 Family	$	2,809	$	3,019	$	9	$	3,005	$	130
Home Equity		—		—		—		—		—
Commercial Real Estate		10,955		13,198		228		10,678		85
Multifamily		9,449		10,263		48		10,458		88
Land		4,693		7,880		100		7,820		133
Construction		80		82		—		28		—
Commercial Non-Mortgage		837		931		15		837		9
Consumer		—		—		—		—		—
Total	$	28,823	$	35,373	$	400	$	32,826	$	445

19

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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.

20

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

There were no loans that were restructured as TDRs during the three months ended March 31, 2014.

The following table summarizes the loans that were restructured as TDRs during the three months ended March 31, 2013:

	Three months ended
	March 31, 2013
			Balance		Balance
			prior to		after
	Count		TDR		TDR
	(Dollars in thousands)
Commercial real estate		2		139		145
Total loans		2	$	139	$	145

We had no TDRs that had payment defaults during the three months ended March 2014 and 2013. 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. Management predominantly utilizes 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

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 5: 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.

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 March 31, 2014 and December 31, 2013.

22

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

			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)
March 31, 2014
Collateral-dependent Impaired loans	$	—	$	—	$	—	$	—
December 31, 2013
Collateral-dependent Impaired loans	$	7,681	$	—	$	—	$	7,681

Collateral-dependent Impaired Loans

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 at March 31, 2014 and December 31, 2013.

	Collateral-dependent Impaired Loans
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
As of March 31, 2014 Collateral-dependent impaired loans	$	—	Market comparable properties	Marketability discount		—
December 31, 2013 Collateral-dependent impaired loans	$	7,681	Market comparable properties	Marketability discount		9%-46% (34	%)

23

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Fair Value of Financial Instruments

The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value at the individual dates. 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.

			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)
As of March 31, 2014
Financial assets
Cash and cash equivalents	$	25,078	$	25,078	$	—	$	—
Held to maturity securities		57		—		57		—
Loans held for sale		719		—		722		—
Loans, net of allowance for loan losses		285,219		—		—		288,660
Federal Home Loan Bank stock		3,320		—		3,320		—
Interest receivable		710		—		710		—
Financial liabilities
Deposits		198,594		109,674		—		89,643
Federal Home Loan Bank advances		52,000		—		52,553		—
Interest payable		148		—		148		—

24

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

			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)
As of December 31, 2013
Financial assets
Cash and cash equivalents	$	26,181	$	26,181	$	—	$	—
Held to maturity securities		123		—		123		—
Loans held for sale		1,325		—		1,330		—
Loans, net of allowance for loan losses		276,965		—		—		280,407
Federal Home Loan Bank stock		3,320		—		3,320		—
Interest receivable		699		—		699		—
Financial liabilities
Deposits	$	172,983	$	99,121	$	—	$	74,339
Federal Home Loan Bank advances		61,994		—		60,653		—
Interest payable		138		—		138		—

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, Federal Home Loan Bank Stock, Interest Receivable, 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 Except Per Share Amounts)

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 6: Earnings Per Share (In thousands except per share amounts)

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by the Company are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

Unearned ESOP shares, which are not vested and unvested restricted stock awards are excluded from the computation of average shares outstanding.

26

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Earnings per share analysis for three months ended March 31, 2014 and 2013 is as follows (dollars in thousands, except per share data):

	Three months ended March 31, 2014			Three months ended March 31, 2013
Net income	$	304		$	525
Income allocated to participating securities		(9	)		(17	)
Income attributable to common shareholders		295			508
Weighted average shares outstanding (in thousands)		2,295			2,455
Less: average unearned ESOP and unvested restricted stock		(226	)		(254	)
Average Shares		2,069			2,201
Effect of diluted based awards		14			—
Average common and common-equivalent shares for diluted EPS (in thousands)		2,083			2,201
Basic EPS	$	.14		$	.23
Diluted EPS	$	.14		$	.23

27

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Note 7: Share-Based Compensation

In May 2013, the Company’s stockholders approved the Wolverine Bancorp, Inc. 2013 Equity Incentive Plan (“Plan”) which provides for awards of stock options and restricted stock to key officers and outside directors. The cost of the Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock awards is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate, and option term. These assumptions are based on management’s judgments regarding future events, are subjective in nature, and contain uncertainties inherent in an estimate. The cost of the awards are being recognized on a straight-line basis over the five-year vesting period during which participants are required to provide services in exchange for the awards.

Until such time as awards of stock are granted and vest or options are exercised, shares of the Company’s common stock under the Plan shall be authorized but unissued shares. The maximum number of shares authorized under the plan is 351,050. Total share-based compensation expense for the three months ended March 31, 2014 and 2013 was $84 and $82 respectively.

Stock Options

The table below presents the stock option activity for the period shown:

	Options			Weighted average exercise price		Remaining contractual life (years)		Aggregate intrinsic value
Options outstanding at January 1, 2014		129,080		$	17.30		9	$	516
Granted		—			—		—		—
Exercised		(2,507	)		17.30		—		—
Forfeited		(1,968	)		17.50		—		—
Expired		—			—		—		—
Options outstanding at March 31, 2014		124,605		$	17.30		9	$	536
Exercisable at March 31, 2014		25,315		$	17.30		9	$	109

As of March 31, 2014, the Company had $220,000 of unrecognized compensation expense related to stock options. Stock option expense for the three months ended March 31, 2014 and 2013 was $20 and $19 respectively.

28

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

Restricted Stock Awards

Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock awards may not be disposed of or transferred during the vesting period. Restricted stock awards carry with them the right to receive dividends.

The table below presents the restricted stock award activity for the period shown:

	Service- Based Restricted stock awards		Weighted average grant date fair value
Non-vested at January 1, 2014		59,723	$	17.33
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at March 31, 2014		59,723	$	17.33

As of March 31, 2014, the Company had $872 of unrecognized compensation expense related to restricted stock awards. The cost of the restricted stock awards will be amortized in monthly installments over the five-year vesting period. Restricted stock expense for three months ended March 31, 2014 and 2013 was $64 and $63 respectively.

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

General

Management’s discussion and analysis of the financial condition at March 31, 2014 and the results of operations for the three months ended March 31, 2014 and 2013 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.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (the “MD&A”) is designed to provide a narrative on our financial condition, results of operations, liquidity, critical accounting policies, off-balance sheet arrangements and the future impact of accounting standards. It is useful to read our MD&A in conjunction with the consolidated financial statements contained in Part I in this Quarterly Report on Form 10-Q (this “Form 10-Q”), our Annual Report on Form 10-K for the year ended December 31, 2013 (the “Form 10-K”), and our other reports on Forms 10-Q and current reports on Forms 8-K and other publicly available information

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;

29

• 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;

• 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

30

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 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 March 31, 2014 and December 31, 2013 and no valuation allowance was necessary.

31

Comparison of Financial Condition at March 31, 2014 and December 31, 2013

Total assets increased $16.0 million, or 5.3%, to $313.7 million at March 31, 2014 from $297.7 million at December 31, 2013. The increase was primarily a result of a $17.6 million increase in net loans.

Loans held for sale decreased $606,000, or 45.7%, to $719,000 at March 31, 2014 from $1.3 million at December 31, 2013.

Net loans increased $17.6 million, or 6.8%, to $277.0 million at March 31, 2014 from $259.4 million at December 31, 2013. Commercial real estate loans increased $19.5 million, or 15.5%, and construction loans increased $14.1 million, or 162.3%, partially offset by a decrease of $2.7 million, or 4.2%, in multifamily loans.

The undisbursed portion of loans increased $13.3 million to $19.2 million at March 31, 2014 from $5.9 million at December 31, 2013 due primarily to a net increase in undisbursed construction loans of $11.4 million.

Securities held to maturity, consisting of one municipal security at March 31, 2014, decreased $66,000, or 53.7%, to $57,000 from $123,000 at December 31, 2013 due to a principal paydown.

Other real estate owned increased $41,000, or 4.7%, to $913,000 at March 31, 2014, from $872,000 at December 31, 2013 resulting from one loan transferred to REO totaling $255,000 and four sales totaling $193,000.

Other assets, consisting primarily of net deferred and accrued federal taxes, increased $130,000, or 3.0%, to $4.4 million at March 31, 2014, from $4.3 million at December 31, 2013 primarily due to a $46,000 increase in prepaid service maintenance contracts and a $62,000 increase in prepaid bond and insurance premiums.

Deposits increased $25.6 million to $198.6 million at March 31, 2014 from $173.0 million at December 31, 2013 primarily to fund new loan growth. Core deposits (consisting of interest-bearing and noninterest-bearing checking accounts, money market accounts and savings accounts) increased $10.6 million. Certificates of deposit increased $15.0 million, or 20.4%, to $88.9 million at March 31, 2014 from $73.9 million at December 31, 2013.

Federal Home Loan Bank advances decreased $10.0 million from $62.0 million at December 31, 2013 to $52.0 million at March 31, 2014 due to the payoff of a $10.0 million advance at maturity.

Interest payable and other liabilities, consisting primarily of liabilities for checks and money orders and accrued expenses remained constant at $2.5 million from December 31, 2013 to March 31, 2014.

Total stockholders’ equity increased $302,000, or 0.5%, to $60.6 million at March 31, 2014 from $60.3 million at December 31, 2013 primarily due to net income of $304,000.

Comparison of Operating Results for the Three Months Ended March 31, 2014 and 2013

General. We recorded net income of $304,000 for the three months ended March 31, 2014 compared to net income of $525,000 for the three months ended March 31, 2013 primarily due to decreases in net gains on loan sales and other real estate owned. Gain on loan sales decreased $416,000 to $120,000 for the three months ended March 31, 2014 from $536,000 for the three months ended March 31, 2013. Net gains on the sale of other real estate owned decreased $115,000 from a gain of $94,000 for the three months ended March 31, 2013 to a loss of $21,000 for the three months ended March 31, 2014. This was partially offset by an increase of $165,000 in net interest income after provision and a decrease of $56,000 in non-interest expense.

32

We have experienced significant declines in residential mortgage originations primarily due to decreased refinance activity, a slow residential real estate market purchase, and higher interest rates as compared to 2012 and early 2013. To offset the decline in mortgage activity, management embarked on several cost savings measures in late 2013 and the beginning of the first quarter. This included a reorganization of bank personnel and a redesign of operational processes aimed at reallocating resources to areas of need and creating efficiencies that will not only reduce operational costs, but also reduce loan processing time. Although the full impact of these measures has not been realized in the first quarter, management estimates annualized savings of approximately $745,000 of salaries and benefits.

Interest and Dividend Income. Interest and dividend income increased $55,000, or 1.6%, to $3.4 million for the three months ended March 31, 2014. Average balances increased $16.0 million in interest-earning assets to $294.5 million for the three months ended March 31, 2014 from $278.5 million for the three months ended March 31, 2013. This was partially offset by a decrease of 19 basis points in the average yield on earning assets to 4.63% during the 2014 period from 4.82% during the 2013 period as a result of a low-interest rate environment.

Average net loans increased $17.9 million, or 7.1%, to $269.9 million for the three months ended March 31, 2014 from $252.0 million for the three months ended March 31, 2013. As a result, interest income on loans increased $50,000, or 1.5%, to $3.4 million for the three months ended March 31, 2014. This was partially offset by the average yield on loans decreasing 27 basis points to 4.98% for the three months ended March 31, 2014 from 5.25% for the three months ended March 31, 2013. The decrease in average yield on loans was attributable to a continuing low interest rate environment.

Income from dividends and municipal bonds increased $5,000 to $49,000 for the period ended March 31, 2014 from $44,000 for the three months ended March 31, 2013 due primarily to an increase in dividends received from the Federal Home Loan Bank of Indianapolis.

Interest Expense. Interest expense decreased $85,000, or 10.5%, to $721,000 for the three months ended March 31, 2014 from $806,000 for the three months ended March 31, 2013. The decrease in interest expense was primarily due to borrowed funds, which decreased $51,000 to $531,000 for the three months ended March 31, 2014 from $582,000 for the three months ended March 31, 2013, due to the payoff of a $10.0 million maturing advance.

Average interest-bearing liabilities increased $18.2 million, or 8.2%, to $239.4 million for the three months ended March 31, 2014 from $221.2 million for the three months ended March 31, 2013. The average rate paid on these liabilities decreased 26 basis points to 1.20% from 1.46%. Interest expense on certificates of deposit decreased $33,000, or 20.0%, to $133,000 for the three months ended March 31, 2014 from $166,000 for the three months ended March 31, 2013. The average balance of certificates of deposits increased to $81.5 million for the three months ended March 31, 2014, from $64.0 million for the three months ended March 31, 2013. Additionally, the rate on certificates of deposit decreased 39 basis points to 0.65% for the three months ended March 31, 2014 from 1.04% for the three months ended March 31, 2013 reflecting the continuing low interest rate environment.

The average balance of core deposits, consisting of checking accounts, money market accounts and savings accounts, increased $10.7 million, or 11.2%, to $105.9 million for the three months ended March 31, 2014 from $95.2 million for the three months ended March 31, 2013. The interest on core deposits remained constant at $58,000 for the three months ended March 31, 2014 and three months ended March 31, 2013. The rate on core deposits for the three months ended March 31, 2014 decreased two basis points to 0.22% from 0.24% for the three months ended March 31, 2013.

Net Interest Income. Net interest income increased $140,000, or 5.5%, to $2.7 million for the three months ended March 31, 2014 from $2.5 million for the three months ended March 31, 2013, as our average net interest-earning assets increased to $55.1 million from $57.4 million, and net interest rate spread increased two basis points to 3.43% from 3.36%. Changes in net interest income are influenced by a variety of factors, including changes in the level and mix of interest-earning assets and interest-bearing liabilities, the level and direction of interest rates, the difference between short-term and long-term interest rates and the general strength of the economy.

33

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 2013, we recorded a provision for loan losses of $300,000 for the three months ended March 31, 2014 and a provision for loan losses of $325,000 for the three months ended March 31, 2013. We have continued with additional provisions in 2014 primarily due to additional growth in loans. However, management is still concerned with elevated levels of non-performing assets, delinquencies and classified assets as well the Michigan economy, elevated levels of unemployment, and some declining collateral values. At March 31, 2014, non-performing loans totaled $5.8 million, or 2.2% of total loans, as compared to $10.3 million, or 4.1% of total loans, at March 31, 2013. The allowance for loan losses to total loans receivable remained constant at 2.6% for the periods ended March 31, 2014 and 2013.

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 decreased $546,000, or 74.3%, to $189,000 for the three months ended March 31, 2014 from $735,000 for the three months ended March 31, 2013. The decrease was primarily due to net gains on loan sales, which decrease $416,000 due to a decline in mortgage activity.

Noninterest Expense. Noninterest expense decreased $56,000, or 2.1% for the three months ended March 31, 2014 as compared to the three months ended March 31, 2013. This was due to a decrease of $61,000 in salaries and employee benefits and a $35,000 decrease in loan legal expense. This was offset by an increase in net occupancy and equipment expense of $52,000, or 29.0%, to $230,000 for the three months ended March 31, 2014 from $178,000 for the three months ended March 31, 2013.

Income Tax Expense. We recorded $160,000 of income tax expense for the three months ended March 31, 2014 compared to $274,000 of income tax expense for the three months ended March 31, 2013. Our effective tax rate was 34.5% for the three months ended March 31, 2014 and 34.3% for the three months ended March 31, 2013.

Asset Quality

Other real estate owned totaled $913,000, or 0.3% of total assets, at March 31, 2014 compared to $872,000, or 0.3% of total assets at December 31, 2013. The largest relationship as of March 31, 2014 was $429,000, or 47.0% of other real estate owned, which consisted of an office building and vacant lots.

Non-performing assets, which includes non-performing loans, other real estate owned and troubled debt restructurings, totaled $6.7 million, or 2.1% of total assets, at March 31, 2014 compared to $7.1 million, or 2.4% of total assets, at December 31, 2013. We believe that the decreases in nonperforming assets are a sign of improvement in the credit quality of our loan portfolio. However, our level of nonperforming assets has remained elevated, compared to historical levels, due to the unfavorable economic climate within the State of Michigan.

Our largest substandard relationship as of March 31, 2014 has a total balance of $3.4 million. Of the $19.5 million loans rated substandard, approximately $14.8 million are performing.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

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

34

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 and Treasurer, 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 March 31, 2014. 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 March 31, 2014, there were 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.

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 the company of shares of its common stock.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)(2)
January 1, 2014 through January 31, 2014		3,500	$	21.50		3,500		79,855
February 1, 2014 through February 28, 2014		500	$	21.50		500		79,355
March 1, 2014 through March 31, 2014		—	$	—		—		79,355
		4,000				4,000

(1) The Company’s board of directors approved a stock repurchase program on December 10, 2012 for the repurchase of 122,954 shares of common stock.

(2) The Company’s board of directors approved a stock repurchase program on December 9, 2013 for the repurchase of 119,167 shares of common stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

35

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 Suthe 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: May 14, 2014	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer

Date: May 14, 2014	/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: May 14, 2014	/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: May 14, 2014	/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 March 31, 2014 (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: May 14, 2014	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer
Date: May 14, 2014	/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 (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 304	$ 525
Income allocated to participating securities	(9)	(17)
Income attributable to common shareholders	$ 295	$ 508
Weighted average shares outstanding	2,295	2,455
Less: average unearned ESOP and unvested restricted stock	(226)	(254)
Average Shares	2,069	2,201
Effect of diluted based awards	14
Average common and common-equivalent shares for diluted EPS	2,083	2,201
Basic EPS	$ 0.14	$ 0.23
Diluted EPS	$ 0.14	$ 0.23

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Financing Receivables and Allowance for Credit Losses on Financing Receivables (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	$ 7,597	$ 6,671	$ 6,671
Provision charged to expense	300	325	830
Losses charged off		(12)	(212)
Recoveries	22	5	308
Balance, end of period	7,919	6,989	7,597
Ending Balance: individually evaluated for impairment	1,295	400	1,295
Ending balance: collectively evaluated for impairment	6,624	6,589	6,302
Loans:
Ending Balance	304,626	265,846	273,378
Ending Balance: individually evaluated for impairment	25,010	28,823	26,785
Ending Balance: collectively evaluated for impairment	279,616	237,823	246,593
Real Estate, One-to four-family
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,354	1,433	1,433
Provision charged to expense	(358)	21	116
Losses charged off		(12)	(210)
Recoveries	10	3	15
Balance, end of period	1,006	1,445	1,354
Ending Balance: individually evaluated for impairment		9
Ending balance: collectively evaluated for impairment	1,006	1,436	1,354
Loans:
Ending Balance	51,159	54,953	49,726
Ending Balance: individually evaluated for impairment	1,695	2,809	2,494
Ending Balance: collectively evaluated for impairment	49,464	52,144	47,232
Real Estate, Home equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	251	266	266
Provision charged to expense	(103)	26	(16)
Recoveries			1
Balance, end of period	148	292	251
Ending balance: collectively evaluated for impairment	148	292	251
Loans:
Ending Balance	6,997	11,129	7,912
Ending Balance: individually evaluated for impairment	64
Ending Balance: collectively evaluated for impairment	6,933	11,129	7,912
Commercial mortgage loans, Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	2,861	2,663	2,663
Provision charged to expense	611	193	98
Recoveries	3		100
Balance, end of period	3,475	2,856	2,861
Ending Balance: individually evaluated for impairment	345	228	345
Ending balance: collectively evaluated for impairment	3,130	2,628	2,516
Loans:
Ending Balance	145,645	108,649	126,154
Ending Balance: individually evaluated for impairment	10,161	10,955	11,067
Ending Balance: collectively evaluated for impairment	135,484	97,694	115,087
Commercial mortgage loans, Multifamily
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,514	1,497	1,497
Provision charged to expense	(176)	158	17
Balance, end of period	1,338	1,655	1,514
Ending Balance: individually evaluated for impairment	100	48	100
Ending balance: collectively evaluated for impairment	1,238	1,607	1,414
Loans:
Ending Balance	60,129	62,945	62,790
Ending Balance: individually evaluated for impairment	8,384	9,449	8,462
Ending Balance: collectively evaluated for impairment	51,745	54,296	54,328
Commercial mortgage loans, Land
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,145	312	312
Provision charged to expense	270	(47)	651
Recoveries	7		182
Balance, end of period	1,422	265	1,145
Ending Balance: individually evaluated for impairment	850	100	850
Ending balance: collectively evaluated for impairment	572	165	295
Loans:
Ending Balance	10,227	10,065	9,734
Ending Balance: individually evaluated for impairment	4,094	4,693	4,162
Ending Balance: collectively evaluated for impairment	6,133	5,372	5,572
Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	285	302	302
Provision charged to expense	105	49	(17)
Balance, end of period	390	351	285
Ending balance: collectively evaluated for impairment	390	351	285
Loans:
Ending Balance	22,737	13,369	8,669
Ending Balance: individually evaluated for impairment		80
Ending Balance: collectively evaluated for impairment	22,737	13,289	8,669
Commercial Non-mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	157	166	166
Provision charged to expense	(31)	(73)	(14)
Recoveries			5
Balance, end of period	126	93	157
Ending Balance: individually evaluated for impairment		15
Ending balance: collectively evaluated for impairment	126	78	157
Loans:
Ending Balance	6,656	3,541	7,226
Ending Balance: individually evaluated for impairment	612	837	600
Ending Balance: collectively evaluated for impairment	6,044	2,704	6,626
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	30	32	32
Provision charged to expense	(18)	(2)	(5)
Losses charged off			(2)
Recoveries	2	2	5
Balance, end of period	14	32	30
Ending balance: collectively evaluated for impairment	14	32	30
Loans:
Ending Balance	1,076	1,195	1,167
Ending Balance: collectively evaluated for impairment	$ 1,076	$ 1,195	$ 1,167

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Accounting Developments

3 Months Ended

Mar. 31, 2014

Accounting Developments

Note 2: Accounting Developments

Financial Accounting Standards Board (“FASB”)

In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements.

In January 2014, the FASB issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements.

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Summary of Loans Restructured as TDRs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 Contract
Financing Receivable, Modifications [Line Items]
Count	2
Balance prior to TDR	$ 139
Balance after TDR	145
Commercial Real Estate
Financing Receivable, Modifications [Line Items]
Count	2
Balance prior to TDR	139
Balance after TDR	$ 145

XML

Summary of Impaired Loans by Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Balance	$ 25,010	$ 28,823	$ 26,785
Unpaid Principal Balance	30,258	35,373	32,082
Specific Allowance	1,295	400	1,295
QTD Average Balance	25,750	32,826	26,850
QTD Interest Income	263	445	1,278
Real Estate, One-to four-family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	1,514	2,629	2,494
Loans without a specific valuation allowance, Unpaid Principal Balance	1,651	2,838	2,712
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance	1,733	2,823	2,668
Loans without a specific valuation allowance, QTD Interest Income	22	130	225
Loans with a specific valuation allowance, Recorded Balance	181	180
Loans with a specific valuation allowance, Unpaid Principal Balance	181	181
Loans with a specific valuation allowance, Specific Allowance		9
Loans with a specific valuation allowance, QTD Average Balance	181	182
Loans with a specific valuation allowance, QTD Interest Income	3
Recorded Balance	1,695	2,809	2,494
Unpaid Principal Balance	1,832	3,019	2,712
Specific Allowance		9
QTD Average Balance	1,914	3,005	2,668
QTD Interest Income	25	130	225
Real Estate, Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	64
Loans without a specific valuation allowance, Unpaid Principal Balance	64
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance	64
Loans without a specific valuation allowance, QTD Interest Income	1
Recorded Balance	64
Unpaid Principal Balance	64
QTD Average Balance	64
QTD Interest Income	1
Commercial mortgage loans, Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	6,226	6,822	7,128
Loans without a specific valuation allowance, Unpaid Principal Balance	8,255	9,065	9,152
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance	6,652	6,912	7,630
Loans without a specific valuation allowance, QTD Interest Income	65	65	315
Loans with a specific valuation allowance, Recorded Balance	3,935	4,133	3,939
Loans with a specific valuation allowance, Unpaid Principal Balance	3,946	4,133	3,939
Loans with a specific valuation allowance, Specific Allowance	345	228	345
Loans with a specific valuation allowance, QTD Average Balance	3,962	3,766	2,843
Loans with a specific valuation allowance, QTD Interest Income	63	20	218
Recorded Balance	10,161	10,955	11,067
Unpaid Principal Balance	12,201	13,198	13,091
Specific Allowance	345	228	345
QTD Average Balance	10,614	10,678	10,473
QTD Interest Income	128	85	533
Commercial mortgage loans, Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	7,033	8,609	7,099
Loans without a specific valuation allowance, Unpaid Principal Balance	7,847	9,423	7,914
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance	7,066	9,615	7,325
Loans without a specific valuation allowance, QTD Interest Income	81	88	409
Loans with a specific valuation allowance, Recorded Balance	1,351	840	1,363
Loans with a specific valuation allowance, Unpaid Principal Balance	1,351	840	1,363
Loans with a specific valuation allowance, Specific Allowance	100	48	100
Loans with a specific valuation allowance, QTD Average Balance	1,357	843	1,100
Loans with a specific valuation allowance, QTD Interest Income	20		33
Recorded Balance	8,384	9,449	8,462
Unpaid Principal Balance	9,198	10,263	9,277
Specific Allowance	100	48	100
QTD Average Balance	8,423	10,458	8,425
QTD Interest Income	101	88	442
Commercial mortgage loans, Land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	707	1,866	742
Loans without a specific valuation allowance, Unpaid Principal Balance	1,645	3,156	1,672
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance	711	5,873	913
Loans without a specific valuation allowance, QTD Interest Income	1	83	48
Loans with a specific valuation allowance, Recorded Balance	3,387	2,827	3,420
Loans with a specific valuation allowance, Unpaid Principal Balance	4,704	4,724	4,730
Loans with a specific valuation allowance, Specific Allowance	850	100	850
Loans with a specific valuation allowance, QTD Average Balance	3,417	1,947	3,641
Loans with a specific valuation allowance, QTD Interest Income		50
Recorded Balance	4,094	4,693	4,162
Unpaid Principal Balance	6,349	7,880	6,402
Specific Allowance	850	100	850
QTD Average Balance	4,128	7,820	4,554
QTD Interest Income	1	133	48
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance		80
Loans without a specific valuation allowance, Unpaid Principal Balance	2	82
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance		28
Recorded Balance		80
Unpaid Principal Balance	2	82
QTD Average Balance		28
Commercial Non-mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	257	277	600
Loans without a specific valuation allowance, Unpaid Principal Balance	257	372	600
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance	242	277	726
Loans without a specific valuation allowance, QTD Interest Income	3	3	30
Loans with a specific valuation allowance, Recorded Balance	355	560
Loans with a specific valuation allowance, Unpaid Principal Balance	355	559
Loans with a specific valuation allowance, Specific Allowance		15
Loans with a specific valuation allowance, QTD Average Balance	365	560
Loans with a specific valuation allowance, QTD Interest Income	4	6
Recorded Balance	612	837	600
Unpaid Principal Balance	612	931	600
Specific Allowance		15
QTD Average Balance	607	837	726
QTD Interest Income	7	9	30
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Specific Allowance
Loans without a specific valuation allowance, QTD Average Balance			4
QTD Average Balance			$ 4

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Summary of Fair Value Measurements of Assets and Liabilities Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Collateral-dependent Impaired loans, fair value	$ 7,681
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Collateral-dependent Impaired loans, fair value	7,681
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Collateral-dependent Impaired loans, fair value	$ 7,681

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Summary of Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements Other Than Goodwill (Detail) (Significant Unobservable Inputs (Level 3), USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Quantitative Information About Significant Unobservable Inputs [Line Items]
Collateral-dependent impaired loans		$ 7,681
Valuation Technique	Market comparable properties	Market comparable properties
Unobservable Inputs	Marketability discount	Marketability discount
Minimum
Quantitative Information About Significant Unobservable Inputs [Line Items]
Range (Weighted Average)		9.00%
Maximum
Quantitative Information About Significant Unobservable Inputs [Line Items]
Range (Weighted Average)		46.00%
Weighted Average
Quantitative Information About Significant Unobservable Inputs [Line Items]
Range (Weighted Average)		34.00%

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2014

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, 2013 has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three month period ended March 31, 2014 is not necessarily indicative of the results that may be expected for the year ending December 31, 2014. 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, 2014.

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Summary of Estimated Fair Values of Company's Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financial assets
Held to maturity securities	$ 57	$ 123
Interest receivable	710	699
Carrying Amount
Financial assets
Cash and cash equivalents	25,078	26,181
Held to maturity securities	57	123
Loans held for sale	719	1,325
Loans, net of allowance for loan losses	285,219	276,965
Federal Home Loan Bank stock	3,320	3,320
Interest receivable	710	699
Financial liabilities
Deposits	198,594	172,983
Federal Home Loan Bank advances	52,000	61,994
Interest payable	148	138
Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets
Cash and cash equivalents	25,078	26,181
Financial liabilities
Deposits	109,674	99,121
Fair Value Measurement | Significant Other Observable Inputs (Level 2)
Financial assets
Held to maturity securities	57	123
Loans held for sale	722	1,330
Federal Home Loan Bank stock	3,320	3,320
Interest receivable	710	699
Financial liabilities
Federal Home Loan Bank advances	52,553	60,653
Interest payable	148	138
Fair Value Measurement | Significant Unobservable Inputs (Level 3)
Financial assets
Loans, net of allowance for loan losses	288,660	280,407
Financial liabilities
Deposits	$ 89,643	$ 74,339

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 473	$ 791
Interest-earning demand deposits	24,605	25,390
Cash and cash equivalents	25,078	26,181
Held to maturity securities	57	123
Loans held for sale	719	1,325
Loans, net of allowance for loan losses of $7,919 and $7,597	276,965	259,381
Premises and equipment, net	1,508	1,569
Federal Home Loan Bank stock	3,320	3,320
Other real estate owned	913	872
Accrued interest receivable	710	699
Other assets	4,421	4,291
Total assets	313,691	297,761
Liabilities
Deposits	198,594	172,983
Federal Home Loan Bank advances	52,000	61,994
Interest payable and other liabilities	2,470	2,459
Total liabilities	253,064	237,436
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 par value per share: Authorized - 100,000,000 shares Issued and outstanding - 2,293,725 and 2,297,725 at March 31, 2014 and December 31,2013	23	23
Additional paid-in capital	18,950	18,952
Unearned employee stock ownership plan (ESOP)	(1,666)	(1,666)
Retained earnings	43,320	43,016
Total stockholders' equity	60,627	60,325
Total liabilities and stockholders' equity	$ 313,691	$ 297,761

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Condensed Consolidated Statement of Change in Stockholders' Equity (USD $) In Thousands	Total	Common Stock	Additional Paid-in Capital	Unearned ESOP Shares	Retained Earnings
Balances at Dec. 31, 2013	$ 60,325	$ 23	$ 18,952	$ (1,666)	$ 43,016
Net income	304				304
Purchase of 4,000 shares of common stock	(86)		(86)
Share based compensation expense	84		84
Balances at Mar. 31, 2014	$ 60,627	$ 23	$ 18,950	$ (1,666)	$ 43,320

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Stock Option Activity (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Option
Options outstanding at January 1, 2014	129,080
Granted
Exercised	(2,507)
Forfeited	(1,968)
Expired
Options outstanding at March 31, 2014	124,605
Exercisable at March 31, 2014	25,315
Weighted average exercise price
Options outstanding at January 1, 2014	$ 17.30
Granted
Exercised	$ 17.30
Forfeited	$ 17.50
Expired
Options outstanding at March 31, 2014	$ 17.30
Exercisable at March 31, 2014	$ 17.30
Remaining contractual life (year)
Options outstanding at January 1, 2014	9 years
Options outstanding at March 31, 2014	9 years
Exercisable at March 31, 2014	9 years
Aggregate Intrinsic Value
Options outstanding at January 1, 2014	$ 516
Options outstanding at March 31, 2014	536
Exercisable at March 31, 2014	$ 109

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Securities - Additional Information (Detail) (USD $)	Mar. 31, 2014	Mar. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Sale of securities

XML

Summary of Restricted Stock Award Activity (Detail) (Restricted Stock, USD $)	3 Months Ended
	Mar. 31, 2014
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at January 1, 2014	59,723
Granted
Vested
Forfeited
Non-vested at March 31, 2014	59,723
Weighted average grant date fair value, Non-vested at January 1, 2014	$ 17.33
Weighted average grant date fair value, Granted
Weighted average grant date fair value, Vested
Weighted average grant date fair value, Forfeited
Weighted average grant date fair value, Non-vested at March 31, 2014	$ 17.33

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Loans and Allowance for Loan Losses - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Loans [Line Items]
Percentage of construction loans for commercial real estate of loan-to-completed appraised value ratio	75.00%
Maximum period for construction loans	9 months
Charge down to the net realizable value	Other secured loans are 120 days past due
Period for charge off of unsecured open end loans	180 days
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 down of secured loans to net realizable value	90 days
Minimum period for realizable of Troubled Debt Restructuring loans into nonaccrual status or default loans	90 days
Default Balance	$ 0	$ 0
Troubled Debt Restructuring
Loans [Line Items]
Minimum realizable period for new loan into accrual status under performance with new loan terms	6 months
Minimum
Loans [Line Items]
Period for discontinuation of accrual of interest on all loan classes	6 months

XML

Condensed Consolidated Statement of Change in Stockholders' Equity (Parenthetical)	3 Months Ended
	Mar. 31, 2014
Treasury stock, shares purchased	4,000

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Allowance for loan losses	$ 7,919	$ 7,597
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	2,293,725	2,297,725
Common Stock, shares outstanding	2,293,725	2,297,725

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Disclosures About Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Fair Value Measurements of Assets and Liabilities Nonrecurring Basis

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 March 31, 2014 and December 31, 2013.

			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)
March 31, 2014
Collateral-dependent Impaired loans	$	—	$	—	$	—	$	—
December 31, 2013
Collateral-dependent Impaired loans	$	7,681	$	—	$	—	$	7,681

Summary of quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements Other than Goodwill

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will at March 31, 2014 and December 31, 2013.

	Collateral-dependent Impaired Loans
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
As of March 31, 2014 Collateral-dependent impaired loans	$	—	Market comparable properties	Marketability discount		—
December 31, 2013 Collateral-dependent impaired loans	$	7,681	Market comparable properties	Marketability discount		9%-46% (34	%)

Summary of Estimated Fair Values of Company's Financial Instruments

The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value at the individual dates. 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.

			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)
As of March 31, 2014
Financial assets
Cash and cash equivalents	$	25,078	$	25,078	$	—	$	—
Held to maturity securities		57		—		57		—
Loans held for sale		719		—		722		—
Loans, net of allowance for loan losses		285,219		—		—		288,660
Federal Home Loan Bank stock		3,320		—		3,320		—
Interest receivable		710		—		710		—
Financial liabilities
Deposits		198,594		109,674		—		89,643
Federal Home Loan Bank advances		52,000		—		52,553		—
Interest payable		148		—		148		—

			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)
As of December 31, 2013
Financial assets
Cash and cash equivalents	$	26,181	$	26,181	$	—	$	—
Held to maturity securities		123		—		123		—
Loans held for sale		1,325		—		1,330		—
Loans, net of allowance for loan losses		276,965		—		—		280,407
Federal Home Loan Bank stock		3,320		—		3,320		—
Interest receivable		699		—		699		—
Financial liabilities
Deposits	$	172,983	$	99,121	$	—	$	74,339
Federal Home Loan Bank advances		61,994		—		60,653		—
Interest payable		138		—		138		—

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	WBKC
Entity Registrant Name	WOLVERINE BANCORP, INC.
Entity Central Index Key	0001500836
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,293,725

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share

Earnings per share analysis for three months ended March 31, 2014 and 2013 is as follows (dollars in thousands, except per share data):

	Three months ended March 31, 2014			Three months ended March 31, 2013
Net income	$	304		$	525
Income allocated to participating securities		(9	)		(17	)
Income attributable to common shareholders		295			508
Weighted average shares outstanding (in thousands)		2,295			2,455
Less: average unearned ESOP and unvested restricted stock		(226	)		(254	)
Average Shares		2,069			2,201
Effect of diluted based awards		14			—
Average common and common-equivalent shares for diluted EPS (in thousands)		2,083			2,201
Basic EPS	$	.14		$	.23
Diluted EPS	$	.14		$	.23

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Condensed Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest and Dividend Income
Loans	$ 3,360	$ 3,310
Investment securities and other	49	44
Total interest and dividend income	3,409	3,354
Interest Expense
Deposits	190	224
Borrowings	531	582
Total interest expense	721	806
Net Interest Income	2,688	2,548
Provision for loan losses	300	325
Net Interest Income After Provision for Loan Losses	2,388	2,223
Noninterest Income
Service charges and fees	51	54
Net gain on loan sales	120	536
Net gain (loss) on sale of real estate owned	(21)	94
Other	39	51
Total noninterest income	189	735
Noninterest Expense
Salaries and employee benefits	1,231	1,292
Net occupancy and equipment expense	230	178
Information technology expense	60	57
Federal deposit insurance corporation premiums	53	58
Professional and services fees	151	129
Other real estate owned expense	19	18
Loan legal expense	12	47
Advertising expense	40	65
Michigan business tax	51	47
Other	266	268
Total noninterest expense	2,113	2,159
Income Before Income Tax	464	799
Provision for Income Taxes	160	274
Net Income and Comprehensive Income	$ 304	$ 525
Earnings Per Share:
Basic	$ 0.14	$ 0.23
Diluted	$ 0.14	$ 0.23

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Disclosures About Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2014

Disclosures About Fair Value of Assets and Liabilities

Note 5: 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.

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 March 31, 2014 and December 31, 2013.

			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)
March 31, 2014
Collateral-dependent Impaired loans	$	—	$	—	$	—	$	—
December 31, 2013
Collateral-dependent Impaired loans	$	7,681	$	—	$	—	$	7,681

Collateral-dependent Impaired Loans

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 at March 31, 2014 and December 31, 2013.

	Collateral-dependent Impaired Loans
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
As of March 31, 2014 Collateral-dependent impaired loans	$	—	Market comparable properties	Marketability discount		—
December 31, 2013 Collateral-dependent impaired loans	$	7,681	Market comparable properties	Marketability discount		9%-46% (34	%)

Fair Value of Financial Instruments

The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value at the individual dates. 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.

			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)
As of March 31, 2014
Financial assets
Cash and cash equivalents	$	25,078	$	25,078	$	—	$	—
Held to maturity securities		57		—		57		—
Loans held for sale		719		—		722		—
Loans, net of allowance for loan losses		285,219		—		—		288,660
Federal Home Loan Bank stock		3,320		—		3,320		—
Interest receivable		710		—		710		—
Financial liabilities
Deposits		198,594		109,674		—		89,643
Federal Home Loan Bank advances		52,000		—		52,553		—
Interest payable		148		—		148		—

			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)
As of December 31, 2013
Financial assets
Cash and cash equivalents	$	26,181	$	26,181	$	—	$	—
Held to maturity securities		123		—		123		—
Loans held for sale		1,325		—		1,330		—
Loans, net of allowance for loan losses		276,965		—		—		280,407
Federal Home Loan Bank stock		3,320		—		3,320		—
Interest receivable		699		—		699		—
Financial liabilities
Deposits	$	172,983	$	99,121	$	—	$	74,339
Federal Home Loan Bank advances		61,994		—		60,653		—
Interest payable		138		—		138		—

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, Federal Home Loan Bank Stock, Interest Receivable, 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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Loans and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2014

Loans and Allowance for Loan Losses

Note 4: Loans and Allowance for Loan Losses

Categories of loans include:

	March 31,		December 31,
	2014		2013
Real Estate
One-to four-family	$	51,159	$	49,726
Home equity		6,997		7,912
Commercial mortgage loans
Commercial real estate		145,645		126,154
Multifamily		60,129		62,790
Land		10,227		9,734
Construction		22,737		8,669
Commercial Non-mortgage		6,656		7,226
Consumer		1,076		1,167
Total loans		304,626		273,378
Less
Net deferred loan fees, premiums and discounts		554		467
Undisbursed portion of loans		19,188		5,933
Allowance for loan losses		7,919		7,597
Net loans	$	276,965	$	259,381

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 March 31, 2014, December 31, 2013 and March 31, 2013:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Quarter to date analysis as of March 31, 2014
Allowance for loan losses:
Balance, beginning of period	$	1,354		$	251		$	2,861	$	1,514		$	1,145	$	285	$	157		$	30		$	7,597
Provision charged to expense		(358	)		(103	)		611		(176	)		270		105		(31	)		(18	)		300
Losses charged off		—			—			—		—			—		—		—			—			—
Recoveries		10			—			3		—			7		—		—			2			22
Balance, end of period	$	1,006		$	148		$	3,475	$	1,338		$	1,422	$	390	$	126		$	14		$	7,919
Ending Balance: individually evaluated for impairment	$	—		$	—		$	345	$	100		$	850	$	—	$	—		$	—		$	1,295
Ending balance: collectively evaluated for impairment	$	1,006		$	148		$	3,130	$	1,238		$	572	$	390	$	126		$	14		$	6,624
Loans:
Ending Balance	$	51,159		$	6,997		$	145,645	$	60,129		$	10,227	$	22,737	$	6,656		$	1,076		$	304,626
Ending Balance: individually evaluated for impairment	$	1,695		$	64		$	10,161	$	8,384		$	4,094	$	—	$	612		$	—		$	25,010
Ending Balance: collectively evaluated for impairment	$	49,464		$	6,933		$	135,484	$	51,745		$	6,133	$	22,737	$	6,044		$	1,076		$	279,616

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, 2013
Allowance for loan losses:
Balance, beginning of year	$	1,433		$	266		$	2,663	$	1,497	$	312	$	302		$	166		$	32		$	6,671
Provision charged to expense		116			(16	)		98		17		651		(17	)		(14	)		(5	)		830
Losses charged off		(210	)		—			—		—		—		—			—			(2	)		(212	)
Recoveries		15			1			100		—		182		—			5			5			308
Balance, end of year	$	1,354		$	251		$	2,861	$	1,514	$	1,145	$	285		$	157		$	30		$	7,597
Ending Balance: individually evaluated for impairment	$	—		$	—		$	345	$	100	$	850	$	—		$	—		$	—		$	1,295
Ending balance: collectively evaluated for impairment	$	1,354		$	251		$	2,516	$	1,414	$	295	$	285		$	157		$	30		$	6,302
Loans:
Ending Balance	$	49,726		$	7,912		$	126,154	$	62,790	$	9,734	$	8,669		$	7,226		$	1,167		$	273,378
Ending Balance: individually evaluated for impairment	$	2,494		$	—		$	11,067	$	8,462	$	4,162		—		$	600		$	—		$	26,785
Ending Balance: collectively evaluated for impairment	$	47,232		$	7,912		$	115,087	$	54,328	$	5,572	$	8,669		$	6,626		$	1,167		$	246,593

Loan Class	1-4 Family			Home Equity		Commercial Real Estate		Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Quarter to date analysis as of March 31, 2013
Allowance for loan losses:
Balance, beginning of year	$	1,433		$	266	$	2,663	$	1,497	$	312		$	302	$	166		$	32		$	6,671
Provision charged to expense		21			26		193		158		(47	)		49		(73	)		(2	)		325
Losses charged off		(12	)		—		—		—		—			—		—			—			(12	)
Recoveries		3			—		—		—		—			—		—			2			5
Balance, end of year	$	1,445		$	292	$	2,856	$	1,655	$	265		$	351	$	93		$	32		$	6,989
Ending Balance: individually evaluated for impairment	$	9		$	—	$	228	$	48	$	100		$	—	$	15		$	—		$	400
Ending balance: collectively evaluated for impairment	$	1,436		$	292	$	2,628	$	1,607	$	165		$	351	$	78		$	32		$	6,589
Loans:
Ending Balance	$	54,953		$	11,129	$	108,649	$	62,945	$	10,065		$	13,369	$	3,541		$	1,195		$	265,846
Ending Balance: individually evaluated for impairment	$	2,809		$	—	$	10,955	$	9,449	$	4,693		$	80	$	837		$	—		$	28,823
Ending Balance: collectively evaluated for impairment	$	52,144		$	11,129	$	97,694	$	54,296	$	5,372		$	13,289	$	2,704		$	1,195		$	237,823

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 March 31, 2014 and December 31, 2013:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2014		2013		2014		2013		2014		2013		2014		2013
Pass	$	47,690	$	45,735	$	6,997	$	7,806	$	127,673	$	107,825	$	46,419	$	48,808
Pass (Closely Monitored)		1,706		1,827		—		106		4,203		4,081		8,947		9,170
Special Mention		721		818		—		—		4,677		4,992		—		—
Substandard		1,042		1,346		—		—		9,092		9,256		4,763		4,812
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	51,159	$	49,726	$	6,997	$	7,912	$	145,645	$	126,154	$	60,129	$	62,790

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Pass	$	4,501	$	3,742	$	22,737	$	8,669	$	5,903	$	6,540	$	1,076	$	1,167	$	262,996	$	230,292
Pass (Closely Monitored)		1,675		1,830		—		—		141		55		—		—		16,672		17,069
Special Mention		—		43		—		—		32		36		—		—		5,430		5,889
Substandard		4,051		4,119		—		—		580		595		—		—		19,528		20,128
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	10,227	$	9,734	$	22,737	$	8,669	$	6,656	$	7,226	$	1,076	$	1,167	$	304,626	$	273,378

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 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 March 31, 2014 and December 31, 2013:

	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	$	242	$	—	$	—	$	242	$	50,917	$	51,159	$	—	$	—
Home Equity		—		—		—		—		6,997		6,997		—		—
Commercial Real Estate		—		—		—		—		145,645		145,645		—		713
Multifamily		—		—		—		—		60,129		60,129		—		—
Land		50		—		4,023		4,073		6,154		10,227		—		4,017
Construction		—		—		—		—		22,737		22,737		—		—
Commercial Non-Mortgage		—		—		32		32		6,624		6,656		—		143
Consumer		—		—		—		—		1,076		1,076		—		—
Total	$	292	$	—	$	4,055	$	4,347	$	300,279	$	304,626	$	—	$	4,873

As of December 31, 2013:	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	$	217	$	—	$	254	$	471	$	49,255	$	49,726	$	—	$	254
Home Equity		—		—		—		—		7,912		7,912		—		—
Commercial Real Estate		716		667		49		1,432		124,722		126,154		—		779
Multifamily		—		—		1,363		1,363		61,427		62,790		1,363		—
Land		—		—		4,068		4,068		5,666		9,734		27		4,041
Construction		—		—		—		—		8,669		8,669		—		—
Commercial Non-Mortgage		—		—		36		36		7,190		7,226		—		157
Consumer		—		—		—		—		1,167		1,167		—		—
Total	$	933	$	667	$	5,770	$	7,370	$	266,008	$	273,378	$	1,390	$	5,231

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 table presents impaired loans at March 31, 2014:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,514	$	1,651	$	—	$	1,733	$	22
Home Equity		64		64		—		64		1
Commercial Real Estate		6,226		8,255		—		6,652		65
Multifamily		7,033		7,847		—		7,066		81
Land		707		1,645		—		711		1
Construction		—		2		—		—		—
Commercial Non-Mortgage		257		257		—		242		3
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		181		181		—		181		3
Home Equity		—		—		—		—		—
Commercial Real Estate		3,935		3,946		345		3,962		63
Multifamily		1,351		1,351		100		1,357		20
Land		3,387		4,704		850		3,417		—
Construction		—		—		—		—		—
Commercial Non-Mortgage		355		355		—		365		4
Consumer		—		—		—		—		—
Total
1-4 Family	$	1,695	$	1,832	$	—	$	1,914	$	25
Home Equity		64		64		—		64		1
Commercial Real Estate		10,161		12,201		345		10,614		128
Multifamily		8,384		9,198		100		8,423		101
Land		4,094		6,349		850		4,128		1
Construction		—		2		—		—		—
Commercial Non-Mortgage		612		612		—		607		7
Consumer		—		—		—		—		—
Total	$	25,010	$	30,258	$	1,295	$	25,750	$	263

The following table presents impaired loans at December 31, 2013:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,494	$	2,712	$	—	$	2,668	$	225
Home Equity		—		—		—		—		—
Commercial Real Estate		7,128		9,152		—		7,630		315
Multifamily		7,099		7,914		—		7,325		409
Land		742		1,672		—		913		48
Construction		—		—		—		—		—
Commercial Non-Mortgage		600		600		—		726		30
Consumer		—		—		—		4		—
Loans with a specific valuation allowance
1-4 Family		—		—		—		—		—
Home Equity		—		—		—				—
Commercial Real Estate		3,939		3,939		345		2,843		218
Multifamily		1,363		1,363		100		1,100		33
Land		3,420		4,730		850		3,641		—
Construction		—		—		—		—		—
Commercial Non-Mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Totals
1-4 Family	$	2,494	$	2,712	$	—	$	2,668	$	225
Home Equity		—		—		—		—		—
Commercial Real Estate		11,067		13,091		345		10,473		533
Multifamily		8,462		9,277		100		8,425		442
Land		4,162		6,402		850		4,554		48
Construction		—		—		—		—		—
Commercial Non-Mortgage		600		600		—		726		30
Consumer		—		—		—		4		—
Total	$	26,785	$	32,082	$	1,295	$	26,850	$	1,278

The following table presents impaired loans at March 31, 2013:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,629	$	2,838	$	—	$	2,823	$	130
Home Equity		—		—		—		—		—
Commercial Real Estate		6,822		9,065		—		6,912		65
Multifamily		8,609		9,423		—		9,615		88
Land		1,866		3,156		—		5,873		83
Construction		80		82		—		28		—
Commercial Non-Mortgage		277		372		—		277		3
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		180		181		9		182		—
Home Equity		—		—		—		—		—
Commercial Real Estate		4,133		4,133		228		3,766		20
Multifamily		840		840		48		843		—
Land		2,827		4,724		100		1,947		50
Construction		—		—		—		—		—
Commercial Non-Mortgage		560		559		15		560		6
Consumer		—		—		—		—		—
Total
1-4 Family	$	2,809	$	3,019	$	9	$	3,005	$	130
Home Equity		—		—		—		—		—
Commercial Real Estate		10,955		13,198		228		10,678		85
Multifamily		9,449		10,263		48		10,458		88
Land		4,693		7,880		100		7,820		133
Construction		80		82		—		28		—
Commercial Non-Mortgage		837		931		15		837		9
Consumer		—		—		—		—		—
Total	$	28,823	$	35,373	$	400	$	32,826	$	445

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.

There were no loans that were restructured as TDRs during the three months ended March 31, 2014.

The following table summarizes the loans that were restructured as TDRs during the three months ended March 31, 2013:

	Three months ended
	March 31, 2013
			Balance		Balance
			prior to		after
	Count		TDR		TDR
	(Dollars in thousands)
Commercial real estate		2		139		145
Total loans		2	$	139	$	145

We had no TDRs that had payment defaults during the three months ended March 2014 and 2013. 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. Management predominantly utilizes 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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Summary of Loans by Categories of Loans Class (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 304,626	$ 273,378	$ 265,846
Less net deferred loan fees, premiums and discounts	554	467
Less undisbursed portion of loans	19,188	5,933
Less allowance for loan losses	7,919	7,597
Net loans	276,965	259,381
Real Estate, One-to four-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	51,159	49,726	54,953
Real Estate, Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,997	7,912	11,129
Commercial mortgage loans, Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	145,645	126,154	108,649
Commercial mortgage loans, Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	60,129	62,790	62,945
Commercial mortgage loans, Land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	10,227	9,734	10,065
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	22,737	8,669	13,369
Commercial Non-mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,656	7,226	3,541
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,076	$ 1,167	$ 1,195

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Stock Option Activity

The table below presents the stock option activity for the period shown:

	Options			Weighted average exercise price		Remaining contractual life (years)		Aggregate intrinsic value
Options outstanding at January 1, 2014		129,080		$	17.30		9	$	516
Granted		—			—		—		—
Exercised		(2,507	)		17.30		—		—
Forfeited		(1,968	)		17.50		—		—
Expired		—			—		—		—
Options outstanding at March 31, 2014		124,605		$	17.30		9	$	536
Exercisable at March 31, 2014		25,315		$	17.30		9	$	109

Summary of Restricted Stock Award Activity

The table below presents the restricted stock award activity for the period shown:

	Service- Based Restricted stock awards		Weighted average grant date fair value
Non-vested at January 1, 2014		59,723	$	17.33
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at March 31, 2014		59,723	$	17.33

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Securities (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Amortized Cost and Approximate Fair Values of Held to Maturity 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:
March 31, 2014
Municipal	$	57	$	—	$	—	$	57
December 31, 2013
Municipal	$	123	$	—	$	—	$	123

Summary of Amortized Cost and Fair Value of Held to Maturity Securities by Contractual Maturity

The amortized cost and fair value of securities at March 31, 2014, 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.

	March 31, 2014
	Amortized Cost		Fair Value
Within one year	$	57	$	57
One to five years		—		—
Five to ten years		—		—
After ten years		—		—
Totals	$	57	$	57

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Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

Note 6: Earnings Per Share (In thousands except per share amounts)

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by the Company are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

Unearned ESOP shares, which are not vested and unvested restricted stock awards are excluded from the computation of average shares outstanding.

Earnings per share analysis for three months ended March 31, 2014 and 2013 is as follows (dollars in thousands, except per share data):

	Three months ended March 31, 2014			Three months ended March 31, 2013
Net income	$	304		$	525
Income allocated to participating securities		(9	)		(17	)
Income attributable to common shareholders		295			508
Weighted average shares outstanding (in thousands)		2,295			2,455
Less: average unearned ESOP and unvested restricted stock		(226	)		(254	)
Average Shares		2,069			2,201
Effect of diluted based awards		14			—
Average common and common-equivalent shares for diluted EPS (in thousands)		2,083			2,201
Basic EPS	$	.14		$	.23
Diluted EPS	$	.14		$	.23

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Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Share-Based Compensation

Note 7: Share-Based Compensation

In May 2013, the Company’s stockholders approved the Wolverine Bancorp, Inc. 2013 Equity Incentive Plan (“Plan”) which provides for awards of stock options and restricted stock to key officers and outside directors. The cost of the Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock awards is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate, and option term. These assumptions are based on management’s judgments regarding future events, are subjective in nature, and contain uncertainties inherent in an estimate. The cost of the awards are being recognized on a straight-line basis over the five-year vesting period during which participants are required to provide services in exchange for the awards.

Until such time as awards of stock are granted and vest or options are exercised, shares of the Company’s common stock under the Plan shall be authorized but unissued shares. The maximum number of shares authorized under the plan is 351,050. Total share-based compensation expense for the three months ended March 31, 2014 and 2013 was $84 and $82 respectively.

Stock Options

The table below presents the stock option activity for the period shown:

	Options			Weighted average exercise price		Remaining contractual life (years)		Aggregate intrinsic value
Options outstanding at January 1, 2014		129,080		$	17.30		9	$	516
Granted		—			—		—		—
Exercised		(2,507	)		17.30		—		—
Forfeited		(1,968	)		17.50		—		—
Expired		—			—		—		—
Options outstanding at March 31, 2014		124,605		$	17.30		9	$	536
Exercisable at March 31, 2014		25,315		$	17.30		9	$	109

As of March 31, 2014, the Company had $220,000 of unrecognized compensation expense related to stock options. Stock option expense for the three months ended March 31, 2014 and 2013 was $20 and $19 respectively.

Restricted Stock Awards

Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock awards may not be disposed of or transferred during the vesting period. Restricted stock awards carry with them the right to receive dividends.

The table below presents the restricted stock award activity for the period shown:

	Service- Based Restricted stock awards		Weighted average grant date fair value
Non-vested at January 1, 2014		59,723	$	17.33
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at March 31, 2014		59,723	$	17.33

As of March 31, 2014, the Company had $872 of unrecognized compensation expense related to restricted stock awards. The cost of the restricted stock awards will be amortized in monthly installments over the five-year vesting period. Restricted stock expense for three months ended March 31, 2014 and 2013 was $64 and $63 respectively.

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Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Loans by Categories of Loans Class

Categories of loans include:

	March 31,		December 31,
	2014		2013
Real Estate
One-to four-family	$	51,159	$	49,726
Home equity		6,997		7,912
Commercial mortgage loans
Commercial real estate		145,645		126,154
Multifamily		60,129		62,790
Land		10,227		9,734
Construction		22,737		8,669
Commercial Non-mortgage		6,656		7,226
Consumer		1,076		1,167
Total loans		304,626		273,378
Less
Net deferred loan fees, premiums and discounts		554		467
Undisbursed portion of loans		19,188		5,933
Allowance for loan losses		7,919		7,597
Net loans	$	276,965	$	259,381

Financing Receivables and Allowance for Credit Losses on Financing Receivables

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 March 31, 2014, December 31, 2013 and March 31, 2013:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Quarter to date analysis as of March 31, 2014
Allowance for loan losses:
Balance, beginning of period	$	1,354		$	251		$	2,861	$	1,514		$	1,145	$	285	$	157		$	30		$	7,597
Provision charged to expense		(358	)		(103	)		611		(176	)		270		105		(31	)		(18	)		300
Losses charged off		—			—			—		—			—		—		—			—			—
Recoveries		10			—			3		—			7		—		—			2			22
Balance, end of period	$	1,006		$	148		$	3,475	$	1,338		$	1,422	$	390	$	126		$	14		$	7,919
Ending Balance: individually evaluated for impairment	$	—		$	—		$	345	$	100		$	850	$	—	$	—		$	—		$	1,295
Ending balance: collectively evaluated for impairment	$	1,006		$	148		$	3,130	$	1,238		$	572	$	390	$	126		$	14		$	6,624
Loans:
Ending Balance	$	51,159		$	6,997		$	145,645	$	60,129		$	10,227	$	22,737	$	6,656		$	1,076		$	304,626
Ending Balance: individually evaluated for impairment	$	1,695		$	64		$	10,161	$	8,384		$	4,094	$	—	$	612		$	—		$	25,010
Ending Balance: collectively evaluated for impairment	$	49,464		$	6,933		$	135,484	$	51,745		$	6,133	$	22,737	$	6,044		$	1,076		$	279,616

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, 2013
Allowance for loan losses:
Balance, beginning of year	$	1,433		$	266		$	2,663	$	1,497	$	312	$	302		$	166		$	32		$	6,671
Provision charged to expense		116			(16	)		98		17		651		(17	)		(14	)		(5	)		830
Losses charged off		(210	)		—			—		—		—		—			—			(2	)		(212	)
Recoveries		15			1			100		—		182		—			5			5			308
Balance, end of year	$	1,354		$	251		$	2,861	$	1,514	$	1,145	$	285		$	157		$	30		$	7,597
Ending Balance: individually evaluated for impairment	$	—		$	—		$	345	$	100	$	850	$	—		$	—		$	—		$	1,295
Ending balance: collectively evaluated for impairment	$	1,354		$	251		$	2,516	$	1,414	$	295	$	285		$	157		$	30		$	6,302
Loans:
Ending Balance	$	49,726		$	7,912		$	126,154	$	62,790	$	9,734	$	8,669		$	7,226		$	1,167		$	273,378
Ending Balance: individually evaluated for impairment	$	2,494		$	—		$	11,067	$	8,462	$	4,162		—		$	600		$	—		$	26,785
Ending Balance: collectively evaluated for impairment	$	47,232		$	7,912		$	115,087	$	54,328	$	5,572	$	8,669		$	6,626		$	1,167		$	246,593

Loan Class	1-4 Family			Home Equity		Commercial Real Estate		Multifamily		Land			Construction		Commercial Non- Mortgage			Consumer			Total
Quarter to date analysis as of March 31, 2013
Allowance for loan losses:
Balance, beginning of year	$	1,433		$	266	$	2,663	$	1,497	$	312		$	302	$	166		$	32		$	6,671
Provision charged to expense		21			26		193		158		(47	)		49		(73	)		(2	)		325
Losses charged off		(12	)		—		—		—		—			—		—			—			(12	)
Recoveries		3			—		—		—		—			—		—			2			5
Balance, end of year	$	1,445		$	292	$	2,856	$	1,655	$	265		$	351	$	93		$	32		$	6,989
Ending Balance: individually evaluated for impairment	$	9		$	—	$	228	$	48	$	100		$	—	$	15		$	—		$	400
Ending balance: collectively evaluated for impairment	$	1,436		$	292	$	2,628	$	1,607	$	165		$	351	$	78		$	32		$	6,589
Loans:
Ending Balance	$	54,953		$	11,129	$	108,649	$	62,945	$	10,065		$	13,369	$	3,541		$	1,195		$	265,846
Ending Balance: individually evaluated for impairment	$	2,809		$	—	$	10,955	$	9,449	$	4,693		$	80	$	837		$	—		$	28,823
Ending Balance: collectively evaluated for impairment	$	52,144		$	11,129	$	97,694	$	54,296	$	5,372		$	13,289	$	2,704		$	1,195		$	237,823

Credit Risk Profile of our Loan Portfolio Based on Rating Category and Payment Activity

The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of March 31, 2014 and December 31, 2013:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2014		2013		2014		2013		2014		2013		2014		2013
Pass	$	47,690	$	45,735	$	6,997	$	7,806	$	127,673	$	107,825	$	46,419	$	48,808
Pass (Closely Monitored)		1,706		1,827		—		106		4,203		4,081		8,947		9,170
Special Mention		721		818		—		—		4,677		4,992		—		—
Substandard		1,042		1,346		—		—		9,092		9,256		4,763		4,812
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	51,159	$	49,726	$	6,997	$	7,912	$	145,645	$	126,154	$	60,129	$	62,790

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Pass	$	4,501	$	3,742	$	22,737	$	8,669	$	5,903	$	6,540	$	1,076	$	1,167	$	262,996	$	230,292
Pass (Closely Monitored)		1,675		1,830		—		—		141		55		—		—		16,672		17,069
Special Mention		—		43		—		—		32		36		—		—		5,430		5,889
Substandard		4,051		4,119		—		—		580		595		—		—		19,528		20,128
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	10,227	$	9,734	$	22,737	$	8,669	$	6,656	$	7,226	$	1,076	$	1,167	$	304,626	$	273,378

Summary of Our Past due and Non-Accrual Loans

The following table is a summary of our past due and non-accrual loans as of March 31, 2014 and December 31, 2013:

	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	$	242	$	—	$	—	$	242	$	50,917	$	51,159	$	—	$	—
Home Equity		—		—		—		—		6,997		6,997		—		—
Commercial Real Estate		—		—		—		—		145,645		145,645		—		713
Multifamily		—		—		—		—		60,129		60,129		—		—
Land		50		—		4,023		4,073		6,154		10,227		—		4,017
Construction		—		—		—		—		22,737		22,737		—		—
Commercial Non-Mortgage		—		—		32		32		6,624		6,656		—		143
Consumer		—		—		—		—		1,076		1,076		—		—
Total	$	292	$	—	$	4,055	$	4,347	$	300,279	$	304,626	$	—	$	4,873

As of December 31, 2013:	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	$	217	$	—	$	254	$	471	$	49,255	$	49,726	$	—	$	254
Home Equity		—		—		—		—		7,912		7,912		—		—
Commercial Real Estate		716		667		49		1,432		124,722		126,154		—		779
Multifamily		—		—		1,363		1,363		61,427		62,790		1,363		—
Land		—		—		4,068		4,068		5,666		9,734		27		4,041
Construction		—		—		—		—		8,669		8,669		—		—
Commercial Non-Mortgage		—		—		36		36		7,190		7,226		—		157
Consumer		—		—		—		—		1,167		1,167		—		—
Total	$	933	$	667	$	5,770	$	7,370	$	266,008	$	273,378	$	1,390	$	5,231

Summary of Impaired Loans by Class

The following table presents impaired loans at March 31, 2014:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,514	$	1,651	$	—	$	1,733	$	22
Home Equity		64		64		—		64		1
Commercial Real Estate		6,226		8,255		—		6,652		65
Multifamily		7,033		7,847		—		7,066		81
Land		707		1,645		—		711		1
Construction		—		2		—		—		—
Commercial Non-Mortgage		257		257		—		242		3
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		181		181		—		181		3
Home Equity		—		—		—		—		—
Commercial Real Estate		3,935		3,946		345		3,962		63
Multifamily		1,351		1,351		100		1,357		20
Land		3,387		4,704		850		3,417		—
Construction		—		—		—		—		—
Commercial Non-Mortgage		355		355		—		365		4
Consumer		—		—		—		—		—
Total
1-4 Family	$	1,695	$	1,832	$	—	$	1,914	$	25
Home Equity		64		64		—		64		1
Commercial Real Estate		10,161		12,201		345		10,614		128
Multifamily		8,384		9,198		100		8,423		101
Land		4,094		6,349		850		4,128		1
Construction		—		2		—		—		—
Commercial Non-Mortgage		612		612		—		607		7
Consumer		—		—		—		—		—
Total	$	25,010	$	30,258	$	1,295	$	25,750	$	263

The following table presents impaired loans at December 31, 2013:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,494	$	2,712	$	—	$	2,668	$	225
Home Equity		—		—		—		—		—
Commercial Real Estate		7,128		9,152		—		7,630		315
Multifamily		7,099		7,914		—		7,325		409
Land		742		1,672		—		913		48
Construction		—		—		—		—		—
Commercial Non-Mortgage		600		600		—		726		30
Consumer		—		—		—		4		—
Loans with a specific valuation allowance
1-4 Family		—		—		—		—		—
Home Equity		—		—		—				—
Commercial Real Estate		3,939		3,939		345		2,843		218
Multifamily		1,363		1,363		100		1,100		33
Land		3,420		4,730		850		3,641		—
Construction		—		—		—		—		—
Commercial Non-Mortgage		—		—		—		—		—
Consumer		—		—		—		—		—
Totals
1-4 Family	$	2,494	$	2,712	$	—	$	2,668	$	225
Home Equity		—		—		—		—		—
Commercial Real Estate		11,067		13,091		345		10,473		533
Multifamily		8,462		9,277		100		8,425		442
Land		4,162		6,402		850		4,554		48
Construction		—		—		—		—		—
Commercial Non-Mortgage		600		600		—		726		30
Consumer		—		—		—		4		—
Total	$	26,785	$	32,082	$	1,295	$	26,850	$	1,278

The following table presents impaired loans at March 31, 2013:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	2,629	$	2,838	$	—	$	2,823	$	130
Home Equity		—		—		—		—		—
Commercial Real Estate		6,822		9,065		—		6,912		65
Multifamily		8,609		9,423		—		9,615		88
Land		1,866		3,156		—		5,873		83
Construction		80		82		—		28		—
Commercial Non-Mortgage		277		372		—		277		3
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		180		181		9		182		—
Home Equity		—		—		—		—		—
Commercial Real Estate		4,133		4,133		228		3,766		20
Multifamily		840		840		48		843		—
Land		2,827		4,724		100		1,947		50
Construction		—		—		—		—		—
Commercial Non-Mortgage		560		559		15		560		6
Consumer		—		—		—		—		—
Total
1-4 Family	$	2,809	$	3,019	$	9	$	3,005	$	130
Home Equity		—		—		—		—		—
Commercial Real Estate		10,955		13,198		228		10,678		85
Multifamily		9,449		10,263		48		10,458		88
Land		4,693		7,880		100		7,820		133
Construction		80		82		—		28		—
Commercial Non-Mortgage		837		931		15		837		9
Consumer		—		—		—		—		—
Total	$	28,823	$	35,373	$	400	$	32,826	$	445

Summary of Loans Restructured as TDRs

The following table summarizes the loans that were restructured as TDRs during the three months ended March 31, 2013:

	Three months ended
	March 31, 2013
			Balance		Balance
			prior to		after
	Count		TDR		TDR
	(Dollars in thousands)
Commercial real estate		2		139		145
Total loans		2	$	139	$	145

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Share Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amortization period of stock options	5 years
Maximum Number of shares authorized under plan	351,050
Share based compensation expense	$ 84,000	$ 82,000
Unrecognized compensation expense related to stock options	220,000
Stock option expense	20,000	19,000
Unrecognized compensation expense	872,000
Amortization period of stock options	5 years
Restricted stock expense	$ 64,000	$ 63,000

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Summary of Amortized Cost and Fair Value of Held to Maturity Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities, Contractual Maturity, Within one year, Amortized Cost	$ 57
Held to Maturity Securities, Contractual Maturity, One to five years, Amortized Cost
Held to Maturity Securities, Contractual Maturity, Five to ten years, Amortized Cost
Held to Maturity Securities, Contractual Maturity, After ten years, Amortized Cost
Held-to-maturity securities, amortized cost, total	57	123
Held to Maturity Securities, Contractual Maturity, Within one year, Fair Value	57
Held to Maturity Securities, Contractual Maturity, One to five years, Fair Value
Held to Maturity Securities, Contractual Maturity, Five to ten years, Fair Value
Held to Maturity Securities, Contractual Maturity, After ten years, Fair Value
Held to Maturity Securities, Fair Value	$ 57

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Credit Risk Profile of Our Loan Portfolio Based on Rating Category and Payment Activity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 304,626	$ 273,378	$ 265,846
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	262,996	230,292
Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	16,672	17,069
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,430	5,889
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	19,528	20,128
Commercial mortgage loans, Land
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	10,227	9,734	10,065
Commercial mortgage loans, Land | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	4,501	3,742
Commercial mortgage loans, Land | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,675	1,830
Commercial mortgage loans, Land | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable		43
Commercial mortgage loans, Land | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	4,051	4,119
Construction
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	22,737	8,669	13,369
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	22,737	8,669
Commercial Non-mortgage
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	6,656	7,226	3,541
Commercial Non-mortgage | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,903	6,540
Commercial Non-mortgage | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	141	55
Commercial Non-mortgage | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	32	36
Commercial Non-mortgage | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	580	595
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,076	1,167	1,195
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,076	1,167
Real Estate, One-to four-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	51,159	49,726	54,953
Real Estate, One-to four-family | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	47,690	45,735
Real Estate, One-to four-family | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,706	1,827
Real Estate, One-to four-family | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	721	818
Real Estate, One-to four-family | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,042	1,346
Real Estate, Home equity
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	6,997	7,912	11,129
Real Estate, Home equity | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	6,997	7,806
Real Estate, Home equity | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable		106
Commercial mortgage loans, Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	145,645	126,154	108,649
Commercial mortgage loans, Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	127,673	107,825
Commercial mortgage loans, Commercial real estate | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	4,203	4,081
Commercial mortgage loans, Commercial real estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	4,677	4,992
Commercial mortgage loans, Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	9,092	9,256
Commercial mortgage loans, Multifamily
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	60,129	62,790	62,945
Commercial mortgage loans, Multifamily | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	46,419	48,808
Commercial mortgage loans, Multifamily | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	8,947	9,170
Commercial mortgage loans, Multifamily | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 4,763	$ 4,812

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Condensed Consolidated Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating Activities
Net income	$ 304	$ 525
Items not requiring (providing) cash
Depreciation	65	51
Provision for loan losses	300	325
Amortization of Federal Home Loan Bank advance prepayment penalty	6	17
(Gain) loss on other real estate owned	21	(94)
Loans originated for sale	(3,234)	(17,174)
Proceeds from loans sold	3,960	18,009
Gain on sale of loans	(120)	(536)
Share based compensation	84	82
Changes in Interest receivable and other assets	(141)	277
Interest payable and other liabilities	11	339
Net cash provided by operating activities	1,256	1,821
Investing Activities
Proceeds from calls, maturities and pay-downs of held to maturity securities	66	69
Net change in loans	(18,139)	2,592
Proceeds from sale of real estate owned	193	469
Purchase of premises and equipment	(4)	(31)
Net cash used (provided) by investing activities	(17,884)	3,099
Financing Activities
Net change in demand deposits, money market, checking and savings accounts	10,553	771
Net change in certificates of deposit	15,058	3,381
Repayment of Federal Home Loan Bank advances	(10,000)
Purchase of common stock	(86)	(100)
Net cash provided by financing activities	15,525	4,052
Decrease (Increase) in Cash and Cash Equivalents	(1,103)	8,972
Cash and Cash Equivalents, Beginning of Period	26,181	16,552
Cash and Cash Equivalents, End of Period	25,078	25,524
Supplemental Disclosures of Cash Flows Information
Interest paid	711	2,972
Income taxes paid	200
Loans transferred to real estate owned	$ 255

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Securities

3 Months Ended

Mar. 31, 2014

Securities

Note 3: 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:
March 31, 2014
Municipal	$	57	$	—	$	—	$	57
December 31, 2013
Municipal	$	123	$	—	$	—	$	123

The amortized cost and fair value of securities at March 31, 2014, 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.

	March 31, 2014
	Amortized Cost		Fair Value
Within one year	$	57	$	57
One to five years		—		—
Five to ten years		—		—
After ten years		—		—
Totals	$	57	$	57

There were no sales of securities during the three months ended March 31, 2014 and 2013.

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Summary of Our Past Due and Non-Accrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 292	$ 933
60-89 Days Past Due		667
Greater than 90 Days	4,055	5,770
Total Past Due	4,347	7,370
Current	300,279	266,008
Total Loans Receivable	304,626	273,378	265,846
Total Loans>90 Days & Accruing		1,390
Total Nonaccrual	4,873	5,231
1-4 Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	242	217
Greater than 90 Days		254
Total Past Due	242	471
Current	50,917	49,255
Total Loans Receivable	51,159	49,726
Total Nonaccrual		254
Home Equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	6,997	7,912
Total Loans Receivable	6,997	7,912
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		716
60-89 Days Past Due		667
Greater than 90 Days		49
Total Past Due		1,432
Current	145,645	124,722
Total Loans Receivable	145,645	126,154
Total Nonaccrual	713	779
Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Greater than 90 Days		1,363
Total Past Due		1,363
Current	60,129	61,427
Total Loans Receivable	60,129	62,790
Total Loans>90 Days & Accruing		1,363
Land
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	50
Greater than 90 Days	4,023	4,068
Total Past Due	4,073	4,068
Current	6,154	5,666
Total Loans Receivable	10,227	9,734
Total Loans>90 Days & Accruing		27
Total Nonaccrual	4,017	4,041
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	22,737	8,669
Total Loans Receivable	22,737	8,669
Commercial Non-Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Greater than 90 Days	32	36
Total Past Due	32	36
Current	6,624	7,190
Total Loans Receivable	6,656	7,226
Total Nonaccrual	143	157
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,076	1,167
Total Loans Receivable	$ 1,076	$ 1,167

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Summary of Amortized Cost and Approximate Fair Values of Held to Maturity Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities, Amortized cost	$ 57	$ 123
Held to Maturity Securities, Fair Value	57
Municipal Bonds
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities, Amortized cost	57	123
Held to Maturity Securities, Gross Unrealized Gains
Held to Maturity Securities, Gross Unrealized Losses
Held to Maturity Securities, Fair Value	$ 57	$ 123