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, 2015

OR

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

For the transition period from                      to                     

Commission File No. 001-35034

Wolverine Bancorp, Inc.

(Exact name of registrant as specified in its charter)

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

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

(989) 631-4280

(Registrant’s telephone number)

N/A

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.    YES  x    NO  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

The number of shares outstanding of the Registrant’s common stock, $0.01 per share, as of April 15, 2015, was 2,205,665.

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, 2015 (unaudited) and December 31, 2014		1
	Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2015 and 2014 (unaudited)		2
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014 (unaudited)		3
	Condensed Consolidated Statement of Changes in Stockholders’ Equity for the three months ended March 31, 2015 (unaudited)		4
	Notes to Condensed Consolidated Financial Statements (unaudited)		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		36
Item 4.	Controls and Procedures		36
Part II. Other Information
Item 1.	Legal Proceedings		37
Item 1A.	Risk Factors		37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 3.	Defaults upon Senior Securities		38
Item 4.	Mine Safety Disclosures		38
Item 5.	Other Information		38
Item 6.	Exhibits		38
	Signature Page		39

Wolverine Bancorp, Inc.

Condensed Consolidated Balance Sheets

(Amounts in Thousands, except per share data)

	March 31,			December 31,
	2015			2014
	(Unaudited)
Assets
Cash and due from banks	$	419		$	477
Interest-earning demand deposits		54,352			29,209
Cash and cash equivalents		54,771			29,686
Investment securities held to maturity		499			—
Loans held for sale		960			570
Loans, net of allowance for loan losses of $8,236 and $7,976		286,982			296,477
Premises and equipment, net		1,333			1,384
Federal Home Loan Bank stock		2,700			2,500
Other real estate owned		259			335
Accrued interest receivable		835			777
Other assets		4,877			4,895
Total assets	$	353,216		$	336,624
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	229,603		$	223,529
Federal Home Loan Bank advances		60,000			50,000
Interest payable and other liabilities		2,583			1,557
Total liabilities		292,186			275,086
Commitments and Contingencies
Stockholders’ Equity
Common Stock, $0.01 par value per share:
Authorized – 100,000,000 shares
Issued and outstanding – 2,205,665 and 2,263,848 at March 31, 2015 and December 31, 2014		23			23
Additional paid-in capital		17,366			18,640
Unearned employee stock ownership plan (ESOP)		(1,537	)		(1,564	)
Retained earnings		45,178			44,439
Total stockholders’ equity		61,030			61,538
Total liabilities and stockholders’ equity	$	353,216		$	336,624

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,
	2015			2014
	(Unaudited)
Interest and Dividend Income
Loans	$	3,615		$	3,360
Investment securities and other		62			49
Total interest and dividend income		3,677			3,409
Interest Expense
Deposits		325			190
Borrowings		525			531
Total interest expense		850			721
Net Interest Income		2,827			2,688
Provision for Loan Losses		250			300
Net Interest Income After Provision for Loan Losses		2,577			2,388
Noninterest Income
Service charges and fees		67			51
Net gain on loan sales		176			120
Net loss on sale of real estate owned		(37	)		(21	)
Other		109			39
Total noninterest income		315			189
Noninterest Expense
Salaries and employee benefits		1,028			1,231
Net occupancy and equipment expense		220			230
Information technology expense		57			60
Federal deposit insurance corporation premiums		46			53
Professional and services fees		107			151
Other real estate owned expense		12			19
Loan legal expense		64			12
Advertising expense		20			40
Michigan business tax		47			51
Other		214			266
Total noninterest expense		1,815			2,113
Income Before Income Tax		1,077			464
Provision for Income Taxes		338			160
Net Income and Comprehensive Income	$	739		$	304
Earnings Per Share:
Basic	$	0.36		$	0.14
Diluted	$	0.36		$	0.14

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,
	2015			2014
	(Unaudited)
Operating Activities
Net income	$	739		$	304
Items not requiring (providing) cash
Depreciation		61			65
Provision for loan losses		250			300
Loss (gain) on other real estate owned		37			21
Loans originated for sale		(5,928	)		(3,234	)
Proceeds from loans sold		5,714			3,960
Net gain on sale of loans		(176	)		(120	)
Share based compensation		78			84
Changes in
Earned ESOP shares		65			—
Deferred income taxes		(13	)		—
Interest receivable and other assets		(219	)		(141	)
Interest payable and other liabilities		984			14
Net cash provided by operating activities		1,592			1,252
Investing Activities
Purchase of held to maturity		(499	)		—
Proceeds from calls, maturities and pay-downs of held to maturity securities		—			66
Net change in loans		9,420			(18,139	)
Proceeds from sale of real estate owned		87			193
Purchase of FHLB stock		(200	)		—
Net cash provided (used) by investing activities		8,808			(17,880	)
Financing Activities
Net change in demand deposits, money market, checking and savings accounts		901			10,553
Net change in certificates of deposit		5,174			15,058
Repayment of Federal Home Loan Bank advances		—			(10,000	)
Proceeds from Federal Home Loan Bank advances		10,000			—
Purchase of common stock		(1,390	)		(86	)
Net cash provided (used) by financing activities		14,685			15,525
Change in Cash and Cash Equivalents		25,085			(1,103	)
Cash and Cash Equivalents, Beginning of Period		29,686			26,181
Cash and Cash Equivalents, End of Period	$	54,771		$	25,078
Supplemental Disclosures of Cash Flows Information
Interest paid	$	815		$	711
Income taxes paid		175			200
Loans transferred to real estate owned		42			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, 2015	$	23	$	18,640		$	(1,564	)	$	44,439		61,538
Net income		—		—			—			739		739
Purchase of 58,183 shares of common stock		—		(1,390	)		—			—		(1,390	)
Share based compensation expense		—		78			—			—		78
ESOP shares earned		—		38			27			—		65
Balances at March 31, 2015	$	23	$	17,366		$	(1,537	)	$	45,178	$	61,030

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, 2014 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, 2015 is not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2015.

Note 2: Accounting Developments

The FASB has issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” Existing GAAP does not include explicit guidance about a customer’s accounting for fees paid in a cloud computing arrangement. Examples of cloud computing arrangements include: (a) software as a service; (b) platform as a service; (c) infrastructure as a service; and (d) other similar hosting arrangements. The amendments add guidance to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The guidance already exists in the FASB Accounting Standards Codification™ in paragraphs 985-605-55-121 through 55-123, but it is included in a Subtopic applied by cloud service providers to determine whether an arrangement includes the sale or license of software. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for all entities. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations.

5

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

The FASB has issued an ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ (Codification) and improves current GAAP by:

• Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met.

• Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE).

• Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs.

The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations.

In May 2014, the FASB, in joint cooperation with IASB, issued ASU 2014-09, “Revenue from Contracts with Customers.” The topic of Revenue Recognition had become broad, with several other regulatory agencies issuing standards which lacked cohesion. The new guidance establishes a “common framework” and “reduces the number of requirements to which an entity must consider in recognizing revenue” and yet provides improved disclosures to assist stakeholders reviewing financial statements. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations.

6

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, 2015
Treasury bond	$	499	$	1	$	—	$	500

The amortized cost and fair value of securities at March 31, 2015, 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, 2015
	Amortized Cost		Fair Value
Within one year	$	499	$	500
One to five years		—		—
Five to ten years		—		—
After ten years		—		—
Totals	$	499	$	500

There were no sales of securities during the three ended March 31, 2015 and 2014.

7

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,
	2015		2014
Real Estate
One-to four-family	$	42,337	$	44,316
Home equity		5,999		6,645
Commercial mortgage loans
Commercial real estate		155,700		153,705
Multifamily		59,374		61,204
Land		10,149		10,060
Construction		20,847		21,673
Commercial Non-mortgage		12,073		14,717
Consumer		1,272		1,142
Total loans		307,751		313,462
Less
Net deferred loan fees, premiums and discounts		529		555
Undisbursed portion of loans		12,004		8,454
Allowance for loan losses		8,236		7,976
Net loans	$	286,982	$	296,477

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

1-4 Family, Home Equity, and Consumer

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

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

8

Wolverine Bancorp, Inc.

Form 10-Q

(Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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

Commercial real estate and multifamily

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

Land

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

Construction

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

9

Wolverine Bancorp, Inc.

Form 10-Q

(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.

10

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, 2015, December 31, 2014 and March 31, 2014:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of March 31, 2015
Allowance for loan losses:
Balance, beginning of period	$	881		$	100		$	3,573	$	1,391		$	1,205	$	539	$	269		$	18		$	7,976
Provision charged to expense		22			(9	)		131		(90	)		156		78		(40	)		2			250
Losses charged off		(45	)		—			—		—			—		—		—			(1	)		(46	)
Recoveries		16			—			39		—			—		—		—			—			55
Balance, end of period	$	874		$	91		$	3,743	$	1,301		$	1,362	$	617	$	229		$	19		$	8,236
Ending Balance: individually evaluated for impairment	$	—		$	—		$	200	$	100		$	850	$	—	$	—		$	—		$	1,150
Ending balance: collectively evaluated for impairment	$	874		$	91		$	3,543	$	1,201		$	512	$	617	$	229		$	19		$	7,086
Loans:
Ending Balance	$	42,337		$	5,999		$	155,700	$	59,374		$	10,149	$	20,847	$	12,073		$	1,272		$	307,751
Ending Balance: individually evaluated for impairment	$	1,775		$	60		$	13,840	$	8,125		$	2,918	$	—	$	325		$	—			27,043
Ending Balance: collectively evaluated for impairment	$	40,562		$	5,939		$	141,860	$	51,249		$	7,231	$	20,847	$	11,748		$	1,272		$	280,708

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
Year to date analysis as of December 31, 2014
Allowance for loan losses:
Balance, beginning of year	$	1,354		$	251		$	2,861	$	1,514		$	1,145		$	285		$	157	$	30		$	7,597
Provision charged to expense		(475	)		(151	)		702		(123	)		(33	)		1,004			112		(16	)		1,020
Losses charged off		(55	)		—			—		—			—			(750	)		—		(1	)		(806	)
Recoveries		57			—			10		—			93			—			—		5			165
Balance, end of period	$	881		$	100		$	3,573	$	1,391		$	1,205		$	539		$	269	$	18		$	7,976
Ending Balance: individually evaluated for impairment	$	—		$	—		$	200	$	100		$	850		$	—		$	—	$	—		$	1,150
Ending balance: collectively evaluated for impairment	$	881		$	100		$	3,373	$	1,291		$	355		$	539		$	269	$	18		$	6,826
Loans:
Ending Balance	$	44,316		$	6,645		$	153,705	$	61,204		$	10,060		$	21,673		$	14,717	$	1,142		$	313,462
Ending Balance: individually evaluated for impairment	$	1,645		$	63		$	8,956	$	8,192		$	3,224		$	5,349		$	351	$	—		$	27,780
Ending Balance: collectively evaluated for impairment	$	42,671		$	6,582		$	144,749	$	53,012		$	6,836		$	16,324		$	14,366	$	1,142		$	285,682

12

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 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

13

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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, 2015 and December 31, 2014:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2015		2014		2015		2014		2015		2014		2015		2014
Pass	$	38,290	$	40,253	$	5,999	$	6,645	$	131,710	$	131,833	$	45,641	$	47,308
Pass (Closely Monitored)		2,303		2,446		—		—		9,544		10,446		9,131		9,244
Special Mention		410		413		—		—		1,506		2,383		—		—
Substandard		1,334		1,204		—		—		12,940		9,043		4,602		4,652
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	42,337	$	44,316	$	5,999	$	6,645	$	155,700	$	153,705	$	59,374	$	61,204

14

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Pass	$	5,433	$	5,160	$	20,634	$	18,213	$	11,399	$	14,023	$	1,272	$	1,142	$	260,378	$	264,577
Pass (Closely Monitored)		1,880		2,156		213		—		349		343		—		—		23,420		24,635
Special Mention		—		—		—		—		—		19		—		—		1,916		2,815
Substandard		2,836		2,744		—		3,460		325		332		—		—		22,037		21,435
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	10,149	$	10,060	$	20,847	$	21,673	$	12,073	$	14,717	$	1,272	$	1,142	$	307,751	$	313,462

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.

15

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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, 2015 and December 31, 2014:

	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	$	184	$	237	$	66	$	487	$	41,850	$	42,337	$	—	$	66
Home Equity		—		—		—		—		5,999		5,999		—		—
Commercial Real Estate		5,003		29		879		5,911		149,789		155,700		—		5,241
Multifamily		—		—		—		—		59,374		59,374		—		—
Land		—		—		2,408		2,408		7,741		10,149		—		2,408
Construction		—		—		—		—		20,847		20,847		—		—
Commercial Non-Mortgage		—		—		—		—		12,073		12,073		—		—
Consumer		—		—		—		—		1,272		1,272		—		—
Total	$	5,187	$	266	$	3,353	$	8,806	$	298,945	$	307,751	$	—	$	7,715

16

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

As of December 31, 2014:	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	$	334	$	152	$	107	$	593	$	43,723	$	44,316	$	—	$	107
Home Equity		—		—		—		—		6,645		6,645		—		—
Commercial Real Estate		818		634		649		2,101		151,604		153,705		—		1,339
Multifamily		—		—		—		—		61,204		61,204		—		—
Land		—		—		2,700		2,700		7,360		10,060		—		2,700
Construction		3,960		—		—		3,960		17,713		21,673		—		3,960
Commercial Non-Mortgage		—		—		19		19		14,698		14,717		—		19
Consumer		—		—		—		—		1,142		1,142		—		—
Total	$	5,112	$	786	$	3,475	$	9,373	$	304,089	$	313,462	$	—	$	8,125

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.

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 March 31, 2015:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,598	$	1,773	$	—	$	1,525		20
Home Equity		60		60		—		62		—
Commercial Real Estate		11,250		14,118		—		11,314		69
Multifamily		6,782		7,597		—		6,814		81
Land		510		791		—		517		7
Construction		—		—		—		2,674		—
Commercial Non-Mortgage		—		—		—		10		—
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		177		177		—		178		3
Home Equity		—		—		—		—		—
Commercial Real Estate		2,590		2,590		200		2,758		48
Multifamily		1,343		1,343		100		1,344		20
Land		2,408		3,937		850		2,554		1
Construction		—		—		—		—		—
Commercial Non-Mortgage		325		325		—		329		6
Consumer		—		—		—		—		—
Total
1-4 Family	$	1,775	$	1,950	$	—	$	1,703	$	23
Home Equity		60		60		—		62		—
Commercial Real Estate		13,840		16,708		200		14,072		117
Multifamily		8,125		8,940		100		8,158		101
Land		2,918		4,728		850		3,071		8
Construction		—		—		—		2,674		—
Commercial Non-Mortgage		325		325		—		339		6
Consumer		—		—		—		—		—
Total	$	27,043	$	32,711	$	1,150	$	30,079	$	255

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 December 31, 2014:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,467	$	1,643	$	—	$	1,472	$	77
Home Equity		63		63		—		65		2
Commercial Real Estate		6,029		8,309		—		6,680		323
Multifamily		6,847		7,661		—		6,941		392
Land		524		805		—		504		4
Construction		5,349		4,712		—		3,664		57
Commercial Non-Mortgage		19		19		—		137		5
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	178	$	178	$	—	$	180	$	8
Home Equity		—		—		—		—		—
Commercial Real Estate		2,927		2,927		200		3,000		200
Multifamily		1,345		1,345		100		1,355		83
Land		2,700		4,060		850		3,044		1
Construction		—		—		—		2,674		107
Commercial Non-Mortgage		332		332		—		343		18
Consumer		—		—		—		—		—
Totals
1-4 Family	$	1,645	$	1,821	$	—	$	1,652	$	85
Home Equity		63		63		—		65		2
Commercial Real Estate		8,956		11,236		200		9,680		523
Multifamily		8,192		9,006		100		8,296		475
Land		3,224		4,865		850		3,548		5
Construction		5,349		4,712		—		6,338		164
Commercial Non-Mortgage		351		351		—		480		23
Consumer		—		—		—		—		—
Total	$	27,780	$	32,054	$	1,150	$	30,059	$	1,277

19

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

20

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.

21

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 and 2015.

We had no TDRs that had payment defaults during the three months ended March 2015 and 2014. 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.

22

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, 2015 and December 31, 2014.

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 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, 2015
Collateral-dependent Impaired loans	$	48	$	—	$	—	$	48
December 31, 2014
Collateral-dependent Impaired loans	$	3,822	$	—	$	—	$	3,822

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, 2015 and December 31, 2014.

	Collateral-dependent Impaired Loans
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
As of March 31, 2015 Collateral-dependent impaired loans	$	48	Market comparable properties	Marketability discount		12	%
As of December 31, 2014 Collateral-dependent impaired loans	$	3,822	Market comparable properties	Marketability discount		6%-38% (7	%)

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 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, 2015
Financial assets
Cash and cash equivalents	$	54,771	$	54,771	$	—	$	—
Held to maturity securities		499		—		500		—
Loans held for sale		960		—		963		—
Loans, net of allowance for loan losses		286,982		—		—		289,348
Federal Home Loan Bank stock		2,700		—		2,700		—
Interest receivable		835		—		835		—
Financial liabilities
Deposits		229,603		119,470		—		111,622
Federal Home Loan Bank advances		60,000		—		60,638		—
Interest payable		192		—		192		—

25

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, 2014
Financial assets
Cash and cash equivalents	$	29,686	$	29,686	$	—	$	—
Loans held for sale		570		—		570		—
Loans, net of allowance for loan losses		296,477		—		—		299,514
Federal Home Loan Bank stock		2,500		—		2,500		—
Interest receivable		777		—		777		—
Financial liabilities
Deposits	$	223,529	$	114,418	$	—	$	110,560
Federal Home Loan Bank advances		50,000		—		50,567		—
Interest payable		157		—		157		—

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.

26

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.

27

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands Except Per Share Amounts)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

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.

28

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, 2015 and 2014 is as follows (dollars in thousands, except per share data):

	Three months ended March 31, 2015			Three months ended March 31, 2014
Net income	$	739		$	304
Income allocated to participating securities		(15	)		(9	)
Income attributable to common shareholders		725			295
Weighted average shares outstanding (in thousands)		2,220			2,295
Less: average unearned ESOP and unvested restricted stock		(195	)		(226	)
Average Shares		2,025			2,069
Effect of diluted share-based awards		18			14
Average common and common-equivalent shares for diluted EPS (in thousands)		2,043			2,083
Basic EPS	$	.36		$	.14
Diluted EPS	$	.36		$	.14

29

Wolverine Bancorp, Inc.

Form 10-Q

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)

(Dollars in Thousands)

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, 2015 and 2014 was $78 and $84 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, 2015		121,449	$	17.45		8	$	789
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Options outstanding at March 31, 2015		121,449	$	17.45		8	$	789
Exercisable at March 31, 2015		46,436	$	17.30		8	$	309

As of March 31, 2015, the Company had $148 of unrecognized compensation expense related to stock options. Stock option expense for the three months ended March 31, 2015 and 2014 was $15 and $20 respectively.

30

Wolverine Bancorp, Inc.

Form 10-Q

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, 2015		43,974	$	17.44
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at March 31, 2015		43,974	$	17.44

As of March 31, 2015, the Company had $613 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, 2015 and 2014 was $63 and $64 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, 2015 and the results of operations for the three months ended March 31, 2015 and 2014 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, 2014 (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;

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• 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 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.

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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, 2015 and December 31, 2014 and no valuation allowance was necessary.

33

Comparison of Financial Condition at March 31, 2015 and December 31, 2014

Total assets increased $16.6 million, or 4.9%, to $353.2 million at March 31, 2015 from $336.6 million at December 31, 2014. The increase was primarily a result of the purchase of a $10.0 million FHLB advance, a $9.5 million decrease in loans, and a $6.0 million increase in deposits.

Loans held for sale increased $390,000, or 68.4%, to $960,000 at March 31, 2015 from $570,000 at December 31, 2014.

Net loans decreased $9.5 million, or 3.2%, to $287.0 million at March 31, 2015 from $296.5 million at December 31, 2014. Commercial non-mortgage loans decreased $2.6 million, or 18.0%, one-to-four family loans decreased $2.0 million, or 4.5%, partially offset by an increase of $2.0 million, or 1.3%, in commercial real estate loans.

The undisbursed portion of loans increased $3.6 million to $12.0 million at March 31, 2015 from $8.5 million at December 31, 2014 due primarily to a net increase in undisbursed construction loans of $3.5 million.

Securities held to maturity increased to $499,000 at March 31, 2015 from $0 at December 31, 2014 due to the purchase of a treasury bond.

Other real estate owned decreased $76,000, or 22.7%, to $259,000 at March 31, 2015, from $335,000 at December 31, 2014 primarily resulting from sales of $87,000 and write-downs of $31,000 partially offset by one loan transferred to real estate in judgment totaling $42,000.

Other assets, consisting primarily of net deferred and accrued federal taxes, remained unchanged at $4.9 million from December 31, 2014 to March 31, 2015.

Deposits increased $6.1 million to $229.6 million at March 31, 2015 from $223.5 million at December 31, 2014. Core deposits (consisting of interest-bearing and noninterest-bearing checking accounts, money market accounts and savings accounts) increased $5.0 million.

Certificates of deposit increased $1.0 million, or 0.9%, to $110.1 million at March 31, 2015 from $109.1 million at December 31, 2014.

Federal Home Loan Bank advances increased $10.0 million from $50.0 million at December 31, 2014 to $60.0 million at March 31, 2015 due to proceeds of $10.0 million dollars from advances.

Interest payable and other liabilities, consisting primarily of liabilities for checks and money orders and accrued expenses increased $1.0 million, or 65.8%, to $2.6 million at March 31, 2015 from $1.6 million primarily due to a $871,000 increase in borrower’s prepaid taxes and insurances.

Total stockholders’ equity decreased $508,000, or 0.8%, to $61.0 million at March 31, 2015 from $61.5 million at December 31, 2014, primarily due to stock repurchases of $1.4 million partially offset by net income of $739,000.

Comparison of Operating Results for the Three Months Ended March 31, 2015 and 2014

General. We recorded net income of $739,000 for the three months ended March 31, 2015 compared to net income of $304,000 for the three months ended March 31, 2014 primarily due to an increase in net interest income after provision for loan losses of $189,000. Salaries and employee benefits expense decreased $203,000 to $1.0 million for the three months ended March 31, 2015 from $1.2 million for the three months ended March 31, 2014.

34

Interest and Dividend Income. Interest and dividend income increased $268,000, or 7.9%, to $3.7 million for the three months ended March 31, 2015. Average balances of interest-earnings assets increased $51.3 million to $345.8 million for the three months ended March 31, 2015 from $294.5 million for the three months ended March 31, 2014 as the average yield on interest-earning assets decreased 38 basis points to 4.25% during the 2015 period from 4.63% during the 2014 period as a result of the low-interest rate environment.

Average net loans increased $20.5 million, or 7.6%, to $290.4 million for the three months ended March 31, 2015 from $269.9 million for the three months ended March 31, 2014. As a result, interest income on loans increased $255,000, or 7.6%, to $3.6 million for the three months ended March 31, 2015 from $3.4 million for the three months ended March 31, 2014 as the average yield remained constant at 4.98%.

Income from dividends and investment securities increased $13,000 to $62,000 for the quarter ended March 31, 2015 from $49,000 for the quarter ended March 31, 2014.

Interest Expense. Interest expense increased $129,000, or 17.9%, to $850,000 for the three months ended March 31, 2015 from $721,000 for the three months ended March 31, 2014. Interest expense on deposits increased $135,000 to $325,000 for the three months ended March 31, 2015 from $190,000 for the three months ended March 31, 2014. Interest expense on borrowed funds decreased $6,000 to $525,000 for the three months ended March 31, 2015 from $531,000 for the three months ended March 31, 2014.

Average interest-bearing liabilities increased $50.7 million, or 21.2%, to $290.1 million for the three months ended March 31, 2015 from $239.4 million for the three months ended March 31, 2014. The average rate paid on these liabilities decreased 3 basis points to 1.17% from 1.20%. Interest expense on certificates of deposit increased $123,000, or 92.4%, to $256,000 for the three months ended March 31, 2015 from $133,000 for the three months ended March 31, 2014. The average balance of certificates of deposits increased to $110.5 million for the three months ended March 31, 2015, from $81.5 million for the three months ended March 31, 2014. Additionally, the rate on certificates of deposit increased 28 basis points to 0.93% for the three months ended March 31, 2015 from 0.65% for the three months ended March 31, 2014 primarily due to increased brokered deposits.

The average balance of core deposits, consisting of checking accounts, money market accounts and savings accounts, increased $13.8 million, or 13.0%, to $119.7 million for the three months ended March 31, 2015 from $105.9 million for the three months ended March 31, 2014. The interest on core deposits increased $12,000 to $70,000 for the three months ended March 31, 2015 from $58,000 for three months ended March 31, 2014. The rate on core deposits for the three months ended March 31, 2015 increased one basis point to 0.23% from 0.22% for the three months ended March 31, 2014.

Net Interest Income. Net interest income increased $139,000, or 5.2%, to $2.8 million for the three months ended March 31, 2015 from $2.7 million for the three months ended March 31, 2014, as our average net loans increased to $290.4 million from $269.9 million. 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.

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 2014, we recorded a provision for loan losses of $250,000 for the three months ended March 31, 2015 and a provision for loan losses of $300,000 for the three months ended March 31, 2014. We have continued with additional provisions in 2015 based upon management’s calculation, and because 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, 2015, non-performing loans totaled $8.0 million, or 2.6% of total loans, as compared to $5.8 million, or 2.2% of total loans, at March 31, 2014. The allowance for loan losses to total loans receivable increased to 2.8% at March 31, 2015 from 2.6% for the period ended March 31, 2014.

35

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

Noninterest Income. Noninterest income increased $126,000, or 66.7%, to $315,000 for the three months ended March 31, 2015 from $189,000 for the three months ended March 31, 2014. This was primarily due to increases in loan fees earned of $61,000 and in net gains on loan sales of $56,000, due to increased loan originations and sales

Noninterest Expense. Noninterest expense decreased $297,000, or 14.1% for the three months ended March 31, 2015 as compared to the three months ended March 31, 2014. This was primarily due to a decrease of $203,000 in salaries and employee benefits.

Income Tax Expense. We recorded $338,000 of income tax expense for the three months ended March 31, 2015 compared to $160,000 of income tax expense for the three months ended March 31, 2014. Our effective tax rate was 31.4% for the three months ended March 31, 2015 and 34.5% for the three months ended March 31, 2014.

Asset Quality

Other real estate owned totaled $259,000, or 0.1% of total assets, at March 31, 2015 compared to $335,000, or 0.1% of total assets, at December 31, 2014. The largest relationship as of March 31, 2015 was $204,000, or 78.8% of other real estate owned, which consisted of land.

Non-performing assets, which includes non-performing loans, other real estate owned and troubled debt restructurings, totaled $9.3 million, or 2.64% of total assets, at March 31, 2015 compared to $9.4 million, or 2.8% of total assets, at December 31, 2014.

Our largest substandard and non-performing relationship as of March 31, 2015 has a balance of $3.4 million. Of the $22.1 million loans rated substandard, approximately $12.6 million are performing.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

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

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer and the Chief Operating Officer 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, 2015. 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, 2015, 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.

36

As of first quarter 2015 the Company has adopted new minimum risk-based capital and leverage ratios and refines the definition of what constitutes as “capital” for purposes of calculating these ratios based on rules effective January 1, 2015. The new minimum capital requirements include: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 to risk-based asset capital ratio of 6% (increased from 4%); a “capital conservation buffer” of 2.5%, and resulting in the following minimum ratios: (i) a common equity Tier 1 capital ratio of 7%, (ii) a Tier 1 risk-based asset capital ratio of 8.5%, and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until January 2019. These changes had no significant impact on the Company.

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)(3)
January 1, 2015 through January 31, 2015		41,983	$	23.75		41,983		5,458
February 1, 2015 through February 28, 2015		6,200	$	23.84		6,200		109,922	(3)
March 1, 2015 through March 31, 2015		10,000	$	24.30		10,000		99,922
		58,183				58,183

(1) The Company’s board of directors approved a stock repurchase program 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.

(3) The Company’s board of directors approved a stock repurchase program on February 9, 2015 for the repurchase of 110,664 shares of common stock.

37

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

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

38

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 15, 2015	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer
Date: May 15, 2015	/s/ Rick A. Rosinski
	Rick A. Rosinski
	Chief Operating Officer and Treasurer

39

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 rep1``zccccort 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 15, 2015	/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 15, 2015	/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, 2015 (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 15, 2015	/s/ David H. Dunn
	David H. Dunn
	President and Chief Executive Officer
Date: May 15, 2015	/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

Share-Based Compensation - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Maximum Number of shares authorized under plan	351,050
Share based compensation expense	$ 78	$ 84
Unrecognized compensation expense related to stock options	148
Stock option expense	15	20
Unrecognized compensation expense	613
Amortization period of stock options	5 years
Restricted stock expense	$ 63	$ 64

XML

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, 2015	Mar. 31, 2014	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	$ 7,976	$ 7,597	$ 7,597
Provision charged to expense	250	300	1,020
Losses charged off	(46)		(806)
Recoveries	55	22	165
Balance, end of period	8,236	7,919	7,976
Ending Balance: individually evaluated for impairment	1,150	1,295	1,150
Ending balance: collectively evaluated for impairment	7,086	6,624	6,826
Loans:
Ending Balance	307,751	304,626	313,462
Ending Balance: individually evaluated for impairment	27,043	25,010	27,780
Ending Balance: collectively evaluated for impairment	280,708	279,616	285,682
Real Estate, One-to four-family
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	881	1,354	1,354
Provision charged to expense	22	(358)	(475)
Losses charged off	(45)		(55)
Recoveries	16	10	57
Balance, end of period	874	1,006	881
Ending balance: collectively evaluated for impairment	874	1,006	881
Loans:
Ending Balance	42,337	51,159	44,316
Ending Balance: individually evaluated for impairment	1,775	1,695	1,645
Ending Balance: collectively evaluated for impairment	40,562	49,464	42,671
Real Estate, Home equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	100	251	251
Provision charged to expense	(9)	(103)	(151)
Balance, end of period	91	148	100
Ending balance: collectively evaluated for impairment	91	148	100
Loans:
Ending Balance	5,999	6,997	6,645
Ending Balance: individually evaluated for impairment	60	64	63
Ending Balance: collectively evaluated for impairment	5,939	6,933	6,582
Commercial mortgage loans, Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	3,573	2,861	2,861
Provision charged to expense	131	611	702
Recoveries	39	3	10
Balance, end of period	3,743	3,475	3,573
Ending Balance: individually evaluated for impairment	200	345	200
Ending balance: collectively evaluated for impairment	3,543	3,130	3,373
Loans:
Ending Balance	155,700	145,645	153,705
Ending Balance: individually evaluated for impairment	13,840	10,161	8,956
Ending Balance: collectively evaluated for impairment	141,860	135,484	144,749
Commercial mortgage loans, Multifamily
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,391	1,514	1,514
Provision charged to expense	(90)	(176)	(123)
Balance, end of period	1,301	1,338	1,391
Ending Balance: individually evaluated for impairment	100	100	100
Ending balance: collectively evaluated for impairment	1,201	1,238	1,291
Loans:
Ending Balance	59,374	60,129	61,204
Ending Balance: individually evaluated for impairment	8,125	8,384	8,192
Ending Balance: collectively evaluated for impairment	51,249	51,745	53,012
Commercial mortgage loans, Land
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,205	1,145	1,145
Provision charged to expense	156	270	(33)
Recoveries		7	93
Balance, end of period	1,362	1,422	1,205
Ending Balance: individually evaluated for impairment	850	850	850
Ending balance: collectively evaluated for impairment	512	572	355
Loans:
Ending Balance	10,149	10,227	10,060
Ending Balance: individually evaluated for impairment	2,918	4,094	3,224
Ending Balance: collectively evaluated for impairment	7,231	6,133	6,836
Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	539	285	285
Provision charged to expense	78	105	1,004
Losses charged off			(750)
Balance, end of period	617	390	539
Ending balance: collectively evaluated for impairment	617	390	539
Loans:
Ending Balance	20,847	22,737	21,673
Ending Balance: individually evaluated for impairment			5,349
Ending Balance: collectively evaluated for impairment	20,847	22,737	16,324
Commercial Non-mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	269	157	157
Provision charged to expense	(40)	(31)	112
Balance, end of period	229	126	269
Ending balance: collectively evaluated for impairment	229	126	269
Loans:
Ending Balance	12,073	6,656	14,717
Ending Balance: individually evaluated for impairment	325	612	351
Ending Balance: collectively evaluated for impairment	11,748	6,044	14,366
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	18	30	30
Provision charged to expense	2	(18)	(16)
Losses charged off	(1)		(1)
Recoveries		2	5
Balance, end of period	19	14	18
Ending balance: collectively evaluated for impairment	19	14	18
Loans:
Ending Balance	1,272	1,076	1,142
Ending Balance: collectively evaluated for impairment	$ 1,272	$ 1,076	$ 1,142

XML

Accounting Developments

3 Months Ended

Mar. 31, 2015

Accounting Developments

Note 2: Accounting Developments

The FASB has issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” Existing GAAP does not include explicit guidance about a customer’s accounting for fees paid in a cloud computing arrangement. Examples of cloud computing arrangements include: (a) software as a service; (b) platform as a service; (c) infrastructure as a service; and (d) other similar hosting arrangements. The amendments add guidance to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The guidance already exists in the FASB Accounting Standards Codification™ in paragraphs 985-605-55-121 through 55-123, but it is included in a Subtopic applied by cloud service providers to determine whether an arrangement includes the sale or license of software. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for all entities. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations.

The FASB has issued an ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ (Codification) and improves current GAAP by:

• Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met.

• Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE).

• Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs.

The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations.

In May 2014, the FASB, in joint cooperation with IASB, issued ASU 2014-09, “Revenue from Contracts with Customers.” The topic of Revenue Recognition had become broad, with several other regulatory agencies issuing standards which lacked cohesion. The new guidance establishes a “common framework” and “reduces the number of requirements to which an entity must consider in recognizing revenue” and yet provides improved disclosures to assist stakeholders reviewing financial statements. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations.

XML

Summary of Fair Value Measurements of Assets and Liabilities Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Collateral-dependent Impaired loans, fair value	$ 48	$ 3,822
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Collateral-dependent Impaired loans, fair value	48	3,822
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	$ 48	$ 3,822

XML

Summary of Impaired Loans by Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Balance	$ 27,043	$ 25,010	$ 27,780
Unpaid Principal Balance	32,711	30,258	32,054
Specific Allowance	1,150	1,295	1,150
QTD Average Balance	30,079	25,750	30,059
QTD Interest Income	255	263	1,277
Real Estate, One-to four-family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	1,598	1,514	1,467
Loans without a specific valuation allowance, Unpaid Principal Balance	1,773	1,651	1,643
Loans without a specific valuation allowance, YTD Average Balance	1,525	1,733	1,472
Loans without a specific valuation allowance, YTD Interest Income	20	22	77
Loans with a specific valuation allowance, Recorded Balance	177	181	178
Loans with a specific valuation allowance, Unpaid Principal Balance	177	181	178
Loans with a specific valuation allowance, YTD Average Balance	178	181	180
Loans with a specific valuation allowance, YTD Interest Income	3	3	8
Recorded Balance	1,775	1,695	1,645
Unpaid Principal Balance	1,950	1,832	1,821
QTD Average Balance	1,703	1,914	1,652
QTD Interest Income	23	25	85
Real Estate, Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	60	64	63
Loans without a specific valuation allowance, Unpaid Principal Balance	60	64	63
Loans without a specific valuation allowance, YTD Average Balance	62	64	65
Loans without a specific valuation allowance, YTD Interest Income		1	2
Recorded Balance	60	64	63
Unpaid Principal Balance	60	64	63
QTD Average Balance	62	64	65
QTD Interest Income		1	2
Commercial mortgage loans, Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	11,250	6,226	6,029
Loans without a specific valuation allowance, Unpaid Principal Balance	14,118	8,255	8,309
Loans without a specific valuation allowance, YTD Average Balance	11,314	6,652	6,680
Loans without a specific valuation allowance, YTD Interest Income	69	65	323
Loans with a specific valuation allowance, Recorded Balance	2,590	3,935	2,927
Loans with a specific valuation allowance, Unpaid Principal Balance	2,590	3,946	2,927
Loans with a specific valuation allowance, YTD Average Balance	2,758	3,962	3,000
Loans with a specific valuation allowance, YTD Interest Income	48	63	200
Recorded Balance	13,840	10,161	8,956
Unpaid Principal Balance	16,708	12,201	11,236
Specific Allowance	200	345	200
QTD Average Balance	14,072	10,614	9,680
QTD Interest Income	117	128	523
Commercial mortgage loans, Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	6,782	7,033	6,847
Loans without a specific valuation allowance, Unpaid Principal Balance	7,597	7,847	7,661
Loans without a specific valuation allowance, YTD Average Balance	6,814	7,066	6,941
Loans without a specific valuation allowance, YTD Interest Income	81	81	392
Loans with a specific valuation allowance, Recorded Balance	1,343	1,351	1,345
Loans with a specific valuation allowance, Unpaid Principal Balance	1,343	1,351	1,345
Loans with a specific valuation allowance, YTD Average Balance	1,344	1,357	1,355
Loans with a specific valuation allowance, YTD Interest Income	20	20	83
Recorded Balance	8,125	8,384	8,192
Unpaid Principal Balance	8,940	9,198	9,006
Specific Allowance	100	100	100
QTD Average Balance	8,158	8,423	8,296
QTD Interest Income	101	101	475
Commercial mortgage loans, Land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance	510	707	524
Loans without a specific valuation allowance, Unpaid Principal Balance	791	1,645	805
Loans without a specific valuation allowance, YTD Average Balance	517	711	504
Loans without a specific valuation allowance, YTD Interest Income	7	1	4
Loans with a specific valuation allowance, Recorded Balance	2,408	3,387	2,700
Loans with a specific valuation allowance, Unpaid Principal Balance	3,937	4,704	4,060
Loans with a specific valuation allowance, YTD Average Balance	2,554	3,417	3,044
Loans with a specific valuation allowance, YTD Interest Income	1		1
Recorded Balance	2,918	4,094	3,224
Unpaid Principal Balance	4,728	6,349	4,865
Specific Allowance	850	850	850
QTD Average Balance	3,071	4,128	3,548
QTD Interest Income	8	1	5
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance			5,349
Loans without a specific valuation allowance, Unpaid Principal Balance		2	4,712
Loans without a specific valuation allowance, YTD Average Balance	2,674		3,664
Loans without a specific valuation allowance, YTD Interest Income			57
Loans with a specific valuation allowance, YTD Average Balance			2,674
Loans with a specific valuation allowance, YTD Interest Income			107
Recorded Balance			5,349
Unpaid Principal Balance		2	4,712
QTD Average Balance	2,674		6,338
QTD Interest Income			164
Commercial Non-mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans without a specific valuation allowance, Recorded Balance		257	19
Loans without a specific valuation allowance, Unpaid Principal Balance		257	19
Loans without a specific valuation allowance, YTD Average Balance	10	242	137
Loans without a specific valuation allowance, YTD Interest Income		3	5
Loans with a specific valuation allowance, Recorded Balance	325	355	332
Loans with a specific valuation allowance, Unpaid Principal Balance	325	355	332
Loans with a specific valuation allowance, YTD Average Balance	329	365	343
Loans with a specific valuation allowance, YTD Interest Income	6	4	18
Recorded Balance	325	612	351
Unpaid Principal Balance	325	612	351
QTD Average Balance	339	607	480
QTD Interest Income	$ 6	$ 7	$ 23

XML

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, 2015	Dec. 31, 2014
Quantitative Information About Significant Unobservable Inputs [Line Items]
Collateral-dependent impaired loans	$ 48	$ 3,822
Valuation Technique	Market comparable properties	Market comparable properties
Unobservable Inputs	Marketability discount	Marketability discount
Minimum
Quantitative Information About Significant Unobservable Inputs [Line Items]
Range		6.00%
Maximum
Quantitative Information About Significant Unobservable Inputs [Line Items]
Range		38.00%
Weighted Average
Quantitative Information About Significant Unobservable Inputs [Line Items]
Range	12.00%	7.00%

XML

Summary of Estimated Fair Values of Company's Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financial assets
Held to maturity securities	$ 500
Interest receivable	835	777
Carrying Amount
Financial assets
Cash and cash equivalents	54,771	29,686
Held to maturity securities	499
Loans held for sale	960	570
Loans, net of allowance for loan losses	286,982	296,477
Federal Home Loan Bank stock	2,700	2,500
Interest receivable	835	777
Financial liabilities
Deposits	229,603	223,529
Federal Home Loan Bank advances	60,000	50,000
Interest payable	192	157
Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets
Cash and cash equivalents	54,771	29,686
Financial liabilities
Deposits	119,470	114,418
Fair Value Measurement | Significant Other Observable Inputs (Level 2)
Financial assets
Held to maturity securities	500
Loans held for sale	963	570
Federal Home Loan Bank stock	2,700	2,500
Interest receivable	835	777
Financial liabilities
Federal Home Loan Bank advances	60,638	50,567
Interest payable	192	157
Fair Value Measurement | Significant Unobservable Inputs (Level 3)
Financial assets
Loans, net of allowance for loan losses	289,348	299,514
Financial liabilities
Deposits	$ 111,622	$ 110,560

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2015

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, 2014 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, 2015 is not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2015.

XML

Earnings Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 739	$ 304
Income allocated to participating securities	(15)	(9)
Income attributable to common shareholders	$ 725	$ 295
Weighted average shares outstanding (in thousands)	2,220	2,295
Less: average unearned ESOP and unvested restricted stock	(195)	(226)
Average Shares	2,025	2,069
Effect of diluted share-based awards	18	14
Average common and common-equivalent shares for diluted EPS	2,043	2,083
Basic EPS	$ 0.36	$ 0.14
Diluted EPS	$ 0.36	$ 0.14

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 419	$ 477
Interest-earning demand deposits	54,352	29,209
Cash and cash equivalents	54,771	29,686
Investment securities held to maturity	499
Loans held for sale	960	570
Loans, net of allowance for loan losses of $8,236 and $7,976	286,982	296,477
Premises and equipment, net	1,333	1,384
Federal Home Loan Bank stock	2,700	2,500
Other real estate owned	259	335
Accrued interest receivable	835	777
Other assets	4,877	4,895
Total assets	353,216	336,624
Liabilities
Deposits	229,603	223,529
Federal Home Loan Bank advances	60,000	50,000
Interest payable and other liabilities	2,583	1,557
Total liabilities	292,186	275,086
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 par value per share: Authorized - 100,000,000 shares Issued and outstanding - 2,205,665 and 2,263,848 at March 31, 2015 and December 31, 2014	23	23
Additional paid-in capital	17,366	18,640
Unearned employee stock ownership plan (ESOP)	(1,537)	(1,564)
Retained earnings	45,178	44,439
Total stockholders' equity	61,030	61,538
Total liabilities and stockholders' equity	$ 353,216	$ 336,624

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Consolidated Statement of Changes in Stockholders' Equity (USD $) In Thousands	Total	Common Stock	Additional Paid-in Capital	Unearned ESOP Shares	Retained Earnings
Balances at Dec. 31, 2014	$ 61,538	$ 23	$ 18,640	$ (1,564)	$ 44,439
Net income	739				739
Purchase of 58,183 shares of common stock	(1,390)		(1,390)
Share based compensation expense	78		78
ESOP shares earned	65		38	27
Balances at Mar. 31, 2015	$ 61,030	$ 23	$ 17,366	$ (1,537)	$ 45,178

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Summary of Restricted Stock Award Activity (Detail) (Restricted Stock, USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at January 1, 2015	43,974
Granted	0
Vested	0
Forfeited	0
Non-vested at March 31, 2015	43,974
Weighted average grant date fair value, Non-vested at January 1, 2015	$ 17.44
Weighted average grant date fair value, Granted	$ 0
Weighted average grant date fair value, Vested	$ 0
Weighted average grant date fair value, Forfeited	$ 0
Weighted average grant date fair value, Non-vested at March 31, 2015	$ 17.44

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Securities - Additional Information (Detail) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Sale of securities	$ 0	$ 0

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Loans and Allowance for Loan Losses - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
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
Loans restructured as TDRs	$ 0	$ 0
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

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Consolidated Statement of Changes in Stockholders' Equity (Parenthetical)	3 Months Ended
	Mar. 31, 2015
Treasury stock, shares purchased	58,183

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Allowance for loan losses	$ 8,236	$ 7,976
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	2,205,665	2,263,848
Common Stock, shares outstanding	2,205,665	2,263,848

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Disclosures About Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014.

			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, 2015
Collateral-dependent Impaired loans	$	48	$	—	$	—	$	48
December 31, 2014
Collateral-dependent Impaired loans	$	3,822	$	—	$	—	$	3,822

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, 2015 and December 31, 2014.

	Collateral-dependent Impaired Loans
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
As of March 31, 2015 Collateral-dependent impaired loans	$	48	Market comparable properties	Marketability discount		12	%
As of December 31, 2014 Collateral-dependent impaired loans	$	3,822	Market comparable properties	Marketability discount		6%-38% (7	%)

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, 2015
Financial assets
Cash and cash equivalents	$	54,771	$	54,771	$	—	$	—
Held to maturity securities		499		—		500		—
Loans held for sale		960		—		963		—
Loans, net of allowance for loan losses		286,982		—		—		289,348
Federal Home Loan Bank stock		2,700		—		2,700		—
Interest receivable		835		—		835		—
Financial liabilities
Deposits		229,603		119,470		—		111,622
Federal Home Loan Bank advances		60,000		—		60,638		—
Interest payable		192		—		192		—

			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, 2014
Financial assets
Cash and cash equivalents	$	29,686	$	29,686	$	—	$	—
Loans held for sale		570		—		570		—
Loans, net of allowance for loan losses		296,477		—		—		299,514
Federal Home Loan Bank stock		2,500		—		2,500		—
Interest receivable		777		—		777		—
Financial liabilities
Deposits	$	223,529	$	114,418	$	—	$	110,560
Federal Home Loan Bank advances		50,000		—		50,567		—
Interest payable		157		—		157		—

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 15, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
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		2,205,665

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share

Earnings per share analysis for three months ended March 31, 2015 and 2014 is as follows (dollars in thousands, except per share data):

	Three months ended March 31, 2015			Three months ended March 31, 2014
Net income	$	739		$	304
Income allocated to participating securities		(15	)		(9	)
Income attributable to common shareholders		725			295
Weighted average shares outstanding (in thousands)		2,220			2,295
Less: average unearned ESOP and unvested restricted stock		(195	)		(226	)
Average Shares		2,025			2,069
Effect of diluted share-based awards		18			14
Average common and common-equivalent shares for diluted EPS (in thousands)		2,043			2,083
Basic EPS	$	.36		$	.14
Diluted EPS	$	.36		$	.14

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Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest and Dividend Income
Loans	$ 3,615	$ 3,360
Investment securities and other	62	49
Total interest and dividend income	3,677	3,409
Interest Expense
Deposits	325	190
Borrowings	525	531
Total interest expense	850	721
Net Interest Income	2,827	2,688
Provision for Loan Losses	250	300
Net Interest Income After Provision for Loan Losses	2,577	2,388
Noninterest Income
Service charges and fees	67	51
Net gain on loan sales	176	120
Net loss on sale of real estate owned	(37)	(21)
Other	109	39
Total noninterest income	315	189
Noninterest Expense
Salaries and employee benefits	1,028	1,231
Net occupancy and equipment expense	220	230
Information technology expense	57	60
Federal deposit insurance corporation premiums	46	53
Professional and services fees	107	151
Other real estate owned expense	12	19
Loan legal expense	64	12
Advertising expense	20	40
Michigan business tax	47	51
Other	214	266
Total noninterest expense	1,815	2,113
Income Before Income Tax	1,077	464
Provision for Income Taxes	338	160
Net Income	739	304
Comprehensive Income	$ 739	$ 304
Earnings Per Share:
Basic	$ 0.36	$ 0.14
Diluted	$ 0.36	$ 0.14

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Disclosures About Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014.

			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, 2015
Collateral-dependent Impaired loans	$	48	$	—	$	—	$	48
December 31, 2014
Collateral-dependent Impaired loans	$	3,822	$	—	$	—	$	3,822

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, 2015 and December 31, 2014.

	Collateral-dependent Impaired Loans
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
As of March 31, 2015 Collateral-dependent impaired loans	$	48	Market comparable properties	Marketability discount		12	%
As of December 31, 2014 Collateral-dependent impaired loans	$	3,822	Market comparable properties	Marketability discount		6%-38% (7	%)

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, 2015
Financial assets
Cash and cash equivalents	$	54,771	$	54,771	$	—	$	—
Held to maturity securities		499		—		500		—
Loans held for sale		960		—		963		—
Loans, net of allowance for loan losses		286,982		—		—		289,348
Federal Home Loan Bank stock		2,700		—		2,700		—
Interest receivable		835		—		835		—
Financial liabilities
Deposits		229,603		119,470		—		111,622
Federal Home Loan Bank advances		60,000		—		60,638		—
Interest payable		192		—		192		—

			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, 2014
Financial assets
Cash and cash equivalents	$	29,686	$	29,686	$	—	$	—
Loans held for sale		570		—		570		—
Loans, net of allowance for loan losses		296,477		—		—		299,514
Federal Home Loan Bank stock		2,500		—		2,500		—
Interest receivable		777		—		777		—
Financial liabilities
Deposits	$	223,529	$	114,418	$	—	$	110,560
Federal Home Loan Bank advances		50,000		—		50,567		—
Interest payable		157		—		157		—

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, 2015

Loans and Allowance for Loan Losses

Note 4: Loans and Allowance for Loan Losses

Categories of loans include:

	March 31,		December 31,
	2015		2014
Real Estate
One-to four-family	$	42,337	$	44,316
Home equity		5,999		6,645
Commercial mortgage loans
Commercial real estate		155,700		153,705
Multifamily		59,374		61,204
Land		10,149		10,060
Construction		20,847		21,673
Commercial Non-mortgage		12,073		14,717
Consumer		1,272		1,142
Total loans		307,751		313,462
Less
Net deferred loan fees, premiums and discounts		529		555
Undisbursed portion of loans		12,004		8,454
Allowance for loan losses		8,236		7,976
Net loans	$	286,982	$	296,477

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, 2015, December 31, 2014 and March 31, 2014:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of March 31, 2015
Allowance for loan losses:
Balance, beginning of period	$	881		$	100		$	3,573	$	1,391		$	1,205	$	539	$	269		$	18		$	7,976
Provision charged to expense		22			(9	)		131		(90	)		156		78		(40	)		2			250
Losses charged off		(45	)		—			—		—			—		—		—			(1	)		(46	)
Recoveries		16			—			39		—			—		—		—			—			55
Balance, end of period	$	874		$	91		$	3,743	$	1,301		$	1,362	$	617	$	229		$	19		$	8,236
Ending Balance: individually evaluated for impairment	$	—		$	—		$	200	$	100		$	850	$	—	$	—		$	—		$	1,150
Ending balance: collectively evaluated for impairment	$	874		$	91		$	3,543	$	1,201		$	512	$	617	$	229		$	19		$	7,086
Loans:
Ending Balance	$	42,337		$	5,999		$	155,700	$	59,374		$	10,149	$	20,847	$	12,073		$	1,272		$	307,751
Ending Balance: individually evaluated for impairment	$	1,775		$	60		$	13,840	$	8,125		$	2,918	$	—	$	325		$	—			27,043
Ending Balance: collectively evaluated for impairment	$	40,562		$	5,939		$	141,860	$	51,249		$	7,231	$	20,847	$	11,748		$	1,272		$	280,708

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, 2014
Allowance for loan losses:
Balance, beginning of year	$	1,354		$	251		$	2,861	$	1,514		$	1,145		$	285		$	157	$	30		$	7,597
Provision charged to expense		(475	)		(151	)		702		(123	)		(33	)		1,004			112		(16	)		1,020
Losses charged off		(55	)		—			—		—			—			(750	)		—		(1	)		(806	)
Recoveries		57			—			10		—			93			—			—		5			165
Balance, end of period	$	881		$	100		$	3,573	$	1,391		$	1,205		$	539		$	269	$	18		$	7,976
Ending Balance: individually evaluated for impairment	$	—		$	—		$	200	$	100		$	850		$	—		$	—	$	—		$	1,150
Ending balance: collectively evaluated for impairment	$	881		$	100		$	3,373	$	1,291		$	355		$	539		$	269	$	18		$	6,826
Loans:
Ending Balance	$	44,316		$	6,645		$	153,705	$	61,204		$	10,060		$	21,673		$	14,717	$	1,142		$	313,462
Ending Balance: individually evaluated for impairment	$	1,645		$	63		$	8,956	$	8,192		$	3,224		$	5,349		$	351	$	—		$	27,780
Ending Balance: collectively evaluated for impairment	$	42,671		$	6,582		$	144,749	$	53,012		$	6,836		$	16,324		$	14,366	$	1,142		$	285,682

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Year 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

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, 2015 and December 31, 2014:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2015		2014		2015		2014		2015		2014		2015		2014
Pass	$	38,290	$	40,253	$	5,999	$	6,645	$	131,710	$	131,833	$	45,641	$	47,308
Pass (Closely Monitored)		2,303		2,446		—		—		9,544		10,446		9,131		9,244
Special Mention		410		413		—		—		1,506		2,383		—		—
Substandard		1,334		1,204		—		—		12,940		9,043		4,602		4,652
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	42,337	$	44,316	$	5,999	$	6,645	$	155,700	$	153,705	$	59,374	$	61,204

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Pass	$	5,433	$	5,160	$	20,634	$	18,213	$	11,399	$	14,023	$	1,272	$	1,142	$	260,378	$	264,577
Pass (Closely Monitored)		1,880		2,156		213		—		349		343		—		—		23,420		24,635
Special Mention		—		—		—		—		—		19		—		—		1,916		2,815
Substandard		2,836		2,744		—		3,460		325		332		—		—		22,037		21,435
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	10,149	$	10,060	$	20,847	$	21,673	$	12,073	$	14,717	$	1,272	$	1,142	$	307,751	$	313,462

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, 2015 and December 31, 2014:

	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	$	184	$	237	$	66	$	487	$	41,850	$	42,337	$	—	$	66
Home Equity		—		—		—		—		5,999		5,999		—		—
Commercial Real Estate		5,003		29		879		5,911		149,789		155,700		—		5,241
Multifamily		—		—		—		—		59,374		59,374		—		—
Land		—		—		2,408		2,408		7,741		10,149		—		2,408
Construction		—		—		—		—		20,847		20,847		—		—
Commercial Non-Mortgage		—		—		—		—		12,073		12,073		—		—
Consumer		—		—		—		—		1,272		1,272		—		—
Total	$	5,187	$	266	$	3,353	$	8,806	$	298,945	$	307,751	$	—	$	7,715

As of December 31, 2014:	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	$	334	$	152	$	107	$	593	$	43,723	$	44,316	$	—	$	107
Home Equity		—		—		—		—		6,645		6,645		—		—
Commercial Real Estate		818		634		649		2,101		151,604		153,705		—		1,339
Multifamily		—		—		—		—		61,204		61,204		—		—
Land		—		—		2,700		2,700		7,360		10,060		—		2,700
Construction		3,960		—		—		3,960		17,713		21,673		—		3,960
Commercial Non-Mortgage		—		—		19		19		14,698		14,717		—		19
Consumer		—		—		—		—		1,142		1,142		—		—
Total	$	5,112	$	786	$	3,475	$	9,373	$	304,089	$	313,462	$	—	$	8,125

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, 2015:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,598	$	1,773	$	—	$	1,525		20
Home Equity		60		60		—		62		—
Commercial Real Estate		11,250		14,118		—		11,314		69
Multifamily		6,782		7,597		—		6,814		81
Land		510		791		—		517		7
Construction		—		—		—		2,674		—
Commercial Non-Mortgage		—		—		—		10		—
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		177		177		—		178		3
Home Equity		—		—		—		—		—
Commercial Real Estate		2,590		2,590		200		2,758		48
Multifamily		1,343		1,343		100		1,344		20
Land		2,408		3,937		850		2,554		1
Construction		—		—		—		—		—
Commercial Non-Mortgage		325		325		—		329		6
Consumer		—		—		—		—		—
Total
1-4 Family	$	1,775	$	1,950	$	—	$	1,703	$	23
Home Equity		60		60		—		62		—
Commercial Real Estate		13,840		16,708		200		14,072		117
Multifamily		8,125		8,940		100		8,158		101
Land		2,918		4,728		850		3,071		8
Construction		—		—		—		2,674		—
Commercial Non-Mortgage		325		325		—		339		6
Consumer		—		—		—		—		—
Total	$	27,043	$	32,711	$	1,150	$	30,079	$	255

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

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,467	$	1,643	$	—	$	1,472	$	77
Home Equity		63		63		—		65		2
Commercial Real Estate		6,029		8,309		—		6,680		323
Multifamily		6,847		7,661		—		6,941		392
Land		524		805		—		504		4
Construction		5,349		4,712		—		3,664		57
Commercial Non-Mortgage		19		19		—		137		5
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	178	$	178	$	—	$	180	$	8
Home Equity		—		—		—		—		—
Commercial Real Estate		2,927		2,927		200		3,000		200
Multifamily		1,345		1,345		100		1,355		83
Land		2,700		4,060		850		3,044		1
Construction		—		—		—		2,674		107
Commercial Non-Mortgage		332		332		—		343		18
Consumer		—		—		—		—		—
Totals
1-4 Family	$	1,645	$	1,821	$	—	$	1,652	$	85
Home Equity		63		63		—		65		2
Commercial Real Estate		8,956		11,236		200		9,680		523
Multifamily		8,192		9,006		100		8,296		475
Land		3,224		4,865		850		3,548		5
Construction		5,349		4,712		—		6,338		164
Commercial Non-Mortgage		351		351		—		480		23
Consumer		—		—		—		—		—
Total	$	27,780	$	32,054	$	1,150	$	30,059	$	1,277

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

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 and 2015.

We had no TDRs that had payment defaults during the three months ended March 2015 and 2014. 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, 2015	Dec. 31, 2014	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 307,751	$ 313,462	$ 304,626
Less net deferred loan fees, premiums and discounts	529	555
Less undisbursed portion of loans	12,004	8,454
Less allowance for loan losses	8,236	7,976
Net loans	286,982	296,477
Real Estate, One-to four-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	42,337	44,316	51,159
Real Estate, Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,999	6,645	6,997
Commercial mortgage loans, Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	155,700	153,705	145,645
Commercial mortgage loans, Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	59,374	61,204	60,129
Commercial mortgage loans, Land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	10,149	10,060	10,227
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	20,847	21,673	22,737
Commercial Non-mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	12,073	14,717	6,656
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,272	$ 1,142	$ 1,076

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015		121,449	$	17.45		8	$	789
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Options outstanding at March 31, 2015		121,449	$	17.45		8	$	789
Exercisable at March 31, 2015		46,436	$	17.30		8	$	309

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, 2015		43,974	$	17.44
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at March 31, 2015		43,974	$	17.44

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Securities (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015
Treasury bond	$	499	$	1	$	—	$	500

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, 2015, 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, 2015
	Amortized Cost		Fair Value
Within one year	$	499	$	500
One to five years		—		—
Five to ten years		—		—
After ten years		—		—
Totals	$	499	$	500

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Earnings Per Share

3 Months Ended

Mar. 31, 2015

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, 2015 and 2014 is as follows (dollars in thousands, except per share data):

	Three months ended March 31, 2015			Three months ended March 31, 2014
Net income	$	739		$	304
Income allocated to participating securities		(15	)		(9	)
Income attributable to common shareholders		725			295
Weighted average shares outstanding (in thousands)		2,220			2,295
Less: average unearned ESOP and unvested restricted stock		(195	)		(226	)
Average Shares		2,025			2,069
Effect of diluted share-based awards		18			14
Average common and common-equivalent shares for diluted EPS (in thousands)		2,043			2,083
Basic EPS	$	.36		$	.14
Diluted EPS	$	.36		$	.14

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Share-Based Compensation

3 Months Ended

Mar. 31, 2015

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, 2015 and 2014 was $78 and $84 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, 2015		121,449	$	17.45		8	$	789
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Options outstanding at March 31, 2015		121,449	$	17.45		8	$	789
Exercisable at March 31, 2015		46,436	$	17.30		8	$	309

As of March 31, 2015, the Company had $148 of unrecognized compensation expense related to stock options. Stock option expense for the three months ended March 31, 2015 and 2014 was $15 and $20 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, 2015		43,974	$	17.44
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at March 31, 2015		43,974	$	17.44

As of March 31, 2015, the Company had $613 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, 2015 and 2014 was $63 and $64 respectively.

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Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2015

Summary of Loans by Categories of Loans Class

Categories of loans include:

	March 31,		December 31,
	2015		2014
Real Estate
One-to four-family	$	42,337	$	44,316
Home equity		5,999		6,645
Commercial mortgage loans
Commercial real estate		155,700		153,705
Multifamily		59,374		61,204
Land		10,149		10,060
Construction		20,847		21,673
Commercial Non-mortgage		12,073		14,717
Consumer		1,272		1,142
Total loans		307,751		313,462
Less
Net deferred loan fees, premiums and discounts		529		555
Undisbursed portion of loans		12,004		8,454
Allowance for loan losses		8,236		7,976
Net loans	$	286,982	$	296,477

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, 2015, December 31, 2014 and March 31, 2014:

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Year to date analysis as of March 31, 2015
Allowance for loan losses:
Balance, beginning of period	$	881		$	100		$	3,573	$	1,391		$	1,205	$	539	$	269		$	18		$	7,976
Provision charged to expense		22			(9	)		131		(90	)		156		78		(40	)		2			250
Losses charged off		(45	)		—			—		—			—		—		—			(1	)		(46	)
Recoveries		16			—			39		—			—		—		—			—			55
Balance, end of period	$	874		$	91		$	3,743	$	1,301		$	1,362	$	617	$	229		$	19		$	8,236
Ending Balance: individually evaluated for impairment	$	—		$	—		$	200	$	100		$	850	$	—	$	—		$	—		$	1,150
Ending balance: collectively evaluated for impairment	$	874		$	91		$	3,543	$	1,201		$	512	$	617	$	229		$	19		$	7,086
Loans:
Ending Balance	$	42,337		$	5,999		$	155,700	$	59,374		$	10,149	$	20,847	$	12,073		$	1,272		$	307,751
Ending Balance: individually evaluated for impairment	$	1,775		$	60		$	13,840	$	8,125		$	2,918	$	—	$	325		$	—			27,043
Ending Balance: collectively evaluated for impairment	$	40,562		$	5,939		$	141,860	$	51,249		$	7,231	$	20,847	$	11,748		$	1,272		$	280,708

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, 2014
Allowance for loan losses:
Balance, beginning of year	$	1,354		$	251		$	2,861	$	1,514		$	1,145		$	285		$	157	$	30		$	7,597
Provision charged to expense		(475	)		(151	)		702		(123	)		(33	)		1,004			112		(16	)		1,020
Losses charged off		(55	)		—			—		—			—			(750	)		—		(1	)		(806	)
Recoveries		57			—			10		—			93			—			—		5			165
Balance, end of period	$	881		$	100		$	3,573	$	1,391		$	1,205		$	539		$	269	$	18		$	7,976
Ending Balance: individually evaluated for impairment	$	—		$	—		$	200	$	100		$	850		$	—		$	—	$	—		$	1,150
Ending balance: collectively evaluated for impairment	$	881		$	100		$	3,373	$	1,291		$	355		$	539		$	269	$	18		$	6,826
Loans:
Ending Balance	$	44,316		$	6,645		$	153,705	$	61,204		$	10,060		$	21,673		$	14,717	$	1,142		$	313,462
Ending Balance: individually evaluated for impairment	$	1,645		$	63		$	8,956	$	8,192		$	3,224		$	5,349		$	351	$	—		$	27,780
Ending Balance: collectively evaluated for impairment	$	42,671		$	6,582		$	144,749	$	53,012		$	6,836		$	16,324		$	14,366	$	1,142		$	285,682

Loan Class	1-4 Family			Home Equity			Commercial Real Estate		Multifamily			Land		Construction		Commercial Non- Mortgage			Consumer			Total
Year 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

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, 2015 and December 31, 2014:

	1-4 Family				Home Equity				Commercial Real Estate				Multifamily
	2015		2014		2015		2014		2015		2014		2015		2014
Pass	$	38,290	$	40,253	$	5,999	$	6,645	$	131,710	$	131,833	$	45,641	$	47,308
Pass (Closely Monitored)		2,303		2,446		—		—		9,544		10,446		9,131		9,244
Special Mention		410		413		—		—		1,506		2,383		—		—
Substandard		1,334		1,204		—		—		12,940		9,043		4,602		4,652
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
	$	42,337	$	44,316	$	5,999	$	6,645	$	155,700	$	153,705	$	59,374	$	61,204

	Land				Construction				Commercial Non-Mortgage				Consumer				Total
	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Pass	$	5,433	$	5,160	$	20,634	$	18,213	$	11,399	$	14,023	$	1,272	$	1,142	$	260,378	$	264,577
Pass (Closely Monitored)		1,880		2,156		213		—		349		343		—		—		23,420		24,635
Special Mention		—		—		—		—		—		19		—		—		1,916		2,815
Substandard		2,836		2,744		—		3,460		325		332		—		—		22,037		21,435
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	10,149	$	10,060	$	20,847	$	21,673	$	12,073	$	14,717	$	1,272	$	1,142	$	307,751	$	313,462

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, 2015 and December 31, 2014:

	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	$	184	$	237	$	66	$	487	$	41,850	$	42,337	$	—	$	66
Home Equity		—		—		—		—		5,999		5,999		—		—
Commercial Real Estate		5,003		29		879		5,911		149,789		155,700		—		5,241
Multifamily		—		—		—		—		59,374		59,374		—		—
Land		—		—		2,408		2,408		7,741		10,149		—		2,408
Construction		—		—		—		—		20,847		20,847		—		—
Commercial Non-Mortgage		—		—		—		—		12,073		12,073		—		—
Consumer		—		—		—		—		1,272		1,272		—		—
Total	$	5,187	$	266	$	3,353	$	8,806	$	298,945	$	307,751	$	—	$	7,715

As of December 31, 2014:	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	$	334	$	152	$	107	$	593	$	43,723	$	44,316	$	—	$	107
Home Equity		—		—		—		—		6,645		6,645		—		—
Commercial Real Estate		818		634		649		2,101		151,604		153,705		—		1,339
Multifamily		—		—		—		—		61,204		61,204		—		—
Land		—		—		2,700		2,700		7,360		10,060		—		2,700
Construction		3,960		—		—		3,960		17,713		21,673		—		3,960
Commercial Non-Mortgage		—		—		19		19		14,698		14,717		—		19
Consumer		—		—		—		—		1,142		1,142		—		—
Total	$	5,112	$	786	$	3,475	$	9,373	$	304,089	$	313,462	$	—	$	8,125

Summary of Impaired Loans by Class

The following table presents impaired loans at March 31, 2015:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		QTD Average Balance		QTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,598	$	1,773	$	—	$	1,525		20
Home Equity		60		60		—		62		—
Commercial Real Estate		11,250		14,118		—		11,314		69
Multifamily		6,782		7,597		—		6,814		81
Land		510		791		—		517		7
Construction		—		—		—		2,674		—
Commercial Non-Mortgage		—		—		—		10		—
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family		177		177		—		178		3
Home Equity		—		—		—		—		—
Commercial Real Estate		2,590		2,590		200		2,758		48
Multifamily		1,343		1,343		100		1,344		20
Land		2,408		3,937		850		2,554		1
Construction		—		—		—		—		—
Commercial Non-Mortgage		325		325		—		329		6
Consumer		—		—		—		—		—
Total
1-4 Family	$	1,775	$	1,950	$	—	$	1,703	$	23
Home Equity		60		60		—		62		—
Commercial Real Estate		13,840		16,708		200		14,072		117
Multifamily		8,125		8,940		100		8,158		101
Land		2,918		4,728		850		3,071		8
Construction		—		—		—		2,674		—
Commercial Non-Mortgage		325		325		—		339		6
Consumer		—		—		—		—		—
Total	$	27,043	$	32,711	$	1,150	$	30,079	$	255

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

	Recorded Balance		Unpaid Principal Balance		Specific Allowance		YTD Average Balance		YTD Interest Income
Loans without a specific valuation allowance
1-4 Family	$	1,467	$	1,643	$	—	$	1,472	$	77
Home Equity		63		63		—		65		2
Commercial Real Estate		6,029		8,309		—		6,680		323
Multifamily		6,847		7,661		—		6,941		392
Land		524		805		—		504		4
Construction		5,349		4,712		—		3,664		57
Commercial Non-Mortgage		19		19		—		137		5
Consumer		—		—		—		—		—
Loans with a specific valuation allowance
1-4 Family	$	178	$	178	$	—	$	180	$	8
Home Equity		—		—		—		—		—
Commercial Real Estate		2,927		2,927		200		3,000		200
Multifamily		1,345		1,345		100		1,355		83
Land		2,700		4,060		850		3,044		1
Construction		—		—		—		2,674		107
Commercial Non-Mortgage		332		332		—		343		18
Consumer		—		—		—		—		—
Totals
1-4 Family	$	1,645	$	1,821	$	—	$	1,652	$	85
Home Equity		63		63		—		65		2
Commercial Real Estate		8,956		11,236		200		9,680		523
Multifamily		8,192		9,006		100		8,296		475
Land		3,224		4,865		850		3,548		5
Construction		5,349		4,712		—		6,338		164
Commercial Non-Mortgage		351		351		—		480		23
Consumer		—		—		—		—		—
Total	$	27,780	$	32,054	$	1,150	$	30,059	$	1,277

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

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Stock Option Activity (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Option
Options outstanding at January 1, 2015	121,449
Granted	0
Exercised	0
Forfeited	0
Expired	0
Options outstanding at March 31, 2015	121,449	121,449
Exercisable at March 31, 2015	46,436
Weighted average exercise price
Options outstanding at January 1, 2015	$ 17.45
Granted	$ 0
Exercised	$ 0
Forfeited	$ 0
Expired	$ 0
Options outstanding at March 31, 2015	$ 17.45	$ 17.45
Exercisable at March 31, 2015	$ 17.30
Remaining contractual life (year)
Granted	0 years
Options outstanding	8 years	8 years
Exercisable at March 31, 2015	8 years
Aggregate Intrinsic Value
Options outstanding	$ 789	$ 789
Exercisable at March 31, 2015	$ 309

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Summary of Amortization Cost and Fair Value of Held to Maturity Securities by contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities, Contractual Maturity, Within one year, Amortized Cost	$ 499
Held to Maturity Securities, Contractual Maturity, One to five years, Amortized Cost	0
Held to Maturity Securities, Contractual Maturity, Five to ten years, Amortized Cost	0
Held to Maturity Securities, Contractual Maturity, After ten years, Amortized Cost	0
Held to Maturity Securities, Amortized Cost	499
Held to Maturity Securities, Contractual Maturity, Within one year, Fair Value	500
Held to Maturity Securities, Contractual Maturity, One to five years, Fair Value	0
Held to Maturity Securities, Contractual Maturity, Five to ten years, Fair Value	0
Held to Maturity Securities, Contractual Maturity, After ten years, Fair Value	0
Held to Maturity Securities, Fair Value, Total	$ 500

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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, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 307,751	$ 313,462	$ 304,626
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	260,378	264,577
Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	23,420	24,635
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,916	2,815
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	22,037	21,435
Commercial mortgage loans, Land
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	10,149	10,060	10,227
Commercial mortgage loans, Land | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,433	5,160
Commercial mortgage loans, Land | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,880	2,156
Commercial mortgage loans, Land | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	2,836	2,744
Construction
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	20,847	21,673	22,737
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	20,634	18,213
Construction | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	213
Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable		3,460
Commercial Non-mortgage
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	12,073	14,717	6,656
Commercial Non-mortgage | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	11,399	14,023
Commercial Non-mortgage | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	349	343
Commercial Non-mortgage | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable		19
Commercial Non-mortgage | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	325	332
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,272	1,142	1,076
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,272	1,142
Real Estate, One-to four-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	42,337	44,316	51,159
Real Estate, One-to four-family | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	38,290	40,253
Real Estate, One-to four-family | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	2,303	2,446
Real Estate, One-to four-family | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	410	413
Real Estate, One-to four-family | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,334	1,204
Real Estate, Home equity
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,999	6,645	6,997
Real Estate, Home equity | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	5,999	6,645
Commercial mortgage loans, Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	155,700	153,705	145,645
Commercial mortgage loans, Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	131,710	131,833
Commercial mortgage loans, Commercial real estate | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	9,544	10,446
Commercial mortgage loans, Commercial real estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,506	2,383
Commercial mortgage loans, Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	12,940	9,043
Commercial mortgage loans, Multifamily
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	59,374	61,204	60,129
Commercial mortgage loans, Multifamily | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	45,641	47,308
Commercial mortgage loans, Multifamily | Pass (Closely Monitored)
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	9,131	9,244
Commercial mortgage loans, Multifamily | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 4,602	$ 4,652

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating Activities
Net income	$ 739	$ 304
Items not requiring (providing) cash
Depreciation	61	65
Provision for Loan Losses	250	300
Loss (gain) on other real estate owned	37	21
Loans originated for sale	(5,928)	(3,234)
Proceeds from loans sold	5,714	3,960
Net gain on sale of loans	(176)	(120)
Share based compensation	78	84
Earned ESOP shares	65
Deferred income taxes	(13)
Changes in interest receivable and other assets	(219)	(141)
Interest payable and other liabilities	984	14
Net cash provided by operating activities	1,592	1,252
Investing Activities
Purchase of held to maturity	(499)
Proceeds from calls, maturities and pay-downs of held to maturity securities		66
Net change in loans	9,420	(18,139)
Proceeds from sale of real estate owned	87	193
Purchase of FHLB stock	(200)
Net cash provided (used) by investing activities	8,808	(17,880)
Financing Activities
Net change in demand deposits, money market, checking and savings accounts	901	10,553
Net change in certificates of deposit	5,174	15,058
Repayment of Federal Home Loan Bank advances		(10,000)
Proceeds from Federal Home Loan Bank advances	10,000
Purchase of common stock	(1,390)	(86)
Net cash provided (used) by financing activities	14,685	15,525
Change in Cash and Cash Equivalents	25,085	(1,103)
Cash and Cash Equivalents, Beginning of Period	29,686	26,181
Cash and Cash Equivalents, End of Period	54,771	25,078
Supplemental Disclosures of Cash Flows Information
Interest paid	815	711
Income taxes paid	175	200
Loans transferred to real estate owned	$ 42	$ 255

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Securities

3 Months Ended

Mar. 31, 2015

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, 2015
Treasury bond	$	499	$	1	$	—	$	500

The amortized cost and fair value of securities at March 31, 2015, 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, 2015
	Amortized Cost		Fair Value
Within one year	$	499	$	500
One to five years		—		—
Five to ten years		—		—
After ten years		—		—
Totals	$	499	$	500

There were no sales of securities during the three ended March 31, 2015 and 2014.

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Summary of Our Past Due and Non-Accrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 5,187	$ 5,112
60-89 Days Past Due	266	786
Greater than 90 Days	3,353	3,475
Total Past Due	8,806	9,373
Current	298,945	304,089
Total Loans Receivable	307,751	313,462	304,626
Total Loans>90 Days & Accruing	0	0
Total Nonaccrual	7,715	8,125
Real Estate, One-to four-family
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	184	334
60-89 Days Past Due	237	152
Greater than 90 Days	66	107
Total Past Due	487	593
Current	41,850	43,723
Total Loans Receivable	42,337	44,316	51,159
Total Loans>90 Days & Accruing	0	0
Total Nonaccrual	66	107
Real Estate, Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,999	6,645
Total Loans Receivable	5,999	6,645	6,997
Total Loans>90 Days & Accruing	0	0
Commercial mortgage loans, Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	5,003	818
60-89 Days Past Due	29	634
Greater than 90 Days	879	649
Total Past Due	5,911	2,101
Current	149,789	151,604
Total Loans Receivable	155,700	153,705	145,645
Total Loans>90 Days & Accruing	0	0
Total Nonaccrual	5,241	1,339
Commercial mortgage loans, Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	59,374	61,204
Total Loans Receivable	59,374	61,204	60,129
Total Loans>90 Days & Accruing	0	0
Commercial mortgage loans, Land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Greater than 90 Days	2,408	2,700
Total Past Due	2,408	2,700
Current	7,741	7,360
Total Loans Receivable	10,149	10,060	10,227
Total Loans>90 Days & Accruing	0	0
Total Nonaccrual	2,408	2,700
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		3,960
Total Past Due		3,960
Current	20,847	17,713
Total Loans Receivable	20,847	21,673	22,737
Total Loans>90 Days & Accruing	0	0
Total Nonaccrual		3,960
Commercial Non-mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Greater than 90 Days		19
Total Past Due		19
Current	12,073	14,698
Total Loans Receivable	12,073	14,717	6,656
Total Loans>90 Days & Accruing	0	0
Total Nonaccrual		19
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,272	1,142
Total Loans Receivable	1,272	1,142	1,076
Total Loans>90 Days & Accruing	$ 0	$ 0

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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, 2015
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities, Amortized Cost	$ 499
Held to Maturity Securities, Fair Value	500
US Treasury Bond Securities
Schedule of Held-to-maturity Securities [Line Items]
Held to Maturity Securities, Amortized Cost	499
Held to Maturity Securities, Gross Unrealized Gains	1
Held to Maturity Securities, Gross Unrealized Losses	0
Held to Maturity Securities, Fair Value	$ 500