10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _______________

Commission File No. 000-55356

          MW BANCORP, INC.          

(Exact name of registrant as specified in its charter)

Maryland	47-2259704
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)
2110 Beechmont Avenue
Cincinnati, Ohio	45230
(Address of principal	(Zip Code)
executive office)

(513) 231-7871

(Registrant’s telephone number, including area code)

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 filing requirements for the past 90 days.

Yes x       No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x 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 ¨     Smaller reporting company x

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

Yes ¨    No  x 

As of February 16, 2016, the latest practicable date, 876,163 shares of the registrant’s common stock, $.01 par value, were issued and outstanding.

MW Bancorp, Inc.

Index to Quarterly Report on Form 10-Q

PART I – FINANCIAL INFORMATION
Item 1 Interim Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets as of December 31, 2015 and June 30, 2015	3
Condensed Consolidated Statements of Income for the Three and Six Months Ended December 31, 2015 and 2014	4
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended December 31, 2015 and 2014	5
Condensed Consolidated Statements of Shareholders’ Equity for the Six Months Ended December 31, 2015 and 2014	6
Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2015 and 2014	7
Notes to Condensed Consolidated Financial Statements	8
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3 Quantitative and Qualitative Disclosures About Market Risk	48
Item 4 Controls and Procedures	48
PART II – OTHER INFORMATION
Item 1  Legal Proceedings	49
Item 1A  Risk Factors	49
Item 2  Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3  Defaults Upon Senior Securities	49
Item 4  Mine Safety Disclosures	49
Item 5  Other Information	49
Item 6  Exhibits	49
SIGNATURES	50

2

Part I – Financial Information

Item 1. Financial Statements

MW Bancorp, Inc.

Condensed Consolidated Balance Sheets

December 31, 2015 and June 30, 2015

(In thousands, except share data)

	December 31,			June 30,
	2015			2015
	(Unaudited)
Assets
Cash and due from banks	$	105		$	88
Interest-bearing demand deposits		8,168			3,577
Cash and cash equivalents		8,273			3,665
Interest-bearing time deposits in other financial institutions		2,100			3,100
Available-for-sale securities		3,848			4,295
Held-to-maturity securities (fair value of $1,209 at December 31, 2015 and $1,480 at June 30, 2015)		1,272			1,551
Loans held for sale		5,408			-
Loans, net of allowance for loan losses of $1,620 at December 31, 2015 and $1,602 at June 30, 2015		92,190			88,878
Premises and equipment, net		1,064			322
Federal Home Loan Bank stock, at cost		1,164			1,164
Foreclosed assets, net		112			104
Accrued interest receivable		284			245
Bank owned life insurance		3,421			3,375
Other assets		93			130
Total assets	$	119,229		$	106,829
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand and money market	$	27,823		$	16,467
Savings		9,148			8,609
Time		42,761			43,448
Total deposits		79,732			68,524
Federal Home Loan Bank advances		23,085			22,360
Other liabilities		642			275
Total liabilities		103,459			91,159
Commitments and Contigent Liabilities		-			-
Shareholders' Equity
Preferred stock - authorized 1,000,000 shares, $0.01 par value, none issued		-			-
Common stock - authorized 30,000,000 shares, $0.01 par value, 876,163 shares issued and outstanding		9			9
Additional paid-in capital		7,400			7,386
Shares acquired by ESOP		(666	)		(701	)
Retained earnings		9,137			9,067
Accumulated other comprehensive loss		(110	)		(91	)
Total shareholders' equity		15,770			15,670
Total liabilities and shareholders' equity	$	119,229		$	106,829

See Notes to Condensed Consolidated Financial Statements

3

MW Bancorp, Inc.

Condensed Consolidated Statements of Income

For the Three and Six Months Ended December 31, 2015 and 2014

(In thousands, except share data)

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
	(Unaudited)
Interest Income
Loans, including fees	$	937	$	792	$	1,842	$	1,534
Taxable securities		24		31		51		55
Interest-bearing deposits		32		30		64		54
Total interest income		993		853		1,957		1,643
Interest Expense
Deposits		222		172		430		350
Federal Home Loan Bank advances		85		74		166		138
Total interest expense		307		246		596		488
Net Interest Income		686		607		1,361		1,155
Provision for Loan Losses		8		15		13		30
Net Interest Income After Provision for Loan Losses		678		592		1,348		1,125
Noninterest Income
Gain on sale of loans		7		18		52		27
Gain on sale of foreclosed assets, net		-		17		-		18
Income from Bank owned life insurance		23		24		46		47
Other operating		14		6		24		13
Total noninterest income		44		65		122		105
Noninterest Expense
Salaries, employee benefits and directors fees		401		355		784		690
Occupancy and equipment		51		33		89		66
Data processing		33		11		66		40
Franchise taxes		13		21		32		38
FDIC insurance premiums		18		18		35		37
Professional services		81		56		193		125
Advertising		12		5		34		22
Office supplies		15		7		26		14
Business entertainment		9		12		22		16
Other		66		58		119		103
Total noninterest expense		699		576		1,400		1,151
Income Before Federal Income Taxes		23		81		70		79
Federal Income Taxes		-		-		-		-
Net Income	$	23	$	81	$	70	$	79
Earnings per share - basic and diluted	$	0.03		N/A	$	0.09		N/A
Weighted-average shares outstanding - basic and diluted		806,108		-		806,089		-

See Notes to Condensed Consolidated Financial Statements

4

MW Bancorp, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Three and Six Months Ended December 31, 2015 and 2014

(In thousands)

	Three Months Ended December 31,					Six Months Ended December 31,
	2015			2014		2015			2014
	(Unaudited)
Net income	$	23		$	81	$	70		$	79
Other comprehensive loss:
Unrealized holding gains (losses) on securities available for sale		(11	)		23		(19	)		5
Amortization of net unrealized holding loss on held-to-maturity securities		-			2		-			4
Net unrealized gains (losses)		(11	)		25		(19	)		9
Tax effect		-			-		-			-
Total other comprehensive income (loss)		(11	)		25		(19	)		9
Comprehensive income	$	12		$	106	$	51		$	88

See Notes to Condensed Consolidated Financial Statements

5

MW Bancorp, Inc.

Condensed Consolidated Statements of Shareholders’ Equity

For the Six Months Ended December 31, 2015 and 2014

(In thousands)

Six Months Ended December 31, 2015

										Accumulated
			Additional		Shares					Other
	Common		Paid-in		Acquired			Retained		Comprehensive
	Stock		Capital		by ESOP			Earnings		Loss			Total
	(Unaudited)
Balance at July 1, 2015	$	9	$	7,386	$	(701	)	$	9,067	$	(91	)	$	15,670
Net income		-		-		-			70		-			70
Amortization of ESOP		-		14		35			-		-			49
Other comprehensive loss		-		-		-			-		(19	)		(19	)
Balance at December 31, 2015	$	9	$	7,400	$	(666	)	$	9,137	$	(110	)	$	15,770

Six Months Ended December 31, 2014

									Accumulated
			Additional		Shares				Other
	Common		Paid-in		Acquired		Retained		Comprehensive
	Stock		Capital		by ESOP		Earnings		Loss			Total
	(Unaudited)
Balance at July 1, 2014	$	-	$	-	$	-	$	8,922	$	(93	)	$	8,829
Net income		-		-		-		79		-			79
Other comprehensive loss		-		-		-		-		9			9
Balance at December 31, 2014	$	-	$	-	$	-	$	9,001	$	(84	)	$	8,917

See Notes to Condensed Consolidated Financial Statements

6

MW Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended December 31, 2015 and 2014

(In thousands)

	Six Months Ended December 31,
	2015			2014
	(Unaudited)
Cash Flows from Operating Activities
Net income	$	70		$	79
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization		52			47
Amortization of premiums and discounts on securities, net		31			49
Accretion of deferred loan origination fees and costs, net		1			(23	)
Provision for loan losses		13			30
Gain on sale of loans		(52	)		(27	)
Proceeds from sales of loans		2,264			1,539
Loans originated for sale		(2,579	)		(1,523	)
Gain on sale of foreclosed assets		-			(18	)
Amortization of ESOP		49			-
Net changes in:
Accrued interest receivable		(39	)		(11	)
Other assets		55			(554	)
Cash surrender value of life insurance		(46	)		(47	)
Other liabilities		367			134
Directors deferred compensation		-			(1,007	)
Net cash provided by (used in) operating activities		186			(1,332	)
Cash Flows from Investing Activities
Net change in interest-bearing deposits in other financial institutions		1,000			898
Proceeds from maturities of available-for-sale securities		-			500
Principal repayments of held-to-maturity securities		274			400
Principal repayments of available-for-sale mortgage-backed securities		401			552
Net change in loans		(8,384	)		(10,549	)
Purchase of premises and equipment		(794	)		(18	)
Proceeds from sale of foreclosed assets		-			111
Addtions to foreclosed assets		(8	)		-
Net cash used in investing activities		(7,511	)		(8,106	)
Cash Flows from Financing Activities
Net change in deposits		11,208			(775	)
Proceeds from stock subscriptions held in escrow		-			6,658
Proceeds from Federal Home Loan Bank advances		2,000			11,500
Repayment of Federal Home Loan Bank advances		(1,275	)		(9,705	)
Net cash provided by financing activities		11,933			7,678
Net Change in Cash and Cash Equivalents		4,608			(1,760	)
Beginning Cash and Cash Equivalents		3,665			4,470
Ending Cash and Cash Equivalents	$	8,273		$	2,710
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest on deposits and borrowings	$	590		$	483
Supplemental Disclosure of Noncash Investing Activities
Transfers from loans to foreclosed assets	$	-		$	78
Transfers from loans to loans held for sale	$	5,058		$	-

See Notes to Condensed Consolidated Financial Statements

7

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1: Basis of Presentation

MW Bancorp, Inc. (“MW Bancorp”), headquartered in Cincinnati, Ohio, was formed to serve as the stock holding company for Mt. Washington Savings Bank following its mutual-to-stock conversion. The conversion was completed effective January 29, 2015. MW Bancorp is a Maryland corporation. MW Bancorp issued 876,163 shares at an offering price of $10.00 per share. On July 31, 2015, Mt. Washington Savings Bank changed its name to Watch Hill Bank. References within this Form 10-Q to the “Bank” are intended to describe Watch Hill Bank both before and after the name change.

The accompanying unaudited condensed balance sheet of MW Bancorp as of June 30, 2015, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of MW Bancorp as of December 31, 2015 and for the three and six months ended December 31, 2015 and 2014, were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements and notes thereto of MW Bancorp as of and for the year ended June 30, 2015 included in MW Bancorp’s Form 10-K. Reference is made to the accounting policies of MW Bancorp described in the Notes to the Financial Statements contained in the Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of December 31, 2015 and the results of operations and cash flows for the three and six months ended December 31, 2015 and 2014. All interim amounts have not been audited and the results of operations for the three and six months ended December 31, 2015, herein are not necessarily indicative of the results of operations to be expected for the entire fiscal year.

Principles of Consolidation

The consolidated financial statements as of and for the periods ended December 31, 2015, include MW Bancorp, Inc. and its wholly owned subsidiary, Watch Hill Bank, together referred to as “the Company,” “we,” “us,” or “our.” Intercompany transactions and balances have been eliminated in consolidation. The financial statements for the three and six months ended December 31, 2014 represent the Bank only, as the conversion to stock form, including the formation of MW Bancorp, was completed on January 29, 2015. References herein to the “Company” for periods prior to the completion of the stock conversion should be deemed to refer to the “Bank”.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.

8

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets and fair values of financial instruments.

Note 2: Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2015
U. S. Government agency bonds	$	498	$	1	$	-		$	499
Mortgage-backed securities of U.S. government sponsored entities - residential		3,355		9		(15	)		3,349
	$	3,853	$	10	$	(15	)	$	3,848
June 30, 2015
U. S. Government agency bonds	$	498	$	-	$	(5	)	$	493
Mortgage-backed securities of U.S. government sponsored entities - residential		3,783		23		(4	)		3,802
	$	4,281	$	23	$	(9	)	$	4,295

9

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Held-to-maturity Securities:
December 31, 2015
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,272	$	-	$	(63	)	$	1,209
June 30, 2015
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,551	$	-	$	(71	)	$	1,480

The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at December 31, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	December 31, 2015
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair  Value		Amortized Cost		Fair  Value
	(In thousands)
U. S. Government agency bonds  Due in more than ten years	$	498	$	499	$	-	$	-
Mortgage-backed securities of U.S. government sponsored entities -  residential - not due at a single maturity date		3,355		3,349		1,272		1,209
	$	3,853	$	3,848	$	1,272	$	1,209

The Company had no sales of investment securities during the three- and six-month periods ended December 31, 2015 and 2014.

The Company had pledged $2.1 million and $1.1 million of its investment securities at December 31, 2015 and June 30, 2015, respectively.

10

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

At December 31, 2015 and June 30, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of the Company’s equity.

On August 1, 2013, the Company reclassified its collateralized mortgage obligation portfolio to held-to-maturity from available-for sale because management intends to hold these securities to maturity. The securities had a total amortized cost of $2.925 million and a corresponding fair value of $2.894 million. The gross unrealized loss on these securities at the date of transfer was $31,000. The unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive loss and is being amortized over the remaining lives of the securities as an adjustment to the yield. The amortization of the remaining holding loss reported in accumulated other comprehensive loss will offset the effect on interest income of the discount for the transferred securities. The remaining unamortized balance of this loss was $18,000 at December 31, 2015.

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and June 30, 2015:

	Less than 12 Months					12 Months or Longer					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
December 31, 2015
Available-for-sale Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,329	$	(8	)	$	517	$	(7	)	$	1,846	$	(15	)
Held-to-maturity Securities:
Mortgage-backed securities  of U.S. government sponsored entities - residential		-		-			1,209		(63	)		1,209		(63	)
	$	1,329	$	(8	)	$	1,726	$	(70	)	$	3,055	$	(78	)
June 30, 2015
Available-for-sale Securities:
U.S. Government agencies	$	493	$	(5	)	$	-	$	-		$	493	$	(5	)
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-			579		(4	)		579		(4	)
Held-to-maturity Securities:
Mortgage-backed securities  of U.S. government sponsored entities - residential		-		-			1,480		(71	)		1,480		(71	)
	$	493	$	(5	)	$	2,059	$	(75	)	$	2,552	$	(80	)

11

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Other-than-temporary Impairment

At December 31, 2015 and June 30, 2015, all of the mortgage-backed securities held by the Company were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Ginnie Mae, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not have the intent, and it is likely that it will not be required, to sell these mortgage-backed securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2015 and June 30, 2015.

Note 3: Loans and Allowance for Loan Losses

Loans at December 31, 2015 and June 30, 2015 include:

	December 31,			June 30,
	2015			2015
	(In thousands)
Real estate loans
One- to four-family residential	$	65,809		$	65,170
Multi-family residential		7,338			6,221
Commercial		17,095			15,908
Construction		3,284			3,041
Consumer and other		232			93
Total loans		93,758			90,433
Less:
Net deferred loan costs		(52	)		(47	)
Allowance for loan losses		1,620			1,602
Net loans	$	92,190		$	88,878

12

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three and six months ended December 31, 2015 and the recorded investment in loans and impairment method as of December 31, 2015:

	December 31, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner			Multi-
	Occupied		Occupied			family			Commercial			Construction			Consumer			Total
	(In thousands)
Three Months Ended December 31, 2015
Allowance for loan losses:
Balance, October 1, 2015	$	1,159	$	258		$	2		$	127		$	64			-		$	1,610
Provision for loan losses		4		21			(1	)		(11	)		(4	)		(2	)		7
Charge-offs		-		-			-			-			-			-			-
Recoveries		1		-			-			-			-			2			3
Balance, December 31, 2015	$	1,164	$	279		$	1		$	116		$	60		$	-		$	1,620
Six Months Ended December 31, 2015
Allowance for loan losses:
Balance, July 1, 2015	$	1,130	$	287		$	3		$	124		$	58		$	-		$	1,602
Provision for loan losses		32		(8	)		(2	)		(8	)		2			(3	)		13
Charge-offs		-		-			-			-			-			-			-
Recoveries		2		-			-			-			-			3			5
Balance, December 31, 2015	$	1,164	$	279		$	1		$	116		$	60		$	-		$	1,620
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	113	$	52		$	-		$	-		$	-		$	-		$	165
Ending balance, collectively evaluated for impairment	$	1,051	$	227		$	1		$	116		$	60		$	-		$	1,455
Loans:
Ending balance	$	54,153	$	11,656		$	7,338		$	17,095		$	3,284		$	232		$	93,758
Ending balance; individually evaluated for impairment	$	1,246	$	275		$	-		$	164		$	-		$	-		$	1,685
Ending balance; collectively evaluated for impairment	$	52,907	$	11,381		$	7,338		$	16,931		$	3,284		$	232		$	92,073

13

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three and six months ended December 31, 2014:

	Real Estate
	1-4 Family			1-4 Family
	Owner			Non-Owner		Multi-
	Occupied			Occupied		family			Commercial			Construction			Consumer			Total
	(In thousands)
Three Months Ended December 31, 2014
Allowance for loan losses:
Balance, October 1, 2014	$	1,089		$	267	$	23		$	98		$	62			12		$	1,551
Provision for loan losses		11			15		(21	)		47			(23	)		(14	)		15
Charge-offs		-			-		-			-			-			-			-
Recoveries		5			-		-			-			-			2			7
Balance, December 31, 2014	$	1,105		$	282	$	2		$	145	#	$	39		$	-		$	1,573
Six Months Ended December 31, 2014
Allowance for loan losses:
Balance, July 1, 2014	$	1,065		$	278	$	33		$	105		$	56		$	-		$	1,537
Provision for loan losses		37			4		(31	)		40			(17	)		(3	)		30
Charge-offs		(3	)		-		-			-			-			-			(3	)
Recoveries		6			-		-			-			-			3			9
Balance, December 31, 2014	$	1,105		$	282	$	2		$	145		$	39		$	-		$	1,573

14

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents, by portfolio segment, the allowance for loan losses, the recorded investment in loans and impairment method as of June 30, 2015:

	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
June 30, 2015
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	134	$	70	$	-	$	-	$	-	$	-	$	204
Ending balance, collectively  evaluated for impairment	$	996	$	217	$	3	$	124	$	58	$	-	$	1,398
Loans:
Ending balance	$	53,795	$	11,375	$	6,221	$	15,908	$	3,041	$	93	$	90,433
Ending balance; individually evaluated for impairment	$	1,294	$	290	$	-	$	153	$	-	$	-	$	1,737
Ending balance; collectively evaluated for impairment	$	52,501	$	11,085	$	6,221	$	15,755	$	3,041	$	93	$	88,696

Internal Risk Categories

The Company has adopted a standard loan grading system for all loans. Loans are selected for a grading review based on certain characteristics, including credit concentrations, subprime criteria and delinquency of 90 days or more. Definitions are as follows:

Pass: These are higher quality loans that do not fit any of the other categories described below.

Special Mention: The loans identified as special mention have an obvious flaw or a potential weakness that deserves special management attention, but which has not yet impacted collectibility. These flaws or weaknesses, if left uncorrected, may result in the deterioration of the prospects of repayment or of the Company’s credit position.

Substandard: These are loans with a well-defined weakness, where the Company has a serious concern about the borrower’s ability to make full repayment if the weaknesses are not corrected. The loan may contain a flaw, which could impact the borrower’s ability to repay, or the borrower’s continuance as a “going concern.” When collateral values are not sufficient to secure the loan and other weaknesses are present, the loan may be rated substandard. A loan will also be rated substandard when full repayment is expected, but it must come from the liquidation of collateral.

15

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Doubtful: These are loans with major defined weaknesses, where future charge-off of a part of the credit is highly likely. The primary repayment source is no longer viable and the viability of the secondary source of repayment is in doubt. The amount of loss is uncertain due to circumstances within the credit that are not yet fully developed and the loan is rated “Doubtful” until the loss can be accurately estimated.

Loss: These are near term charge-offs. Loans classified as loss are considered uncollectible and of such little value that it is not desirable to continue carrying them as assets on the Company’s financial statements, even though partial recovery may be possible at some future time.

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2015 and June 30, 2015:

	December 31, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Pass	$	53,074	$	10,958	$	7,338	$	17,095	$	3,284	$	232	$	91,981
Special mention		-		-		-		-		-		-		-
Substandard		1,079		698		-		-		-		-		1,777
Doubtful		-		-		-		-		-		-		-
Total	$	54,153	$	11,656	$	7,338	$	17,095	$	3,284	$	232	$	93,758

	June 30, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Pass	$	52,668	$	10,659	$	6,221	$	15,908	$	3,041	$	93	$	88,590
Special mention		-		-		-		-		-		-		-
Substandard		1,127		716		-		-		-		-		1,843
Doubtful		-		-		-		-		-		-		-
Total	$	53,795	$	11,375	$	6,221	$	15,908	$	3,041	$	93	$	90,433

The Company has a portfolio of loans designated as subprime, defined as those loans made to borrowers with a credit score below 660. These loans are primarily secured by 1-4 family real estate, including both owner-occupied and non-owner-occupied properties. Subprime loans totaled $6.5 million and $7.8 million at December 31, 2015 and June 30, 2015, respectively. The decrease was due primarily to updated credit reviews of borrowers in the portfolio who no longer met the criteria for subprime credit status.

16

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the past year.

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2015 and June 30, 2015:

	December 31, 2015
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
1-4 family owner-occupied	$	149	$	70	$	101	$	320	$	53,833	$	54,153	$	-
1-4 family non-owner occupied		384		-		-		384		11,272		11,656		-
Multi-family residential		-		-		-		-		7,338		7,338		-
Commercial		-		-		-		-		17,095		17,095		-
Construction		-		-		-		-		3,284		3,284		-
Consumer and other		-		-		-		-		232		232		-
Total	$	533	$	70	$	101	$	704	$	93,054	$	93,758	$	-

	June 30, 2015
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
1-4 family owner-occupied	$	223	$	-	$	86	$	309	$	53,486	$	53,795	$	-
1-4 family non-owner occupied		-		-		-		-		11,375		11,375		-
Multi-family residential		-		-		-		-		6,221		6,221		-
Commercial		-		-		-		-		15,908		15,908		-
Construction		-		-		-		-		3,041		3,041		-
Consumer and other		-		-		-		-		93		93		-
Total	$	223	$	-	$	86	$	309	$	90,124	$	90,433	$	-

A loan is considered impaired when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming multi-family and commercial loans, but also include loans modified in troubled debt restructurings.

17

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents impaired loan information as of and for the three and six months ended December 31, 2015:

							For the Three Months Ended				For the Six Months Ended
	As of December 31, 2015						December 31, 2015				December 31, 2015
			Unpaid		Allowance for Loan		Average		Interest		Average		Interest
	Recorded Investment		Principal Balance		Losses Allocated		Recorded Investment		Income Recognized		Recorded Investment		Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Real estate
1-4 family owner-occupied	$	862	$	1,042	$	-	$	773	$	6		805	$	12
1-4 family non-owner occupied		125		152		-		126		-		128		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		164		164		-		150		2		150		5
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Loans with an allowance recorded:
Real estate
1-4 family owner-occupied		384		459		113		376		-		380		-
1-4 family non-owner occupied		150		185		52		152		-		154		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Totals	$	1,685	$	2,002	$	165	$	1,577	$	8	$	1,617	$	17

18

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents impaired loan information as of June 30, 2015 and for the three and six months ended December 31, 2014:

							For the Three Months Ended				For the Six Months Ended
	As of June 30, 2015						December 31, 2014				December 31, 2014
			Unpaid		Allowance for Loan		Average		Interest		Average		Interest
	Recorded Investment		Principal Balance		Losses Allocated		Recorded Investment		Income Recognized		Recorded Investment		Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Real estate
1-4 family owner-occupied	$	762	$	937	$	-	$	1,110	$	-	$	1,116	$	-
1-4 family non-owner occupied		72		89		-		76		-		77		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		153		168		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Loans with an allowance recorded:
Real estate
1-4 family owner-occupied		532		596		134		656		-		661		-
1-4 family non-owner occupied		218		255		70		230		-		230		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Totals	$	1,737	$	2,045	$	204	$	2,072	$	-	$	2,084	$	-

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality.

19

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents the Company’s nonaccrual loans at December 31, 2015 and June 30, 2015. The table excludes performing troubled debt restructurings.

	December 31,		June 30,
	2015		2015
	(In thousands)
Real estate
1-4 family owner-occupied	$	748	$	795
1-4 family non-owner occupied		275		290
Multi-family residential		-		-
Commercial		-		-
Construction		-		-
Consumer and other		-		-
Total nonaccrual	$	1,023	$	1,085

At December 31, 2015 and June 30, 2015, the Company had certain loans that were modified in troubled debt restructurings and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate or a permanent reduction of the recorded investment in the loan. The Company had loans modified in a troubled debt restructuring totaling $1.3 million at both December 31, 2015 and June 30, 2015. Troubled debt restructured loans had specific allowances totaling $96,000 and $115,000 at December 31, 2015 and June 30, 2015, respectively. At December 31, 2015, the Company had no commitments to lend additional funds to borrowers with troubled debt restructured loans.

No loans were modified as troubled debt restructurings during either the three and six months ended December 31, 2015 or 2014.

The Company had no troubled debt restructurings modified during the twelve months ended December 31, 2015 or 2014 that subsequently defaulted during the six-month periods ended December 31, 2015 or 2014. A troubled debt restructured loan is considered to be in payment default once it is 30 days contractually past due under the loan’s modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

20

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 4: Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal 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 Company’s 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 the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Effective January 1, 2015, the Bank is subject to the capital requirements set forth by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. Among other things, the rule established a new common equity Tier 1 minimum capital requirement and assigned a higher risk weight (150%) to exposures that are more than 90 days past due, or are on nonaccrual status, and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The final rule also requires unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements, unless a one-time opt-in or opt-out is exercised. The Bank has chosen to exclude unrealized gains and losses from regulatory capital. The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement will be phased in beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer requirement will be effective.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total capital, Tier I capital and Common Equity (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to total average assets (as defined). Management believes, as of December 31, 2015 and June 30, 2015, that the Bank met all capital adequacy requirements to which it is subject.

As of December 31, 2015 and June 30, 2015, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events that management believes have changed the Bank’s category.

21

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

The Bank’s actual capital amounts and ratios 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
	(Dollars in thousands)
As of December 31, 2015
Total Capital
(to Risk-Weighted Assets)	$	15,086		21.4	%	$	5,642		8.0	%	$	7,053		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	14,195		20.1	%	$	4,232		6.0	%	$	5,642		8.0	%
Common Equity
(to Risk-Weighted Assets)	$	14,195		20.1	%	$	3,174		4.5	%	$	4,584		6.5	%
Tier I Capital
(to Average Assets)	$	14,195		12.1	%	$	4,690		4.0	%	$	5,863		5.0	%
As of June 30, 2015
Total Capital
(to Risk-Weighted Assets)	$	14,834		23.1	%	$	5,140		8.0	%	$	6,425		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	14,021		21.8	%	$	3,855		6.0	%	$	5,140		8.0	%
Common Equity
(to Risk-Weighted Assets)	$	14,021		21.8	%	$	2,891		4.5	%	$	4,176		6.5	%
Tier I Capital
(to Average Assets)	$	14,021		13.7	%	$	4,089		4.0	%	$	5,112		5.0	%

22

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 5: Disclosures about Fair Value of Assets and Liabilities

Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Recurring Measurements

The following table presents the fair value measurement of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and June 30, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
U.S. Government agency bonds	$	499	$	-	$	499	$	-
Mortgage-backed securities of U.S. of government sponsored entities - residential		3,349		-		3,349		-
	$	3,848	$	-	$	3,848	$	-
June 30, 2015
U. S. Government agency bonds	$	493	$	-	$	493	$	-
Mortgage-backed securities of U.S. of government sponsored entities - residential		3,802		-		3,802		-
	$	4,295	$	-	$	4,295	$	-

23

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There were no assets classified within Level 3 of the fair value hierarchy measured on a recurring basis. There were no transfers between Level 1 and Level 2 during the periods ended December 31, 2015 and 2014.

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flow. Such securities are classified within Level 2 of the valuation hierarchy.

Nonrecurring Measurements

The following table presents fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which fair value measurements fall at December 31, 2015 and June 30, 2015:

			Fair Value Measurement Using
	Fair  Value		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs  (Level 3)
	(In thousands)
December 31, 2015
Impaired loans - residential
One-to-four family owner occupied	$	271	$	-	$	-	$	271
One-to-four family non-owner occupied		99		-		-		99
June 30, 2015
Impaired loans - residential
One-to-four family owner occupied	$	270	$	-	$	-	$	270
One-to-four family non-owner occupied		148		-		-		148
Foreclosed assets		104		-		-		104

24

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Impaired Loans (Collateral Dependent)

The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics.

25

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements:

	Fair Value at December 31, 2015		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	(In thousands)
Impaired loans (collateral dependent) - one-to-four family owner occupied residential real estate	$	271	Sales comparison approach	Adjustment for differences between the comparable real estate sales		10	%
Impaired loans (collateral dependent) - one-to-four family non-owner occupied residential real estate	$	99	Sales comparison approach	Adjustment for differences between the comparable real estate sales		10	%

	Fair Value at June 30, 2015		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	(In thousands)
Impaired loans (collateral dependent) - one-to-four family owner occupied residential real estate	$	270	Sales comparison approach	Adjustment for differences between the comparable real estate sales		10	%
Impaired loans (collateral dependent) - one-to-four family non-owner occupied residential real estate	$	148	Sales comparison approach	Adjustment for differences between the comparable real estate sales		10	%
Foreclosed assets	$	104	Sales comparison approach	Adjustment for differences between the comparable real estate sales		10	%

26

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and June 30, 2015.

			Fair Value Measurement Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
December 31, 2015
Financial assets
Cash and cash equivalents	$	8,273	$	8,273	$	-	$	-	$	8,273
Interest-bearing time deposits		2,100		-		2,100		-		2,100
Held-to-maturity securities		1,272		-		1,209		-		1,209
Loans		92,190		-		-		99,493		99,493
Federal Home Loan Bank stock		1,164		n/a		n/a		n/a		n/a
Accrued interest receivable		284		-		284		-		284
Financial liabilities
Deposits		79,732		36,971		43,174				80,145
Federal Home Loan Bank advances		23,085		-		23,035		-		23,035
Accrued interest payable		37		-		37		-		37
June 30, 2015
Financial assets
Cash and cash equivalents	$	3,665	$	3,665	$	-	$	-	$	3,665
Interest-bearing time deposits		3,100		-		3,100		-		3,100
Held-to-maturity securities		1,551		-		1,480		-		1,480
Loans		88,878		-		-		89,561		89,561
Federal Home Loan Bank stock		1,164		n/a		n/a		n/a		n/a
Accrued interest receivable		245		-		245		-		245
Financial liabilities
Deposits		68,524		25,076		43,112		-		68,188
Federal Home Loan Bank advances		22,360		-		21,692		-		21,692
Accrued interest payable		31		-		31		-		31

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

Cash and Cash Equivalents and Interest-bearing Time Deposits

The carrying amount of cash, short-term instruments and time deposits approximate fair value and are classified as Level 1.

27

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Held-to-Maturity Securities

The fair value of held-to-maturity securities was estimated by using pricing models that contain market pricing and information, quoted prices of securities with similar characteristics or discounted cash flows that use credit-adjusted discount rates, resulting in a Level 2 classification.

Loans

Fair values of loans are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values, resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value of collateral as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

Federal Home Loan Bank Stock

It is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.

Accrued Interest Receivable and Payable

The carrying amounts of accrued interest approximate fair value, resulting in a Level 2 classification.

Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Federal Home Loan Bank Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements, resulting in a Level 2 classification.

28

MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Off Balance Sheet Instruments

Fair values of off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

Note 6: Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, for the three and six months ended December 31, 2015 and 2014 are as follows:

				Unrealized
	Unrealized			Gains and Losses
	Gains and Losses			on Securities
	on Available			Transferred from
	for Sale			Available for Sale to
	Securities			Held to Maturity			Total
	(In thousands)
Three Months Ended December 31, 2015
Balance, October 1, 2015	$	(81	)	$	(18	)	$	(99	)
Other comprehensive loss		(11	)		-			(11	)
Balance, December 31, 2015	$	(92	)	$	(18	)	$	(110	)
Three Months Ended December 31, 2014
Balance, October 1, 2014	$	(85	)	$	(24	)	$	(109	)
Other comprehensive income		23			-			23
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		-			2			2
Net current period other comprehensive income (loss)		23			2			25
Balance, December 31, 2014	$	(62	)	$	(22	)	$	(84	)

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MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

				Unrealized
	Unrealized			Gains and Losses
	Gains and Losses			on Securities
	on Available			Transferred from
	for Sale			Available for Sale to
	Securities			Held to Maturity			Total
	(In thousands)
Six Months Ended December 31, 2015
Balance, July 1, 2015	$	(73	)	$	(18	)	$	(91	)
Other comprehensive loss		(19	)		-			(19	)
Balance, December 31, 2015	$	(92	)	$	(18	)	$	(110	)
Six Months Ended December 31, 2014
Balance, July 1, 2014	$	(67	)	$	(26	)	$	(93	)
Other comprehensive income, net of tax		5			-			5
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		-			4			4
Net current period other comprehensive income		5			4			9
Balance, December 31, 2014	$	(62	)	$	(22	)	$	(84	)

There were no material items reclassified from accumulated other comprehensive loss to the statement of income for the three- and six-month periods ended December 31, 2015 and 2014.

Note 7: Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is calculated by dividing net income applicable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed in a manner similar to that of basic EPS except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated common shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted EPS calculations until they are committed to be released.

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MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Earnings per share for the three months ended December 31, 2015 was $0.03, calculated using 876,163 shares issued, less 70,055 unallocated shares held by the ESOP. Earnings per share for the six months ended December 31, 2015 was $0.09, calculated using 876,163 shares issued, less 70,074 unallocated shares held by the ESOP. The Company had no dilutive or potentially dilutive securities at December 31, 2015.

Earnings per share disclosures are not applicable to the three-and six-month periods ended December 31, 2014, because the Company did not complete the conversion to stock form until January 29, 2015.

Note 8: Employee Stock Ownership Plan

As part of the Company’s stock conversion, shares were purchased by the ESOP with a loan from MW Bancorp. All employees of the Bank meeting certain tenure requirements are entitled to participate in the ESOP. Compensation expense related to the ESOP was $15,000 and $28,000 for the three and six month periods ended December 31, 2015, respectively.

A summary of the unallocated share activity of the Bank’s ESOP for the six months ended December 31, 2015 is as follows:

Balance, July 1, 2015	70,093
New share purchases	-
Shares released to participants	-
Share allocated to participants	(3,504	)
Balance, December 31, 2015	66,589

The stock price at the formation date was $10.00. The aggregate fair value of the 66,589 unallocated shares was $999,000 based on the $15.00 closing price of our common stock on December 31, 2015.

Note 9: Directors Deferred Compensation

The Company had a nonqualified Directors Deferred Compensation Plan (the “Plan”) which provided for the payment of benefits upon termination of service with the Company as a director. The Plan specified monthly payments for 10 years based upon 80% of the director’s final year fees upon reaching the retirement age defined by the Plan. On June 25, 2013, the Company elected to terminate and liquidate the Plan. The termination cost was approximately $2.0 million, which was reflected on the Company’s balance sheet at June 30, 2014. The funds were fully disbursed in July 2014 and February 2015.

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MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 10: Recent Accounting Pronouncements

FASB ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, in January 2014. The amendments in this update provide clarification on when an in-substance repossession or foreclosure occurs, including when a creditor should be considered to have received physical possession of the residential real estate property collateralizing a consumer mortgage loan, and when to derecognize the loan and recognize the foreclosed property. The amendments in this update were effective for public business entities for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. This standard did not have a material impact on the Company’s financial statements.

FASB ASU 2014-09, Revenue from Contracts with Customers. In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that 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. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. Management is currently in the process of evaluating the impact of the amended guidance on the Company’s financial statements.

FASB ASU 2014-11, Transfers and Servicing (Topic 860), Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, was issued in June 2014. The amendments in this Update require disclosures for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. This Update also requires certain disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The accounting changes in this Update were effective for public business entities for the first interim or annual period beginning after December 15, 2014. For public business entities, the disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and for disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This standard did not have a material impact on the Company’s financial statements.

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MW Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 11: Change in Corporate Form

On January 29, 2015, the Bank converted into a stock savings bank structure with the establishment of a stock holding company, MW Bancorp, Inc., a Maryland corporation, as parent of the Bank.

The Bank converted to the stock form of ownership, followed by the issuance of all of the Bank’s outstanding stock to the Company. Pursuant to the Plan, the Bank determined the total offering value and number of shares of common stock based upon an independent appraiser’s valuation. The stock was priced at $10.00 per share. In addition, the Bank’s Board of Directors adopted ESOP, which subscribed for 8% of the common stock sold in the offering. Proceeds from the sale of shares totaled $8.8 million. The costs of issuing the common stock were deducted from the sales proceeds of the offering.

At the completion of the conversion to stock form, the Bank established a liquidation account in the amount of retained earnings contained in the final prospectus. The liquidation account will be maintained for the benefits of eligible savings account holders who maintain deposit accounts in the Bank after conversion.

The conversion was accounted for as a change in corporate form with the historic basis of the Bank’s assets, liabilities and equity unchanged as a result.

33

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis of the financial condition at December 31, 2015 and results of operations for the three and six months ended December 31, 2015 and 2014, is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto, appearing in Part I, Item 1 of this quarterly report on

Form 10-Q.

Forward-Looking Statements

This document contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and similar expressions. These forward-looking statements include: statements of goals, intentions and expectations, statements regarding prospects and business strategy, statements regarding asset quality and market risk, and estimates of future costs, benefits and results.

These forward-looking statements are subject to significant risks, assumptions and uncertainties, including, among other things, the following: (1) general economic conditions, (2) competitive pressure among financial services companies, (3) changes in interest rates, (4) deposit flows, (5) loan demand, (6) changes in legislation or regulation, (7) changes in accounting principles, policies and guidelines and (8) other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. We have no obligation to update or revise any forward-looking statements to reflect any changed assumptions, any unanticipated events or any changes in the future.

Critical Accounting Policies

The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical. The estimates and assumptions that we use are based on historical experience and various other factors we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities or our results of operations.

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards.

34

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following represent our critical accounting policies:

Allowance for Loan Losses. The allowance for loan losses is the estimated amount considered necessary for probable incurred credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses 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.

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 allowances. The specific allowance is 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 its carrying value, a charge is recorded for the difference. The general allowance, which is for loans reviewed collectively, is determined by segregating the remaining loans by type of loan, risk weighting (if applicable) and payment history. We also analyze historical loss experience, delinquency trends, general economic conditions and geographic and industry concentrations. The historical loss experience is determined by portfolio segment and is based on the Company’s actual loss history over the most recent twelve quarters. All periods are evenly weighted within the twelve quarter loss history. The methodology used in calculation of loss factors is consistently applied to all loan segments. This analysis establishes historical loss percentages and qualitative factors that are applied to the loan groups to determine the amount of the allowance for loan losses necessary for loans that are reviewed collectively. The qualitative component is critical in determining the allowance for loan losses as certain trends may indicate the need for changes to the allowance for loan losses based on factors beyond the historical loss history. Not incorporating a qualitative component could misstate the allowance for loan losses. Actual loan losses may be significantly more than the allowances we have established, which could result in a material adverse effect on our financial results.

Deferred Tax Assets. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. 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. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and business factors change. Determining the proper valuation allowance for deferred taxes is critical in properly valuing the deferred tax asset and the related recognition of income tax expense or benefit. At both December 31, 2015 and June 30, 2015, our deferred tax asset was reduced by a $2.1 million valuation allowance, which represented full valuation allowance applied to our net deferred tax asset. The Company maintained a full valuation allowance against its net deferred tax asset as of and for the three and six months ended December 31, 2015 and 2014, and as of and for the year ended June 30, 2015.

35

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Fair Value Measurements. The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Company estimates the fair value of a financial instrument and any related asset impairment using a variety of valuation methods. Where financial instruments are actively traded and have quoted market prices, quoted market prices are used for fair value. When the financial instruments are not actively traded, other observable market inputs, such as quoted prices of securities with similar characteristics, may be used, if available, to determine fair value. When observable market prices do not exist, the Company estimates fair value. These estimates are subjective in nature and imprecision in estimating these factors can impact the amount of gain or loss recorded. A more detailed description of the fair values measured at each level of the fair value hierarchy and the methodology utilized by the Company can be found in Note 5 to this Form 10-Q — “Disclosures About Fair Value of Assets and Liabilities.”

Comparison of Financial Condition at December 31, 2015 and June 30, 2015

Total Assets. Total assets were $119.2 million at December 31, 2015, an increase of $12.4 million, or 11.6%, over the $106.8 million total at June 30, 2015. The increase was primarily comprised of an $8.7 million increase in net loans and a $4.6 million increase in cash and cash equivalents, which were partially offset by a decrease in interest-bearing deposits in other financial institutions of $1.0 million.

Net Loans. Net loans, including loans held for sale, increased by $8.7 million, or 9.8%, to $97.6 million at December 31, 2015 from $88.9 million at June 30, 2015. During the six months ended December 31, 2015, we originated $21.9 million of loans, which represented approximately 24.3% of our total loan portfolio at June 30, 2015. These new loan originations were comprised primarily of $13.7 million of one- to four-family residential real estate loans, $2.6 million of commercial real estate loans, $3.4 million of construction loans and $2.0 of multi-family residential real estate loans. During the six months ended December 31, 2015, we originated and sold $2.2 million of loans in the secondary market and had another $350,000 in loans held for sale at December 31, 2015.

During the six months ended December 31, 2015, one- to four-family residential real estate loans increased $639,000, or 1.0%, to $65.8 million at December 31, 2015, from $65.2 million at June 30, 2015; commercial real estate loans increased $1.2 million, or 7.5%, to $17.1 million at December 31, 2015; multi-family residential real estate loans increased $1.1 million, or 18.0%, to $7.3 million at December 31, 2015; and construction loans increased $243,000, or 8.0%, to $3.3 million at December 31, 2015.

36

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Increases in loan balances reflect our strategy to grow and diversify our loan portfolio, with an emphasis on increasing commercial and multi-family residential loans, as we shift our strategy from our traditional focus on one-to four-family residential loans. Such growth has been achieved amid strong competition for commercial real estate, multi-family and one- to four-family residential mortgage loans in our market area in the current low interest rate environment.

During the latter part of fiscal 2013, we initiated a program to sell certain fixed-rate, 30-year term mortgage loans in the secondary market. We have sold loans on both a servicing released and servicing retained basis, in transactions with the Federal Home Loan Bank-Cincinnati (“FHLB”), through its mortgage purchase program, and other investors. We sold $2.3 million of loans in the six months ended December 31, 2015. Total loans sold with servicing retained totaled $6.5 million at December 31, 2015. In December 2015, management elected to sell a participating interest in certain jumbo mortgage loans secured by one-to four- family residential real estate. The decision was predicated primarily upon management’s strategy to mitigate risk by reducing the Company’s investment in this loan segment and to increase the Company’s liquidity levels. Accordingly, $5.1 million of such loans were transferred to loans held for sale. Management intends to continue these sales activities in future periods.

Interest Bearing Deposits in Other Financial Institutions. Interest-bearing time deposits in other financial institutions decreased by $1.0 million, or 32.3%, to a total of $2.1 million at December 31, 2015, compared to $3.1 million at June 30, 2015, due to maturities of these deposits. Management began to invest in certificates of deposit during the year ended June 30, 2013, to increase the yield on liquid assets beyond the rates available in overnight funds. As these deposits matured, the proceeds have been used primarily to fund new loan originations.

Investment Securities. Investment securities decreased $726,000, or 12.4%, to $5.1 million at December 31, 2015 from $5.8 million at June 30, 2015. The decrease consisted primarily of principal repayments on mortgage-backed securities during the six months ended December 31, 2015.

The yield on our investment securities increased to 1.84% for the six months ended December 31, 2015, compared to 1.58% for the six months ended December 31, 2014. At December 31, 2015, investment securities classified as available-for-sale and held-to-maturity consisted of government agency securities and government-sponsored mortgage-backed securities.

Premises and Equipment, net. Premises and equipment increased $742,000, or 230.4%, to $1.1 million at December 31, 2015. The increase was due primarily to leasehold improvement costs and the purchase of a tract of land to construct a drive-through facility for the Company’s second full-service office location which opened in September 2015.

Foreclosed Assets. Foreclosed assets totaled $112,000 at December 31, 2015 compared to $104,000 at June 30, 2015. There were no sales of foreclosed properties and no additional assets acquired through foreclosure during the six months ended December 31, 2015. At December 31, 2015, our foreclosed assets consisted of one parcel of one- to four-family residential real estate.

37

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Deposits. Deposits increased by $11.2 million, or 16.4%, to $79.7 million at December 31, 2015 from $68.5 million at June 30, 2015. Our core deposits, which consist of all deposit account types except certificates of deposit, increased $11.9 million, or 47.4%, to $37.0 million at December 31, 2015 from $25.1 million at June 30, 2015. Certificates of deposit decreased $687,000, or 1.6%, to $42.8 million at December 31, 2015 from $43.4 million at June 30, 2015. During the six months ended December 31, 2015, management continued its strategy of pursuing growth in demand accounts and other lower cost core deposits. Demand accounts were first offered by the Company during 2013 and totaled $23.9 million at December 31, 2015. Management intends to continue its efforts to increase core deposits, with a special emphasis on growth in consumer and business demand deposits.

Federal Home Loan Bank Advances. FHLB advances increased $725,000, or 3.2%, to $23.1 million at December 31, 2015 from $22.4 million at June 30, 2015. Management has pursued a strategy of periodically increasing these advances to take advantage of this low-cost source of funding during the low interest rate environment to grow the Company’s loan portfolio. The aggregate cost of these advances was 1.45% at December 31, 2015, compared to the Company’s cost of deposits of 1.13% at that date.

Shareholders’ Equity. Total shareholders’ equity increased $100,000, or 0.6%, to $15.8 million at December 31, 2015 compared to June 30, 2015. The increase was primarily attributable to net income of $70,000 for the six months ended December 31, 2015 and a $49,000 increase for allocation of ESOP shares, which were partially offset by a $19,000 increase in the accumulated other comprehensive loss.

Comparison of Operating Results for the Three-Month Periods Ended December 31, 2015 and 2014

General. Net income for the three months ended December 31, 2015 was $23,000, compared to $81,000 for the three months ended December 31, 2014, a decrease of $58,000. The decrease in net income was primarily due to a $123,000 increase in noninterest expenses and a $21,000 decrease in noninterest income, which were partially offset by a $79,000 increase in net interest income and a $7,000 decrease in the provision for loan losses.

Average Balance Sheets. The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of net deferred costs, discounts and premiums that are accreted to interest income.

38

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

	Three Months Ended December 31,
	2015								2014
	Average Outstanding Balance			Interest		Yield/ Rate			Average Outstanding Balance			Interest		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans	$	98,967		$	937		3.79	%	$	75,361		$	792		4.20	%
Investment securities		5,372			24		1.79	%		6,463			31		1.92	%
Other interest-earning assets (1)		9,400			32		1.36	%		5,324			30		2.25	%
Total interest-earning assets		113,739			993		3.49	%		87,148			853		3.92	%
Non-interest-earning assets		5,131								5,652
Allowance for loan losses		(1,615	)							(1,560	)
Total assets	$	117,255							$	91,240
Interest-bearing liabilities:
Interest-bearing demand	$	20,717			50		0.97	%	$	4,036			7		0.69	%
Money market accounts		2,774			5		0.72	%		3,215			4		0.50	%
Savings accounts		8,723			7		0.32	%		8,784			5		0.23	%
Certificates of deposit		42,943			160		1.49	%		43,499			156		1.43	%
Total deposits		75,157			222		1.18	%		59,534			172		1.16	%
FHLB advances		23,312			85		1.46	%		19,502			74		1.52	%
Total interest-bearing liabilities		98,469			307		1.25	%		79,036			246		1.25	%
Non-interest-bearing liabilities		3,070								3,296
Total liabilities		101,539								82,332
Equity		15,716								8,908
Total liabilities and equity	$	117,255							$	91,240
Net interest income				$	686							$	607
Net interest rate spread (2)							2.24	%							2.67	%
Net interest-earning assets (3)	$	15,270							$	8,112
Net interest margin (4)							2.41	%							2.79	%
Average interest-earning assets to interest-bearing liabilities		115.51	%							110.26	%

(1) Consists of stock in the FHLB and interest bearing demand and time deposits in other banks.

(2) Net interest rate spread represents the difference between the yield on average interest-earning assets

      and the cost of average interest-bearing liabilities.

(3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

39

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Interest Income. Interest income increased $140,000, or 16.4%, to $993,000 for the three months ended December 31, 2015 from $853,000 for the three months ended December 31, 2014. This increase was primarily attributable to a $145,000 increase in interest on loans receivable. The average balance of loans during the three months ended December 31, 2015 increased by $23.6 million, or 31.3%, from the balance for the three months ended December 31, 2014. The average yield on loans decreased by 41 basis points to 3.79% for the three months ended December 31, 2015 from 4.20% for the three months ended December 31, 2014. The decrease in average yield on loans was due to the declining interest rate environment, as well as an increase in payoffs of higher interest rate loans, as customers refinanced loans at lower interest rates.

The average balance of investment securities decreased $1.1 million to $5.4 million for the three months ended December 31, 2015 from $6.5 million for the three months ended December 31, 2014, while the average yield on investment securities decreased by 13 basis points, to 1.79% for the three months ended December 31, 2015 from 1.92% for the three months ended December 31, 2014. Interest income on other interest-earning assets, including certificates of deposit in other financial institutions, increased $2,000, or 6.7%, for the three months ended December 31, 2015, due to an increase in the average balance of $4.1 million period-to-period offset by a decrease in the average yield of 89 basis points, to 1.36% for the three months ended December 31, 2015. Interest income on other interest- earning assets includes recognition of $13,000 of a $120,000 Bank Enterprise Award the Company received during fiscal 2015 from the U.S. Government-sponsored Community Development Financial Institutions Fund (“CDFI”) based on certificates of deposit placed with qualifying financial institutions participating in the program. The award is being accreted into interest income over the remaining term of the certificates of deposit, and will result in recognition of interest income totaling approximately $13,000 per quarter over the next five quarters.

Interest Expense. Total interest expense increased $61,000, or 24.8%, to $307,000 for the three months ended December 31, 2015, from $246,000 for the three months ended December 31, 2014. Interest expense on deposit accounts increased $50,000, or 29.1%, to $222,000 for the three months ended December 31, 2015, from $172,000 for the three months ended December 31, 2014. The increase was primarily due to an increase of $15.6 million, or 26.2%, in the average balance of interest-bearing deposits to $75.2 million for the three months ended December 31, 2015, while the average cost of interest-bearing deposits increased by two basis points to 1.18% for the three months ended December 31, 2015 compared to the same quarter in 2014.

Interest expense on FHLB advances increased $11,000, or 14.9%, to $85,000 for the three months ended December 31, 2015 from $74,000 for the three months ended December 31, 2014. The average balance of advances increased by $3.8 million, or 19.5%, to $23.3 million for the three months ended December 31, 2015 compared to the three months ended December 31, 2014, while the average cost of these advances decreased by six basis points to 1.46% from 1.52%. As noted above, management elected to increase outstanding advances as a source of low-cost funding.

Net Interest Income. Net interest income increased $79,000, or 13.0%, to $686,000 for the three months ended December 31, 2015, compared to $607,000 for the three months ended December 31, 2014. The increase reflected the increase in average net interest-earning assets of $7.2 million period-to-period, while the interest rate spread decreased to 2.24% for the three months ended December 31, 2015, compared to 2.67% for the three months ended December 31, 2014. Our net interest margin decreased to 2.41% for the three months ended December 31, 2015 from 2.79% for the three months ended December 31, 2014. The interest rate spread and net interest margin were impacted by the continuation of the low interest rate environment.

40

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Provision for Loan Losses. Based on our analysis of the factors described in “Critical Accounting Policies—Allowance for Loan Losses,” we recorded provisions for loan losses of $8,000 for the three months ended December 31, 2015 and $15,000 for the three months ended December 31, 2014. The allowance for loan losses was $1.6 million, or 1.63% of total loans, including loans held for sale, at December 31, 2015, compared to $1.6 million, or 1.77% of total loans, at June 30, 2015. The decrease in the provision for loan losses in the three months ended December 31, 2015, compared to the three months ended December 31, 2014, was due primarily to the overall low balances of delinquent and nonperforming loans and net loan charge-offs in the 2015 period. Total nonperforming loans were $1.0 million at December 31, 2015, compared to $1.2 million at December 31, 2014. Classified loans totaled to $1.8 million at December 31, 2015, compared to $1.3 million at December 31, 2014, and total loans past due greater than 30 days were $704,000 and $315,000 at those respective dates. Net recoveries totaled $3,000 for the three months ended December 31, 2015, compared to net recoveries of $7,000 for the three months ended December 31, 2014. As a percentage of nonperforming loans, the allowance for loan losses was 158.4% at December 31, 2015, compared to 130.1% at December 31, 2014. The provisions for loan losses in the three months ended December 31, 2015 and 2014 were attributable primarily to estimated losses recognized on certain impaired loans, as well as the Company’s overall growth in loans and the change in the loan product mix, as the Company continued its efforts to diversify the loan portfolio from its traditional focus on one-to four-family residential loans.

The allowance for loan losses reflects the estimate we believe to be appropriate to cover probable incurred losses in the loan portfolio at December 31, 2015 and 2014. While we believe the estimates and assumptions used in our determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact our financial condition and results of operations. In addition, bank regulatory agencies periodically review our allowance for loan losses and may require an increase in the provision for loan losses or the recognition of further loan charge-offs, based on judgments different than those of management.

Non-Interest Income. Non-interest income decreased $21,000, or 32.3%, to $44,000 for the three months ended December 31, 2015 from $65,000 for the three months ended December 31, 2014. The decrease was primarily due to a $17,000 decrease in gains on sales of foreclosed assets and an $11,000 decrease in gain on sale of loans, due primarily to a decrease in sales volume period-to-period.

Non-Interest Expense. Non-interest expense increased $123,000, or 21.4%, to $699,000 for the three months ended December 31, 2015 compared to $576,000 for the three months ended December 31, 2014. The increase was primarily attributable to an increase of $46,000, or 13.0%, in salaries, employee benefits and directors fees expense, a $25,000 or 44.6%, increase in professional services, an $18,000, or 54.5%, increase in occupancy and equipment and a $22,000, or 200% increase in data processing. The increase in salaries and benefits expense was due primarily to an increase in staffing levels, as the Company increased its staff by three full-time equivalent positions period-to-period, normal merit increases and the $15,000 incremental expense associated with the ESOP. The increase in professional services resulted primarily from costs related to the reporting requirements of a public company. The increase in occupancy and equipment was due primarily to expense associated with the new branch office location, which opened in September 2015. The increase in data processing was due primarily to a nonrecurring credit received from the data processing provider in the 2014 quarter as a refund of excessive billings in preceding periods, coupled with the overall growth in loans and deposits and new product offerings period-to-period.

41

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-interest expense can be expected to increase because of costs associated with possible implementation of one or more stock-based benefit plans, if approved by our stockholders.

Federal Income Taxes. The Company did not record federal income taxes in the three-month period ended December 31, 2015, primarily as a result of the net operating loss carryforward available as well as the full impairment valuation allowance maintained on the Company’s deferred tax assets. Management evaluated the deferred tax asset based upon a projection of future operating results and determined that a full impairment valuation allowance was required at both December 31, 2015 and 2014. The Company has a total valuation allowance on its net deferred tax asset of $2.1 million at December 31, 2015. The deferred tax asset will only be recognized in future periods when it is more likely than not that the net deferred tax asset can be realized, primarily through the generation of sustainable taxable income.

Comparison of Operating Results for the Six-Month Periods Ended December 31, 2015 and 2014  

General. Net income for the six months ended December 31, 2015 was $70,000, compared to $79,000 for the six months ended December 31, 2014, a decrease of $9,000. The decrease in net income was primarily due to a $249,000 increase in noninterest expenses, which was partially offset by a $206,000 increase in net interest income, a $17,000 decrease in the provision for loan losses and a $17,000 increase in noninterest income.

Average Balance Sheets. The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of net deferred costs, discounts and premiums that are accreted to interest income.

42

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

	Six Months Ended December 31,
	2015								2014
	Average Outstanding Balance			Interest		Yield/ Rate			Average Outstanding Balance			Interest		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans	$	96,214		$	1,842		3.83	%	$	72,879		$	1,534		4.21	%
Investment securities		5,541			51		1.84	%		6,949			55		1.58	%
Other interest-earning assets(1)		8,744			64		1.46	%		6,070			54		1.78	%
Total interest-earning assets		110,499			1,957		3.54	%		85,898			1,643		3.83	%
Non-interest-earning assets		4,958								5,423
Allowance for loan losses		(1,610	)							(1,551	)
Total assets	$	113,847							$	89,770
Interest-bearing liabilities:
Interest-bearing demand	$	18,123			88		0.97	%	$	3,661			13		0.71	%
Money market accounts		2,764			8		0.58	%		3,215			8		0.50	%
Savings accounts		8,650			13		0.30	%		8,917			9		0.20	%
Certificates of deposit		42,936			321		1.50	%		44,228			320		1.45	%
Total deposits		72,473			430		1.19	%		60,021			350		1.17	%
FHLB advances		22,877			166		1.45	%		18,291			138		1.51	%
Total interest-bearing liabilities		95,350			596		1.25	%		78,312			488		1.25	%
Non-interest-bearing liabilities		2,808								2,941
Total liabilities		98,158								81,253
Equity		15,689								8,517
Total liabilities and equity	$	113,847							$	89,770
Net interest income				$	1,361							$	1,155
Net interest rate spread (2)							2.29	%							2.58	%
Net interest-earning assets (3)	$	15,149							$	7,586
Net interest margin (4)							2.46	%							2.69	%
Average interest-earning assets to interest-bearing liabilities		115.89	%							109.69	%

(1) Consists of stock in the FHLB and interest bearing demand and time deposits in other banks.

(2) Net interest rate spread represents the difference between the yield on average interest-earning assets

     and the cost of average interest-bearing liabilities.

(3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

43

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Interest Income. Interest income increased $314,000, or 19.1%, to $2.0 million for the six months ended December 31, 2015 from $1.6 million for the six months ended December 31, 2014. This increase was primarily attributable to a $308,000 increase in interest on loans receivable. The average balance of loans during the six months ended December 31, 2015 increased by $23.3 million, or 32.0%, from the balance for the six months ended December 31, 2014. The average yield on loans decreased by 38 basis points to 3.83% for the six months ended December 31, 2015 from 4.21% for the six months ended December 31, 2014. The decrease in average yield on loans was due to the declining interest rate environment, as well as an increase in payoffs of higher interest rate loans, as customers refinanced loans at lower interest rates.

The average balance of investment securities decreased $1.4 million to $5.5 million for the six months ended December 31, 2015 from $6.9 million for the six months ended December 31, 2014, while the average yield on investment securities increased by 26 basis points, to 1.84% for the six months ended December 31, 2015 from 1.58% for the six months ended December 31, 2014. Interest income on other interest-earning assets, including certificates of deposit in other financial institutions, increased $10,000, or 18.5%, for the six months ended December 31, 2015, due to an increase in the average balance of $2.7 million period-to-period offset by a decrease in the average yield of 32 basis points, to 1.46% for the six months ended December 31, 2015. Interest income on other interest-earning assets includes recognition of $26,000 of a $120,000 Bank Enterprise Award the Company received during fiscal 2015 from the U.S. Government-sponsored Community Development Financial Institutions Fund (“CDFI”) based on certificates of deposit placed with qualifying financial institutions participating in the program. The award is being accreted into interest income over the remaining term of the certificates of deposit, and will result in recognition of interest income totaling approximately $13,000 per quarter over the next five quarters.

Interest Expense. Total interest expense increased $108,000, or 22.1%, to $596,000 for the six months ended December 31, 2015, from $488,000 for the six months ended December 31, 2014. Interest expense on deposit accounts increased $80,000, or 22.9%, to $430,000 for the six months ended December 31, 2015, from $350,000 for the six months ended December 31, 2014. The increase was primarily due to an increase of $12.5 million, or 20.7%, in the average balance of interest-bearing deposits to $72.5 million for the six months ended December 31, 2015, while the average cost of interest-bearing deposits increased by two basis points to 1.19% for the six months ended December 31, 2015 compared to the same period in 2014.

Interest expense on FHLB advances increased $28,000, or 20.3%, to $166,000 for the six months ended December 31, 2015 from $138,000 for the six months ended December 31, 2014. The average balance of advances increased by $4.6 million, or 25.1%, to $22.9 million for the six months ended December 31, 2015 compared to the six months ended December 31, 2014, while the average cost of these advances decreased by six basis points to 1.45% for the six months ended December 31, 2015 compared to 1.51% for the same period in 2014. As noted above, management elected to increase outstanding advances as a source of low-cost funding.

Net Interest Income. Net interest income increased $206,000, or 17.8%, to $1.4 million for the six months ended December 31, 2015, compared to $1.2 million for the six months ended December 31, 2014. The increase reflected the increase in average net interest-earning assets of $7.6 million period-to-period, while the interest rate spread decreased to 2.29% for the six months ended December 31, 2015, compared to 2.58% for the six months ended December 31, 2014. Our net interest margin decreased to 2.46% for the six months ended December 31, 2015 from 2.69% for the six months ended December 31, 2014. The interest rate spread and net interest margin were impacted by the continuation of the low interest rate environment.

44

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Provision for Loan Losses. Based on our analysis of the factors described in “Critical Accounting Policies—Allowance for Loan Losses,” we recorded provisions for loan losses of $13,000 for the six months ended December 31, 2015 and $30,000 for the six months ended December 31, 2014. The allowance for loan losses was $1.6 million, or 1.63% of total loans, including loans held for sale, at December 31, 2015, compared to $1.6 million, or 1.77% of total loans, at June 30, 2015. The decrease in the provision for loan losses in the six months ended December 31, 2015, compared to the six months ended December 31, 2014, was due primarily to the continued overall low level of delinquent and nonperforming loans and net loan charge-offs in the 2015 period. Total nonperforming loans were $1.0 million at December 31, 2015, compared to $1.2 million at December 31, 2014. Classified loans totaled $1.8 million at December 31, 2015, compared to $1.3 million at December 31, 2014, and total loans past due greater than 30 days were $704,000 and $315,000 at those respective dates. The Company had net recoveries totaling $5,000 for the six months ended December 31, 2015, compared to net recoveries of $6,000 for the six months ended December 31, 2014. As a percentage of nonperforming loans, the allowance for loan losses was 158.4% at December 31, 2015, compared to 130.1% at December 31, 2014. The provisions for loan losses in the six months ended December 31, 2015 and 2014 were attributable primarily to estimated losses recognized on certain impaired loans, as well as the Company’s overall growth in loans and the change in the loan product mix, as the Company continued its efforts to diversify the loan portfolio from its traditional focus on one-to four-family residential loans.

The allowance for loan losses reflects the estimate we believe to be appropriate to cover probable incurred losses in the loan portfolio at December 31, 2015 and 2014. While we believe the estimates and assumptions used in our determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact our financial condition and results of operations. In addition, bank regulatory agencies periodically review our allowance for loan losses and may require an increase in the provision for loan losses or the recognition of further loan charge-offs, based on judgments different than those of management.

Non-Interest Income. Non-interest income increased $17,000, or 16.2%, to $122,000 for the six months ended December 31, 2015 from $105,000 for the six months ended December 31, 2014. The increase was primarily due to a $25,000 increase in gain on sale of loans, due primarily to an increase in sales volume period-to-period, which was partially offset by an $18,000 decrease in gains on sales of foreclosed assets.

45

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-Interest Expense. Non-interest expense increased $249,000, or 21.6%, to $1.4 million for the six months ended December 31, 2015 compared to $1.2 million for the six months ended December 31, 2014. The increase was primarily attributable to an increase of $94,000, or 13.6%, in salaries, employee benefits and director’s fees expense, a $68,000 or 54.4%, increase in professional services, a $23,000, or 34.8%, increase in occupancy and equipment and a $26,000, or 65.0%, increase in data processing. The increase in salaries and benefits expense was attributable to an increase in staffing levels as the Company increased its staff by three full-time equivalent positions period-to-period, normal merit increases and the $29,000 incremental expense associated with the ESOP. The increase in professional services resulted primarily from costs related to the reporting requirements of a public company. The increase in occupancy and equipment was due primarily to expense associated with the new branch office location, which opened in September 2015. The increase in data processing was due primarily to a nonrecurring credit received from the data processing provider in the 2014 period as a refund of excessive billings in preceding periods, coupled with the overall growth in loans and deposits and new product offerings period-to-period.

Non-interest expense can be expected to increase because of costs associated with possible implementation of one or more stock-based benefit plans, if approved by our stockholders.

Federal Income Taxes. The Company did not record federal income taxes in the six-month period ended December 31, 2015, primarily as a result of the net operating loss carryforward available as well as the full impairment valuation allowance maintained on the Company’s deferred tax assets. Management evaluated the deferred tax asset based upon a projection of future operating results and determined that a full impairment valuation allowance was required at both December 31, 2015 and 2014. The Company has a total valuation allowance on its net deferred tax asset of $2.1 million at December 31, 2015. The deferred tax asset will only be recognized in future periods when it is more likely than not that the net deferred tax asset can be realized, primarily through the generation of sustainable taxable income.

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, principal and interest payments on loans and securities, proceeds from the sale of loans, and proceeds from maturities, sales or calls of securities. We also have the ability to borrow from the FHLB. At December 31, 2015, we had the capacity to borrow approximately $29.3 million from the FHLB and have an additional $10.0 million on a line of credit with the FHLB. At December 31, 2015, we had $23.1 million outstanding in FHLB advances.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments, including interest-bearing demand deposits. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by (used in) operating activities was $186,000 and $(1.3 million) for the six months ended December 31, 2015 and 2014, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations and the purchase of securities, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay-downs on mortgage-backed securities, was $7.5 million and $8.1 million for the six months ended December 31, 2015 and 2014, respectively. During the six months ended December 31, 2015 and 2014, we did not purchase or sell any securities designated as available for sale. Net cash provided by financing activities, consisting primarily of the activity in deposit accounts and FHLB advances, and in the 2014 period included the proceeds from stock subscriptions held in escrow, was $11.9 million and $7.7 million for the six months ended December 31, 2015 and 2014, respectively. These funding increases also reflected our strategy of borrowing at lower interest rates to fund loan originations.

46

MW Bancorp, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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 December 31, 2015, we exceeded all of our regulatory capital requirements with a Tier 1 leverage capital level of $14.2 million, or 12.1% of average assets, which is above the well-capitalized required level of $5.9 million, or 5.0%; and total risk-based capital of $15.1 million, or 21.4% of risk-weighted assets, which is above the well-capitalized required level of $7.1 million, or 10.0%. Accordingly, the Bank met the capital requirements to be deemed well capitalized at December 31, 2015.

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. At December 31, 2015, we had outstanding commitments to originate loans of $6.3 million, including undisbursed funds on construction loans and funds available on undrawn lines of credit. We anticipate that we will have sufficient funds available to meet our current lending commitments. Certificates of deposit that are scheduled to mature in less than one year from December 31, 2015 totaled $27.5 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize FHLB advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

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

47

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

ITEM 4 Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Under the supervision and with the participation of the Registrant’s management, including our Chief Executive Officer and Chief Financial Officer, the Registrant evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures were effective.

(b) Changes in internal controls.

There has been no change made in the Registrant’s internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

48

MW Bancorp, Inc.

Part II

Other Information

ITEM 1. Legal Proceedings

We are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. At December 31, 2015, we were not involved in any legal proceedings the outcome of which would be material to our financial condition or results of operations.

ITEM 1A. Risk Factors

Not applicable.

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

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

(b) Not applicable.

(c) There were no issuer repurchases of securities during the period covered by this report.

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

None.

ITEM 6. Exhibits

Exhibit
Number	Description
3.1	Articles of Incorporation of MW Bancorp, Inc. (incorporated by reference to registrant’s Form S-1 filed on September 10, 2014, Exhibit 3.1 (File No. 333-198668))
3.2	Bylaws of MW Bancorp, Inc. (incorporated by reference to registrant’s Form S-1 filed on September 10, 2014, Exhibit 3.2 (File No. 333-198668))
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	Written Statement of Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

49

MW Bancorp, Inc.

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.

			MW Bancorp, Inc.
Date:	February 16, 2016	By:	/s/Gregory P. Niesen
			Gregory P. Niesen
			President and Chief Executive Officer
Date:	February 16, 2016	By:	/s/Julie M. Bertsch
			Julie M. Bertsch
			Senior Vice President and Chief Financial Officer

50

EX-31.1

eXHIBIT 31.1

Certification

I, Gregory P. Niesen, the President and Chief Executive Officer of MW Bancorp, Inc., certify that:

1.       I have reviewed this quarterly report on Form 10-Q of MW Bancorp, Inc.;

2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.       Based on my knowledge, the 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 (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.       The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

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.

February 16, 2016	/s/Gregory P. Niesen
Date	Gregory P. Niesen
	President and Chief Executive Officer

EX-31.2

eXHIBIT 31.2

Certification

I, Julie M. Bertsch, the Senior Vice President and Chief Financial Officer of MW Bancorp, Inc., certify that:

1.       I have reviewed this quarterly report on Form 10-Q of MW Bancorp, Inc.;

2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.       Based on my knowledge, the 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 (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.       The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

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.

February 16, 2016	/s/Julie M. Bertsch
Date	Julie M. Bertsch
	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

Gregory P. Niesen, President and Chief Executive Officer, and Julie M. Bertsch, Senior Vice President and Chief Financial Officer, of MW Bancorp, Inc. (the “Registrant”), each hereby certify, in their capacity as an officer of the Registrant that he/she has reviewed the quarterly report of the Registrant on Form 10-Q for the quarter ended December 31, 2015 (the “Report”), and that to the best of his/her 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 Registrant.

February  16, 2016	/s/Gregory P. Niesen
Date	Gregory P. Niesen
	President and Chief Executive Officer
February 16 , 2016	/s/Julie M. Bertsch
Date	Julie M. Bertsch
	Senior Vice President and Chief Financial Officer

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

XML

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 16, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Registrant Name	MW Bancorp, Inc.
Entity Central Index Key	0001600065
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	MWBC
Entity Common Stock, Shares Outstanding		876,163

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Assets
Cash and due from banks	$ 105	$ 88
Interest-bearing demand deposits	8,168	3,577
Cash and cash equivalents	8,273	3,665
Interest-bearing time deposits in other financial institutions	2,100	3,100
Available-for-sale securities	3,848	4,295
Held-to-maturity securities (fair value of $1,209 at December 31, 2015 and $1,480 at June 30, 2015)	1,272	1,551
Loans held for sale	5,408	0
Loans, net of allowance for loan losses of $1,620 at December 31, 2015 and $1,602 at June 30, 2015	92,190	88,878
Premises and equipment, net	1,064	322
Federal Home Loan Bank stock, at cost	1,164	1,164
Foreclosed assets, net	112	104
Accrued interest receivable	284	245
Bank owned life insurance	3,421	3,375
Other assets	93	130
Total assets	119,229	106,829
Deposits
Demand and money market	27,823	16,467
Savings	9,148	8,609
Time	42,761	43,448
Total deposits	79,732	68,524
Federal Home Loan Bank advances	23,085	22,360
Other liabilities	642	275
Total liabilities	103,459	91,159
Commitments and Contigent Liabilities	0	0
Shareholders' Equity
Preferred stock - authorized 1,000,000 shares, $0.01 par value, none issued	0	0
Common stock - authorized 30,000,000 shares, $0.01 par value, 876,163 shares issued and outstanding	9	9
Additional paid-in capital	7,400	7,386
Shares acquired by ESOP	(666)	(701)
Retained earnings	9,137	9,067
Accumulated other comprehensive loss	(110)	(91)
Total shareholders' equity	15,770	15,670
Total liabilities and shareholders' equity	$ 119,229	$ 106,829

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Held-to-maturity Securities, Fair Value	$ 1,209	$ 1,480
Loans and Leases Receivable, Allowance	$ 1,620	$ 1,602
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	30,000,000	30,000,000
Common Stock, Shares, Issued	876,163	876,163
Common Stock, Shares, Outstanding	876,163	876,163

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Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Interest Income
Loans, including fees	$ 937	$ 792	$ 1,842	$ 1,534
Taxable securities	24	31	51	55
Interest-bearing deposits	32	30	64	54
Total interest income	993	853	1,957	1,643
Interest Expense
Deposits	222	172	430	350
Federal Home Loan Bank advances	85	74	166	138
Total interest expense	307	246	596	488
Net Interest Income	686	607	1,361	1,155
Provision for Loan Losses	8	15	13	30
Net Interest Income After Provision for Loan Losses	678	592	1,348	1,125
Noninterest Income
Gain on sale of loans	7	18	52	27
Gain on sale of foreclosed assets, net	0	17	0	18
Income from Bank owned life insurance	23	24	46	47
Other operating	14	6	24	13
Total noninterest income	44	65	122	105
Noninterest Expense
Salaries, employee benefits and directors fees	401	355	784	690
Occupancy and equipment	51	33	89	66
Data processing	33	11	66	40
Franchise taxes	13	21	32	38
FDIC insurance premiums	18	18	35	37
Professional services	81	56	193	125
Advertising	12	5	34	22
Office supplies	15	7	26	14
Business entertainment	9	12	22	16
Other	66	58	119	103
Total noninterest expense	699	576	1,400	1,151
Income Before Federal Income Taxes	23	81	70	79
Federal Income Taxes	0	0	0	0
Net Income	$ 23	$ 81	$ 70	$ 79
Earnings per share - basic and diluted	$ 0.03	$ 0	$ 0.09	$ 0
Weighted-average shares outstanding - basic and diluted	806,108	0	806,089	0

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 23	$ 81	$ 70	$ 79
Other comprehensive loss:
Unrealized holding gains (losses) on securities available for sale	(11)	23	(19)	5
Amortization of net unrealized holding loss on held-to-maturity securities	0	2	0	4
Net unrealized gains (losses)	(11)	25	(19)	9
Tax effect	0	0	0	0
Total other comprehensive income (loss)	(11)	25	(19)	9
Comprehensive income	$ 12	$ 106	$ 51	$ 88

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Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Shares Acquired by ESOP [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Jun. 30, 2014	$ 8,829	$ 0	$ 0	$ 0	$ 8,922	$ (93)
Net income	79	0	0	0	79	0
Other comprehensive loss	9	0	0	0	0	9
Ending Balance at Dec. 31, 2014	8,917	0	0	0	9,001	(84)
Beginning Balance at Jun. 30, 2015	15,670	9	7,386	(701)	9,067	(91)
Net income	70	0	0	0	70	0
Amortization of ESOP	49	0	14	35	0	0
Other comprehensive loss	(19)	0	0	0	0	(19)
Ending Balance at Dec. 31, 2015	$ 15,770	$ 9	$ 7,400	$ (666)	$ 9,137	$ (110)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net income	$ 70	$ 79
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization	52	47
Amortization of premiums and discounts on securities, net	31	49
Accretion of deferred loan origination fees and costs, net	1	(23)
Provision for loan losses	13	30
Gain on sale of loans	(52)	(27)
Proceeds from sales of loans	2,264	1,539
Loans originated for sale	(2,579)	(1,523)
Gain on sale of foreclosed assets	0	(18)
Amortization of ESOP	49	0
Net changes in:
Accrued interest receivable	(39)	(11)
Other assets	55	(554)
Cash surrender value of life insurance	(46)	(47)
Other liabilities	367	134
Directors deferred compensation	0	(1,007)
Net cash provided by (used in) operating activities	186	(1,332)
Cash Flows from Investing Activities
Net change in interest-bearing deposits in other financial institutions	1,000	898
Proceeds from maturities of available-for-sale securities	0	500
Principal repayments of held-to-maturity securities	274	400
Principal repayments of available-for-sale mortgage-backed securities	401	552
Net change in loans	(8,384)	(10,549)
Purchase of premises and equipment	(794)	(18)
Proceeds from sale of foreclosed assets	0	111
Addtions to foreclosed assets	(8)	0
Net cash used in investing activities	(7,511)	(8,106)
Cash Flows from Financing Activities
Net change in deposits	11,208	(775)
Proceeds from stock subscriptions held in escrow	0	6,658
Proceeds from Federal Home Loan Bank advances	2,000	11,500
Repayment of Federal Home Loan Bank advances	(1,275)	(9,705)
Net cash provided by financing activities	11,933	7,678
Net Change in Cash and Cash Equivalents	4,608	(1,760)
Beginning Cash and Cash Equivalents	3,665	4,470
Ending Cash and Cash Equivalents	8,273	2,710
Supplemental Disclosure of Cash Flow Information
Interest on deposits and borrowings	590	483
Supplemental Disclosure of Noncash Investing Activities
Transfers from loans to foreclosed assets	0	78
Transfers from loans to loans held for sale	$ 5,058	$ 0

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Basis of Presentation

6 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1: Basis of Presentation

MW Bancorp, Inc. (“MW Bancorp”), headquartered in Cincinnati, Ohio, was formed to serve as the stock holding company for Mt. Washington Savings Bank following its mutual-to-stock conversion. The conversion was completed effective January 29, 2015.  MW Bancorp is a Maryland corporation.  MW Bancorp issued 876,163 shares at an offering price of $10.00 per share. On July 31, 2015, Mt. Washington Savings Bank changed its name to Watch Hill Bank. References within this Form 10-Q to the “Bank” are intended to describe Watch Hill Bank both before and after the name change.

The accompanying unaudited condensed balance sheet of MW Bancorp as of June 30, 2015, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of  MW Bancorp as of December 31, 2015 and for the three and six months ended December 31, 2015 and 2014, were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements and notes thereto of MW Bancorp as of and for the year ended June 30, 2015 included in MW Bancorp’s Form 10-K. Reference is made to the accounting policies of  MW Bancorp described in the Notes to the Financial Statements contained in the Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of December 31, 2015 and the results of operations and cash flows for the three and six months ended December 31, 2015 and 2014. All interim amounts have not been audited and the results of operations for the three and six months ended December 31, 2015, herein are not necessarily indicative of the results of operations to be expected for the entire fiscal year.

Principles of Consolidation

The consolidated financial statements as of and for the periods ended December 31, 2015, include MW Bancorp, Inc. and its wholly owned subsidiary, Watch Hill Bank, together referred to as  “the Company,” “we,” “us,” or “our.” Intercompany transactions and balances have been eliminated in consolidation. The financial statements for the three and six months ended December 31, 2014 represent the Bank only, as the conversion to stock form, including the formation of MW Bancorp, was completed on January 29, 2015. References herein to the “Company” for periods prior to the completion of the stock conversion should be deemed to refer to the “Bank”.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets and fair values of financial instruments.

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Securities

6 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

Note 2: Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2015
U. S. Government agency bonds	$	498	$	1	$	-	$	499
Mortgage-backed securities of U.S. government sponsored entities - residential		3,355		9		(15)		3,349
	$	3,853	$	10	$	(15)	$	3,848
June 30, 2015
U. S. Government agency bonds	$	498	$	-	$	(5)	$	493
Mortgage-backed securities of U.S. government sponsored entities - residential		3,783		23		(4)		3,802
	$	4,281	$	23	$	(9)	$	4,295

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Held-to-maturity Securities:
December 31, 2015
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,272	$	-	$	(63)	$	1,209
June 30, 2015
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,551	$	-	$	(71)	$	1,480

The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at December 31, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	December 31, 2015
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair  Value
	(In thousands)
U. S. Government agency bonds Due in more than ten years	$	498	$	499	$	-	$	-
Mortgage-backed securities of U.S. government sponsored entities - residential - not due at a single maturity date		3,355		3,349		1,272		1,209
	$	3,853	$	3,848	$	1,272	$	1,209

The Company had no sales of investment securities during the three- and six-month periods ended December 31, 2015 and 2014.

The Company had pledged $2.1 million and $1.1 million of its investment securities at December 31, 2015 and June 30, 2015, respectively.

At December 31, 2015 and June 30, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of the Company’s equity.

On August 1, 2013, the Company reclassified its collateralized mortgage obligation portfolio to held-to-maturity from available-for sale because management intends to hold these securities to maturity. The securities had a total amortized cost of $2.925 million and a corresponding fair value of $2.894 million. The gross unrealized loss on these securities at the date of transfer was $31,000. The unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive loss and is being amortized over the remaining lives of the securities as an adjustment to the yield. The amortization of the remaining holding loss reported in accumulated other comprehensive loss will offset the effect on interest income of the discount for the transferred securities. The remaining unamortized balance of this loss was $18,000 at December 31, 2015.

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and June 30, 2015:

	Less than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
December 31, 2015
Available-for-sale Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,329	$	(8)	$	517	$	(7)	$	1,846	$	(15)
Held-to-maturity Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-		1,209		(63)		1,209		(63)
	$	1,329	$	(8)	$	1,726	$	(70)	$	3,055	$	(78)
June 30, 2015
Available-for-sale Securities:
U.S. Government agencies	$	493	$	(5)	$	-	$	-	$	493	$	(5)
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-		579		(4)		579		(4)
Held-to-maturity Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-		1,480		(71)		1,480		(71)
	$	493	$	(5)	$	2,059	$	(75)	$	2,552	$	(80)

Other-than-temporary Impairment

At December 31, 2015 and June 30, 2015, all of the mortgage-backed securities held by the Company were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Ginnie Mae, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not have the intent, and it is likely that it will not be required, to sell these mortgage-backed securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2015 and June 30, 2015.

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Loans and Allowance for Loan Losses

6 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 3: Loans and Allowance for Loan Losses

Loans at December 31, 2015 and June 30, 2015 include:

	December 31,		June 30,
	2015		2015
	(In thousands)
Real estate loans
One- to four-family residential	$	65,809	$	65,170
Multi-family residential		7,338		6,221
Commercial		17,095		15,908
Construction		3,284		3,041
Consumer and other		232		93
Total loans		93,758		90,433
Less:
Net deferred loan costs		(52)		(47)
Allowance for loan losses		1,620		1,602
Net loans	$	92,190	$	88,878

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three and six months ended December 31, 2015 and the recorded investment in loans and impairment method as of December 31, 2015:

	December 31, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Three Months Ended December 31, 2015
Allowance for loan losses:
Balance, October 1, 2015	$	1,159	$	258	$	2	$	127	$	64		-	$	1,610
Provision for loan losses		4		21		(1)		(11)		(4)		(2)		7
Charge-offs		-		-		-		-		-		-		-
Recoveries		1		-		-		-		-		2		3
Balance, December 31, 2015	$	1,164	$	279	$	1	$	116	$	60	$	-	$	1,620
Six Months Ended December 31, 2015
Allowance for loan losses:
Balance, July 1, 2015	$	1,130	$	287	$	3	$	124	$	58	$	-	$	1,602
Provision for loan losses		32		(8)		(2)		(8)		2		(3)		13
Charge-offs		-		-		-		-		-		-		-
Recoveries		2		-		-		-		-		3		5
Balance, December 31, 2015	$	1,164	$	279	$	1	$	116	$	60	$	-	$	1,620
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	113	$	52	$	-	$	-	$	-	$	-	$	165
Ending balance, collectively evaluated for impairment	$	1,051	$	227	$	1	$	116	$	60	$	-	$	1,455
Loans:
Ending balance	$	54,153	$	11,656	$	7,338	$	17,095	$	3,284	$	232	$	93,758
Ending balance; individually evaluated for impairment	$	1,246	$	275	$	-	$	164	$	-	$	-	$	1,685
Ending balance; collectively evaluated for impairment	$	52,907	$	11,381	$	7,338	$	16,931	$	3,284	$	232	$	92,073

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three and six months ended December 31, 2014:

	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial			Construction		Consumer		Total
	(In thousands)
Three Months Ended December 31, 2014
Allowance for loan losses:
Balance, October 1, 2014	$	1,089	$	267	$	23	$	98		$	62		12	$	1,551
Provision for loan losses		11		15		(21)		47			(23)		(14)		15
Charge-offs		-		-		-		-			-		-		-
Recoveries		5		-		-		-			-		2		7
Balance, December 31, 2014	$	1,105	$	282	$	2	$	145	#	$	39	$	-	$	1,573
Six Months Ended December 31, 2014
Allowance for loan losses:
Balance, July 1, 2014	$	1,065	$	278	$	33	$	105		$	56	$	-	$	1,537
Provision for loan losses		37		4		(31)		40			(17)		(3)		30
Charge-offs		(3)		-		-		-			-		-		(3)
Recoveries		6		-		-		-			-		3		9
Balance, December 31, 2014	$	1,105	$	282	$	2	$	145		$	39	$	-	$	1,573

The following table presents, by portfolio segment, the allowance for loan losses, the recorded investment in loans and impairment method as of June 30, 2015:

	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
June 30, 2015
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	134	$	70	$	-	$	-	$	-	$	-	$	204
Ending balance, collectively evaluated for impairment	$	996	$	217	$	3	$	124	$	58	$	-	$	1,398
Loans:
Ending balance	$	53,795	$	11,375	$	6,221	$	15,908	$	3,041	$	93	$	90,433
Ending balance; individually evaluated for impairment	$	1,294	$	290	$	-	$	153	$	-	$	-	$	1,737
Ending balance; collectively evaluated for impairment	$	52,501	$	11,085	$	6,221	$	15,755	$	3,041	$	93	$	88,696

Internal Risk Categories

The Company has adopted a standard loan grading system for all loans. Loans are selected for a grading review based on certain characteristics, including credit concentrations, subprime criteria and delinquency of 90 days or more. Definitions are as follows:

Pass: These are higher quality loans that do not fit any of the other categories described below.

Special Mention: The loans identified as special mention have an obvious flaw or a potential weakness that deserves special management attention, but which has not yet impacted collectibility. These flaws or weaknesses, if left uncorrected, may result in the deterioration of the prospects of repayment or of the Company’s credit position.

Substandard: These are loans with a well-defined weakness, where the Company has a serious concern about the borrower’s ability to make full repayment if the weaknesses are not corrected. The loan may contain a flaw, which could impact the borrower’s ability to repay, or the borrower’s continuance as a “going concern.” When collateral values are not sufficient to secure the loan and other weaknesses are present, the loan may be rated substandard. A loan will also be rated substandard when full repayment is expected, but it must come from the liquidation of collateral.

Doubtful: These are loans with major defined weaknesses, where future charge-off of a part of the credit is highly likely. The primary repayment source is no longer viable and the viability of the secondary source of repayment is in doubt. The amount of loss is uncertain due to circumstances within the credit that are not yet fully developed and the loan is rated “Doubtful” until the loss can be accurately estimated.

Loss: These are near term charge-offs. Loans classified as loss are considered uncollectible and of such little value that it is not desirable to continue carrying them as assets on the Company’s financial statements, even though partial recovery may be possible at some future time.

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2015 and June 30, 2015:

	December 31, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Pass	$	53,074	$	10,958	$	7,338	$	17,095	$	3,284	$	232	$	91,981
Special mention		-		-		-		-		-		-		-
Substandard		1,079		698		-		-		-		-		1,777
Doubtful		-		-		-		-		-		-		-
Total	$	54,153	$	11,656	$	7,338	$	17,095	$	3,284	$	232	$	93,758

	June 30, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Pass	$	52,668	$	10,659	$	6,221	$	15,908	$	3,041	$	93	$	88,590
Special mention		-		-		-		-		-		-		-
Substandard		1,127		716		-		-		-		-		1,843
Doubtful		-		-		-		-		-		-		-
Total	$	53,795	$	11,375	$	6,221	$	15,908	$	3,041	$	93	$	90,433

The Company has a portfolio of loans designated as subprime, defined as those loans made to borrowers with a credit score below 660. These loans are primarily secured by 1-4 family real estate, including both owner-occupied and non-owner-occupied properties. Subprime loans totaled $6.5 million and $7.8 million at December 31, 2015 and June 30, 2015, respectively. The decrease was due primarily to updated credit reviews of borrowers in the portfolio who no longer met the criteria for subprime credit status.

 

The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the past year.

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2015 and June 30, 2015:

	December 31, 2015
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
1-4 family owner-occupied	$	149	$	70	$	101	$	320	$	53,833	$	54,153	$	-
1-4 family non-owner occupied		384		-		-		384		11,272		11,656		-
Multi-family residential		-		-		-		-		7,338		7,338		-
Commercial		-		-		-		-		17,095		17,095		-
Construction		-		-		-		-		3,284		3,284		-
Consumer and other		-		-		-		-		232		232		-
Total	$	533	$	70	$	101	$	704	$	93,054	$	93,758	$	-

	June 30, 2015
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
1-4 family owner-occupied	$	223	$	-	$	86	$	309	$	53,486	$	53,795	$	-
1-4 family non-owner occupied		-		-		-		-		11,375		11,375		-
Multi-family residential		-		-		-		-		6,221		6,221		-
Commercial		-		-		-		-		15,908		15,908		-
Construction		-		-		-		-		3,041		3,041		-
Consumer and other		-		-		-		-		93		93		-
Total	$	223	$	-	$	86	$	309	$	90,124	$	90,433	$	-

A loan is considered impaired when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming multi-family and commercial loans, but also include loans modified in troubled debt restructurings.

The following table presents impaired loan information as of and for the three and six months ended December 31, 2015:

							For the Three Months Ended				For the Six Months Ended
	As of December 31, 2015						December 31, 2015				December 31, 2015
			Unpaid		Allowance for Loan		Average		Interest		Average		Interest
	Recorded Investment		Principal Balance		Losses Allocated		Recorded Investment		Income Recognized		Recorded Investment		Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Real estate
1-4 family owner-occupied	$	862	$	1,042	$	-	$	773	$	6		805	$	12
1-4 family non-owner occupied		125		152		-		126		-		128		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		164		164		-		150		2		150		5
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Loans with an allowance recorded:
Real estate
1-4 family owner-occupied		384		459		113		376		-		380		-
1-4 family non-owner occupied		150		185		52		152		-		154		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Totals	$	1,685	$	2,002	$	165	$	1,577	$	8	$	1,617	$	17

The following table presents impaired loan information as of June 30, 2015 and for the three and six months ended December 31, 2014:

							For the Three Months Ended				For the Six Months Ended
	As of June 30, 2015						December 31, 2014				December 31, 2014
			Unpaid		Allowance for Loan		Average		Interest		Average		Interest
	Recorded Investment		Principal Balance		Losses Allocated		Recorded Investment		Income Recognized		Recorded Investment		Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Real estate
1-4 family owner-occupied	$	762	$	937	$	-	$	1,110	$	-	$	1,116	$	-
1-4 family non-owner occupied		72		89		-		76		-		77		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		153		168		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Loans with an allowance recorded:
Real estate
1-4 family owner-occupied		532		596		134		656		-		661		-
1-4 family non-owner occupied		218		255		70		230		-		230		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Totals	$	1,737	$	2,045	$	204	$	2,072	$	-	$	2,084	$	-

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality.

The following table presents the Company’s nonaccrual loans at December 31, 2015 and June 30, 2015. The table excludes performing troubled debt restructurings.

	December 31,		June 30,
	2015		2015
	(In thousands)
Real estate
1-4 family owner-occupied	$	748	$	795
1-4 family non-owner occupied		275		290
Multi-family residential		-		-
Commercial		-		-
Construction		-		-
Consumer and other		-		-
Total nonaccrual	$	1,023	$	1,085

At December 31, 2015 and June 30, 2015, the Company had certain loans that were modified in troubled debt restructurings and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate or a permanent reduction of the recorded investment in the loan. The Company had loans modified in a troubled debt restructuring totaling $1.3 million at both December 31, 2015 and June 30, 2015. Troubled debt restructured loans had specific allowances totaling $96,000 and $115,000 at December 31, 2015 and June 30, 2015, respectively. At December 31, 2015, the Company had no commitments to lend additional funds to borrowers with troubled debt restructured loans.

No loans were modified as troubled debt restructurings during either the three and six months ended December 31, 2015 or 2014.

The Company had no troubled debt restructurings modified during the twelve months ended December 31, 2015 or 2014 that subsequently defaulted during the six-month periods ended December 31, 2015 or 2014. A troubled debt restructured loan is considered to be in payment default once it is 30 days contractually past due under the loan’s modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

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Regulatory Matters

6 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Regulatory Matters

Note 4: Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal 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 Company’s 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 the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Effective January 1, 2015, the Bank is subject to the capital requirements set forth by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. Among other things, the rule established a new common equity Tier 1 minimum capital requirement and assigned a higher risk weight (150%) to exposures that are more than 90 days past due, or are on nonaccrual status, and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The final rule also requires unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements, unless a one-time opt-in or opt-out is exercised. The Bank has chosen to exclude unrealized gains and losses from regulatory capital. The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement will be phased in beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer requirement will be effective.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total capital, Tier I capital and Common Equity (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to total average assets (as defined). Management believes, as of December 31, 2015 and June 30, 2015, that the Bank met all capital adequacy requirements to which it is subject.

As of December 31, 2015 and June 30, 2015, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios 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
	(Dollars in thousands)
As of December 31, 2015
Total Capital
(to Risk-Weighted Assets)	$	15,086		21.4	%	$	5,642		8.0	%	$	7,053		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	14,195		20.1	%	$	4,232		6.0	%	$	5,642		8.0	%
Common Equity
(to Risk-Weighted Assets)	$	14,195		20.1	%	$	3,174		4.5	%	$	4,584		6.5	%
Tier I Capital
(to Average Assets)	$	14,195		12.1	%	$	4,690		4.0	%	$	5,863		5.0	%
As of June 30, 2015
Total Capital
(to Risk-Weighted Assets)	$	14,834		23.1	%	$	5,140		8.0	%	$	6,425		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	14,021		21.8	%	$	3,855		6.0	%	$	5,140		8.0	%
Common Equity
(to Risk-Weighted Assets)	$	14,021		21.8	%	$	2,891		4.5	%	$	4,176		6.5	%
Tier I Capital
(to Average Assets)	$	14,021		13.7	%	$	4,089		4.0	%	$	5,112		5.0	%

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Disclosures about Fair Value of Assets and Liabilities

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Disclosures about Fair Value of Assets and Liabilities

Note 5: Disclosures about Fair Value of Assets and Liabilities

Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Recurring Measurements

The following table presents the fair value measurement of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and June 30, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
U.S. Government agency bonds	$	499	$	-	$	499	$	-
Mortgage-backed securities of U.S. of government sponsored entities - residential		3,349		-		3,349		-
	$	3,848	$	-	$	3,848	$	-
June 30, 2015
U. S. Government agency bonds	$	493	$	-	$	493	$	-
Mortgage-backed securities of U.S. of government sponsored entities - residential		3,802		-		3,802		-
	$	4,295	$	-	$	4,295	$	-

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There were no assets classified within Level 3 of the fair value hierarchy measured on a recurring basis. There were no transfers between Level 1 and Level 2 during the periods ended December 31, 2015 and 2014.

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flow. Such securities are classified within Level 2 of the valuation hierarchy.

Nonrecurring Measurements

The following table presents fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which fair value measurements fall at December 31, 2015 and June 30, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
Impaired loans - residential
One-to-four family owner occupied	$	271	$	-	$	-	$	271
One-to-four family non-owner occupied		99		-		-		99
June 30, 2015
Impaired loans - residential
One-to-four family owner occupied	$	270	$	-	$	-	$	270
One-to-four family non-owner occupied		148		-		-		148
Foreclosed assets		104		-		-		104

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Impaired Loans (Collateral Dependent)

The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics.

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements:

	Fair Value at December 31, 2015		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	(In thousands)
Impaired loans (collateral dependent) - one-to-four family owner occupied residential real estate	$	271	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%
Impaired loans (collateral dependent) - one-to-four family non-owner occupied residential real estate	$	99	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%

	Fair Value at June 30, 2015		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	(In thousands)
Impaired loans (collateral dependent) - one-to-four family owner occupied residential real estate	$	270	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%
Impaired loans (collateral dependent) - one-to-four family non-owner occupied residential real estate	$	148	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%
Foreclosed assets	$	104	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%

Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and June 30, 2015.

			Fair Value Measurement Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
December 31, 2015
Financial assets
Cash and cash equivalents	$	8,273	$	8,273	$	-	$	-	$	8,273
Interest-bearing time deposits		2,100		-		2,100		-		2,100
Held-to-maturity securities		1,272		-		1,209		-		1,209
Loans		92,190		-		-		99,493		99,493
Federal Home Loan Bank stock		1,164		n/a		n/a		n/a		n/a
Accrued interest receivable		284		-		284		-		284
Financial liabilities
Deposits		79,732		36,971		43,174				80,145
Federal Home Loan Bank advances		23,085		-		23,035		-		23,035
Accrued interest payable		37		-		37		-		37
June 30, 2015
Financial assets
Cash and cash equivalents	$	3,665	$	3,665	$	-	$	-	$	3,665
Interest-bearing time deposits		3,100		-		3,100		-		3,100
Held-to-maturity securities		1,551		-		1,480		-		1,480
Loans		88,878		-		-		89,561		89,561
Federal Home Loan Bank stock		1,164		n/a		n/a		n/a		n/a
Accrued interest receivable		245		-		245		-		245
Financial liabilities
Deposits		68,524		25,076		43,112		-		68,188
Federal Home Loan Bank advances		22,360		-		21,692		-		21,692
Accrued interest payable		31		-		31		-		31

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

Cash and Cash Equivalents and Interest-bearing Time Deposits

The carrying amount of cash, short-term instruments and time deposits approximate fair value and are classified as Level 1.

Held-to-Maturity Securities

The fair value of held-to-maturity securities was estimated by using pricing models that contain market pricing and information, quoted prices of securities with similar characteristics or discounted cash flows that use credit-adjusted discount rates, resulting in a Level 2 classification.

Loans

Fair values of loans are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values, resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value of collateral as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

Federal Home Loan Bank Stock

It is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability.

Accrued Interest Receivable and Payable

The carrying amounts of accrued interest approximate fair value, resulting in a Level 2 classification.

Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Federal Home Loan Bank Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements, resulting in a Level 2 classification.

Off Balance Sheet Instruments

Fair values of off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

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Accumulated Other Comprehensive Loss

6 Months Ended

Dec. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 6: Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, for the three and six months ended December 31, 2015 and 2014 are as follows:

			Unrealized
	Unrealized		Gains and Losses
	Gains and Losses		on Securities
	on Available		Transferred from
	for Sale		Available for Sale to
	Securities		Held to Maturity		Total
	(In thousands)
Three Months Ended December 31, 2015
Balance, October 1, 2015	$	(81)	$	(18)	$	(99)
Other comprehensive loss		(11)		-		(11)
Balance, December 31, 2015	$	(92)	$	(18)	$	(110)
Three Months Ended December 31, 2014
Balance, October 1, 2014	$	(85)	$	(24)	$	(109)
Other comprehensive income		23		-		23
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		-		2		2
Net current period other comprehensive income (loss)		23		2		25
Balance, December 31, 2014	$	(62)	$	(22)	$	(84)

			Unrealized
	Unrealized		Gains and Losses
	Gains and Losses		on Securities
	on Available		Transferred from
	for Sale		Available for Sale to
	Securities		Held to Maturity		Total
	(In thousands)
Six Months Ended December 31, 2015
Balance, July 1, 2015	$	(73)	$	(18)	$	(91)
Other comprehensive loss		(19)		-		(19)
Balance, December 31, 2015	$	(92)	$	(18)	$	(110)
Six Months Ended December 31, 2014
Balance, July 1, 2014	$	(67)	$	(26)	$	(93)
Other comprehensive income, net of tax		5		-		5
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		-		4		4
Net current period other comprehensive income		5		4		9
Balance, December 31, 2014	$	(62)	$	(22)	$	(84)

There were no material items reclassified from accumulated other comprehensive loss to the statement of income for the three- and six-month periods ended December 31, 2015 and 2014.

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Earnings Per Share

6 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Note 7: Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is calculated by dividing net income applicable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed in a manner similar to that of basic EPS except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated common shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted EPS calculations until they are committed to be released.

Earnings per share for the three months ended December 31, 2015 was $0.03, calculated using 876,163 shares issued, less 70,055 unallocated shares held by the ESOP. Earnings per share for the six months ended December 31, 2015 was $0.09, calculated using 876,163 shares issued, less 70,074 unallocated shares held by the ESOP. The Company had no dilutive or potentially dilutive securities at December 31, 2015.

Earnings per share disclosures are not applicable to the three-and six-month periods ended December 31, 2014, because the Company did not complete the conversion to stock form until January 29, 2015.

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Employee Stock Ownership Plan

6 Months Ended

Dec. 31, 2015

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

Employee Stock Ownership Plan

Note 8: Employee Stock Ownership Plan

As part of the Company’s stock conversion, shares were purchased by the ESOP with a loan from MW Bancorp. All employees of the Bank meeting certain tenure requirements are entitled to participate in the ESOP. Compensation expense related to the ESOP was $15,000 and $28,000 for the three and six month periods ended December 31, 2015, respectively.

 

A summary of the unallocated share activity of the Bank’s ESOP for the six months ended December 31, 2015 is as follows:

Balance, July 1, 2015	70,093
New share purchases	-
Shares released to participants	-
Share allocated to participants	(3,504)
Balance, December 31, 2015	66,589

The stock price at the formation date was $10.00. The aggregate fair value of the 66,589 unallocated shares was $999,000 based on the $15.00 closing price of our common stock on December 31, 2015.

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Directors Deferred Compensation

6 Months Ended

Dec. 31, 2015

Directors Deferred Compensation [Abstract]

Directors Deferred Compensation

Note 9: Directors Deferred Compensation

The Company had a nonqualified Directors Deferred Compensation Plan (the “Plan”) which provided for the payment of benefits upon termination of service with the Company as a director. The Plan specified monthly payments for 10 years based upon 80% of the director’s final year fees upon reaching the retirement age defined by the Plan. On June 25, 2013, the Company elected to terminate and liquidate the Plan. The termination cost was approximately $2.0 million, which was reflected on the Company’s balance sheet at June 30, 2014. The funds were fully disbursed in July 2014 and February 2015.

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Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2015

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 10: Recent Accounting Pronouncements

FASB ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, in January 2014. The amendments in this update provide clarification on when an in-substance repossession or foreclosure occurs, including when a creditor should be considered to have received physical possession of the residential real estate property collateralizing a consumer mortgage loan, and when to derecognize the loan and recognize the foreclosed property. The amendments in this update were effective for public business entities for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. This standard did not have a material impact on the Company’s financial statements.

FASB ASU 2014-09, Revenue from Contracts with Customers. In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that 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. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. Management is currently in the process of evaluating the impact of the amended guidance on the Company’s financial statements.

FASB ASU 2014-11, Transfers and Servicing (Topic 860), Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, was issued in June 2014. The amendments in this Update require disclosures for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. This Update also requires certain disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The accounting changes in this Update were effective for public business entities for the first interim or annual period beginning after December 15, 2014. For public business entities, the disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and for disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This standard did not have a material impact on the Company’s financial statements.

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Change in Corporate Form

6 Months Ended

Dec. 31, 2015

Change In Corporate Form [Abstract]

Change In Corporate Form

Note 11: Change in Corporate Form

On January 29, 2015, the Bank converted into a stock savings bank structure with the establishment of a stock holding company, MW Bancorp, Inc., a Maryland corporation, as parent of the Bank.

The Bank converted to the stock form of ownership, followed by the issuance of all of the Bank’s outstanding stock to the Company. Pursuant to the Plan, the Bank determined the total offering value and number of shares of common stock based upon an independent appraiser’s valuation. The stock was priced at $10.00 per share. In addition, the Bank’s Board of Directors adopted ESOP, which subscribed for 8% of the common stock sold in the offering. Proceeds from the sale of shares totaled $8.8 million. The costs of issuing the common stock were deducted from the sales proceeds of the offering.

At the completion of the conversion to stock form, the Bank established a liquidation account in the amount of retained earnings contained in the final prospectus. The liquidation account will be maintained for the benefits of eligible savings account holders who maintain deposit accounts in the Bank after conversion.

The conversion was accounted for as a change in corporate form with the historic basis of the Bank’s assets, liabilities and equity unchanged as a result.

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Securities (Tables)

6 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2015
U. S. Government agency bonds	$	498	$	1	$	-	$	499
Mortgage-backed securities of U.S. government sponsored entities - residential		3,355		9		(15)		3,349
	$	3,853	$	10	$	(15)	$	3,848
June 30, 2015
U. S. Government agency bonds	$	498	$	-	$	(5)	$	493
Mortgage-backed securities of U.S. government sponsored entities - residential		3,783		23		(4)		3,802
	$	4,281	$	23	$	(9)	$	4,295

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Held-to-maturity Securities:
December 31, 2015
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,272	$	-	$	(63)	$	1,209
June 30, 2015
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,551	$	-	$	(71)	$	1,480

Schedule Of Securities Without Single Maturity Date

Securities not due at a single maturity date are shown separately.

	December 31, 2015
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair  Value
	(In thousands)
U. S. Government agency bonds Due in more than ten years	$	498	$	499	$	-	$	-
Mortgage-backed securities of U.S. government sponsored entities - residential - not due at a single maturity date		3,355		3,349		1,272		1,209
	$	3,853	$	3,848	$	1,272	$	1,209

Schedule of Unrealized Loss on Investments

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and June 30, 2015:

	Less than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
December 31, 2015
Available-for-sale Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential	$	1,329	$	(8)	$	517	$	(7)	$	1,846	$	(15)
Held-to-maturity Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-		1,209		(63)		1,209		(63)
	$	1,329	$	(8)	$	1,726	$	(70)	$	3,055	$	(78)
June 30, 2015
Available-for-sale Securities:
U.S. Government agencies	$	493	$	(5)	$	-	$	-	$	493	$	(5)
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-		579		(4)		579		(4)
Held-to-maturity Securities:
Mortgage-backed securities of U.S. government sponsored entities - residential		-		-		1,480		(71)		1,480		(71)
	$	493	$	(5)	$	2,059	$	(75)	$	2,552	$	(80)

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans at December 31, 2015 and June 30, 2015 include:

	December 31,		June 30,
	2015		2015
	(In thousands)
Real estate loans
One- to four-family residential	$	65,809	$	65,170
Multi-family residential		7,338		6,221
Commercial		17,095		15,908
Construction		3,284		3,041
Consumer and other		232		93
Total loans		93,758		90,433
Less:
Net deferred loan costs		(52)		(47)
Allowance for loan losses		1,620		1,602
Net loans	$	92,190	$	88,878

Allowance for Credit Losses on Financing Receivables

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three and six months ended December 31, 2015 and the recorded investment in loans and impairment method as of December 31, 2015:

	December 31, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Three Months Ended December 31, 2015
Allowance for loan losses:
Balance, October 1, 2015	$	1,159	$	258	$	2	$	127	$	64		-	$	1,610
Provision for loan losses		4		21		(1)		(11)		(4)		(2)		7
Charge-offs		-		-		-		-		-		-		-
Recoveries		1		-		-		-		-		2		3
Balance, December 31, 2015	$	1,164	$	279	$	1	$	116	$	60	$	-	$	1,620
Six Months Ended December 31, 2015
Allowance for loan losses:
Balance, July 1, 2015	$	1,130	$	287	$	3	$	124	$	58	$	-	$	1,602
Provision for loan losses		32		(8)		(2)		(8)		2		(3)		13
Charge-offs		-		-		-		-		-		-		-
Recoveries		2		-		-		-		-		3		5
Balance, December 31, 2015	$	1,164	$	279	$	1	$	116	$	60	$	-	$	1,620
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	113	$	52	$	-	$	-	$	-	$	-	$	165
Ending balance, collectively evaluated for impairment	$	1,051	$	227	$	1	$	116	$	60	$	-	$	1,455
Loans:
Ending balance	$	54,153	$	11,656	$	7,338	$	17,095	$	3,284	$	232	$	93,758
Ending balance; individually evaluated for impairment	$	1,246	$	275	$	-	$	164	$	-	$	-	$	1,685
Ending balance; collectively evaluated for impairment	$	52,907	$	11,381	$	7,338	$	16,931	$	3,284	$	232	$	92,073

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three and six months ended December 31, 2014:

	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial			Construction		Consumer		Total
	(In thousands)
Three Months Ended December 31, 2014
Allowance for loan losses:
Balance, October 1, 2014	$	1,089	$	267	$	23	$	98		$	62		12	$	1,551
Provision for loan losses		11		15		(21)		47			(23)		(14)		15
Charge-offs		-		-		-		-			-		-		-
Recoveries		5		-		-		-			-		2		7
Balance, December 31, 2014	$	1,105	$	282	$	2	$	145	#	$	39	$	-	$	1,573
Six Months Ended December 31, 2014
Allowance for loan losses:
Balance, July 1, 2014	$	1,065	$	278	$	33	$	105		$	56	$	-	$	1,537
Provision for loan losses		37		4		(31)		40			(17)		(3)		30
Charge-offs		(3)		-		-		-			-		-		(3)
Recoveries		6		-		-		-			-		3		9
Balance, December 31, 2014	$	1,105	$	282	$	2	$	145		$	39	$	-	$	1,573

The following table presents, by portfolio segment, the allowance for loan losses, the recorded investment in loans and impairment method as of June 30, 2015:

	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
June 30, 2015
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	134	$	70	$	-	$	-	$	-	$	-	$	204
Ending balance, collectively evaluated for impairment	$	996	$	217	$	3	$	124	$	58	$	-	$	1,398
Loans:
Ending balance	$	53,795	$	11,375	$	6,221	$	15,908	$	3,041	$	93	$	90,433
Ending balance; individually evaluated for impairment	$	1,294	$	290	$	-	$	153	$	-	$	-	$	1,737
Ending balance; collectively evaluated for impairment	$	52,501	$	11,085	$	6,221	$	15,755	$	3,041	$	93	$	88,696

Financing Receivable Credit Quality Indicators

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2015 and June 30, 2015:

	December 31, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Pass	$	53,074	$	10,958	$	7,338	$	17,095	$	3,284	$	232	$	91,981
Special mention		-		-		-		-		-		-		-
Substandard		1,079		698		-		-		-		-		1,777
Doubtful		-		-		-		-		-		-		-
Total	$	54,153	$	11,656	$	7,338	$	17,095	$	3,284	$	232	$	93,758

	June 30, 2015
	Real Estate
	1-4 Family		1-4 Family
	Owner		Non-Owner		Multi-
	Occupied		Occupied		family		Commercial		Construction		Consumer		Total
	(In thousands)
Pass	$	52,668	$	10,659	$	6,221	$	15,908	$	3,041	$	93	$	88,590
Special mention		-		-		-		-		-		-		-
Substandard		1,127		716		-		-		-		-		1,843
Doubtful		-		-		-		-		-		-		-
Total	$	53,795	$	11,375	$	6,221	$	15,908	$	3,041	$	93	$	90,433

Past Due Financing Receivables

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2015 and June 30, 2015:

	December 31, 2015
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
1-4 family owner-occupied	$	149	$	70	$	101	$	320	$	53,833	$	54,153	$	-
1-4 family non-owner occupied		384		-		-		384		11,272		11,656		-
Multi-family residential		-		-		-		-		7,338		7,338		-
Commercial		-		-		-		-		17,095		17,095		-
Construction		-		-		-		-		3,284		3,284		-
Consumer and other		-		-		-		-		232		232		-
Total	$	533	$	70	$	101	$	704	$	93,054	$	93,758	$	-

	June 30, 2015
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
1-4 family owner-occupied	$	223	$	-	$	86	$	309	$	53,486	$	53,795	$	-
1-4 family non-owner occupied		-		-		-		-		11,375		11,375		-
Multi-family residential		-		-		-		-		6,221		6,221		-
Commercial		-		-		-		-		15,908		15,908		-
Construction		-		-		-		-		3,041		3,041		-
Consumer and other		-		-		-		-		93		93		-
Total	$	223	$	-	$	86	$	309	$	90,124	$	90,433	$	-

Impaired Financing Receivables

The following table presents impaired loan information as of and for the three and six months ended December 31, 2015:

							For the Three Months Ended				For the Six Months Ended
	As of December 31, 2015						December 31, 2015				December 31, 2015
			Unpaid		Allowance for Loan		Average		Interest		Average		Interest
	Recorded Investment		Principal Balance		Losses Allocated		Recorded Investment		Income Recognized		Recorded Investment		Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Real estate
1-4 family owner-occupied	$	862	$	1,042	$	-	$	773	$	6		805	$	12
1-4 family non-owner occupied		125		152		-		126		-		128		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		164		164		-		150		2		150		5
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Loans with an allowance recorded:
Real estate
1-4 family owner-occupied		384		459		113		376		-		380		-
1-4 family non-owner occupied		150		185		52		152		-		154		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Totals	$	1,685	$	2,002	$	165	$	1,577	$	8	$	1,617	$	17

The following table presents impaired loan information as of June 30, 2015 and for the three and six months ended December 31, 2014:

							For the Three Months Ended				For the Six Months Ended
	As of June 30, 2015						December 31, 2014				December 31, 2014
			Unpaid		Allowance for Loan		Average		Interest		Average		Interest
	Recorded Investment		Principal Balance		Losses Allocated		Recorded Investment		Income Recognized		Recorded Investment		Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Real estate
1-4 family owner-occupied	$	762	$	937	$	-	$	1,110	$	-	$	1,116	$	-
1-4 family non-owner occupied		72		89		-		76		-		77		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		153		168		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Loans with an allowance recorded:
Real estate
1-4 family owner-occupied		532		596		134		656		-		661		-
1-4 family non-owner occupied		218		255		70		230		-		230		-
Multi-family residential		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-
Consumer and other		-		-		-		-		-		-		-
Totals	$	1,737	$	2,045	$	204	$	2,072	$	-	$	2,084	$	-

Schedule of Financing Receivables, Non Accrual Status

The following table presents the Company’s nonaccrual loans at December 31, 2015 and June 30, 2015. The table excludes performing troubled debt restructurings.

	December 31,		June 30,
	2015		2015
	(In thousands)
Real estate
1-4 family owner-occupied	$	748	$	795
1-4 family non-owner occupied		275		290
Multi-family residential		-		-
Commercial		-		-
Construction		-		-
Consumer and other		-		-
Total nonaccrual	$	1,023	$	1,085

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Regulatory Matters (Tables)

6 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

The Bank’s actual capital amounts and ratios 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
	(Dollars in thousands)
As of December 31, 2015
Total Capital
(to Risk-Weighted Assets)	$	15,086		21.4	%	$	5,642		8.0	%	$	7,053		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	14,195		20.1	%	$	4,232		6.0	%	$	5,642		8.0	%
Common Equity
(to Risk-Weighted Assets)	$	14,195		20.1	%	$	3,174		4.5	%	$	4,584		6.5	%
Tier I Capital
(to Average Assets)	$	14,195		12.1	%	$	4,690		4.0	%	$	5,863		5.0	%
As of June 30, 2015
Total Capital
(to Risk-Weighted Assets)	$	14,834		23.1	%	$	5,140		8.0	%	$	6,425		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	14,021		21.8	%	$	3,855		6.0	%	$	5,140		8.0	%
Common Equity
(to Risk-Weighted Assets)	$	14,021		21.8	%	$	2,891		4.5	%	$	4,176		6.5	%
Tier I Capital
(to Average Assets)	$	14,021		13.7	%	$	4,089		4.0	%	$	5,112		5.0	%

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Disclosures about Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the fair value measurement of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and June 30, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
U.S. Government agency bonds	$	499	$	-	$	499	$	-
Mortgage-backed securities of U.S. of government sponsored entities - residential		3,349		-		3,349		-
	$	3,848	$	-	$	3,848	$	-
June 30, 2015
U. S. Government agency bonds	$	493	$	-	$	493	$	-
Mortgage-backed securities of U.S. of government sponsored entities - residential		3,802		-		3,802		-
	$	4,295	$	-	$	4,295	$	-

Fair Value Measurements, Nonrecurring

The following table presents fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which fair value measurements fall at December 31, 2015 and June 30, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2015
Impaired loans - residential
One-to-four family owner occupied	$	271	$	-	$	-	$	271
One-to-four family non-owner occupied		99		-		-		99
June 30, 2015
Impaired loans - residential
One-to-four family owner occupied	$	270	$	-	$	-	$	270
One-to-four family non-owner occupied		148		-		-		148
Foreclosed assets		104		-		-		104

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements:

	Fair Value at December 31, 2015		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	(In thousands)
Impaired loans (collateral dependent) - one-to-four family owner occupied residential real estate	$	271	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%
Impaired loans (collateral dependent) - one-to-four family non-owner occupied residential real estate	$	99	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%

	Fair Value at June 30, 2015		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	(In thousands)
Impaired loans (collateral dependent) - one-to-four family owner occupied residential real estate	$	270	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%
Impaired loans (collateral dependent) - one-to-four family non-owner occupied residential real estate	$	148	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%
Foreclosed assets	$	104	Sales comparison approach	Adjustment for differences between the comparable real estate sales	10	%

Fair Value, by Balance Sheet Grouping

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and June 30, 2015.

			Fair Value Measurement Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
December 31, 2015
Financial assets
Cash and cash equivalents	$	8,273	$	8,273	$	-	$	-	$	8,273
Interest-bearing time deposits		2,100		-		2,100		-		2,100
Held-to-maturity securities		1,272		-		1,209		-		1,209
Loans		92,190		-		-		99,493		99,493
Federal Home Loan Bank stock		1,164		n/a		n/a		n/a		n/a
Accrued interest receivable		284		-		284		-		284
Financial liabilities
Deposits		79,732		36,971		43,174				80,145
Federal Home Loan Bank advances		23,085		-		23,035		-		23,035
Accrued interest payable		37		-		37		-		37
June 30, 2015
Financial assets
Cash and cash equivalents	$	3,665	$	3,665	$	-	$	-	$	3,665
Interest-bearing time deposits		3,100		-		3,100		-		3,100
Held-to-maturity securities		1,551		-		1,480		-		1,480
Loans		88,878		-		-		89,561		89,561
Federal Home Loan Bank stock		1,164		n/a		n/a		n/a		n/a
Accrued interest receivable		245		-		245		-		245
Financial liabilities
Deposits		68,524		25,076		43,112		-		68,188
Federal Home Loan Bank advances		22,360		-		21,692		-		21,692
Accrued interest payable		31		-		31		-		31

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Dec. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive loss by component, net of tax, for the three and six months ended December 31, 2015 and 2014 are as follows:

			Unrealized
	Unrealized		Gains and Losses
	Gains and Losses		on Securities
	on Available		Transferred from
	for Sale		Available for Sale to
	Securities		Held to Maturity		Total
	(In thousands)
Three Months Ended December 31, 2015
Balance, October 1, 2015	$	(81)	$	(18)	$	(99)
Other comprehensive loss		(11)		-		(11)
Balance, December 31, 2015	$	(92)	$	(18)	$	(110)
Three Months Ended December 31, 2014
Balance, October 1, 2014	$	(85)	$	(24)	$	(109)
Other comprehensive income		23		-		23
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		-		2		2
Net current period other comprehensive income (loss)		23		2		25
Balance, December 31, 2014	$	(62)	$	(22)	$	(84)

			Unrealized
	Unrealized		Gains and Losses
	Gains and Losses		on Securities
	on Available		Transferred from
	for Sale		Available for Sale to
	Securities		Held to Maturity		Total
	(In thousands)
Six Months Ended December 31, 2015
Balance, July 1, 2015	$	(73)	$	(18)	$	(91)
Other comprehensive loss		(19)		-		(19)
Balance, December 31, 2015	$	(92)	$	(18)	$	(110)
Six Months Ended December 31, 2014
Balance, July 1, 2014	$	(67)	$	(26)	$	(93)
Other comprehensive income, net of tax		5		-		5
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		-		4		4
Net current period other comprehensive income		5		4		9
Balance, December 31, 2014	$	(62)	$	(22)	$	(84)

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Employee Stock Ownership Plan (Tables)

6 Months Ended

Dec. 31, 2015

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

Schedule Of Employee Stock Ownership Plan ESOP

A summary of the unallocated share activity of the Bank’s ESOP for the six months ended December 31, 2015 is as follows:

Balance, July 1, 2015	70,093
New share purchases	-
Shares released to participants	-
Share allocated to participants	(3,504)
Balance, December 31, 2015	66,589

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Basis of Presentation (Details Textual)	6 Months Ended
	Dec. 31, 2015 $ / shares shares
Stock Issued During Period, Shares, New Issues | shares	876,163
Share Price | $ / shares	$ 10.00

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Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Available-for-sale Securities:
Amortized Cost	$ 3,853	$ 4,281
Gross Unrealized Gains	10	23
Gross Unrealized Losses	(15)	(9)
Fair Value	3,848	4,295
Held-to-maturity Securities:
Amortized Cost	1,272
Held-to-maturity Securities, Fair Value	1,209	1,480
Mortgage Backed Securities Of U.S. Government Sponsored Entities [Member] | Residential [Member]
Available-for-sale Securities:
Amortized Cost	3,355	3,783
Gross Unrealized Gains	9	23
Gross Unrealized Losses	(15)	(4)
Fair Value	3,349	3,802
Held-to-maturity Securities:
Amortized Cost	1,272	1,551
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(63)	(71)
Held-to-maturity Securities, Fair Value	1,209	1,480
U. S. Government Agency Bonds [Member]
Available-for-sale Securities:
Amortized Cost	498	498
Gross Unrealized Gains	1	0
Gross Unrealized Losses	0	(5)
Fair Value	$ 499	$ 493

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Securities (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Held-to-maturity Securities	$ 1,272	$ 1,551
Held-to-maturity Securities, Fair Value	1,209	1,480
Available-for-sale Securities, Amortized Cost Basis	3,853	4,281
Available-for-sale Securities, Total	3,848	4,295
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	1,272
US Government Agencies Debt Securities [Member]
Available-for-sale Securities,Amortized Cost, Beyond ten years	498
Available-for-sale Securities, Fair Value, Beyond ten years	499
Held-to-maturity Securities, Amortized Cost, Beyond ten years	0
Held-to-maturity Securities, Fair Value, Beyond ten years	0
Available-for-sale Securities, Amortized Cost Basis	498	498
Available-for-sale Securities, Total	499	$ 493
Residential Portfolio Segment [Member] | Collateralized Mortgage Backed Securities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis	3,355
Available-for-sale Securities, Debt Securities	3,349
Held-to-maturity Securities	1,272
Held-to-maturity Securities, Fair Value	$ 1,209

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Securities (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Marketable Securities Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	$ 1,329	$ 493
12 Months or Longer, Fair Value	1,726	2,059
Fair Value	3,055	2,552
Marketable Securities Continuous Unrealized Loss Position Aggregate Loss [Abstract]
Less than 12 Months, Unrealized Losses	(8)	(5)
12 Months or Longer, Unrealized Losses	(70)	(75)
Unrealized Losses	(78)	(80)
Mortgage Backed Securities Of U.S. Government Sponsored Entities [Member] | Residential [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	1,329	0
12 Months or Longer, Fair Value	517	579
Fair Value	1,846	579
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 Months, Unrealized Losses	(8)	0
12 Months or Longer, Unrealized Losses	(7)	(4)
Unrealized Losses	(15)	(4)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 Months, Fair Value	0	0
12 Months or Longer, Fair Value	1,209	1,480
Fair Value	1,209	1,480
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 Months, Unrealized Losses	0	0
12 Months or Longer, Unrealized Losses	(63)	(71)
Unrealized Losses	$ (63)	(71)
US Government Agencies Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value		493
12 Months or Longer, Fair Value		0
Fair Value		493
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Less than 12 Months, Unrealized Losses		(5)
12 Months or Longer, Unrealized Losses		0
Unrealized Losses		$ (5)

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Securities (Details Textual) - USD ($)	6 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Schedule of Held-to-maturity Securities [Line Items]
Percentage Of Securities Holdings Description	At December 31, 2015 and June 30, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of the Companys equity.
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 1,272,000
Held-to-maturity Securities, Fair Value	1,209,000	$ 1,480,000
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value, Total	2,100,000	$ 1,100,000
Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,925,000
Held-to-maturity Securities, Fair Value	2,894,000
Other Comprehensive Income Loss, Transfers from Available for Sale Securities to Held to maturity before Tax	31,000
Other Comprehensive Income (Loss) Remaining Unamortized Balance Transfers From Available For Sale Securities To Held To Maturity Before Tax	$ 18,000

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Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 93,758		$ 90,433
Less:
Net deferred loan costs	(52)		(47)
Allowance for loan losses	1,620	$ 1,610	1,602	$ 1,573	$ 1,551	$ 1,537
Net loans	92,190		88,878
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	17,095		15,908
One-to-four-family residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	65,809		65,170
Multi-family residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	7,338		6,221
Less:
Allowance for loan losses	1	$ 2	3	$ 2	$ 23	$ 33
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,284		3,041
Consumer and other Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 232		$ 93

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Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Allowance for loan losses:
Beginning Balance	$ 1,610	$ 1,551	$ 1,602	$ 1,537
Provision for loan losses	7	15	13	30
Charge-offs	0	0	0	(3)
Recoveries	3	7	5	9
Ending Balance	1,620	1,573	1,620	1,573
1-4 Family Owner Occupied [Member]
Allowance for loan losses:
Beginning Balance	1,159	1,089	1,130	1,065
Provision for loan losses	4	11	32	37
Charge-offs	0	0	0	(3)
Recoveries	1	5	2	6
Ending Balance	1,164	1,105	1,164	1,105
1-4 Family Non-Owner Occupied [Member]
Allowance for loan losses:
Beginning Balance	258	267	287	278
Provision for loan losses	21	15	(8)	4
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	279	282	279	282
Multi-family [Member]
Allowance for loan losses:
Beginning Balance	2	23	3	33
Provision for loan losses	(1)	(21)	(2)	(31)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	1	2	1	2
Commercial [Member]
Allowance for loan losses:
Beginning Balance	127	98	124	105
Provision for loan losses	(11)	47	(8)	40
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	116	145	116	145
Construction [Member]
Allowance for loan losses:
Beginning Balance	64	62	58	56
Provision for loan losses	(4)	(23)	2	(17)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	60	39	60	39
Consumer [Member]
Allowance for loan losses:
Beginning Balance	0	12	0	0
Provision for loan losses	(2)	(14)	(3)	(3)
Charge-offs	0	0	0	0
Recoveries	2	2	3	3
Ending Balance	$ 0	$ 0	$ 0	$ 0

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Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$ 165	$ 204
Ending balance, collectively evaluated for impairment	1,455	1,398
Loans:
Ending balance	93,758	90,433
Ending balance; individually evaluated for impairment	1,685	1,737
Ending balance; collectively evaluated for impairment	92,073	88,696
1-4 Family Owner Occupied [Member]
Allowance for loan losses:
Ending balance, individually evaluated for impairment	113	134
Ending balance, collectively evaluated for impairment	1,051	996
Loans:
Ending balance	54,153	53,795
Ending balance; individually evaluated for impairment	1,246	1,294
Ending balance; collectively evaluated for impairment	52,907	52,501
1-4 Family Non-Owner Occupied [Member]
Allowance for loan losses:
Ending balance, individually evaluated for impairment	52	70
Ending balance, collectively evaluated for impairment	227	217
Loans:
Ending balance	11,656	11,375
Ending balance; individually evaluated for impairment	275	290
Ending balance; collectively evaluated for impairment	11,381	11,085
Multi-family [Member]
Allowance for loan losses:
Ending balance, individually evaluated for impairment	0	0
Ending balance, collectively evaluated for impairment	1	3
Loans:
Ending balance	7,338	6,221
Ending balance; individually evaluated for impairment	0	0
Ending balance; collectively evaluated for impairment	7,338	6,221
Commercial [Member]
Allowance for loan losses:
Ending balance, individually evaluated for impairment	0	0
Ending balance, collectively evaluated for impairment	116	124
Loans:
Ending balance	17,095	15,908
Ending balance; individually evaluated for impairment	164	153
Ending balance; collectively evaluated for impairment	16,931	15,755
Construction [Member]
Allowance for loan losses:
Ending balance, individually evaluated for impairment	0	0
Ending balance, collectively evaluated for impairment	60	58
Loans:
Ending balance	3,284	3,041
Ending balance; individually evaluated for impairment	0	0
Ending balance; collectively evaluated for impairment	3,284	3,041
Consumer [Member]
Allowance for loan losses:
Ending balance, individually evaluated for impairment	0	0
Ending balance, collectively evaluated for impairment	0	0
Loans:
Ending balance	232	93
Ending balance; individually evaluated for impairment	0	0
Ending balance; collectively evaluated for impairment	$ 232	$ 93

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Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	$ 93,758	$ 90,433
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	91,981	88,590
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,777	1,843
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
1-4 Family Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	54,153	53,795
1-4 Family Owner Occupied [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	53,074	52,668
1-4 Family Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
1-4 Family Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,079	1,127
1-4 Family Owner Occupied [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
1-4 Family Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	11,656	11,375
1-4 Family Non-Owner Occupied [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	10,958	10,659
1-4 Family Non-Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
1-4 Family Non-Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	698	716
1-4 Family Non-Owner Occupied [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Multi-family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	7,338	6,221
Multi-family [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	7,338	6,221
Multi-family [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Multi-family [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Multi-family [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	17,095	15,908
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	17,095	15,908
Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	3,284	3,041
Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	3,284	3,041
Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Construction [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	232	93
Consumer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	232	93
Consumer [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Consumer [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	0	0
Consumer [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	$ 0	$ 0

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Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 704	$ 309
Current	93,054	90,124
Total Loans Receivable	93,758	90,433
Total Loans > 90 Days & Accruing	0	0
30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	533	223
60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	70	0
Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	101	86
1-4 Family Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	320	309
Current	53,833	53,486
Total Loans Receivable	54,153	53,795
Total Loans > 90 Days & Accruing	0	0
1-4 Family Owner Occupied [Member] | 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	149	223
1-4 Family Owner Occupied [Member] | 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	70	0
1-4 Family Owner Occupied [Member] | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	101	86
1-4 Family Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	384	0
Current	11,272	11,375
Total Loans Receivable	11,656	11,375
Total Loans > 90 Days & Accruing	0	0
1-4 Family Non-Owner Occupied [Member] | 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	384	0
1-4 Family Non-Owner Occupied [Member] | 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
1-4 Family Non-Owner Occupied [Member] | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Multi-family residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	7,338	6,221
Total Loans Receivable	7,338	6,221
Total Loans > 90 Days & Accruing	0	0
Multi-family residential [Member] | 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Multi-family residential [Member] | 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Multi-family residential [Member] | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	17,095	15,908
Total Loans Receivable	17,095	15,908
Total Loans > 90 Days & Accruing	0	0
Commercial [Member] | 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial [Member] | 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial [Member] | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	3,284	3,041
Total Loans Receivable	3,284	3,041
Total Loans > 90 Days & Accruing	0	0
Construction [Member] | 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction [Member] | 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction [Member] | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer and other Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	232	93
Total Loans Receivable	232	93
Total Loans > 90 Days & Accruing	0	0
Consumer and other Member] | 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer and other Member] | 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer and other Member] | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 0	$ 0

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Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Loans with an allowance recorded:
Allowance for Loan Losses Allocated	$ 165		$ 165		$ 204
Recorded Investment, Total	1,685		1,685		1,737
Unpaid Principal Balance, Total	2,002		2,002		2,045
Average Recorded Investment, Total	1,577	$ 2,072	1,617	$ 2,084
Interest Income Recognized, Total	8	0	17	0
1-4 Family Owner Occupied [Member]
Loans with no related allowance recorded:
Recorded Investment	862		862		762
Unpaid Principal Balance	1,042		1,042		937
Average Recorded Investment	773	1,110	805	1,116
Interest Income Recognized	6	0	12	0
Loans with an allowance recorded:
Recorded Investment	384		384		532
Unpaid Principal Balance	459		459		596
Allowance for Loan Losses Allocated	113		113		134
Average Recorded Investment	376	656	380	661
Interest Income Recognized	0	0	0	0
1-4 Family Non-Owner Occupied [Member]
Loans with no related allowance recorded:
Recorded Investment	125		125		72
Unpaid Principal Balance	152		152		89
Average Recorded Investment	126	76	128	77
Interest Income Recognized	0	0	0	0
Loans with an allowance recorded:
Recorded Investment	150		150		218
Unpaid Principal Balance	185		185		255
Allowance for Loan Losses Allocated	52		52		70
Average Recorded Investment	152	230	154	230
Interest Income Recognized	0	0	0	0
Multi-family residential [Member]
Loans with no related allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Loans with an allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Allowance for Loan Losses Allocated	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Commercial [Member]
Loans with no related allowance recorded:
Recorded Investment	164		164		153
Unpaid Principal Balance	164		164		168
Average Recorded Investment	150	0	150	0
Interest Income Recognized	2	0	5	0
Loans with an allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Allowance for Loan Losses Allocated	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Construction [Member]
Loans with no related allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Loans with an allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Allowance for Loan Losses Allocated	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Consumer and other [Member]
Loans with no related allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Loans with an allowance recorded:
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Allowance for Loan Losses Allocated	0		0		$ 0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	$ 0	$ 0	$ 0	$ 0

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Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Nonaccrual Loans [Line Items]
Nonaccrual loans	$ 1,023	$ 1,085
1-4 Family Owner Occupied [Member]
Nonaccrual Loans [Line Items]
Nonaccrual loans	748	795
1-4 Family Non-Owner Occupied [Member]
Nonaccrual Loans [Line Items]
Nonaccrual loans	275	290
Multi-family residential [Member]
Nonaccrual Loans [Line Items]
Nonaccrual loans	0	0
Commercial [Member]
Nonaccrual Loans [Line Items]
Nonaccrual loans	0	0
Construction [Member]
Nonaccrual Loans [Line Items]
Nonaccrual loans	0	0
Consumer and other Member]
Nonaccrual Loans [Line Items]
Nonaccrual loans	$ 0	$ 0

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Loans and Allowance for Loan Losses (Details Textual) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Loans and Leases Receivable, Gross	$ 93,758,000	$ 90,433,000
Financing Receivable, Modifications, Recorded Investment	1,300,000	1,300,000
Allowance for Credit Losses, Change in Method of Calculating Impairment	96,000	115,000
Residential Portfolio Segment [Member]
Loans and Leases Receivable, Gross	$ 6,500,000	$ 7,800,000

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Regulatory Matters (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Total Capital (to Risk-Weighted Assets)
Actual Amount	$ 15,086	$ 14,834
Actual Ratio	21.40%	23.10%
For Capital Adequacy Purposes Amount	$ 5,642	$ 5,140
For Capital Adequacy Purposes Ratio	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 7,053	$ 6,425
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Tier I Capital (to Average Assets)
Actual Amount	$ 14,195	$ 14,021
Actual Ratio	12.10%	13.70%
For Capital Adequacy Purposes Amount	$ 4,690	$ 4,089
For Capital Adequacy Purposes Ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 5,863	$ 5,112
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%
Tier I Capital (to Risk-Weighted Assets)
Actual Amount	$ 14,195	$ 14,021
Actual Ratio	20.10%	21.80%
For Capital Adequacy Purposes Amount	$ 4,232	$ 3,855
For Capital Adequacy Purposes Ratio	6.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 5,642	$ 5,140
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	8.00%	8.00%
Common Equity (to Risk-Weighted Assets)
Actual Amount	$ 14,195	$ 14,021
Actual Ratio	20.10%	21.80%
For Capital Adequacy Purposes Amount	$ 3,174	$ 2,891
For Capital Adequacy Purposes Ratio	4.50%	4.50%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 4,584	$ 4,176
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.50%	6.50%

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Regulatory Matters (Details Textual)	6 Months Ended
	Dec. 31, 2015
Higher Risk Weight Percentage	150.00%
Capital Conservation Buffer Percentage	2.50%

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Disclosures about Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	$ 3,848	$ 4,295
Mortgage Backed Securities Of U.S. Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	3,349	3,802
U. S. Government Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	499	493
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities Of U.S. Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U. S. Government Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	3,848	4,295
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities Of U.S. Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	3,349	3,802
Significant Other Observable Inputs (Level 2) [Member] | U. S. Government Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	499	493
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Backed Securities Of U.S. Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | U. S. Government Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Recurring	$ 0	$ 0

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Disclosures about Fair Value of Assets and Liabilities (Details 1) - Impaired Loans [Member] - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
1-4 Family Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	$ 271	$ 270
1-4 Family Non-Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	99	148
1-4 Family Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring		104
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | 1-4 Family Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | 1-4 Family Non-Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | 1-4 Family Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring		0
Significant Other Observable Inputs (Level 2) [Member] | 1-4 Family Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | 1-4 Family Non-Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | 1-4 Family Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring		0
Significant Unobservable Inputs (Level 3) [Member] | 1-4 Family Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	271	270
Significant Unobservable Inputs (Level 3) [Member] | 1-4 Family Non-Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	$ 99	148
Significant Unobservable Inputs (Level 3) [Member] | 1-4 Family Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring		$ 104

XML

Disclosures about Fair Value of Assets and Liabilities (Details 2) - Impaired Loans [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
1-4 Family Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	$ 271	$ 270
Fair Value Measurements, Valuation Techniques	Sales comparison approach	Sales comparison approach
Fair Value Measurements, Unobservable Inputs	Adjustment for differences between the comparable real estate sales	Adjustment for differences between the comparable real estate sales
Fair Value Measurements, Range	10.00%	10.00%
1-4 Family Non-Owner Occupied [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring	$ 99	$ 148
Fair Value Measurements, Valuation Techniques	Sales comparison approach	Sales comparison approach
Fair Value Measurements, Unobservable Inputs	Adjustment for differences between the comparable real estate sales	Adjustment for differences between the comparable real estate sales
Fair Value Measurements, Range	10.00%	10.00%
1-4 Family Foreclosed Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Nonrecurring		$ 104
Fair Value Measurements, Valuation Techniques		Sales comparison approach
Fair Value Measurements, Unobservable Inputs		Adjustment for differences between the comparable real estate sales
Fair Value Measurements, Range		10.00%

XML

Disclosures about Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Financial assets
Cash and cash equivalents	$ 8,273	$ 3,665
Interest-bearing time deposits	2,100	3,100
Held-to-maturity securities	1,209	1,480
Loans	99,493	89,561
Accrued interest receivable	284	245
Financial liabilities
Deposits	80,145	68,188
Federal Home Loan Bank advances	23,035	21,692
Accrued interest payable	37	31
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets
Cash and cash equivalents	8,273	3,665
Interest-bearing time deposits	0	0
Held-to-maturity securities	0	0
Loans	0	0
Accrued interest receivable	0	0
Financial liabilities
Deposits	36,971	25,076
Federal Home Loan Bank advances	0	0
Accrued interest payable	0	0
Significant Other Observable Inputs (Level 2) [Member]
Financial assets
Cash and cash equivalents	0	0
Interest-bearing time deposits	2,100	3,100
Held-to-maturity securities	1,209	1,480
Loans	0	0
Accrued interest receivable	284	245
Financial liabilities
Deposits	43,174	43,112
Federal Home Loan Bank advances	23,035	21,692
Accrued interest payable	37	31
Significant Unobservable Inputs (Level 3) [Member]
Financial assets
Cash and cash equivalents	0	0
Interest-bearing time deposits	0	0
Held-to-maturity securities	0	0
Loans	99,493	89,561
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Federal Home Loan Bank advances	0	0
Accrued interest payable	0	0
Carrying Amount [Member]
Financial assets
Cash and cash equivalents	8,273	3,665
Interest-bearing time deposits	2,100	3,100
Held-to-maturity securities	1,272	1,551
Loans	92,190	88,878
Federal Home Loan Bank stock	1,164	1,164
Accrued interest receivable	284	245
Financial liabilities
Deposits	79,732	68,524
Federal Home Loan Bank advances	23,085	22,360
Accrued interest payable	$ 37	$ 31

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (99)	$ (109)	$ (91)	$ (93)
Other comprehensive loss	(11)	23	(19)	5
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		2		4
Net current period other comprehensive income (loss)		25		9
Ending balance	(110)	(84)	(110)	(84)
Unrealized Gains and Losses on Available for Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(81)	(85)	(73)	(67)
Other comprehensive loss	(11)	23	(19)	5
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		0		0
Net current period other comprehensive income (loss)		23		5
Ending balance	(92)	(62)	(92)	(62)
Unrealized gains and losses on securities transferred from Available for Sale to Held to Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(18)	(24)	(18)	(26)
Other comprehensive loss	0	0	0	0
Accretion of unrealized losses on securities transferred from available for sale to held to maturity recognized in other comprehensive income		2		4
Net current period other comprehensive income (loss)		2		4
Ending balance	$ (18)	$ (22)	$ (18)	$ (22)

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Earnings Per Share (Details Textual) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Earnings Per Share [Line Items]
Earnings Per Share, Basic and Diluted	$ 0.03	$ 0	$ 0.09	$ 0
Common Stock, Shares, Issued	876,163		876,163		876,163
Employee Stock Ownership Plan ESOP Number Of Unallocated Shares	70,055		70,074

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Employee Stock Ownership Plan (Details)	6 Months Ended
	Dec. 31, 2015 shares
Balance, beginning of year (in shares)	70,093
New share purchases (in shares)	0
Shares released to participants (in shares)	0
Share allocated to participants (in shares)	(3,504)
Balance, end of period (in shares)	66,589

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Employee Stock Ownership Plan (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Jun. 30, 2015	Jan. 29, 2015
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased		$ 10.00
Employee Stock Ownership Plan (ESOP), Shares in ESOP	66,589	66,589	70,093
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value	$ 999,000	$ 999,000
Sale of Stock, Price Per Share				$ 10.00
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 15,000	$ 28,000
Common Stock [Member]
Sale of Stock, Price Per Share	$ 15.00	$ 15.00

XML

Directors Deferred Compensation (Details Textual) $ in Millions	6 Months Ended
	Dec. 31, 2015 USD ($)
Percentage of Director Final Year Fees	80.00%
Estimated for Termination Cost	$ 2.0

XML

Change in Corporate Form (Details Textual) $ / shares in Units, $ in Millions	1 Months Ended
	Jan. 29, 2015 USD ($) $ / shares
Change In Corporate Form [Line Items]
Sale of Stock, Price Per Share | $ / shares	$ 10.00
Sale of Stock, Percentage of Ownership after Transaction	8.00%
Escrow Deposit | $	$ 8.8