10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2016

OR

☐ 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. 000-55183

 Home Bancorp Wisconsin, Inc.

(Exact name of registrant as specified in its charter)

Maryland	46-3383278
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

3762 East Washington Avenue, Madison, Wisconsin	53704
(Address of Principal Executive Offices)	Zip Code

(608) 282-6000

(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  ☒    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  ☒    NO  ☐

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

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

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

There were 899,190 shares of the Registrant’s common stock, par value $0.01 per share issued and outstanding as of August 5, 2016.

Home Bancorp Wisconsin, Inc.

Form 10-Q

Index

		Page
Part I. Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2016 (unaudited) and September 30, 2015	2
	Consolidated Statements of Operations for the Three and Nine Months Ended June 30, 2016 and 2015 (unaudited)	3
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended June 30, 2016 and 2015 (unaudited)	4
	Consolidated Statements of Stockholders’ Equity for the Nine Months Ended June 30, 2016 and 2015 (unaudited)	5
	Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2016 and 2015 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27
Item 4.	Controls and Procedures	28
Part II. Other Information
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	29

PART I FINANCIAL INFORMATION Item 1. Financial Statements

Home Bancorp Wisconsin, Inc. and Subsidiary

Consolidated Balance Sheets

June 30, 2016 and September 30, 2015

(Dollars in Thousands)

	(Unaudited) June 30, 2016			September 30, 2015
Assets
Cash and due from banks	$	1,908		$	2,222
Interest-bearing deposits		3,714			311
Cash and cash equivalents		5,622			2,533
Other interest-bearing deposits		3,627			5,011
Securities available for sale		1,208			2,765
Securities held to maturity (fair value of $2,555 and $2,933 for June 30, 2016 and September 30, 2015, respectively)		2,478			2,870
Loans held for sale		201			151
Loans, net of allowance for loan losses of $1,492 and $1,478 for June 30, 2016 and September 30, 2015, respectively.		114,891			109,860
Premises and equipment, net		5,227			5,212
Foreclosed assets		—			260
Cash value of life insurance		3,371			3,316
Federal Home Loan Bank stock		646			646
Other assets		909			902
TOTAL ASSETS	$	138,180		$	133,526
Liabilities and Stockholders’ Equity
Liabilities:
Demand deposits	$	33,538		$	30,055
Money market and savings deposits		45,119			43,105
Time deposits		32,422			32,560
Total deposits		111,079			105,720
Advance payments by borrowers for taxes and insurance		522			793
Federal funds purchased		895			616
Borrowed funds		12,317			13,005
Other liabilities		1,094			1,247
Total liabilities		125,907			121,381
Stockholders’ Equity:
Common stock $0.01 par value, 30,000,000 shares authorized; 899,190 shares issued and outstanding at June 30, 2016 and September 30, 2015	$	9		$	9
Additional paid-in capital		7,404			7,407
Retained earnings		5,506			5,371
Unearned Employee Stock Ownership Plan (ESOP) shares		(647	)		(669	)
Accumulated other comprehensive income		1			27
Total stockholders’ equity		12,273			12,145
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	138,180		$	133,526

The accompanying notes are an integral part of these financial statements 

2

Home Bancorp Wisconsin, Inc. and Subsidiary

Consolidated Statements of Operations

Three and Nine Months Ended June 30, 2016 and 2015

(Unaudited)

(Dollars in Thousands, except per share data)

	Three Months Ended June 30,					Nine Months Ended June 30,
	2016		2015			2016		2015
Interest and dividend income:
Loans, including fees	$	1,173	$	1,043		$	3,520	$	2,965
Interest-bearing deposits		—		30			50		94
Securities		24		40			76		140
Total interest and dividend income		1,197		1,113			3,646		3,199
Interest expense:
Deposits		90		70			262		201
Borrowed funds		74		57			223		159
Total interest expense		164		127			485		360
Net interest income		1,033		986			3,161		2,839
Provision for loan losses		5		30			15		90
Net interest income after provision for loan losses		1,028		956			3,146		2,749
Noninterest income:
Service fees		67		51			205		163
Mortgage banking income		84		20			168		115
Net gain on sale of securities		2		—			6		8
Increase in cash value of life insurance		18		19			55		59
Net gain on sale of premises and equipment		15		15			46		47
Rental income		24		24			72		74
Other		17		7			72		25
Total noninterest income		227		136			624		491
Noninterest expense:
Compensation and employee benefits		601		594			1,789		1,787
Occupancy and equipment		186		175			561		560
Data processing and office expense		246		221			704		683
Foreclosed assets, net		—		195			23		262
Advertising and promotions		33		37			91		96
Professional fees		76		51			197		110
Examinations and assessments		27		30			93		98
Other		66		83			177		218
Total noninterest expense		1,235		1,386			3,635		3,814
Income (loss) before income taxes		20		(294	)		135		(574	)
Provision for income taxes		—		—			—		—
Net income (loss)	$	20	$	(294	)	$	135	$	(574	)
Earnings per share:
Basic		.02		(.35	)		.16		(.69	)
Dilutive		.02		(.35	)		.16		(.69	)

The accompanying notes are an integral part of these financial statements

3

Home Bancorp Wisconsin, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income (Loss)

Three and Nine Months Ended June 30, 2016 and 2015

(Unaudited)

(Dollars in Thousands)

	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015
Net income (loss)	$	20		$	(294	)	$	135		$	(574	)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities during the year		(3	)		(10	)		(20	)		44
Reclassification adjustment for gains realized in net income		(2	)		—			(6	)		(8	)
Income tax effect		—			—			—			—
Net unrealized gain (loss) on securities		(5	)		(10	)		(26	)		36
Other comprehensive income (loss), net of tax		(5	)		(10	)		(26	)		36
Comprehensive income (loss)	$	15		$	(304	)	$	109		$	(538	)

The accompanying notes are an integral part of these financial statements 

4

Home Bancorp Wisconsin, Inc. and Subsidiary

Consolidated Statements of Stockholders’ Equity

Nine Months Ended June 30, 2016 and 2015

(Unaudited)

(Dollars in Thousands)

	Common Stock		Additional Paid In Capital			Retained Earnings			Unearned ESOP Shares			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
Balance at October 1, 2014	$	9	$	7,413		$	6,050		$	(698	)	$	(8	)	$	12,766
Net loss		—		—			(574	)		—			—			(574	)
Allocation of 2,158 Shares from ESOP		—		(5	)		—			22			—			17
Other comprehensive income		—		—			—			—			36			36
Balance at June 30, 2015	$	9	$	7,408		$	5,476		$	(676	)	$	28		$	12,245
Balance at October 1, 2015	$	9	$	7,407		$	5,371		$	(669	)	$	27		$	12,145
Net income		—		—			135			—			—			135
Allocation of 2,158 Shares from ESOP		—		(3	)		—			22			—			19
Other comprehensive loss		—		—			—			—			(26	)		(26	)
Balance at June 30, 2016	$	9	$	7,404		$	5,506		$	(647	)	$	1		$	12,273

The accompanying notes are an integral part of these financial statements

5

Home Bancorp Wisconsin, Inc. and Subsidiary

Consolidated Statements of Cash Flows

Nine Months Ended June 30, 2016 and 2015

(Unaudited)

(Dollars in Thousands)

	Nine Months Ended June 30,
	2016			2015
Increase (decrease) in cash and cash equivalents:
Cash flows from operating activities:
Net income (loss)	$	135		$	(574	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		178			189
Net amortization of premiums and discounts		15			26
ESOP compensation expense		19			17
Provision for loan losses		15			90
Net gain on sale of securities		(6	)		(8	)
Gain on sale of premises and equipment		(46	)		(47	)
Net loss on foreclosed assets		23			242
Increase in cash surrender value		(55	)		(59	)
Changes in operating assets and liabilities:
Loans held for sale		(50	)		270
Other assets		(7	)		(158	)
Other liabilities		(107	)		174
Total adjustments		(21	)		736
Net cash provided by operating activities		114			162
Cash flows from investing activities:
Net decrease in other interest-bearing deposits		1,384			1,490
Proceeds from sales of securities available for sale		1,208			836
Proceeds from maturities, prepayments, and calls of securities available for sale		317			2,696
Proceeds from maturities, prepayments, and calls of securities held to maturity		389			377
Net (increase) decrease in loans		(5,046	)		(16,398	)
Proceeds from sale of foreclosed assets		237			483
Capital expenditures		(193	)		(35	)
Net cash used in investing activities		(1,704	)		(10,551	)
Cash flows from financing activities:
Net increase in deposits		5,359			7,395
Net decrease in advance payments by borrowers for taxes and insurance		(271	)		(282	)
Net increase (decrease) in federal funds purchased		279			(1,388	)
Proceeds from borrowings		4,000			8,900
Repayments of borrowed funds		(4,688	)		(5,023	)
Net cash provided by financing activities		4,679			9,602
Net increase (decrease) in cash and cash equivalents		3,089			(787	)
Cash and cash equivalents at beginning		2,533			4,047
Cash and cash equivalents at end	$	5,622		$	3,260
Supplemental cash flow information:
Cash paid for interest	$	481		$	367
Noncash operating and investing activities:
Loans transferred to foreclosed assets	$	—		$	239

The accompanying notes are an integral part of these financial statements

6

Home Bancorp Wisconsin, Inc. and Subsidiary Form 10-Q Notes to Consolidated Financial Statements (Unaudited) (Dollars in Thousands, except per share data)   Home Bancorp Wisconsin, Inc. and Subsidiary Notes to Financial Statements

Note 1 Basis of Financial Statement Presentation

The accompanying consolidated financial statements include the accounts of Home Bancorp Wisconsin, Inc. and its wholly-owned subsidiary, Home Savings Bank, the “Bank,” and collectively, (the “Company”).

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and with instructions for Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ from these estimates.

In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the financial condition of the Company as of June 30, 2016 and September 30, 2015, and the results of its operations and comprehensive income (loss) for the three and nine months ended June 30, 2016 and 2015, and the statements of stockholders’ equity and cash flows for the nine months ended June 30, 2016 and 2015. These financial statements should be read in conjunction with the financial statements of the Company for the year ended September 30, 2015 included as part of Home Bancorp Wisconsin, Inc.’s Form 10-K dated December 23, 2015 as filed with the Securities and Exchange Commission.

The results of operations for the three and nine month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire year. For further information, refer to the financial statements and footnotes thereto in the Annual Report on Form 10-K.

Note 2 New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 “Credit Losses (Topic 326).” ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. For Securities and Exchange Commission (SEC) filers, the new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently assessing the impact of adopting ASU 2016-13 on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09 “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election for forfeitures as they occur. The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The Company is currently assessing the impact of adopting ASU 2016-09 on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” ASU 2016-02 establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with certain practical expedients available. Early adoption is permitted. The Company is currently assessing the impact of adopting ASU 2016-02 on its consolidated financial statements.

7

In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard makes a number of changes to the recognition and measurement standards of financial instruments, including the following changes: 1) equity securities with a readily determinable fair value will have to be measured at fair value with changes in fair value recognized in net income; 2) entities that are public business entities will no longer be required to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost; and 3) entities that are public business entities will be required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. This new standard is effective for consolidated financial statements issued for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The adoption of this new standard is not expected to have a material impact on our financial condition or results of operations, except that the Company will no longer disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost.

In April 2015, FASB issued ASU No. 2015-03, Interest-Imputation of Interest (subtopic 835-30): Simplify the Presentation of Debt Issuance Costs. The primary purpose of this new guidance is to present debt issuance costs as a direct deduction from the carrying amount of the debt liability. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company adopted this guidance for the December 31, 2015 reporting period. Adoption of this standard did not have a significant impact on the consolidated financial statements or the Notes thereto.

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendment supersedes and replaces nearly all existing revenue recognition guidance. Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual and interim periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. In August 2015, FASB issued ASU No. 2015-14 Revenue from Contracts with Customer (Topic 606), Deferral of the Effective Date. The amendment defers the effective date of ASU No. 2014-09 by one year. Adoption of ASU No. 2014-04 and ASU 2015-14 is not expected to have a material impact on the consolidated financial statements, but significant disclosures to the Notes thereto will be required.

Note 3 Earnings Per Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, including allocated and committed-to-be-released ESOP shares, during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share:

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Nine Months Ended June 30, 2016			Nine Months Ended June 30, 2015
Net income (loss)	$	20		$	(294	)	$	135		$	(574	)
Basic potential common shares:
Weighted average shares outstanding		899,190			899,190			899,190			899,190
Weighted average unallocated Employee Stock Ownership Plan shares		(65,101	)		(67,979	)		(65,820	)		(68,698	)
Basic weighted average shares outstanding		834,089			831,211			833,370			830,492
Dilutive potential common shares		—			—			—			—
Dilutive weighted average shares outstanding		834,089			831,211			833,370			830,492
Basic earnings per share	$	.02		$	(.35	)	$	.16		$	(.69	)
Diluted earnings per share	$	.02		$	(.35	)	$	.16		$	(.69	)

8

Note 4 Securities

The amortized cost and estimated fair value of securities with gross unrealized gains and losses are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2016
Securities available for sale:
U.S. agency pass-through	$	1,207	$	4	$	(3	)	$	1,208
Securities held to maturity:
U.S. agency pass-through	$	2,478	$	77	$	—		$	2,555
September 30, 2015
Securities available for sale:
U.S. agency pass-through	$	2,738	$	27	$	—		$	2,765
Securities held to maturity:
U.S. agency pass-through	$	2,870	$	63	$	—		$	2,933

Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in the estimated fair value. At June 30, 2016, three U.S. agency pass-through securities available for sale with fair values totaling $568 were in an unrealized loss position totaling $3. These securities have been in an unrealized loss position for less than 12 months. The fair values are expected to recover as the securities approach their maturity dates. The Company does not believe the securities are impaired due to reasons of credit quality.

Note 5 Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, generally are reported at their outstanding unpaid principal balances adjusted for charge-offs and the allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication the borrower may be unable to make payments as they become due. When loans are placed on nonaccrual or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.

9

Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the portfolio, composition of the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change.

A loan is impaired when, based on current information, it is probable that the Bank will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent.

In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require additions to the allowance for loan losses based on their judgments of collectability.

The following table presents total loans by portfolio segment and class of loan as of June 30, 2016 and September 30, 2015:

	June 30, 2016			September 30, 2015
Commercial:
Commercial business	$	1,913		$	2,182
Commercial real estate		19,402			19,595
Multifamily real estate		29,532			25,224
Construction		4,051			5,179
Residential real estate:
One- to four-family residential		50,364			48,284
Second mortgage		9,395			9,668
Consumer		2,232			2,311
Subtotals		116,889			112,443
Allowance for loan losses		(1,492	)		(1,478	)
Net deferred loan expenses		(72	)		(51	)
Undisbursed loan proceeds		(434	)		(1,054	)
Loans, net	$	114,891		$	109,860

Analysis of the allowance for loan losses for the three and nine months ended June 30, 2016 and 2015 follows:

	Commercial			Residential			Consumer			Totals
Three Months Ended
Balance at March 31, 2015	$	916		$	507		$	28		$	1,451
Provision for loan losses		19			8			3			30
Loans charged off		—			(21	)		—			(21	)
Recoveries of loans previously charged off		—			1			1			2
Balance at June 30, 2015	$	935		$	495		$	32		$	1,462
Balance at March 31, 2016	$	862		$	599		$	26		$	1,487
Provision for loan losses		(3	)		10			(2	)		5
Loans charged off		—			—			(1	)		(1	)
Recoveries of loans previously charged off		—			—			1			1
Balance at June 30, 2016	$	859		$	609		$	24		$	1,492

10

	Commercial			Residential			Consumer			Totals
Nine Months Ended
Balance at September 30, 2014	$	877		$	504		$	22		$	1,403
Provision for loan losses		58			11			21			90
Loans charged off		—			(21	)		(15	)		(36	)
Recoveries of loans previously charged off		—			1			4			5
Balance at June 30, 2015	$	935		$	495		$	32		$	1,462
Balance at September 30, 2015	$	930		$	522		$	26		$	1,478
Provision for loan losses		(71	)		87			(1	)		15
Loans charged off		—			—			(5	)		(5	)
Recoveries of loans previously charged off		—			—			4			4
Balance at June 30, 2016	$	859		$	609		$	24		$	1,492

	Commercial		Residential		Consumer		Totals
Allowance for loan losses at June 30, 2016:
Individually evaluated for impairment	$	165	$	27	$	—	$	192
Collectively evaluated for impairment		694		582		24		1,300
Totals	$	859	$	609	$	24	$	1,492
Allowance for loan losses at September 30, 2015:
Individually evaluated for impairment	$	142	$	34	$	—	$	176
Collectively evaluated for impairment		788		488		26		1,302
Totals	$	930	$	522	$	26	$	1,478

Analysis of loans evaluated for impairment as of June 30, 2016 and September 30, 2015, follows:

	Commercial		Residential		Consumer		Totals
Loans at June 30, 2016:
Individually evaluated for impairment	$	803	$	777	$	—	$	1.580
Collectively evaluated for impairment		54,095		58,982		2,232		115,309
Totals	$	54,898	$	59,759	$	2,232	$	116,889
Loans at September 30, 2015:
Individually evaluated for impairment	$	847	$	845	$	—	$	1,692
Collectively evaluated for impairment		51,333		57,107		2,311		110,751
Totals	$	52,180	$	57,952	$	2,311	$	112,443

11

Information regarding impaired loans as of June 30, 2016, follows:

	Recorded Investment		Principal Balance		Related Allowance		Average Investment		Interest Recognized
Loans with no related allowance for loan losses:
Commercial real estate	$	491	$	491		N/A	$	511	$	23
One-to four-family		609		609		N/A		615		23
Totals		1,100		1,100		N/A		1,126		46
Loans with an allowance for loan losses:
Commercial business		236		236		161		238		5
Construction		76		76		4		76		3
One-to four-family		168		168		27		168		3
Totals		480		480		192		482		11
Grand totals	$	1,580	$	1,580	$	192	$	1,608	$	57

Information regarding impaired loans as of September 30, 2015, follows:

	Recorded Investment		Principal Balance		Related Allowance		Average Investment		Interest Recognized
Loans with no related allowance for loan losses:
Commercial business	$	80	$	800		N/A	$	81	$	—
Commercial real estate		532		5322		N/A		553		33
One-to four-family		473		4733		N/A		470		30
Totals		1,085		1,0855		N/A		1,104		63
Loans with an allowance for loan losses:
Commercial business		158		158		129		159		—
Construction		77		77		13		77		4
One-to four-family		372		372		34		375		22
Totals		607		607		176		611		26
Grand totals	$	1,692	$	1,692	$	176	$	1,715	$	89

No additional funds are committed to be advanced in connection with impaired loans.

The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for loan losses. The credit quality indicators monitored differ depending on the class of loan.

Commercial loans are generally evaluated using the following internally prepared ratings:

“Pass” ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable.

“Special mention/watch” ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable.

“Substandard” ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable.

“Doubtful” ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely.

12

Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan.

Information regarding the credit quality indicators most closely monitored for commercial loans by class as of June 30, 2016 and September 30, 2015, follows:

	Pass		Special Mention/ Watch		Substandard		Doubtful		Totals
June 30, 2016
Commercial business	$	1,677	$	—	$	236	$	—	$	1,913
Commercial real estate		17,939		972		491		—		19,402
Multifamily real estate		29,312		220		—		—		29,532
Construction		3,976		75		—		—		4,051
Totals	$	52,904	$	1,267	$	727	$	—	$	54,898
September 30, 2015
Commercial business	$	1,944	$	—	$	238	$	—	$	2,182
Commercial real estate		17,990		1,073		532		—		19,595
Multifamily real estate		25,002		222		—		—		25,224
Construction		5,103		76		—		—		5,179
Totals	$	50,039	$	1,371	$	770	$	—	$	52,180

Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class as of June 30, 2016 and September 30, 2015, follows:

	Performing		Non- performing		Totals
June 30, 2016
One- to four-family	$	50,233	$	131	$	50,364
Second mortgage		9,371		24		9,395
Consumer		2,232		—		2,232
Totals	$	61,836	$	155	$	61,991
September 30, 2015
One- to four-family	$	48,284	$	—	$	48,284
Second mortgage		9,652		16		9,668
Consumer		2,303		8		2,311
Totals	$	60,239	$	24	$	60,263

13

Loan aging information as of June 30, 2016, follows:

	Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Past Due Loans
Commercial business	$	—	$	80	$	80
Commercial real estate		—		—		—
Construction		—		—		—
One- to four-family		440		131		571
Second mortgage		—		25		25
Consumer		—		—		—
Totals	$	440	$	236	$	676

	Total Past Due Loans		Total Current Loans		Total Loans		Loans 90+ Days Past Due and Accruing Interest		Total Nonaccrual Loans
Commercial business	$	80	$	1,833	$	1,913	$	—	$	80
Commercial real estate		—		19,402		19,402		—		—
Multifamily real estate		—		29,532		29,532		—		—
Construction		—		4,051		4,051		—		—
One- to four-family		571		49,793		50,364		—		131
Second mortgage		25		9,370		9,395		—		25
Consumer		—		2,232		2,232		—		—
Totals	$	676	$	116,213	$	116,889	$	—	$	236

Loan aging information as of September 30, 2015, follows:

	Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Past Due Loans
Commercial business	$	—	$	80	$	80
Commercial real estate		—		62		62
Multifamily real estate		—		—		—
Construction		—		—		—
One- to four-family		487		—		487
Second mortgage		46		16		62
Consumer		3		8		11
Totals	$	536	$	166	$	702

	Total Past Due Loans		Total Current Loans		Total Loans		Loans 90+ Days Past Due and Accruing Interest		Total Nonaccrual Loans
Commercial business	$	80	$	2,102	$	2,182	$	—	$	80
Commercial real estate		62		19,533		19,595		—		62
Multifamily real estate		—		25,224		25,224		—		—
Construction		—		5,179		5,179		—		—
One- to four-family		487		47,797		48,284		—		—
Second mortgage		62		9,606		9,668		—		16
Consumer		11		2,300		2,311		—		8
Totals	$	702	$	111,741	$	112,443	$	—	$	166

14

When, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that the Company would not otherwise consider, the modified loan is classified as a troubled debt restructuring. Loan modifications may consist of forgiveness of interest and/or principal, a reduction of the interest rate, interest-only payments for a period of time, and/or extending amortization terms. No new troubled debt restructuring was entered into during the nine months ended June 30, 2016.

During the year ended and as of September 30, 2015, there were three new troubled debt restructurings, $262 on two one-to-four family residential real estate loans and $159 on one commercial business loan.

No troubled debt restructurings defaulted within 12 months of their modification date during the nine months ended June 30, 2016 and one troubled debt restructuring was past due more than 30 days within 12 months of its modification date during the year ended September 30, 2015.

Note 6 Regulatory Capital Ratios

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

Federal and state banking agencies have adopted regulations that substantially amend the capital regulations currently applicable to us. The regulations implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act.

Effective January 1, 2015 (with some changes transitioned into full effectiveness over two to four years), the Bank became subject to new capital requirements adopted by the FDIC. These new requirements create a new required ratio for common equity tier 1 capital, increase the leverage and tier 1 capital ratios, change the risk weight of certain assets for purposes of the risk-based capital ratios, create an additional capital conservation buffer over the required capital ratios and change what qualifies as capital for purposes of meeting these various capital requirements. Beginning in 2016, failure to maintain the required capital conservation buffer will limit the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Company is exempt from consolidated capital requirements as those requirements do not apply to certain small savings bank holding companies with assets under $1 billion.

Under the new capital regulations, the minimum capital ratios are: (1) common equity tier q capital ratio of 4.5% of risk-weighted assets, (2) a tier 1 capital ratio of 6.0% of risk-weighted assets, (3) a total capital ratio of 8.0% of risk-weighted assets, and (4) a tier 1 capital to average assets ratio of 4.0%. Common equity tier 1 capital generally consists of common stock and retained earnings, subject to applicable regulatory adjustments and deductions.

The new requirements also include changes in the risk-weights of assets to better reflect credit risk and other risk exposures. These include a 150% risk weight (increased from 100%) for certain high volatility commercial real estate acquisition, development and construction loans and for non-residential mortgage loans that are 90 days past due or otherwise in non-accrual status; a 20% (increased from 0%) credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable; a 250% risk weight (increased from 100%) for mortgage servicing and deferred tax assets that are not deducted from capital; and increased risk weights (0% to 600%) for equity exposures.

In addition to the minimum common equity tier 1, tier 1 and total capital ratios, the Bank will have to maintain a capital conservation buffer consisting of additional common equity tier 1 capital greater than 2.5% to risk weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This new capital conservationbuffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented in January 2019.

The FDIC’s prompt corrective action standards also changed effective January 1, 2015. Under the new standards, in order to be considered well-capitalized, the Bank must have a common equity tier 1 ratio of 6.5% (new), a tier 1 ratio of 8.0% (increased from 6.0%), a total risk-based capital ratio of 10.0% (unchanged) and a leverage ratio of 5.0% (unchanged). The Bank meets all these new requirements, including the full capital conservation buffer.

15

At June 30, 2016 and September 30, 2015, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since June 30, 2016 that management believes have changed the Bank’s category.

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

	Actual					For Capital Adequacy Purposes						To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
June 30, 2016
Total capital (to risk-weighted assets)	$	12,542		12.5	% >	$	8,054	>		8.0	% >	$	10,068	>		10.0	%
Tier I capital (to risk-weighted assets)		11,282		11.2	% >		6,041	>		6.0	% >		8,054	>		8.0	%
Common equity tier 1 capital (to risk-weighted assets)		11,282		11.2	% >		4,530	>		4.5	% >		6,544	>		6.5	%
Tier I capital (to average assets)		11,282		8.3	% >		5,458	>		4.0	% >		6,822	>		5.0	%
September 30, 2015
Total capital (to risk-weighted assets)	$	12,277		13.5	% >	$	7,275	>		8.0	% >	$	9,094	>		10.0	%
Tier I capital (to risk-weighted assets)		11,136		12.2	% >		5,456	>		6.0	% >		7,275	>		8.0	%
Common equity tier 1 capital (to risk-weighted assets)		11,136		12.2	% >		4,092	>		4.5	% >		5,911	>		6.5	%
Tier I capital (to average assets)		11,136		8.3	% >		5,357	>		4.0	% >		6,697	>		5.0	%

16

As a state-chartered savings bank, the Bank is required to maintain a minimum net worth ratio. The Bank’s actual and required net worth ratios are as follows:

	Actual Net Worth					Required Net Worth
	Amount		Ratio			Amount		Ratio
June 30, 2016	$	12,542		9.2	%	$	8,291		6.0	%
September 30, 2015		12,277		9.2			8,012		6.0

Note 7 Fair Value Measurements

Accounting standards describe three levels of inputs that may be used to measure fair value (the fair value hierarchy). The level of an asset or liability within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement of that asset or liability.

Following is a brief description of each level of the fair value hierarchy:

Level 1 - Fair value measurement is based on quoted prices for identical assets or liabilities in active markets.

Level 2 - Fair value measurement is based on: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated by observable market data.

Level 3 - Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect the Company’s estimates about assumptions market participants would use in measuring fair value of the asset or liability.

Some assets and liabilities, such as securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as impaired loans, may be measured at fair value on a nonrecurring basis.

Following is a description of the valuation methodology used for each asset measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset within the fair value hierarchy.

Securities available for sale - Securities available for sale may be classified as Level 1 or Level 2 measurements within the fair value hierarchy. Level 1 securities include equity securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, corporate debt securities, and mortgage-related securities. The fair value measurement of a Level 2 security is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data.

Loans - Loans are not measured at fair value on a recurring basis. However, loans considered to be impaired may be measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. All other impaired loan measurements are based on the present value of expected future cash flows discounted at the applicable effective interest rate and, thus, are not fair value measurements. Fair value measurements of underlying collateral that utilize observable market data, such as independent appraisals reflecting recent comparable sales, are considered Level 2 measurements. Other fair value measurements that incorporate estimated assumptions market participants would use to measure fair value are considered Level 3 measurements.

Foreclosed assets - Real estate and other property acquired through or in lieu of loan foreclosure are not measured at fair value on a recurring basis. However, foreclosed assets are initially measured at fair value (less estimated costs to sell) when they are acquired and may also be measured at fair value (less estimated costs to sell) if they become subsequently impaired. The fair value measurement for each asset may be obtained from an independent firm or prepared internally. Fair value measurements obtained from independent firms are generally based on sales of comparable assets and other observable market data and are considered Level 2 measurements. Fair value measurements prepared internally are based on observable market data but include significant unobservable data and are therefore considered Level 3 measurements.

17

Information regarding the fair value of assets measured at fair value on a recurring basis as of June 30, 2016 and September 30, 2015 follows:

			Recurring Fair Value Measurements Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2016
Assets - Securities available for sale	$	1,208	$	—	$	1,208	$	—
September 30, 2015
Assets - Securities available for sale	$	2,765	$	—	$	2,765	$	—

Information regarding the fair value of assets measured at fair value on a nonrecurring basis as of June 30, 2016 and September 30, 2015 follows:

			Nonrecurring Fair Value Measurements Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2016
Loans	$	288	$	—	$	—	$	288
Totals	$	288	$	—	$	—	$	288
September 30, 2015
Loans	$	431	$	—	$	—	$	431
Foreclosed assets		260		—		—		260
Totals	$	691	$	—	$	—	$	691

Loans with a carrying amount of $480 and $607 were considered impaired and were written down to their estimated fair value of $288 and $431 as of June 30, 2016 and September 30, 2015, respectively. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $192 and $176 during the nine months ended June 30, 2016 and the year ended September 30, 2015, respectively. The loans were valued based on the value of the underlying collateral, adjusted for selling costs. The fair value of collateral is determined based on appraisals, broker price opinions, or automated valuation models. In some cases, adjustments were made to these values due to various factors including age of the appraisal, age of the comparable and other known changes in the market and in the collateral. When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement.

At September 30, 2015, foreclosed assets with a fair value less estimated costs to sell of $260 were acquired through or in lieu of foreclosure. The fair value of foreclosed assets is determined based on appraisals, broker price opinions, or automated valuation models. In some cases, adjustments were made to these values due to various factors including age of the appraisal, age of the comparable and other known changes in the market and in the collateral. When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement.

The Company estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by the Company to estimate fair value of financial instruments not previously discussed.

Cash and cash equivalents - Fair value approximates the carrying value.

Other interest-bearing deposits - Fair value is estimated using discounted cash flow analyses based on current rates for similar types of deposits.

18

Securities held to maturity - Fair value is based on quoted market prices where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

Loans held for sale - Fair value is based on commitments on hand from investors or prevailing market prices.

Loans - Fair value of variable rate loans that reprice frequently is based on carrying values. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair value of impaired and other nonperforming loans is estimated using discounted expected future cash flows or the fair value of underlying collateral, if applicable.

Federal Home Loan Bank stock - Fair value is the redeemable (carrying) value based on the redemption provisions of the Federal Home Loan Bank.

Accrued interest receivable and payable - Fair value approximates the carrying value.

Cash value of life insurance - Fair value is based on reported values of the assets.

Deposits and advance payments by borrowers for taxes and insurance - Fair value of deposits with no stated maturity, such as demand deposits, savings, and money market accounts, including advance payments by borrowers for taxes and insurance, by definition, is the amount payable on demand on the reporting date. Fair value of fixed rate time deposits is estimated using discounted cash flows applying interest rates currently being offered on similar time deposits.

Federal funds purchased - Fair value approximates carrying value.

Borrowed funds - Fair value of fixed rate, fixed term borrowings is estimated by discounting future cash flows using the current rates at which similar borrowings would be made. Fair value of borrowings with variable rates or maturing within 90 days approximates the carrying value of these borrowings.

Off-balance-sheet instruments - Fair value is based on quoted market prices of similar financial instruments where available. If a quoted market price is not available, fair value is based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the counterparty’s credit standing. Since the estimated fair value of off-balance-sheet instruments is not material, no amounts are presented in the following schedule.

The carrying value and estimated fair value of financial instruments at June 30, 2016 and September 30, 2015 follow:

	June 30, 2016
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	5,622	$	5,622	$	—	$	—
Other interest-bearing deposits		3,627		—		—		3,630
Securities available for sale		1,208		—		1,208		—
Securities held to maturity		2,478		—		2,555		—
Loans held for sale		201		—		201		—
Loans		114,891		—		—		114,353
Accrued interest receivable		418		418		—		—
Cash value of life insurance		3,371		—		—		3,371
Federal Home Loan Bank stock		646		—		—		646
Financial liabilities:
Deposits	$	111,079	$	78,657	$	—	$	32,473
Advance payments by borrowers for taxes and insurance		522		522		—		—
Federal funds purchased		895		895		—		—
Borrowed funds		12,317		—		—		12,798
Accrued interest payable		59		59		—		—

19

	September 30, 2015
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	2,533	$	2,533	$	—	$	—
Other interest-bearing deposits		5,011		—		—		5,037
Securities available for sale		2,765		—		2,765		—
Securities held to maturity		2,870		—		2,933		—
Loans held for sale		151		—		151		—
Loans		109,860		—		—		108,713
Accrued interest receivable		395		395		—		—
Cash value of life insurance		3,316		—		—		3,316
Federal Home Loan Bank stock		646		—		—		646
Financial liabilities:
Deposits	$	105,720	$	73,160	$	—	$	32,787
Advance payments by borrowers for taxes and insurance		793		793		—		—
Federal funds purchased		616		616		—		—
Borrowed funds		13,005		—		—		13,475
Accrued interest payable		55		55		—		—

Limitations - The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based on quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s 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 that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts, nor is it recorded as an intangible asset on the consolidated balance sheets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Note 8 Employee Stock Ownership Plan

The Company maintains a leveraged employee stock ownership plan (“ESOP”) that covers substantially all employees. The ESOP was established in conjunction with the Company’s stock offering completed in April 2014. The loan to fund the acquisition of stock by the ESOP was made by the Company. The Bank makes annual contributions to the ESOP equal to the ESOP’s debt service. The ESOP shares initially were pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. Because the debt is intercompany, it is eliminated in consolidation for presentation in these financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet.

20

As shares are committed to be released from collateral and allocated to active participants, the Company reports compensation expense equal to the current market price of the shares and the shares will become outstanding for earnings-per-shares (EPS) computations. During the nine months ended June 30, 2016, 2,158 shares, with an average fair value of $8.98 per share, were committed to be released resulting in ESOP compensation expense of $19 for the nine months ended June 30, 2016. The ESOP shares as of June 30, 2016 and September 30, 2015 were as follows:

	June 30, 2016		September 30, 2015
Allocated shares		5,755		2,877
Shares committed to be released and allocated to participants		1,438		2,158
Total unallocated shares		64,742		66,900
Total ESOP shares		71,935		71,935

Note 9 Subsequent Events

Management has reviewed operations for potential disclosure of information or financial statement impacts related to events occurring after June 30, 2016 but prior to the release of these financial statements.

Based on the results of this review, no additional subsequent events disclosures or financial statement impacts to the recently completed quarter are required as of the release date.

21

Home Bancorp Wisconsin, Inc. and Subsidiary

Form 10-Q

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

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 in this report:

• our ability to execute on our business strategy to increase our origination of multi-family residential loans, one- to four-family investment property loans, commercial real estate loans and home equity loans and lines of credit;

• 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 or acquired financial institutions, if any;

• changes in consumer spending, borrowing and savings habits;

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

• changes in our organization, compensation and benefit plans; and

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

Because of these and other risks and uncertainties, including those discussed in our Annual Report on Form 10-K under the heading “Risk Factors,” our actual future results may be materially different from the results indicated by the forward-looking statements in this report, and you should not place undue reliance on such statements.

Critical Accounting Policies

We consider accounting policies involving significant judgments and assumptions by management that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. The following represent our critical accounting policies:  

Allowance for Loan Losses. The allowance for loan losses is the estimated amount considered necessary to cover inherent, but unconfirmed, credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for losses on loans which is charged against income. In determining the allowance for loan losses, management makes significant estimates and has identified this policy as one of our most critical accounting policies.

22

Management performs a quarterly evaluation of the allowance for loan losses. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.

The analysis has two components, specific and general allocations. Specific percentage allocations can be made for unconfirmed losses related to loans that are determined to be impaired. Impairment is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. If the fair value of the loan is less than the loan’s carrying value, a charge is recorded for the difference. The general allocation is determined by segregating the remaining loans by type of loan, risk weighting (if applicable) and payment history. Loan types are segregated into 1-4 family residential real estate, multifamily real estate, commercial real estate, real estate construction, home equity loans and lines of credit, commercial business, and consumer. We also analyze historical loss experience, delinquency trends, general economic conditions and geographic and industry concentrations. This analysis establishes factors that are applied to the loan groups to determine the amount of the general reserve. Actual loan losses may be significantly more than the allowances we have established which could result in a material negative effect on our financial results.

Securities Valuation and Impairment. We classify our investments in debt and equity securities as either held-to-maturity or available-for-sale. Securities classified as held-to maturity are recorded at cost or amortized cost. Available-for-sale securities are carried at fair value. We obtain our fair values from a third party service. This service’s fair value calculations are based on quoted market prices when such prices are available. If quoted market prices are not available, estimates of fair value are computed using a variety of techniques, including extrapolation from the quoted prices of similar instruments or recent trades for thinly traded securities, fundamental analysis, or through obtaining purchase quotes. Due to the subjective nature of the valuation process, it is possible that the actual fair values of these investments could differ from the estimated amounts, thereby affecting our financial position, results of operations and cash flows. If the estimated value of investments is less than the cost or amortized cost, we evaluate whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. If such an event or change has occurred and we determine that the impairment is other-than-temporary, we expense the impairment of the investment in the period in which the event or change occurred. We also consider how long a security has been in a loss position in determining if it is other than temporarily impaired. Management also assesses the nature of the unrealized losses taking into consideration factors such as changes in risk-free interest rates, general credit spread widening, market supply and demand, creditworthiness of the issuer, and quality of the underlying collateral. At June 30, 2016, 100%, of our securities were issued by the U.S. government, U.S. government agencies or U.S. government-sponsored enterprises.

Foreclosed Assets. Assets acquired through or in lieu of loan foreclosure are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less cost to sell and are included in other assets. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets.

Income Taxes and Accounting for Valuation Allowance on Deferred Tax Asset. We determine deferred tax assets and liabilities using the liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the current enacted tax rates that will be in effect when these differences are expected to reverse. Provision (credit) for deferred taxes is the result of changes in the deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax asset will not be realized. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets.

A valuation allowance is needed when, based on the weight of the available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. As required by generally accepted accounting principles, available evidence is weighted heavily on cumulative losses with less weight placed on future projected profitability. We assessed our operating results during fiscal 2008 through June 30, 2016, estimated future operating results, tax planning strategies and the timing of reversals of temporary differences. At September 30, 2015, and again at June 30, 2016 we determined that it is more likely than not that the deferred tax asset may not be realized. Accordingly, a valuation allowance has been established for the entire amount of our deferred tax asset. Realization of the deferred tax asset is dependent on whether there will be sufficient future taxable income of the appropriate character in the period during which deductible temporary differences reverse or within the carryforward periods available under tax law.

Overview

For the three months ended June 30, 2016, we had net income of $20,000, a $314,000 improvement from the $294,000 net loss for the three months ended June 30, 2015. Operating results improved in net interest income, provision for loan loss, noninterest income, and noninterest expense. Net interest income increased by $47,000 for the quarter ended June 30, 2016, compared to the quarter ended June 30, 2015, primarily due to loan growth. The provision for loan losses decreased by $25,000 for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015, as credit quality continued to improve. Noninterest income increased $91,000 and noninterest expense decreased by $151,000 for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015.

23

Total assets increased $4.7 million, or 3.5%, to $138.2 million at June 30, 2016 from $133.5 million at September 30, 2015. Loans, net increased $5.0 million, or 4.6%, to $114.9 million and cash and due from banks increased $3.1 million, or 122.0%, to $5.6 million. The Company had no foreclosed assets at June 30, 2016.

Total deposits increased $5.4 million, or 5.1%, to $111.1 million at June 30, 2016 from $105.7 million at September 30, 2015.

Based on the above and the growth achieved to date, we anticipate additional growth and net income pursuant to our business plan. Assuming the successful execution of our business plan, we anticipate that we will continue to be profitable in upcoming quarters. There are no assurances, however, that we will successfully execute our business plan and be able to continue achieving profitable results.

Comparison of Financial Condition at June 30, 2016 and September 30, 2015

Total assets increased $4.7 million, or 3.5% to $138.2 million at June 30, 2016 from $133.5 million at September 30, 2015. Net loans increased by $5.0 million, cash and cash equivalents increased by $3.1 million, and loans held for sale increased by $50,000, as investments decreased $2.9 million and other interest-earning deposits decreased $1.4 million.

Cash and cash equivalents increased $3.1 million, or 122.0%, to $5.6 million at June 30, 2016.

Other interest-bearing deposits in other financial institutions decreased $1.4 million, or 27.6%, to $3.6 million at June 30, 2016.

Net loans, excluding loans held for sale, increased by $5.0 million, or 4.6%, to $114.9 million at June 30, 2016 from $109.9 million at September 30, 2015. The increase in net loans during the nine months ended June 30, 2016 was primarily the result of a $4.3 million increase in multifamily real estate loans and a $2.1 million increase in one- to four-family residential mortgage loans, partially offset by a $1.1 million decrease in construction loans, and a $273,000 decrease in second mortgage loans on residential real estate.

Loans held for sale increased by $50,000, or 33.1%, to $201,000 from $151,000 at September 30, 2015. The increase in loans held for sale represents the timing of loan originations and loan sales.

Total investment securities decreased $1.9 million, or 34.6%, to $3.7 million at June 30, 2016. The decrease in investment securities was from calls, sales, and principal payments on mortgage-backed securities. Securities available for sale decreased $1.6 million, while securities held to maturity decreased by $392,000. 

Our investment in bank-owned life insurance increased $55,000 to $3.4 million during the nine months ended June 30, 2016. 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.

Foreclosed assets decreased $260,000 to $0 at June 30, 2016.

Total deposits increased $5.4 million, or 5.1%, to $111.1 million at June 30, 2016 from $105.7 million at September 30, 2015. As part of our strategic plan we continued our efforts to increase core deposits, which we consider to be all deposits except brokered deposits. Demand deposits increased $3.5 million, or 11.6%, and money market and savings deposits increased $2.0 million, or 4.7%, while time deposits decreased $138,000, during the nine months ended June 30, 2016.

Advance payments by borrowers for taxes and insurance decreased $271,000, or 34.2%, to $522,000 as many of these balances were used to pay 2015 property taxes.

Our borrowings consist predominantly of Federal Home Loan Bank of Chicago advances and federal funds purchased. Federal Home Loan Bank advances decreased by $688,000, or 5.3%, to $12.3 million at June 30, 2016. Overnight federal funds purchased increased $279,000 to $895,000 at June 30, 2016.

Other liabilities decreased $153,000, or 12.3%, to $1.1 million at June 30, 2016.

Total equity increased $128,000, or 1.1%, to $12.3 million at June 30, 2016 from $12.1 million at September 30, 2015. The increase was primarily due to the $135,000 net income for the nine months ended June 30, 2016. Total equity was also impacted by the recognition of $19,000 from the allocation of ESOP shares and a $26,000 decrease in accumulated other comprehensive income.

24

Comparison of Results of Operations for the three months ended June 30, 2016 and 2015

General. We recorded net income of $20,000 for the three months ended June 30, 2016, compared to a net loss of $294,000 for the three months ended June 30, 2015. Operating results improved as a result of improvements in net interest income, provision for loan loss, noninterest income, and noninterest expense. Net interest income increased by $47,000 for the quarter ended June 30, 2016, compared to the quarter ended June 30, 2015. In addition, the provision for loan losses decreased by $25,000 for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015, as credit quality continued to improve. Noninterest income increased $91,000 and noninterest expense decreased by $151,000 for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015.

Net Interest Income. Net interest income increased $47,000, or 4.8%, to $1.0 million for the three months ended June 30, 2016 from $986,000 for the three months ended June 30, 2015. The increase in net interest income resulted from an increase of $84,000 in interest and dividend income partially offset by an increase of $37,000 in interest expense. The interest income increase was due to growth of $8.8 million in average total interest-bearing assets and the average yield on such assets remained 3.79%. The increase in interest expense was due to a $6.2 million increase in interest bearing liabilities and a 0.10% increase in the cost of such liabilities to 0.57%.

Interest and Dividend Income. Interest and dividend income increased $84,000, or 7.5%, to $1.2 million for the three months ended June 30, 2016 from $1.1 million for the three months ended June 30, 2015. The increase resulted from a $130,000 increase in interest income on loans partially offset by a $46,000 decrease in interest and dividend income on interest-bearing deposits and securities.

Interest income on loans increased $130,000, or 12.5%, to $1.2 million for the quarter ended June 30, 2016 from $1.0 million for the quarter ended June 30, 2015. This increase resulted from a $15.0 million increase in the average balance of loans to $115.4 million and a 9 basis point decrease in the average yield on loans to 4.06% for the quarter ended June 30, 2016 from 4.15% for the quarter ended June 30, 2015.

Interest income on interest-bearing deposits decreased $30,000, or 100.0%, to $0 for the three month period ended June 30, 2016 from $30,000 for the three month period ended June 30, 2015.

Interest and dividend income on investment securities decreased by $16,000 to $24,000, or 40.0%, for the quarter ended June 30, 2016 from $40,000 for the quarter ended June 30, 2015. The decrease was due to a $3.8 million decrease in the average balance of investment securities to $5.1 million for the quarter ended June 30, 2016 and a 7 basis point increase in the average yield on investment securities to 1.87%.

Interest Expense. Interest expense, consisting of interest-bearing deposits and borrowings, increased by $37,000, or 29.1%, to $164,000 for the quarter ended June 30, 2016 from $127,000 for the quarter ended June 30, 2015. The increase was due to a $20,000, or 28.6%, increase in the cost of interest-bearing deposits and a $17,000, or 29.8%, increase in the cost of borrowings. At June 30, 2016, our borrowings consisted of $12.3 million of Federal Home Loan Bank of Chicago advances and $895,000 of federal funds purchased.

The $20,000 increase in interest expense from deposits was largely the result of an $18,000 increase in interest expense from certificates of deposit. The average balance of certificates of deposit increased $2.3 million for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015, and the average cost of such deposits increased to .96% from .79% for the same periods, respectively.

The cost of borrowings increased $17,000, or 29.8%, to $74,000 for the quarter ended June 30, 2016 from $57,000 for the quarter ended June 30, 2015. The increase was due to a $1.5 million increase in average borrowings and a 0.30% increase in the average cost to 2.37% from 2.07%.

Provision for Loan Losses. We recorded a provision for loan losses of $5,000 for the three months ended June 30, 2016, compared to a provision for loan losses of $30,000 for the three months ended June 30, 2015. The decrease in the provision for loan losses was primarily due to a reduction in historical loan losses. As a result of loan growth the allowance for loan losses increased $5,000 in the three months ended June 30, 2016 as the $5,000 provision for loan losses and the $1,000 recoveries on previously charged off loans more than offset loan charge offs totaling $1,000.

Noninterest Income. Noninterest income increased $91,000 to $227,000 for the three months ended June 30, 2016, compared to $136,000 for the three months ended June 30, 2015. The increase was primarily due to a $64,000 increase in mortgage banking income to $84,000, a $16,000 increase in service fees, and a $10,000 increase in other noninterest income to $17,000.

Noninterest Expense. Noninterest expense decreased $151,000, or 10.9%, to $1.2 million for the three months ended June 30, 2016 compared to the three months ended June 30, 2015. The largest component decreases were foreclosed assets expense which decreased $195,000 to $0 and other noninterest expense which decreased $17,000 to $66,000. These decreases and others were partially offset by increases in professional fees of $25,000 to $76,000, data processing and office expense of $25,000 to $246,000, and occupancy and equipment expense of $11,000 to $186,000.

25

Income Tax Expense. We recorded no income tax expense for the three months ended June 30, 2016 and 2015 and maintain a 100% valuation allowance on our deferred tax asset.

Comparison of Results of Operations for the nine months ended June 30, 2016 and 2015

General. We recorded net income of $135,000 for the nine months ended June 30, 2016, compared to a net loss of $574,000 for the nine months ended June 30, 2015. Net interest income increased by $322,000, noninterest income increased by $133,000, noninterest expense decreased by $179,000, and the provision for loan losses decreased by $75,000 for the nine months ended June 30, 2016.

Net Interest Income. Net interest income increased $322,000, or 11.3%, to $3.2 million for the nine months ended June 30, 2016 from $2.8 million for the nine months ended June 30, 2015. The increase in net interest income resulted from an increase of $447,000 in interest and dividend income, partially offset by an increase of $125,000 in interest expense.

Interest and Dividend Income. Interest and dividend income increased $447,000, or 14.0%, to $3.6 million for the nine months ended June 30, 2016 from $3.2 million for the nine months ended June 30, 2015. The increase resulted from a $555,000 increase in interest income on loans, partially offset by a $44,000 decrease in interest income on interest-bearing deposits and a $64,000 decrease in interest and dividends on securities.

Interest income on loans increased $555,000, or 18.7%, to $3.5 million for the nine months ended June 30, 2016 from $3.0 million for the nine months ended June 30, 2015. This increase resulted from a $19.5 million increase in the average balance of loans to $114.8 million, partially offset by a 6 basis point decrease in the average yield on loans to 4.10%.

Interest income on interest-bearing deposits decreased $44,000, or 46.8%, to $50,000 for the nine month period ended June 30, 2016 from $94,000 for the nine month period ended June 30, 2015. The decrease resulted from a $2.5 million decrease in the average balance of interest-bearing deposits to $5.4 million and a 37 basis point decrease in the average yield on such deposits to 1.20%.

Interest and dividend income on investment securities decreased $64,000 to $76,000 for the nine months ended June 30, 2016 from $140,000 for the nine months ended June 30, 2015. The decrease was due to an 11 basis point decrease in the average yield on investment securities to 1.83% and a $4.5 million decrease in the average balance of investment securities to $5.0 million.

Interest Expense. Interest expense, consisting of interest-bearing deposits and borrowings, increased $125,000, or 34.7%, to $485,000 for the nine months ended June 30, 2016 from $360,000 for the nine months ended June 30, 2015. The increase was due to a $61,000, or 30.3%, increase in the cost of interest-bearing deposits and a $64,000, or 40.3%, increase in the cost of borrowings.

The $61,000 increase in interest expense from deposits was the result of a $61,000 increase in interest expense from certificates of deposit. The average balance of certificates of deposit increased $4.8 million for the nine months ended June 30, 2016 compared to the nine months ended June 30, 2015, while the average cost of such deposits increased to .92% from .79% for the same periods, respectively.

The cost of borrowings increased $64,000 for the nine month period ended June 30, 2016, as average borrowings increased $4.0 million, which was partially offset by a decrease in the average cost of such borrowings from 2.17% to 2.16%.

Provision for Loan Losses. We recorded a provision for loan losses of $15,000 for the nine months ended June 30, 2016, compared to a provision for loan losses of $90,000 for the nine months ended June 30, 2015. The decrease in the provision for loan losses was primarily due to a reduction in historical loan losses, partially offset by an increase in the balance of loans. The allowance for loan losses increased $14,000 in the nine months ended June 30, 2016 as the $15,000 provision for loan losses and the $4,000 recoveries on previously charged off loans more than offset loan charge offs totaling $5,000.

Noninterest Income. Noninterest income increased $133,000, or 27.1%, to $624,000 for the nine months ended June 30, 2016, compared to $491,000 for the nine months ended June 30, 2015. The increase was primarily due to a $53,000 increase in mortgage banking income to $168,000, a $42,000 increase in service fees to $205,000, and a $47,000 increase in other noninterest income to $72,000, partially offset by decreases totaling $9,000 in net gain on sale of securities, net gain on sale of premises and equipment, rental income and income from cash value of life insurance.

26

Noninterest Expense. Noninterest expense decreased $179,000, or 4.7%, to $3.6 million for the nine months ended June 30, 2016 compared to the nine months ended June 30, 2015. The largest component decreases were foreclosed assets, net which decreased $239,000 to $23,000, advertising and promotions which decreased $5,000 to $96,000, examinations and assessments which decreased $5,000 to $93,000, and other noninterest expense which decreased $41,000 to $177,000. These decreases were partially offset by increases of $87,000 in professional fees and $21,000 in data processing and office expense.

Income Tax Expense. We recorded no income tax benefit or expense for the nine months ended June 30, 2016 and 2015 and maintain a 100% valuation allowance on our deferred tax asset.

Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, scheduled amortization and prepayments of loan principal and mortgage-backed securities, maturities and calls of investment securities and funds provided by our operations. In addition, we have the ability to borrow from the Federal Home Loan Bank of Chicago. At June 30, 2016, we had $12.3 million in borrowings from the Federal Home Loan Bank of Chicago. At that same date, we had the capacity to borrow an additional $25.7 million from the Federal Home Loan Bank of Chicago, subject to our pledging sufficient assets. At June 30, 2016, we had no federal funds purchased. We had the ability to borrow $1.8 million through Bankers Bank’s agent federal funds program. In addition, we have authority to borrow $6.4 million from the Federal Reserve’s “discount window,” but Federal Reserve policy generally requires savings institutions to exhaust all other sources before borrowing from the Federal Reserve.

Loan repayments and maturing securities are a relatively predictable source of funds. However, deposit flows, calls of securities and prepayments of loans and mortgage-backed securities are strongly influenced by interest rates, general and local economic conditions and competition in the marketplace. These factors reduce the predictability of these sources of funds.

Our primary investing activity is the origination of loans. We have also purchased investment securities in executing our business strategy to invest some of our excess liquidity in investment securities. Our loans, net of allowance for loan losses, increased $5.0 million during the nine months ended June 30, 2016.

Total deposits increased $5.4 million during the nine months ended June 30, 2016. Deposit flows are affected by the level of interest rates, the interest rates and products offered by competitors and other factors. At June 30, 2016, certificates of deposit scheduled to mature within one year totaled $14.4 million. Our ability to retain these deposits will be determined in part by the interest rates we are willing to pay on such deposits. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before June 30, 2017. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments.

At June 30, 2016, the Bank’s capital levels exceeded the levels required to be considered “well capitalized” under federal regulations.

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans we make.

Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of June 30, 2016, there were no material changes in interest rate risk from the analysis disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on December 23, 2015. The 25 basis point discount rate change on December 17, 2015 was considered in the interest rate risk analysis disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on December 23, 2015.

27

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal 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 the period covered by this report. Based upon such evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

During the period covered by this report, 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.

28

Home Savings Bank 

Part II — Other Information

Item 1. Legal Proceedings

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

Item  1A. Risk Factors

In addition to the other information contained in this Quarterly Report on Form 10-Q, the following risk factor represents material updates and additions to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2015 as filed with the Securities and Exchange Commission. Additional risks not presently known to us, or that we currently deem immaterial, may also adversely affect our business, financial condition or results of operations. Further, to the extent that any of the information contained in this Quarterly Report on Form 10-Q constitutes forward-looking statements, the risk factor set forth below also is a cautionary statement identifying important factors that could cause our actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of us.

A new accounting standard may require us to increase our allowance for loan losses and may have a material adverse effect on our financial condition and results of operations.

The Financial Accounting Standards Board has adopted Accounting Standard Update 2016-13, which will be effective for Home Bancorp Wisconsin, Inc. and Home Savings Bank for the first quarter of the fiscal year ending September 30, 2020. This standard, often referred to as “CECL” (reflecting a current expected credit loss model), will require companies to recognize an allowance for credit losses based on estimates of losses expected to be realized over the contractual lives of the loans. Under current U.S. GAAP, companies generally recognize credit losses only when it is probable that a loss has been incurred as of the balance sheet date. This new standard will require us to collect and review increased types and amounts of data for us to determine the appropriate level of the allowance for loan losses, and may require us to increase our allowance for loan losses. Any increase in our allowance for loan losses or expenses incurred to determine the appropriate level of the allowance for loan losses may have a material adverse effect on our financial condition and results of operations. We are currently evaluating the impact of adopting this standard on our consolidated financial statements.

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

None

Item  3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item  5. Other Information

None.

Item  6. Exhibits

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101 Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Balance Sheets as of June 30, 2016 and September 30, 2015, (ii) the Statements of Income for the three and nine months ended June 30, 2016 and 2015, (iii) the Statements of Comprehensive Income (Loss) for the three and nine months ended June 30, 2016 and 2015, (iv) the Statements of Stockholders’ Equity for the nine months ended June 30, 2016 and 2015, (v) the Statements of Cash Flows for the nine months ended June 30, 2016 and 2015, and (vi) the Notes to the Financial Statements.

29

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.

	HOME BANCORP WISCONSIN, INC.
Date: August 5, 2016	/s/ James R. Bradley
	James R. Bradley
	President and Chief Executive Officer
Date: August 5, 2016	/s/ Mark A. Fritz
	Mark A. Fritz
	Senior Vice President and Chief Financial Officer

 30

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

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

I, James R. Bradley, certify that:

1. 1 have reviewed this Quarterly Report on Form 10-Q of Home Bancorp Wisconsin, 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 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this 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: August 5, 2016	/s/ James R. Bradley
	James R. Bradley
	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, Mark A. Fritz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Home Bancorp Wisconsin, 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 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this 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: August 5, 2016	/s/ Mark A. Fritz
	Mark A. Fritz
	Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

James R. Bradley, President and Chief Executive Officer of Home Bancorp Wisconsin, Inc., (the “Company”) and Mark A. Fritz, Senior Vice President and Chief Financial Officer of the Company, each certify in their capacity as an officer of the Company that they have reviewed the quarterly report on Form 10-Q for the quarter ended June 30, 2016 (the “Report”) and that to the best of their knowledge:

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

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

Date: August 5, 2016	/s/ James R. Bradley
	James R. Bradley
	President and Chief Executive Officer
Date: August 5, 2016	/s/ Mark A. Fritz
	Mark A. Fritz
	Senior Vice President and Chief Financial Officer

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

XML

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document Information [Line Items]
Entity Registrant Name	Home Bancorp Wisconsin, Inc.
Entity Central Index Key	0001578505
Trading Symbol	hwis
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		899,190
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Assets
Cash and due from banks	$ 1,908,000	$ 2,222,000
Interest-bearing deposits	3,714,000	311,000
Cash and cash equivalents	5,622,000	2,533,000
Other interest-bearing deposits	3,627,000	5,011,000
Securities available for sale	1,208,000	2,765,000
Securities held to maturity (fair value of $2,555 and $2,933 for June 30, 2016 and September 30, 2015, respectively)	2,478,000	2,870,000
Loans held for sale	201,000	151,000
Loans, net of allowance for loan losses of $1,492 and $1,478 for June 30, 2016 and September 30, 2015, respectively.	114,891,000	109,860,000
Premises and equipment, net	5,227,000	5,212,000
Foreclosed assets	0	260,000
Cash value of life insurance	3,371,000	3,316,000
Federal Home Loan Bank stock	646,000	646,000
Other assets	909,000	902,000
TOTAL ASSETS	138,180,000	133,526,000
Liabilities:
Demand deposits	33,538,000	30,055,000
Money market and savings deposits	45,119,000	43,105,000
Time deposits	32,422,000	32,560,000
Total deposits	111,079,000	105,720,000
Advance payments by borrowers for taxes and insurance	522,000	793,000
Federal funds purchased	895,000	616,000
Borrowed funds	12,317,000	13,005,000
Other liabilities	1,094,000	1,247,000
Total liabilities	125,907,000	121,381,000
Stockholders’ Equity:
Common stock $0.01 par value, 30,000,000 shares authorized; 899,190 shares issued and outstanding at June 30, 2016 and September 30, 2015	9,000	9,000
Additional paid-in capital	7,404,000	7,407,000
Retained earnings	5,506,000	5,371,000
Unearned Employee Stock Ownership Plan (ESOP) shares	(647,000)	(669,000)
Accumulated other comprehensive income	1,000	27,000
Total stockholders’ equity	12,273,000	12,145,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 138,180,000	$ 133,526,000

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Securities held to maturity, fair value	$ 2,555	$ 2,933
Loans, allowance for loan losses	$ 1,492	$ 1,478
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	899,190	899,190
Common stock, shares outstanding (in shares)	899,190	899,190

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and dividend income:
Loans, including fees	$ 1,173	$ 1,043	$ 3,520	$ 2,965
Interest-bearing deposits		30	50	94
Securities	24	40	76	140
Total interest and dividend income	1,197	1,113	3,646	3,199
Interest expense:
Deposits	90	70	262	201
Borrowed funds	74	57	223	159
Total interest expense	164	127	485	360
Net interest income	1,033	986	3,161	2,839
Provision for loan losses	5	30	15	90
Net interest income after provision for loan losses	1,028	956	3,146	2,749
Noninterest income:
Service fees	67	51	205	163
Mortgage banking income	84	20	168	115
Net gain on sale of securities	2		6	8
Increase in cash value of life insurance	18	19	55	59
Net gain on sale of premises and equipment	15	15	46	47
Rental income	24	24	72	74
Other	17	7	72	25
Total noninterest income	227	136	624	491
Noninterest expense:
Compensation and employee benefits	601	594	1,789	1,787
Occupancy and equipment	186	175	561	560
Data processing and office expense	246	221	704	683
Foreclosed assets, net		195	23	262
Advertising and promotions	33	37	91	96
Professional fees	76	51	197	110
Examinations and assessments	27	30	93	98
Other	66	83	177	218
Total noninterest expense	1,235	1,386	3,635	3,814
Income (loss) before income taxes	20	(294)	135	(574)
Provision for income taxes
Net income (loss)	$ 20	$ (294)	$ 135	$ (574)
Earnings per share:
Basic (in dollars per share)	$ 0.02	$ (0.35)	$ 0.16	$ (0.69)
Dilutive (in dollars per share)	$ 0.02	$ (0.35)	$ 0.16	$ (0.69)

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income (loss)	$ 20,000	$ (294,000)	$ 135,000	$ (574,000)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities during the year	(3,000)	(10,000)	(20,000)	44,000
Reclassification adjustment for gains realized in net income	(2,000)		(6,000)	(8,000)
Income tax effect	0	0
Net unrealized gain (loss) on securities	(5,000)	(10,000)	(26,000)	36,000
Other comprehensive income (loss), net of tax	(5,000)	(10,000)	(26,000)	36,000
Comprehensive income (loss)	$ 15,000	$ (304,000)	$ 109,000	$ (538,000)

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned ESOP Shares [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Sep. 30, 2014	$ 9,000	$ 7,413,000	$ 6,050,000	$ (698,000)	$ (8,000)	$ 12,766,000
Net income (loss)			(574,000)			(574,000)
Allocation of Shares from ESOP		(5,000)		22,000		17,000
Other comprehensive income					36,000	36,000
Balance at June 30, 2015 at Jun. 30, 2015	9,000	7,408,000	5,476,000	(676,000)	28,000	12,245,000
Balance at Sep. 30, 2015	9,000	7,407,000	5,371,000	(669,000)	27,000	12,145,000
Net income (loss)			135,000			135,000
Allocation of Shares from ESOP		(3,000)		22,000		19,000
Other comprehensive income					(26,000)	(26,000)
Balance at June 30, 2015 at Jun. 30, 2016	$ 9,000	$ 7,404,000	$ 5,506,000	$ (647,000)	$ 1,000	$ 12,273,000

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - shares	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Unearned ESOP Shares [Member]
Shares committed to be released and allocated to participants (in shares)	2,158	2,158

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 135,000	$ (574,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	178,000	189,000
Net amortization of premiums and discounts	15,000	26,000
Employee Stock Ownership Plan (ESOP), Compensation Expense	19,000	17,000
Provision for loan losses	15,000	90,000
Net gain on sale of securities	(6,000)	(8,000)
Gain on sale of premises and equipment	(46,000)	(47,000)
Net loss on foreclosed assets	23,000	242,000
Increase in cash surrender value	(55,000)	(59,000)
Changes in operating assets and liabilities:
Loans held for sale	(50,000)	270,000
Other assets	(7,000)	(158,000)
Other liabilities	(107,000)	174,000
Total adjustments	(21,000)	736,000
Net cash provided by operating activities	114,000	162,000
Cash flows from investing activities:
Net decrease in other interest-bearing deposits	1,384,000	1,490,000
Proceeds from sales of securities available for sale	1,208,000	836,000
Proceeds from maturities, prepayments, and calls of securities available for sale	317,000	2,696,000
Proceeds from maturities, prepayments, and calls of securities held to maturity	389,000	377,000
Net (increase) decrease in loans	(5,046,000)	(16,398,000)
Proceeds from sale of foreclosed assets	237,000	483,000
Capital expenditures	(193,000)	(35,000)
Net cash used in investing activities	(1,704,000)	(10,551,000)
Cash flows from financing activities:
Net increase in deposits	5,359,000	7,395,000
Net decrease in advance payments by borrowers for taxes and insurance	(271,000)	(282,000)
Net increase (decrease) in federal funds purchased	279,000	(1,388,000)
Proceeds from borrowings	4,000,000	8,900,000
Repayments of borrowed funds	(4,688,000)	(5,023,000)
Net cash provided by financing activities	4,679,000	9,602,000
Net increase (decrease) in cash and cash equivalents	3,089,000	(787,000)
Cash and cash equivalents at beginning	2,533,000	4,047,000
Cash and cash equivalents at end	5,622,000	3,260,000
Supplemental cash flow information:
Cash paid for interest	481,000	367,000
Noncash operating and investing activities:
Loans transferred to foreclosed assets		$ 239,000

XML

Note 1 - Basis of Financial Statement Presentation

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

Note 1 Basis of Financial Statement Presentation

The accompanying consolidated financial statements include the accounts of Home Bancorp Wisconsin, Inc. and its wholly-owned subsidiary, Home Savings Bank, the “Bank,” and collectively, (the “Company”).

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and with instructions for Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ from these estimates.

In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the financial condition of the Company as of June 30, 2016 and September 30, 2015, and the results of its operations and comprehensive income (loss) for the three and nine months ended June 30, 2016 and 2015, and the statements of stockholders’ equity and cash flows for the nine months ended June 30, 2016 and 2015. These financial statements should be read in conjunction with the financial statements of the Company for the year ended September 30, 2015 included as part of Home Bancorp Wisconsin, Inc.’s Form 10-K dated December 23, 2015 as filed with the Securities and Exchange Commission.

The results of operations for the three and nine month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire year. For further information, refer to the financial statements and footnotes thereto in the Annual Report on Form 10-K.

XML

Note 2 - New Accounting Pronouncements

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 2 New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 “Credit Losses (Topic 326).” ASU 2016-13 requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. For Securities and Exchange Commission (SEC) filers, the new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently assessing the impact of adopting ASU 2016-13 on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09 “

Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting.”

ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election for forfeitures as they occur. The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The Company is currently assessing the impact of adopting ASU 2016-09 on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 “

Leases (Topic 842).”

ASU 2016-02 establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with certain practical expedients available. Early adoption is permitted. The Company is currently assessing the impact of adopting ASU 2016-02 on its consolidated financial statements.

In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard makes a number of changes to the recognition and measurement standards of financial instruments, including the following changes: 1) equity securities with a readily determinable fair value will have to be measured at fair value with changes in fair value recognized in net income; 2) entities that are public business entities will no longer be required to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost; and 3) entities that are public business entities will be required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. This new standard is effective for consolidated financial statements issued for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The adoption of this

new standard is not expected to have a material impact on our financial condition or results of operations

, except that the Company will no longer disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost.

In April 2015, FASB issued ASU No. 2015-03, Interest-Imputation of Interest (subtopic 835-30): Simplify the Presentation of Debt Issuance Costs. The primary purpose of this new guidance is to present debt issuance costs as a direct deduction from the carrying amount of the debt liability. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company adopted this guidance for the December 31, 2015 reporting period. Adoption of this standard did not have a significant impact on the consolidated financial statements or the Notes thereto.

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendment supersedes and replaces nearly all existing revenue recognition guidance. Under the amended guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual and interim periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. In August 2015, FASB issued ASU No. 2015-14 Revenue from Contracts with Customer (Topic 606), Deferral of the Effective Date. The amendment defers the effective date of ASU No. 2014-09 by one year. Adoption of ASU No. 2014-04 and ASU 2015-14 is not expected to have a material impact on the consolidated financial statements, but significant disclosures to the Notes thereto will be required.

XML

Note 3 - Earnings Per Share

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 3 Earnings Per Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, including allocated and committed-to-be-released ESOP shares, during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share:

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Nine Months Ended June 30, 2016			Nine Months Ended June 30, 2015
Net income (loss)	$	20		$	(294	)	$	135		$	(574	)
Basic potential common shares:
Weighted average shares outstanding		899,190			899,190			899,190			899,190
Weighted average unallocated Employee Stock Ownership Plan shares		(65,101	)		(67,979	)		(65,820	)		(68,698	)
Basic weighted average shares outstanding		834,089			831,211			833,370			830,492
Dilutive potential common shares		—			—			—			—
Dilutive weighted average shares outstanding		834,089			831,211			833,370			830,492
Basic earnings per share	$	.02		$	(.35	)	$	.16		$	(.69	)
Diluted earnings per share	$	.02		$	(.35	)	$	.16		$	(.69	)

XML

Note 4 - Securities

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 4 Securities

The amortized cost and estimated fair value of securities with gross unrealized gains and losses are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2016
Securities available for sale:
U.S. agency pass-through	$	1,207	$	4	$	(3	)	$	1,208
Securities held to maturity:
U.S. agency pass-through	$	2,478	$	77	$	—		$	2,555
September 30, 2015
Securities available for sale:
U.S. agency pass-through	$	2,738	$	27	$	—		$	2,765
Securities held to maturity:
U.S. agency pass-through	$	2,870	$	63	$	—		$	2,933

Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in the estimated fair value. At June 30, 2016, three U.S. agency pass-through securities available for sale with fair values totaling $568 were in an unrealized loss position totaling $3. These securities have been in an unrealized loss position for less than 12 months. The fair values are expected to recover as the securities approach their maturity dates. The Company does not believe the securities are impaired due to reasons of credit quality.

XML

Note 5 - Loans

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Financing Receivables [Text Block]

Note 5 Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, generally are reported at their outstanding unpaid principal balances adjusted for charge-offs and the allowance for loan losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication the borrower may be unable to make payments as they become due. When loans are placed on nonaccrual or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses is maintained at the level considered adequate by management to provide for losses that are probable. The allowance for loan losses is established through a provision for loan losses charged to expense as losses are estimated to have occurred. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.

Management regularly evaluates the allowance for loan losses using the Company’s past loan loss experience, known and inherent risks in the portfolio, composition of the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change.

A loan is impaired when, based on current information, it is probable that the Bank will not collect all amounts due in accordance with the contractual terms of the loan agreement. Management determines whether a loan is impaired on a case-by-case basis, taking into consideration the payment status, collateral value, length and reason of any payment delays, the borrower’s prior payment record, and any other relevant factors. Large groups of smaller-balance homogeneous loans, such as residential mortgage and consumer loans, are collectively evaluated in the allowance for loan losses analysis and are not subject to impairment analysis unless such loans have been subject to a restructuring agreement. Specific allowances for impaired loans are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent.

In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require additions to the allowance for loan losses based on their judgments of collectability.

The following table presents total loans by portfolio segment and class of loan as of June 30, 2016 and September 30, 2015:

	June 30, 2016			September 30, 2015
Commercial:
Commercial business	$	1,913		$	2,182
Commercial real estate		19,402			19,595
Multifamily real estate		29,532			25,224
Construction		4,051			5,179
Residential real estate:
One- to four-family residential		50,364			48,284
Second mortgage		9,395			9,668
Consumer		2,232			2,311
Subtotals		116,889			112,443
Allowance for loan losses		(1,492	)		(1,478	)
Net deferred loan expenses		(72	)		(51	)
Undisbursed loan proceeds		(434	)		(1,054	)
Loans, net	$	114,891		$	109,860

Analysis of the allowance for loan losses for the three and nine months ended June 30, 2016 and 2015 follows:

	Commercial			Residential			Consumer			Totals
Three Months Ended
Balance at March 31, 2015	$	916		$	507		$	28		$	1,451
Provision for loan losses		19			8			3			30
Loans charged off		—			(21	)		—			(21	)
Recoveries of loans previously charged off		—			1			1			2
Balance at June 30, 2015	$	935		$	495		$	32		$	1,462
Balance at March 31, 2016	$	862		$	599		$	26		$	1,487
Provision for loan losses		(3	)		10			(2	)		5
Loans charged off		—			—			(1	)		(1	)
Recoveries of loans previously charged off		—			—			1			1
Balance at June 30, 2016	$	859		$	609		$	24		$	1,492

	Commercial			Residential			Consumer			Totals
Nine Months Ended
Balance at September 30, 2014	$	877		$	504		$	22		$	1,403
Provision for loan losses		58			11			21			90
Loans charged off		—			(21	)		(15	)		(36	)
Recoveries of loans previously charged off		—			1			4			5
Balance at June 30, 2015	$	935		$	495		$	32		$	1,462
Balance at September 30, 2015	$	930		$	522		$	26		$	1,478
Provision for loan losses		(71	)		87			(1	)		15
Loans charged off		—			—			(5	)		(5	)
Recoveries of loans previously charged off		—			—			4			4
Balance at June 30, 2016	$	859		$	609		$	24		$	1,492

	Commercial		Residential		Consumer		Totals
Allowance for loan losses at June 30, 2016:
Individually evaluated for impairment	$	165	$	27	$	—	$	192
Collectively evaluated for impairment		694		582		24		1,300
Totals	$	859	$	609	$	24	$	1,492
Allowance for loan losses at September 30, 2015:
Individually evaluated for impairment	$	142	$	34	$	—	$	176
Collectively evaluated for impairment		788		488		26		1,302
Totals	$	930	$	522	$	26	$	1,478

Analysis of loans evaluated for impairment as of June 30, 2016 and September 30, 2015, follows:

	Commercial		Residential		Consumer		Totals
Loans at June 30, 2016:
Individually evaluated for impairment	$	803	$	777	$	—	$	1.580
Collectively evaluated for impairment		54,095		58,982		2,232		115,309
Totals	$	54,898	$	59,759	$	2,232	$	116,889
Loans at September 30, 2015:
Individually evaluated for impairment	$	847	$	845	$	—	$	1,692
Collectively evaluated for impairment		51,333		57,107		2,311		110,751
Totals	$	52,180	$	57,952	$	2,311	$	112,443

Information regarding impaired loans as of June 30, 2016, follows:

	Recorded Investment		Principal Balance		Related Allowance		Average Investment		Interest Recognized
Loans with no related allowance for loan losses:
Commercial real estate	$	491	$	491		N/A	$	511	$	23
One-to four-family		609		609		N/A		615		23
Totals		1,100		1,100		N/A		1,126		46
Loans with an allowance for loan losses:
Commercial business		236		236		161		238		5
Construction		76		76		4		76		3
One-to four-family		168		168		27		168		3
Totals		480		480		192		482		11
Grand totals	$	1,580	$	1,580	$	192	$	1,608	$	57

Information regarding impaired loans as of September 30, 2015, follows:

	Recorded Investment		Principal Balance		Related Allowance		Average Investment		Interest Recognized
Loans with no related allowance for loan losses:
Commercial business	$	80	$	800		N/A	$	81	$	—
Commercial real estate		532		5322		N/A		553		33
One-to four-family		473		4733		N/A		470		30
Totals		1,085		1,0855		N/A		1,104		63
Loans with an allowance for loan losses:
Commercial business		158		158		129		159		—
Construction		77		77		13		77		4
One-to four-family		372		372		34		375		22
Totals		607		607		176		611		26
Grand totals	$	1,692	$	1,692	$	176	$	1,715	$	89

No additional funds are committed to be advanced in connection with impaired loans.

The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for loan losses. The credit quality indicators monitored differ depending on the class of loan.

Commercial loans are generally evaluated using the following internally prepared ratings:

“Pass” ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable.

“Special mention/watch” ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable.

“Substandard” ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable.

“Doubtful” ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely.

Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan.

Information regarding the credit quality indicators most closely monitored for commercial loans by class as of June 30, 2016 and September 30, 2015, follows:

	Pass		Special Mention/ Watch		Substandard		Doubtful		Totals
June 30 , 2016
Commercial business	$	1,677	$	—	$	236	$	—	$	1,913
Commercial real estate		17,939		972		491		—		19,402
Multifamily real estate		29,312		220		—		—		29,532
Construction		3,976		75		—		—		4,051
Totals	$	52,904	$	1,267	$	727	$	—	$	54,898
September 30, 2015
Commercial business	$	1,944	$	—	$	238	$	—	$	2,182
Commercial real estate		17,990		1,073		532		—		19,595
Multifamily real estate		25,002		222		—		—		25,224
Construction		5,103		76		—		—		5,179
Totals	$	50,039	$	1,371	$	770	$	—	$	52,180

Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class as of June 30, 2016 and September 30, 2015, follows:

	Performing		Non- performing		Totals
June 30 , 2016
One- to four-family	$	50,233	$	131	$	50,364
Second mortgage		9,371		24		9,395
Consumer		2,232		—		2,232
Totals	$	61,836	$	155	$	61,991
September 30, 2015
One- to four-family	$	48,284	$	—	$	48,284
Second mortgage		9,652		16		9,668
Consumer		2,303		8		2,311
Totals	$	60,239	$	24	$	60,263

Loan aging information as of June 30, 2016, follows:

	Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Past Due Loans
Commercial business	$	—	$	80	$	80
Commercial real estate		—		—		—
Construction		—		—		—
One- to four-family		440		131		571
Second mortgage		—		25		25
Consumer		—		—		—
Totals	$	440	$	236	$	676

	Total Past Due Loans		Total Current Loans		Total Loans		Loans 90+ Days Past Due and Accruing Interest		Total Nonaccrual Loans
Commercial business	$	80	$	1,833	$	1,913	$	—	$	80
Commercial real estate		—		19,402		19,402		—		—
Multifamily real estate		—		29,532		29,532		—		—
Construction		—		4,051		4,051		—		—
One- to four-family		571		49,793		50,364		—		131
Second mortgage		25		9,370		9,395		—		25
Consumer		—		2,232		2,232		—		—
Totals	$	676	$	116,213	$	116,889	$	—	$	236

Loan aging information as of September 30, 2015, follows:

	Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Past Due Loans
Commercial business	$	—	$	80	$	80
Commercial real estate		—		62		62
Multifamily real estate		—		—		—
Construction		—		—		—
One- to four-family		487		—		487
Second mortgage		46		16		62
Consumer		3		8		11
Totals	$	536	$	166	$	702

	Total Past Due Loans		Total Current Loans		Total Loans		Loans 90+ Days Past Due and Accruing Interest		Total Nonaccrual Loans
Commercial business	$	80	$	2,102	$	2,182	$	—	$	80
Commercial real estate		62		19,533		19,595		—		62
Multifamily real estate		—		25,224		25,224		—		—
Construction		—		5,179		5,179		—		—
One- to four-family		487		47,797		48,284		—		—
Second mortgage		62		9,606		9,668		—		16
Consumer		11		2,300		2,311		—		8
Totals	$	702	$	111,741	$	112,443	$	—	$	166

When, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession to the borrower that the Company would not otherwise consider, the modified loan is classified as a troubled debt restructuring. Loan modifications may consist of forgiveness of interest and/or principal, a reduction of the interest rate, interest-only payments for a period of time, and/or extending amortization terms. No new troubled debt restructuring was entered into during the nine months ended June 30, 2016.

During the year ended and as of September 30, 2015, there were three new troubled debt restructurings, $262 on two one-to-four family residential real estate loans and $159 on one commercial business loan.

No troubled debt restructurings defaulted within 12 months of their modification date during the nine months ended June 30, 2016 and one troubled debt restructuring was past due more than 30 days within 12 months of its modification date during the year ended September 30, 2015.

XML

Note 6 - Regulatory Capital Ratios

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 6 Regulatory Capital Ratios

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

Federal and state banking agencies have adopted regulations that substantially amend the capital regulations currently applicable to us. The regulations implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act.

Effective January 1, 2015 (with some changes transitioned into full effectiveness over two to four years), the Bank became subject to new capital requirements adopted by the FDIC. These new requirements create a new required ratio for common equity tier 1 capital, increase the leverage and tier 1 capital ratios, change the risk weight of certain assets for purposes of the risk-based capital ratios, create an additional capital conservation buffer over the required capital ratios and change what qualifies as capital for purposes of meeting these various capital requirements. Beginning in 2016, failure to maintain the required capital conservation buffer will limit the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Company is exempt from consolidated capital requirements as those requirements do not apply to certain small savings bank holding companies with assets under $1 billion.

Under the new capital regulations, the minimum capital ratios are: (1) common equity tier q capital ratio of 4.5% of risk-weighted assets, (2) a tier 1 capital ratio of 6.0% of risk-weighted assets, (3) a total capital ratio of 8.0% of risk-weighted assets, and (4) a tier 1 capital to average assets ratio of 4.0%. Common equity tier 1 capital generally consists of common stock and retained earnings, subject to applicable regulatory adjustments and deductions.

The new requirements also include changes in the risk-weights of assets to better reflect credit risk and other risk exposures. These include a 150% risk weight (increased from 100%) for certain high volatility commercial real estate acquisition, development and construction loans and for non-residential mortgage loans that are 90 days past due or otherwise in non-accrual status; a 20% (increased from 0%) credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable; a 250% risk weight (increased from 100%) for mortgage servicing and deferred tax assets that are not deducted from capital; and increased risk weights (0% to 600%) for equity exposures.

In addition to the minimum common equity tier 1, tier 1 and total capital ratios, the Bank will have to maintain a capital conservation buffer consisting of additional common equity tier 1 capital greater than 2.5% to risk weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This new capital conservation

buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented in January 2019.

The FDIC’s prompt corrective action standards also changed effective January 1, 2015. Under the new standards, in order to be considered well-capitalized, the Bank must have a common equity tier 1 ratio of 6.5% (new), a tier 1 ratio of 8.0% (increased from 6.0%), a total risk-based capital ratio of 10.0% (unchanged) and a leverage ratio of 5.0% (unchanged). The Bank meets all these new requirements, including the full capital conservation buffer.

At June 30, 2016 and September 30, 2015, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since June 30, 2016 that management believes have changed the Bank’s category.

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

	Actual					For Capital Adequacy Purposes						To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
June 30, 2016
Total capital (to risk-weighted assets)	$	12,542		12.5	% >	$	8,054	>		8.0	% >	$	10,068	>		10.0	%
Tier I capital (to risk-weighted assets)		11,282		11.2	% >		6,041	>		6.0	% >		8,054	>		8.0	%
Common equity tier 1 capital (to risk-weighted assets)		11,282		11.2	% >		4,530	>		4.5	% >		6,544	>		6.5	%
Tier I capital (to average assets)		11,282		8.3	% >		5,458	>		4.0	% >		6,822	>		5.0	%
September 30, 2015
Total capital (to risk-weighted assets)	$	12,277		13.5	% >	$	7,275	>		8.0	% >	$	9,094	>		10.0	%
Tier I capital (to risk-weighted assets)		11,136		12.2	% >		5,456	>		6.0	% >		7,275	>		8.0	%
Common equity tier 1 capital (to risk-weighted assets)		11,136		12.2	% >		4,092	>		4.5	% >		5,911	>		6.5	%
Tier I capital (to average assets)		11,136		8.3	% >		5,357	>		4.0	% >		6,697	>		5.0	%

As a state-chartered savings bank, the Bank is required to maintain a minimum net worth ratio. The Bank’s actual and required net worth ratios are as follows:

	Actual Net Worth					Required Net Worth
	Amount		Ratio			Amount		Ratio
June 30, 2016	$	12,542		9.2	%	$	8,291		6.0	%
September 30, 2015		12,277		9.2			8,012		6.0

XML

Note 7 - Fair Value Measurements

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

Note 7 Fair Value Measurements

Accounting standards describe three levels of inputs that may be used to measure fair value (the fair value hierarchy). The level of an asset or liability within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement of that asset or liability.

Following is a brief description of each level of the fair value hierarchy:

Level 1 - Fair value measurement is based on quoted prices for identical assets or liabilities in active markets.

Level 2 - Fair value measurement is based on: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; or (3) valuation models and methodologies for which all significant assumptions are or can be corroborated by observable market data.

Level 3 - Fair value measurement is based on valuation models and methodologies that incorporate at least one significant assumption that cannot be corroborated by observable market data. Level 3 measurements reflect the Company’s estimates about assumptions market participants would use in measuring fair value of the asset or liability.

Some assets and liabilities, such as securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as impaired loans, may be measured at fair value on a nonrecurring basis.

Following is a description of the valuation methodology used for each asset measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset within the fair value hierarchy.

Securities available for sale -

Securities available for sale may be classified as Level 1 or Level 2 measurements within the fair value hierarchy. Level 1 securities include equity securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, corporate debt securities, and mortgage-related securities. The fair value measurement of a Level 2 security is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data.

Loans -

Loans are not measured at fair value on a recurring basis. However, loans considered to be impaired may be measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. All other impaired loan measurements are based on the present value of expected future cash flows discounted at the applicable effective interest rate and, thus, are not fair value measurements. Fair value measurements of underlying collateral that utilize observable market data, such as independent appraisals reflecting recent comparable sales, are considered Level 2 measurements. Other fair value measurements that incorporate estimated assumptions market participants would use to measure fair value are considered Level 3 measurements.

Foreclosed assets -

Real estate and other property acquired through or in lieu of loan foreclosure are not measured at fair value on a recurring basis. However, foreclosed assets are initially measured at fair value (less estimated costs to sell) when they are acquired and may also be measured at fair value (less estimated costs to sell) if they become subsequently impaired. The fair value measurement for each asset may be obtained from an independent firm or prepared internally. Fair value measurements obtained from independent firms are generally based on sales of comparable assets and other observable market data and are considered Level 2 measurements. Fair value measurements prepared internally are based on observable market data but include significant unobservable data and are therefore considered Level 3 measurements.

Information regarding the fair value of assets measured at fair value on a recurring basis as of June 30, 2016 and September 30, 2015 follows:

			Recurring Fair Value Measurements Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2016
Assets - Securities available for sale	$	1,208	$	—	$	1,208	$	—
September 30, 2015
Assets - Securities available for sale	$	2,765	$	—	$	2,765	$	—

Information regarding the fair value of assets measured at fair value on a nonrecurring basis as of June 30, 2016 and September 30, 2015 follows:

			Nonrecurring Fair Value Measurements Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2016
Loans	$	288	$	—	$	—	$	288
Totals	$	288	$	—	$	—	$	288
September 30, 2015
Loans	$	431	$	—	$	—	$	431
Foreclosed assets		260		—		—		260
Totals	$	691	$	—	$	—	$	691

Loans with a carrying amount of $480 and $607 were considered impaired and were written down to their estimated fair value of $288 and $431 as of June 30, 2016 and September 30, 2015, respectively. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $192 and $176 during the nine months ended June 30, 2016 and the year ended September 30, 2015, respectively. The loans were valued based on the value of the underlying collateral, adjusted for selling costs. The fair value of collateral is determined based on appraisals, broker price opinions, or automated valuation models. In some cases, adjustments were made to these values due to various factors including age of the appraisal, age of the comparable and other known changes in the market and in the collateral. When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement.

At September 30, 2015, foreclosed assets with a fair value less estimated costs to sell of $260 were acquired through or in lieu of foreclosure. The fair value of foreclosed assets is determined based on appraisals, broker price opinions, or automated valuation models. In some cases, adjustments were made to these values due to various factors including age of the appraisal, age of the comparable and other known changes in the market and in the collateral. When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement.

The Company estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by the Company to estimate fair value of financial instruments not previously discussed.

Cash and cash equivalents -

Fair value approximates the carrying value.

Other interest-bearing deposits -

Fair value is estimated using discounted cash flow analyses based on current rates for similar types of deposits.

Securities held to maturity -

Fair value is based on quoted market prices where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

Loans held for sale -

Fair value is based on commitments on hand from investors or prevailing market prices.

Loans -

Fair value of variable rate loans that reprice frequently is based on carrying values. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair value of impaired and other nonperforming loans is estimated using discounted expected future cash flows or the fair value of underlying collateral, if applicable.

Federal Home Loan Bank stock -

Fair value is the redeemable (carrying) value based on the redemption provisions of the Federal Home Loan Bank.

Accrued interest receivable and payable -

Fair value approximates the carrying value.

Cash value of life insurance -

Fair value is based on reported values of the assets.

Deposits and advance payments by borrowers for taxes and insurance -

Fair value of deposits with no stated maturity, such as demand deposits, savings, and money market accounts, including advance payments by borrowers for taxes and insurance, by definition, is the amount payable on demand on the reporting date. Fair value of fixed rate time deposits is estimated using discounted cash flows applying interest rates currently being offered on similar time deposits.

Federal funds purchased -

Fair value approximates carrying value.

Borrowed funds -

Fair value of fixed rate, fixed term borrowings is estimated by discounting future cash flows using the current rates at which similar borrowings would be made. Fair value of borrowings with variable rates or maturing within 90 days approximates the carrying value of these borrowings.

Off-balance-sheet instruments -

Fair value is based on quoted market prices of similar financial instruments where available. If a quoted market price is not available, fair value is based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the counterparty’s credit standing. Since the estimated fair value of off-balance-sheet instruments is not material, no amounts are presented in the following schedule.

The carrying value and estimated fair value of financial instruments at June 30, 2016 and September 30, 2015 follow:

	June 30, 2016
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	5,622	$	5,622	$	—	$	—
Other interest-bearing deposits		3,627		—		—		3,630
Securities available for sale		1,208		—		1,208		—
Securities held to maturity		2,478		—		2,555		—
Loans held for sale		201		—		201		—
Loans		114,891		—		—		114,353
Accrued interest receivable		418		418		—		—
Cash value of life insurance		3,371		—		—		3,371
Federal Home Loan Bank stock		646		—		—		646
Financial liabilities:
Deposits	$	111,079	$	78,657	$	—	$	32,473
Advance payments by borrowers for taxes and insurance		522		522		—		—
Federal funds purchased		895		895		—		—
Borrowed funds		12,317		—		—		12,798
Accrued interest payable		59		59		—		—

	September 30, 2015
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	2,533	$	2,533	$	—	$	—
Other interest-bearing deposits		5,011		—		—		5,037
Securities available for sale		2,765		—		2,765		—
Securities held to maturity		2,870		—		2,933		—
Loans held for sale		151		—		151		—
Loans		109,860		—		—		108,713
Accrued interest receivable		395		395		—		—
Cash value of life insurance		3,316		—		—		3,316
Federal Home Loan Bank stock		646		—		—		646
Financial liabilities:
Deposits	$	105,720	$	73,160	$	—	$	32,787
Advance payments by borrowers for taxes and insurance		793		793		—		—
Federal funds purchased		616		616		—		—
Borrowed funds		13,005		—		—		13,475
Accrued interest payable		55		55		—		—

Limitations -

The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based on quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s 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 that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts, nor is it recorded as an intangible asset on the consolidated balance sheets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

XML

Note 8 - Employee Stock Ownership Plan

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 8 Employee Stock Ownership Plan

The Company maintains a leveraged employee stock ownership plan (“ESOP”) that covers substantially all employees. The ESOP was established in conjunction with the Company’s stock offering completed in April 2014. The loan to fund the acquisition of stock by the ESOP was made by the Company. The Bank makes annual contributions to the ESOP equal to the ESOP’s debt service. The ESOP shares initially were pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. Because the debt is intercompany, it is eliminated in consolidation for presentation in these financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet.

As shares are committed to be released from collateral and allocated to active participants, the Company reports compensation expense equal to the current market price of the shares and the shares will become outstanding for earnings-per-shares (EPS) computations. During the nine months ended June 30, 2016, 2,158 shares, with an average fair value of $8.98 per share, were committed to be released resulting in ESOP compensation expense of $19 for the nine months ended June 30, 2016. The ESOP shares as of June 30, 2016 and September 30, 2015 were as follows:

	June 30 , 2016		September 30, 2015
Allocated shares		5,755		2,877
Shares committed to be released and allocated to participants		1,438		2,158
Total unallocated shares		64,742		66,900
Total ESOP shares		71,935		71,935

XML

Note 9 - Subsequent Events

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Subsequent Events [Text Block]

Note 9 Subsequent Events

Management has reviewed operations for potential disclosure of information or financial statement impacts related to events occurring after June 30, 2016 but prior to the release of these financial statements.

Based on the results of this review, no additional subsequent events disclosures or financial statement impacts to the recently completed quarter are required as of the release date.

XML

Note 3 - Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Nine Months Ended June 30, 2016			Nine Months Ended June 30, 2015
Net income (loss)	$	20		$	(294	)	$	135		$	(574	)
Basic potential common shares:
Weighted average shares outstanding		899,190			899,190			899,190			899,190
Weighted average unallocated Employee Stock Ownership Plan shares		(65,101	)		(67,979	)		(65,820	)		(68,698	)
Basic weighted average shares outstanding		834,089			831,211			833,370			830,492
Dilutive potential common shares		—			—			—			—
Dilutive weighted average shares outstanding		834,089			831,211			833,370			830,492
Basic earnings per share	$	.02		$	(.35	)	$	.16		$	(.69	)
Diluted earnings per share	$	.02		$	(.35	)	$	.16		$	(.69	)

XML

Note 4 - Securities (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Marketable Securities [Table Text Block]

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2016
Securities available for sale:
U.S. agency pass-through	$	1,207	$	4	$	(3	)	$	1,208
Securities held to maturity:
U.S. agency pass-through	$	2,478	$	77	$	—		$	2,555
September 30, 2015
Securities available for sale:
U.S. agency pass-through	$	2,738	$	27	$	—		$	2,765
Securities held to maturity:
U.S. agency pass-through	$	2,870	$	63	$	—		$	2,933

XML

Note 5 - Loans (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Loan Portfolio [Table Text Block]

	June 30, 2016			September 30, 2015
Commercial:
Commercial business	$	1,913		$	2,182
Commercial real estate		19,402			19,595
Multifamily real estate		29,532			25,224
Construction		4,051			5,179
Residential real estate:
One- to four-family residential		50,364			48,284
Second mortgage		9,395			9,668
Consumer		2,232			2,311
Subtotals		116,889			112,443
Allowance for loan losses		(1,492	)		(1,478	)
Net deferred loan expenses		(72	)		(51	)
Undisbursed loan proceeds		(434	)		(1,054	)
Loans, net	$	114,891		$	109,860

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Commercial			Residential			Consumer			Totals
Three Months Ended
Balance at March 31, 2015	$	916		$	507		$	28		$	1,451
Provision for loan losses		19			8			3			30
Loans charged off		—			(21	)		—			(21	)
Recoveries of loans previously charged off		—			1			1			2
Balance at June 30, 2015	$	935		$	495		$	32		$	1,462
Balance at March 31, 2016	$	862		$	599		$	26		$	1,487
Provision for loan losses		(3	)		10			(2	)		5
Loans charged off		—			—			(1	)		(1	)
Recoveries of loans previously charged off		—			—			1			1
Balance at June 30, 2016	$	859		$	609		$	24		$	1,492

	Commercial			Residential			Consumer			Totals
Nine Months Ended
Balance at September 30, 2014	$	877		$	504		$	22		$	1,403
Provision for loan losses		58			11			21			90
Loans charged off		—			(21	)		(15	)		(36	)
Recoveries of loans previously charged off		—			1			4			5
Balance at June 30, 2015	$	935		$	495		$	32		$	1,462
Balance at September 30, 2015	$	930		$	522		$	26		$	1,478
Provision for loan losses		(71	)		87			(1	)		15
Loans charged off		—			—			(5	)		(5	)
Recoveries of loans previously charged off		—			—			4			4
Balance at June 30, 2016	$	859		$	609		$	24		$	1,492

	Commercial		Residential		Consumer		Totals
Allowance for loan losses at June 30, 2016:
Individually evaluated for impairment	$	165	$	27	$	—	$	192
Collectively evaluated for impairment		694		582		24		1,300
Totals	$	859	$	609	$	24	$	1,492
Allowance for loan losses at September 30, 2015:
Individually evaluated for impairment	$	142	$	34	$	—	$	176
Collectively evaluated for impairment		788		488		26		1,302
Totals	$	930	$	522	$	26	$	1,478

Schedule of Loans Class, Individually and Collectively Evaluated for Impairment [Table Text Block]

	Commercial		Residential		Consumer		Totals
Loans at June 30, 2016:
Individually evaluated for impairment	$	803	$	777	$	—	$	1.580
Collectively evaluated for impairment		54,095		58,982		2,232		115,309
Totals	$	54,898	$	59,759	$	2,232	$	116,889
Loans at September 30, 2015:
Individually evaluated for impairment	$	847	$	845	$	—	$	1,692
Collectively evaluated for impairment		51,333		57,107		2,311		110,751
Totals	$	52,180	$	57,952	$	2,311	$	112,443

Impaired Financing Receivables [Table Text Block]

	Recorded Investment		Principal Balance		Related Allowance		Average Investment		Interest Recognized
Loans with no related allowance for loan losses:
Commercial real estate	$	491	$	491		N/A	$	511	$	23
One-to four-family		609		609		N/A		615		23
Totals		1,100		1,100		N/A		1,126		46
Loans with an allowance for loan losses:
Commercial business		236		236		161		238		5
Construction		76		76		4		76		3
One-to four-family		168		168		27		168		3
Totals		480		480		192		482		11
Grand totals	$	1,580	$	1,580	$	192	$	1,608	$	57

	Recorded Investment		Principal Balance		Related Allowance		Average Investment		Interest Recognized
Loans with no related allowance for loan losses:
Commercial business	$	80	$	800		N/A	$	81	$	—
Commercial real estate		532		5322		N/A		553		33
One-to four-family		473		4733		N/A		470		30
Totals		1,085		1,0855		N/A		1,104		63
Loans with an allowance for loan losses:
Commercial business		158		158		129		159		—
Construction		77		77		13		77		4
One-to four-family		372		372		34		375		22
Totals		607		607		176		611		26
Grand totals	$	1,692	$	1,692	$	176	$	1,715	$	89

Financing Receivable Credit Quality Indicators [Table Text Block]

	Pass		Special Mention/ Watch		Substandard		Doubtful		Totals
June 30 , 2016
Commercial business	$	1,677	$	—	$	236	$	—	$	1,913
Commercial real estate		17,939		972		491		—		19,402
Multifamily real estate		29,312		220		—		—		29,532
Construction		3,976		75		—		—		4,051
Totals	$	52,904	$	1,267	$	727	$	—	$	54,898
September 30, 2015
Commercial business	$	1,944	$	—	$	238	$	—	$	2,182
Commercial real estate		17,990		1,073		532		—		19,595
Multifamily real estate		25,002		222		—		—		25,224
Construction		5,103		76		—		—		5,179
Totals	$	50,039	$	1,371	$	770	$	—	$	52,180

Financing Receivable Performing and Non Performing [Table Text Block]

	Performing		Non- performing		Totals
June 30 , 2016
One- to four-family	$	50,233	$	131	$	50,364
Second mortgage		9,371		24		9,395
Consumer		2,232		—		2,232
Totals	$	61,836	$	155	$	61,991
September 30, 2015
One- to four-family	$	48,284	$	—	$	48,284
Second mortgage		9,652		16		9,668
Consumer		2,303		8		2,311
Totals	$	60,239	$	24	$	60,263

Past Due Financing Receivables [Table Text Block]

	Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Past Due Loans
Commercial business	$	—	$	80	$	80
Commercial real estate		—		—		—
Construction		—		—		—
One- to four-family		440		131		571
Second mortgage		—		25		25
Consumer		—		—		—
Totals	$	440	$	236	$	676

	Total Past Due Loans		Total Current Loans		Total Loans		Loans 90+ Days Past Due and Accruing Interest		Total Nonaccrual Loans
Commercial business	$	80	$	1,833	$	1,913	$	—	$	80
Commercial real estate		—		19,402		19,402		—		—
Multifamily real estate		—		29,532		29,532		—		—
Construction		—		4,051		4,051		—		—
One- to four-family		571		49,793		50,364		—		131
Second mortgage		25		9,370		9,395		—		25
Consumer		—		2,232		2,232		—		—
Totals	$	676	$	116,213	$	116,889	$	—	$	236

	Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Past Due Loans
Commercial business	$	—	$	80	$	80
Commercial real estate		—		62		62
Multifamily real estate		—		—		—
Construction		—		—		—
One- to four-family		487		—		487
Second mortgage		46		16		62
Consumer		3		8		11
Totals	$	536	$	166	$	702

	Total Past Due Loans		Total Current Loans		Total Loans		Loans 90+ Days Past Due and Accruing Interest		Total Nonaccrual Loans
Commercial business	$	80	$	2,102	$	2,182	$	—	$	80
Commercial real estate		62		19,533		19,595		—		62
Multifamily real estate		—		25,224		25,224		—		—
Construction		—		5,179		5,179		—		—
One- to four-family		487		47,797		48,284		—		—
Second mortgage		62		9,606		9,668		—		16
Consumer		11		2,300		2,311		—		8
Totals	$	702	$	111,741	$	112,443	$	—	$	166

XML

Note 6 - Regulatory Capital Ratios (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

	Actual					For Capital Adequacy Purposes						To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
June 30, 2016
Total capital (to risk-weighted assets)	$	12,542		12.5	% >	$	8,054	>		8.0	% >	$	10,068	>		10.0	%
Tier I capital (to risk-weighted assets)		11,282		11.2	% >		6,041	>		6.0	% >		8,054	>		8.0	%
Common equity tier 1 capital (to risk-weighted assets)		11,282		11.2	% >		4,530	>		4.5	% >		6,544	>		6.5	%
Tier I capital (to average assets)		11,282		8.3	% >		5,458	>		4.0	% >		6,822	>		5.0	%
September 30, 2015
Total capital (to risk-weighted assets)	$	12,277		13.5	% >	$	7,275	>		8.0	% >	$	9,094	>		10.0	%
Tier I capital (to risk-weighted assets)		11,136		12.2	% >		5,456	>		6.0	% >		7,275	>		8.0	%
Common equity tier 1 capital (to risk-weighted assets)		11,136		12.2	% >		4,092	>		4.5	% >		5,911	>		6.5	%
Tier I capital (to average assets)		11,136		8.3	% >		5,357	>		4.0	% >		6,697	>		5.0	%

Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies [Table Text Block]

	Actual Net Worth					Required Net Worth
	Amount		Ratio			Amount		Ratio
June 30, 2016	$	12,542		9.2	%	$	8,291		6.0	%
September 30, 2015		12,277		9.2			8,012		6.0

XML

Note 7 - Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

			Recurring Fair Value Measurements Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2016
Assets - Securities available for sale	$	1,208	$	—	$	1,208	$	—
September 30, 2015
Assets - Securities available for sale	$	2,765	$	—	$	2,765	$	—

Fair Value Measurements, Nonrecurring [Table Text Block]

			Nonrecurring Fair Value Measurements Using
	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2016
Loans	$	288	$	—	$	—	$	288
Totals	$	288	$	—	$	—	$	288
September 30, 2015
Loans	$	431	$	—	$	—	$	431
Foreclosed assets		260		—		—		260
Totals	$	691	$	—	$	—	$	691

Fair Value, by Balance Sheet Grouping [Table Text Block]

	June 30, 2016
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	5,622	$	5,622	$	—	$	—
Other interest-bearing deposits		3,627		—		—		3,630
Securities available for sale		1,208		—		1,208		—
Securities held to maturity		2,478		—		2,555		—
Loans held for sale		201		—		201		—
Loans		114,891		—		—		114,353
Accrued interest receivable		418		418		—		—
Cash value of life insurance		3,371		—		—		3,371
Federal Home Loan Bank stock		646		—		—		646
Financial liabilities:
Deposits	$	111,079	$	78,657	$	—	$	32,473
Advance payments by borrowers for taxes and insurance		522		522		—		—
Federal funds purchased		895		895		—		—
Borrowed funds		12,317		—		—		12,798
Accrued interest payable		59		59		—		—

	September 30, 2015
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	2,533	$	2,533	$	—	$	—
Other interest-bearing deposits		5,011		—		—		5,037
Securities available for sale		2,765		—		2,765		—
Securities held to maturity		2,870		—		2,933		—
Loans held for sale		151		—		151		—
Loans		109,860		—		—		108,713
Accrued interest receivable		395		395		—		—
Cash value of life insurance		3,316		—		—		3,316
Federal Home Loan Bank stock		646		—		—		646
Financial liabilities:
Deposits	$	105,720	$	73,160	$	—	$	32,787
Advance payments by borrowers for taxes and insurance		793		793		—		—
Federal funds purchased		616		616		—		—
Borrowed funds		13,005		—		—		13,475
Accrued interest payable		55		55		—		—

XML

Note 8 - Employee Stock Ownership Plan (Tables)

9 Months Ended

Jun. 30, 2016

Notes Tables

Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block]

	June 30 , 2016		September 30, 2015
Allocated shares		5,755		2,877
Shares committed to be released and allocated to participants		1,438		2,158
Total unallocated shares		64,742		66,900
Total ESOP shares		71,935		71,935

XML

Note 3 - Earnings Per Share - Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income (loss)	$ 20	$ (294)	$ 135	$ (574)
Basic potential common shares:
Weighted average shares outstanding (in shares)	899,190	899,190	899,190	899,190
Weighted average unallocated Employee Stock Ownership Plan shares (in shares)	65,101	67,979	65,820	68,698
Basic weighted average shares outstanding (in shares)	834,089	831,211	833,370	830,492
Dilutive potential common shares (in shares)	0	0	0	0
Dilutive weighted average shares outstanding (in shares)	834,089	831,211	833,370	830,492
Basic earnings per share (in dollars per share)	$ 0.02	$ (0.35)	$ 0.16	$ (0.69)
Diluted earnings per share (in dollars per share)	$ 0.02	$ (0.35)	$ 0.16	$ (0.69)

XML

Note 4 - Securities (Details Textual) - U.S. Agency Pass-through [Member]	9 Months Ended
	Jun. 30, 2016 USD ($)
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year	3
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 568,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 3,000

XML

Note 4 - Securities - Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
U.S. Agency Pass-through [Member]
Securities available for sale, Amortized cost	$ 1,207,000	$ 2,738,000
Securities available for sale, Gross unrealized gains	4,000	27,000
Securities available for sale, Gross unrealized losses	(3,000)
Securities available for sale	1,208,000	2,765,000
Securities held to maturity, Amortized cost	2,478,000	2,870,000
Securities held to maturity, Gross unrealized gains	77,000	63,000
Securities held to maturity, Gross unrealized losses
Securities held to maturity, fair value	2,555,000	2,933,000
Securities available for sale	1,208,000	2,765,000
Securities held to maturity, Amortized cost	2,478,000	2,870,000
Securities held to maturity, fair value	$ 2,555,000	$ 2,933,000

XML

Note 5 - Loans (Details Textual)	9 Months Ended	12 Months Ended
	Jun. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Residential Portfolio Segment [Member] | One-to-four-family Residential [Member]
Financing Receivable, Modifications, Number of Contracts		2
Financing Receivable, Modifications, Recorded Investment		$ 262,000
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts		1
Financing Receivable, Modifications, Recorded Investment		$ 159,000
Loans and Leases Receivable, Impaired, Commitment to Lend	$ 0
Financing Receivable, Modifications, Number of Contracts	0	3
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0	1

XML

Note 5 - Loans - Total Loans by Portfolio Segment and Class of Loan (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Commercial Portfolio Segment [Member] | Commercial Business Loans [Member]
Loans receivable	$ 1,913,000	$ 2,182,000
Commercial Portfolio Segment [Member] | Real Estate Loan [Member]
Loans receivable	19,402,000	19,595,000
Commercial Portfolio Segment [Member] | Multi Family Real Estate [Member]
Loans receivable	29,532,000	25,224,000
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Loans receivable	4,051,000	5,179,000
Commercial Portfolio Segment [Member]
Loans receivable	54,898,000	52,180,000
Allowance for loan losses	(859,000)	(930,000)
Residential Portfolio Segment [Member] | One-to-four-family Residential [Member]
Loans receivable	50,364,000	48,284,000
Residential Portfolio Segment [Member] | Second Mortgage Loan [Member]
Loans receivable	9,395,000	9,668,000
Residential Portfolio Segment [Member]
Loans receivable	59,759,000	57,952,000
Allowance for loan losses	(609,000)	(522,000)
Consumer Portfolio Segment [Member]
Loans receivable	2,232,000	2,311,000
Allowance for loan losses	(24,000)	(26,000)
Loans receivable	116,889,000	112,443,000
Allowance for loan losses	(1,492,000)	(1,478,000)
Net deferred loan expenses	(72,000)	(51,000)
Undisbursed loan proceeds	(434,000)	(1,054,000)
Loans, net	$ 114,891,000	$ 109,860,000

XML

Note 5 - Loans - Analysis of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Commercial Portfolio Segment [Member]
Beginning balance	$ 862	$ 916	$ 930	$ 877
Provision for loan losses	(3)	19	(71)	58
Loans charged off
Recoveries of loans previously charged off
Ending balance	859	935	859	935
Individually evaluated for impairment	165		165		$ 142
Collectively evaluated for impairment	694		694		788
Totals	859		859		930
Residential Portfolio Segment [Member]
Beginning balance	599	507	522	504
Provision for loan losses	10	8	87	11
Loans charged off		(21)		(21)
Recoveries of loans previously charged off		1		1
Ending balance	609	495	609	495
Individually evaluated for impairment	27		27		34
Collectively evaluated for impairment	582		582		488
Totals	609		609		522
Consumer Portfolio Segment [Member]
Beginning balance	26	28	26	22
Provision for loan losses	(2)	3	(1)	21
Loans charged off	(1)		(5)	(15)
Recoveries of loans previously charged off	1	1	4	4
Ending balance	24	32	24	32
Individually evaluated for impairment
Collectively evaluated for impairment	24		24		26
Totals	24		24		26
Beginning balance	1,487	1,451	1,478	1,403
Provision for loan losses	5	30	15	90
Loans charged off	(1)	(21)	(5)	(36)
Recoveries of loans previously charged off	1	2	4	5
Ending balance	1,492	$ 1,462	1,492	$ 1,462
Individually evaluated for impairment	192		192		176
Collectively evaluated for impairment	1,300		1,300		1,302
Totals	$ 1,492		$ 1,492		$ 1,478

XML

Note 5 - Loans - Analysis of Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Commercial Portfolio Segment [Member]
Loans
Individually evaluated for impairment	$ 803	$ 847
Collectively evaluated for impairment	54,095	51,333
Loans receivable	54,898	52,180
Residential Portfolio Segment [Member]
Loans
Individually evaluated for impairment	777	845
Collectively evaluated for impairment	58,982	57,107
Loans receivable	59,759	57,952
Consumer Portfolio Segment [Member]
Loans
Individually evaluated for impairment
Collectively evaluated for impairment	2,232	2,311
Loans receivable	2,232	2,311
Individually evaluated for impairment	1,580	1,692
Collectively evaluated for impairment	115,309	110,751
Loans receivable	$ 116,889	$ 112,443

XML

Note 5 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Commercial Portfolio Segment [Member] | Real Estate Loan [Member]
Loans with no related allowance for loan losses, Recorded Investment	$ 491	$ 532
Loans with no related allowance for loan losses, Principal Balance	491	5,322
Loans with no related allowance for loan losses, Average Investment	511	553
Loans with no related allowance for loan losses, Interest Recognized	23	33
Commercial Portfolio Segment [Member] | Commercial Business Loans [Member]
Loans with no related allowance for loan losses, Recorded Investment		80
Loans with no related allowance for loan losses, Principal Balance		800
Loans with no related allowance for loan losses, Average Investment		81
Loans with no related allowance for loan losses, Interest Recognized
Loans with an allowance for loan losses, Recorded Investment	236	158
Loans with an allowance for loan losses, Principal Balance	236	158
Grand totals, Related Allowance	161	129
Loans with an allowance for loan losses, Average Investment	238	159
Loans with an allowance for loan losses, Interest Recognized	5
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Loans with an allowance for loan losses, Recorded Investment	76	77
Loans with an allowance for loan losses, Principal Balance	76	77
Grand totals, Related Allowance	4
Loans with an allowance for loan losses, Average Investment	76	77
Loans with an allowance for loan losses, Interest Recognized	3	4
Residential Portfolio Segment [Member] | One-to-four-family Residential [Member]
Loans with no related allowance for loan losses, Recorded Investment	609	473
Loans with no related allowance for loan losses, Principal Balance	609	4,733
Loans with no related allowance for loan losses, Average Investment	615	470
Loans with no related allowance for loan losses, Interest Recognized	23	30
Loans with an allowance for loan losses, Recorded Investment	168	372
Loans with an allowance for loan losses, Principal Balance	168
Grand totals, Related Allowance	27	34
Loans with an allowance for loan losses, Average Investment	168	375
Loans with an allowance for loan losses, Interest Recognized	3	22
Commercial Real Estate Portfolio Segment [Member] | One-to-four-family Residential [Member]
Loans with an allowance for loan losses, Principal Balance		372
Construction Loans [Member]
Grand totals, Related Allowance		13
Loans with no related allowance for loan losses, Recorded Investment	1,100	1,085
Loans with no related allowance for loan losses, Principal Balance	1,100	10,855
Loans with no related allowance for loan losses, Average Investment	1,126	1,104
Loans with no related allowance for loan losses, Interest Recognized	46	63
Loans with an allowance for loan losses, Recorded Investment	480	607
Loans with an allowance for loan losses, Principal Balance	480	607
Grand totals, Related Allowance	192	176
Loans with an allowance for loan losses, Average Investment	482	611
Loans with an allowance for loan losses, Interest Recognized	11	26
Grand totals, Recorded Investment	1,580	1,692
Grand totals, Principal Balance	1,580	1,692
Grand totals, Average Investment	1,608	1,715
Grand totals, Interest Recognized	$ 57	$ 89

XML

Note 5 - Loans - Credit Quality Indicators for Commercial Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Commercial Business Loans [Member] | Commercial Portfolio Segment [Member] | Pass [Member]
Loans receivable	$ 1,677	$ 1,944
Commercial Business Loans [Member] | Commercial Portfolio Segment [Member] | Substandard [Member]
Loans receivable	236	238
Commercial Business Loans [Member] | Commercial Portfolio Segment [Member]
Loans receivable	1,913	2,182
Real Estate Loan [Member] | Commercial Portfolio Segment [Member] | Pass [Member]
Loans receivable	17,939	17,990
Real Estate Loan [Member] | Commercial Portfolio Segment [Member] | Substandard [Member]
Loans receivable	491	532
Real Estate Loan [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans receivable	972	1,073
Real Estate Loan [Member] | Commercial Portfolio Segment [Member]
Loans receivable	19,402	19,595
Multi Family Real Estate [Member] | Commercial Portfolio Segment [Member] | Pass [Member]
Loans receivable	29,312	25,002
Multi Family Real Estate [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans receivable	220	222
Multi Family Real Estate [Member] | Commercial Portfolio Segment [Member]
Loans receivable	29,532	25,224
Construction Loans [Member] | Commercial Portfolio Segment [Member] | Pass [Member]
Loans receivable	3,976	5,103
Construction Loans [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans receivable	75	76
Construction Loans [Member] | Commercial Portfolio Segment [Member]
Loans receivable	4,051	5,179
Commercial Portfolio Segment [Member] | Pass [Member]
Loans receivable	52,904	50,039
Commercial Portfolio Segment [Member] | Substandard [Member]
Loans receivable	727	770
Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans receivable	1,267	1,371
Commercial Portfolio Segment [Member]
Loans receivable	54,898	52,180
Loans receivable	$ 116,889	$ 112,443

XML

Note 5 - Loans - Credit Quality Indicators for Residential Real Estate and Consumer Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Performing Financial Instruments [Member] | Residential Real Estate Loans [Member] | One-to-four-family Residential [Member]
Loans receivable	$ 50,233	$ 48,284
Performing Financial Instruments [Member] | Residential Real Estate Loans [Member] | Second Mortgage Loan [Member]
Loans receivable	9,371	9,652
Performing Financial Instruments [Member] | Consumer Portfolio Segment [Member]
Loans receivable	2,232	2,303
Performing Financial Instruments [Member] | Residential Real Estate and Consumer Loans [Member]
Loans receivable	61,836	60,239
Nonperforming Financial Instruments [Member] | Residential Real Estate Loans [Member] | One-to-four-family Residential [Member]
Loans receivable	131
Nonperforming Financial Instruments [Member] | Residential Real Estate Loans [Member] | Second Mortgage Loan [Member]
Loans receivable	24	16
Nonperforming Financial Instruments [Member] | Consumer Portfolio Segment [Member]
Loans receivable		8
Nonperforming Financial Instruments [Member] | Residential Real Estate and Consumer Loans [Member]
Loans receivable	155	24
Residential Real Estate Loans [Member] | One-to-four-family Residential [Member]
Loans receivable	50,364	48,284
Residential Real Estate Loans [Member] | Second Mortgage Loan [Member]
Loans receivable	9,395	9,668
Consumer Portfolio Segment [Member]
Loans receivable	2,232	2,311
Residential Real Estate and Consumer Loans [Member]
Loans receivable	61,991	60,263
Loans receivable	$ 116,889	$ 112,443

XML

Note 5 - Loans - Loan Aging Information (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Commercial Portfolio Segment [Member] | Commercial Business Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Total Past Due Loans
Commercial Portfolio Segment [Member] | Commercial Business Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due Loans	$ 80	80
Commercial Portfolio Segment [Member] | Commercial Business Loans [Member]
Total Past Due Loans	80	80
Total Current Loans	1,833	2,102
Total Loans	1,913	2,182
Total Nonaccrual Loans	80	80
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due Loans		62
Commercial Portfolio Segment [Member] | Real Estate Loan [Member]
Total Past Due Loans		62
Total Current Loans	19,402	19,533
Total Loans	19,402	19,595
Total Nonaccrual Loans		62
Commercial Portfolio Segment [Member] | Multi Family Real Estate [Member]
Total Current Loans	29,532	25,224
Total Loans	29,532	25,224
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Total Current Loans	4,051	5,179
Total Loans	4,051	5,179
Commercial Portfolio Segment [Member]
Total Loans	54,898	52,180
Residential Portfolio Segment [Member] | One-to-four-family Residential [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Total Past Due Loans	440	487
Residential Portfolio Segment [Member] | One-to-four-family Residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due Loans	131
Residential Portfolio Segment [Member] | One-to-four-family Residential [Member]
Total Past Due Loans	571	487
Total Current Loans	49,793	47,797
Total Loans	50,364	48,284
Total Nonaccrual Loans	131
Loans 90+ Days Past Due and Accruing Interest
Residential Portfolio Segment [Member] | Second Mortgage Loan [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Total Past Due Loans		46
Residential Portfolio Segment [Member] | Second Mortgage Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due Loans	25	16
Residential Portfolio Segment [Member] | Second Mortgage Loan [Member]
Total Past Due Loans	25	62
Total Current Loans	9,370	9,606
Total Loans	9,395	9,668
Total Nonaccrual Loans	25	16
Residential Portfolio Segment [Member]
Total Loans	59,759	57,952
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Total Past Due Loans		3
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due Loans		8
Consumer Portfolio Segment [Member]
Total Past Due Loans		11
Total Current Loans	2,232	2,300
Total Loans	2,232	2,311
Total Nonaccrual Loans		8
Financing Receivables, 30 to 89 Days Past Due [Member]
Total Past Due Loans	440	536
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due Loans	236	166
Total Past Due Loans	676	702
Total Current Loans	116,213	111,741
Total Loans	116,889	112,443
Total Nonaccrual Loans	236	$ 166
Loans 90+ Days Past Due and Accruing Interest

XML

Note 6 - Regulatory Capital Ratios (Details Textual)	Jun. 30, 2016	Sep. 30, 2015	Dec. 31, 2014
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%
Risk Weighted Assets, High Volatility Loans	150.00%		100.00%
Risk Weighted Assets Credit Conversion Factor	20.00%		0.00%
Risk Weighed Assets, Mortgage Servicing and Deferred Tax Assets	250.00%		100.00%
Risk Weighted Assets, Equity Exposures	600.00%		0.00%
Additional Common Equity Tier One Capital Ratio, Full Implementation	2.50%
Additional Common Equity Tier One Capital Ratio, Initial Phase	0.625%
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%	6.00%
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%

XML

Note 6 - Regulatory Capital Ratios - Bank's Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015	Dec. 31, 2014
Minimum [Member]
Total capital (to risk-weighted assets), actual ratio	12.50%	13.50%
Total capital (to risk-weighted assets), for capital adequacy purpose amount	$ 8,054	$ 7,275
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount	$ 10,068	$ 9,094
Tier I capital (to risk-weighted assets), actual ratio	11.20%	12.20%
Tier I capital (to risk-weighted assets), for capital adequacy purpose amount	$ 6,041	$ 5,456
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier I capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount	$ 8,054	$ 7,275
Tier I capital (to average assets), actual ratio	8.30%	8.30%
Tier I capital (to average assets), for capital adequacy purpose amount	$ 5,458	$ 5,357
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier I capital (to average assets), to be well capitalized under prompt corrective action provisions amount	$ 6,822	$ 6,697
Total capital (to risk-weighted assets), actual amount	$ 12,542	$ 12,277
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier I capital (to risk-weighted assets), actual amount	$ 11,282	$ 11,136
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%	6.00%
Common equity tier 1 capital (to risk-weighted assets)	$ 11,282	$ 11,136
Common equity tier 1 capital (to risk-weighted assets)	11.20%	12.20%
Common equity tier 1 capital (to risk-weighted assets)	$ 4,530	$ 4,092
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Common equity tier 1 capital (to risk-weighted assets)	$ 6,544	$ 5,911
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Tier I capital (to average assets), actual amount	$ 11,282	$ 11,136
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%

XML

Note 6 - Regulatory Capital Ratios - Bank's Actual and Required Net Worth Ratios (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Actual Net Worth, Amount	$ 12,542	$ 12,277
Actual Net Worth, Ratio	9.20%	9.20%
Required Net Worth, Amount	$ 8,291	$ 8,012
Required Net Worth, Ratio	6.00%	6.00%

XML

Note 7 - Fair Value Measurements (Details Textual) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Loans Receivable [Member]
Assets, Fair Value Disclosure, Nonrecurring	$ 288,000	$ 431,000
Impaired Financing Receivable, with Related Allowance, Recorded Investment	480,000	607,000
Assets, Fair Value Disclosure, Nonrecurring	288,000	691,000
Impaired Financing Receivable, Related Allowance	192,000	176,000
Repossessed Assets	$ 0	$ 260,000

XML

Note 7 - Fair Value Measurements - Fair Value of Assets Measured at Fair Value on a Recurring Basis (Details) - Available-for-sale Securities [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Fair Value, Inputs, Level 2 [Member]
Assets - Securities available for sale	$ 1,208	$ 2,765
Assets - Securities available for sale	$ 1,208	$ 2,765

XML

Note 7 - Fair Value Measurements - Fair Value of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Loans Receivable [Member] | Fair Value, Inputs, Level 1 [Member]
Nonrecurring fair value measurements
Loans Receivable [Member] | Fair Value, Inputs, Level 2 [Member]
Nonrecurring fair value measurements
Loans Receivable [Member] | Fair Value, Inputs, Level 3 [Member]
Nonrecurring fair value measurements	288	431
Loans Receivable [Member]
Nonrecurring fair value measurements	288	431
Foreclosed Assets [Member] | Fair Value, Inputs, Level 1 [Member]
Nonrecurring fair value measurements
Foreclosed Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Nonrecurring fair value measurements
Foreclosed Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Nonrecurring fair value measurements		260
Foreclosed Assets [Member]
Nonrecurring fair value measurements		260
Fair Value, Inputs, Level 1 [Member]
Nonrecurring fair value measurements
Fair Value, Inputs, Level 2 [Member]
Nonrecurring fair value measurements
Fair Value, Inputs, Level 3 [Member]
Nonrecurring fair value measurements	288	691
Nonrecurring fair value measurements	$ 288	$ 691

XML

Note 7 - Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and cash equivalents	$ 5,622,000	$ 2,533,000
Other interest-bearing deposits
Securities available for sale
Securities held to maturity
Loans held for sale
Loans
Accrued interest receivable	418,000	395,000
Cash value of life insurance
Federal Home Loan Bank stock
Financial liabilities:
Deposits	78,657,000	73,160,000
Advance payments by borrowers for taxes and insurance	522,000	793,000
Federal funds purchased	895,000	616,000
Borrowed funds
Accrued interest payable	59,000	55,000
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Cash and cash equivalents
Other interest-bearing deposits
Securities available for sale	1,208,000	2,765,000
Securities held to maturity	2,555,000	2,933,000
Loans held for sale	201,000	151,000
Loans
Accrued interest receivable
Cash value of life insurance
Federal Home Loan Bank stock
Financial liabilities:
Deposits
Advance payments by borrowers for taxes and insurance
Federal funds purchased
Borrowed funds
Accrued interest payable
Fair Value, Inputs, Level 3 [Member]
Financial assets:
Cash and cash equivalents
Other interest-bearing deposits	3,630,000	5,037,000
Securities available for sale
Securities held to maturity
Loans held for sale
Loans	114,353,000	108,713,000
Accrued interest receivable
Cash value of life insurance	3,371,000	3,316,000
Federal Home Loan Bank stock	646,000	646,000
Financial liabilities:
Deposits	32,473,000	32,787,000
Advance payments by borrowers for taxes and insurance
Federal funds purchased
Borrowed funds	12,798,000	13,475,000
Accrued interest payable
Cash and cash equivalents	5,622,000	2,533,000	$ 3,260,000	$ 4,047,000
Other interest-bearing deposits	3,627,000	5,011,000
Securities available for sale	1,208,000	2,765,000
Securities held to maturity	2,478,000	2,870,000
Loans held for sale	201,000	151,000
Loans	114,891,000	109,860,000
Accrued interest receivable	418,000	395,000
Cash value of life insurance	3,371,000	3,316,000
Federal Home Loan Bank stock	646,000	646,000
Deposits	111,079,000	105,720,000
Advance payments by borrowers for taxes and insurance	522,000	793,000
Federal funds purchased	895,000	616,000
Borrowed funds	12,317,000	13,005,000
Accrued interest payable	$ 59,000	$ 55,000

XML

Note 8 - Employee Stock Ownership Plan (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Shares Issued With Average Fair Value $8.98 [Member]
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares	2,158
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares	1,438		2,158
Employee Stock Ownership Plan, ESOP, Shares Committed to Be Released Weighted Average Fair Value per Share	$ 8.98
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 19	$ 17

XML

Note 8 - Employee Stock Ownership Plan - Employee Stock Ownership Plan (Details) - shares	Jun. 30, 2016	Sep. 30, 2015
Allocated shares (in shares)	5,755	2,877
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares	1,438	2,158
Total unallocated shares (in shares)	64,742	66,900
Total ESOP shares (in shares)	71,935	71,935