10-Q

UNITED STATES

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, 2019

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. 000-55005

Sunnyside Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	46-3001280
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
56 Main Street, Irvington, New York	10533
(Address of Principal Executive Offices)	Zip Code

(914) 591-8000

(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, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]	Smaller reporting company [X]
(Do not check if smaller reporting company)	Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

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

YES [  ] NO [X]

As of May 9, 2019, 793,500 shares of the Registrant’s common stock, par value $0.01 per share, were issued and outstanding.

Securities registered pursuant to Section 12(b) of the Act:

Title of class	Trading symbol	Name of exchange on which registered
None

Sunnyside Bancorp, Inc.

Form 10-Q

Index

		Page
	Part I. Financial Information
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Financial Condition as of March 31, 2019 (unaudited) and December 31, 2018	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018 (unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2019 and 2018 (unaudited)	3
	Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2019 and 2018 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018 (unaudited)	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6 – 23
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24 – 26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27
Item 4.	Controls and Procedures	27
	Part II. Other Information
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
	Signature Page	29

Part I. – Financial Information

Item 1. Financial Statements

SUNNYSIDE BANCORP, INC AND SUBSIDIARY

Condensed CONSOLIDATED Statements of Financial Condition

	March 31, 2019			December 31, 2018
Assets
Cash and cash equivalents	$	2,210,353		$	1,217,621
Securities held to maturity, net; approximate fair value of $635,000 (March 31, 2019) and $623,000 (December 31, 2018)		627,403			628,526
Securities available for sale		33,810,757			29,426,745
Loans receivable, net		42,022,267			43,101,525
Premises and equipment, net		1,082,281			1,108,873
Federal Home Loan Bank of New York and other stock, at cost		162,000			330,800
Accrued interest receivable		561,571			516,757
Cash surrender value of life insurance		2,334,988			2,319,802
Deferred income taxes		749,139			822,538
Other assets		180,462			227,540
Total assets	$	83,741,221		$	79,700,727
Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	68,621,119		$	63,658,430
Advances from Federal Home Loan Bank of New York		2,650,000			3,750,000
Advances from borrowers for taxes and insurance		479,640			536,712
Other liabilities		883,431			890,473
Total liabilities		72,634,190			68,835,615
Commitments and contingencies		-			-
Stockholders’ equity:
Serial preferred stock;par value $.01, 1,000,000 shares authorized, no shares issued		-			-
Common stock; par value $.01, 30,000,000 shares authorized and 793,500 shares issued		7,935			7,935
Additional paid-in capital		7,070,954			7,064,299
Unallocated common stock held by the Employee Stock Ownership Plan		(416,632	)		(422,184	)
Retained earnings		6,158,352			6,204,754
Accumulated other comprehensive (loss)		(1,713,578	)		(1,989,692	)
Total stockholders’ equity		11,107,031			10,865,112
Total liabilities and stockholders’ equity	$	83,741,221		$	79,700,727

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

1

Sunnyside BANCORP, INC AND SUBSIDIARY

Condensed CONSOLIDATED Statements of Operations

	Three Months Ended
	March 31,
	2019			2018
Interest and dividend income:
Loans	$	469,017		$	531,523
Investment securities		16,903			14,478
Mortgage-backed securities		161,289			138,785
Federal funds sold and other earning assets		10,795			4,026
Total interest and dividend income		658,004			688,812
Interest expense:
Deposits		99,337			63,504
Borrowings		11,827			-
Total interest expense		111,164			63,504
Net interest income		546,840			625,308
Provision for loan losses		-			-
Net interest income after provision for loan losses		546,840			625,308
Non-interest income:
Fees and service charges		26,405			27,239
Income on bank owned life insurance		15,186			15,188
Total non-interest income		41,591			42,427
Non-Interest Expense:
Compensation and benefits		325,235			334,792
Occupancy and equipment, net		62,297			69,374
Data processing service fees		73,875			73,705
Professional fees		128,030			85,934
Federal deposit insurance premiums		4,801			6,151
Advertising and promotion		11,929			8,703
Other		42,788			43,519
Total non-interest expense		648,955			622,178
Income before income taxes		(60,524	)		45,557
Income tax expense (benefit)		(14,122	)		10,034
Net income (loss)	$	(46,402	)	$	35,523
Basic and diluted income (loss) per share	$	(0.06	)	$	0.05
Weighted average shares outstanding, basic and diluted		751,332			749,249

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

2

Sunnyside BANCORP, INC AND SUBSIDIARY

CONDENSED CONSOLIDATED Statements of Comprehensive IncomE (LOSS)

	Three Months Ended
	March 31,
	2019			2018
Net income (loss)	$	(46,402	)	$	35,523
Other comprehensive income, before tax:
Defined benefit pension plans:
Amortization of loss included in net periodic plan cost		16,851			12,102
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		332,662			(398,582	)
Other comprehensive income (loss), before tax		349,513			(386,480	)
Income tax expense (benefit) related to items of other comprehensive income (loss)		73,399			(81,162	)
Other comprehensive income (loss), net of tax		276,114			(305,318	)
Comprehensive income (loss)	$	229,712		$	(269,795	)

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

3

SUNNYSIDE BANCORP, INC AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

	Common Stock		Additional Paid-in Capital		Unallocated Common Stock Held by ESOP			Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Total Equity
Balance at December 31, 2017	$	7,935	$	7,030,530	$	(444,394	)	$	6,152,648	$	(1,471,206	)	$	11,275,513
Net income for the three months ended March 31, 2018		-		-		-			35,523		-			35,523
ESOP shares allocated or committed to be released		-		3,638		5,552			-		-			9,190
Restricted stock awards earned		-		5,512		-			-		-			5,512
Other comprehensive income (loss), net of tax		-		-		-			-		(305,318	)		(305,318	)
Balance at March 31, 2018	$	7,935	$	7,039,680	$	(438,842	)	$	6,188,171	$	(1,776,524	)	$	11,020,420

	Common Stock		Additional Paid-in Capital		Unallocated Common Stock Held by ESOP			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Equity
Balance at December 31, 2018		7,935		7,064,299		(422,184	)		6,204,754			(1,989,692	)	$	10,865,112
Net (loss) for the three months ended March 31, 2019		-		-		-			(46,402	)		-			(46,402	)
ESOP shares allocated or committed to be released		-		1,143		5,552			-			-			6,695
Restricted stock awards earned		-		5,512		-			-			-			5,512
Other comprehensive income, net of tax		-		-		-			-			276,114			276,114
Balance at March 31, 2019	$	7,935	$	7,070,954	$	(416,632	)	$	6,158,352		$	(1,713,578	)	$	11,107,031

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

4

Sunnyside BANCORP, INC AND SUBSIDIARY

Condensed cONSOLIDATED StatementS of Cash Flows

	Three Months Ended
	March 31,
	2019			2018
Cash flows from operating activities:
Net income (loss)	$	(46,402	)	$	35,523
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		29,682			34,219
Amortization of premiums and accretion of discounts, net		29,557			44,450
Amortization of deferred loan fees and costs, net		23,956			23,975
Increase in accrued interest receivable		(44,814	)		(10,178	)
Increase in cash surrender value of life insurance		(15,186	)		(15,188	)
Net decrease in other assets		47,078			41,447
Net increase (decrease) in other liabilities		9,809			(54,056	)
Amortization of stock compensation plans		12,207			14,702
Net cash provided by operating activities		45,887			114,894
Cash flows from investing activities:
Purchases of securities available for sale		(5,140,941	)		(2,542,164	)
Repayments and maturities of securities held to maturity		826			1,186
Repayments and maturities of securities available for sale		1,060,331			1,066,892
Loan originations, net of principal repayments		1,055,302			2,591,188
Purchases of premises and equipment		(3,090	)		(3,253	)
Redemption of Federal Home Loan Bank and other stock		168,800			-
Net cash (used in) provided by investing activities		(2,858,772	)		1,113,849
Cash flows from financing activities:
Net increase (decrease) in deposits		4,962,689			(453,346	)
Net decrease in advances from borrowers for taxes and insurance		(57,072	)		(39,341	)
Net decrease in short-term borrowings		(1,100,000	)		-
Net cash provided by (used in) financing activities		3,805,617			(492,687	)
Net increase in cash and cash equivalents		992,732			736,056
Cash and cash equivalents at beginning of period		1,217,621			1,229,036
Cash and cash equivalents at end of period	$	2,210,353		$	1,965,092
Supplemental Information:
Cash paid for:
Interest	$	109,822		$	63,431
Income taxes	$	3,369		$	3,958

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

5

Sunnyside BANCORP, INC AND SUBSIDIARY

Form 10-Q

Notes to Condensed Consolidated Financial Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a description of the more significant policies used in the presentation of the accompanying consolidated financial statements of Sunnyside Bancorp, Inc. and Subsidiary, (collectively, the “Company”).

Principles of Consolidation

The consolidated financial statements are comprised of the accounts of Sunnyside Bancorp. Inc., and its wholly-owned subsidiary, Sunnyside Federal Savings and Loan Association of Irvington (“Sunnyside Federal” or the “Association”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Business

Sunnyside Federal is a community-oriented savings institution whose primary business is accepting deposits from customers within its market area (Westchester County, New York) and investing those funds in mortgage loans secured by one-to-four family residences and in mortgage-backed and other securities. To a significantly lesser extent, funds are invested in multi-family and commercial mortgage loans, commercial loans, and consumer loans. Customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation. As a federally-chartered savings association, Sunnyside Federal’s primary regulator is the Office of the Controller of the Currency (the “OCC”).

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. However, such information presented reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of the Company’s management, necessary for a fair statement of results for the interim period.

The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019, or any other future interim period. The unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K.

Cash and Cash Equivalents

For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents.

Investment and Mortgage-Backed Securities

Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in a separate component of retained earnings. As of March 31, 2019 and December 31, 2018, the Company had no securities classified as held for trading.

The Company conducts a periodic review and evaluation of the securities portfolio to determine if a decline in the fair value of any security below its cost basis is other-than-temporary. The evaluation of other-than-temporary impairment considers the duration and severity of the impairment, the Company’s intent and ability to hold the securities and assessments of the reason for the decline in value and the likelihood of a near-term recovery. If such a decline is deemed other-than-temporary, the security is written down to a new cost basis and the resulting loss is charged to income as a component of non-interest expense.

6

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Investment and Mortgage-Backed Securities (Cont’d)

Premiums and discounts on securities are amortized by use of the level-yield method, over the life of the individual securities. Gain or loss on sales of securities is based upon the specific identification method.

Loans Receivable

Loans receivable are stated at unpaid principal balances less the allowance for loan losses and net deferred loan fees.

Recognition of interest on the accrual method is generally discontinued when interest or principal payments are ninety days or more in arrears, or when other factors indicate that the collection of such amounts is doubtful. At that time, a loan is placed on a nonaccrual status, and all previously accrued and uncollected interest is reversed against interest income in the current period. Interest on such loans, if appropriate, is recognized as income when payments are received. A loan is returned to an accrual status when factors indicating doubtful collectability no longer exist.

Allowance for Loan Losses

An allowance for loan losses is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. The Company utilizes a two tier approach: (1) identification of problem loans and establishment of specific loss allowances on such loans; and (2) establishment of general valuation allowances on the remainder of its loan portfolio. The Company maintains a loan review system which allows for a periodic review of its loan portfolio and the early identification of potential problem loans. Such system takes into consideration, among other things, delinquency status, size of loans, type of collateral, and financial condition of the borrowers. Specific loan losses are established for identified loans based on a review of such information and appraisals of the underlying collateral. General loan losses are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, and management’s judgment. Although management believes that adequate specific and general loan loss allowances are established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may be necessary.

A loan evaluated for impairment is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. An insignificant payment delay, which is defined as up to ninety days by the Company, will not cause a loan to be classified as impaired. A loan is not impaired during a period of delay in payment if the Company expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. The amount of loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Payments received on impaired loans are applied first to accrued interest receivable and then to principal.

Federal Home Loan Bank of New York stock

As a member of the Federal Home Loan Bank of New York (“FHLB”), Sunnyside Federal is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on Sunnyside Federal’s activities, primarily our outstanding borrowings, with the FHLB. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists.

Premises and Equipment

Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives:

Building and improvements	5 to 40 years
Furniture, fixtures and equipment	2 to 10 years

7

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Bank-Owned Life Insurance

Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB guidance. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits.

Income Taxes

Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated 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 on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset which is not likely to be realized.

Employee Benefits

Defined Benefit Plans:

The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition.

401(k) Plan:

The Company has a 401(k) plan covering substantially all employees. The Company matches 50% of the first 6% contributed by participants and recognizes expense as its contributions are made.

Employee Stock Ownership Plan:

The employee stock ownership plan (ESOP) is accounted for in accordance with the provisions of ASC 718-40, “Employers’ Accounting for Employee Stock Ownership Plans.” The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Association’s contributions over a period of up to 25 years. The Company’s common stock not yet allocated to participants is recorded as a reduction of stockholders’ equity at cost. Compensation expense for the ESOP is based on the market price of the Company’s stock and is recognized as shares are committed to be released to participants.

Equity Incentive Plan:

On July 17, 2014, the Board of Directors adopted the Sunnyside Bancorp, Inc. 2014 Equity Incentive Plan (the “Stock Incentive Plan”) which was approved by shareholders at the Company’s 2014 Annual Meeting of Shareholders held on September 16, 2014. Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 79,350 shares. The maximum number of shares of stock that may be issued as restricted stock awards cannot exceed 23,805.

8

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Employee Benefits (Cont’d)

Equity Incentive Plan (Cont’d):

The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024.

On June 16, 2015, the Company granted 10,500 shares of restricted stock to certain executive officers, with a grant date fair value of $10.50 per share. Twenty percent of the shares awarded vest annually. Management recognizes expense for the fair value of those awards on a straight line basis over the requisite service period. For the three months ended March 31, 2019 and March 31, 2018, the Company recognized approximately $5,500 in expense in regard to those restricted stock awards. Expected future expense relating to these non-vested restricted shares at March 31, 2019 is $28,000 over a weighted average period of 1.25 years. There were no stock options outstanding as of March 31, 2019.

Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

Concentration of Credit Risk and Interest-Rate Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State.

The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility.

Advertising Costs

It is the Company’s policy to expense advertising costs in the period in which they are incurred.

Earnings Per Share

Basic earnings per common share, or EPS, are computed by dividing net income by the weighted-average common shares outstanding during the year. The weighted-average common shares outstanding includes the weighted-average number of shares of common stock outstanding less the weighted average number of unallocated shares held by the ESOP and the unvested shares of restricted stock. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Potential common shares related to stock options are determined using the treasury stock method.

Subsequent Events

The Company has evaluated all events subsequent to the balance sheet date of March 31, 2019 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance.

9

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Recent Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” This update amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2021, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2020, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07 “Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting”. This update expands earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update on January 1, 2019, did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument. ASU No. 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). While early adoption is permitted, the Company does not expect to elect that option. The Company has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, any impact to the allowance for credit losses - currently allowance for loan and lease losses - will have an offsetting impact on retained earnings.

10

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Recent Accounting Pronouncements (Cont’d)

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of this guidance on January 1, 2019 did not have a material effect on the Company’s consolidated financial statements.

2. MUTUAL TO STOCK CONVERSION AND LIQUIDATION ACCOUNT

On July 15, 2013, the Association completed its mutual-to-stock conversion, and the Company consummated its initial stock offering. The Company sold 793,500 shares of its common stock, including 55,545 shares purchased by the Association’s ESOP, at a price of $10.00 per share, in a subscription offering, for gross offering proceeds of $7,935,000. The cost of conversion and the stock offering were deferred and deducted from the proceeds of the offering. Conversion costs incurred totaled $845,000 resulting in net proceeds of $6.5 million after also deducting the shares acquired by the ESOP.

In accordance with applicable federal conversion regulations, at the time of the completion of our mutual-to-stock conversion, the Company established a liquidation account in the Association in an amount equal to the Association’s total retained earnings as of the latest balance sheet date in the final prospectus used in the Conversion. Each eligible account holder or supplemental account holder is entitled to a proportionate share of this liquidation account in the event of a complete liquidation of the Association, and only in such event. This share will be reduced if the eligible account holder’s or supplemental account holder’s deposit balance falls below the amounts on the date of record as of any December 31 and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after conversion in the related deposit balance. The Company may not declare, pay a dividend on, or repurchase any of its capital stock, if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements.

3. SECURITIES

	March 31, 2019
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	547,482	$	5,938	$	-	$	553,420
Mortgage-backed securities		79,921		1,561		-		81,482
	$	627,403	$	7,499	$	-	$	634,902
Securities available for sale:
U.S. government and agency obligations	$	2,999,849	$	-	$	13,472	$	2,986,377
Mortgage-backed securities		31,217,727		71,006		464,353		30,824,380
	$	34,217,576	$	71,006	$	477,825	$	33,810,757

11

3. SECURITIES (Cont’d)

	December 31, 2018
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	547,788	$	-	$	6,675	$	541,113
Mortgage-backed securities		80,738		1,517		-		82,255
	$	628,526	$	1,517	$	6,675	$	623,368
Securities available for sale:
U.S. government and agency obligations	$	2,999,797	$	-	$	28,746		2,971,051
Mortgage-backed securities		27,166,429		5,387		716,122		26,455,694
	$	30,166,226	$	5,387	$	744,868	$	29,426,745

Mortgage-backed securities consist of securities guaranteed by Ginnie Mae, Fannie Mae, Freddie Mac, and the Small Business Administration with amortized costs of $2.3 million, $16.5 million, $10.4 million and $2.1 million, respectively, at March 31, 2019 ($249,000, $15.5 million, $9.3 million, and $2.2 million, respectively, at December 31, 2018).

There were no sales or calls of securities held to maturity or available for sale for the three months ended March 31, 2019 and 2018, respectively.

The following is a summary of the amortized cost and fair value of securities at March 31, 2019 and December 31, 2018, by remaining period to contractual maturity. Actual maturities may differ from these amounts because certain debt security issuers have the right to call or redeem their obligations prior to contractual maturity. In addition, mortgage backed securities that amortize monthly are listed in the period the security is legally set to pay off in full.

	March 31, 2019
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	200,846	$	200,860	$	999,849	$	992,681
After one to five years		-		-		3,147,163		3,119,302
After five to ten years		-		-		1,831,398		1,801,191
After ten years		426,557		434,042		28,239,166		27,897,583
	$	627,403	$	634,902	$	34,217,576	$	33,810,757

12

3. SECURITIES (Cont’d)

	December 31, 2018
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	201,208	$	200,316	$	999,797	$	988,380
After one to five years		-		-		3,268,006		3,220,881
After five to ten years		-		-		1,933,095		1,877,699
After ten years		427,318		423,052		23,965,328		23,339,785
	$	628,526	$	623,368	$	30,166,226	$	29,426,745

The following tables summarize the fair values and unrealized losses of securities with an unrealized loss at March 31, 2019 and December 31, 2018, segregated between securities that have been in an unrealized loss position for less than one year, or one year or longer, at the respective dates.

	March 31, 2019
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities available for sale:
U.S. government and agency obligations	$	-	$	-	$	2,986,377	$	13,472
Mortgage-backed securities		5,312,326		38,139		20,727,845		426,214
	$	5,312,326	$	38,139	$	23,714,222	$	439,686

	December 31, 2018
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities held to maturity:
State, county, and municipal obligations	$	340,797	$	5,783	$	200,316	$	892
Securities available for sale:
U.S. government and agency obligations		-		-		2,971,051		28,746
Mortgage-backed securities		2,322,591		13,840		21,274,973		702,282
		2,322,591		13,840		24,246,024		731,028
	$	2,663,388	$	19,623	$	24,446,340	$	731,920

13

3. SECURITIES (Cont’d)

The unrealized losses are primarily due to changes in market interest rates subsequent to purchase. At March 31, 2019, a total of 43 securities were in an unrealized loss position (45 at December 31, 2018). The Company generally purchases securities issued by Government Sponsored Enterprises (GSE). Accordingly, it is expected that the GSE securities would not be settled at a price less than the Company’s amortized cost basis. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2019 and December 31, 2018 since the decline in market value is attributable to changes in interest rates and not credit quality and the Company has the intent and ability to hold these investments until there is a full recovery of the unrealized loss, which may be at maturity.

4. LOANS RECEIVABLE, NET

	March 31, 2019			December 31, 2018
Mortgage loans:
Residential 1-4 family	$	17,586,769		$	18,239,205
Commercial and multi-family		15,772,769			15,640,233
Home equity lines of credit		17,244			27,725
		33,376,782			33,907,163
Other loans:
Student		7,531,190			8,024,588
Commercial		1,285,171			1,316,545
		8,816,361			9,341,133
Total loans		42,193,143			43,248,296
Less:
Deferred loan fees (costs and premiums), net		(236,956	)		(261,061	)
Allowance for loan losses		407,832			407,832
		170,876			146,771
	$	42,022,267		$	43,101,525

In the ordinary course of business, the Company makes loans to its directors, executive officers, and their associates (related parties) on the same terms as those prevailing at the time of origination for comparable loans with other borrowers. The unpaid principal balances of related party loans were approximately $140,000 and $142,000 at March 31, 2019 and December 31, 2018, respectively.

14

4. LOANS RECEIVABLE, NET (Cont’d)

Activity in the allowance for loan losses is summarized as follows:

	Three Months Ended
	March 31,
	2019		2018
Balance at beginning of period	$	407,832	$	507,235
Provision for loan losses		-		-
Balance at end of period	$	407,832	$	507,235

The allowance for loan losses consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. There are no specific allowances as of March 31, 2019 and December 31, 2018. The general component covers pools of loans by loan class not considered impaired, as well as smaller balance homogeneous loans, such as one-to-four family real estate, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include:

1.	Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.
2.	National, regional, and local economic and business conditions including the value of underlying collateral for collateral dependent loans.
3.	Nature and volume of the portfolio and terms of loans.
4.	Experience, ability, and depth of lending management and staff and the quality of the Company’s loan review system.
5.	Volume and severity of past due, classified and nonaccrual loans.
6.	Existence and effect of any concentrations of credit and changes in the level of such concentrations.
7.	Effect of external factors, such as competition and legal and regulatory requirements.

Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation.

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of pass, special mention, substandard, doubtful and loss.

15

4. LOANS RECEIVABLE, NET (Cont’d)

Loan classifications are defined as follows:

● Pass — These loans are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.

● Special Mention — These loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects.

● Substandard — These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

● Doubtful — These loans have all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make the full recovery of our principal balance highly questionable and improbable on the basis of currently known facts, conditions, and values. The likelihood of a loss on an asset or portion of an asset classified as doubtful is high. Its classification as Loss is not appropriate, however, because pending events are expected to materially affect the amount of loss.

● Loss — These loans are considered uncollectible and of such little value that a charge-off is warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur.

One of the primary methods the Company uses as an indicator of the credit quality of their portfolio is the regulatory classification system. The following table reflects the credit quality indicators by portfolio segment and class, at the dates indicated:

	March 31, 2019
	Mortgage Loans
			Commercial
			Real Estate						Commercial
	Residential		and		Home				and
	1-4 Family		Multi-Family		Equity		Student		Other		Total
	(In thousands)
Pass	$	17,342	$	15,773	$	17	$	7,500	$	1,285	$	41,917
Special Mention		-		-		-		31		-		31
Substandard		245		-		-		-		-		245
Total	$	17,587	$	15,773	$	17	$	7,531	$	1,285	$	42,193

16

4. LOANS RECEIVABLE, NET (Cont’d)

	December 31, 2018
	Mortgage Loans
			Commercial
			Real Estate						Commercial
	Residential		and		Home				and
	1-4 Family		Multi-Family		Equity		Student		Other		Total
	(In thousands)
Pass	$	17,941	$	15,640	$	28	$	8,000	$	1,316	$	42,925
Special Mention		49		-		-		-		-		49
Substandard		249		-		-		25		-		274
Total	$	18,239	$	15,640	$	28	$	8,025	$	1,316	$	43,248

The following table provides information about loan delinquencies at the dates indicated:

	March 31, 2019
													90 Days
													or More
	30-59		60-89		90 Days								Past Due
	Days		Days		or More		Total		Current		Total		and
	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Accruing
	(In thousands)
Residential 1-4 family	$	-	$	-	$	-	$	-	$	17,587	$	17,587	$	-
Commercial real estate and multi-family		-		-		-		-		15,773		15,773		-
Home equity lines of credit		-		-		-		-		17		17		-
Student loans		30		71		-		101		7,430		7,531		-
Other loans		-		-		-		-		1,285		1,285		-
	$	30	$	71	$	-	$	101	$	42,092	$	42,193	$	-

	December 31, 2018
													90 Days
													or More
	30-59		60-89		90 Days								Past Due
	Days		Days		or More		Total		Current		Total		and
	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Accruing
	(In thousands)
Residential 1-4 family	$	-	$	-	$	49	$	49	$	18,190	$	18,239	$	49
Commercial and multi-family		-		-		-		-		15,640		15,640		-
Home equity lines of credit		-		-		-		-		28		28		-
Student loans		5		33		-		38		7,987		8,025		-
Other loans		-		-		-		-		1,316		1,316		-
	$	5	$	33	$	49	$	87	$	43,161	$	43,248	$	49

The following is a summary of loans, by loan type, on which the accrual of income has been discontinued and loans that are contractually past due 90 days or more but have not been classified as non-accrual at the dates indicated:

17

4. LOANS RECEIVABLE, NET (Cont’d)

	March 31, 2019		December 31, 2018
	(In thousands)
Residential 1-4 family	$	245	$	249
Commercial real estate and multi-family		-		-
Home equity lines of credit		-		-
Student loans		-		-
Other loans				-
Total non-accrual loans		245		249
Accruing loans delinquent 90 days or more		-		49
Total non-performing loans	$	245	$	298

The total amount of interest income on non-accrual loans that would have been recognized if interest on all such loans had been recorded based upon original contract terms amounted to approximately $2,800 and $7,300 for the three months ended March 31, 2019 and 2018, respectively. The total amount of interest income recognized on non-accrual loans amounted to approximately $0 and $3,600 during the three months ended March 31, 2019 and 2018, respectively.

A loan is defined as impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due under the contractual terms of the loan agreement. The Company considers one-to four-family mortgage loans and consumer installment loans to be homogeneous and, therefore, does not generally evaluate them for impairment, unless they are considered troubled debt restructurings. All other loans are evaluated on an individual basis.

The following table provides information about the Company’s impaired loans at March 31, 2019 and December 31, 2018 (in thousands):

March 31, 2019	Recorded Investment		Unpaid Principal Balance		Related Specific Allowance
1-4 residential	$	245	$	245	$	-

December 31, 2018	Recorded Investment		Unpaid Principal Balance		Related Specific Allowance
1-4 residential	$	249	$	249	$	-

The following tables provide information about the Company’s impaired loans for the three months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended				Three Months Ended
	March 31, 2019				March 31, 2018
	Average Recorded Investment		Interest Income Received		Average Recorded Investment		Interest Income Received
1-4 residential	$	247	$	-	$	-	$	-

The recorded investment in a loan modified in a troubled debt restructuring totaled $244,947 ($248,956 at December 31, 2018), which was current at the reporting dates and complied with the terms of its restructure agreement. Loans that were modified in a troubled debt restructuring represent concessions made to borrowers experiencing financial difficulties. The Company works with these borrowers to modify existing loan terms usually by extending maturities or reducing interest rates. The Company records an impairment loss, if any, based on the present value of expected future cash flows discounted at the original loan’s effective interest rate or the value of the underlying collateral property. Subsequently, these loans are individually evaluated for impairment.

During the three months ended March 31, 2019 and 2018, there were no new TDR’s that occurred.

The following tables present the activity in the allowance for loan losses by loan type for the periods indicated:

	Three Months Ended
	March 31, 2019
	Mortgage Loans
			Commercial
	Residential 1-4 Family		and Multi-Family		Home Equity		Student			Other		Unallocated		Total
	(In thousands)
Beginning balance	$	145	$	128	$	1	$	122		$	12	$	-	$	408
Provision for loan losses		3		1		-		(4	)		-		-		-
Ending Balance	$	148	$	129	$	1	$	118		$	12	$	-	$	408

	Three Months Ended
	March 31, 2018
	Mortgage Loans
			Commercial
	Residential 1-4 Family		and Multi-Family			Home Equity		Student			Other		Unallocated		Total
	(In thousands)
Beginning balance	$	318	$	121		$	4	$	54		$	10	$	-	$	507
Provision for loan losses		9		(11	)		-		(5	)		-		7		-
Ending Balance	$	327	$	110		$	4	$	49		$	10	$	7	$	507

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5. ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss included in equity are as follows:

	March 31, 2019			December 31, 2018
Unrealized net loss on pension plan	$	(1,762,268	)	$	(1,779,119	)
Unrealized loss on securities available for sale		(406,819	)		(739,481	)
Accumulated other comprehensive loss before taxes		(2,169,087	)		(2,518,600	)
Tax effect		455,509			528,908
Accumulated other comprehensive loss	$	(1,713,578	)	$	(1,989,692	)

6. REGULATORY CAPITAL

The Association is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators, that if undertaken could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations. As of March 31, 2019 and December 31, 2018, the Association exceeded all capital adequacy requirements to which it was subject (see tables below).

On January 1, 2015, the final rules implementing the Basel Committee on Banking Supervision capital guidelines for banking organizations (Basel III) regulatory capital framework and related Dodd-Frank Act changes became effective for the Association. These rules supersede the federal banking agencies’ general risk-based capital rules (Basel I). Full compliance with all of the final rule’s requirements is phased in over a multi-year transition period ending on January 1, 2019. Basel III revised minimum capital requirements and adjusted prompt corrective action thresholds. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Association. The rules included a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0 percent to 6.0 percent, required a minimum ratio of total capital to risk-weighted assets of 8.0 percent, and required a minimum leverage ratio of 4.0 percent. A new capital conservation buffer, comprised of common equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This conservation buffer was phased in beginning January 1, 2016 at 0.625 percent of risk-weighted assets and increased each subsequent year by an additional 0.625 percent until it reached its final level of 2.5 percent of risk-weighted assets on January 1, 2019. The final rule also revised the definition and calculation of Tier 1 capital, total capital and risk-weighted assets.

19

6. REGULATORY CAPITAL (Cont’d)

The following table presents the Association’s actual capital positions and ratios at the dates indicated:

											To be Well					To be Well
											Capitalized Under					Capitalized With
						Minimum Capital					Prompt Corrective					Capital Conservation
	Actual					Requirements					Action Provisions					Buffer
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
						(Dollars in Thousands)
March 31, 2019
Tangible Capital	$	11,923		14.82	%	$	1,191		1.50	%		N/A					N/A
Total Risked-based Capital		12,331		27.18	%		4,833		10.500	%		4,603		10.00	%		4,763		10.50	%
Common Equity Tier 1 Capital		11,923		26.28	%		3,222		7.000	%		2,992		6.50	%		3,175		7.00	%
Tier 1 Risk-based Capital		11,923		26.28	%		3,913		8.500	%		3,683		8.00	%		3,856		8.50	%
Tier 1 Leverage Capital		11,923		14.82	%		3,177		4.000	%		3,971		5.00	%		N/A
December 31, 2018
Tangible Capital		11,912		15.00	%		1,191		1.500	%		N/A		N/A			N/A		N/A
Total Risked-based Capital		12,320		26.76	%		4,546		9.875	%		4,603		10.00	%		4,603		10.00	%
Common Equity Tier 1 Capital		11,912		25.88	%		2,935		6.375	%		2,992		6.50	%		2,992		6.50	%
Tier 1 Risk-based Capital		11,912		25.88	%		3,625		7.875	%		3,683		8.00	%		3,683		8.00	%
Tier 1 Leverage Capital		11,912		15.00	%		3,177		4.000	%		3,971		5.00	%		3,971		5.00	%

7. FAIR VALUE MEASUREMENTS AND DISCLOSURES

A. Fair Value Measurements

The Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 applies only to fair value measurements already required or permitted by other accounting standards and does not impose requirements for additional fair value measures. ASC Topic 820 was issued to increase consistency and comparability in reporting fair values.

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at March 31, 2018 and December 31, 2018. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as foreclosed real estate owned and certain impaired loans. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses.

In accordance with ASC Topic 820, the Company groups its assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

● Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets.

● Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.

20

7. FAIR VALUE MEASUREMENTS AND DISCLOSURES (Cont’d)

A. Fair Value Measurements (Cont’d)

● Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.

The Company bases its fair values on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. ASC Topic 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Assets that are measured on a recurring basis are limited to the available-for-sale securities portfolio. The available-for-sale portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. Substantially all of the available-for-sale portfolio consists of investment securities issued by government-sponsored enterprises. The fair values for substantially all of these securities are obtained from an independent securities broker. Based on the nature of the securities, the securities broker provides the Company with prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the portfolio.

The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018:

			Quoted Prices in Active		Significant Other		Significant
	Carrying		Markets for Identical		Observable Inputs		Unobservable Inputs
Description	Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2018:
Securities available for sale	$	33,810,757	$	-	$	33,810,757	$	-
December 31, 2018:
Securities available for sale	$	29,426,745	$	-	$	29,426,745	$	-

There were no assets measured at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018.

B. Fair Value Disclosures

The following methods and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein.

Cash and Cash Equivalents

For cash and due from banks and federal funds sold, the carrying amount approximates the fair value (Level 1).

Securities

The fair value of securities is estimated based on bid quotations received from securities dealers, if available (Level 1). If a quoted market price was not available, fair value was estimated using quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued (Level 2).

FHLB Stock

The fair value for FHLB stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock, and the Company is required to maintain a minimum balance based upon the unpaid principal of home mortgage loans (Level 2).

21

7. FAIR VALUE MEASUREMENTS AND DISCLOSURES (Cont’d)

B. Fair Value Disclosures (Cont’d)

Loans Receivable

The net loan portfolio at March 31, 2019 has been valued using an exit price approach incorporating discounts for credit and liquidity. This is not comparable with the fair values used for December 31, 2018, which are based on entrance prices. For December 31, 2018, the loan portfolio was valued using a present value discounted cash flow where market prices are not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk (Level 3).

Deposits

The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand (Level 1). The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits with similar remaining maturities (Level 2).

Short-Term Borrowings

The carrying amounts of federal funds purchased, and other short-term borrowings maturing within 90 days approximate their fair values. Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 1).

Long-Term Borrowings

The fair value of long-term borrowings is estimated using discounted cash flow analysis based on the current incremental borrowing rates for similar types of borrowing arrangements (Level 2).

Off-Balance-Sheet Instruments

In the ordinary course of business the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the financial statements when they are funded. Their fair value would approximate fees currently charged to enter into similar agreements.

The carrying values and estimated fair values of financial instruments are as follows (in thousands):

	March 31, 2019				December 31, 2018
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
			(In Thousands)
Financial assets:
Cash and cash equivalents	$	2,210	$	2,210	$	1,218	$	1,218
Securities held to maturity		627		635		629		623
Securities available for sale		33,811		33,811		29,427		29,427
Loans receivable		42,022		41,283		43,102		41,867
FHLB and other stock, at cost		162		162		331		331
Accrued interest receivable		562		562		517		517
Financial liabilities:
Deposits		68,621		68,790		63,658		63,711
Advances from FHLB-NY		2,650		2,653		3,750		3,754

22

7. FAIR VALUE MEASUREMENTS AND DISCLOSURES (Cont’d)

B. Fair Value Disclosures (Cont’d)

The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale.

In addition, the fair value estimates were based on existing on-and-off balance sheet financial instruments without attempting to value the anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment and advances from borrowers for taxes and insurance. In addition, the tax ramifications related to the realization of the unrealized gains and losses have a significant effect on fair value estimates and have not been considered in any of the estimates.

Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. The lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.

8. CONTINGENCIES

The Company has a $7.5 million student loan portfolio of which $3.1 million was insured by ReliaMax Surety Company (“ReliaMax”). The Company has approximately $72,000 in unamortized premiums paid to ReliaMax to insure these student loans. On June 27, 2018, the South Dakota Division of Insurance was granted a petition to place ReliaMax into liquidation. While the Company expects to recover some of these premiums through the liquidation of ReliaMax as well as through a state insurance guarantee fund, we cannot estimate the amount of any loss or recovery at the present time. The Company filed a claim against ReliaMax in 2018 and we expect to have an estimate of our recovery sometime during 2019.

23

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

General

Management’s discussion and analysis of the financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 as well as the unaudited financial statements and notes appearing on Part I, Item 1 of this quarterly report on Form 10-Q.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

● statements of our goals, intentions and expectations;

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

● statements regarding the quality of our loan and investment portfolios; and

● estimates of our risks and future costs and benefits.

These forward-looking statements are based on current beliefs and expectations of our management 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.

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;

● inflation and 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 de novo or acquired branches, if any;

● our ability to execute on our business strategy to increase commercial real estate and multi-family lending and commercial lending;

● 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; and

● changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

24

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

There are no material changes to the critical accounting policies disclosed in the Company’s Form 10-K for the year December 31, 2018.

Comparison of Financial Condition at March 31, 2019 and December 31, 2018

Total assets increased $4.0 million, or 5.1%, to $83.7 million at March 31, 2019 from $79.7 million at December 31, 2018. The increase was primarily due to higher balances of available for sale securities and cash, partly offset by a decrease in loan balances. Securities available for sale and cash balances increased $4.4 million and $993,000, respectively, partly offset by a $1.1 million decrease in loan balances.

Cash and cash equivalents increased $993,000, or 81.5%, to $2.2 million at March 31, 2019 from $1.2 million at December 31, 2018, as a result of an increase in deposits and a decrease in loans partly offset by an increase in investments and a decrease in advances from the FHLB.

Securities available for sale increased $4.4 million, or 14.9%, to $33.8 million at March 31, 2019 from $29.4 million at December 31, 2018 primarily due to an increase in mortgage-backed securities.

Net loans receivable decreased $1.1 million, or 2.5%, to $42.0 million at March 31, 2019 from $43.1 million at December 31, 2018. The decrease in loans receivable was primarily due to decreases in the residential and student loan portfolios, partly offset by an increase in the commercial real estate portfolio.

At March 31, 2019, our investment in bank-owned life insurance increased $15,000 to $ 2.3 million from $2.3 million at December 31, 2018. We invest in bank-owned life insurance to provide us with a funding offset for our benefit plan obligations. Bank-owned life insurance also generally provides us noninterest income that is non-taxable. Federal regulations generally limit our investment in bank-owned life insurance to 25% of our Tier 1 capital plus our allowance for loan losses, and we have not made any additional contributions to our bank-owned life insurance since 2002.

Federal Home Loan Bank of New York (“FHLB) and other stock decreased $169,000, or 51.0%, to $162,000 at March 31, 2019 compared to $331,000 at December 31, 2018, primarily due to a reduction in FHLB advances.

Deferred income taxes decreased $73,000, or 8.9%, from $823,000 at December 31, 2018 to $749,000 at March 31, 2019 primarily due to the decrease in net unrealized losses in the investment portfolio.

Other assets, consisting primarily of prepaid insurance premiums and prepaid expenses decreased $47,000, or 20.7%, to $180,000 at March 31, 2019, compared to $228,000 at December 31, 2018, mainly due to a decrease in the aforementioned prepaid assets.

Total deposits increased $5.0 million, or 7.8%, to $68.6 million at March 31, 2019 from $63.7 million at December 31, 2018. The increase resulted primarily from increases in certificates of deposit, Now and non-interest bearing checking balances, partly offset by a decrease in savings and money market balances. Certificates of deposit, Now and non-interest bearing checking balances increased $4.2 million, or 21.0%, $1.1 million, or 9.3% and $500,000, or 10.7%, respectively.

Advances from the FHLB decreased $1.1 million or 29.3% from $3.8 million at December 31, 2018 to $2.7 million at March 31, 2019. At March 31, 2019, we had the ability to borrow an additional $22.5 million or 30% of the Association’s assets in FHLB advances and $2 million on a Fed Funds line of credit with Atlantic Community Bankers Bank.

Total equity increased to $11.1 million at March 31, 2019 from $10.9 million at December 31, 2018 resulting primarily from a decrease in other comprehensive loss of $276,000 due to lower unrealized losses in the investment portfolio for the first three months of 2019.

25

Comparison of Results of Operations for the Quarters Ended March 31, 2019 and March 31, 2018

General. We recorded net loss of $46,000 for the quarter ended March 31, 2019 compared to net income of $36,000 for the quarter ended March 31, 2018. The decrease in net income was primarily due to a decrease in net interest income and an increase in non-interest expense.

Net Interest Income. Net interest income decreased $78,000 to $547,000 for the three months ended March 31, 2019 compared to $625,000 for the three months ended March 31, 2018. Interest and dividend income decreased $31,000, or 4.5%, from $689,000 for the three months ended March 31, 2018 to $658,000 for the three months ended March 31, 2019. Interest expense increased $48,000, or 75.0% to $111,000 for the three months ended March 31, 2019, compared to $64,000 for the same period in 2018.

The average yield on our loans decreased five basis points, the average yield on our investment securities increased 30 basis points and the average yield on mortgage-backed securities increased 29 basis points during the quarter ended March 31, 2019 compared to the same quarter in 2018. Our net interest rate spread decreased 29 basis points to 2.94% for the quarter ended March 31, 2019 from 3.23% for the quarter ended March 31, 2018 and our net interest margin decreased 26 basis points to 3.02% for the 2019 quarter from 3.28% for the 2018 period. For the quarter ended March 31, 2018, we recorded a $25,000 loan pre-payment penalty which increased the net interest margin for the 2018 quarter by 13 basis points from 3.15% to 3.28%. Average interest-earning assets decreased $4.4 million, or 5.7%, to $73.0 million for the quarter ended March 31, 2019 from $77.4 million for the first quarter of 2018.

Interest and Dividend Income. Interest and dividend income decreased $31,000 to $658,000 for the quarter ended March 31, 2019 from $689,000 for the quarter ended March 31, 2018. The decrease resulted primarily from a decrease of $63,000 in interest income on loans, partly offset by a $23,000 increase in interest income on mortgage-backed securities, a $2,000 increase in interest income on investment securities and a $7,000 increase in interest income on federal funds sold and other earning assets.

Interest income on loans decreased $63,000, or 11.8%, to $469,000 for the quarter ended March 31, 2019 from $532,000 for the quarter ended March 31, 2018. The decrease resulted primarily from a $5.1 million decrease in average balances along with a five basis point decrease in yield to 4.47% from 4.52%.

Interest and dividend income on investment securities increased $2,000 primarily due to a 30 basis point increase in yield from 1.65% for the quarter ended March 31, 2018 to 1.95% for the quarter ended March 31, 2019. Interest income on mortgage backed securities increased $23,000 primarily due to an increase of 29 basis points in yield and a $639,000 increase in average balances. from $25.6 million for the quarter ended March 31, 2018 to $26.3 million for the quarter ended March 31, 2019. Interest income on federal funds sold and other earning assets increased $7,000 from $4,000 for the three months ended March 31, 2018 to $11,000 for the three months ended March 31, 2019.. This increase was mainly due to receiving a higher dividend on FHLB stock.

Interest Expense. Interest expense, consisting of the cost of interest-bearing deposits and advances from the FHLB, increased $48,000, or 75.0%, to $111,000 for the quarter ended March 31, 2019 from $64,000 for the quarter ended March 31, 2018. The increase was primarily due to an increase of $36,000 in interest expense on deposits and an increase of $12,000 in interest expense on FHLB advances. The cost of interest-bearing deposits for the quarter ended March 31, 2019 increased 27 basis points to 0.65% compared to 0.38% for the quarter ended March 31, 2018. Average interest-bearing liabilities decreased $3.4 million, or 5.1% to $64.1 million for the quarter ended March 31, 2019 from $67.5 million for the quarter ended March 31, 2018. The average balance of savings deposits, interest-bearing certificates of deposit and money market deposits decreased $3.1 million, $1.6 million and $411,000, respectively. The average balance of FHLB advances and escrows increased $1.9 million for the quarter ended March 31, 2019 to $2.3 million from $377,000 for the quarter ended March 31, 2018.

Provision for Loan Losses. We establish provisions for loan losses that are charged to operations in order to maintain the allowance for loan losses at a level believed, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio both probable and reasonable to estimate at each reporting date. There was no provision for loan losses recorded for the quarter ended March 31, 2019 or for the quarter ended March 31, 2018. There were also no charge offs or recoveries during the quarters ended March 31, 2019 and March 31, 2018.

Non-interest Income. Non-interest income remained relatively unchanged at $42,000 for the quarters ended March 31, 2019 and 2018.

Non-interest Expense. Non-interest expense increased $27,000 or 4.3%, to $649,000 for the quarter ended March 31, 2019 from $622,000 for the quarter ended March 31, 2018. The increase was primarily due to higher professional fees, partly offset by lower compensation and benefits and occupancy and equipment expenses.

26

Compensation and benefits decreased $10,000 or 2.9% primarily due to lower staffing levels in the first quarter of 2019. Occupancy and equipment decreased $7,000 or 10.2% mainly due to lower depreciation and utilities expense. Professional fees increased $42,000 or 49% primarily due to higher legal expenses.

Income Tax Expense. We recorded an income tax benefit of $14,000 for the quarter ended March 31, 2019 compared to an income tax expense of $10,000 for the quarter ended March 31, 2018. Income tax expense or benefit is calculated based on pre-tax income or loss adjusted for permanent book to tax differences, such as non-taxable interest income on municipal securities and income on bank owned life insurance.

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 the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s 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, 2019. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Registrant’s disclosure controls and procedures were effective.

During the quarter ended March 31, 2019, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II – Other Information

Item 1. Legal Proceedings

The Company is 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 the Bank’s or the Company’s 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) There were no issuer repurchases of securities during the period covered by this Report.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

27

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 Document
	101. SCH XBRL Taxonomy Extension Schema Document
	101. CAL XBRL Taxonomy Extension Calculation Linkbase Document
	101. DEF XBRL Taxonomy Extension Definition Linkbase Document
	101. LAB XBRL Taxonomy Extension Label Linkbase Document
	101. PRE XBRL Taxonomy Extension Presentation Linkbase Document

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 13, 2019	/s/ Timothy D. Sullivan
	Timothy D. Sullivan
	President and Chief Executive Officer
	/s/ Edward J. Lipkus
	Edward J. Lipkus
	Vice President, Chief Financial Officer, and Treasurer

29

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

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

I, Timothy D. Sullivan, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Sunnyside 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 15d-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 subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter 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 our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

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 13, 2019	/s/ Timothy D. Sullivan
	Timothy D. Sullivan
	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, Edward J. Lipkus, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Sunnyside 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 15d-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 subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter 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 our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

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 13, 2019	/s/ Edward J. Lipkus
	Edward J. Lipkus
	Vice President, Chief Financial 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

Timothy D. Sullivan, President and Chief Executive Officer of Sunnyside Bancorp, Inc., (the “Company”) and Edward J. Lipkus, Vice President, Chief Financial 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, 2019 (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 13, 2019	/s/ Timothy D. Sullivan
	Timothy D. Sullivan
	President and Chief Executive Officer
	/s/ Edward J. Lipkus
	Edward J. Lipkus
	Vice President, Chief Financial 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.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 09, 2019
Document And Entity Information
Entity Registrant Name	Sunnyside Bancorp, Inc.
Entity Central Index Key	0001571398
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		793,500
Trading Symbol	SNNY
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

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Condensed Consolidated Statements of Financial Condition - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 2,210,353	$ 1,217,621
Securities held to maturity, net; approximate fair value of $635,000 (March 31, 2019) and $623,000 (December 31, 2018)	627,403	628,526
Securities available for sale	33,810,757	29,426,745
Loans receivable, net	42,022,267	43,101,525
Premises and equipment, net	1,082,281	1,108,873
Federal Home Loan Bank of New York and other stock, at cost	162,000	330,800
Accrued interest receivable	561,571	516,757
Cash surrender value of life insurance	2,334,988	2,319,802
Deferred income taxes	749,139	822,538
Other assets	180,462	227,540
Total assets	83,741,221	79,700,727
Liabilities:
Deposits	68,621,119	63,658,430
Advances from Federal Home Loan Bank of New York	2,650,000	3,750,000
Advances from borrowers for taxes and insurance	479,640	536,712
Other liabilities	883,431	890,473
Total liabilities	72,634,190	68,835,615
Commitments and contingencies
Stockholders' equity:
Serial preferred stock; par value $.01, 1,000,000 shares authorized, no shares issued
Common stock; par value $.01, 30,000,000 shares authorized and 793,500 shares issued	7,935	7,935
Additional paid-in capital	7,070,954	7,064,299
Unallocated common stock held by the Employee Stock Ownership Plan	(416,632)	(422,184)
Retained earnings	6,158,352	6,204,754
Accumulated other comprehensive (loss)	(1,713,578)	(1,989,692)
Total stockholders' equity	11,107,031	10,865,112
Total liabilities and stockholders' equity	$ 83,741,221	$ 79,700,727

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Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Securities held to maturity, fair value	$ 634,902	$ 623,368
Serial preferred stock, par value	$ 0.01	$ 0.01
Serial preferred stock, shares authorized	1,000,000	1,000,000
Serial preferred stock, shares issued
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	793,500	793,500

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Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest and dividend income:
Loans	$ 469,017	$ 531,523
Investment securities	16,903	14,478
Mortgage-backed securities	161,289	138,785
Federal funds sold and other earning assets	10,795	4,026
Total interest and dividend income	658,004	688,812
Interest expense:
Deposits	99,337	63,504
Borrowings	11,827
Total interest expense	111,164	63,504
Net interest income	546,840	625,308
Provision for loan losses
Net interest income after provision for loan losses	546,840	625,308
Non-interest income:
Fees and service charges	26,405	27,239
Income on bank owned life insurance	15,186	15,188
Total non-interest income	41,591	42,427
Non-Interest Expense:
Compensation and benefits	325,235	334,792
Occupancy and equipment, net	62,297	69,374
Data processing service fees	73,875	73,705
Professional fees	128,030	85,934
Federal deposit insurance premiums	4,801	6,151
Advertising and promotion	11,929	8,703
Other	42,788	43,519
Total non-interest expense	648,955	622,178
Income before income taxes	(60,524)	45,557
Income tax expense (benefit)	(14,122)	10,034
Net income (loss)	$ (46,402)	$ 35,523
Basic and diluted income (loss) per share	$ (0.06)	$ 0.05
Weighted average shares outstanding, basic and diluted	751,332	749,249

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (46,402)	$ 35,523
Defined benefit pension plans:
Amortization of loss included in net periodic plan cost	16,851	12,102
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period	332,662	(398,582)
Other comprehensive income (loss), before tax	349,513	(386,480)
Income tax expense (benefit) related to items of other comprehensive income (loss)	73,399	(81,162)
Other comprehensive income (loss), net of tax	276,114	(305,318)
Comprehensive income (loss)	$ 229,712	$ (269,795)

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Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Unallocated Common Stock Held by ESOP [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2017	$ 7,935	$ 7,030,530	$ (444,394)	$ 6,152,648	$ (1,471,206)	$ 11,275,513
Net (loss) for the three months ended March 31, 2019				35,523		35,523
ESOP shares allocated or committed to be released		3,638	5,552			9,190
Restricted stock awards earned		5,512				5,512
Other comprehensive income, net of tax					(305,318)	(305,318)
Balance at Mar. 31, 2018	7,935	7,039,680	(438,842)	6,188,171	(1,776,524)	11,020,420
Balance at Dec. 31, 2018	7,935	7,064,299	(422,184)	6,204,754	(1,989,692)	10,865,112
Net (loss) for the three months ended March 31, 2019				(46,402)		(46,402)
ESOP shares allocated or committed to be released		1,143	5,552			6,695
Restricted stock awards earned		5,512				5,512
Other comprehensive income, net of tax					276,114	276,114
Balance at Mar. 31, 2019	$ 7,935	$ 7,070,954	$ (416,632)	$ 6,158,352	$ (1,713,578)	$ 11,107,031

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Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (46,402)	$ 35,523
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	29,682	34,219
Amortization of premiums and accretion of discounts, net	29,557	44,450
Amortization of deferred loan fees and costs, net	23,956	23,975
Increase in accrued interest receivable	(44,814)	(10,178)
Increase in cash surrender value of life insurance	(15,186)	(15,188)
Net decrease in other assets	47,078	41,447
Net increase (decrease) in other liabilities	9,809	(54,056)
Amortization of stock compensation plans	12,207	14,702
Net cash provided by operating activities	45,887	114,894
Cash flows from investing activities:
Purchases of securities available for sale	(5,140,941)	(2,542,164)
Repayments and maturities of securities held to maturity	826	1,186
Repayments and maturities of securities available for sale	1,060,331	1,066,892
Loan originations, net of principal repayments	1,055,302	2,591,188
Purchases of premises and equipment	(3,090)	(3,253)
Redemption of Federal Home Loan Bank and other stock	168,800
Net cash (used in) provided by investing activities	(2,858,772)	1,113,849
Cash flows from financing activities:
Net increase (decrease) in deposits	4,962,689	(453,346)
Net decrease in advances from borrowers for taxes and insurance	(57,072)	(39,341)
Net decrease in short-term borrowings	(1,100,000)
Net cash provided by (used in) financing activities	3,805,617	(492,687)
Net increase in cash and cash equivalents	992,732	736,056
Cash and cash equivalents at beginning of period	1,217,621	1,229,036
Cash and cash equivalents at end of period	2,210,353	1,965,092
Cash paid for:
Interest	109,822	63,431
Income taxes	$ 3,369	$ 3,958

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a description of the more significant policies used in the presentation of the accompanying consolidated financial statements of Sunnyside Bancorp, Inc. and Subsidiary, (collectively, the “Company”).

Principles of Consolidation

The consolidated financial statements are comprised of the accounts of Sunnyside Bancorp. Inc., and its wholly-owned subsidiary, Sunnyside Federal Savings and Loan Association of Irvington (“Sunnyside Federal” or the “Association”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Business

Sunnyside Federal is a community-oriented savings institution whose primary business is accepting deposits from customers within its market area (Westchester County, New York) and investing those funds in mortgage loans secured by one-to-four family residences and in mortgage-backed and other securities. To a significantly lesser extent, funds are invested in multi-family and commercial mortgage loans, commercial loans, and consumer loans. Customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation. As a federally-chartered savings association, Sunnyside Federal’s primary regulator is the Office of the Controller of the Currency (the “OCC”).

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. However, such information presented reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of the Company’s management, necessary for a fair statement of results for the interim period.

The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019, or any other future interim period. The unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K.

Cash and Cash Equivalents

For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents.

Investment and Mortgage-Backed Securities

Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in a separate component of retained earnings. As of March 31, 2019 and December 31, 2018, the Company had no securities classified as held for trading.

The Company conducts a periodic review and evaluation of the securities portfolio to determine if a decline in the fair value of any security below its cost basis is other-than-temporary. The evaluation of other-than-temporary impairment considers the duration and severity of the impairment, the Company’s intent and ability to hold the securities and assessments of the reason for the decline in value and the likelihood of a near-term recovery. If such a decline is deemed other-than-temporary, the security is written down to a new cost basis and the resulting loss is charged to income as a component of non-interest expense.

Premiums and discounts on securities are amortized by use of the level-yield method, over the life of the individual securities. Gain or loss on sales of securities is based upon the specific identification method.

Loans Receivable

Loans receivable are stated at unpaid principal balances less the allowance for loan losses and net deferred loan fees.

Recognition of interest on the accrual method is generally discontinued when interest or principal payments are ninety days or more in arrears, or when other factors indicate that the collection of such amounts is doubtful. At that time, a loan is placed on a nonaccrual status, and all previously accrued and uncollected interest is reversed against interest income in the current period. Interest on such loans, if appropriate, is recognized as income when payments are received. A loan is returned to an accrual status when factors indicating doubtful collectability no longer exist.

Allowance for Loan Losses

An allowance for loan losses is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. The Company utilizes a two tier approach: (1) identification of problem loans and establishment of specific loss allowances on such loans; and (2) establishment of general valuation allowances on the remainder of its loan portfolio. The Company maintains a loan review system which allows for a periodic review of its loan portfolio and the early identification of potential problem loans. Such system takes into consideration, among other things, delinquency status, size of loans, type of collateral, and financial condition of the borrowers. Specific loan losses are established for identified loans based on a review of such information and appraisals of the underlying collateral. General loan losses are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, and management’s judgment. Although management believes that adequate specific and general loan loss allowances are established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may be necessary.

A loan evaluated for impairment is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. An insignificant payment delay, which is defined as up to ninety days by the Company, will not cause a loan to be classified as impaired. A loan is not impaired during a period of delay in payment if the Company expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. The amount of loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Payments received on impaired loans are applied first to accrued interest receivable and then to principal.

Federal Home Loan Bank of New York stock

As a member of the Federal Home Loan Bank of New York (“FHLB”), Sunnyside Federal is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on Sunnyside Federal’s activities, primarily our outstanding borrowings, with the FHLB. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists.

Premises and Equipment

Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives:

Building and improvements	5 to 40 years
Furniture, fixtures and equipment	2 to 10 years

Bank-Owned Life Insurance

Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB guidance. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits.

Income Taxes

Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated 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 on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset which is not likely to be realized.

Employee Benefits

Defined Benefit Plans:

The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition.

401(k) Plan:

The Company has a 401(k) plan covering substantially all employees. The Company matches 50% of the first 6% contributed by participants and recognizes expense as its contributions are made.

Employee Stock Ownership Plan:

The employee stock ownership plan (ESOP) is accounted for in accordance with the provisions of ASC 718-40, “Employers’ Accounting for Employee Stock Ownership Plans.” The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Association’s contributions over a period of up to 25 years. The Company’s common stock not yet allocated to participants is recorded as a reduction of stockholders’ equity at cost. Compensation expense for the ESOP is based on the market price of the Company’s stock and is recognized as shares are committed to be released to participants.

Equity Incentive Plan:

On July 17, 2014, the Board of Directors adopted the Sunnyside Bancorp, Inc. 2014 Equity Incentive Plan (the “Stock Incentive Plan”) which was approved by shareholders at the Company’s 2014 Annual Meeting of Shareholders held on September 16, 2014. Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 79,350 shares. The maximum number of shares of stock that may be issued as restricted stock awards cannot exceed 23,805.

The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024.

On June 16, 2015, the Company granted 10,500 shares of restricted stock to certain executive officers, with a grant date fair value of $10.50 per share. Twenty percent of the shares awarded vest annually. Management recognizes expense for the fair value of those awards on a straight line basis over the requisite service period. For the three months ended March 31, 2019 and March 31, 2018, the Company recognized approximately $5,500 in expense in regard to those restricted stock awards. Expected future expense relating to these non-vested restricted shares at March 31, 2019 is $28,000 over a weighted average period of 1.25 years. There were no stock options outstanding as of March 31, 2019.

Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

Concentration of Credit Risk and Interest-Rate Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State.

The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility.

Advertising Costs

It is the Company’s policy to expense advertising costs in the period in which they are incurred.

Earnings Per Share

Basic earnings per common share, or EPS, are computed by dividing net income by the weighted-average common shares outstanding during the year. The weighted-average common shares outstanding includes the weighted-average number of shares of common stock outstanding less the weighted average number of unallocated shares held by the ESOP and the unvested shares of restricted stock. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Potential common shares related to stock options are determined using the treasury stock method.

Subsequent Events

The Company has evaluated all events subsequent to the balance sheet date of March 31, 2019 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance.

Recent Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” This update amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2021, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2020, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07 “Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting”. This update expands earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update on January 1, 2019, did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument. ASU No. 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). While early adoption is permitted, the Company does not expect to elect that option. The Company has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, any impact to the allowance for credit losses - currently allowance for loan and lease losses - will have an offsetting impact on retained earnings.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of this guidance on January 1, 2019 did not have a material effect on the Company’s consolidated financial statements.

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Mutual to Stock Conversion and Liquidation Account

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Mutual to Stock Conversion and Liquidation Account

2. MUTUAL TO STOCK CONVERSION AND LIQUIDATION ACCOUNT

On July 15, 2013, the Association completed its mutual-to-stock conversion, and the Company consummated its initial stock offering. The Company sold 793,500 shares of its common stock, including 55,545 shares purchased by the Association’s ESOP, at a price of $10.00 per share, in a subscription offering, for gross offering proceeds of $7,935,000. The cost of conversion and the stock offering were deferred and deducted from the proceeds of the offering. Conversion costs incurred totaled $845,000 resulting in net proceeds of $6.5 million after also deducting the shares acquired by the ESOP.

In accordance with applicable federal conversion regulations, at the time of the completion of our mutual-to-stock conversion, the Company established a liquidation account in the Association in an amount equal to the Association’s total retained earnings as of the latest balance sheet date in the final prospectus used in the Conversion. Each eligible account holder or supplemental account holder is entitled to a proportionate share of this liquidation account in the event of a complete liquidation of the Association, and only in such event. This share will be reduced if the eligible account holder’s or supplemental account holder’s deposit balance falls below the amounts on the date of record as of any December 31 and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after conversion in the related deposit balance. The Company may not declare, pay a dividend on, or repurchase any of its capital stock, if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements.

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Securities

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

3. SECURITIES

	March 31, 2019
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	547,482	$	5,938	$	-	$	553,420
Mortgage-backed securities		79,921		1,561		-		81,482
	$	627,403	$	7,499	$	-	$	634,902
Securities available for sale:
U.S. government and agency obligations	$	2,999,849	$	-	$	13,472	$	2,986,377
Mortgage-backed securities		31,217,727		71,006		464,353		30,824,380
	$	34,217,576	$	71,006	$	477,825	$	33,810,757

	December 31, 2018
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	547,788	$	-	$	6,675	$	541,113
Mortgage-backed securities		80,738		1,517		-		82,255
	$	628,526	$	1,517	$	6,675	$	623,368
Securities available for sale:
U.S. government and agency obligations	$	2,999,797	$	-	$	28,746		2,971,051
Mortgage-backed securities		27,166,429		5,387		716,122		26,455,694
	$	30,166,226	$	5,387	$	744,868	$	29,426,745

Mortgage-backed securities consist of securities guaranteed by Ginnie Mae, Fannie Mae, Freddie Mac, and the Small Business Administration with amortized costs of $2.3 million, $16.5 million, $10.4 million and $2.1 million, respectively, at March 31, 2019 ($249,000, $15.5 million, $9.3 million, and $2.2 million, respectively, at December 31, 2018).

There were no sales or calls of securities held to maturity or available for sale for the three months ended March 31, 2019 and 2018, respectively.

The following is a summary of the amortized cost and fair value of securities at March 31, 2019 and December 31, 2018, by remaining period to contractual maturity. Actual maturities may differ from these amounts because certain debt security issuers have the right to call or redeem their obligations prior to contractual maturity. In addition, mortgage backed securities that amortize monthly are listed in the period the security is legally set to pay off in full.

	March 31, 2019
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	200,846	$	200,860	$	999,849	$	992,681
After one to five years		-		-		3,147,163		3,119,302
After five to ten years		-		-		1,831,398		1,801,191
After ten years		426,557		434,042		28,239,166		27,897,583
	$	627,403	$	634,902	$	34,217,576	$	33,810,757

	December 31, 2018
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	201,208	$	200,316	$	999,797	$	988,380
After one to five years		-		-		3,268,006		3,220,881
After five to ten years		-		-		1,933,095		1,877,699
After ten years		427,318		423,052		23,965,328		23,339,785
	$	628,526	$	623,368	$	30,166,226	$	29,426,745

The following tables summarize the fair values and unrealized losses of securities with an unrealized loss at March 31, 2019 and December 31, 2018, segregated between securities that have been in an unrealized loss position for less than one year, or one year or longer, at the respective dates.

	March 31, 2019
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities available for sale:
U.S. government and agency obligations	$	-	$	-	$	2,986,377	$	13,472
Mortgage-backed securities		5,312,326		38,139		20,727,845		426,214
	$	5,312,326	$	38,139	$	23,714,222	$	439,686

	December 31, 2018
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities held to maturity:
State, county, and municipal obligations	$	340,797	$	5,783	$	200,316	$	892
Securities available for sale:
U.S. government and agency obligations		-		-		2,971,051		28,746
Mortgage-backed securities		2,322,591		13,840		21,274,973		702,282
		2,322,591		13,840		24,246,024		731,028
	$	2,663,388	$	19,623	$	24,446,340	$	731,920

The unrealized losses are primarily due to changes in market interest rates subsequent to purchase. At March 31, 2019, a total of 43 securities were in an unrealized loss position (45 at December 31, 2018). The Company generally purchases securities issued by Government Sponsored Enterprises (GSE). Accordingly, it is expected that the GSE securities would not be settled at a price less than the Company’s amortized cost basis. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2019 and December 31, 2018 since the decline in market value is attributable to changes in interest rates and not credit quality and the Company has the intent and ability to hold these investments until there is a full recovery of the unrealized loss, which may be at maturity.

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Loans Receivable, Net

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Loans Receivable, Net

4. LOANS RECEIVABLE, NET

	March 31, 2019			December 31, 2018
Mortgage loans:
Residential 1-4 family	$	17,586,769		$	18,239,205
Commercial and multi-family		15,772,769			15,640,233
Home equity lines of credit		17,244			27,725
		33,376,782			33,907,163
Other loans:
Student		7,531,190			8,024,588
Commercial		1,285,171			1,316,545
		8,816,361			9,341,133
Total loans		42,193,143			43,248,296
Less:
Deferred loan fees (costs and premiums), net		(236,956	)		(261,061	)
Allowance for loan losses		407,832			407,832
		170,876			146,771
	$	42,022,267		$	43,101,525

In the ordinary course of business, the Company makes loans to its directors, executive officers, and their associates (related parties) on the same terms as those prevailing at the time of origination for comparable loans with other borrowers. The unpaid principal balances of related party loans were approximately $140,000 and $142,000 at March 31, 2019 and December 31, 2018, respectively.

Activity in the allowance for loan losses is summarized as follows:

	Three Months Ended
	March 31,
	2019		2018
Balance at beginning of period	$	407,832	$	507,235
Provision for loan losses		-		-
Balance at end of period	$	407,832	$	507,235

The allowance for loan losses consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. There are no specific allowances as of March 31, 2019 and December 31, 2018. The general component covers pools of loans by loan class not considered impaired, as well as smaller balance homogeneous loans, such as one-to-four family real estate, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include:

1.	Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.
2.	National, regional, and local economic and business conditions including the value of underlying collateral for collateral dependent loans.
3.	Nature and volume of the portfolio and terms of loans.
4.	Experience, ability, and depth of lending management and staff and the quality of the Company’s loan review system.
5.	Volume and severity of past due, classified and nonaccrual loans.
6.	Existence and effect of any concentrations of credit and changes in the level of such concentrations.
7.	Effect of external factors, such as competition and legal and regulatory requirements.

Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation.

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of pass, special mention, substandard, doubtful and loss.

Loan classifications are defined as follows:

● Pass — These loans are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.

● Special Mention — These loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects.

● Substandard — These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

● Doubtful — These loans have all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make the full recovery of our principal balance highly questionable and improbable on the basis of currently known facts, conditions, and values. The likelihood of a loss on an asset or portion of an asset classified as doubtful is high. Its classification as Loss is not appropriate, however, because pending events are expected to materially affect the amount of loss.

● Loss — These loans are considered uncollectible and of such little value that a charge-off is warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur.

One of the primary methods the Company uses as an indicator of the credit quality of their portfolio is the regulatory classification system. The following table reflects the credit quality indicators by portfolio segment and class, at the dates indicated:

	March 31, 2019
	Mortgage Loans
			Commercial
			Real Estate						Commercial
	Residential		and		Home				and
	1-4 Family		Multi-Family		Equity		Student		Other		Total
	(In thousands)
Pass	$	17,342	$	15,773	$	17	$	7,500	$	1,285	$	41,917
Special Mention		-		-		-		31		-		31
Substandard		245		-		-		-		-		245
Total	$	17,587	$	15,773	$	17	$	7,531	$	1,285	$	42,193

	December 31, 2018
	Mortgage Loans
			Commercial
			Real Estate						Commercial
	Residential		and		Home				and
	1-4 Family		Multi-Family		Equity		Student		Other		Total
	(In thousands)
Pass	$	17,941	$	15,640	$	28	$	8,000	$	1,316	$	42,925
Special Mention		49		-		-		-		-		49
Substandard		249		-		-		25		-		274
Total	$	18,239	$	15,640	$	28	$	8,025	$	1,316	$	43,248

The following table provides information about loan delinquencies at the dates indicated:

	March 31, 2019
													90 Days
													or More
	30-59		60-89		90 Days								Past Due
	Days		Days		or More		Total		Current		Total		and
	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Accruing
	(In thousands)
Residential 1-4 family	$	-	$	-	$	-	$	-	$	17,587	$	17,587	$	-
Commercial real estate and multi-family		-		-		-		-		15,773		15,773		-
Home equity lines of credit		-		-		-		-		17		17		-
Student loans		30		71		-		101		7,430		7,531		-
Other loans		-		-		-		-		1,285		1,285		-
	$	30	$	71	$	-	$	101	$	42,092	$	42,193	$	-

	December 31, 2018
													90 Days
													or More
	30-59		60-89		90 Days								Past Due
	Days		Days		or More		Total		Current		Total		and
	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Accruing
	(In thousands)
Residential 1-4 family	$	-	$	-	$	49	$	49	$	18,190	$	18,239	$	49
Commercial and multi-family		-		-		-		-		15,640		15,640		-
Home equity lines of credit		-		-		-		-		28		28		-
Student loans		5		33		-		38		7,987		8,025		-
Other loans		-		-		-		-		1,316		1,316		-
	$	5	$	33	$	49	$	87	$	43,161	$	43,248	$	49

The following is a summary of loans, by loan type, on which the accrual of income has been discontinued and loans that are contractually past due 90 days or more but have not been classified as non-accrual at the dates indicated:

	March 31, 2019		December 31, 2018
	(In thousands)
Residential 1-4 family	$	245	$	249
Commercial real estate and multi-family		-		-
Home equity lines of credit		-		-
Student loans		-		-
Other loans				-
Total non-accrual loans		245		249
Accruing loans delinquent 90 days or more		-		49
Total non-performing loans	$	245	$	298

The total amount of interest income on non-accrual loans that would have been recognized if interest on all such loans had been recorded based upon original contract terms amounted to approximately $2,800 and $7,300 for the three months ended March 31, 2019 and 2018, respectively. The total amount of interest income recognized on non-accrual loans amounted to approximately $0 and $3,600 during the three months ended March 31, 2019 and 2018, respectively.

A loan is defined as impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due under the contractual terms of the loan agreement. The Company considers one-to four-family mortgage loans and consumer installment loans to be homogeneous and, therefore, does not generally evaluate them for impairment, unless they are considered troubled debt restructurings. All other loans are evaluated on an individual basis.

The following table provides information about the Company’s impaired loans at March 31, 2019 and December 31, 2018 (in thousands):

March 31, 2019	Recorded Investment		Unpaid Principal Balance		Related Specific Allowance
1-4 residential	$	245	$	245	$	-

December 31, 2018	Recorded Investment		Unpaid Principal Balance		Related Specific Allowance
1-4 residential	$	249	$	249	$	-

The following tables provide information about the Company’s impaired loans for the three months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended				Three Months Ended
	March 31, 2019				March 31, 2018
	Average Recorded Investment		Interest Income Received		Average Recorded Investment		Interest Income Received
1-4 residential	$	247	$	-	$	-	$	-

The recorded investment in a loan modified in a troubled debt restructuring totaled $244,947 ($248,956 at December 31, 2018), which was current at the reporting dates and complied with the terms of its restructure agreement. Loans that were modified in a troubled debt restructuring represent concessions made to borrowers experiencing financial difficulties. The Company works with these borrowers to modify existing loan terms usually by extending maturities or reducing interest rates. The Company records an impairment loss, if any, based on the present value of expected future cash flows discounted at the original loan’s effective interest rate or the value of the underlying collateral property. Subsequently, these loans are individually evaluated for impairment.

During the three months ended March 31, 2019 and 2018, there were no new TDR’s that occurred.

The following tables present the activity in the allowance for loan losses by loan type for the periods indicated:

	Three Months Ended
	March 31, 2019
	Mortgage Loans
			Commercial
	Residential 1-4 Family		and Multi-Family		Home Equity		Student			Other		Unallocated		Total
	(In thousands)
Beginning balance	$	145	$	128	$	1	$	122		$	12	$	-	$	408
Provision for loan losses		3		1		-		(4	)		-		-		-
Ending Balance	$	148	$	129	$	1	$	118		$	12	$	-	$	408

	Three Months Ended
	March 31, 2018
	Mortgage Loans
			Commercial
	Residential 1-4 Family		and Multi-Family			Home Equity		Student			Other		Unallocated		Total
	(In thousands)
Beginning balance	$	318	$	121		$	4	$	54		$	10	$	-	$	507
Provision for loan losses		9		(11	)		-		(5	)		-		7		-
Ending Balance	$	327	$	110		$	4	$	49		$	10	$	7	$	507

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

5. ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss included in equity are as follows:

	March 31, 2019			December 31, 2018
Unrealized net loss on pension plan	$	(1,762,268	)	$	(1,779,119	)
Unrealized loss on securities available for sale		(406,819	)		(739,481	)
Accumulated other comprehensive loss before taxes		(2,169,087	)		(2,518,600	)
Tax effect		455,509			528,908
Accumulated other comprehensive loss	$	(1,713,578	)	$	(1,989,692	)

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Regulatory Capital

3 Months Ended

Mar. 31, 2019

Banking and Thrift [Abstract]

Regulatory Capital

6. REGULATORY CAPITAL

The Association is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators, that if undertaken could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations. As of March 31, 2019 and December 31, 2018, the Association exceeded all capital adequacy requirements to which it was subject (see tables below).

On January 1, 2015, the final rules implementing the Basel Committee on Banking Supervision capital guidelines for banking organizations (Basel III) regulatory capital framework and related Dodd-Frank Act changes became effective for the Association. These rules supersede the federal banking agencies’ general risk-based capital rules (Basel I). Full compliance with all of the final rule’s requirements is phased in over a multi-year transition period ending on January 1, 2019. Basel III revised minimum capital requirements and adjusted prompt corrective action thresholds. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Association. The rules included a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0 percent to 6.0 percent, required a minimum ratio of total capital to risk-weighted assets of 8.0 percent, and required a minimum leverage ratio of 4.0 percent. A new capital conservation buffer, comprised of common equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This conservation buffer was phased in beginning January 1, 2016 at 0.625 percent of risk-weighted assets and increased each subsequent year by an additional 0.625 percent until it reached its final level of 2.5 percent of risk-weighted assets on January 1, 2019. The final rule also revised the definition and calculation of Tier 1 capital, total capital and risk-weighted assets.

The following table presents the Association’s actual capital positions and ratios at the dates indicated:

											To be Well					To be Well
											Capitalized Under					Capitalized With
						Minimum Capital					Prompt Corrective					Capital Conservation
	Actual					Requirements					Action Provisions					Buffer
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
						(Dollars in Thousands)
March 31, 2019
Tangible Capital	$	11,923		14.82	%	$	1,191		1.50	%		N/A					N/A
Total Risked-based Capital		12,331		27.18	%		4,833		10.500	%		4,603		10.00	%		4,763		10.50	%
Common Equity Tier 1 Capital		11,923		26.28	%		3,222		7.000	%		2,992		6.50	%		3,175		7.00	%
Tier 1 Risk-based Capital		11,923		26.28	%		3,913		8.500	%		3,683		8.00	%		3,856		8.50	%
Tier 1 Leverage Capital		11,923		14.82	%		3,177		4.000	%		3,971		5.00	%		N/A
December 31, 2018
Tangible Capital		11,912		15.00	%		1,191		1.500	%		N/A		N/A			N/A		N/A
Total Risked-based Capital		12,320		26.76	%		4,546		9.875	%		4,603		10.00	%		4,603		10.00	%
Common Equity Tier 1 Capital		11,912		25.88	%		2,935		6.375	%		2,992		6.50	%		2,992		6.50	%
Tier 1 Risk-based Capital		11,912		25.88	%		3,625		7.875	%		3,683		8.00	%		3,683		8.00	%
Tier 1 Leverage Capital		11,912		15.00	%		3,177		4.000	%		3,971		5.00	%		3,971		5.00	%

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Fair Value Measurements and Disclosures

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements and Disclosures

7. FAIR VALUE MEASUREMENTS AND DISCLOSURES

A. Fair Value Measurements

The Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 applies only to fair value measurements already required or permitted by other accounting standards and does not impose requirements for additional fair value measures. ASC Topic 820 was issued to increase consistency and comparability in reporting fair values.

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at March 31, 2018 and December 31, 2018. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as foreclosed real estate owned and certain impaired loans. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses.

In accordance with ASC Topic 820, the Company groups its assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

● Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets.

● Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.

● Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.

The Company bases its fair values on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. ASC Topic 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Assets that are measured on a recurring basis are limited to the available-for-sale securities portfolio. The available-for-sale portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. Substantially all of the available-for-sale portfolio consists of investment securities issued by government-sponsored enterprises. The fair values for substantially all of these securities are obtained from an independent securities broker. Based on the nature of the securities, the securities broker provides the Company with prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the portfolio.

The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018:

			Quoted Prices in Active		Significant Other		Significant
	Carrying		Markets for Identical		Observable Inputs		Unobservable Inputs
Description	Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2018:
Securities available for sale	$	33,810,757	$	-	$	33,810,757	$	-
December 31, 2018:
Securities available for sale	$	29,426,745	$	-	$	29,426,745	$	-

There were no assets measured at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018.

B. Fair Value Disclosures

The following methods and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein.

Cash and Cash Equivalents

For cash and due from banks and federal funds sold, the carrying amount approximates the fair value (Level 1).

Securities

The fair value of securities is estimated based on bid quotations received from securities dealers, if available (Level 1). If a quoted market price was not available, fair value was estimated using quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued (Level 2).

FHLB Stock

The fair value for FHLB stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock, and the Company is required to maintain a minimum balance based upon the unpaid principal of home mortgage loans (Level 2).

Loans Receivable

The net loan portfolio at March 31, 2019 has been valued using an exit price approach incorporating discounts for credit and liquidity. This is not comparable with the fair values used for December 31, 2018, which are based on entrance prices. For December 31, 2018, the loan portfolio was valued using a present value discounted cash flow where market prices are not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk (Level 3).

Deposits

The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand (Level 1). The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits with similar remaining maturities (Level 2).

Short-Term Borrowings

The carrying amounts of federal funds purchased, and other short-term borrowings maturing within 90 days approximate their fair values. Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 1).

Long-Term Borrowings

The fair value of long-term borrowings is estimated using discounted cash flow analysis based on the current incremental borrowing rates for similar types of borrowing arrangements (Level 2).

Off-Balance-Sheet Instruments

In the ordinary course of business the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the financial statements when they are funded. Their fair value would approximate fees currently charged to enter into similar agreements.

The carrying values and estimated fair values of financial instruments are as follows (in thousands):

	March 31, 2019				December 31, 2018
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
			(In Thousands)
Financial assets:
Cash and cash equivalents	$	2,210	$	2,210	$	1,218	$	1,218
Securities held to maturity		627		635		629		623
Securities available for sale		33,811		33,811		29,427		29,427
Loans receivable		42,022		41,283		43,102		41,867
FHLB and other stock, at cost		162		162		331		331
Accrued interest receivable		562		562		517		517
Financial liabilities:
Deposits		68,621		68,790		63,658		63,711
Advances from FHLB-NY		2,650		2,653		3,750		3,754

The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale.

In addition, the fair value estimates were based on existing on-and-off balance sheet financial instruments without attempting to value the anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment and advances from borrowers for taxes and insurance. In addition, the tax ramifications related to the realization of the unrealized gains and losses have a significant effect on fair value estimates and have not been considered in any of the estimates.

Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. The lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.

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Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Contingencies

8. CONTINGENCIES

The Company has a $7.5 million student loan portfolio of which $3.1 million was insured by ReliaMax Surety Company (“ReliaMax”). The Company has approximately $72,000 in unamortized premiums paid to ReliaMax to insure these student loans. On June 27, 2018, the South Dakota Division of Insurance was granted a petition to place ReliaMax into liquidation. While the Company expects to recover some of these premiums through the liquidation of ReliaMax as well as through a state insurance guarantee fund, we cannot estimate the amount of any loss or recovery at the present time. The Company filed a claim against ReliaMax in 2018 and we expect to have an estimate of our recovery sometime during 2019.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements are comprised of the accounts of Sunnyside Bancorp. Inc., and its wholly-owned subsidiary, Sunnyside Federal Savings and Loan Association of Irvington (“Sunnyside Federal” or the “Association”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Business

Business

Sunnyside Federal is a community-oriented savings institution whose primary business is accepting deposits from customers within its market area (Westchester County, New York) and investing those funds in mortgage loans secured by one-to-four family residences and in mortgage-backed and other securities. To a significantly lesser extent, funds are invested in multi-family and commercial mortgage loans, commercial loans, and consumer loans. Customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation. As a federally-chartered savings association, Sunnyside Federal’s primary regulator is the Office of the Controller of the Currency (the “OCC”).

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. However, such information presented reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of the Company’s management, necessary for a fair statement of results for the interim period.

The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019, or any other future interim period. The unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of reporting cash flows, the Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less to be cash equivalents.

Investment and Mortgage-Backed Securities

Investment and Mortgage-Backed Securities

Securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Securities classified as available-for-sale securities are reported at fair value, with unrealized holding gains or losses reported in a separate component of retained earnings. As of March 31, 2019 and December 31, 2018, the Company had no securities classified as held for trading.

The Company conducts a periodic review and evaluation of the securities portfolio to determine if a decline in the fair value of any security below its cost basis is other-than-temporary. The evaluation of other-than-temporary impairment considers the duration and severity of the impairment, the Company’s intent and ability to hold the securities and assessments of the reason for the decline in value and the likelihood of a near-term recovery. If such a decline is deemed other-than-temporary, the security is written down to a new cost basis and the resulting loss is charged to income as a component of non-interest expense.

Premiums and discounts on securities are amortized by use of the level-yield method, over the life of the individual securities. Gain or loss on sales of securities is based upon the specific identification method.

Loans Receivable

Loans Receivable

Loans receivable are stated at unpaid principal balances less the allowance for loan losses and net deferred loan fees.

Recognition of interest on the accrual method is generally discontinued when interest or principal payments are ninety days or more in arrears, or when other factors indicate that the collection of such amounts is doubtful. At that time, a loan is placed on a nonaccrual status, and all previously accrued and uncollected interest is reversed against interest income in the current period. Interest on such loans, if appropriate, is recognized as income when payments are received. A loan is returned to an accrual status when factors indicating doubtful collectability no longer exist.

Allowance for Loan Losses

Allowance for Loan Losses

An allowance for loan losses is maintained at a level, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate. Management of the Company, in determining the provision for loan losses considers the risks inherent in its loan portfolio and changes in the nature and volume of its loan activities, along with the general economic and real estate market conditions. The Company utilizes a two tier approach: (1) identification of problem loans and establishment of specific loss allowances on such loans; and (2) establishment of general valuation allowances on the remainder of its loan portfolio. The Company maintains a loan review system which allows for a periodic review of its loan portfolio and the early identification of potential problem loans. Such system takes into consideration, among other things, delinquency status, size of loans, type of collateral, and financial condition of the borrowers. Specific loan losses are established for identified loans based on a review of such information and appraisals of the underlying collateral. General loan losses are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, and management’s judgment. Although management believes that adequate specific and general loan loss allowances are established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may be necessary.

A loan evaluated for impairment is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. An insignificant payment delay, which is defined as up to ninety days by the Company, will not cause a loan to be classified as impaired. A loan is not impaired during a period of delay in payment if the Company expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. The amount of loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Payments received on impaired loans are applied first to accrued interest receivable and then to principal.

Federal Home Loan Bank of New York Stock

Federal Home Loan Bank of New York stock

As a member of the Federal Home Loan Bank of New York (“FHLB”), Sunnyside Federal is required to acquire and hold shares of FHLB Class B stock. The holding requirement varies based on Sunnyside Federal’s activities, primarily our outstanding borrowings, with the FHLB. The investment in FHLB stock is carried at cost. The Company conducts a periodic review and evaluation of its FHLB stock to determine if any impairment exists.

Premises and Equipment

Premises and Equipment

Premises and equipment are comprised of land, building, and furniture, fixtures, and equipment, at cost, less accumulated depreciation. Depreciation charges are computed on the straight-line method over the following estimated useful lives:

Building and improvements	5 to 40 years
Furniture, fixtures and equipment	2 to 10 years

Bank-Owned Life Insurance

Bank-Owned Life Insurance

Bank-owned life insurance (“BOLI”) is accounted for in accordance with FASB guidance. The cash surrender value of BOLI is recorded on the statement of financial condition as an asset and the change in the cash surrender value is recorded as non-interest income. The amount by which any death benefits received exceeds a policy’s cash surrender value is recorded in non-interest income at the time of receipt. A liability is also recorded on the statement of financial condition for postretirement death benefits provided by the split-dollar endorsement policy. A corresponding expense is recorded in non-interest expense for the accrual of benefits over the period during which employees provide services to earn the benefits.

Income Taxes

Income Taxes

Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax return differ from these provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated 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 on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided, when necessary, for that portion of the asset which is not likely to be realized.

Employee Benefits

Employee Benefits

Defined Benefit Plans:

The accounting guidance related to retirement benefits requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s overfunded status or a liability for a plan’s underfunded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year; and (c) recognize, in comprehensive income, changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. The accounting guidance requires that plan assets and benefit obligations be measured as of the date of the employer’s fiscal year-end statement of financial condition.

401(k) Plan:

The Company has a 401(k) plan covering substantially all employees. The Company matches 50% of the first 6% contributed by participants and recognizes expense as its contributions are made.

Employee Stock Ownership Plan:

The employee stock ownership plan (ESOP) is accounted for in accordance with the provisions of ASC 718-40, “Employers’ Accounting for Employee Stock Ownership Plans.” The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Association’s contributions over a period of up to 25 years. The Company’s common stock not yet allocated to participants is recorded as a reduction of stockholders’ equity at cost. Compensation expense for the ESOP is based on the market price of the Company’s stock and is recognized as shares are committed to be released to participants.

Equity Incentive Plan:

On July 17, 2014, the Board of Directors adopted the Sunnyside Bancorp, Inc. 2014 Equity Incentive Plan (the “Stock Incentive Plan”) which was approved by shareholders at the Company’s 2014 Annual Meeting of Shareholders held on September 16, 2014. Stock options and restricted stock may be granted to directors, officers and other employees of the Company. The maximum number of shares which may be issued upon exercise of the options under the plan cannot exceed 79,350 shares. The maximum number of shares of stock that may be issued as restricted stock awards cannot exceed 23,805.

The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024.

On June 16, 2015, the Company granted 10,500 shares of restricted stock to certain executive officers, with a grant date fair value of $10.50 per share. Twenty percent of the shares awarded vest annually. Management recognizes expense for the fair value of those awards on a straight line basis over the requisite service period. For the three months ended March 31, 2019 and March 31, 2018, the Company recognized approximately $5,500 in expense in regard to those restricted stock awards. Expected future expense relating to these non-vested restricted shares at March 31, 2019 is $28,000 over a weighted average period of 1.25 years. There were no stock options outstanding as of March 31, 2019.

Comprehensive Income

Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, and the actuarial gains and losses of the pension plan, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

Concentration of Credit Risk and Interest-Rate Risk

Concentration of Credit Risk and Interest-Rate Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Investment securities include securities backed by the U.S. Government and other highly rated instruments. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the State of New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State.

The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with borrowings and other funds, to make loans secured by real estate in the State of New York. The potential for interest-rate risk exists as a result of the shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility.

Advertising Costs

Advertising Costs

It is the Company’s policy to expense advertising costs in the period in which they are incurred.

Earnings Per Share

Earnings Per Share

Basic earnings per common share, or EPS, are computed by dividing net income by the weighted-average common shares outstanding during the year. The weighted-average common shares outstanding includes the weighted-average number of shares of common stock outstanding less the weighted average number of unallocated shares held by the ESOP and the unvested shares of restricted stock. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. Potential common shares related to stock options are determined using the treasury stock method.

Subsequent Events

Subsequent Events

The Company has evaluated all events subsequent to the balance sheet date of March 31, 2019 through the date of this report, and has determined that there are no subsequent events that require disclosure under FASB guidance.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” This update amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2021, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. This update will be effective on January 1, 2020, with early adoption permitted, and is not expected to have a material effect on the Company’s consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07 “Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting”. This update expands earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update on January 1, 2019, did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument. ASU No. 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). While early adoption is permitted, the Company does not expect to elect that option. The Company has begun its evaluation of the amended guidance including the potential impact on its Consolidated Financial Statements. The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, any impact to the allowance for credit losses - currently allowance for loan and lease losses - will have an offsetting impact on retained earnings.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of this guidance on January 1, 2019 did not have a material effect on the Company’s consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of Premises and Equipment Estimated Useful Lives

Depreciation charges are computed on the straight-line method over the following estimated useful lives:

Building and improvements	5 to 40 years
Furniture, fixtures and equipment	2 to 10 years

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Securities (Tables)

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Held to Maturity and Available for Sale Securities

	March 31, 2019
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	547,482	$	5,938	$	-	$	553,420
Mortgage-backed securities		79,921		1,561		-		81,482
	$	627,403	$	7,499	$	-	$	634,902
Securities available for sale:
U.S. government and agency obligations	$	2,999,849	$	-	$	13,472	$	2,986,377
Mortgage-backed securities		31,217,727		71,006		464,353		30,824,380
	$	34,217,576	$	71,006	$	477,825	$	33,810,757

	December 31, 2018
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	547,788	$	-	$	6,675	$	541,113
Mortgage-backed securities		80,738		1,517		-		82,255
	$	628,526	$	1,517	$	6,675	$	623,368
Securities available for sale:
U.S. government and agency obligations	$	2,999,797	$	-	$	28,746		2,971,051
Mortgage-backed securities		27,166,429		5,387		716,122		26,455,694
	$	30,166,226	$	5,387	$	744,868	$	29,426,745

Schedule of Amortized Cost and Fair Value of Securities by Remaining Period to Contractual Maturity

	March 31, 2019
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	200,846	$	200,860	$	999,849	$	992,681
After one to five years		-		-		3,147,163		3,119,302
After five to ten years		-		-		1,831,398		1,801,191
After ten years		426,557		434,042		28,239,166		27,897,583
	$	627,403	$	634,902	$	34,217,576	$	33,810,757

	December 31, 2018
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	201,208	$	200,316	$	999,797	$	988,380
After one to five years		-		-		3,268,006		3,220,881
After five to ten years		-		-		1,933,095		1,877,699
After ten years		427,318		423,052		23,965,328		23,339,785
	$	628,526	$	623,368	$	30,166,226	$	29,426,745

Schedule of Fair Values and Unrealized Losses of Securities in Unrealized Loss Position

	March 31, 2019
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities available for sale:
U.S. government and agency obligations	$	-	$	-	$	2,986,377	$	13,472
Mortgage-backed securities		5,312,326		38,139		20,727,845		426,214
	$	5,312,326	$	38,139	$	23,714,222	$	439,686

	December 31, 2018
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities held to maturity:
State, county, and municipal obligations	$	340,797	$	5,783	$	200,316	$	892
Securities available for sale:
U.S. government and agency obligations		-		-		2,971,051		28,746
Mortgage-backed securities		2,322,591		13,840		21,274,973		702,282
		2,322,591		13,840		24,246,024		731,028
	$	2,663,388	$	19,623	$	24,446,340	$	731,920

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Loans Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of Loans Receivable, Net

	March 31, 2019			December 31, 2018
Mortgage loans:
Residential 1-4 family	$	17,586,769		$	18,239,205
Commercial and multi-family		15,772,769			15,640,233
Home equity lines of credit		17,244			27,725
		33,376,782			33,907,163
Other loans:
Student		7,531,190			8,024,588
Commercial		1,285,171			1,316,545
		8,816,361			9,341,133
Total loans		42,193,143			43,248,296
Less:
Deferred loan fees (costs and premiums), net		(236,956	)		(261,061	)
Allowance for loan losses		407,832			407,832
		170,876			146,771
	$	42,022,267		$	43,101,525

Schedule of Activity in Allowance for Loan Losses

Activity in the allowance for loan losses is summarized as follows:

	Three Months Ended
	March 31,
	2019		2018
Balance at beginning of period	$	407,832	$	507,235
Provision for loan losses		-		-
Balance at end of period	$	407,832	$	507,235

Schedule of Credit Quality Indicators by Portfolio Segment

The following table reflects the credit quality indicators by portfolio segment and class, at the dates indicated:

	March 31, 2019
	Mortgage Loans
			Commercial
			Real Estate						Commercial
	Residential		and		Home				and
	1-4 Family		Multi-Family		Equity		Student		Other		Total
	(In thousands)
Pass	$	17,342	$	15,773	$	17	$	7,500	$	1,285	$	41,917
Special Mention		-		-		-		31		-		31
Substandard		245		-		-		-		-		245
Total	$	17,587	$	15,773	$	17	$	7,531	$	1,285	$	42,193

	December 31, 2018
	Mortgage Loans
			Commercial
			Real Estate						Commercial
	Residential		and		Home				and
	1-4 Family		Multi-Family		Equity		Student		Other		Total
	(In thousands)
Pass	$	17,941	$	15,640	$	28	$	8,000	$	1,316	$	42,925
Special Mention		49		-		-		-		-		49
Substandard		249		-		-		25		-		274
Total	$	18,239	$	15,640	$	28	$	8,025	$	1,316	$	43,248

Schedule of Information About Loan Delinquencies

The following table provides information about loan delinquencies at the dates indicated:

	March 31, 2019
													90 Days
													or More
	30-59		60-89		90 Days								Past Due
	Days		Days		or More		Total		Current		Total		and
	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Accruing
	(In thousands)
Residential 1-4 family	$	-	$	-	$	-	$	-	$	17,587	$	17,587	$	-
Commercial real estate and multi-family		-		-		-		-		15,773		15,773		-
Home equity lines of credit		-		-		-		-		17		17		-
Student loans		30		71		-		101		7,430		7,531		-
Other loans		-		-		-		-		1,285		1,285		-
	$	30	$	71	$	-	$	101	$	42,092	$	42,193	$	-

	December 31, 2018
													90 Days
													or More
	30-59		60-89		90 Days								Past Due
	Days		Days		or More		Total		Current		Total		and
	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Accruing
	(In thousands)
Residential 1-4 family	$	-	$	-	$	49	$	49	$	18,190	$	18,239	$	49
Commercial and multi-family		-		-		-		-		15,640		15,640		-
Home equity lines of credit		-		-		-		-		28		28		-
Student loans		5		33		-		38		7,987		8,025		-
Other loans		-		-		-		-		1,316		1,316		-
	$	5	$	33	$	49	$	87	$	43,161	$	43,248	$	49

Schedule of Loans Accrual of Income has Been Discontinued and Loans Past Due but Not Classified as Non-accrual

The following is a summary of loans, by loan type, on which the accrual of income has been discontinued and loans that are contractually past due 90 days or more but have not been classified as non-accrual at the dates indicated:

	March 31, 2019		December 31, 2018
	(In thousands)
Residential 1-4 family	$	245	$	249
Commercial real estate and multi-family		-		-
Home equity lines of credit		-		-
Student loans		-		-
Other loans				-
Total non-accrual loans		245		249
Accruing loans delinquent 90 days or more		-		49
Total non-performing loans	$	245	$	298

Schedule of Loans Evaluated for Impairment by Loan Type

The following table provides information about the Company’s impaired loans at March 31, 2019 and December 31, 2018 (in thousands):

March 31, 2019	Recorded Investment		Unpaid Principal Balance		Related Specific Allowance
1-4 residential	$	245	$	245	$	-

December 31, 2018	Recorded Investment		Unpaid Principal Balance		Related Specific Allowance
1-4 residential	$	249	$	249	$	-

The following tables provide information about the Company’s impaired loans for the three months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended				Three Months Ended
	March 31, 2019				March 31, 2018
	Average Recorded Investment		Interest Income Received		Average Recorded Investment		Interest Income Received
1-4 residential	$	247	$	-	$	-	$	-

Schedule of Activity in Allowance for Loan Losses by Loan Type

The following tables present the activity in the allowance for loan losses by loan type for the periods indicated:

	Three Months Ended
	March 31, 2019
	Mortgage Loans
			Commercial
	Residential 1-4 Family		and Multi-Family		Home Equity		Student			Other		Unallocated		Total
	(In thousands)
Beginning balance	$	145	$	128	$	1	$	122		$	12	$	-	$	408
Provision for loan losses		3		1		-		(4	)		-		-		-
Ending Balance	$	148	$	129	$	1	$	118		$	12	$	-	$	408

	Three Months Ended
	March 31, 2018
	Mortgage Loans
			Commercial
	Residential 1-4 Family		and Multi-Family			Home Equity		Student			Other		Unallocated		Total
	(In thousands)
Beginning balance	$	318	$	121		$	4	$	54		$	10	$	-	$	507
Provision for loan losses		9		(11	)		-		(5	)		-		7		-
Ending Balance	$	327	$	110		$	4	$	49		$	10	$	7	$	507

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in equity are as follows:

	March 31, 2019			December 31, 2018
Unrealized net loss on pension plan	$	(1,762,268	)	$	(1,779,119	)
Unrealized loss on securities available for sale		(406,819	)		(739,481	)
Accumulated other comprehensive loss before taxes		(2,169,087	)		(2,518,600	)
Tax effect		455,509			528,908
Accumulated other comprehensive loss	$	(1,713,578	)	$	(1,989,692	)

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Regulatory Capital (Tables)

3 Months Ended

Mar. 31, 2019

Banking and Thrift [Abstract]

Schedule of Actual Capital Positions and Ratios

The following table presents the Association’s actual capital positions and ratios at the dates indicated:

											To be Well					To be Well
											Capitalized Under					Capitalized With
						Minimum Capital					Prompt Corrective					Capital Conservation
	Actual					Requirements					Action Provisions					Buffer
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
						(Dollars in Thousands)
March 31, 2019
Tangible Capital	$	11,923		14.82	%	$	1,191		1.50	%		N/A					N/A
Total Risked-based Capital		12,331		27.18	%		4,833		10.500	%		4,603		10.00	%		4,763		10.50	%
Common Equity Tier 1 Capital		11,923		26.28	%		3,222		7.000	%		2,992		6.50	%		3,175		7.00	%
Tier 1 Risk-based Capital		11,923		26.28	%		3,913		8.500	%		3,683		8.00	%		3,856		8.50	%
Tier 1 Leverage Capital		11,923		14.82	%		3,177		4.000	%		3,971		5.00	%		N/A
December 31, 2018
Tangible Capital		11,912		15.00	%		1,191		1.500	%		N/A		N/A			N/A		N/A
Total Risked-based Capital		12,320		26.76	%		4,546		9.875	%		4,603		10.00	%		4,603		10.00	%
Common Equity Tier 1 Capital		11,912		25.88	%		2,935		6.375	%		2,992		6.50	%		2,992		6.50	%
Tier 1 Risk-based Capital		11,912		25.88	%		3,625		7.875	%		3,683		8.00	%		3,683		8.00	%
Tier 1 Leverage Capital		11,912		15.00	%		3,177		4.000	%		3,971		5.00	%		3,971		5.00	%

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Fair Value Measurements and Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on Recurring Basis

The following table provides the level of valuation assumptions used to determine the carrying value of assets measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018:

			Quoted Prices in Active		Significant Other		Significant
	Carrying		Markets for Identical		Observable Inputs		Unobservable Inputs
Description	Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2018:
Securities available for sale	$	33,810,757	$	-	$	33,810,757	$	-
December 31, 2018:
Securities available for sale	$	29,426,745	$	-	$	29,426,745	$	-

Schedule of Estimated Fair Values of Financial Instruments

The carrying values and estimated fair values of financial instruments are as follows (in thousands):

	March 31, 2019				December 31, 2018
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
			(In Thousands)
Financial assets:
Cash and cash equivalents	$	2,210	$	2,210	$	1,218	$	1,218
Securities held to maturity		627		635		629		623
Securities available for sale		33,811		33,811		29,427		29,427
Loans receivable		42,022		41,283		43,102		41,867
FHLB and other stock, at cost		162		162		331		331
Accrued interest receivable		562		562		517		517
Financial liabilities:
Deposits		68,621		68,790		63,658		63,711
Advances from FHLB-NY		2,650		2,653		3,750		3,754

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)		3 Months Ended
	Jun. 16, 2015	Mar. 31, 2019	Mar. 31, 2018	Jul. 17, 2014
Summary Of Significant Accounting Policies [Line Items]
Employer matching contribution percent of match		50.00%
Maximum annual contributions per employee percent		6.00%
ESOP repayment period for common stock borrowed from company		25 years
Stock incentive plan, description		The Stock Incentive Plan will remain in effect as long as any awards under it are outstanding; however, no awards may be granted under the Stock Incentive Plan on or after the 10-year anniversary of the effective date of the Stock Incentive Plan or July 17, 2024.
Stock Option [Member] | Stock Incentive Plan 2014 [Member]
Summary Of Significant Accounting Policies [Line Items]
Maximum number of shares which may be issued				79,350
Restricted Stock [Member]
Summary Of Significant Accounting Policies [Line Items]
Restricted stock awards expenses		$ 5,500	$ 5,500
Expected future expense relating to non-vested restricted shares		$ 28,000
Vesting period of non-vested restricted shares		1 year 2 months 30 days
Restricted Stock [Member] | Executive Officers [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of shares granted	10,500
Grant date fair value, per share	$ 10.50
Vesting percentage	20.00%
Restricted Stock [Member] | Stock Incentive Plan 2014 [Member]
Summary Of Significant Accounting Policies [Line Items]
Maximum number of shares which may be issued				23,805

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Summary of Significant Accounting Policies - Schedule of Premises and Equipment Estimated Useful Lives (Details)	3 Months Ended
	Mar. 31, 2019
Building and Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Building and Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years

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Mutual to Stock Conversion and Liquidation Account (Details Narrative) - USD ($)	Jul. 15, 2013	Mar. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Shares of common stock sold	793,500	793,500	793,500
Shares purchased by ESOP	55,545
ESOP purchase price per share	$ 10.00
Gross offering proceeds	$ 7,935,000
Conversion costs	845,000
Net proceeds after deducting shares acquired by ESOP	$ 6,500,000

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Securities (Details Narrative)	Mar. 31, 2019 USD ($) Security	Dec. 31, 2018 USD ($) Security
Number of securities in an unrealized loss position | Security	43	45
Guaranteed by Ginnie Mae [Member]
Mortgage-backed securities	$ 2,300,000	$ 249,000
Guaranteed by Fannie Mae [Member]
Mortgage-backed securities	16,500,000	15,500,000
Guaranteed by Freddie Mac [Member]
Mortgage-backed securities	10,400,000	9,300,000
Guaranteed by Small Business Administration [Member]
Mortgage-backed securities	$ 2,100,000	$ 2,200,000

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Securities - Schedule of Held to Maturity and Available for Sale Securities (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Securities held to maturity: Amortized Cost	$ 627,403	$ 628,526
Securities held to maturity: Gross Unrealized Gains	7,499	1,517
Securities held to maturity: Gross Unrealized Losses		6,675
Securities held to maturity: Fair Value	634,902	623,368
Securities available for sale: Amortized Cost	34,217,576	30,166,226
Securities available for sale: Gross Unrealized Gains	71,006	5,387
Securities available for sale: Gross Unrealized Losses	477,825	744,868
Securities available for sale: Fair Value	33,810,757	29,426,745
State, County and Municipal Obligations [Member]
Securities held to maturity: Amortized Cost	547,482	547,788
Securities held to maturity: Gross Unrealized Gains	5,938
Securities held to maturity: Gross Unrealized Losses		6,675
Securities held to maturity: Fair Value	553,420	541,113
Mortgage Backed Securities [Member]
Securities held to maturity: Amortized Cost	79,921	80,738
Securities held to maturity: Gross Unrealized Gains	1,561	1,517
Securities held to maturity: Gross Unrealized Losses
Securities held to maturity: Fair Value	81,482	82,255
Securities available for sale: Amortized Cost	31,217,727	27,166,429
Securities available for sale: Gross Unrealized Gains	71,006	5,387
Securities available for sale: Gross Unrealized Losses	464,353	716,122
Securities available for sale: Fair Value	30,824,380	26,455,694
U.S. Government and Agency Obligations [Member]
Securities available for sale: Amortized Cost	2,999,849	2,999,797
Securities available for sale: Gross Unrealized Gains
Securities available for sale: Gross Unrealized Losses	13,472	28,746
Securities available for sale: Fair Value	$ 2,986,377	$ 2,971,051

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Securities - Schedule of Amortized Cost and Fair Value of Securities by Remaining Period to Contractual Maturity (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Held to Maturity, Within one year, Amortized Cost	$ 200,846	$ 201,208
Held to Maturity, After one to five years, Amortized Cost
Held to Maturity, After five to ten years, Amortized Cost
Held to Maturity, After ten years, Amortized Cost	426,557	427,318
Held to Maturity, Amortized Cost	627,403	628,526
Held to maturity, Within one year, Fair Value	200,860	200,316
Held to maturity, After one to five years, Fair Value
Held to Maturity, After five to ten years, Fair Value
Held to Maturity, After ten years, Fair Value	434,042	423,052
Held to Maturity, Fair Value	634,902	623,368
Available for Sale, Within one year, Amortized Cost	999,849	999,797
Available for Sale, After one to five years, Amortized Cost	3,147,163	3,268,006
Available for Sale, After five to ten years, Amortized Cost	1,831,398	1,933,095
Available for Sale, After ten years, Amortized Cost	28,239,166	23,965,328
Available for Sale, Amortized Cost	34,217,576	30,166,226
Available for Sale, Within one year, Fair Value	992,681	988,380
Available for Sale, After one to five years, Fair Value	3,119,302	3,220,881
Available for Sale, After five to ten years, Fair Value	1,801,191	1,877,699
Available for Sale, After ten years, Fair Value	27,897,583	23,339,785
Available for Sale, Fair Value	$ 33,810,757	$ 29,426,745

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Securities - Schedule of Fair Values and Unrealized Losses of Securities in Unrealized Loss Position (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Securities available for sale: Under One Year, Fair Value	$ 5,312,326	$ 2,322,591
Securities available for sale: Under One Year, Gross Unrealized Loss	38,139	13,840
Securities available for sale: One Year or More, Fair Value	23,714,222	24,246,024
Securities available for sale: One Year or More, Gross Unrealized Loss	439,686	731,028
Total Securities: Under One Year, Fair Value		2,663,388
Total Securities: Under One Year, Gross Unrealized Loss		19,623
Total Securities: One Year or More, Fair Value		24,446,340
Total Securities: One Year or More, Gross Unrealized Loss		731,920
U.S. Government and Agency Obligations [Member]
Securities available for sale: Under One Year, Fair Value
Securities available for sale: Under One Year, Gross Unrealized Loss
Securities available for sale: One Year or More, Fair Value	2,986,377	2,971,051
Securities available for sale: One Year or More, Gross Unrealized Loss	13,472	28,746
Mortgage Backed Securities [Member]
Securities available for sale: Under One Year, Fair Value	5,312,326	2,322,591
Securities available for sale: Under One Year, Gross Unrealized Loss	38,139	13,840
Securities available for sale: One Year or More, Fair Value	20,727,845	21,274,973
Securities available for sale: One Year or More, Gross Unrealized Loss	$ 426,214	702,282
State, County and Municipal Obligations [Member]
Securities held to maturity: Under One Year, Fair Value		340,797
Securities held to maturity: Under One Year, Gross Unrealized Loss		5,783
Securities held to maturity: One Year or More, Fair Value		200,316
Securities held to maturity: One Year or More, Gross Unrealized Loss		$ 892

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Loans Receivable, Net (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Receivables [Abstract]
Unpaid principal balances of related party loans	$ 140,000		$ 142,000
Specific allowances
Interest income on non-accrual loans	2,800	$ 7,300
Amount of interest recognized on non-accrual loans	0	$ 3,600
Debt restructuring	$ 244,947		$ 248,956

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Loans Receivable, Net - Schedule of Loans Receivable, Net (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 42,193,143	$ 43,248,296
Less: Deferred loan fees (costs) and (premiums), net	(236,956)	(261,061)
Less: Allowance for loan losses	407,832	407,832	$ 507,235	$ 507,235
Total loans after deduction of deferred loan fees (costs) and (premiums), net and allowance for loan losses	170,876	146,771
Total loans, net	42,022,267	43,101,525
Mortgage Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	33,376,782	33,907,163
Commercial and Other Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	8,816,361	9,341,133
Residential 1-4 Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	17,586,769	18,239,205
Commercial and Multi-Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	15,772,769	15,640,233
Home Equity Lines of Credit [Member] | Mortgage Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	17,244	27,725
Student Loans [Member] | Commercial and Other Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	7,531,190	8,024,588
Commercial Loans [Member] | Commercial and Other Loans Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 1,285,171	$ 1,316,545

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Loans Receivable, Net - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Receivables [Abstract]
Balance at beginning of period	$ 407,832	$ 507,235
Provision for loan losses
Balance at end of period	$ 407,832	$ 507,235

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Loans Receivable, Net - Schedule of Credit Quality Indicators by Portfolio Segment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 42,193,143	$ 43,248,296
Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	41,917,000	42,925,000
Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	31,000	49,000
Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	245,000	274,000
Student Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	7,531,000	8,025,000
Student Loan [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	7,500,000	8,000,000
Student Loan [Member] | Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	31,000
Student Loan [Member] | Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total		25,000
Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	33,376,782	33,907,163
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	17,586,769	18,239,205
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	17,342,000	17,941,000
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total		49,000
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member] | Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	245,000	249,000
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	15,773,000	15,640,000
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	15,773,000	15,640,000
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total
Mortgage Loans Portfolio Segment [Member] | Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	17,000	28,000
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	17,000	28,000
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total
Commercial and Other [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,285,000	1,316,000
Commercial and Other [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,285,000	1,316,000
Commercial and Other [Member] | Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total
Commercial and Other [Member] | Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total
Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 42,193,000	$ 43,248,000

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Loans Receivable, Net - Schedule of Information About Loan Delinquencies (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 101,000	$ 87,000
Current Loans	42,092,000	42,161,000
Total Loans	42,193,143	43,248,296
90 Days or More Past Due and Accruing		49,000
Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Loans	33,376,782	33,907,163
Other Loans [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Current Loans	1,285,000	1,316,000
Total Loans	1,285,000	1,316,000
90 Days or More Past Due and Accruing
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	30,000	5,000
Financing Receivables, 30 to 59 Days Past Due [Member] | Other Loans [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	71,000	33,000
Financing Receivables, 60 to 89 Days Past Due [Member] | Other Loans [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due		49,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other Loans [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Residential 1-4 Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due		49,000
Current Loans	17,587,000	18,190,000
Total Loans	17,586,769	18,239,205
90 Days or More Past Due and Accruing		49,000
Residential 1-4 Family Mortgage Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Residential 1-4 Family Mortgage Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Residential 1-4 Family Mortgage Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due		49,000
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Current Loans	15,773,000	15,640,000
Total Loans	15,773,000	15,640,000
90 Days or More Past Due and Accruing
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Home Equity Line of Credit [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Current Loans	17,000	28,000
Total Loans	17,000	28,000
90 Days or More Past Due and Accruing
Home Equity Line of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Home Equity Line of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Home Equity Line of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due
Student Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	101,000	38,000
Current Loans	7,430,000	7,987,000
Total Loans	7,531,000	8,025,000
90 Days or More Past Due and Accruing
Student Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	30,000	5,000
Student Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	71,000	33,000
Student Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due

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Loans Receivable, Net - Schedule of Loans Accrual of Income has Been Discontinued and Loans Past Due but Not Classified as Non-accrual (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 245,000	$ 249,000
Accruing loans delinquent 90 days or more		49,000
Total non-performing loans	245,000	298,000
Residential 1-4 Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	245,000	249,000
Accruing loans delinquent 90 days or more		49,000
Commercial Real Estate and Multi-Family Mortgage Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans
Accruing loans delinquent 90 days or more
Home Equity Line of Credit [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans
Accruing loans delinquent 90 days or more
Student Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans
Accruing loans delinquent 90 days or more
Other Loans [Member] | Mortgage Loans Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans

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Loans Receivable, Net - Schedule of Loans Evaluated for Impairment by Loan Type (Details) - 1-4 Residential [Member] - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded Investment	$ 245,000		$ 249,000
Unpaid Principal Balance	245,000		249,000
Related Specific Allowance
Average Recorded Investment	247,000
Interest Income Received

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Loans Receivable, Net - Schedule of Activity in Allowance for Loan Losses by Loan Type (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 408,000	$ 507,000
Provision for loan losses
Ending Balance	408,000	507,000
Student Loan [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	122,000	54,000
Provision for loan losses	(4,000)	(5,000)
Ending Balance	118,000	49,000
Mortgage Loans Portfolio Segment [Member] | Residential 1-4 Family Mortgage Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	145,000	318,000
Provision for loan losses	3,000	9,000
Ending Balance	148,000	327,000
Mortgage Loans Portfolio Segment [Member] | Commercial and Multi-Family Mortgage Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	128,000	121,000
Provision for loan losses	1,000	(11,000)
Ending Balance	129,000	110,000
Mortgage Loans Portfolio Segment [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	1,000	4,000
Provision for loan losses
Ending Balance	1,000	4,000
Other Loans Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	12,000	10,000
Provision for loan losses
Ending Balance	12,000	10,000
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance
Provision for loan losses		7,000
Ending Balance		$ 7,000

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Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss before taxes	$ (2,169,087)	$ (2,518,600)
Tax effect	455,509	528,908
Accumulated other comprehensive loss	(1,713,578)	(1,989,692)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss before taxes	(1,762,268)	(1,779,119)
Accumulated Net Unrealized Investment Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss before taxes	$ (406,819)	$ (739,481)

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Regulatory Capital (Details Narrative)	3 Months Ended
	Mar. 31, 2019
Banking and Thrift [Abstract]
Regulatory capital description	The rules included a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0 percent to 6.0 percent, required a minimum ratio of total capital to risk-weighted assets of 8.0 percent, and required a minimum leverage ratio of 4.0 percent. A new capital conservation buffer, comprised of common equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This conservation buffer will be phased in beginning January 1, 2016 at 0.625 percent of risk-weighted assets and increase each subsequent year by an additional 0.625 percent until reaching its final level of 2.5 percent of risk-weighted assets on January 1, 2019. The final rule also revised the definition and calculation of Tier 1 capital, total capital and risk-weighted assets.

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Regulatory Capital - Schedule of Actual Capital Positions and Ratios (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Banking and Thrift [Abstract]
Tangible Capital, Actual, Amount	$ 11,923	$ 11,912
Tangible Capital, Actual, Ratio	14.82%	15.00%
Tangible Capital, Minimum Capital Requirements, Amount	$ 1,191	$ 1,191
Tangible Capital, Minimum Capital Requirements, Ratio	1.50%	1.50%
Tangible Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount
Tangible Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio
Tangible Capital, To be Well Capitalized With Capital Conservation Buffer, Amount
Tangible Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio
Total Risk-based Capital, Actual, Amount	$ 12,331	$ 12,320
Total Risk-based Capital, Actual, Ratio	27.18%	26.76%
Total Risk-based Capital, Minimum Capital Requirements, Amount	$ 4,833	$ 4,546
Total Risk-based Capital, Minimum Capital Requirements, Ratio	10.50%	9.875%
Total Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 4,603	$ 4,603
Total Risk-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Total Risk-based Capital, To be Well Capitalized With Capital Conservation Buffer, Amount	$ 4,763	$ 4,603
Total Risk-based Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio	10.50%	10.00%
Common Equity Tier I Capital, Actual, Amount	$ 11,923	$ 11,912
Common Equity Tier I Capital, Actual, Ratio	26.28%	25.88%
Common Equity Tier I Capital, Minimum Capital Requirements, Amount	$ 3,222	$ 2,935
Common Equity Tier I Capital, Minimum Capital Requirements, Ratio	7.00%	6.375%
Common Equity Tier I Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 2,992	$ 2,992
Common Equity Tier I Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%
Common Equity Tier I Capital, To be Well Capitalized With Capital Conservation Buffer, Amount	$ 3,175	$ 2,992
Common Equity Tier I Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio	7.00%	6.50%
Tier I Risked-based Capital, Actual, Amount	$ 11,923	$ 11,912
Tier I Risked-based Capital, Actual, Ratio	26.28%	25.88%
Tier I Risked-based Capital, Minimum Capital Requirements, Amount	$ 3,913	$ 3,625
Tier I Risked-based Capital, Minimum Capital Requirements, Ratio	8.50%	7.875%
Tier I Risked-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 3,683	$ 3,683
Tier I Risked-based Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier I Risked-based Capital, To be Well Capitalized With Capital Conservation Buffer, Amount	$ 3,856	$ 3,683
Tier I Risked-based Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio	8.50%	8.00%
Tier 1 Leverage Capital, Actual, Amount	$ 11,923	$ 11,912
Tier 1 Leverage Capital, Actual, Ratio	14.82%	15.00%
Tier 1 Leverage Capital, Minimum Capital Requirements, Amount	$ 3,177	$ 3,177
Tier 1 Leverage Capital, Minimum Capital Requirements, Ratio	4.00%	4.00%
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 3,971	$ 3,971
Tier 1 Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
Tier 1 Leverage Capital, To be Well Capitalized With Capital Conservation Buffer, Amount		$ 3,971
Tier 1 Leverage Capital, To be Well Capitalized With Capital Conservation Buffer, Ratio		5.00%

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Fair Value Measurements and Disclosures - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 33,810,757	$ 29,426,745
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Fair Value Inputs Level 2 [Member] | Fair Value Measurements Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	33,810,757	29,426,745
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale

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Fair Value Measurements and Disclosures - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Carrying Reported Amount Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	$ 2,210	$ 1,218
Carrying Reported Amount Fair Value Disclosure [Member] | Securities Held-to-maturity [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	627	629
Carrying Reported Amount Fair Value Disclosure [Member] | Securities Available for Sale [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	33,811	29,427
Carrying Reported Amount Fair Value Disclosure [Member] | Loans Receivable [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	42,022	43,102
Carrying Reported Amount Fair Value Disclosure [Member] | FHLB and Other Stock at Cost [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	162	331
Carrying Reported Amount Fair Value Disclosure [Member] | Accrued Interest Receivable [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	562	517
Carrying Reported Amount Fair Value Disclosure [Member] | Deposits [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial liabilities	68,621	63,658
Carrying Reported Amount Fair Value Disclosure [Member] | FHLB Advances [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial liabilities	2,650	3,750
Estimate of Fair Value Fair Value Disclosure [Member] | Cash and Cash Equivalents [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	2,210	1,218
Estimate of Fair Value Fair Value Disclosure [Member] | Securities Held-to-maturity [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	635	623
Estimate of Fair Value Fair Value Disclosure [Member] | Securities Available for Sale [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	33,811	29,427
Estimate of Fair Value Fair Value Disclosure [Member] | Loans Receivable [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	41,283	41,867
Estimate of Fair Value Fair Value Disclosure [Member] | FHLB and Other Stock at Cost [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	162	331
Estimate of Fair Value Fair Value Disclosure [Member] | Accrued Interest Receivable [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial assets	562	517
Estimate of Fair Value Fair Value Disclosure [Member] | Deposits [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial liabilities	68,790	63,711
Estimate of Fair Value Fair Value Disclosure [Member] | FHLB Advances [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value of Financial liabilities	$ 2,653	$ 3,754

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Contingencies (Details Narrative) - ReliaMax Surety Company [Member]	3 Months Ended
	Mar. 31, 2019 USD ($)
Loan portfolio amount	$ 3,100,000
Student Loan [Member]
Loan portfolio amount	7,500,000
Loss contingency, unamortized insurance premiums	$ 72,000