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 June 30, 2016.

Or

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

For the transition period from ______________ to ______________.

Commission file number: 000-55290

PILGRIM BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Maryland	46-5110553
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

40 South Main Street, Cohasset, Massachusetts	02025
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (781) 383-0541

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 par value

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 website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). YES x NO ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See 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
(Do not check if a smaller reporting company)

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

As of August 1, 2016, there were issued and outstanding 2,260,439 shares of the Registrant’s Common Stock with a par value of $0.01 per share.

Pilgrim Bancshares, Inc.

Form 10-Q

Index

		Page
Part I. Financial Information
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets as of June 30, 2016 (unaudited) and December 31, 2015	3
	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2016 and June 30, 2015 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2016 and June 30, 2015 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2016 and June 30, 2015 (unaudited)	6
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and June 30, 2015 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37
Item 4.	Controls and Procedures	37
Part II. Other Information
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	38
	Signature Page	39

2

Part I. – Financial Information

PILGRIM BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(In Thousands, except share data)

	June 30,			December 31,
	2016			2015
	(unaudited)
ASSETS
Cash and due from banks	$	1,662		$	2,351
Interest-bearing demand deposits with other banks		6,474			8,319
Total cash and cash equivalents		8,136			10,670
Interest-bearing time deposits with other banks		1,087			1,087
Investments in available-for-sale securities (at fair value)		17,040			16,556
Investments in held-to-maturity securities (fair value of $140 at June 30, 2016, and $155 at December 31, 2015)		110			120
Federal Home Loan Bank stock, at cost		1,152			971
Investment in The Co-operative Central Reserve Fund, at cost		384			384
Loans, net of allowance for loan losses of  $951 at June 30, 2016, and $886 at December 31, 2015		191,629			170,427
Premises and equipment, net		5,035			5,177
Investment in real estate, net		1,556			1,578
Accrued interest receivable		543			508
Deferred income tax asset, net		403			496
Bank-owned life insurance		2,297			2,276
Other assets		325			257
Total assets	$	229,697		$	210,507
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	17,482		$	15,290
Interest-bearing		165,116			154,082
Total deposits		182,598			169,372
Federal Home Loan Bank advances		14,500			8,500
Other liabilities		524			666
Total liabilities		197,622			178,538
Stockholders' equity:
Common stock $.01 par value per share: 10,000,000 shares authorized, 2,260,439 shares issued at June 30, 2016 and 2,224,489 shares issued at December 31, 2015		23			22
Additional paid-in capital		20,936			20,466
Retained earnings		13,594			13,253
Unearned compensation - ESOP (164,822shares unallocated at June 30, 2016 and 167,819 shares unallocated at December 31, 2015)		(1,648	)		(1,679	)
Unearned compensation - Restricted Stock (70,950 shares non-vested at June 30, 2016)		(897	)		-
Accumulated other comprehensive income (loss)		67			(93	)
Total stockholders' equity		32,075			31,969
Total liabilities and stockholders' equity	$	229,697		$	210,507

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

3

PILGRIM BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, except share and per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(unaudited)				(unaudited)
Interest and dividend income:
Interest and fees on loans	$	1,838	$	1,609	$	3,610	$	3,143
Interest on debt securities:
Taxable		54		45		106		86
Tax-exempt		13		17		27		34
Other interest and dividends		23		11		51		25
Total interest and dividend income		1,928		1,682		3,794		3,288
Interest expense:
Interest on deposits		347		238		675		479
Interest on Federal Home Loan Bank advances		27		15		51		28
Total interest expense		374		253		726		507
Net interest and dividend income		1,554		1,429		3,068		2,781
Provision for loan losses		36		38		72		60
Net interest and dividend income after provision for loan losses		1,518		1,391		2,996		2,721
Noninterest income:
Service charges on deposit accounts		28		32		54		60
Gain on sales/calls of securities, net		3		-		3		-
Gain on sales of loans, net		17		3		34		37
Rental income		67		64		134		131
Other income		31		34		68		64
Total noninterest income		146		133		293		292
Noninterest expense:
Salaries and employee benefits		815		739		1,620		1,510
Occupancy expense		125		135		260		298
Equipment expense		47		45		94		93
Data processing expense		101		89		197		177
Professional fees		101		103		199		196
Federal Deposit Insurance Corporation assessment		38		34		74		71
Communications expense		22		30		64		60
Advertising and public relations expense		29		40		63		56
Insurance expense		15		20		30		40
Supplies expense		13		17		29		32
Other expense		59		61		113		124
Total noninterest expense		1,365		1,313		2,743		2,657
Income before income taxes		299		211		546		356
Income tax expense		114		77		205		121
Net income	$	185	$	134	$	341	$	235
Weighted-average number of common shares outstanding:
Basic		2,023,918		2,076,024		2,027,338		2,075,274
Diluted		2,023,990		2,076,024		2,027,400		2,075,274
Earnings per share:
Basic	$	0.09	$	0.06	$	0.17	$	0.11
Diluted	$	0.09	$	0.06	$	0.17	$	0.11

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

4

PILGRIM BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

	Three Months Ended June 30,						Six Months Ended June  30,
	2016			2015			2016			2015
	(unaudited)						(unaudited)
Net income	$	185		$	134		$	341		$	235
Other comprehensive income (loss), net of tax:
Net unrealized holding gain (loss) on available-for-sale securities		89			(110	)		256			(46	)
Reclassification adjustment for net realized gains in net income (1)		(3	)		-			(3	)		-
Other comprehensive income (loss) before income tax effect		86			(110	)		253			(46	)
Income tax (expense) benefit		(32	)		41			(93	)		17
Other comprehensive income (loss), net of tax		54			(69	)		160			(29	)
Comprehensive income	$	239		$	65		$	501		$	206

(1) Reclassification adjustments are comprised of realized security gains. The gains have been reclassified out of accumulated other comprehensive income and have affected certain lines in the consolidated statements of income as follows: the pre-tax amount is included in gain on sales/calls of securities, net; the tax expense amount, which was immaterial for the three and six months ended June 30, 2016, is included in income tax expense, and the after tax amount is included in net income.

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

5

PILGRIM BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Six Months Ended June 30, 2016 and 2015 (unaudited)

(In Thousands, except share data)

																	Accumulated
	Common					Additional					Unearned			Unearned			Other
	Stock					Paid-in			Retained		Compensation-			Compensation-			Comprehensive
	Shares			Amount		Capital			Earnings		ESOP			Restricted Stock			(Loss) Income			Total
Balance, December 31, 2014		2,247,589		$	22	$	20,770		$	12,599	$	(1,738	)	$	-		$	(51	)	$	31,602
Net income		-			-		-			235		-			-			-			235
Common stock held by ESOP committed to be allocated (2,997 shares)		-			-		5			-		30			-			-			35
Other comprehensive loss, net of tax effect		-			-		-			-		-			-			(29	)		(29	)
Issuance costs related to initial public offering		-			-		(16	)		-		-			-			-			(16	)
Balance, June 30, 2015		2,247,589		$	22	$	20,759		$	12,834	$	(1,708	)	$	-		$	(80	)	$	31,827
Balance, December 31, 2015		2,224,489		$	22	$	20,466		$	13,253	$	(1,679	)	$	-		$	(93	)	$	31,969
Net income		-			-		-			341		-			-			-			341
Common stock held by ESOP committed to be allocated (2,997 shares)		-			-		8			-		31			-			-			39
Restricted stock granted in connection with equity incentive plan		70,950			1		911			-		-			(912	)		-			-
Share based compensation-restricted stock		-			-		-			-		-			15			-			15
Share based compensation-options		-			-		10			-		-			-			-			10
Shares purchased and retired		(35,000	)		-		(459	)		-		-			-			-			(459	)
Other comprehensive income, net of tax effect		-			-		-			-		-			-			160			160
Balance, June 30, 2016		2,260,439		$	23	$	20,936		$	13,594	$	(1,648	)	$	(897	)	$	67		$	32,075

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

6

PILGRIM BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

	Six Months Ended June 30,
	2016			2015
Cash flows from operating activities:
Net income	$	341		$	235
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		72			60
Capitalized - interest-interest-bearing deposits		-			(5	)
Amortization of securities, net		40			43
Gain on sales/call  of securities, net		(3	)		-
Loans originated for sale		(1,788	)		(1,260	)
Proceeds from sales of loans originated for sale		1,822			1,297
Gain on sales of loans		(34	)		(37	)
Change in deferred origination fees, costs and discounts		(145	)		(2	)
Depreciation and amortization		167			171
Stock based compensation expense		64			35
Increase in accrued interest receivable		(35	)		(8	)
Increase in bank-owned life insurance		(21	)		(24	)
Decrease in other assets		(68	)		31
Decrease in other liabilities		(142	)		(19	)
Net cash provided by operating activities		270			517
Cash flows from investing activities:
Proceeds from redemption and maturities of interest-bearing time deposits		-			1,500
Purchase of Federal Home Loan Bank stock		(260	)		(137	)
Redemption of Federal Home Loan Bank stock		79			-
Purchases of available-for-sale securities		(3,440	)		(2,787	)
Proceeds from maturities/calls/pay downs of available-for-sale securities		3,167			986
Proceeds from maturities of held-to-maturity securities		15			19
Loan principal originations and collections, net		(6,389	)		(9,725	)
Loans purchased		(19,775	)		(8,055	)
Loan participations sold		5,035			1,650
Capital expenditures		(3	)		(43	)
Net cash used in investing activities		(21,571	)		(16,592	)
Cash flows from financing activities:
Net increase in demand deposits, NOW and savings accounts		3,199			2,021
Net increase (decrease) in time deposits		10,027			(1,328	)
Payments on Federal Home Loan Bank long-term advances		-			(500	)
Proceeds from Federal Home Loan Bank long-term advances		6,000			5,500
Net change in short-term Federal Home Loan Bank advances		-			(1,000	)
Issuance costs related to initial public offering		-			(16	)
Purchase and retirement of common stock		(459	)		-
Net cash provided by financing activities		18,767			4,677
Net decrease in cash and cash equivalents		(2,534	)		(11,398	)
Cash and cash equivalents at beginning of period		10,670			18,295
Cash and cash equivalents at end of period	$	8,136		$	6,897
Supplemental disclosures:
Interest paid	$	725		$	504
Income taxes paid		416			83

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

7

PILGRIM BANCSHARES, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

NOTE 1 - NATURE OF OPERATIONS

Pilgrim Bancshares, Inc. (the “Company”), was incorporated in February 2014 under the laws of the State of Maryland. The Company owns all of the outstanding shares of common stock of Pilgrim Bank (the “Bank”). The Bank is a Massachusetts chartered stock bank which was incorporated in 1916 and is headquartered in Cohasset, Massachusetts. The Bank operates its business from three banking offices located in Massachusetts. The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in residential and commercial real estate loans, and in commercial, consumer and small business loans. The Bank is subject to the regulations of, and periodic examination by, the Massachusetts Division of Banks (“DOB”) and the Federal Deposit Insurance Corporation (“the FDIC”).

NOTE 2 - BASIS OF PRESENTATION

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 48 South Main Street Corporation, which was formed to hold securities for its own account; 40 South Main Street Realty Trust, which was formed to hold our main office; and 800 CJC Realty Corporation, which was formed to invest in and develop residential and commercial property. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. Information included herein as of June 30, 2016 and for the interim periods ended June 30, 2016 and 2015 is unaudited; however, in the opinion of management, all adjustments considered necessary for a fair presentation have been included and were of a normal recurring nature. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire year or any other interim period.

These statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of securities and the valuation of deferred tax assets.

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

As an “emerging growth company,” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of June 30, 2016, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and makes targeted improvements to GAAP as follows:

8

1. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same manner.

2. Simplify the impairment assessment of equity investments without determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.

3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.

4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

5. Require an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.

6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.

7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.

Under the extended transition period for an emerging growth company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of item 5 above is permitted as of beginning of the fiscal years or interim periods for which financial statements have not been issued. Early adoption of all other amendments in this ASU is not permitted. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU was issued to increase transparency and comparability among organizations by requiring reporting entities to recognize all leases, including operating, as lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting.” The ASU simplifies several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements.

9

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).”  The amendments in this ASU affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income.  The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date.  To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  This ASU also requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a reporting entity’s portfolio.  Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.  Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021.  All entities may adopt the amendments in this ASU earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach).  The Company is currently reviewing the amendments in this ASU to determine the impact on its consolidated financial statements.

NOTE 4 - EARNINGS PER SHARE (EPS)

The Company has adopted the EPS guidance included in Accounting Standards Codification (“ASC”) 260-10. As presented below, basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For purposes of computing diluted EPS, the treasury stock method is used.

Unallocated ESOP shares are not deemed outstanding for earnings per share calculations.

EPS for the three and six months ended June 30, 2016 and 2015 (unaudited) have been computed based on the following:

	Three Months Ended June 30,						Six Months Ended June  30,
	2016			2015			2016			2015
Net income (In thousands)	$	185		$	134		$	341		$	235
Basic and diluted common shares:
Weighted average common shares outstanding		2,189,489			2,247,589			2,193,659			2,247,589
Weighted average unallocated ESOP shares		(165,571	)		(171,565	)		(166,321	)		(172,315	)
Basic weighted average shares outstanding		2,023,918			2,076,024			2,027,338			2,075,274
Dilutive potential common shares-options		-			-			-			-
Dilutive effect of unearned restricted stock		72			-			62			-
Diluted weighted average shares outstanding		2,023,990			2,076,024			2,027,400			2,075,274
Basic earnings per share	$	0.09		$	0.06		$	0.17		$	0.11
Diluted earnings per share	$	0.09		$	0.06		$	0.17		$	0.11

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NOTE 5 - INVESTMENTS IN SECURITIES

Investments in securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows:

	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value
	(In Thousands)
Available-for-sale securities:
June 30, 2016 (unaudited):
Debt securities issued by U.S. government corporations and agencies	$	7,490	$	51	$	-	$	7,541
Debt securities issued by states of the United States and political subdivisions of the states		2,401		43		15		2,429
Mortgage-backed securities		7,043		64		37		7,070
	$	16,934	$	158	$	52	$	17,040
December 31, 2015:
Debt securities issued by U.S. government corporations and agencies	$	6,339	$	6	$	34	$	6,311
Debt securities issued by states of the United States and political subdivisions of the states		2,456		7		19		2,444
Mortgage-backed securities		7,908		6		113		7,801
	$	16,703	$	19	$	166	$	16,556

	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value
	(In Thousands)
Held-to-maturity securities:
June 30, 2016 (unaudited):
Mortgage-backed securities	$	110	$	30	$	-	$	140
	$	110	$	30	$	-	$	140
December 31, 2015:
Mortgage-backed securities	$	120	$	35	$	-	$	155
	$	120	$	35	$	-	$	155

The scheduled maturities of debt securities were as follows as of June 30, 2016 (unaudited):

	Available-For-Sale		Held-To-Maturity
			Amortized
	Fair		Cost		Fair
	Value		Basis		Value
	(In Thousands)
Due within one year	$	-	$	-	$	-
Due after one year through five years		8,374		-		-
Due after five years through ten years		1,325		-		-
Due after ten years		271		-		-
Mortgage-backed securities		7,070		110		140
	$	17,040	$	110	$	140

No available-for-sale securities were sold during the six months ended June 30, 2016 and 2015 (unaudited).

As of June 30, 2016 (unaudited) and December 31, 2015, there were no securities of issuers whose aggregate carrying amount exceeded 10% of stockholders’ equity.

11

The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other-than-temporarily impaired, are as follows:

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
June 30, 2016 (unaudited):
Debt securities issued by U.S. government corporations and agencies	$	400	$	-	$	-	$	-	$	400	$	-
Debt securities issued by states of the United States and political subdivisions of the states		340		10		100		5		440		15
Mortgage-backed securities		252		2		2,419		35		2,671		37
Total temporarily impaired securities	$	992	$	12	$	2,519	$	40	$	3,511	$	52
December 31, 2015:
Debt securities issued by U.S. government corporations and agencies	$	5,320	$	21	$	487	$	13	$	5,807	$	34
Debt securities issued by states of the United States and political subdivisions of the states		-		-		912		19		912		19
Mortgage-backed securities		4,302		46		2,101		67		6,403		113
Total temporarily impaired securities	$	9,622	$	67	$	3,500	$	99	$	13,122	$	166

As of June 30, 2016 (unaudited), investment securities with unrealized losses consist of one debt security issued by U.S. government agencies and government-sponsored enterprises, two debt securities issued by states of the United States and political subdivisions of the states and thirteen mortgage-backed securities. The Company reviews investments for other-than-temporary impairment using a number of factors including the length of time and the extent to which the market value has been less than cost and by examining any credit deterioration or ratings downgrades. The unrealized losses in the above tables are primarily attributable to changes in market interest rates. As Company management has the intent and ability to hold impaired debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.

For those debt securities for which the fair value of the security is less than its amortized cost and the Company does not intend to sell such security and it is more likely than not that it will not be required to sell such security prior to the recovery of its amortized cost basis less any credit losses, ASC 320-10, “Investments - Debt and Equity Securities,” requires that the credit component of the other-than-temporary impairment losses be recognized in earnings while the noncredit component is recognized in other comprehensive income, net of related taxes. The Company did not record any other-than-temporary impairment losses of securities during the three and six months ended June 30, 2016 and 2015.

12

NOTE 6 - LOANS

Loans consisted of the following:

	June 30,			December 31,
	2016			2015
	(unaudited)
				(In Thousands)
Real estate loans:
One-to four- family residential	$	123,383		$	104,861
Commercial		22,698			21,848
Multi-family		16,408			16,559
Home equity loans and lines of credit		2,215			2,093
Construction		21,842			18,755
Commercial and industrial loans		3,277			3,964
Consumer loans:
Consumer lines of credit		21			20
Other consumer loans		2,438			3,060
		192,282			171,160
Net deferred loan origination fees, costs and discounts		298			153
Allowance for loan losses		(951	)		(886	)
Net loans	$	191,629		$	170,427

The following tables set forth information regarding the allowance for loan losses for the six months ended June 30, 2016 and 2015 (unaudited) and at June 30, 2016 (unaudited) and December 31, 2015:

	Real Estate:																Consumer
	One- to four-family								Home Equity Loans					Commercial and			Consumer
	Residential			Commercial			Multi-family		and Lines of Credit			Construction		Industrial Loans			Line of Credit		Other Consumer			Unallocated			Total
	(In Thousands)
Six months ended June 30, 2016 (unaudited):
Allowance for loan losses:
Beginning balance	$	373		$	146		$	62	$	14		$	216	$	13		$	1	$	29		$	32		$	886
Charge-offs		-			-			-		-			-		-			-		(7	)		-			(7	)
Recoveries		-			-			-		-			-		-			-		-			-			-
Provision (benefit)		77			(18	)		-		(2	)		14		(2	)		-		1			2			72
Ending balance	$	450		$	128		$	62	$	12		$	230	$	11		$	1	$	23		$	34		$	951
Six months ended June 30, 2015 (unaudited):
Allowance for loan losses:
Beginning balance	$	362		$	134		$	36	$	27		$	121	$	8		$	1	$	20		$	34		$	743
Charge-offs		-			-			-		-			-		-			-		-			-			-
Recoveries		-			-			-		-			-		-			-		-			-			-
(Benefit) provision		(15	)		1			5		(5	)		81		11			-		14			(32	)		60
Ending balance	$	347		$	135		$	41	$	22		$	202	$	19		$	1	$	34		$	2		$	803
At June 30, 2016 (unaudited):
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	21		$	-		$	-	$	-		$	-	$	-		$	-	$	-		$	-		$	21
Ending balance:
Collectively evaluated for impairment		429			128			62		12			230		11			1		23			34			930
Total allowance for loan losses ending balance	$	450		$	128		$	62	$	12		$	230	$	11		$	1	$	23		$	34		$	951
Loans:
Ending balance:
Individually evaluated for impairment	$	5,260		$	669		$	-	$	59		$	-	$	-		$	-	$	-		$	-		$	5,988
Ending balance:
Collectively evaluated for impairment		118,123			22,029			16,408		2,156			21,842		3,277			21		2,438			-			186,294
Total loans ending balance	$	123,383		$	22,698		$	16,408	$	2,215		$	21,842	$	3,277		$	21	$	2,438		$	-		$	192,282

13

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Lines of Credit		Other Consumer		Unallocated		Total
	(In Thousands)
December 31, 2015:
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	21	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	21
Ending balance:
Collectively evaluated for impairment		352		146		62		14		216		13		1		29		32		865
Total allowance for loan losses ending balance	$	373	$	146	$	62	$	14	$	216	$	13	$	1	$	29	$	32	$	886
Loans:
Ending balance:
Individually evaluated for impairment	$	5,665	$	679	$	-	$	59	$	-	$	-	$	-	$	-	$	-	$	6,403
Ending balance:
Collectively evaluated for impairment		99,196		21,169		16,559		2,034		18,755		3,964		20		3,060		-		164,757
Total loans ending balance	$	104,861	$	21,848	$	16,559	$	2,093	$	18,755	$	3,964	$	20	$	3,060	$	-	$	171,160

The following tables set forth information regarding nonaccrual loans and past-due loans at June 30, 2016 (unaudited) and December 31, 2015:

													90 Days
					90 Days								or More
					or More		Total		Total				Past Due		Nonaccrual
	30-59 Days		60-89 Days		Past Due		Past Due		Current		Total		and Accruing		Loans
	(In Thousands)
June 30, 2016 (unaudited):
Real estate loans:
One- to four-family residential	$	1,089	$	-	$	-	$	1,089	$	122,294	$	123,383	$	-	$	13
Commercial		669		-		-		669		22,029		22,698		-		-
Multi-family		-		-		-		-		16,408		16,408		-		-
Home equity loans and lines of credit		-		59		-		59		2,156		2,215		-		-
Construction		-		-		-		-		21,842		21,842		-		-
Commercial and industrial loans		-		-		-		-		3,277		3,277		-		-
Consumer loans:
Consumer lines of credit		-		-		-		-		21		21		-		-
Other consumer		6		-		-		6		2,432		2,438		-		-
Total	$	1,764	$	59	$	-	$	1,823	$	190,459	$	192,282	$	-	$	13
December 31, 2015:
Real estate loans:
One- to four-family residential	$	1,088	$	18	$	1,393	$	2,499	$	102,362	$	104,861	$	-	$	1,410
Commercial		-		-		-		-		21,848		21,848		-		-
Multi-family		-		-		-		-		16,559		16,559		-		-
Home equity loans and lines of credit		-		59		-		59		2,034		2,093		-		-
Construction		-		-		-		-		18,755		18,755		-		-
Commercial and industrial loans		-		-		-		-		3,964		3,964		-		-
Consumer loans:
Consumer lines of credit		-		-		-		-		20		20		-		-
Other consumer		16		-		-		16		3,044		3,060		-		-
Total	$	1,104	$	77	$	1,393	$	2,574	$	168,586	$	171,160	$	-	$	1,410

14

Information about loans that meet the definition of an impaired loan in ASC 310-10-35, “Receivables – Overall – Subsequent Measurement,” is as follows at June 30, 2016 (unaudited) and December 31, 2015 and the six months and year then ended, respectively.

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In Thousands)
June 30, 2016 (unaudited):
With no related allowance recorded:
Real estate loans:
One- to four-family residential	$	4,693	$	4,693	$	-	$	3,850	$	85
Commercial		669		669		-		674		15
Home equity loans and lines of credit		59		141		-		59		2
Total impaired with no related allowance	$	5,421	$	5,503	$	-	$	4,583	$	102
With an allowance recorded:
Real estate loans:
One- to four-family residential	$	567	$	567	$	21	$	567	$	10
Commercial		-		-		-		-		-
Home equity loans and lines of credit		-		-		-		-		-
Total impaired with an allowance recorded	$	567	$	567	$	21	$	567	$	10
Total
Real estate loans:
One- to four-family residential	$	5,260	$	5,260	$	21	$	4,417	$	95
Commercial		669		669		-		674		15
Home equity loans and lines of credit		59		141		-		59		2
Total impaired loans	$	5,988	$	6,070	$	21	$	5,150	$	112
December 31, 2015:
With no related allowance recorded:
Real estate loans:
One- to four-family residential	$	5,098	$	5,098	$	-	$	5,657	$	183
Commercial		679		679		-		689		44
Home equity loans and lines of credit		59		141		-		54		4
Total impaired with no related allowance	$	5,836	$	5,918	$	-	$	6,400	$	231
With an allowance recorded:
Real estate loans:
One- to four-family residential	$	567	$	567	$	21	$	571	$	19
Commercial		-		-		-		-		-
Home equity loans and lines of credit		-		-		-		-		-
Total impaired with an allowance recorded	$	567	$	567	$	21	$	571	$	19
Total
Real estate loans:
One- to four-family residential	$	5,665	$	5,665	$	21	$	6,228	$	202
Commercial		679		679		-		689		44
Home equity loans and lines of credit		59		141		-		54		4
Total impaired loans	$	6,403	$	6,485	$	21	$	6,971	$	250

15

The following tables present the Company’s loans by risk rating:

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Lines of Credit		Other Consumer		Total
	(In Thousands)
June 30, 2016 (unaudited):
Grade:
Pass	$	-	$	22,029	$	16,408	$	-	$	21,842	$	3,277	$	-	$	-	$	63,556
Special mention		2,347		669		-		53		-		-		-		-		3,069
Substandard		567		-		-		6		-		-		-		-		573
Loans not formally rated		120,469		-		-		2,156		-		-		21		2,438		125,084
Total	$	123,383	$	22,698	$	16,408	$	2,215	$	21,842	$	3,277	$	21	$	2,438	$	192,282
December 31, 2015:
Grade:
Pass	$	-	$	21,169	$	16,559	$	-	$	18,755	$	3,964	$	-	$	-	$	60,447
Special mention		539		-		-		53		-		-		-		-		592
Substandard		3,796		679		-		6		-		-		-		-		4,481
Loans not formally rated		100,526		-		-		2,034		-		-		20		3,060		105,640
Total	$	104,861	$	21,848	$	16,559	$	2,093	$	18,755	$	3,964	$	20	$	3,060	$	171,160

At June 30, 2016 (unaudited) and December 31, 2015, there were no loans rated “doubtful” or “loss.”

Credit Quality Information

The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

Loans rated 1 - 3: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and subsequently monitors these loans based on the borrower’s payment activity.

The Company classifies loans modified as troubled debt restructurings (TDRs) as impaired loans with an allowance established as part of the allocated component of the allowance for loan losses when the discounted cash flows or value of the underlying collateral of the impaired loan is lower than its carrying value.

16

During the six months ended June 30, 2016 (unaudited), five loans were modified as TDRs. The following table sets forth information regarding loans modified as TDRs during the six months ended June 30, 2016.

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Contracts		Investment		Investment
	(Dollars In Thousands)
June 30, 2016:
Troubled Debt Restructurings:
Real estate loans:
One- to four- family residential		3	$	2,121	$	2,121
Home equity loans and lines of credit		2		59		59
		5	$	2,180	$	2,180

At June 30, 2016 there were no loans modified as TDRs that subsequently defaulted.

As of June 30, 2016 (unaudited), there were no commitments to lend additional funds to borrowers whose loans were modified as troubled debt restructurings.

The following table provides information on how loans were modified as TDRs:

	Rate		Interest Only		Rate Reduction and
	Reduction		Period		Interest Only Period
	(In Thousands)
June 30, 2016
Real estate loans:
One- to four- family residential	$	-	$	2,121	$	-
Home equity loans and lines of credit		-		59		-
Total	$	-	$	2,180	$	-

An analysis of the loans modified as TDRs was performed as of June 30, 2016. An allowance of $21,000 was assigned to 1 one-to-four family residential loan. All loans were accruing.

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $27.4 million and $21.8 million at June 30, 2016 (unaudited) and December 31, 2015, respectively.

On March 25, 2106, the Company entered into an agreement to purchase $20.0 million of residential mortgages, with 50% of the purchase being fixed rate loans and 50% being adjustable rate mortgages of varying maturities. The purchase premium is fixed at 1%. As of June 30, 2016, the Company had purchased $8.5 million of loans under this agreement.

NOTE 7 – DEPOSITS

The aggregate amount of time deposits in denominations that meet or exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 at June 30, 2016 (unaudited) and December 31, 2015 was $24.4 million and $20.9 million, respectively. The totals at June 30, 2016 and December 31, 2015 exclude $5.0 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit.

17

For time deposits as of June 30, 2016 (unaudited), the scheduled maturities for each of the following five years ended June 30 are:

	(In Thousands)
2017	$	57,366
2018		21,701
2019		4,137
2020		1,694
2021		8,379
Total	$	93,277

NOTE 8 - FEDERAL HOME LOAN BANK ADVANCES

Maturities of advances from the Federal Home Loan Bank of Boston (“FHLB”) for the years ending after June 30, 2016 (unaudited) are summarized as follows:

	(In Thousands)
2017	$	2,500
2018		3,000
2019		-
2020		-
2021		-
Thereafter		9,000
	$	14,500

Interest rates range from 0.49% to 1.36% with a weighted-average interest rate of 0.88% at June 30, 2016 (unaudited).

Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties, certain unencumbered investment securities and other qualified assets.

NOTE 9 - FAIR VALUE MEASUREMENTS

ASC 820-10, “Fair Value Measurement - Overall,” provides a framework for measuring fair value under generally accepted accounting principles. This guidance also allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis.

In accordance with ASC 820-10, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities.

Level 3 - Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities.

18

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value as of June 30, 2016 (unaudited) and December 31, 2015. The Company did not have any significant transfers between level 1 and level 2 of the fair value hierarchy during the six months ended June 30, 2016 (unaudited) and the year ended December 31, 2015.

The Company’s investment in mortgage-backed securities and other debt securities available-for-sale is generally classified within level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows.

The Company’s impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using level 2 inputs based upon appraisals of similar properties obtained from a third party. For level 3 inputs, fair value is based upon management estimates of the value of the underlying collateral or the present value of the expected cash flows.

19

The following summarizes assets measured at fair value as of June 30, 2016 (unaudited) and December 31, 2015.

ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		Level 1		Level 2		Level 3
	(In Thousands)
June 30, 2016 (unaudited) :
Debt securities issued by U.S. government corporations and agencies	$	7,541	$	-	$	7,541	$	-
Debt securities issued by states of the United States and political subdivisions of the states		2,429		-		2,429		-
Mortgage-backed securities		7,070		-		7,070		-
Totals	$	17,040	$	-	$	17,040	$	-
December 31, 2015 :
Debt securities issued by U.S. government corporations and agencies	$	6,311	$	-	$	6,311	$	-
Debt securities issued by states of the United States and political subdivisions of the states		2,444		-		2,444		-
Mortgage-backed securities		7,801		-		7,801		-
Totals	$	16,556	$	-	$	16,556	$	-

ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS

Under certain circumstances we make adjustments to fair value for certain assets and liabilities although they are not measured at fair value on an ongoing basis. The following table presents assets carried on the consolidated balance sheets by caption and by level in the fair value hierarchy at June 30, 2016 (unaudited) and December 31, 2015, for which a nonrecurring change in fair value has been recorded:

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		Level 1		Level 2		Level 3
	(In Thousands)
June 30, 2016 (unaudited):
Impaired loans	$	546	$	-	$	-	$	546
Totals	$	546	$	-	$	-	$	546
December 31, 2015:
Impaired loans	$	546	$	-	$	-	$	546
Totals	$	546	$	-	$	-	$	546

20

The estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows:

	June 30, 2016 (unaudited)
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	8,136	$	8,136	$	-	$	-	$	8,136
Interest-bearing time deposits with other banks		1,087		-		1,087		-		1,087
Available-for-sale securities		17,040		-		17,040		-		17,040
Held-to-maturity securities		110		-		140		-		140
Federal Home Loan Bank stock		1,152		1,152		-		-		1,152
Investment in The Co-operative Central Reserve Fund		384		384		-		-		384
Loans, net		191,629		-		-		193,613		193,613
Accrued interest receivable		543		543		-		-		543
Financial liabilities:
Deposits		182,598		-		183,198		-		183,198
FHLB advances		14,500		-		14,512		-		14,512

	December 31, 2015
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	10,670	$	10,670	$	-	$	-	$	10,670
Interest-bearing time deposits with other banks		1,087		-		1,086		-		1,086
Available-for-sale securities		16,556		-		16,556		-		16,556
Held-to-maturity securities		120		-		155		-		155
Federal Home Loan Bank stock		971		971		-		-		971
Investment in The Co-operative Central Reserve Fund		384		384		-		-		384
Loans, net		170,427		-		-		171,150		171,150
Accrued interest receivable		508		508		-		-		508
Financial liabilities:
Deposits		169,372		-		170,134		-		170,134
FHLB advances		8,500		-		8,458		-		8,458

The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets as of June 30, 2016 (unaudited) and December 31, 2015 under the indicated captions. Accounting policies related to financial instruments are described below.

ASC 825, “Financial Instruments,” requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows:

Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets' fair values.

Interest-bearing time deposits with other banks: The fair value of interest-bearing time deposits with other banks was determined by discounting the cash flows associated with these instruments using current market rates for deposits with similar characteristics.

Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated by discounting the future cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

21

Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.

Deposit liabilities: The fair values disclosed for demand deposits, regular savings, NOW accounts, and money market accounts are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow 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: Fair values for Federal Home Loan Bank advances are estimated using a discounted cash flow technique that applies interest rates currently being offered on advances to a schedule of aggregated expected monthly maturities on Federal Home Loan Bank advances.

Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates.

NOTE 10 – REGULATORY CAPITAL

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 Bank’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.

Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to new capital regulations adopted by the Board of Governors of the Federal Reserve System (“FRB”) and the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The new regulations require a new common equity Tier 1 (“CET1”) capital ratio of 4.5%, increase the minimum Tier 1 capital to risk-weighted assets ratio to 6.0% from 4.0%, require a minimum total capital to risk-weighted assets ratio of 8.0% and require a minimum Tier 1 leverage ratio of 4.0%. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under new prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5% (new) and a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk based capital ratio of 10.0% (unchanged) and a Tier 1 leverage ratio of 5.0% (unchanged). In addition, the regulations establish a capital conservation buffer above the required capital ratios that began phasing in on January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. Beginning January 1, 2016, failure to maintain the capital conservation buffer will limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses.

The new regulations changed what constitutes regulatory capital. Certain instruments will no longer constitute qualifying capital, subject to phase-out periods. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CET1 will be deducted from capital.

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The new regulations also changed the risk weights of certain assets, including an increase in the risk weight of certain high volatility commercial real estate acquisition, development and construction loans and non-residential mortgage loans that are 90 days past due or on non-accrual status to 150% from 100%, a credit conversion factor for the unused portion of commitments with maturities of less than one year that are not cancellable to 20% from 0%, an increase in the risk weight for mortgage servicing rights and deferred tax assets that are not deducted from capital to 250% from 100%, and an increase in the risk weight for equity exposures to 600% from 100%.

Management believes, as of June 30, 2016, that the Bank meets all capital adequacy requirements to which it is subject.

As of June 30, 2016 (unaudited), the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios are presented in the table below.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars In Thousands)
As of June 30, 2016 (unaudited) :
Total Capital (to Risk Weighted Assets)	$	23,560		14.7	%	$	12,858		8.0	%	$	16,073		10.0	%
Tier 1 Capital (to Risk Weighted Assets)		22,598		14.1			9,644		6.0			12,858		8.0
Common Equity Tier 1  Capital (to Risk Weighted Assets)		22,598		14.1			7,233		4.5			10,447		6.5
Tier 1 Capital (to Average Assets)		22,598		10.1			8,959		4.0			11,199		5.0
As of December 31, 2015:
Total Capital (to Risk Weighted Assets)	$	23,066		16.2	%	$	11,408		8.0	%	$	14,260		10.0	%
Tier 1 Capital (to Risk Weighted Assets)		22,171		15.6			8,556		6.0			11,408		8.0
Common Equity Tier 1  Capital (to Risk Weighted Assets)		22,171		15.6			6,417		4.5			9,269		6.5
Tier 1 Capital (to Average Assets)		22,171		10.9			8,169		4.0			10,211		5.0

NOTE 11 – COMMON STOCK REPURCHASES

On November 24, 2015, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may purchase up to 89,903 shares of the Company’s common stock, equal to 4.0% of the Company’s outstanding common stock at the time. The program allows the Company to repurchase common stock at various prices in the open market or through private transactions. The actual amount and timing of future repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors.

In 2015, the Company repurchased 23,100 shares of common stock, at an average cost of $12.89.

During the six month period ending June 30, 2016 (unaudited), a total of 35,000 shares of common stock were repurchased at an average cost of $13.12.

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NOTE 12 – EQUITY INCENTIVE PLANS

On November 24, 2015, stockholders of the Company approved the 2015 Equity Incentive Plan (“2015 EIP”). The 2015 EIP provides for the award of up to 314,661 shares of common stock pursuant to grants of restricted stock awards and stock options. Pursuant to the terms of the 2015 EIP, on June 1, 2016, the Board of Directors granted 70,950 shares of restricted stock and 169,500 stock options to employees and directors. Of the 70,950 shares of restricted stock granted, 47,600 shares vest evenly over a five year period and 23,350 shares vest over a four year period. Of the 169,500 stock options granted, 122,500 options vest evenly over a five year period and 47,000 options vest over a four year period. The maximum term of each option is ten years. At June 30, 2016, there were 18,953 restricted stock awards and 55,258 stock options available for future grants.

The fair value of each option awarded for the 2015 EIP is estimated on the date of the grant using the Black-Scholes Option-Pricing Model. The expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term and the vesting period. The expected volatility is based on peer group volatility because the Company does not have sufficient trading history. The dividend yield is based on the Company’s expectation of no dividend payouts. The risk-free rate was based on the U.S. Treasury yield curve in effect at the date of the grant for a period equivalent to the expected life of the option.

The weighted average assumptions used and fair value for options granted during the six months ended June 30, 2016 are as follows:

	Stock Option
	Assumptions
Expected life (years)		6.40 years
Expected dividend yield		0	%
Expected volatility		20.24	%
Expected forfeiture rate		0	%
Risk free rate		1.67	%
Fair value per option	$	3.17

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A summary of activity for the 2015 Equity Incentive Plan as of and for the six months ended June 30, 2016 is as follows:

	Stock Options
	2016
	Number of
	Shares
Outstanding at beginning of period		-
Granted		169,500
Outstanding at end of period		169,500
Exercisable at end of period		-
Weighted average fair value of options granted during the period	$	3.17
Weighted average contractual life remaining		9.9 years
Weighted average exercise price	$	12.85

	Non-vested
	Restricted Stock
	2016
	Number of
	Shares
Outstanding at beginning of period		-
Granted		70,950
Outstanding at end of period		70,950
Weighted average grant date fair value	$	12.85

As of June 30, 2016, unrecognized share-based compensation expense related to non-vested options amounted to $527,000 and the unrecognized share-based compensation expense related to non-vested restricted stock amounted to $897,000. The unrecognized expense related to the non-vested options and non-vested restricted stock will be recognized over a weighted average period of 4.7 years.

For the three and six months ended June 30, 2016, the Company recognized compensation expense for stock options of $10,000, and the recognized tax benefit related to this expense was $1,000. For the three and six months ended June 30, 2016, the Company recognized compensation expense for restricted stock awards of $15,000, and the recognized tax benefit related to this expense was $6,000.

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

General

Management’s discussion and analysis of the financial condition and results of operations at and for the three and six months ended June 30, 2016 and 2015 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 financial statements and the notes thereto, appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.

This Report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

· statements of our goals, intentions and expectations;

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

· statements regarding the asset quality of our loan and investment portfolios; and

· estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this Report.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

· our ability to manage our operations under the current adverse economic conditions nationally and in our market area;

· adverse changes in the financial industry, securities, credit and national and local real estate markets (including real estate values);

· significant increases in our loan losses, including as a result of our inability to resolve classified and non-performing assets or reduce risks associated with our loans, and management’s assumptions in determining the adequacy of the allowance for loan losses;

· credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and in our allowance for loan losses and provision for loan losses;

· competition among depository and other financial institutions;

· our success in implementing our business strategy, particularly increasing our commercial real estate, multi-family, non-owner occupied residential and construction lending;

· our success in introducing new financial products;

· our ability to attract and maintain deposits;

· our ability to continue to improve our asset quality even as we increase our non-residential and non-owner occupied residential lending;

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· changes in interest rates generally, including changes in the relative differences between short term and long term interest rates and in deposit interest rates, that may affect our net interest margin and funding sources;

· fluctuations in the demand for loans, which may be affected by the number of unsold homes, land and other properties in our market areas and by declines in the value of real estate in our market area;

· changes in consumer spending, borrowing and saving habits;

· declines in the yield on our assets resulting from the current low interest rate environment;

· risks related to a high concentration of loans secured by real estate located in our market area;

· the results of examinations by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses, write down assets, change our regulatory capital position, limit our ability to borrow funds or maintain or increase deposits, or prohibit us from paying dividends, which could adversely affect our dividends and earnings;

· changes in the level of government support of housing finance;

· our ability to enter new markets successfully and capitalize on growth opportunities;

· changes in laws or government regulations or policies affecting financial institutions, including the Dodd-Frank Act and the JOBS Act, which could result in, among other things, increased deposit insurance premiums and assessments, capital requirements (particularly the new capital regulations), regulatory fees and compliance costs and the resources we have available to address such changes;

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

· changes in our organization, compensation and benefit plans, and our ability to retain key members of our senior management team and to address staffing needs in response to product demand or to implement our strategic plans;

· loan delinquencies and changes in the underlying cash flows of our borrowers;

· our ability to control costs and expenses, particularly those associated with operating as a publicly traded company;

· the failure or security breaches of computer systems on which we depend;

· the ability of key third-party service providers to perform their obligations to us;

· changes in the financial condition or future prospects of issuers of securities that we own; and

· other economic, competitive, governmental, regulatory and operational factors affecting our operations, pricing, products and services described elsewhere in this Report.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

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During the six months ended June 30, 2016, there were no material changes to the critical accounting policies disclosed in Pilgrim Bancshares, Inc.’s 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission on March 28, 2016.

Comparison of Financial Condition at June 30, 2016 (unaudited) and December 31, 2015

Total assets increased $19.2 million, or 9.1%, to $229.7 million at June 30, 2016 from $210.5 million at December 31, 2015. The increase was primarily due to an increase in loans.

Total cash and cash equivalents decreased $2.5 million, or 23.7%, to $8.1 million at June 30, 2016 from $10.7 million at December 31, 2015. The decrease in cash resulted from the timing of normal cash flows.

Net loans increased $21.2 million, or 12.4%, to $191.6 million at June 30, 2016 from $170.4 million at December 31, 2015. The Company originated $43.2 million and purchased $19.8 million of new loans during the six months ended June 30, 2016. Partially offsetting the loan originations and purchases were $25.1 million of loan payoffs and amortization, $6.8 million of loan and loan participations sold and $9.9 million of unadvanced funds on loans originated during the six months ended June 30, 2016. Investment securities classified as available-for-sale increased $484,000, or 2.9%, to $17.0 million at June 30, 2016 from $16.6 million at December 31, 2015, due to the purchase of U.S. government and agency securities. Investment securities classified as held-to-maturity decreased $10,000, or 8.3%, to $110,000 at June 30, 2016, from $120,000 at December 31, 2015 due to payments in the ordinary course of business and a payoff of one security.

Bank-owned life insurance at June 30, 2016 increased $21,000, or 0.9%, compared to December 31, 2015 due to normal increases in cash surrender value.

Deposits increased $13.2 million, or 7.8%, to $182.6 million at June 30, 2016 from $169.4 million at December 31, 2015, primarily due to a $10.0 million increase in certificates of deposit, a $2.2 million increase in noninterest-bearing demand accounts, a $745,000 increase in savings accounts, a $141,000 increase in Money Market accounts, and a $123,000 increase in NOW accounts. Our core deposits, which we consider to be our noninterest-bearing demand accounts, NOW accounts, savings accounts and money market accounts, collectively increased $3.2 million, or 3.7%, to $89.3 million at June 30, 2016 from $86.1 million at December 31, 2015.

FHLB advances increased $6.0 million, or 70.6%, to $14.5 million at June 30, 2016 from $8.5 million at December 31, 2015, to fund loan growth. FHLB advances as of June 30, 2016 were long term borrowings.

Stockholders’ equity increased $106,000, or 0.3%, to $32.1 million at June 30, 2016 from $32.0 million at December 31, 2015. The increase was driven by $341,000 of net income for the six months ended June 30, 2016 and $160,000 in other comprehensive income, due to an increase in the net unrealized gain position of our available-for-sale investment securities portfolio. Partially offsetting the increase was the purchase and retirement of 35,000 shares of the Company’s common stock at a cost of $459,000.

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Delinquent Loans. The following table sets forth our loan delinquencies by type and amount at the dates indicated.

	At June 30, 2016						At December 31, 2015
	(unaudited)
	30-59 Days Past Due		60-89 Days Past Due		90 Days or   More Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due
	(In Thousands)
Real estate loans:
One- to four-family residential(1)	$	1,089	$	-	$	-	$	1,088	$	18	$	1,393
Commercial		669		-		-		-		-		-
Multi-family		-		-		-		-		-		-
Home equity loans and lines of credit		-		59		-		-		59		-
Construction		-		-		-		-		-		-
Total real estate		1,758		59		-		1,088		77		1,393
Commercial and industrial loans		-		-		-		-		-		-
Consumer loans		6		-		-		16		-		-
Total loans	$	1,764	$	59	$	-	$	1,104	$	77	$	1,393

(1) There were no delinquent non-owner occupied residential real estate loans at June 30, 2016 or December 31, 2015.

The decrease in total delinquent loans 90 days or more past due from December 31, 2015 to June 30, 2016 was the result of the payoff of one loan in the amount of $1.4 million.

Classified Assets. The following table sets forth our amounts of classified assets and assets designated as special mention as of June 30, 2016 and December 31, 2015.

	At June 30,		At December 31,
	2016		2015
	(In Thousands)
	(unaudited)
Classified assets:
Substandard:
Loans(1)	$	573	$	4,481
Securities		108		115
Other real estate owned		-		-
Total substandard		681		4,596
Doubtful		-		-
Loss		-		-
Other real estate owned		-		-
Total classified assets	$	681	$	4,596
Special mention	$	3,069	$	592

(1) Includes $1.4 million of non-accruing loans that were more than 90 days past due at December 31, 2015.

The decrease in classified assets from December 31, 2015 to June 30, 2016 was the result of the payoff of one non-accruing loan in the amount of $1.4 million, the upgrade of two loans totaling $2.5 million from “substandard” to “special mention,” and normal amortization.

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Non-Performing Assets. The following table sets forth information regarding our non-performing assets and troubled debt restructurings at the dates indicated. The information reflects net charge-offs but not specific reserves. Troubled debt restructurings include loans where the borrower is experiencing financial difficulty and for which either a portion of interest or principal has been forgiven or an extension of term granted, or for which the loans were modified at interest rates materially less than current market rates.

	At June 30,			At December 31,
	2016			2015
	(Dollars In Thousands)
	(unaudited)
Non-accrual loans:
Real estate loans:
One- to four-family residential(1)	$	13		$	1,410
Commercial		-			-
Multi-family		-			-
Home equity loans and lines of credit		-			-
Construction		-			-
Total real estate		13			1,410
Commercial and industrial loans		-			-
Consumer loans		-			-
Total non-accrual loans		13			1,410
Total accruing loans past due 90 days or more		-			-
Total of nonaccrual loans and accruing loans 90 days or more past due		13			1,410
Other non-performing assets		-			-
Total non-performing assets		13			1,410
Performing troubled debt restructurings:
Real estate loans:
One- to four-family residential(2)		5,260			4,272
Commercial		669			679
Multi-family		-			-
Home equity loans and lines of credit		59			59
Total real estate		5,988			5,010
Commercial and industrial loans		-			-
Consumer loans		-			-
Total troubled debt restructurings		5,988			5,010
Total non-performing loans and troubled debt restructurings	$	6,001		$	6,420
Non-performing loans to total loans		0.01	%		0.82	%
Non-performing assets to total assets		0.01	%		0.67	%
Non-performing assets and troubled debt restructurings to total assets		2.61	%		3.05	%

(1) There were no non-performing non-owner occupied residential real estate loans at June 30, 2016 or December 31, 2015.

(2) There were no troubled debt restructurings related to non-owner occupied residential real estate loans at June 30, 2016 or December 31, 2015.

The decrease in non-performing assets from December 31, 2015 to June 30, 2016 was the result of the payoff of a non-accruing loan totaling $1.4 million.

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Non-performing loans totaled $13,000 at June 30, 2016, and consisted of one owner occupied one- to four- family residential loan. We had no non-performing commercial real estate and multi-family loans at June 30, 2016. We had no foreclosed real estate at June 30, 2016.

Interest income that would have been recorded for the six months ended June 30, 2016, had the one non-accruing loan been current according to its original terms, amounted to less than $1,000.

Other Loans of Concern. There were no other loans at June 30, 2016 that are not already disclosed where there is information about possible credit problems of borrowers that caused management to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that may result in disclosure of such loans in the future.

Comparison of Operating Results for the Three Months Ended June 30, 2016 and June 30, 2015

General. Net income for the three months ended June 30, 2016 was $185,000, compared to net income of $134,000 for the three months ended June 30, 2015. The increase of $51,000, or 38.1%, in net income was due to an increase in net interest income and noninterest income, partially offset by an increase in noninterest expense.

Interest and Dividend Income. Total interest and dividend income for the three months ended June 30, 2016 increased $246,000, or 14.6%, to $1.9 million compared to $1.7 million for the three months ended June 30, 2015. The increase in interest and dividend income was the result of higher average loans in the three months ended June 30, 2016. The average balance of loans during the three months ended June 30, 2016 increased $27.2 million to $183.5 million from $156.3 million for the three months ended June 30, 2015, while the average yield on loans decreased 11 basis points to 4.01% for the three months ended June 30, 2016 from 4.12% for the three months ended June 30, 2015. The average balance of investment securities increased $3.8 million to $17.3 million for the three months ended June 30, 2016 from $13.5 million for the three months ended June 30, 2015, and the yield on investment securities (on a tax-equivalent basis) decreased 36 basis points to 1.72% for the three months ended June 30, 2016 from 2.08% for the three months ended June 30, 2015.

Interest Expense. Total interest expense increased $121,000, or 47.8%, to $374,000 for the three months ended June 30, 2016 from $253,000 for the three months ended June 30, 2015. Interest expense on interest-bearing deposit accounts increased $109,000, or 45.8%, to $347,000 for the three months ended June 30, 2016 from $238,000 for the three months ended June 30, 2015. The increase was primarily due to higher average deposit balances and overall changes in the deposit mix.

Interest expense on FHLB advances increased $12,000, or 80.0%, to $27,000 for the three months ended June 30, 2016 from $15,000 for the three months ended June 30, 2015. The average balance of advances increased $2.4 million, or 29.6%, to $10.6 million for the three months ended June 30, 2016 from $8.2 million for the three months ended June 30, 2015. The cost of funds on FHLB advances increased 26 basis points to 0.99% for the three months ended June 30, 2016 from 0.73% for the three months ended June 30, 2015.

Net Interest and Dividend Income. Net interest and dividend income increased $125,000, or 8.7%, to $1.6 million for the three months ended June 30, 2016 from $1.4 million for the three months ended June 30, 2015. On a tax-equivalent basis, net interest and dividend income increased $124,000, or 8.6%, to $1.6 million for the three months ended June 30, 2016 from $1.4 million for the three months ended June 30, 2015. The tax-equivalent basis increase resulted from a $245,000 increase in interest income, partially offset by a $121,000 increase in interest expense. Our average interest-earning assets increased $34.3 million to $213.0 million for the three months ended June 30, 2016 from $178.7 million for the three months ended June 30, 2015. Our net interest rate spread decreased 31 basis points to 2.77% for the three months ended June 30, 2016 from 3.08% for the three months ended June 30, 2015, and our net interest margin decreased 29 basis points to 2.93% for the three months ended June 30, 2016 from 3.22% for the three months ended June 30, 2015. The decrease in our interest rate spread and net interest margin reflected a reduction in the average yield on loans and higher average balances of certificates of deposit, and related cost of funds.

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Provision for Loan Losses. We recorded a provision for loan losses for the three months ended June 30, 2016 of $36,000, compared to a provision of $38,000 for the three months ended June 30, 2015. We maintain the allowance for loan losses at levels we believe are adequate to cover our estimate of probable credit losses as of the end of the reporting period. There was a charge-off of $7,000 related to a consumer loan, for the three months ended June 30, 2016. No charge-offs were recognized for the three months ended June 30, 2015. The allowance for loan losses was $951,000, or 0.49% of total loans at June 30, 2016, compared to $803,000, or 0.50% of total loans at June 30, 2015.

Noninterest Income. Noninterest income increased $13,000, or 9.8%, to $146,000 for the three months ended June 30, 2016 from $133,000 for the three months ended June 30, 2015. The increase was primarily due to net gains on sales of loans of $17,000 for the three months ended June 30, 2016 compared to $3,000 for the three months ended June 30, 2015.

Noninterest Expense. Noninterest expense increased $52,000, or 4.0%, to $1.4 million for the three months ended June 30, 2016 compared to $1.3 million for the three months ended June 30, 2015. The increase was primarily driven by an increase of $76,000 in salaries and benefits expense, due to staff merit increases and equity incentive compensation. Data processing expense increased $12,000, advertising and public relations expense decreased $11,000, occupancy expense decreased $10,000, and all other expenses decreased $15,000, spread across various categories.

Income Taxes. Income before income taxes of $299,000 resulted in income tax expense of $114,000 for the three months ended June 30, 2016, compared to income before income taxes of $211,000 resulting in an income tax expense of $77,000 for the three months ended June 30, 2015. The effective income tax rate was 38.1% for the three months ended June 30, 2016 compared to 36.5% for the three months ended June 30, 2015.

Comparison of Operating Results for the Six Months Ended June 30, 2016 and June 30, 2015

General. Net income for the six months ended June 30, 2016 was $341,000, compared to net income of $235,000 for the six months ended June 30, 2015. The increase of $106,000, or 45.1%, in net income, was due to an increase in net interest income and noninterest income, partially offset by an increase in provision for loan losses, and an increase in noninterest expense.

Interest and Dividend Income. Total interest and dividend income for the six months ended June 30, 2016 increased $506,000, or 15.4%, to $3.8 million compared to $3.3 million for the six months ended June 30, 2015. The increase in interest and dividend income was the result of higher average loans in the six months ended June 30, 2016. The average balance of loans during the six months ended June 30, 2016 increased $23.9 million to $176.4 million from $152.5 million for the six months ended June 30, 2015, while the average yield on loans decreased three basis points to 4.09% for the six months ended June 30, 2016 from 4.12% for the six months ended June 30, 2015. The average balance of investment securities increased $4.4 million to $17.1 million for the six months ended June 30, 2016 from $12.8 million for the six months ended June 30, 2015, and the yield on investment securities (on a tax-equivalent basis) decreased 45 basis points to 1.71% for the six months ended June 30, 2016 from 2.16% for the six months ended June 30, 2015.

Interest Expense. Total interest expense increased $219,000, or 43.2%, to $726,000 for the six months ended June 30, 2016 from $507,000 for the six months ended June 30, 2015. Interest expense on interest-bearing deposit accounts increased $196,000, or 40.9%, to $675,000 for the six months ended June 30, 2016 from $479,000 for the six months ended June 30, 2015. The increase was primarily due to higher average deposit balances and overall changes in the deposit mix.

32

Interest expense on FHLB advances increased $23,000, or 82.1%, to $51,000 for the six months ended June 30, 2016 from $28,000 for the six months ended June 30, 2015. The average balance of advances increased $2.1 million, or 29.7%, to $9.6 million for the six months ended June 30, 2016 from $7.4 million for the six months ended June 30, 2015. The cost of funds on FHLB advances increased 29 basis points to 1.04% for the six months ended June 30, 2016 from 0.75% for the six months ended June 30, 2015.

Net Interest and Dividend Income. Net interest and dividend income increased $287,000, or 10.3%, to $3.1 million for the six months ended June 30, 2016 from $2.8 million for the six months ended June 30, 2015. On a tax-equivalent basis, net interest and dividend income increased $283,000, or 10.1%, to $3.1 million for the six months ended June 30, 2016 from $2.8 million for the six months ended June 30, 2015. The tax-equivalent basis increase resulted from a $502,000 increase in interest income, partially offset by a $219,000 increase in interest expense. Our average interest-earning assets increased $29.4 million to $207.7 million for the six months ended June 30, 2016 from $178.2 million for the six months ended June 30, 2015. Our net interest rate spread decreased 18 basis points to 2.82% for the six months ended June 30, 2016 from 3.00% for the six months ended June 30, 2015, and our net interest margin decreased 17 basis points to 2.97% for the six months ended June 30, 2016 from 3.14% for the six months ended June 30, 2015. The decrease in our interest rate spread and net interest margin reflected higher average balances of certificates of deposit, and related cost of funds.

Provision for Loan Losses. We recorded a provision for loan losses for the six months ended June 30, 2016 of $72,000, compared to a provision of $60,000 for the six months ended June 30, 2015. We maintain the allowance for loan losses at levels we believe are adequate to cover our estimate of probable credit losses as of the end of the reporting period. There was a charge-off of $7,000 related to a consumer loan for the six months ended June 30, 2016. No charge-offs were recognized for the six months ended June 30, 2015. The allowance for loan losses was $951,000, or 0.49% of total loans at June 30, 2016, compared to $803,000, or 0.50% of total loans at June 30, 2015.

Noninterest Income. Noninterest income increased $1,000, or 0.3%, to $293,000 for the six months ended June 30, 2016 from $292,000 for the six months ended June 30, 2015. The increase was spread across various categories.

Noninterest Expense. Noninterest expense increased $86,000, or 3.2%, to $2.7 million for the six months ended June 30, 2016 compared to $2.7 million for the six months ended June 30, 2015. The increase was primarily driven by an increase of $110,000 in salaries and benefits expense, due to staff merit increases and equity incentive compensation. Data processing expense increased $20,000, occupancy expense decreased $38,000, and all other expenses increased $6,000, spread across various categories.

Income Taxes. Income before income taxes of $546,000 resulted in income tax expense of $205,000 for the six months ended June 30, 2016, compared to income before income taxes of $356,000 resulting in an income tax expense of $121,000 for the six months ended June 30, 2015. The effective income tax rate was 37.5% for the six months ended June 30, 2016 compared to 34.0% for the six months ended June 30, 2015.

33

Average Balances and Yields. The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. Tax-equivalent yield adjustments have been made because we had tax-exempt interest-earning assets during the periods. All average balances are daily average balances based upon amortized costs. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense.

	For the Three Months Ended June 30,
	2016								2015
	Average Outstanding Balance			Interest		Average Yield/Rate(1)			Average Outstanding Balance			Interest		Average Yield/Rate(1)
	(In Thousands)
Interest-earning assets:
Loans	$	183,463		$	1,838		4.01	%	$	156,254		$	1,609		4.12	%
Interest-earning deposits		10,871			14		0.50	%		7,720			7		0.37	%
Investment securities(2)		17,327			74		1.72	%		13,544			70		2.08	%
Federal Home Loan Bank stock and
The Co- operative Central Reserve Fund		1,366			9		2.68	%		1,193			4		1.34	%
Total interest-earning assets		213,027			1,935		3.63	%		178,711			1,690		3.78	%
Noninterest-earning assets		10,991								11,394
Total assets	$	224,018							$	190,105
Interest-bearing liabilities:
Savings accounts	$	20,581			7		0.15	%	$	18,866			9		0.20	%
NOW accounts		22,329			3		0.05	%		19,647			5		0.10	%
Money market accounts		28,643			26		0.36	%		31,797			30		0.37	%
Certificates of deposit		92,066			311		1.35	%		64,665			194		1.20	%
Total interest-bearing deposits		163,619			347		0.85	%		134,975			238		0.70	%
Federal Home Loan Bank advances		10,618			27		0.99	%		8,192			15		0.73	%
Total interest-bearing liabilities		174,237			374		0.86	%		143,167			253		0.71	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		17,290								13,724
Other noninterest-bearing liabilities		509								1,342
Total noninterest-bearing liabilities		17,799								15,066
Total liabilities		192,036								158,233
Total stockholders' equity		31,982								31,872
Total liabilities and total stockholders' equity	$	224,018							$	190,105
Net interest income				$	1,561							$	1,437
Net interest rate spread(3)							2.77	%							3.07	%
Net interest-earning assets(4)	$	38,790							$	35,544
Net interest margin(5)							2.93	%							3.22	%
Average interest-earning assets to interest-bearing liabilities		122.26	%							124.63	%

(1) Yields and rates are annualized.

(2) Includes securities available-for-sale and held-to-maturity. A tax equivalent adjustment of $7,000 and $8,000 was applied to tax-exempt income for the three months ended June 30, 2016 and June 30, 2015, respectively.

(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

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

34

	For the Six Months Ended June 30,
	2016								2015
	Average Outstanding Balance			Interest		Average Yield/Rate(1)			Average Outstanding Balance			Interest		Average Yield/Rate(1)
	(In Thousands)
Interest-earning assets:
Loans	$	176,382		$	3,610		4.09	%	$	152,461		$	3,143		4.12	%
Interest-earning deposits		12,782			34		0.53	%		11,822			18		0.31	%
Investment securities(2)		17,144			147		1.71	%		12,761			138		2.16	%
Federal Home Loan Bank stock and
The Co- operative Central Reserve Fund		1,348			17		2.56	%		1,164			7		1.21	%
Total interest-earning assets		207,656			3,808		3.67	%		178,208			3,306		3.71	%
Noninterest-earning assets		11,043								11,438
Total assets	$	218,699							$	189,646
Interest-bearing liabilities:
Savings accounts	$	20,626			15		0.15	%	$	18,252			18		0.20	%
NOW accounts		21,691			5		0.05	%		20,008			10		0.10	%
Money market accounts		28,495			53		0.37	%		32,302			60		0.37	%
Certificates of deposit		89,621			602		1.34	%		65,319			391		1.20	%
Total interest-bearing deposits		160,433			675		0.84	%		135,881			479		0.70	%
Federal Home Loan Bank advances		9,559			51		1.04	%		7,412			28		0.75	%
Total interest-bearing liabilities		169,992			726		0.85	%		143,293			507		0.71	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		16,201								13,334
Other noninterest-bearing liabilities		585								1,206
Total noninterest-bearing liabilities		16,786								14,540
Total liabilities		186,778								157,833
Total stockholders' equity		31,921								31,813
Total liabilities and total stockholders' equity	$	218,699							$	189,646
Net interest income				$	3,082							$	2,799
Net interest rate spread(3)							2.82	%							3.00	%
Net interest-earning assets(4)	$	37,664							$	34,915
Net interest margin(5)							2.97	%							3.14	%
Average interest-earning assets to interest-bearing liabilities		122.16	%							124.18	%

(1) Yields and rates are annualized.

(2) Includes securities available-for-sale and held-to-maturity. A tax equivalent adjustment of $14,000 and $18,000 was applied to tax-exempt income for the six months ended June 30, 2016 and June 30, 2015, respectively.

(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

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

35

Liquidity and Capital Resources

Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, proceeds from maturities and calls of securities, maturities of certificate of deposit investments and FHLB advances. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage 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 operating activities was $270,000 and $517,000 for the six months ended June 30, 2016 and June 30, 2015, respectively. For the six months ended June 30, 2016 and 2015, net cash used in investing activities consists primarily of disbursements for the purchase of loans, the origination of loans, and the purchase of available-for-sale securities, offset by principal collections on loans, proceeds from loan sales, proceeds from maturing securities and pay downs on mortgage-backed securities. Net cash used in investing activities was $21.6 million, and $16.6 million for the six months ended June 30, 2016 and June 30, 2015, respectively. During the six months ended June 30, 2016, we purchased $3.4 million of securities held as available-for-sale securities, and during the six months ended June 30, 2015, we purchased $2.8 million of securities held as available-for-sale. We sold no securities during the six months ended June 30, 2016 and 2015. Net cash provided by financing activities, consisting primarily of the activity in deposit accounts and FHLB advances, was $18.8 million and $4.7 million for the six months ended June 30, 2016 and June 30, 2015, respectively.

At June 30, 2016, we exceeded all “well capitalized” regulatory capital requirements with a CET1 capital level of $22.6 million or 14.1% of risk-weighted assets, which is above the required level of $10.4 million, or 6.5% of risk-weighted assets; a tier 1 capital level of $22.6 million, or 14.1% of risk-weighted assets, which is above the required level of $12.9 million, or 8.0% of risk-weighted assets; a tier 1 leverage capital level of $22.6 million, or 10.1% of average assets, which is above the required level of $11.2 million, or 5.0% of average assets; and total risk-based capital of $23.6 million, or 14.7% of risk-weighted assets, which is above the required level of $16.1 million, or 10.0% of risk-weighted assets. At December 31, 2015, we exceeded all of our regulatory capital requirements with a CET1 capital level of $22.2 million, or 15.6% of risk-weighted assets, which was the above the required level of $9.3 million, or 6.5% of risk-weighted assets; a tier 1 capital level of $22.2 million, or 15.6% of risk-weighted assets which is above the required level of $11.4 million, or 8.0% of risk-weighted assets; a tier 1 leverage capital level of $22.2 million, or 10.9% of average assets, which is above the required level of $10.2 million, or 5.0% of average assets; and a total risk-based capital of $23.1 million, or 16.2% of risk-weighted assets, which is above the required level of $14.3 million, or 10.0% of risk-weighted assets. Accordingly, Pilgrim Bank was categorized as well capitalized at June 30, 2016 and December 31, 2015. Management is not aware of any conditions or events since the most recent notification that would change our category.

At June 30, 2016, we had outstanding commitments to originate loans of $8.1 million, commitments to purchase loans of $11.5 million, and unadvanced funds on loans of $22.9 million. We anticipate that we will have sufficient funds available to meet our current loan origination, loan purchase and securities purchase commitments. Certificates of deposit that are scheduled to mature in less than one year from June 30, 2016 totaled $57.4 million. Management expects, based on historical experience, 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.

Off-Balance Sheet Arrangements. In the normal course of operations, we engage in a variety of financial transactions that, in accordance with U.S. Generally Accepted Accounting Principles, are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments, lines of credit and standby letters of credit. These arrangements are not expected to have a material impact on the Company’s financial condition or results of operations.

We have not engaged in any other off-balance sheet transactions in the normal course of our lending activities.

36

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantitative and qualitative disclosures about market risk are not required by smaller reporting companies, such as the Company.

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of June 30, 2016. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

During the quarter ended June 30, 2016, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II – Other Information

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

Disclosure of risk factors is not required by smaller reporting companies, such as the Company.

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

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

(b) Not applicable.

(c)          The following table presents a summary of the Company’s share repurchases during the six months ended June 30, 2016.

					Total Number of Shares		Maximum Number of
					Purchased as Part of		Shares That May Yet be
	Total Number of		Average Price Paid		Publicly Announced		Purchased Under the
Period	Shares Purchased		Per Share		Program (1)		Program (1)
January 1 through January 31, 2016		32,000	$	13.13		55,100		34,803
February 1 through February 29, 2016		3,000	$	13.03		58,100		31,803
March 1 through March 31, 2016		0	$	0.00		58,100		31,803
April 1 through April 30, 2016		0	$	0.00		58,100		31,803
May 1 through May 31, 2016		0	$	0.00		58,100		31,803
June 1 through June 30, 2016		0	$	0.00		58,100		31,803

(1) On November 24, 2015, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may purchase up to 89,903 shares of the Company’s common stock equal to 4.0% of the Company’s outstanding common stock.

37

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The exhibits required by Item 601 of Regulation S-K are included with this Form 10-Q and are listed on the “Index to Exhibits” immediately following the signatures.

38

SIGNATURES

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

	Pilgrim Bancshares, Inc.
Date:  August 1, 2016	/s/ Francis E. Campbell
	Francis E. Campbell
	President and Chief Executive Officer
Date:  August 1, 2016	/s/ Christopher G. McCourt
	Christopher G. McCourt Senior Vice President, Chief Financial Officer and Treasurer

39

INDEX TO EXHIBITS

3.1         Articles of Incorporation of Pilgrim Bancshares, Inc.*

3.2         Bylaws of Pilgrim Bancshares, Inc.*

31.1       Certification of Francis E. Campbell, President and Chief Executive Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

31.2       Certification of Christopher G. McCourt, Senior Vice President and Chief Financial Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

32          Certification of Francis E. Campbell, President and Chief Executive Officer, and Christopher G. McCourt, Senior Vice President and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101        The following materials from the Company’s Quarterly Report on Form 10Q for the quarter ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii)  Consolidated Statements of Comprehensive Income; (iv)  Consolidated Statements of Changes in Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements

*            Incorporated herein by reference to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-194485).

40

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

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

I, Francis E. Campbell, certify that:

1.          I have reviewed this Quarterly Report on Form 10-Q of Pilgrim Bancshares, 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 15(d) – 15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a –15(f) and 15(d) –15(f)) for the registrant and have:

a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)          Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 1, 2016	/s/ Francis E. Campbell
	Francis E. Campbell
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

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

I, Christopher G. McCourt, certify that:

1.          I have reviewed this Quarterly Report on Form 10-Q of Pilgrim Bancshares, 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 15(d) –15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13(a) –15(f) and 15(d) –15(f)) for the registrant and have:

a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)          Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 1, 2016	/s/ Christopher G. McCourt
	Christopher G. McCourt
	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

Francis E. Campbell, President and Chief Executive Officer of Pilgrim Bancshares, Inc., (the “Company”) and Christopher G. McCourt, Senior Vice President and Chief Financial Officer of the Company, each certify in his capacity as an officer of the Company that he has reviewed the quarterly report on Form 10-Q for the quarter ended June 30, 2016 (the “Report”) and that to the best of his knowledge:

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

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

Date:  August 1, 2016	/s/ Francis E. Campbell
	Francis E. Campbell
	President and Chief Executive Officer
Date:  August 1, 2016	/s/ Christopher G. McCourt
	Christopher G. McCourt
	Senior Vice President and Chief Financial Officer

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

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Registrant Name	Pilgrim Bancshares, Inc.
Entity Central Index Key	0001601347
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	PLRM
Entity Common Stock, Shares Outstanding		2,260,439

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 1,662	$ 2,351
Interest-bearing demand deposits with other banks	6,474	8,319
Total cash and cash equivalents	8,136	10,670
Interest-bearing time deposits with other banks	1,087	1,087
Investments in available-for-sale securities (at fair value)	17,040	16,556
Investments in held-to-maturity securities (fair value of $140 at June 30, 2016, and $155 at December 31, 2015)	110	120
Federal Home Loan Bank stock, at cost	1,152	971
Investment in The Co-operative Central Reserve Fund, at cost	384	384
Loans, net of allowance for loan losses of $951 at June 30, 2016, and $886 at December 31, 2015	191,629	170,427
Premises and equipment, net	5,035	5,177
Investment in real estate, net	1,556	1,578
Accrued interest receivable	543	508
Deferred income tax asset, net	403	496
Bank-owned life insurance	2,297	2,276
Other assets	325	257
Total assets	229,697	210,507
Deposits:
Noninterest-bearing	17,482	15,290
Interest-bearing	165,116	154,082
Total deposits	182,598	169,372
Federal Home Loan Bank advances	14,500	8,500
Other liabilities	524	666
Total liabilities	197,622	178,538
Stockholders' equity:
Common stock $.01 par value per share: 10,000,000 shares authorized, 2,260,439 shares issued at June 30, 2016 and 2,224,489 shares issued at December 31, 2015	23	22
Additional paid-in capital	20,936	20,466
Retained earnings	13,594	13,253
Unearned compensation - ESOP (164,822 shares unallocated at June 30, 2016 and 167,819 shares unallocated at December 31, 2015)	(1,648)	(1,679)
Unearned compensation - Restricted Stock (70,950 shares non-vested at June 30, 2016)	(897)	0
Accumulated other comprehensive income (loss)	67	(93)
Total stockholders' equity	32,075	31,969
Total liabilities and stockholders' equity	$ 229,697	$ 210,507

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Securities held-to-maturity, fair value (in dollars)	$ 140	$ 155
Allowance for loan losses (in dollars)	$ 951	$ 886
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	2,260,439	2,224,489
Employee stock ownership plan, shares unallocated	164,822	167,819
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	70,950

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and dividend income:
Interest and fees on loans	$ 1,838	$ 1,609	$ 3,610	$ 3,143
Interest on debt securities:
Taxable	54	45	106	86
Tax-exempt	13	17	27	34
Other interest and dividends	23	11	51	25
Total interest and dividend income	1,928	1,682	3,794	3,288
Interest expense:
Interest on deposits	347	238	675	479
Interest on Federal Home Loan Bank advances	27	15	51	28
Total interest expense	374	253	726	507
Net interest and dividend income	1,554	1,429	3,068	2,781
Provision for loan losses	36	38	72	60
Net interest and dividend income after provision for loan losses	1,518	1,391	2,996	2,721
Noninterest income:
Service charges on deposit accounts	28	32	54	60
Gain on sales/calls of securities, net	3	0	3	0
Gain on sales of loans, net	17	3	34	37
Rental income	67	64	134	131
Other income	31	34	68	64
Total noninterest income	146	133	293	292
Noninterest expense:
Salaries and employee benefits	815	739	1,620	1,510
Occupancy expense	125	135	260	298
Equipment expense	47	45	94	93
Data processing expense	101	89	197	177
Professional fees	101	103	199	196
Federal Deposit Insurance Corporation assessment	38	34	74	71
Communications expense	22	30	64	60
Advertising and public relations expense	29	40	63	56
Insurance expense	15	20	30	40
Supplies expense	13	17	29	32
Other expense	59	61	113	124
Total noninterest expense	1,365	1,313	2,743	2,657
Income before income taxes	299	211	546	356
Income tax expense	114	77	205	121
Net income	$ 185	$ 134	$ 341	$ 235
Weighted-average number of common shares outstanding:
Basic	2,023,918	2,076,024	2,027,338	2,075,274
Diluted	2,023,990	2,076,024	2,027,400	2,075,274
Earnings per share:
Basic	$ 0.09	$ 0.06	$ 0.17	$ 0.11
Diluted	$ 0.09	$ 0.06	$ 0.17	$ 0.11

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income		$ 185	$ 134	$ 341	$ 235
Other comprehensive income (loss), net of tax:
Net unrealized holding gain (loss) on available-for-sale securities		89	(110)	256	(46)
Reclassification adjustment for net realized gains in net income	[1]	(3)	0	(3)	0
Other comprehensive income (loss) before income tax effect		86	(110)	253	(46)
Income tax (expense) benefit		(32)	41	(93)	17
Other comprehensive income (loss), net of tax		54	(69)	160	(29)
Comprehensive income		$ 239	$ 65	$ 501	$ 206

[1] Reclassification adjustments are comprised of realized security gains. The gains have been reclassified out of accumulated other comprehensive income and have affected certain lines in the consolidated statements of income as follows: the pre-tax amount is included in gain on sales/calls of securities, net; the tax expense amount, which was immaterial for the three and six months ended June 30, 2016, is included in income tax expense, and the after tax amount is included in net income.

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Compensation - ESOP [Member]	Unearned Compensation-Restricted Stock [Member]	Accumulated Other Comprehensive (Loss) [Member]
Balance at Dec. 31, 2014	$ 31,602	$ 22	$ 20,770	$ 12,599	$ (1,738)	$ 0	$ (51)
Balance (in Shares) at Dec. 31, 2014		2,247,589
Net income	235	$ 0	0	235	0	0	0
Common stock held by ESOP committed to be allocated (2,997 shares)	35	0	5	0	30		0
Restricted stock granted in connection with equity incentive plan						0
Other comprehensive loss, net of tax effect	(29)	0	0	0	0	0	(29)
Issuance costs related to initial public offering	(16)	0	(16)	0	0	0	0
Balance at Jun. 30, 2015	31,827	$ 22	20,759	12,834	(1,708)	0	(80)
Balance (in Shares) at Jun. 30, 2015		2,247,589
Balance at Dec. 31, 2014	31,602	$ 22	20,770	12,599	(1,738)	0	(51)
Balance (in Shares) at Dec. 31, 2014		2,247,589
Shares purchased and retired (in shares)		(23,100)
Balance at Dec. 31, 2015	31,969	$ 22	20,466	13,253	(1,679)	0	(93)
Balance (in Shares) at Dec. 31, 2015		2,224,489
Net income	341	$ 0	0	341	0	0	0
Common stock held by ESOP committed to be allocated (2,997 shares)	39	0	8	0	31	0	0
Restricted stock granted in connection with equity incentive plan	0	$ 1	911	0	0	(912)	0
Restricted stock granted in connection with equity incentive plan (shares)		70,950
Share based compensation-restricted stock	15	$ 0	0	0	0	15	0
Share based compensation-options	10	0	10	0	0	0	0
Shares purchased and retired	(459)	$ 0	(459)	0	0	0	0
Shares purchased and retired (in shares)		(35,000)
Other comprehensive loss, net of tax effect	160	$ 0	0	0	0	0	160
Balance at Jun. 30, 2016	$ 32,075	$ 23	$ 20,936	$ 13,594	$ (1,648)	$ (897)	$ 67
Balance (in Shares) at Jun. 30, 2016		2,260,439

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Common Stock [Member]
Number of shares committed to be allocated	2,997	2,997

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 341	$ 235
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	72	60
Capitalized - interest-interest-bearing deposits	0	(5)
Amortization of securities, net	40	43
Gain on sales/call of securities, net	(3)	0
Loans originated for sale	(1,788)	(1,260)
Proceeds from sales of loans originated for sale	1,822	1,297
Gain on sales of loans	(34)	(37)
Change in deferred origination fees, costs and discounts	(145)	(2)
Depreciation and amortization	167	171
Stock based compensation expense	64	35
Increase in accrued interest receivable	(35)	(8)
Increase in bank-owned life insurance	(21)	(24)
Decrease in other assets	(68)	31
Decrease in other liabilities	(142)	(19)
Net cash provided by operating activities	270	517
Cash flows from investing activities:
Proceeds from redemption and maturities of interest-bearing time deposits	0	1,500
Purchase of Federal Home Loan Bank stock	(260)	(137)
Redemption of Federal Home Loan Bank stock	79	0
Purchases of available-for-sale securities	(3,440)	(2,787)
Proceeds from maturities/calls/pay downs of available-for-sale securities	3,167	986
Proceeds from maturities of held-to-maturity securities	15	19
Loan principal originations and collections, net	(6,389)	(9,725)
Loans purchased	(19,775)	(8,055)
Loan participations sold	5,035	1,650
Capital expenditures	(3)	(43)
Net cash used in investing activities	(21,571)	(16,592)
Cash flows from financing activities:
Net increase in demand deposits, NOW and savings accounts	3,199	2,021
Net increase (decrease) in time deposits	10,027	(1,328)
Payments on Federal Home Loan Bank long-term advances	0	(500)
Proceeds from Federal Home Loan Bank long-term advances	6,000	5,500
Net change in short-term Federal Home Loan Bank advances	0	(1,000)
Issuance costs related to initial public offering	0	(16)
Purchase and retirement of common stock	(459)	0
Net cash provided by financing activities	18,767	4,677
Net decrease in cash and cash equivalents	(2,534)	(11,398)
Cash and cash equivalents at beginning of period	10,670	18,295
Cash and cash equivalents at end of period	8,136	6,897
Supplemental disclosures:
Interest paid	725	504
Income taxes paid	$ 416	$ 83

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NATURE OF OPERATIONS

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Nature of Operations

NOTE 1 - NATURE OF OPERATIONS

Pilgrim Bancshares, Inc. (the “Company”), was incorporated in February 2014 under the laws of the State of Maryland. The Company owns all of the outstanding shares of common stock of Pilgrim Bank (the “Bank”). The Bank is a Massachusetts chartered stock bank which was incorporated in 1916 and is headquartered in Cohasset, Massachusetts. The Bank operates its business from three banking offices located in Massachusetts. The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in residential and commercial real estate loans, and in commercial, consumer and small business loans. The Bank is subject to the regulations of, and periodic examination by, the Massachusetts Division of Banks (“DOB”) and the Federal Deposit Insurance Corporation (“the FDIC”).

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

NOTE 2 - BASIS OF PRESENTATION

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 48 South Main Street Corporation, which was formed to hold securities for its own account; 40 South Main Street Realty Trust, which was formed to hold our main office; and 800 CJC Realty Corporation, which was formed to invest in and develop residential and commercial property. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. Information included herein as of June 30, 2016 and for the interim periods ended June 30, 2016 and 2015 is unaudited; however, in the opinion of management, all adjustments considered necessary for a fair presentation have been included and were of a normal recurring nature. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire year or any other interim period.

These statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of securities and the valuation of deferred tax assets.

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RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

As an “emerging growth company,” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of June 30, 2016, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and makes targeted improvements to GAAP as follows:

1. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same manner.

2. Simplify the impairment assessment of equity investments without determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.

3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.

4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

5. Require an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.

6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.

7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.

Under the extended transition period for an emerging growth company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of item 5 above is permitted as of beginning of the fiscal years or interim periods for which financial statements have not been issued. Early adoption of all other amendments in this ASU is not permitted. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU was issued to increase transparency and comparability among organizations by requiring reporting entities to recognize all leases, including operating, as lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting.” The ASU simplifies several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).”  The amendments in this ASU affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income.  The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date.  To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  This ASU also requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a reporting entity’s portfolio.  Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.  Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021.  All entities may adopt the amendments in this ASU earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach).  The Company is currently reviewing the amendments in this ASU to determine the impact on its consolidated financial statements.

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EARNINGS PER SHARE (EPS)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

NOTE 4 - EARNINGS PER SHARE (EPS)

The Company has adopted the EPS guidance included in Accounting Standards Codification (“ASC”) 260-10. As presented below, basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For purposes of computing diluted EPS, the treasury stock method is used.

Unallocated ESOP shares are not deemed outstanding for earnings per share calculations.

EPS for the three and six months ended June 30, 2016 and 2015 (unaudited) have been computed based on the following:

	Three Months Ended June 30,				Six Months Ended June  30,
	2016		2015		2016		2015
Net income (In thousands)	$	185	$	134	$	341	$	235
Basic and diluted common shares:
Weighted average common shares outstanding		2,189,489		2,247,589		2,193,659		2,247,589
Weighted average unallocated ESOP shares		(165,571)		(171,565)		(166,321)		(172,315)
Basic weighted average shares outstanding		2,023,918		2,076,024		2,027,338		2,075,274
Dilutive potential common shares-options		-		-		-		-
Dilutive effect of unearned restricted stock		72		-		62		-
Diluted weighted average shares outstanding		2,023,990		2,076,024		2,027,400		2,075,274
Basic earnings per share	$	0.09	$	0.06	$	0.17	$	0.11
Diluted earnings per share	$	0.09	$	0.06	$	0.17	$	0.11

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INVESTMENTS IN SECURITIES

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments in Securities

NOTE 5 - INVESTMENTS IN SECURITIES

Investments in securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows:

	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value
	(In Thousands)
Available-for-sale securities:
June 30, 2016 (unaudited):
Debt securities issued by U.S. government corporations and agencies	$	7,490	$	51	$	-	$	7,541
Debt securities issued by states of the United States and political subdivisions of the states		2,401		43		15		2,429
Mortgage-backed securities		7,043		64		37		7,070
	$	16,934	$	158	$	52	$	17,040
December 31, 2015:
Debt securities issued by U.S. government corporations and agencies	$	6,339	$	6	$	34	$	6,311
Debt securities issued by states of the United States and political subdivisions of the states		2,456		7		19		2,444
Mortgage-backed securities		7,908		6		113		7,801
	$	16,703	$	19	$	166	$	16,556

	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value
	(In Thousands)
Held-to-maturity securities:
June 30, 2016 (unaudited):
Mortgage-backed securities	$	110	$	30	$	-	$	140
	$	110	$	30	$	-	$	140
December 31, 2015:
Mortgage-backed securities	$	120	$	35	$	-	$	155
	$	120	$	35	$	-	$	155

The scheduled maturities of debt securities were as follows as of June 30, 2016 (unaudited):

	Available-For-Sale		Held-To-Maturity
			Amortized
	Fair		Cost		Fair
	Value		Basis		Value
	(In Thousands)
Due within one year	$	-	$	-	$	-
Due after one year through five years		8,374		-		-
Due after five years through ten years		1,325		-		-
Due after ten years		271		-		-
Mortgage-backed securities		7,070		110		140
	$	17,040	$	110	$	140

No available-for-sale securities were sold during the six months ended June 30, 2016 and 2015 (unaudited).

As of June 30, 2016 (unaudited) and December 31, 2015, there were no securities of issuers whose aggregate carrying amount exceeded 10% of stockholders’ equity.

The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other-than-temporarily impaired, are as follows:

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
June 30, 2016 (unaudited):
Debt securities issued by U.S. government corporations and agencies	$	400	$	-	$	-	$	-	$	400	$	-
Debt securities issued by states of the United States and political subdivisions of the states		340		10		100		5		440		15
Mortgage-backed securities		252		2		2,419		35		2,671		37
Total temporarily impaired securities	$	992	$	12	$	2,519	$	40	$	3,511	$	52
December 31, 2015:
Debt securities issued by U.S. government corporations and agencies	$	5,320	$	21	$	487	$	13	$	5,807	$	34
Debt securities issued by states of the United States and political subdivisions of the states		-		-		912		19		912		19
Mortgage-backed securities		4,302		46		2,101		67		6,403		113
Total temporarily impaired securities	$	9,622	$	67	$	3,500	$	99	$	13,122	$	166

As of June 30, 2016 (unaudited), investment securities with unrealized losses consist of one debt security issued by U.S. government agencies and government-sponsored enterprises, two debt securities issued by states of the United States and political subdivisions of the states and thirteen mortgage-backed securities. The Company reviews investments for other-than-temporary impairment using a number of factors including the length of time and the extent to which the market value has been less than cost and by examining any credit deterioration or ratings downgrades. The unrealized losses in the above tables are primarily attributable to changes in market interest rates. As Company management has the intent and ability to hold impaired debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.

 

For those debt securities for which the fair value of the security is less than its amortized cost and the Company does not intend to sell such security and it is more likely than not that it will not be required to sell such security prior to the recovery of its amortized cost basis less any credit losses, ASC 320-10, “Investments - Debt and Equity Securities,” requires that the credit component of the other-than-temporary impairment losses be recognized in earnings while the noncredit component is recognized in other comprehensive income, net of related taxes. The Company did not record any other-than-temporary impairment losses of securities during the three and six months ended June 30, 2016 and 2015.

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LOANS

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

LOANS

NOTE 6 - LOANS

Loans consisted of the following:

	June 30,		December 31,
	2016		2015
	(unaudited)
			(In Thousands)
Real estate loans:
One-to four- family residential	$	123,383	$	104,861
Commercial		22,698		21,848
Multi-family		16,408		16,559
Home equity loans and lines of credit		2,215		2,093
Construction		21,842		18,755
Commercial and industrial loans		3,277		3,964
Consumer loans:
Consumer lines of credit		21		20
Other consumer loans		2,438		3,060
		192,282		171,160
Net deferred loan origination fees, costs and discounts		298		153
Allowance for loan losses		(951)		(886)
Net loans	$	191,629	$	170,427

The following tables set forth information regarding the allowance for loan losses for the six months ended June 30, 2016 and 2015 (unaudited) and at June 30, 2016 (unaudited) and December 31, 2015:

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Line of Credit		Other Consumer		Unallocated		Total
	(In Thousands)
Six months ended June 30, 2016 (unaudited):
Allowance for loan losses:
Beginning balance	$	373	$	146	$	62	$	14	$	216	$	13	$	1	$	29	$	32	$	886
Charge-offs		-		-		-		-		-		-		-		(7)		-		(7)
Recoveries		-		-		-		-		-		-		-		-		-		-
Provision (benefit)		77		(18)		-		(2)		14		(2)		-		1		2		72
Ending balance	$	450	$	128	$	62	$	12	$	230	$	11	$	1	$	23	$	34	$	951
Six months ended June 30, 2015 (unaudited):
Allowance for loan losses:
Beginning balance	$	362	$	134	$	36	$	27	$	121	$	8	$	1	$	20	$	34	$	743
Charge-offs		-		-		-		-		-		-		-		-		-		-
Recoveries		-		-		-		-		-		-		-		-		-		-
(Benefit) provision		(15)		1		5		(5)		81		11		-		14		(32)		60
Ending balance	$	347	$	135	$	41	$	22	$	202	$	19	$	1	$	34	$	2	$	803
At June 30, 2016 (unaudited):
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	21	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	21
Ending balance:
Collectively evaluated for impairment		429		128		62		12		230		11		1		23		34		930
Total allowance for loan losses ending balance	$	450	$	128	$	62	$	12	$	230	$	11	$	1	$	23	$	34	$	951
Loans:
Ending balance:
Individually evaluated for impairment	$	5,260	$	669	$	-	$	59	$	-	$	-	$	-	$	-	$	-	$	5,988
Ending balance:
Collectively evaluated for impairment		118,123		22,029		16,408		2,156		21,842		3,277		21		2,438		-		186,294
Total loans ending balance	$	123,383	$	22,698	$	16,408	$	2,215	$	21,842	$	3,277	$	21	$	2,438	$	-	$	192,282

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Lines of Credit		Other Consumer		Unallocated		Total
	(In Thousands)
December 31, 2015:
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	21	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	21
Ending balance:
Collectively evaluated for impairment		352		146		62		14		216		13		1		29		32		865
Total allowance for loan losses ending balance	$	373	$	146	$	62	$	14	$	216	$	13	$	1	$	29	$	32	$	886
Loans:
Ending balance:
Individually evaluated for impairment	$	5,665	$	679	$	-	$	59	$	-	$	-	$	-	$	-	$	-	$	6,403
Ending balance:
Collectively evaluated for impairment		99,196		21,169		16,559		2,034		18,755		3,964		20		3,060		-		164,757
Total loans ending balance	$	104,861	$	21,848	$	16,559	$	2,093	$	18,755	$	3,964	$	20	$	3,060	$	-	$	171,160

The following tables set forth information regarding nonaccrual loans and past-due loans at June 30, 2016 (unaudited) and December 31, 2015:

													90 Days
					90 Days								or More
					or More		Total		Total				Past Due		Nonaccrual
	30-59 Days		60-89 Days		Past Due		Past Due		Current		Total		and Accruing		Loans
	(In Thousands)
June 30, 2016 (unaudited):
Real estate loans:
One- to four-family residential	$	1,089	$	-	$	-	$	1,089	$	122,294	$	123,383	$	-	$	13
Commercial		669		-		-		669		22,029		22,698		-		-
Multi-family		-		-		-		-		16,408		16,408		-		-
Home equity loans and lines of credit		-		59		-		59		2,156		2,215		-		-
Construction		-		-		-		-		21,842		21,842		-		-
Commercial and industrial loans		-		-		-		-		3,277		3,277		-		-
Consumer loans:
Consumer lines of credit		-		-		-		-		21		21		-		-
Other consumer		6		-		-		6		2,432		2,438		-		-
Total	$	1,764	$	59	$	-	$	1,823	$	190,459	$	192,282	$	-	$	13
December 31, 2015:
Real estate loans:
One- to four-family residential	$	1,088	$	18	$	1,393	$	2,499	$	102,362	$	104,861	$	-	$	1,410
Commercial		-		-		-		-		21,848		21,848		-		-
Multi-family		-		-		-		-		16,559		16,559		-		-
Home equity loans and lines of credit		-		59		-		59		2,034		2,093		-		-
Construction		-		-		-		-		18,755		18,755		-		-
Commercial and industrial loans		-		-		-		-		3,964		3,964		-		-
Consumer loans:
Consumer lines of credit		-		-		-		-		20		20		-		-
Other consumer		16		-		-		16		3,044		3,060		-		-
Total	$	1,104	$	77	$	1,393	$	2,574	$	168,586	$	171,160	$	-	$	1,410

Information about loans that meet the definition of an impaired loan in ASC 310-10-35, “Receivables – Overall – Subsequent Measurement,” is as follows at June 30, 2016 (unaudited) and December 31, 2015 and the six months and year then ended, respectively.

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In Thousands)
June 30, 2016 (unaudited):
With no related allowance recorded:
Real estate loans:
One- to four-family residential	$	4,693	$	4,693	$	-	$	3,850	$	85
Commercial		669		669		-		674		15
Home equity loans and lines of credit		59		141		-		59		2
Total impaired with no related allowance	$	5,421	$	5,503	$	-	$	4,583	$	102
With an allowance recorded:
Real estate loans:
One- to four-family residential	$	567	$	567	$	21	$	567	$	10
Commercial		-		-		-		-		-
Home equity loans and lines of credit		-		-		-		-		-
Total impaired with an allowance recorded	$	567	$	567	$	21	$	567	$	10
Total
Real estate loans:
One- to four-family residential	$	5,260	$	5,260	$	21	$	4,417	$	95
Commercial		669		669		-		674		15
Home equity loans and lines of credit		59		141		-		59		2
Total impaired loans	$	5,988	$	6,070	$	21	$	5,150	$	112
December 31, 2015:
With no related allowance recorded:
Real estate loans:
One- to four-family residential	$	5,098	$	5,098	$	-	$	5,657	$	183
Commercial		679		679		-		689		44
Home equity loans and lines of credit		59		141		-		54		4
Total impaired with no related allowance	$	5,836	$	5,918	$	-	$	6,400	$	231
With an allowance recorded:
Real estate loans:
One- to four-family residential	$	567	$	567	$	21	$	571	$	19
Commercial		-		-		-		-		-
Home equity loans and lines of credit		-		-		-		-		-
Total impaired with an allowance recorded	$	567	$	567	$	21	$	571	$	19
Total
Real estate loans:
One- to four-family residential	$	5,665	$	5,665	$	21	$	6,228	$	202
Commercial		679		679		-		689		44
Home equity loans and lines of credit		59		141		-		54		4
Total impaired loans	$	6,403	$	6,485	$	21	$	6,971	$	250

The following tables present the Company’s loans by risk rating:

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Lines of Credit		Other Consumer		Total
	(In Thousands)
June 30, 2016 (unaudited):
Grade:
Pass	$	-	$	22,029	$	16,408	$	-	$	21,842	$	3,277	$	-	$	-	$	63,556
Special mention		2,347		669		-		53		-		-		-		-		3,069
Substandard		567		-		-		6		-		-		-		-		573
Loans not formally rated		120,469		-		-		2,156		-		-		21		2,438		125,084
Total	$	123,383	$	22,698	$	16,408	$	2,215	$	21,842	$	3,277	$	21	$	2,438	$	192,282
December 31, 2015:
Grade:
Pass	$	-	$	21,169	$	16,559	$	-	$	18,755	$	3,964	$	-	$	-	$	60,447
Special mention		539		-		-		53		-		-		-		-		592
Substandard		3,796		679		-		6		-		-		-		-		4,481
Loans not formally rated		100,526		-		-		2,034		-		-		20		3,060		105,640
Total	$	104,861	$	21,848	$	16,559	$	2,093	$	18,755	$	3,964	$	20	$	3,060	$	171,160

At June 30, 2016 (unaudited) and December 31, 2015, there were no loans rated “doubtful” or “loss.”

Credit Quality Information

The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

Loans rated 1 - 3: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and subsequently monitors these loans based on the borrower’s payment activity.

The Company classifies loans modified as troubled debt restructurings (TDRs) as impaired loans with an allowance established as part of the allocated component of the allowance for loan losses when the discounted cash flows or value of the underlying collateral of the impaired loan is lower than its carrying value.

During the six months ended June 30, 2016 (unaudited), five loans were modified as TDRs. The following table sets forth information regarding loans modified as TDRs during the six months ended June 30, 2016.

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Contracts		Investment		Investment
	(Dollars In Thousands)
June 30, 2016:
Troubled Debt Restructurings:
Real estate loans:
One- to four- family residential		3	$	2,121	$	2,121
Home equity loans and lines of credit		2		59		59
		5	$	2,180	$	2,180

At June 30, 2016 there were no loans modified as TDRs that subsequently defaulted.

As of June 30, 2016 (unaudited), there were no commitments to lend additional funds to borrowers whose loans were modified as troubled debt restructurings.

The following table provides information on how loans were modified as TDRs:

	Rate		Interest Only		Rate Reduction and
	Reduction		Period		Interest Only Period
	(In Thousands)
June 30, 2016
Real estate loans:
One- to four- family residential	$	-	$	2,121	$	-
Home equity loans and lines of credit		-		59		-
Total	$	-	$	2,180	$	-

An analysis of the loans modified as TDRs was performed as of June 30, 2016. An allowance of $21,000 was assigned to 1 one-to-four family residential loan. All loans were accruing.

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $27.4 million and $21.8 million at June 30, 2016 (unaudited) and December 31, 2015, respectively.

On March 25, 2106, the Company entered into an agreement to purchase $20.0 million of residential mortgages, with 50% of the purchase being fixed rate loans and 50% being adjustable rate mortgages of varying maturities. The purchase premium is fixed at 1%. As of June 30, 2016, the Company had purchased $8.5 million of loans under this agreement.

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DEPOSITS

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

DEPOSITS

NOTE 7 – DEPOSITS

The aggregate amount of time deposits in denominations that meet or exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 at June 30, 2016 (unaudited) and December 31, 2015 was $24.4 million and $20.9 million, respectively. The totals at June 30, 2016 and December 31, 2015 exclude $5.0 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit.

 

For time deposits as of June 30, 2016 (unaudited), the scheduled maturities for each of the following five years ended June 30 are:

	(In Thousands)
2017	$	57,366
2018		21,701
2019		4,137
2020		1,694
2021		8,379
Total	$	93,277

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FEDERAL HOME LOAN BANK ADVANCES

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

NOTE 8 - FEDERAL HOME LOAN BANK ADVANCES

Maturities of advances from the Federal Home Loan Bank of Boston (“FHLB”) for the years ending after June 30, 2016 (unaudited) are summarized as follows:

	(In Thousands)
2017	$	2,500
2018		3,000
2019		-
2020		-
2021		-
Thereafter		9,000
	$	14,500

Interest rates range from 0.49% to 1.36% with a weighted-average interest rate of 0.88% at June 30, 2016 (unaudited).

 

Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties, certain unencumbered investment securities and other qualified assets.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 9 - FAIR VALUE MEASUREMENTS

ASC 820-10, “Fair Value Measurement - Overall,” provides a framework for measuring fair value under generally accepted accounting principles. This guidance also allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis.

In accordance with ASC 820-10, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities.

Level 3 - Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value as of June 30, 2016 (unaudited) and December 31, 2015. The Company did not have any significant transfers between level 1 and level 2 of the fair value hierarchy during the six months ended June 30, 2016 (unaudited) and the year ended December 31, 2015.

The Company’s investment in mortgage-backed securities and other debt securities available-for-sale is generally classified within level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows.

The Company’s impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using level 2 inputs based upon appraisals of similar properties obtained from a third party. For level 3 inputs, fair value is based upon management estimates of the value of the underlying collateral or the present value of the expected cash flows.

The following summarizes assets measured at fair value as of June 30, 2016 (unaudited) and December 31, 2015.

ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		Level 1		Level 2		Level 3
	(In Thousands)
June 30, 2016 (unaudited) :
Debt securities issued by U.S. government corporations and agencies	$	7,541	$	-	$	7,541	$	-
Debt securities issued by states of the United States and political subdivisions of the states		2,429		-		2,429		-
Mortgage-backed securities		7,070		-		7,070		-
Totals	$	17,040	$	-	$	17,040	$	-
December 31, 2015 :
Debt securities issued by U.S. government corporations and agencies	$	6,311	$	-	$	6,311	$	-
Debt securities issued by states of the United States and political subdivisions of the states		2,444		-		2,444		-
Mortgage-backed securities		7,801		-		7,801		-
Totals	$	16,556	$	-	$	16,556	$	-

ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS

Under certain circumstances we make adjustments to fair value for certain assets and liabilities although they are not measured at fair value on an ongoing basis. The following table presents assets carried on the consolidated balance sheets by caption and by level in the fair value hierarchy at June 30, 2016 (unaudited) and December 31, 2015, for which a nonrecurring change in fair value has been recorded:

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		Level 1		Level 2		Level 3
	(In Thousands)
June 30, 2016 (unaudited):
Impaired loans	$	546	$	-	$	-	$	546
Totals	$	546	$	-	$	-	$	546
December 31, 2015:
Impaired loans	$	546	$	-	$	-	$	546
Totals	$	546	$	-	$	-	$	546

The estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows:

	June 30, 2016 (unaudited)
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	8,136	$	8,136	$	-	$	-	$	8,136
Interest-bearing time deposits with other banks		1,087		-		1,087		-		1,087
Available-for-sale securities		17,040		-		17,040		-		17,040
Held-to-maturity securities		110		-		140		-		140
Federal Home Loan Bank stock		1,152		1,152		-		-		1,152
Investment in The Co-operative Central Reserve Fund		384		384		-		-		384
Loans, net		191,629		-		-		193,613		193,613
Accrued interest receivable		543		543		-		-		543
Financial liabilities:
Deposits		182,598		-		183,198		-		183,198
FHLB advances		14,500		-		14,512		-		14,512

	December 31, 2015
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	10,670	$	10,670	$	-	$	-	$	10,670
Interest-bearing time deposits with other banks		1,087		-		1,086		-		1,086
Available-for-sale securities		16,556		-		16,556		-		16,556
Held-to-maturity securities		120		-		155		-		155
Federal Home Loan Bank stock		971		971		-		-		971
Investment in The Co-operative Central Reserve Fund		384		384		-		-		384
Loans, net		170,427		-		-		171,150		171,150
Accrued interest receivable		508		508		-		-		508
Financial liabilities:
Deposits		169,372		-		170,134		-		170,134
FHLB advances		8,500		-		8,458		-		8,458

The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets as of June 30, 2016 (unaudited) and December 31, 2015 under the indicated captions. Accounting policies related to financial instruments are described below.

ASC 825, “Financial Instruments,” requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows:

Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets' fair values.

Interest-bearing time deposits with other banks: The fair value of interest-bearing time deposits with other banks was determined by discounting the cash flows associated with these instruments using current market rates for deposits with similar characteristics.

Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated by discounting the future cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.

Deposit liabilities: The fair values disclosed for demand deposits, regular savings, NOW accounts, and money market accounts are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow 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: Fair values for Federal Home Loan Bank advances are estimated using a discounted cash flow technique that applies interest rates currently being offered on advances to a schedule of aggregated expected monthly maturities on Federal Home Loan Bank advances.

Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates.

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REGULATORY CAPITAL

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Regulatory Capital

NOTE 10 – REGULATORY CAPITAL

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 Bank’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.

Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to new capital regulations adopted by the Board of Governors of the Federal Reserve System (“FRB”) and the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The new regulations require a new common equity Tier 1 (“CET1”) capital ratio of 4.5%, increase the minimum Tier 1 capital to risk-weighted assets ratio to 6.0% from 4.0%, require a minimum total capital to risk-weighted assets ratio of 8.0% and require a minimum Tier 1 leverage ratio of 4.0%. CET1 generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under new prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CET1 capital ratio of 6.5% (new) and a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk based capital ratio of 10.0% (unchanged) and a Tier 1 leverage ratio of 5.0% (unchanged). In addition, the regulations establish a capital conservation buffer above the required capital ratios that began phasing in on January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. Beginning January 1, 2016, failure to maintain the capital conservation buffer will limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses.

The new regulations changed what constitutes regulatory capital. Certain instruments will no longer constitute qualifying capital, subject to phase-out periods. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CET1 will be deducted from capital.

The new regulations also changed the risk weights of certain assets, including an increase in the risk weight of certain high volatility commercial real estate acquisition, development and construction loans and non-residential mortgage loans that are 90 days past due or on non-accrual status to 150% from 100%, a credit conversion factor for the unused portion of commitments with maturities of less than one year that are not cancellable to 20% from 0%, an increase in the risk weight for mortgage servicing rights and deferred tax assets that are not deducted from capital to 250% from 100%, and an increase in the risk weight for equity exposures to 600% from 100%.

 

Management believes, as of June 30, 2016, that the Bank meets all capital adequacy requirements to which it is subject.

As of June 30, 2016 (unaudited), the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios are presented in the table below.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars In Thousands)
As of June 30, 2016 (unaudited) :
Total Capital (to Risk Weighted Assets)	$	23,560		14.7	%	$	12,858		8.0	%	$	16,073		10.0	%
Tier 1 Capital (to Risk Weighted Assets)		22,598		14.1			9,644		6.0			12,858		8.0
Common Equity Tier 1 Capital (to Risk Weighted Assets)		22,598		14.1			7,233		4.5			10,447		6.5
Tier 1 Capital (to Average Assets)		22,598		10.1			8,959		4.0			11,199		5.0
As of December 31, 2015:
Total Capital (to Risk Weighted Assets)	$	23,066		16.2	%	$	11,408		8.0	%	$	14,260		10.0	%
Tier 1 Capital (to Risk Weighted Assets)		22,171		15.6			8,556		6.0			11,408		8.0
Common Equity Tier 1 Capital (to Risk Weighted Assets)		22,171		15.6			6,417		4.5			9,269		6.5
Tier 1 Capital (to Average Assets)		22,171		10.9			8,169		4.0			10,211		5.0

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COMMON STOCK REPURCHASES

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Common Stock Repurchases

NOTE 11 – COMMON STOCK REPURCHASES

On November 24, 2015, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may purchase up to 89,903 shares of the Company’s common stock, equal to 4.0% of the Company’s outstanding common stock at the time. The program allows the Company to repurchase common stock at various prices in the open market or through private transactions. The actual amount and timing of future repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors.

In 2015, the Company repurchased 23,100 shares of common stock, at an average cost of $12.89.

During the six month period ending June 30, 2016 (unaudited), a total of 35,000 shares of common stock were repurchased at an average cost of $13.12.

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EQUITY INCENTIVE PLANS

6 Months Ended

Jun. 30, 2016

Equity Incentive Plans [Abstract]

EQUITY INCENTIVE PLANS

NOTE 12 – EQUITY INCENTIVE PLANS

On November 24, 2015, stockholders of the Company approved the 2015 Equity Incentive Plan (“2015 EIP”). The 2015 EIP provides for the award of up to 314,661 shares of common stock pursuant to grants of restricted stock awards and stock options. Pursuant to the terms of the 2015 EIP, on June 1, 2016, the Board of Directors granted 70,950 shares of restricted stock and 169,500 stock options to employees and directors. Of the 70,950 shares of restricted stock granted, 47,600 shares vest evenly over a five year period and 23,350 shares vest over a four year period. Of the 169,500 stock options granted, 122,500 options vest evenly over a five year period and 47,000 options vest over a four year period. The maximum term of each option is ten years. At June 30, 2016, there were 18,953 restricted stock awards and 55,258 stock options available for future grants.

The fair value of each option awarded for the 2015 EIP is estimated on the date of the grant using the Black-Scholes Option-Pricing Model. The expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term and the vesting period. The expected volatility is based on peer group volatility because the Company does not have sufficient trading history. The dividend yield is based on the Company’s expectation of no dividend payouts. The risk-free rate was based on the U.S. Treasury yield curve in effect at the date of the grant for a period equivalent to the expected life of the option.

 

The weighted average assumptions used and fair value for options granted during the six months ended June 30, 2016 are as follows:

	Stock Option
	Assumptions
Expected life (years)		6.40 years
Expected dividend yield		0	%
Expected volatility		20.24	%
Expected forfeiture rate		0	%
Risk free rate		1.67	%
Fair value per option	$	3.17

A summary of activity for the 2015 Equity Incentive Plan as of and for the six months ended June 30, 2016 is as follows:

	Stock Options
	2016
	Number of
	Shares
Outstanding at beginning of period		-
Granted		169,500
Outstanding at end of period		169,500
Exercisable at end of period		-
Weighted average fair value of options granted during the period	$	3.17
Weighted average contractual life remaining		9.9 years
Weighted average exercise price	$	12.85

	Non-vested
	Restricted  Stock
	2016
	Number of
	Shares
Outstanding at beginning of period		-
Granted		70,950
Outstanding at end of period		70,950
Weighted average grant date fair value	$	12.85

As of June 30, 2016, unrecognized share-based compensation expense related to non-vested options amounted to $527,000 and the unrecognized share-based compensation expense related to non-vested restricted stock amounted to $897,000. The unrecognized expense related to the non-vested options and non-vested restricted stock will be recognized over a weighted average period of 4.7 years.

For the three and six months ended June 30, 2016, the Company recognized compensation expense for stock options of $10,000, and the recognized tax benefit related to this expense was $1,000. For the three and six months ended June 30, 2016, the Company recognized compensation expense for restricted stock awards of $15,000 and the recognized tax benefit related to this expense was $6,000.  

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ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 48 South Main Street Corporation, which was formed to hold securities for its own account; 40 South Main Street Realty Trust, which was formed to hold our main office; and 800 CJC Realty Corporation, which was formed to invest in and develop residential and commercial property. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. Information included herein as of June 30, 2016 and for the interim periods ended June 30, 2016 and 2015 is unaudited; however, in the opinion of management, all adjustments considered necessary for a fair presentation have been included and were of a normal recurring nature. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire year or any other interim period.

These statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of securities and the valuation of deferred tax assets.

New Accounting Pronouncements, Policy

As an “emerging growth company,” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of June 30, 2016, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in this ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and makes targeted improvements to GAAP as follows:

1. Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same manner.

2. Simplify the impairment assessment of equity investments without determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.

3. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.

4. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

5. Require an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.

6. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.

7. Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.

Under the extended transition period for an emerging growth company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of item 5 above is permitted as of beginning of the fiscal years or interim periods for which financial statements have not been issued. Early adoption of all other amendments in this ASU is not permitted. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU was issued to increase transparency and comparability among organizations by requiring reporting entities to recognize all leases, including operating, as lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting.” The ASU simplifies several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).”  The amendments in this ASU affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income.  The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date.  To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  This ASU also requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a reporting entity’s portfolio.  Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.  Under the extended transition period for an emerging growth company, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021.  All entities may adopt the amendments in this ASU earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach).  The Company is currently reviewing the amendments in this ASU to determine the impact on its consolidated financial statements.

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EARNINGS PER SHARE (EPS) (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Summary of Earnings Per Share

EPS for the three and six months ended June 30, 2016 and 2015 (unaudited) have been computed based on the following:

	Three Months Ended June 30,				Six Months Ended June  30,
	2016		2015		2016		2015
Net income (In thousands)	$	185	$	134	$	341	$	235
Basic and diluted common shares:
Weighted average common shares outstanding		2,189,489		2,247,589		2,193,659		2,247,589
Weighted average unallocated ESOP shares		(165,571)		(171,565)		(166,321)		(172,315)
Basic weighted average shares outstanding		2,023,918		2,076,024		2,027,338		2,075,274
Dilutive potential common shares-options		-		-		-		-
Dilutive effect of unearned restricted stock		72		-		62		-
Diluted weighted average shares outstanding		2,023,990		2,076,024		2,027,400		2,075,274
Basic earnings per share	$	0.09	$	0.06	$	0.17	$	0.11
Diluted earnings per share	$	0.09	$	0.06	$	0.17	$	0.11

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INVESTMENTS IN SECURITIES (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Fair Values of Securities

Investments in securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows:

	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value
	(In Thousands)
Available-for-sale securities:
June 30, 2016 (unaudited):
Debt securities issued by U.S. government corporations and agencies	$	7,490	$	51	$	-	$	7,541
Debt securities issued by states of the United States and political subdivisions of the states		2,401		43		15		2,429
Mortgage-backed securities		7,043		64		37		7,070
	$	16,934	$	158	$	52	$	17,040
December 31, 2015:
Debt securities issued by U.S. government corporations and agencies	$	6,339	$	6	$	34	$	6,311
Debt securities issued by states of the United States and political subdivisions of the states		2,456		7		19		2,444
Mortgage-backed securities		7,908		6		113		7,801
	$	16,703	$	19	$	166	$	16,556

	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value
	(In Thousands)
Held-to-maturity securities:
June 30, 2016 (unaudited):
Mortgage-backed securities	$	110	$	30	$	-	$	140
	$	110	$	30	$	-	$	140
December 31, 2015:
Mortgage-backed securities	$	120	$	35	$	-	$	155
	$	120	$	35	$	-	$	155

Scheduled Maturities of Debt Securities

The scheduled maturities of debt securities were as follows as of June 30, 2016 (unaudited):

	Available-For-Sale		Held-To-Maturity
			Amortized
	Fair		Cost		Fair
	Value		Basis		Value
	(In Thousands)
Due within one year	$	-	$	-	$	-
Due after one year through five years		8,374		-		-
Due after five years through ten years		1,325		-		-
Due after ten years		271		-		-
Mortgage-backed securities		7,070		110		140
	$	17,040	$	110	$	140

Schedule of Aggregate Fair Value and Unrealized Losses of Securities

The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other-than-temporarily impaired, are as follows:

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
June 30, 2016 (unaudited):
Debt securities issued by U.S. government corporations and agencies	$	400	$	-	$	-	$	-	$	400	$	-
Debt securities issued by states of the United States and political subdivisions of the states		340		10		100		5		440		15
Mortgage-backed securities		252		2		2,419		35		2,671		37
Total temporarily impaired securities	$	992	$	12	$	2,519	$	40	$	3,511	$	52
December 31, 2015:
Debt securities issued by U.S. government corporations and agencies	$	5,320	$	21	$	487	$	13	$	5,807	$	34
Debt securities issued by states of the United States and political subdivisions of the states		-		-		912		19		912		19
Mortgage-backed securities		4,302		46		2,101		67		6,403		113
Total temporarily impaired securities	$	9,622	$	67	$	3,500	$	99	$	13,122	$	166

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LOANS (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Schedule of Loans

Loans consisted of the following:

	June 30,		December 31,
	2016		2015
	(unaudited)
			(In Thousands)
Real estate loans:
One-to four- family residential	$	123,383	$	104,861
Commercial		22,698		21,848
Multi-family		16,408		16,559
Home equity loans and lines of credit		2,215		2,093
Construction		21,842		18,755
Commercial and industrial loans		3,277		3,964
Consumer loans:
Consumer lines of credit		21		20
Other consumer loans		2,438		3,060
		192,282		171,160
Net deferred loan origination fees, costs and discounts		298		153
Allowance for loan losses		(951)		(886)
Net loans	$	191,629	$	170,427

Schedule of Allowance for Loan Losses

The following tables set forth information regarding the allowance for loan losses for the six months ended June 30, 2016 and 2015 (unaudited) and at June 30, 2016 (unaudited) and December 31, 2015:

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Line of Credit		Other Consumer		Unallocated		Total
	(In Thousands)
Six months ended June 30, 2016 (unaudited):
Allowance for loan losses:
Beginning balance	$	373	$	146	$	62	$	14	$	216	$	13	$	1	$	29	$	32	$	886
Charge-offs		-		-		-		-		-		-		-		(7)		-		(7)
Recoveries		-		-		-		-		-		-		-		-		-		-
Provision (benefit)		77		(18)		-		(2)		14		(2)		-		1		2		72
Ending balance	$	450	$	128	$	62	$	12	$	230	$	11	$	1	$	23	$	34	$	951
Six months ended June 30, 2015 (unaudited):
Allowance for loan losses:
Beginning balance	$	362	$	134	$	36	$	27	$	121	$	8	$	1	$	20	$	34	$	743
Charge-offs		-		-		-		-		-		-		-		-		-		-
Recoveries		-		-		-		-		-		-		-		-		-		-
(Benefit) provision		(15)		1		5		(5)		81		11		-		14		(32)		60
Ending balance	$	347	$	135	$	41	$	22	$	202	$	19	$	1	$	34	$	2	$	803
At June 30, 2016 (unaudited):
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	21	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	21
Ending balance:
Collectively evaluated for impairment		429		128		62		12		230		11		1		23		34		930
Total allowance for loan losses ending balance	$	450	$	128	$	62	$	12	$	230	$	11	$	1	$	23	$	34	$	951
Loans:
Ending balance:
Individually evaluated for impairment	$	5,260	$	669	$	-	$	59	$	-	$	-	$	-	$	-	$	-	$	5,988
Ending balance:
Collectively evaluated for impairment		118,123		22,029		16,408		2,156		21,842		3,277		21		2,438		-		186,294
Total loans ending balance	$	123,383	$	22,698	$	16,408	$	2,215	$	21,842	$	3,277	$	21	$	2,438	$	-	$	192,282

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Lines of Credit		Other Consumer		Unallocated		Total
	(In Thousands)
December 31, 2015:
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	21	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	21
Ending balance:
Collectively evaluated for impairment		352		146		62		14		216		13		1		29		32		865
Total allowance for loan losses ending balance	$	373	$	146	$	62	$	14	$	216	$	13	$	1	$	29	$	32	$	886
Loans:
Ending balance:
Individually evaluated for impairment	$	5,665	$	679	$	-	$	59	$	-	$	-	$	-	$	-	$	-	$	6,403
Ending balance:
Collectively evaluated for impairment		99,196		21,169		16,559		2,034		18,755		3,964		20		3,060		-		164,757
Total loans ending balance	$	104,861	$	21,848	$	16,559	$	2,093	$	18,755	$	3,964	$	20	$	3,060	$	-	$	171,160

Schedule of Nonaccrual Loans and Past-Due Loans

The following tables set forth information regarding nonaccrual loans and past-due loans at June 30, 2016 (unaudited) and December 31, 2015:

													90 Days
					90 Days								or More
					or More		Total		Total				Past Due		Nonaccrual
	30-59 Days		60-89 Days		Past Due		Past Due		Current		Total		and Accruing		Loans
	(In Thousands)
June 30, 2016 (unaudited):
Real estate loans:
One- to four-family residential	$	1,089	$	-	$	-	$	1,089	$	122,294	$	123,383	$	-	$	13
Commercial		669		-		-		669		22,029		22,698		-		-
Multi-family		-		-		-		-		16,408		16,408		-		-
Home equity loans and lines of credit		-		59		-		59		2,156		2,215		-		-
Construction		-		-		-		-		21,842		21,842		-		-
Commercial and industrial loans		-		-		-		-		3,277		3,277		-		-
Consumer loans:
Consumer lines of credit		-		-		-		-		21		21		-		-
Other consumer		6		-		-		6		2,432		2,438		-		-
Total	$	1,764	$	59	$	-	$	1,823	$	190,459	$	192,282	$	-	$	13
December 31, 2015:
Real estate loans:
One- to four-family residential	$	1,088	$	18	$	1,393	$	2,499	$	102,362	$	104,861	$	-	$	1,410
Commercial		-		-		-		-		21,848		21,848		-		-
Multi-family		-		-		-		-		16,559		16,559		-		-
Home equity loans and lines of credit		-		59		-		59		2,034		2,093		-		-
Construction		-		-		-		-		18,755		18,755		-		-
Commercial and industrial loans		-		-		-		-		3,964		3,964		-		-
Consumer loans:
Consumer lines of credit		-		-		-		-		20		20		-		-
Other consumer		16		-		-		16		3,044		3,060		-		-
Total	$	1,104	$	77	$	1,393	$	2,574	$	168,586	$	171,160	$	-	$	1,410

Schedule of Impaired Loan

Information about loans that meet the definition of an impaired loan in ASC 310-10-35, “Receivables – Overall – Subsequent Measurement,” is as follows at June 30, 2016 (unaudited) and December 31, 2015 and the six months and year then ended, respectively.

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In Thousands)
June 30, 2016 (unaudited):
With no related allowance recorded:
Real estate loans:
One- to four-family residential	$	4,693	$	4,693	$	-	$	3,850	$	85
Commercial		669		669		-		674		15
Home equity loans and lines of credit		59		141		-		59		2
Total impaired with no related allowance	$	5,421	$	5,503	$	-	$	4,583	$	102
With an allowance recorded:
Real estate loans:
One- to four-family residential	$	567	$	567	$	21	$	567	$	10
Commercial		-		-		-		-		-
Home equity loans and lines of credit		-		-		-		-		-
Total impaired with an allowance recorded	$	567	$	567	$	21	$	567	$	10
Total
Real estate loans:
One- to four-family residential	$	5,260	$	5,260	$	21	$	4,417	$	95
Commercial		669		669		-		674		15
Home equity loans and lines of credit		59		141		-		59		2
Total impaired loans	$	5,988	$	6,070	$	21	$	5,150	$	112
December 31, 2015:
With no related allowance recorded:
Real estate loans:
One- to four-family residential	$	5,098	$	5,098	$	-	$	5,657	$	183
Commercial		679		679		-		689		44
Home equity loans and lines of credit		59		141		-		54		4
Total impaired with no related allowance	$	5,836	$	5,918	$	-	$	6,400	$	231
With an allowance recorded:
Real estate loans:
One- to four-family residential	$	567	$	567	$	21	$	571	$	19
Commercial		-		-		-		-		-
Home equity loans and lines of credit		-		-		-		-		-
Total impaired with an allowance recorded	$	567	$	567	$	21	$	571	$	19
Total
Real estate loans:
One- to four-family residential	$	5,665	$	5,665	$	21	$	6,228	$	202
Commercial		679		679		-		689		44
Home equity loans and lines of credit		59		141		-		54		4
Total impaired loans	$	6,403	$	6,485	$	21	$	6,971	$	250

Schedule of Loans by Risk Rating

The following tables present the Company’s loans by risk rating:

	Real Estate:												Consumer
	One- to four-family						Home Equity Loans				Commercial and		Consumer
	Residential		Commercial		Multi-family		and Lines of Credit		Construction		Industrial Loans		Lines of Credit		Other Consumer		Total
	(In Thousands)
June 30, 2016 (unaudited):
Grade:
Pass	$	-	$	22,029	$	16,408	$	-	$	21,842	$	3,277	$	-	$	-	$	63,556
Special mention		2,347		669		-		53		-		-		-		-		3,069
Substandard		567		-		-		6		-		-		-		-		573
Loans not formally rated		120,469		-		-		2,156		-		-		21		2,438		125,084
Total	$	123,383	$	22,698	$	16,408	$	2,215	$	21,842	$	3,277	$	21	$	2,438	$	192,282
December 31, 2015:
Grade:
Pass	$	-	$	21,169	$	16,559	$	-	$	18,755	$	3,964	$	-	$	-	$	60,447
Special mention		539		-		-		53		-		-		-		-		592
Substandard		3,796		679		-		6		-		-		-		-		4,481
Loans not formally rated		100,526		-		-		2,034		-		-		20		3,060		105,640
Total	$	104,861	$	21,848	$	16,559	$	2,093	$	18,755	$	3,964	$	20	$	3,060	$	171,160

Schedule of Troubled Debt Restructuring, Current Period

During the six months ended June 30, 2016 (unaudited), five loans were modified as TDRs. The following table sets forth information regarding loans modified as TDRs during the six months ended June 30, 2016.

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Contracts		Investment		Investment
	(Dollars In Thousands)
June 30, 2016:
Troubled Debt Restructurings:
Real estate loans:
One- to four- family residential		3	$	2,121	$	2,121
Home equity loans and lines of credit		2		59		59
		5	$	2,180	$	2,180

The following table provides information on how loans were modified as TDRs:

	Rate		Interest Only		Rate Reduction and
	Reduction		Period		Interest Only Period
	(In Thousands)
June 30, 2016
Real estate loans:
One- to four- family residential	$	-	$	2,121	$	-
Home equity loans and lines of credit		-		59		-
Total	$	-	$	2,180	$	-

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DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Summary of Scheduled Maturities of Time Deposits

For time deposits as of June 30, 2016 (unaudited), the scheduled maturities for each of the following five years ended June 30 are:

	(In Thousands)
2017	$	57,366
2018		21,701
2019		4,137
2020		1,694
2021		8,379
Total	$	93,277

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FEDERAL HOME LOAN BANK ADVANCES (Tables)

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Summary of Maturities of Advances from the Federal Home Loan Bank ("FHLB") of Boston

Maturities of advances from the Federal Home Loan Bank of Boston (“FHLB”) for the years ending after June 30, 2016 (unaudited) are summarized as follows:

	(In Thousands)
2017	$	2,500
2018		3,000
2019		-
2020		-
2021		-
Thereafter		9,000
	$	14,500

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Summary of Assets Measured at Fair Value on a Recurring Basis

ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		Level 1		Level 2		Level 3
	(In Thousands)
June 30, 2016 (unaudited) :
Debt securities issued by U.S. government corporations and agencies	$	7,541	$	-	$	7,541	$	-
Debt securities issued by states of the United States and political subdivisions of the states		2,429		-		2,429		-
Mortgage-backed securities		7,070		-		7,070		-
Totals	$	17,040	$	-	$	17,040	$	-
December 31, 2015 :
Debt securities issued by U.S. government corporations and agencies	$	6,311	$	-	$	6,311	$	-
Debt securities issued by states of the United States and political subdivisions of the states		2,444		-		2,444		-
Mortgage-backed securities		7,801		-		7,801		-
Totals	$	16,556	$	-	$	16,556	$	-

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS

Under certain circumstances we make adjustments to fair value for certain assets and liabilities although they are not measured at fair value on an ongoing basis. The following table presents assets carried on the consolidated balance sheets by caption and by level in the fair value hierarchy at June 30, 2016 (unaudited) and December 31, 2015, for which a nonrecurring change in fair value has been recorded:

	Fair Value Measurements at Reporting Date Using:
			Quoted Prices in		Significant		Significant
			Active Markets for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		Level 1		Level 2		Level 3
	(In Thousands)
June 30, 2016 (unaudited):
Impaired loans	$	546	$	-	$	-	$	546
Totals	$	546	$	-	$	-	$	546
December 31, 2015:
Impaired loans	$	546	$	-	$	-	$	546
Totals	$	546	$	-	$	-	$	546

Schedule of Estimated Fair Values of Financial Instruments Held or Issued for Purposes Other Than Trading

The estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows:

	June 30, 2016 (unaudited)
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	8,136	$	8,136	$	-	$	-	$	8,136
Interest-bearing time deposits with other banks		1,087		-		1,087		-		1,087
Available-for-sale securities		17,040		-		17,040		-		17,040
Held-to-maturity securities		110		-		140		-		140
Federal Home Loan Bank stock		1,152		1,152		-		-		1,152
Investment in The Co-operative Central Reserve Fund		384		384		-		-		384
Loans, net		191,629		-		-		193,613		193,613
Accrued interest receivable		543		543		-		-		543
Financial liabilities:
Deposits		182,598		-		183,198		-		183,198
FHLB advances		14,500		-		14,512		-		14,512

	December 31, 2015
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	10,670	$	10,670	$	-	$	-	$	10,670
Interest-bearing time deposits with other banks		1,087		-		1,086		-		1,086
Available-for-sale securities		16,556		-		16,556		-		16,556
Held-to-maturity securities		120		-		155		-		155
Federal Home Loan Bank stock		971		971		-		-		971
Investment in The Co-operative Central Reserve Fund		384		384		-		-		384
Loans, net		170,427		-		-		171,150		171,150
Accrued interest receivable		508		508		-		-		508
Financial liabilities:
Deposits		169,372		-		170,134		-		170,134
FHLB advances		8,500		-		8,458		-		8,458

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REGULATORY CAPITAL (Tables)

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Schedule of Bank's Actual Capital Amounts and Ratios

The Bank’s actual capital amounts and ratios are presented in the table below.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars In Thousands)
As of June 30, 2016 (unaudited) :
Total Capital (to Risk Weighted Assets)	$	23,560		14.7	%	$	12,858		8.0	%	$	16,073		10.0	%
Tier 1 Capital (to Risk Weighted Assets)		22,598		14.1			9,644		6.0			12,858		8.0
Common Equity Tier 1 Capital (to Risk Weighted Assets)		22,598		14.1			7,233		4.5			10,447		6.5
Tier 1 Capital (to Average Assets)		22,598		10.1			8,959		4.0			11,199		5.0
As of December 31, 2015:
Total Capital (to Risk Weighted Assets)	$	23,066		16.2	%	$	11,408		8.0	%	$	14,260		10.0	%
Tier 1 Capital (to Risk Weighted Assets)		22,171		15.6			8,556		6.0			11,408		8.0
Common Equity Tier 1 Capital (to Risk Weighted Assets)		22,171		15.6			6,417		4.5			9,269		6.5
Tier 1 Capital (to Average Assets)		22,171		10.9			8,169		4.0			10,211		5.0

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EQUITY INCENTIVE PLANS (Tables)

6 Months Ended

Jun. 30, 2016

Equity Incentive Plans [Abstract]

Schedule of Weighted Average Assumptions

The weighted average assumptions used and fair value for options granted during the six months ended June 30, 2016 are as follows:

	Stock Option
	Assumptions
Expected life (years)		6.40 years
Expected dividend yield		0	%
Expected volatility		20.24	%
Expected forfeiture rate		0	%
Risk free rate		1.67	%
Fair value per option	$	3.17

Schedule of Equity Incentive Plan

A summary of activity for the 2015 Equity Incentive Plan as of and for the six months ended June 30, 2016 is as follows:

	Stock Options
	2016
	Number of
	Shares
Outstanding at beginning of period		-
Granted		169,500
Outstanding at end of period		169,500
Exercisable at end of period		-
Weighted average fair value of options granted during the period	$	3.17
Weighted average contractual life remaining		9.9 years
Weighted average exercise price	$	12.85

Schedule of Non-vested Restricted Stock

	Non-vested
	Restricted  Stock
	2016
	Number of
	Shares
Outstanding at beginning of period		-
Granted		70,950
Outstanding at end of period		70,950
Weighted average grant date fair value	$	12.85

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NATURE OF OPERATIONS - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016
Organization and Nature of Operations [Line Items]
Entity Incorporation, State Country Name	Maryland
Entity Incorporation, Date of Incorporation	Feb. 28, 2014

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EARNINGS PER SHARE (EPS) - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income (In thousands)	$ 185	$ 134	$ 341	$ 235
Basic and diluted common shares:
Weighted average common shares outstanding	2,189,489	2,247,589	2,193,659	2,247,589
Weighted average unallocated ESOP shares	(165,571)	(171,565)	(166,321)	(172,315)
Basic weighted average shares outstanding	2,023,918	2,076,024	2,027,338	2,075,274
Diluted weighted average shares outstanding	2,023,990	2,076,024	2,027,400	2,075,274
Basic earnings per share	$ 0.09	$ 0.06	$ 0.17	$ 0.11
Diluted earnings per share	$ 0.09	$ 0.06	$ 0.17	$ 0.11
Restricted Stock [Member]
Basic and diluted common shares:
Weighted Average Number Diluted Shares Outstanding Adjustment	72	0	62	0
Employee Stock Option [Member]
Basic and diluted common shares:
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0

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INVESTMENTS IN SECURITIES - Schedule of Amortized Cost and Fair Values of Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost Basis	$ 16,934	$ 16,703
Available-for-sale securities, Gross Unrealized Gains	158	19
Available-for-sale securities, Gross Unrealized Losses	52	166
Available-for-sale securities, Fair Value	17,040	16,556
Held-to-maturity securities, Amortized Cost Basis	110	120
Held-to-maturity securities, Gross Unrealized Gains	30	35
Held-to-maturity securities, Gross Unrealized Losses	0	0
Held-to-maturity securities, Fair Value	140	155
Debt securities issued by U.S. government corporations and agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost Basis	7,490	6,339
Available-for-sale securities, Gross Unrealized Gains	51	6
Available-for-sale securities, Gross Unrealized Losses	0	34
Available-for-sale securities, Fair Value	7,541	6,311
Debt Securities Issued by States of the United States and Political Subdivisions of the States [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost Basis	2,401	2,456
Available-for-sale securities, Gross Unrealized Gains	43	7
Available-for-sale securities, Gross Unrealized Losses	15	19
Available-for-sale securities, Fair Value	2,429	2,444
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost Basis	7,043	7,908
Available-for-sale securities, Gross Unrealized Gains	64	6
Available-for-sale securities, Gross Unrealized Losses	37	113
Available-for-sale securities, Fair Value	7,070	7,801
Held-to-maturity securities, Amortized Cost Basis	110	120
Held-to-maturity securities, Gross Unrealized Gains	30	35
Held-to-maturity securities, Gross Unrealized Losses	0	0
Held-to-maturity securities, Fair Value	$ 140	$ 155

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INVESTMENTS IN SECURITIES - Scheduled Maturities of Debt Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Due within one year, Available-For-Sale Securities Fair Value	$ 0
Due after one year through five years, Available-For-Sale Securities Fair Value	8,374
Due after five years through ten years, Available-For-Sale Securities Fair Value	1,325
Due after ten years, Available-For-Sale Securities Fair Value	271
Mortgage-backed securities, Available-For-Sale Securities Fair Value	7,070
Available-For-Sale Securities Fair Value Total	17,040
Due within one year, Held-To-Maturity Securities Amortized Cost Basis	0
Due after one year through five years, Held-To-Maturity Securities Amortized Cost Basis	0
Due after five years through ten years, Held-To-Maturity Securities Amortized Cost Basis	0
Due after ten years, Held-To-Maturity Securities Amortized Cost Basis	0
Mortgage-backed securities, Held-To-Maturity Securities Amortized Cost Basis	110
Held-To-Maturity Securities Amortized Cost Basis Total	110	$ 120
Due within one year, Held-To-Maturity Securities Fair Value	0
Due after one year through five years, Held-To-Maturity Securities Fair Value	0
Due after five years through ten years, Held-To-Maturity Securities Fair Value	0
Due after ten years, Held-To-Maturity Securities Fair Value	0
Mortgage-backed securities, Held-To-Maturity Securities Fair Value	140
Held-To-Maturity Securities Fair Value Total	$ 140	$ 155

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INVESTMENTS IN SECURITIES - Schedule of Aggregate Fair Value and Unrealized Losses of Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	$ 992	$ 9,622
Less than 12 Months, Unrealized Losses	12	67
12 Months or Longer, Fair Value	2,519	3,500
12 Months or Longer, Unrealized Losses	40	99
Fair Value, Total	3,511	13,122
Unrealized Losses, Total	52	166
Debt securities issued by U.S. government corporations and agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	400
Less than 12 Months, Unrealized Losses	0
12 Months or Longer, Fair Value	0
12 Months or Longer, Unrealized Losses	0
Fair Value, Total	400
Unrealized Losses, Total	0
Debt securities issued by U.S. government corporations and agencies [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value		5,320
Less than 12 Months, Unrealized Losses		21
12 Months or Longer, Fair Value		487
12 Months or Longer, Unrealized Losses		13
Fair Value, Total		5,807
Unrealized Losses, Total		34
Debt Securities Issued by States of the United States and Political Subdivisions of the States [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	340	0
Less than 12 Months, Unrealized Losses	10	0
12 Months or Longer, Fair Value	100	912
12 Months or Longer, Unrealized Losses	5	19
Fair Value, Total	440	912
Unrealized Losses, Total	15	19
Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	252	4,302
Less than 12 Months, Unrealized Losses	2	46
12 Months or Longer, Fair Value	2,419	2,101
12 Months or Longer, Unrealized Losses	35	67
Fair Value, Total	2,671	6,403
Unrealized Losses, Total	$ 37	$ 113

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INVESTMENTS IN SECURITIES - Additional Information (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Percentage of stockholders' equity	10.00%	10.00%

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LOANS - Schedule of Loan (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	$ 192,282	$ 171,160
Net deferred loan origination fees, costs and discounts	298	153
Allowance for loan losses	(951)	(886)	$ (803)	$ (743)
Net loans	191,629	170,427
Commercial and Industrial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	3,277	3,964
Allowance for loan losses	(11)	(13)	(19)	(8)
Real Estate Loans [Member] | One-to Four-Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	123,383	104,861
Allowance for loan losses	(450)	(373)	(347)	(362)
Real Estate Loans [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	22,698	21,848
Allowance for loan losses	(128)	(146)	(135)	(134)
Real Estate Loans [Member] | Multi-Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	16,408	16,559
Allowance for loan losses	(62)	(62)	(41)	(36)
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	2,215	2,093
Allowance for loan losses	(12)	(14)	(22)	(27)
Real Estate Loans [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	21,842	18,755
Allowance for loan losses	(230)	(216)	(202)	(121)
Consumer Loans [Member] | Consumer Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	21	20
Allowance for loan losses	(1)	(1)	(1)	(1)
Consumer Loans [Member] | Other Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	2,438	3,060
Allowance for loan losses	$ (23)	$ (29)	$ (34)	$ (20)

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LOANS - Schedule of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			$ 886	$ 743
Charge-offs			(7)	0
Recoveries			0	0
Provision (benefit)	$ 36	$ 38	72	60
Ending balance	951	803	951	803
Individually evaluated for impairment	21		21		$ 21
Collectively evaluated for impairment	930		930		865
Total allowance for loan losses ending balance	951		951		886
Individually evaluated for impairment	5,988		5,988		6,403
Collectively evaluated for impairment	186,294		186,294		164,757
Total loans ending balance	192,282		192,282		171,160
Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			13	8
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			(2)	11
Ending balance	11	19	11	19
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	11		11		13
Total allowance for loan losses ending balance	11		11		13
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	3,277		3,277		3,964
Total loans ending balance	3,277		3,277		3,964
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			32	34
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			2	(32)
Ending balance	34	2	34	2
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	34		34		32
Total allowance for loan losses ending balance	34		34		32
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	0		0		0
Total loans ending balance	0		0		0
Real Estate Loans [Member] | One-to Four-Family Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			373	362
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			77	(15)
Ending balance	450	347	450	347
Individually evaluated for impairment	21		21		21
Collectively evaluated for impairment	429		429		352
Total allowance for loan losses ending balance	450		450		373
Individually evaluated for impairment	5,260		5,260		5,665
Collectively evaluated for impairment	118,123		118,123		99,196
Total loans ending balance	123,383		123,383		104,861
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			146	134
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			(18)	1
Ending balance	128	135	128	135
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	128		128		146
Total allowance for loan losses ending balance	128		128		146
Individually evaluated for impairment	669		669		679
Collectively evaluated for impairment	22,029		22,029		21,169
Total loans ending balance	22,698		22,698		21,848
Real Estate Loans [Member] | Multi-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			62	36
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			0	5
Ending balance	62	41	62	41
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	62		62		62
Total allowance for loan losses ending balance	62		62		62
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	16,408		16,408		16,559
Total loans ending balance	16,408		16,408		16,559
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			14	27
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			(2)	(5)
Ending balance	12	22	12	22
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	12		12		14
Total allowance for loan losses ending balance	12		12		14
Individually evaluated for impairment	59		59		59
Collectively evaluated for impairment	2,156		2,156		2,034
Total loans ending balance	2,215		2,215		2,093
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			216	121
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			14	81
Ending balance	230	202	230	202
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	230		230		216
Total allowance for loan losses ending balance	230		230		216
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	21,842		21,842		18,755
Total loans ending balance	21,842		21,842		18,755
Consumer Loans [Member] | Consumer Line of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			1	1
Charge-offs			0	0
Recoveries			0	0
Provision (benefit)			0	0
Ending balance	1	1	1	1
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	1		1		1
Total allowance for loan losses ending balance	1		1		1
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	21		21		20
Total loans ending balance	21		21		20
Consumer Loans [Member] | Other Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			29	20
Charge-offs			(7)	0
Recoveries			0	0
Provision (benefit)			1	14
Ending balance	23	$ 34	23	$ 34
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	23		23		29
Total allowance for loan losses ending balance	23		23		29
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	2,438		2,438		3,060
Total loans ending balance	$ 2,438		$ 2,438		$ 3,060

XML

LOANS - Schedule of Nonaccrual Loans and Past-Due Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 1,823	$ 2,574
Total Current	190,459	168,586
Total	192,282	171,160
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	13	1,410
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,764	1,104
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	59	77
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	1,393
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Total Current	3,277	3,964
Total	3,277	3,964
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Commercial and Industrial Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial and Industrial Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial and Industrial Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | One-to Four-Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,089	2,499
Total Current	122,294	102,362
Total	123,383	104,861
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	13	1,410
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,089	1,088
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	18
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	1,393
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	669	0
Total Current	22,029	21,848
Total	22,698	21,848
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Real Estate Loans [Member] | Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	669	0
Real Estate Loans [Member] | Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Multi-Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Total Current	16,408	16,559
Total	16,408	16,559
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Real Estate Loans [Member] | Multi-Family [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Multi-Family [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Multi-Family [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	59	59
Total Current	2,156	2,034
Total	2,215	2,093
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	59	59
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Total Current	21,842	18,755
Total	21,842	18,755
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Real Estate Loans [Member] | Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Total Current	21	20
Total	21	20
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer Loans [Member] | Other Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	16
Total Current	2,432	3,044
Total	2,438	3,060
90 Days or More Past Due and Accruing	0	0
Nonaccrual Loans	0	0
Consumer Loans [Member] | Other Consumer Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	16
Consumer Loans [Member] | Other Consumer Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer Loans [Member] | Other Consumer Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 0	$ 0

XML

LOANS - Schedule of Impaired Loan (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	$ 5,421	$ 5,836
With no related allowance recorded, Unpaid Principal Balance	5,503	5,918
With no related allowance recorded, Related Allowance	0	0
With no related allowance recorded, Average Recorded Investment	4,583	6,400
With no related allowance recorded, Interest Income Recognized	102	231
With an allowance recorded, Recorded Investment	567	567
With an allowance recorded, Unpaid Principal Balance	567	567
With an allowance recorded, Related Allowance	21	21
With an allowance recorded, Average Recorded Investment	567	571
With an allowance recorded, Interest Income Recognized	10	19
Total, Recorded Investment	5,988	6,403
Total, Unpaid Principal Balance	6,070	6,485
Total, Related Allowance	21	21
Total, Average Recorded Investment	5,150	6,971
Total, Interest Income Recognized	112	250
Real Estate Loans [Member] | One-to Four-Family Residential [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	4,693	5,098
With no related allowance recorded, Unpaid Principal Balance	4,693	5,098
With no related allowance recorded, Related Allowance	0	0
With no related allowance recorded, Average Recorded Investment	3,850	5,657
With no related allowance recorded, Interest Income Recognized	85	183
With an allowance recorded, Recorded Investment	567	567
With an allowance recorded, Unpaid Principal Balance	567	567
With an allowance recorded, Related Allowance	21	21
With an allowance recorded, Average Recorded Investment	567	571
With an allowance recorded, Interest Income Recognized	10	19
Total, Recorded Investment	5,260	5,665
Total, Unpaid Principal Balance	5,260	5,665
Total, Related Allowance	21	21
Total, Average Recorded Investment	4,417	6,228
Total, Interest Income Recognized	95	202
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	669	679
With no related allowance recorded, Unpaid Principal Balance	669	679
With no related allowance recorded, Related Allowance	0	0
With no related allowance recorded, Average Recorded Investment	674	689
With no related allowance recorded, Interest Income Recognized	15	44
With an allowance recorded, Recorded Investment	0	0
With an allowance recorded, Unpaid Principal Balance	0	0
With an allowance recorded, Related Allowance	0	0
With an allowance recorded, Average Recorded Investment	0	0
With an allowance recorded, Interest Income Recognized	0	0
Total, Recorded Investment	669	679
Total, Unpaid Principal Balance	669	679
Total, Related Allowance	0	0
Total, Average Recorded Investment	674	689
Total, Interest Income Recognized	15	44
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	59	59
With no related allowance recorded, Unpaid Principal Balance	141	141
With no related allowance recorded, Related Allowance	0	0
With no related allowance recorded, Average Recorded Investment	59	54
With no related allowance recorded, Interest Income Recognized	2	4
With an allowance recorded, Recorded Investment	0	0
With an allowance recorded, Unpaid Principal Balance	0	0
With an allowance recorded, Related Allowance	0	0
With an allowance recorded, Average Recorded Investment	0	0
With an allowance recorded, Interest Income Recognized	0	0
Total, Recorded Investment	59	59
Total, Unpaid Principal Balance	141	141
Total, Related Allowance	0	0
Total, Average Recorded Investment	59	54
Total, Interest Income Recognized	$ 2	$ 4

XML

LOANS - Schedule of Loans by Risk Rating (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	$ 192,282	$ 171,160
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	63,556	60,447
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	3,069	592
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	573	4,481
Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	125,084	105,640
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	3,277	3,964
Commercial and Industrial Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	3,277	3,964
Commercial and Industrial Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Commercial and Industrial Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Commercial and Industrial Loans [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | One-to Four-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	123,383	104,861
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	2,347	539
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	567	3,796
Real Estate Loans [Member] | One-to Four-Family Residential [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	120,469	100,526
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	22,698	21,848
Real Estate Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	22,029	21,169
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	669	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	679
Real Estate Loans [Member] | Commercial [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Multi-Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	16,408	16,559
Real Estate Loans [Member] | Multi-Family [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	16,408	16,559
Real Estate Loans [Member] | Multi-Family [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Multi-Family [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Multi-Family [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	2,215	2,093
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	53	53
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	6	6
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	2,156	2,034
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	21,842	18,755
Real Estate Loans [Member] | Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	21,842	18,755
Real Estate Loans [Member] | Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Real Estate Loans [Member] | Construction [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	21	20
Consumer Loans [Member] | Consumer Line of Credit [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Consumer Line of Credit [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	21	20
Consumer Loans [Member] | Other Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	2,438	3,060
Consumer Loans [Member] | Other Consumer Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Other Consumer Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Other Consumer Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	0	0
Consumer Loans [Member] | Other Consumer Loans [Member] | Loans Not Formally Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases receivable	$ 2,438	$ 3,060

XML

LOANS - Schedule of Loans Modified as Troubled Debt Restructuring (Detail) - Real Estate [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Troubled Debt Restructuring, Number of Contracts | Contract	5
Troubled Debt Restructuring, Pre-Modification Outstanding Recorded Investment	$ 2,180
Troubled Debt Restructuring, Post-Modification Outstanding Recorded Investment	$ 2,180
One To Four Family Residential [Member]
Financing Receivable, Modifications [Line Items]
Troubled Debt Restructuring, Number of Contracts | Contract	3
Troubled Debt Restructuring, Pre-Modification Outstanding Recorded Investment	$ 2,121
Troubled Debt Restructuring, Post-Modification Outstanding Recorded Investment	$ 2,121
Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
Troubled Debt Restructuring, Number of Contracts | Contract	2
Troubled Debt Restructuring, Pre-Modification Outstanding Recorded Investment	$ 59
Troubled Debt Restructuring, Post-Modification Outstanding Recorded Investment	$ 59

XML

LOANS - Summary of Pre-Modified Loans Modified as Troubled Debt Restructuring (Detail) - Real Estate [Member] $ in Thousands	Jun. 30, 2016 USD ($)
Financing Receivable, Modifications [Line Items]
Rate Reduction	$ 0
Interest Only Period	2,180
Rate Reduction and Interest Only Period	0
One To Four Family Residential [Member]
Financing Receivable, Modifications [Line Items]
Rate Reduction	0
Interest Only Period	2,121
Rate Reduction and Interest Only Period	0
Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
Rate Reduction	0
Interest Only Period	59
Rate Reduction and Interest Only Period	$ 0

XML

LOANS - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended
	Mar. 25, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Mar. 25, 2015
Loans serviced for others		$ 191,629,000		$ 170,427,000
Mortgage Loans on Real Estate, Face Amount of Mortgages					$ 20,000,000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages		8,500,000
Financing Receivables Purcahsed During the Period, Premium Percentage	1.00%
Financing Receivable, Allowance for Credit Losses, Write-downs		7,000	$ 0
Mortgage And Other Loans [Member]
Loans serviced for others		27,400,000		$ 21,800,000
One To Four Family [Member] | Real Estate [Member]
Financing Receivable, Allowance for Credit Losses, Write-downs		$ 21,000
Fixed Rate Residential Mortgage [Member]
Financing Receivables Purcahsed During the Period, Percentage	50.00%
Adjustable Rate Residential Mortgage [Member]
Financing Receivables Purcahsed During the Period, Percentage	50.00%

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DEPOSITS - Summary of Scheduled Maturities of Time Deposits (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
2017	$ 57,366
2018	21,701
2019	4,137
2020	1,694
2021	8,379
Total	$ 93,277

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DEPOSITS - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Interest-bearing Domestic Deposit, Brokered	$ 5.0	$ 5.0
Cash, FDIC Insured Amount	$ 24.4	$ 20.9

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FEDERAL HOME LOAN BANK ADVANCES - Summary of Maturities of Advances from the Federal Home Loan Bank ("FHLB") of Boston (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Maturities Federal Home Loan Bank Advances [Line Items]
2017	$ 2,500
2018	3,000
2019	0
2020	0
2021	0
Thereafter	9,000
Maturities of advances from FHLB, total	$ 14,500	$ 8,500

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FEDERAL HOME LOAN BANK ADVANCES - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Weighted-average interest rate	0.88%
Federal Home Loan Bank Collateral Debt Advances [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Borrowings from FHLB, description	Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties, certain unencumbered investment securities and other qualified assets.
Minimum [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rates	0.49%
Maximum [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rates	1.36%

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FAIR VALUE MEASUREMENTS - Summary of Assets Measured at Fair Value on a Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 17,040	$ 16,556
Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	17,040	16,556
Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Debt Securities Issued by U.S. Government Corporations and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	7,541	6,311
Debt Securities Issued by U.S. Government Corporations and Agencies [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Debt Securities Issued by U.S. Government Corporations and Agencies [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	7,541	6,311
Debt Securities Issued by U.S. Government Corporations and Agencies [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Debt Securities Issued by States of the United States and Political Subdivisions of the States [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	2,429	2,444
Debt Securities Issued by States of the United States and Political Subdivisions of the States [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Debt Securities Issued by States of the United States and Political Subdivisions of the States [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	2,429	2,444
Debt Securities Issued by States of the United States and Political Subdivisions of the States [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	7,070	7,801
Mortgage-Backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Mortgage-Backed Securities [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	7,070	7,801
Mortgage-Backed Securities [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 546	$ 546
Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	546	546
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	546	546
Impaired Loans [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Impaired Loans [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Impaired Loans [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 546	$ 546

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FAIR VALUE MEASUREMENTS - Schedule of Estimated Fair Values of Financial Instruments Held or Issued for Purposes Other Than Trading (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Cash and cash equivalents	$ 8,136	$ 10,670	$ 6,897	$ 18,295
Interest-bearing time deposits with other banks	1,087	1,087
Investments in available-for-sale securities (at fair value)	17,040	16,556
Held-to-maturity securities	110	120
Federal Home Loan Bank stock	1,152	971
Investment in The Co-operative Central Reserve Fund	384	384
Loans serviced for others	191,629	170,427
Accrued interest receivable	543	508
Financial liabilities:
Deposits	182,598	169,372
FHLB advances	14,500	8,500
Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Financial assets:
Cash and cash equivalents	8,136	10,670
Interest-bearing time deposits with other banks	0	0
Investments in available-for-sale securities (at fair value)	0	0
Held-to-maturity securities	0	0
Federal Home Loan Bank stock	1,152	971
Investment in The Co-operative Central Reserve Fund	384	384
Loans serviced for others	0	0
Accrued interest receivable	543	508
Financial liabilities:
Deposits	0	0
FHLB advances	0	0
Significant Other Observable Inputs Level 2 [Member]
Financial assets:
Cash and cash equivalents	0	0
Interest-bearing time deposits with other banks	1,087	1,086
Investments in available-for-sale securities (at fair value)	17,040	16,556
Held-to-maturity securities	140	155
Federal Home Loan Bank stock	0	0
Investment in The Co-operative Central Reserve Fund	0	0
Loans serviced for others	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	183,198	170,134
FHLB advances	14,512	8,458
Significant Unobservable Inputs Level 3 [Member]
Financial assets:
Cash and cash equivalents	0	0
Interest-bearing time deposits with other banks	0	0
Investments in available-for-sale securities (at fair value)	0	0
Held-to-maturity securities	0	0
Federal Home Loan Bank stock	0	0
Investment in The Co-operative Central Reserve Fund	0	0
Loans serviced for others	193,613	171,150
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
FHLB advances	0	0
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	8,136	10,670
Interest-bearing time deposits with other banks	1,087	1,087
Investments in available-for-sale securities (at fair value)	17,040	16,556
Held-to-maturity securities	110	120
Federal Home Loan Bank stock	1,152	971
Investment in The Co-operative Central Reserve Fund	384	384
Loans serviced for others	191,629	170,427
Accrued interest receivable	543	508
Financial liabilities:
Deposits	182,598	169,372
FHLB advances	14,500	8,500
Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	8,136	10,670
Interest-bearing time deposits with other banks	1,087	1,086
Investments in available-for-sale securities (at fair value)	17,040	16,556
Held-to-maturity securities	140	155
Federal Home Loan Bank stock	1,152	971
Investment in The Co-operative Central Reserve Fund	384	384
Loans serviced for others	193,613	171,150
Accrued interest receivable	543	508
Financial liabilities:
Deposits	183,198	170,134
FHLB advances	$ 14,512	$ 8,458

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REGULATORY CAPITAL - Additional Information (Detail)	Jun. 30, 2016	Dec. 31, 2015	Jan. 02, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital required to be well capitalized to risk-weighted assets	6.50%	6.50%
Tier 1 capital required to be well capitalized to risk-weighted assets	8.00%	8.00%
Capital required to be well capitalized to risk weighted assets	10.00%	10.00%
Tier 1 leverage capital required to be well capitalized to average assets	5.00%	5.00%
Financing receivable non-accrual status percentage			100.00%
Credit conversion factor for unused portion of commitments			0.00%
Risk weight for mortgage servicing and deferred tax assets			100.00%
Risk weight for equity exposures			100.00%
Common Equity Tier One Risk Based Capital To Risk Weighted Assets	14.10%	15.60%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
New Capital Regulations [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital required to be well capitalized to risk-weighted assets			6.50%
Tier 1 capital required to be well capitalized to risk-weighted assets			8.00%	6.00%
Capital required to be well capitalized to risk weighted assets			10.00%
Tier 1 leverage capital required to be well capitalized to average assets			5.00%
Tier 1 capital to risk-weighted assets, year one			0.625%
Tier 1 capital to risk-weighted assets, multiple period increase			0.625%
Tier 1 capital to risk-weighted assets, year four			2.50%
Financing receivable non-accrual status percentage			150.00%
Credit conversion factor for unused portion of commitments			20.00%
Risk weight for mortgage servicing and deferred tax assets			250.00%
Risk weight for equity exposures			600.00%
Common Equity Tier One Risk Based Capital To Risk Weighted Assets			4.50%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets			6.00%	4.00%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets			4.00%

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REGULATORY CAPITAL - Schedule of Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Regulatory Capital
Total Regulatory Capital	$ 23,560	$ 23,066
Key Regulatory Ratios
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual, Amount	$ 22,598	$ 22,171
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio	14.10%	15.60%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount	$ 7,233	$ 6,417
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio	4.50%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 10,447	$ 9,269
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	$ 22,598	$ 22,171
Tier 1 Capital (to Average Assets), Actual Amount	$ 22,598	$ 22,171
Total Capital (to Risk Weighted Assets), Actual Ratio	14.70%	16.20%
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio	14.10%	15.60%
Tier 1 Capital (to Average Assets), Actual Ratio	10.10%	10.90%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount	$ 12,858	$ 11,408
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount	9,644	8,556
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Amount	$ 8,959	$ 8,169
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio	6.00%	6.00%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 16,073	$ 14,260
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	12,858	11,408
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 11,199	$ 10,211
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%

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COMMON STOCK REPURCHASES - Additional Information (Detail) - $ / shares	1 Months Ended	6 Months Ended	12 Months Ended
	Nov. 24, 2015	Jun. 30, 2016	Dec. 31, 2015
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	89,903
Stock Repurchase Program Common Stock Repurchased Percentage	4.00%
Common Stock [Member]
Stock Repurchased and Retired During Period, Shares		35,000	23,100
Treasury Stock Acquired, Average Cost Per Share		$ 13.12	$ 12.89

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EQUITY INCENTIVE PLANS - Weighted Average Assumptions (Detail)	6 Months Ended
	Jun. 30, 2016 $ / shares
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected life (years)	6 years 4 months 24 days
Expected dividend yield	0.00%
Expected volatility	20.24%
Expected forfeiture rate	0.00%
Risk free rate	1.67%
Fair value per option	$ 3.17

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EQUITY INCENTIVE PLANS - Schedule of Equity Incentive Plan (Detail) - $ / shares	1 Months Ended	6 Months Ended
	Nov. 24, 2015	Jun. 30, 2016
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	169,500
2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	314,661
2015 Equity Incentive Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at beginning of period		0
Number of Shares, Granted		169,500
Number of Shares, Outstanding at end of period		169,500
Number of Shares, Exercisable at end of period		0
Number of Shares, Weighted average fair value of options granted during the period (in dollars per share)		$ 3.17
Number of Shares, Weighted average contractual life remaining		9 years 10 months 24 days
Number of Shares, Weighted average exercise price (in dollars per share)		$ 12.85

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EQUITY INCENTIVE PLANS - Non-vested Restricted Stock (Detail) - $ / shares	1 Months Ended	6 Months Ended
	Nov. 24, 2015	Jun. 30, 2016
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	70,950
Equity Incentive Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	314,661
Equity Incentive Plan 2015 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at beginning of period		0
Number of Shares, Granted		70,950
Number of Shares, Outstanding at end of period		70,950
Number of Shares, Weighted average grant date fair value (in dollars per share)		$ 12.85

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EQUITY INCENTIVE PLANS - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Nov. 24, 2015	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation			$ 64,000	$ 35,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			4 years 8 months 12 days
2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	314,661
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	70,950
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		18,953	18,953
Share-based Compensation		$ 15,000	$ 15,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		897,000	897,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense		$ 6,000	$ 6,000
Restricted Stock [Member] | 2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			70,950
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	169,500
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		55,258	55,258
Share-based Compensation		$ 10,000	$ 10,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		527,000	527,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense		$ 1,000	$ 1,000
Employee Stock Option [Member] | 2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			169,500
Five Year Period [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	47,600
Five Year Period [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	122,500
Four Year Period [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	23,350
Four Year Period [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	47,000