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			September 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  001-37506
MSB FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
MARYLAND							34-1981437
(State or other jurisdiction of							(I.R.S. Employer
incorporation or organization)							Identification Number)
1902 Long Hill Road, Millington, New Jersey						07946-0417
(Address of principal executive offices)						(Zip Code)
Registrant's telephone number, including area code		(908) 647-4000
Indicate by check markwhether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  [X]  No [  ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 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.
Large accelerated filer [  ]					Accelerated filer [  ]
Non-accelerated filer [  ]					Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes [  ] No  [X]
The number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: November 14, 2016:
$0.01 par value common stock 5,711,044 shares outstanding

MSB FINANCIAL CORP. AND SUBSIDIARIES

INDEX

		Page
		Number
PART I - FINANCIAL INFORMATION
Item 1:	Consolidated Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition
	at September 30, 2016 and December 31, 2015	2
	Consolidated Statements of Operations for the
	Three and Nine Months Ended September 30, 2016 and 2015	3
	Consolidated Statements of Comprehensive Income for the
	Three and Nine Months Ended September 30, 2016 and 2015	4
	Consolidated Statement of Changes in Stockholders' Equity
	at September 30, 2016	5
	Consolidated Statements of Cash Flows for the Nine Months
	Ended September 30, 2016 and 2015	6
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2:	Management's Discussion and Analysis of	29
	Financial Condition and Results of Operations
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4:	Controls and Procedures	36
PART II - OTHER INFORMATION
Item 1:	Legal Proceedings	36
Item 1A:	Risk Factors	36
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3:	Defaults Upon Senior Securities	37
Item 4:	Mine Safety Disclosures	37
Item 5:	Other Information	37
Item 6:	Exhibits	37
SIGNATURES		38
CERTIFICATIONS		39

ITEM 1 – CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MSB FINANCIAL CORP. AND SUBSIDARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	September 30,		December 31,
	2016		2015
(Dollars in thousands, except per share amounts)
Cash and due from banks	$	1,159	$	2,219
Interest-earning demand deposits with banks		30,488		10,084
Cash and Cash Equivalents		31,647		12,303
Securities held to maturity (fair value of $45,462 and $78,400, respectively)		44,676		78,995
Loans receivable, net of allowance for loan losses of $4,044 and $3,602, respectively		329,230		262,312
Premises and equipment		8,994		8,118
Federal Home Loan Bank of New York stock, at cost		1,433		1,826
Bank owned life insurance		13,675		7,468
Accrued interest receivable		1,254		1,352
Other assets		2,721		3,316
Total Assets	$	433,630	$	375,690
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$	33,653	$	28,173
Interest bearing		301,037		234,425
Total Deposits		334,690		262,598
Advances from Federal Home Loan Bank of New York		22,675		32,675
Advance payments by borrowers for taxes and insurance		820		743
Other liabilities		2,874		3,311
Total Liabilities		361,059		299,327
Stockholders' Equity
Preferred stock, par value $0.01; 1,000,000 shares authorized; no shares issued or outstanding		-		-
Common stock, par value $0.01; 49,000,000 shares authorized;        issued and outstanding 5,711,044 at September 30, 2016 and 5,953,423 at December 31, 2015		57		59
Paid-in capital		51,678		56,216
Retained earnings		22,892		22,209
Unallocated common stock held by ESOP (204,070 and 212,242 shares, respectively)		(1,957)		(2,042)
Accumulated other comprehensive loss		(99)		(79)
Total Stockholders' Equity		72,571		76,363
Total Liabilities and Stockholders' Equity	$	433,630	$	375,690

See notes to unaudited consolidated financial statements.

2

MSB FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands, except per share amounts)	2016		2015		2016		2015
Interest Income:
Loans receivable, including fees	$	3,177	$	2,630	$	9,097	$	7,716
Securities held to maturity		276		449		1,038		1,288
Other		57		37		126		79
Total Interest Income		3,510		3,116		10,261		9,083
Interest Expense
Deposits		383		329		1,036		1,044
Borrowings		183		203		562		590
Total Interest Expense		566		532		1,598		1,634
Net Interest Income		2,944		2,584		8,663		7,449
Provision for Loan Losses		180		40		500		23
Net Interest Income after Provision for Loan Losses		2,764		2,544		8,163		7,426
Non-Interest Income
Fees and service charges		78		86		248		260
Income from bank owned life insurance		94		56		207		165
Other		11		30		381		79
Total Non-Interest Income		183		172		836		504
Non-Interest Expenses
Salaries and employee benefits		1,419		1,193		4,306		3,768
Directors compensation		109		110		336		334
Occupancy and equipment		382		316		1,064		959
Service bureau fees		134		175		639		468
Advertising		7		13		28		110
FDIC assessment		74		71		211		213
Professional services		248		182		860		550
Other		127		265		529		898
Total Non-Interest Expenses		2,500		2,325		7,973		7,300
Income before Income Taxes		447		391		1,026		630
Income Tax Expense		146		133		343		189
Net Income	$	301	$	258	$	683	$	441
Earnings per share:
Basic	$	0.05	$	0.05	$	0.12	$	0.08
Diluted	$	0.05	$	0.04	$	0.12	$	0.08
See notes to unaudited consolidated financial statements.

3

MSB FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands, except per share amounts)	2016			2015			2016			2015
Net Income	$	301		$	258		$	683		$	441
Other comprehensive income (loss), net of tax
Defined benefit pension plans:
Reclassification adjustment for prior service cost included    in net income, net of tax of $1, $3, $5 and $9, respectively		(3	)		(4	)		(8	)		(12	)
Actuarial loss arising during the period, net of tax of $-,    $(3), $- and $(9), respectively		-			4			-			12
Reclassification adjustment for net actuarial loss (gain)    included in net income, net of tax of $12, $(4), $8, and    $(12), respectively		(16	)		5			(12	)		16
Total other comprehensive income (loss)		(19	)		5			(20	)		16
Comprehensive income	$	282		$	263		$	663		$	457
See notes to unaudited consolidated financial statements.

4

MSB Financial Corp and Subsidiaries

Consolidated Statement of Changes in Stockholders' Equity

 (Unaudited)

													Unallocated
													Common			Accumulated
	Shares of												Stock			Other			Total
	Common			Common				Paid-In			Retained		Held by			Comprehensive			Stockholders'
	Stock Issued			Stock				Capital			Earnings		ESOP			Loss			Equity
(Dollars in thousands)				(Dollars in thousands)
Nine Months Ended September 30, 2016
Balance – December 31, 2015		5,953,423			$	59		$	56,216		$	22,209	$	(2,042	)	$	(79	)	$	76,363
Net income												683								683
Other comprehensive income, net of tax																	(20	)		(20	)
Allocation of ESOP stock									25					85						110
Repurchased Stock		(242,379	)			(2	)		(3,213	)										(3,215	)
Purchase of common stock for equity plan									(1,467	)										(1,467	)
Stock-Based Compensation									117											117
Balance - September 30, 2016		5,711,044			$	57		$	51,678		$	22,892	$	(1,957	)	$	(99	)	$	72,571

See notes to unaudited consolidated financial statements.

5

MSB Financial Corp. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
(In thousands)	2016			2015
Cash Flows from Operating Activities:
Net Income	$	683		$	441
Adjustments to reconcile net income to net
cash provided by operating activities:
Net accretion of securities premiums and discounts and deferred loan fees and costs		(72	)		(24	)
Depreciation and amortization of premises and equipment		325			289
Stock-based compensation and allocation of ESOP stock		227			124
Provision for loan losses		500			23
Loss on sale of other real estate owned		-			131
Income from bank owned life insurance		(207	)		(165	)
Decrease in accrued interest receivable		98			10
Decrease in other assets		608			2
(Decrease) increase in other liabilities		(470	)		402
Net Cash Provided by Operating Activities		1,692			1,234
Cash Flows from Investing Activities:
Activity in held to maturity securities:
Purchases		-			(4,935	)
Maturities, calls and principal repayments		34,242			3,266
Net increase in loans receivable		(42,312	)		(13,875	)
Purchased loans		(24,957	)		(7,100	)
Purchase of premises and equipment		(1,201	)		(153	)
Redemption of Federal Home Loan Bank of NY stock		393			(116	)
Purchase of bank owned life insurance		(6,000	)
Capitalized improvements of other real estate owned		-			(89	)
Proceeds from sale of other real estate owned		-			947
Net Cash Used in Investing Activities		(39,835	)		(22,055	)
Cash Flows from Financing Activities:
Net increase (decrease) in deposits		72,092			(7,956	)
Net Proceeds from stock offering		-			34,799
Cash paid for stock options					(56	)
Increase (decrease) in advances from FHLB of NY		(10,000	)		2,675
Increase in advance payments by borrowers for taxes and insurance		77			130
Repurchase of common stock		(3,215	)		-
Purchase of common stock for equity plan		(1,467	)		-
Net Cash Provided by Financing Activities		57,487			29,592
Net Increase in Cash and Cash Equivalents		19,344			8,771
Cash and Cash Equivalents – Beginning		12,303			7,519
Cash and Cash Equivalents – Ending	$	31,647		$	16,290
Supplementary Cash Flows Information
Interest paid	$	1,604		$	1,631
Income taxes paid		68			251

See notes to unaudited consolidated financial statements.

6

MSB FINANCIAL CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1 – Organization and Business

MSB Financial Corp. (the "Company") is a Maryland-chartered corporation organized in 2014 to be the successor to MSB Financial Corp., a federal corporation ("Old MSB") upon completion of the second-step conversion of Millington Bank (the "Bank") from the two-tier mutual holding company structure to the stock holding company structure. MSB Financial, MHC (the "MHC") was the former mutual holding company for Old MSB prior to completion of the second-step conversion.  In conjunction with the second-step conversion, each of the MHC and Old MSB ceased to exist.  The second-step conversion was completed on July 16, 2015 at which time the Company sold 3,766,592 shares of its common stock (including 150,663 shares purchased by the Bank's employee stock ownership plan) at $10.00 per share for gross proceeds of approximately $37.7 million. Expenses related to the stock offering totaled $1.5 million and were netted against proceeds. As part of the second-step conversion, each of the outstanding shares of common stock of Old MSB held by persons other than the MHC were converted into 1.1397 shares of Company common stock with cash paid in lieu of fractional shares.  As a result, a total of 2,187,242 shares were issued in the second-step conversion.  As a result of the second-step conversion, all share and per share information has subsequently been revised to reflect the 1.1397 exchange ratio unless otherwise noted.

The Company's principal business is the ownership and operation of the Bank. The Bank is a New Jersey-chartered stock savings bank and its deposits are insured by the Federal Deposit Insurance Corporation ("FDIC"). The primary business of the Bank is attracting retail deposits from the general public and using those deposits together with funds generated from operations, principal repayments on securities and loans and borrowed funds, for its lending and investing activities. The Bank's loan portfolio primarily consists of one-to-four family and home equity residential loans, commercial loans, and construction loans. It also invests in U.S. government obligations and mortgage-backed securities. The Bank is regulated by the New Jersey Department of Banking and Insurance and the FDIC. The Board of Governors of the Federal Reserve System (the "Federal Reserve") regulates the Company as a bank holding company.

The primary business of Millington Savings Service Corp (the "Service Corp") was the ownership and operation of a single commercial rental property. This property was sold during the year ended June 30, 2007. Currently the Service Corp is inactive.

Subsequent Event

The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2016, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

Note 2 – Basis of Consolidated Financial Statement Presentation

              The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank's wholly owned subsidiary the Service Corp. All significant intercompany accounts and transactions have been eliminated in consolidation.  These consolidated

7

financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X, and therefore, do not include all information or notes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America ("GAAP").

In the opinion of management, all adjustments, consisting of only normal recurring adjustments or accruals, which are necessary for a fair presentation of the consolidated financial statements have been made at September 30, 2016 and for the nine months ended September 30, 2016 and 2015.  The results of operations for the nine months ended September 30, 2016 are not necessarily indicative of the results which may be expected for an entire fiscal year or other interim periods.

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of financial condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses is adequate. While management uses all available information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the Bank's market area.  In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank's allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examinations.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09, as modified by ASU 2015-14, ASU 2016-8, ASU 2016-10, and ASU 2016-12, is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP.  The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption  (which includes additional footnote disclosures).  We are currently evaluating the impact of the pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall. The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods 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) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit

8

risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all leases. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily due to the recognition of lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. The standard is required to be adopted using the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the impact of the pending adoption of ASU 2016-02 on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, Compensation – Stock Compensation (Topic 718). This ASU changes several aspects of the accounting for share-based payment award transactions, including: (1) accounting and cash flow classification for excess tax benefits and deficiencies, (2) forfeitures, and (3) tax withholding requirements and cash flow classification. The standard is effective for public companies for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted for the interim or annual period provided that the entire standard is adopted. If an entity early adopts the standard in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of the pending adoption of ASU 2016-09 on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15: Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in this Update address the following eight specific cash flow issues with the objective of reducing the existing diversity in practice: (1) debt prepayments or debt extinguishment cost (cash outflow-financing), (2) settlement of debt instruments with coupon interest rates insignificant to the effective interest rate, Interest payment (cash outflow-operating), principal payment (cash outflow-financing), (3) contingent consideration payments made soon after business combination (cash outflow-investing), (4) proceeds from settlement of insurance claims (classification on basis of the nature of each loss), (5) proceeds from corporate/bank-owned life insurance, proceeds (cash inflow-investing), payments (cash outflow-investing/operating), (6) distribution received from equity method investees, cumulative earnings approach (cash inflow-investing), nature of distribution approach (cash inflow-operating/investing), (7) beneficial interest in securitization transactions, assets (noncash transaction), cash receipts from trade receivable (cash inflow-investing), (8) separately identifiable cash flows (classified based on source-financing/investing/operating).  The amendments in this Update are effective for public business entities for the fiscal years beginning after December 15, 2017 and interim periods within those fiscal years.  Early adoption is permitted, including adoption in an interim period.  If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.  An entity that elects early adoption must adopt all of the amendments in the same period.   We are currently evaluating the impact of the pending adoption of ASU 2016-15 on our consolidated financial statements.

In September 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model,

9

entities will estimate credit losses over the entire contractual term of the instrument. The standard is effective for public companies in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted the interim or annual period provided that the entire standard is adopted. We are currently evaluating the impact of the pending adoption of ASU 2016-13 on our consolidated financial statements.

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands, Except Per Share Data)	2016		2015		2016		2015
Numerator:
Net income	$	301	$	258	$	683	$	441
Denominator:
Weighted average common shares		5,588		5,721		5,692		5,667
Dilutive potential common shares		82		44		76		26
Weighted average fully diluted shares		5,670		5,765		5,768		5,693
Earnings per share:
Basic	$	0.05	$	0.05	$	0.12	$	0.08
Dilutive	$	0.05	$	0.04	$	0.12	$	0.08
Outstanding common stock equivalents having no dilutive effect		-		-		-		-

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Note 4 - Securities Held to Maturity

The amortized cost of securities held to maturity and their estimated fair values as of September 30, 2016 and December 31, 2015 are summarized as follows:

	Amortized Cost		GrossUnrealized Gains		GrossUnrealized Losses		Estimated Fair Value
September 30, 2016	(In Thousands)
U.S. Government agencies:
Due after one year through five years	$	6,500	$	7	$	1	$	6,506
		6,500		7		1		6,506
Mortgage-backed securities		25,129		1,041		5		26,165
Corporate bonds:
Due within one year		2,006		5		1		2,010
Due after one year through five years		2,037		16		13		2,040
Due after five through ten years		1,000		-		40		960
Due after ten years		4,000		-		254		3,746
		9,043		21		308		8,756
State and political subdivisions:
Due within one year		95		1		1		95
Due after one through five years		592		1		1		592
Due after five through ten years		712		13		-		725
		1,399		15		2		1,412
Certificates of deposit:
Due after one year through five years		2,605		18		-		2,623
		2,605		18		-		2,623
	$	44,676	$	1,102	$	316	$	45,462

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Note 4 - Securities Held to Maturity - Continued

	Amortized Cost		GrossUnrealized Gains		GrossUnrealized Losses		Estimated Fair Value
December 31, 2015	(In Thousands)
U.S Government agencies:
Due after one year through five years	$	18,000	$	4	$	142	$	17,862
Due after five through ten years		8,500		2		80		8,422
Due thereafter		11,000		-		285		10,715
		37,500		6		507		36,999
Mortgage-backed securities		26,463		405		230		26,638
Corporate bonds:
Due within one year		503		2		-		505
Due after one through five years		4,069		21		4		4,086
Due after five through ten years		1,000		-		10		990
Due thereafter		4,000		-		289		3,711
		9,572		23		303		9,292
State and political subdivisions:
Due within one year		96		-		-		96
Due after one through five years		596		-		2		594
Due after five through ten years		713		5		-		718
		1,405		5		2		1,408
Certificates of deposit:
Due within one year		1,450		-		-		1,450
Due after one through five years		2,605		11		3		2,613
		4,055		11		3		4,063
	$	78,995	$	450	$	1,045	$	78,400

All mortgage-backed securities owned at September 30, 2016 and December 31, 2015 have been issued by FNMA, FHLMC or GNMA and are secured by one-to-four family residential real estate. The amortized cost and estimated fair value of securities held to maturity at September 30, 2016 and December 31, 2015, as shown above, are reported by contractual maturity.  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of securities held to maturity during the nine months ended September 30, 2016 or 2015.  At September 30, 2016 and December 31, 2015, securities held to maturity with a fair value of approximately $1,000,000 million and $997,800, respectively, were pledged to secure public funds on deposit.

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Note 4 - Securities Held to Maturity - Continued

The following tables set forth the gross unrealized losses and fair value of securities in an unrealized loss position as of September 30, 2016 and December 31, 2015, and the length of time that such securities have been in an unrealized loss position:

	Less than 12 Months				More than 12 Months				Total
	Estimated FairValue		GrossUnrealizedLosses		Estimated FairValue		GrossUnrealizedLosses		Estimated FairValue		GrossUnrealizedLosses
	(In thousands)
September 30, 2016
U.S. Governmentagencies	$	1,000	$	1	$	-	$	-	$	1,000	$	1
Mortgage-backed    securities		448		5		-		-		448		5
Corporate bonds		1,990		14		4,706		294		6,696		308
State and political subdivisions		247		1		101		1		348		2
	$	3,685	$	21	$	4,807	$	295	$	8,492	$	316

	Less than 12 Months				More than 12 Months				Total
	Estimated FairValue		GrossUnrealizedLosses		Estimated FairValue		GrossUnrealizedLosses		Estimated FairValue		GrossUnrealizedLosses
	(In thousands)
December 31, 2015
U.S. Governmentagencies	$	9,410	$	89	$	17,083	$	418	$	26,493	$	507
Mortgage-backed    securities		12,312		173		2,602		57		14,914		230
Corporate bonds		5,208		300		504		3		5,712		303
State and political subdivisions		515		2		-		-		515		2
Certificates of deposit		932		3		-		-		932		3
	$	28,377	$	567	$	20,189	$	478	$	48,566	$	1,045

At September 30, 2016, management concluded that the unrealized losses summarized above (which related to one U.S. Government agency bond, one mortgage-backed security, six corporate bonds and three state and political subdivision securities, compared to nineteen U.S. Government agency bonds, fifteen mortgage-backed securities, five corporate bonds, four state and political subdivision bonds, and four certificates of deposit as of December 31, 2015) are temporary in nature since they are not related to the underlying credit quality of the issuer.  The Company does not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell these securities prior to the anticipated recovery of the remaining amortized cost.  Management believes that the losses above are primarily related to the change in market interest rates. Accordingly, the Company has not recognized any other-than-temporary impairment loss on these securities.

13

Note 5 - Loans Receivable and Allowance for Credit Losses

The composition of loans receivable at September 30, 2016 and December 31, 2015 was as follows:

	September 30,2016			December 31, 2015
	(In thousands)
Residential mortgage:
One-to-four family	$	157,945		$	154,624
Home equity		34,246			35,002
Total residential mortgage loans		192,191			189,626
Commercial and multi-family real estate		103,083			59,642
Construction		16,160			10,895
Commercial and industrial		29,342			10,275
Total commercial loans		148,585			80,812
Total consumer loans		458			493
Loans receivable		341,234			270,931
Loans in process		(7,228	)		(4,600	)
Deferred loan fees		(732	)		(417	)
Allowance for loan losses		(4,044	)		(3,602	)
		(12,004	)		(8,619	)
Loans receivable, net	$	329,230		$	262,312

Allowance for Loan Losses

The allowance calculation methodology includes segregation of the total loan portfolio into segments. The Company's loans receivable portfolio is comprised of the following segments: residential mortgage, commercial real estate, construction, commercial and industrial and consumer.  Some segments of the Company's loan receivable portfolio are further disaggregated into classes which allow management to more accurately monitor risk and performance.

The residential mortgage loan segment is disaggregated into two classes: one-to-four family loans, which are primarily first liens, and home equity loans, which consist of first and second liens.  The commercial real estate loan segment includes owner and non-owner occupied loans which have medium risk based on historical experience with these types of loans.  The construction loan segment is further disaggregated into two classes: one-to-four family owner-occupied, which includes land loans, whereby the owner is known and there is less risk, and other, whereby the property is generally under development and tends to have more risk than the one-to-four family owner-occupied loans.  The commercial and industrial loan segment consists of loans made for the purpose of financing the activities of commercial customers. The majority of commercial and industrial loans are secured by real estate and thus carry a lower risk than traditional commercial and industrial loans.  The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts.

14

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these classes of loans, adjusted for qualitative factors.  These qualitative risk factors include:

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

Each factor is assigned a value to reflect improving, stable or declining conditions based on management's best judgment using relevant information available at the time of the evaluation.

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

Federal regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management's comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

15

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following tables provide an analysis of the allowance for loan losses and the loan receivable balances, by portfolio segment segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2016 and 2015:

(in thousands)	Residential  Mortgage		Commercial and Multi-Family Real Estate		Construction		Commercial and Industrial		Consumer		Unallocated			Total
Three Months Ended September  30, 2016
Allowance for loan losses:
Balance, beginning	$	1,842	$	1,322	$	163	$	314	$	15	$	213	$	3,869
Provisions (credits)		(4)		61		14		222		1		(114)		180
Loans charged-off		—		—		—		—		(8)		—		(8)
Recoveries		3		—		—		—		—		—		3
Balance, ending	$	1,841	$	1,383	$	177	$	536	$	8	$	99	$	4,044
Nine  Months Ended September 30, 2016
Allowance for loan losses:
Balance, beginning	$	1,927	$	1,015	$	143	$	235	$	9	$	273	$	3,602
Provisions (credits)		(38)		368		34		301		9		(174)		500
Loans charged-off		(64)		—		—		—		(11)		—		(75)
Recoveries		16		—		—		—		1		—		17
Balance, ending	$	1,841	$	1,383	$	177	$	536	$	8	$	99	$	4,044
Period-end allowance allocated to:
Loans  individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans  collectively evaluated for impairment		1,841		1,383		177		536		8		99		4,044
Ending Balance	$	1,841	$	1,383	$	177	$	536	$	8	$	99	$	4,044
Period-end loan balances evaluated for:
Loans  individually evaluated for impairment	$	14,705	$	1,232	$	—	$	475	$	—	$	—	$	16,412
Loans  collectively evaluated for impairment		177,150		101,572		8,860		28,822		458		—		316,862
Ending Balance	$	191,855	$	102,804	$	8,860	$	29,297	$	458	$	—	$	333,274

16

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

(in thousands)	Residential  Mortgage		Commercial and Multi-Family Real Estate			Construction			Commercial and Industrial		Consumer		Unallocated			Total
Three Months Ended September 30, 2015
Allowance for loan losses:
Balance, beginning	$	2,005	$	1,007		$	197		$	3688	$	5	$	1	$	3,583
Provisions (credits)		48		4			23			(45)		6		4		40
Loans charged-off		(46)		—			—			—		—		—		(46)
Recoveries		4		—	—		—	—		—		—		—		4
Balance, ending	$	2,011	$	1,011		$	220		$	323	$	11	$	5	$	3,581
Nine Months Ended September 30, 2015
Allowance for loan losses:
Balance, beginning	$	2,109	$	885		$	317		$	290	$	6	$	27	$	3,634
Provisions (credits)		(38)		133			(88)			33		5		(22)		23
Loans charged-off		(68)		(7)			(21)			—		—		—		(96)
Recoveries		8		—			12			—		—		—		20
Balance, ending	$	2,011	$	1,011		$	220		$	323	$	11	$	5	$	3,581
Period-end allowance allocated to:
Loans  individually evaluated for impairment	$	1	$	—		$	—		$	—	$	6	$	—	$	7
Loans  collectively evaluated for impairment		2,010		1,011			220			323		5		5		3,574
Ending Balance	$	2,011	$	1,011		$	220		$	323	$	11	$	5	$	3,581
Period-end loan balances evaluated for:
Loans  individually evaluated for impairment	$	15,205	$	1,554		$	253		$	716	$	6	$	—	$	17,734
Loans  collectively evaluated for impairment		169,707		49,361			7,774			10,742		505		—		238,089
Ending Balance	$	184,912	$	50,915		$	8,027		$	11,458	$	511	$	—	$	255,823

Nonaccrual and Past Due Loans

For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or when management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. Certain loans may remain on accrual status if they are in the process of collection and are either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management's judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt.  The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments.

17

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table represents the classes of the loans receivable portfolio summarized by aging categories of performing loans and nonaccrual loans as of September 30, 2016 and December 31, 2015:

As of  September  30, 2016	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans(1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	1,244	$	2,609	$	232	$	4,085	$	148,987	$	4,551	$	157,623
Home equity		655		29		50		734		33,234		264		34,232
Commercial and multi-family real estate		399		—		—		399		101,565		840		102,804
Construction
One-to-four family        owner-occupied		280		—		—		280		5,361		—		5,641
Other		—		—		—		—		3,219		—		3,219
Commercial and industrial		174		—		—		174		28,769		354		29,297
Consumer		3		—		—		3		455		—		458
Total	$	2,755	$	2,638	$	282	$	5,675	$	321,590	$	6,009	$	333,274

(1) Nonaccrual loans at September 30, 2016, included $4,897,000 that were 90 days or more delinquent, $903,000 that were 60-89 days delinquent, none that were 30-59 days delinquent, and $209,000 that were current or less than 30 days delinquent.

As of  December 31, 2015	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans (1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	4,187	$	770	$	235	$	5,192	$	145,479	$	3,744	$	154,415
Home equity		50		—		50		100		34,099		803		35,002
Commercial and multi-family real estate		—		—		—		—		58,661		827		59,488
Construction
One-to-four family        owner-occupied		—		—		—		—		2,663		—		2,663
Other		—		—		—		—		3,581		—		3,581
Commercial and industrial		—		—		—		—		9,730		542		10,272
Consumer		5		2		—		7		486		—		493
Total	$	4,242	$	772	$	285	$	5,299	$	254,699	$	5,916	$	265,914

(1) Nonaccrual loans at December 31, 2015, included $2,695,000 that were 90 days or more delinquent, $917,000 that were 60-89 days delinquent, $685,000 that were 30-59 days delinquent, and $1,618,000 that were current or less than 30 days delinquent.

18

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

Impaired Loans

Management evaluates individual loans in all of the loan segments (including loans in the residential mortgage and consumer segments) for possible impairment if the loan is either on nonaccrual status or is risk rated Substandard or worse or has been modified in a troubled debt restructuring.  A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed.

Once the determination has been made that a loan is impaired, impairment is measured by comparing the recorded investment in the loan to one of the following methods: (a) the present value of expected cash flows (discounted at the loan's effective interest rate), (b) the loan's observable market price or (c) the fair value of collateral adjusted for expected selling costs.  The method is selected on a loan-by-loan basis with management primarily utilizing the fair value of collateral method.

When a real estate-secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property.

The estimated fair values of non-real estate collateral, such as accounts receivable, inventory and equipment, are determined based on the borrower's financial statements, inventory reports, accounts receivable aging schedules or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets.

If the measurement of the impaired loan is less than the recorded investment in the loan, an impairment is recognized by establishing an impairment reserve for the expected loss and a charge-off against the allowance for loan losses, if applicable.

The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis.  The Company's policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

19

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following tables provide an analysis of the impaired loans at September 30, 2016 and December 31, 2015 and the average balances of such loans for the nine months and year, respectively, then ended:

September 30, 2016(In thousands)	RecordedInvestment		Loans withNo RelatedReserve		Loans withRelatedReserve		RelatedReserve		ContractualPrincipalBalance		AverageRecorded Investment
Residential mortgage
One-to-four family	$	13,207	$	13,207	$	-	$	-	$	13,560	$	12,867
Home equity		1,498		1,498		-		-		1,588		2,148
Commercial and multi-family real estate		1,232		1,232		-		-		1,979		1,215
Construction		-		-		-		-		-		-
Commercial and industrial		475		475		-		-		920		557
Consumer		-		-		-		-		-		1
Total	$	16,412	$	16,412	$	-	$	-	$	18,047	$	16,788

December 31, 2015(In thousands)	RecordedInvestment		Loans withNo RelatedReserve		Loans withRelatedReserve		RelatedReserve		ContractualPrincipalBalance		AverageRecorded Investment
Residential mortgage
One-to-four family	$	12,991	$	12,895	$	96	$	3	$	13,703	$	14,109
Home equity		2,261		2,261		-		-		2,353		1,360
Commercial and multi-family real estate		1,226		1,226		-		-		1,780		1,671
Construction
One-to-four family owner-         occupied		-		-		-		-		-		-
Other		-		-		-		-		-		376
Commercial and industrial		655		655		-		-		1,251		708
Consumer		-		-		-		-		-		1
Total	$	17,133	$	17,037	$	96	$	3	$	19,087	$	18,225

As of September 30, 2016 and December 31, 2015, impaired loans listed above include $11.1 million and $15.1 million, respectively, of loans previously modified in troubled debt restructurings ("TDRs") and as such are considered impaired under GAAP.  As of September 30, 2016 and December 31, 2015, $9.3 million and $11.0 million, respectively, of these loans have been performing in accordance with their modified terms for an extended period of time and as such were removed from non-accrual status and considered performing.

20

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

Interest income of $45,000 and $188,000 was recognized on impaired loans during the three months ended September 30, 2016 and 2015. The average balance of impaired loans for the three months ended September 30, 2016 and September 30, 2015 were $16.7 million and $18.2 million, respectively. During the nine months ended September 30, 2016 and 2015, interest income of $363,000 and $573,000, respectively, was recognized on impaired loans. The average balance of impaired loans for the nine months ended September 30, 2015 was $18.5 million.

Credit Quality Indicators

Management uses an eight point internal risk rating system to monitor the credit quality of the loans in the Company's commercial real estate, construction and commercial and industrial loan segments.  The borrower's overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually or when credit deficiencies, such as delinquent loan payments, arise. The criticized rating categories utilized by management generally follow bank regulatory definitions. The first six risk rating categories are considered not criticized, and are aggregated as "Pass" rated.  The "Special Mention" category includes assets that are currently protected, but are potentially weak, resulting in increased credit risk and deserving management's close attention.  If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects.  Loans classified "Substandard" have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected.  They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any.  Loans classified "Doubtful" have all the weaknesses inherent in loans classified "Substandard" with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable.  Loans classified as a "Loss" are considered uncollectible and subsequently charged off.

21

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table presents the classes of the loans receivable portfolio summarized by the aggregate "Pass" and the criticized categories of "Special Mention", "Substandard", "Doubtful" and "Loss" within the internal risk rating system as of September 30, 2016 and December 31, 2015:

As of September 30, 2016	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	101,191	$	399	$	1,214	$	—	$	—	$	102,804
Construction
One-to-four family owner-occupied		5,641		—		—		—		—		5,641
Other		3,219		—		—		—		—		3,219
Commercial and industrial		28,671		88		538		—		—		29,297
Total	$	138,722	$	487	$	1,752	$	—	$	—	$	140,961

As of December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	57,863	$	425	$	1,200	$	—	$	—	$	59,488
Construction
One-to-four family owner-occupied		2,663		—		—		—		—		2,663
Other		3,581		—		—		—		—		3,581
Commercial and industrial		9,480		94		698		—		—		10,272
Total	$	73,587	$	519	$	1,898	$	—	$	—	$	76,004

Management monitors the performance and credit quality of the residential mortgage and consumer portfolios by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status. 

	Residential mortgage				Consumer				Total Residential and Consumer
	Sep. 30, 2016		Dec. 31, 2015		Sep. 30, 2016		Dec. 31, 2015		Sep. 30,  2016		Dec. 31, 2015
	(In thousands)
Nonperforming	$	5,097	$	4,832	$	—	$	—	$	5,097	$	4,832
Performing		186,758		184,585		458		493		187,216		185,078
Total	$	191,855	$	189,417	$	458	$	493	$	192,313	$	189,910

22

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

Troubled Debt Restructurings

Loans the terms of which are modified are classified as a TDR if, in connection with the modification, the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR generally involve a reduction in interest rate below market rates given the associated credit risk, or an extension of a loan's stated maturity date or capitalization of interest and/or escrow. Nonaccrual TDRs are restored to accrual status if principal and interest payments, under the modified terms, are current for twelve consecutive months after modification.  Loans classified as TDRs are designated as impaired until they are ultimately repaid in full or foreclosed and sold.  The nature and extent of impairment of TDRs, including those which experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses.

The recorded investment balance of TDRs totaled $11.1 million at September 30, 2016 compared with $15.1 million at December 31, 2015.  The majority of the Company's TDRs are on accrual status. Accruing TDRs totaled $9.3 million at September 30, 2016 versus $11.0 million at December 31, 2015.  The total of TDRs on non-accrual status was $1.8 million at September 30, 2016 and $4.1 million at December 31, 2015.

The Company did not modify any loans as a TDR during the three months ended September 30, 2016 and 2015. For the nine months ended September 30, 2016, the Company did not modify any loans as a TDR. For the nine months ended September 30, 2015, the Company modified one home equity loan with a pre-modification and post-modification balance of $167,000. An interest only period was initiated until October 2016 after which the loan is on a fifteen-year amortization schedule. In addition, the Company modified a single one-to-four family mortgage loan with a pre-modification and post-modification balance of $237,000. A twelve month period with a lower interest rate and payment was granted after which the loan returns to contractual terms.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.  There were no loans modified in TDRs during the previous 12 months and for which there was a subsequent payment default during the three and nine months ended September 30, 2016 and 2015.

There was no Other Real Estate Owned ("OREO") at September 30, 2016 and December 31, 2015. We may obtain physical possession of residential real estate collateralizing consumer mortgage loans via foreclosure or in-substance repossession. At September 30, 2016 and December 31, 2015, we had consumer loans with a carrying value of $2.9 million and $1.8 million, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

23

Note 6 - Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and certain liabilities and to determine fair value disclosures.

FASB ASC Topic 820, Fair Market Value Disclosures ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

ASC 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

· Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

· Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

· Level 3 Inputs – Unobservable inputs for determining the fair values or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

24

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.  An asset's or liability's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Assets Measured at Fair Value on a Recurring Basis

The Bank did not have any financial assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015.

Assets Measured at Fair Value on a Non-Recurring Basis

Certain financial and non-financial assets are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

The following table summarizes those assets measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015:

September 30, 2016

Level 1 Inputs

Level 2 Inputs

Level 3 Inputs

Total FairValue

(In thousands)

Impaired loans

$

—

$

—

$

—

$

—

	December 31, 2015
	Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total FairValue
	(In thousands)
Impaired loans		$	—		$	—		$	525		$	525

For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2015, the significant unobservable inputs used in fair value measurements were as follows:

		As of December 31, 2015
		Fair Value Estimate	Valuation Techniques	Unobservable Input		Range (Weighted Average)
		(Dollars in thousands)
Impaired loans	$	525	Appraisal of		Appraisal
			collateral		adjustments	0% (0%)
					Liquidation
					expense	10.0% to 26.1% (13.0%)

25

An impaired loan is measured for impairment at the time the loan is identified as impaired.  Loans are considered impaired when based on current information and events it is probable that payments of interest and principal will not be made in accordance with the contractual terms of the loan agreement.  The Company's impaired loans are generally collateral dependent and, as such, are carried at the lower of cost or estimated fair value less estimated selling costs.  Fair values are estimated through current appraisals and adjusted as necessary to reflect current market conditions and as such are classified as Level 3.

Disclosure about Fair Value of Financial Instruments

Fair value of a financial instrument is defined above. Significant estimates were used for the purposes of disclosing fair values. Estimated fair values have been determined using the best available data and estimation methodology suitable for each category of financial instruments. However, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company's assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other companies may not be meaningful.

The following presents the carrying amount and the fair value as of September 30, 2016 and December 31, 2015, and placement in the fair value hierarchy of the Company's financial instruments which are carried on the consolidated statement of financial condition at cost and are not recorded at fair value on a recurring basis.  This table excludes financial instruments for which carrying amount approximates fair value, which includes cash and cash equivalents, Federal Home Loan Bank stock, accrued interest receivable, interest and non-interest bearing demand, savings and club deposits, and accrued interest payable.

		Carrying		Fair		Level 1		Level 2			Level 3
As of  September 30, 2016		Amount		Value		Inputs		Inputs			Inputs
					(In thousands)
Financial assets:
Securities held to maturity	$		44,676	$	45,462	$	-		$	45,462		$	-
Loans receivable (1)			329,230		336,839		-			-			336,839
Financial liabilities:
Certificate of deposits			93,387		94,784		-			94,784			-
Advances from Federal Home Loan Bank of New York			22,675		23,284		-			23,284			-
As of December 31, 2015
Financial assets:
Securities held to maturity	$		78,995	$	78,400	$	-		$	78,400		$	-
Loans receivable (1)			262,312		264,001		-			-			264,001
Financial liabilities:
Certificate of deposits			85,408		86,241		-			86,241			-
Advances from Federal Home Loan Bank of New York			32,675		33,428		-			33,428			-
(1) Includes impaired loans measured at fair value on a non-recurring basis as discussed above.

26

Methods and assumptions used to estimate fair values of financial instruments previously disclosed are as follows:

Cash and Cash Equivalents

For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value.

Securities Held to Maturity

The fair value for securities held to maturity is based on quoted market prices, where available. If quoted market prices are not available, fair value is estimated using quoted market prices for similar securities.

Loans Receivable

The fair value of loans is based upon a multitude of sources, including assumed current market rates by category and the Company's current offering rates.  Both fixed and variable rate loan fair values are derived using a discounted cash flow methodology.  For variable rate loans, repricing terms, including next repricing date, repricing frequency and repricing rate are factored into the discounted cash flow formula.

Federal Home Loan Bank of New York Stock

The carrying amount of Federal Home Loan Bank of New York stock approximates fair value since the Company is generally able to redeem this stock at par.

Accrued Interest Receivable and Payable

The carrying amounts of accrued interest receivable and payable approximate fair value due to the short term nature of these instruments.

Deposits

Fair values for demand and savings and club accounts are, by definition, equal to the amount payable on demand at the reporting date. Fair values of fixed-maturity certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar instruments with similar maturities.

Advances from Federal Home Loan Bank of New York

Fair values of advances are estimated using discounted cash flow analyses, based on rates currently available to the Company for advances from the Federal Home Loan Bank of New York with similar terms and remaining maturities.

Off-Balance Sheet Financial Instruments

Fair values of commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account market interest rates, the remaining terms, and the present credit worthiness of the counterparties.  As of September 30, 2016 and December 31, 2015, the fair value of the commitments to extend credit was not considered to be material.

Note 7 – Retirement Plans

Periodic expenses for the Company's retirement plans, which include the Directors' Retirement Plan and the Executive Incentive Retirement Plan, were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In thousands)
Service cost	$	2		$	4		$	9		$	11
Interest cost		16			20			71			59
Curtailment		(46	)		-			(46	)		-
Amortization of unrecognized loss		18			9			25			28
Amortization of past service liability		(4	)		(7	)		(13	)		(21	)
Net periodic benefit cost	$	(14	)	$	26		$	46		$	77

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The Company previously disclosed in its Form 10-K for the year ended December 31, 2015 that it expected to contribute $124,000 to the Plan during the current fiscal year.  As of September 30, 2016, the Company contributed $718,000.The Company decided to terminate the Director Retirement Plan effective September 1, 2016. Full distribution of the plan is expected to take place in 2018.  The company previously terminated the Executive Incentive Retirement Plan in 2015 and distributed plan assets in 2016.

Note 8 – Reclassifications Out of Accumulated Other Comprehensive Income

Details about AccumulatedOther ComprehensiveIncome (Loss) Components	Amount Reclassifiedfrom AccumulatedOther ComprehensiveIncome  (Loss) (a)			Amount Reclassifiedfrom AccumulatedOther ComprehensiveIncome (Loss) (a)		Affected Line Itemin the Consolidated Statements of ComprehensiveIncome (Loss)
	Three Months EndedSeptember  30, 2016			Nine Months EndedSeptember 30, 2016
	(In thousands)
Amortization of defined benefit pension items:
Prior service costs		$                  4	(b)		$          13	Directors compensation
Unrecognized loss		(18)	(b)		(25)	Directors compensation
Curtailment		46	(b)		46	Directors compensation
Total before tax		32			34
Income tax expense		(13)			(14)
Total reclassifications for the period		$       19			$         20

Details about AccumulatedOther ComprehensiveIncome (Loss) Components	Amount Reclassifiedfrom AccumulatedOther ComprehensiveIncome  (Loss) (a)			Amount Reclassifiedfrom AccumulatedOther ComprehensiveIncome (Loss) (a)		Affected Line Itemin the Consolidated Statements of ComprehensiveIncome (Loss)
	Three Months EndedSeptember 30, 2015			Nine Months EndedSeptember 30, 2015
	(In thousands)
Amortization of defined benefit pension items:
Prior service costs		$                 7	(b)		$       21	Directors compensation
Unrecognized loss		(9)	(b)		(28)	Directors compensation
		(2)			(7)	Total before tax
		1			3	Income tax expense
Total reclassifications for the period		$        (1)			$       (4)	Net of tax

(a)Amounts in parenthesis indicate debits to profit/loss.

(b) These accumulated other comprehensive components are included in the computation of net periodic pension cost.  (See Note 7 for additional details).

28

ITEM 2 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Form 10-Q contains forward-looking statements, which can be identified by the use of words such as "believes," "expects," "anticipates," "estimates" or similar expressions. Forward – looking statements include:

· Statements of our goals, intentions and expectations;

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

· Statements regarding the quality of our loan and investment portfolios; and

· Estimates of our risks and future costs and benefits.

These forward-looking statements are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements due to, among others, the following factors:

· General economic conditions, either nationally or in our market area, that are worse than expected;

· The volatility of the financial and securities markets, including changes with respect to the market value of our financial assets;

· Changes in government regulation affecting financial institutions and the potential expenses associated therewith;

· Changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments;

· Our ability to enter into new markets and/or expand product offerings successfully and take advantage of growth opportunities;

· Increased competitive pressures among financial services companies;

· Changes in consumer spending, borrowing and savings habits;

· Legislative or regulatory changes that adversely affect our business;

· Adverse changes in the securities markets;

· Our ability to successfully manage our growth; and

· Changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board.

No forward-looking statement can be guaranteed and we specifically disclaim any obligation to update any forward-looking statement.

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Critical Accounting Policies

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of financial position and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses.

The allowance for loan losses represents our best estimate of losses known and inherent in our loan portfolio that are both probable and reasonable to estimate. In determining the amount of the allowance for loan losses, we consider the losses inherent in our loan portfolio and changes in the nature and volume of our loan activities, along with general economic and real estate market conditions. We utilize a two-tier approach: (1) identification of impaired loans for which specific reserves may be established; and (2) establishment of general valuation allowances on the remainder of the loan portfolio. We maintain a loan review system which provides for a systematic review of the loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loan, type of collateral and the financial condition of the borrower. Specific loan loss allowances are established for identified loans based on a review of such information and/or appraisals of the underlying collateral. General loan loss allowances are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions and management's judgment.

In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank's allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examinations.

Although specific and general loan loss allowances are established in accordance with management's best estimate, actual losses are dependent upon future events and, as such, further provisions for loan losses may be necessary in order to increase the level of the allowance for loan losses. For example, our evaluation of the allowance includes consideration of current economic conditions, and a change in economic conditions could reduce the ability of our borrowers to make timely repayments of their loans. This could result in increased delinquencies and increased non-performing loans, and thus a need to make increased provisions to the allowance for loan losses, which would be a charge to income during the period the provision is made, resulting in a reduction to our earnings. A change in economic conditions could also adversely affect the value of the properties collateralizing our real estate loans, resulting in increased charge-offs against the allowance and reduced recoveries, and thus a need to make increased provisions to the allowance for loan losses. Furthermore, a change in the composition of our loan portfolio or growth of our loan portfolio could result in the need for additional provisions.

Comparison of Financial Condition at September 30, 2016 and December 31, 2015

General. Total assets were $433.6 million at September 30, 2016, compared to $375.7 million at December 31, 2015, an increase of $57.9 million or 15.4%. During the period the Company experienced growth of $66.9 million or 25.5% in loans receivable, net. The investment portfolio declined $34.3 million or 43.4% while Federal Home Loan Bank of New York ("FHLBNY") stock decreased $393,000, or 21.5% and cash and cash equivalents increased by $19.3 million or 157.2%. Other assets decreased approximately $595,000 or 17.9% due to a reduction in prepaid expenses primarily related to the 2016 services of our previous core provider that was required to be prepaid in 2015. During the period the Company experienced deposit growth of $72.1 million or 27.4% while FHLBNY advances decreased by $10.0 million or 30.6%.

The ratio of average interest-earning assets to average-interest bearing liabilities was 133.4% for the nine month period ended September 30, 2016 as compared to 124.5% for the nine months ended September 30, 2015.

30

Loans. Loans receivable, net, increased by $66.9 million or 25.5% from $262.3 million at December 31, 2015 to $329.2 million at September 30, 2016.  Loans receivable, net represented 75.9% ofthe Company's assets at September 30, 2016 compared to 69.8% at December 31, 2015.  The Bank's commercial and multi-family real estate loan portfolio grew by $43.4 million or 72.8% since December 31, 2015; the commercial and industrial portfolio increased by $19.1 million on stronger loan demand, while the construction loan portfolio increased approximately $2.6 million as a result of loans utilizing funds to complete projects.  The residential mortgage portfolio increased $2.6 million to $192.2 million from $189.6 million as of year-end 2015. All remaining portfolios were consistent with year-end levels.

Securities. Our portfolio of securities held to maturity totaled $44.7 million at September 30, 2016 as compared to $79.0 million at December 31, 2015.   Maturities, calls and principal repayments during the nine months ended September 30, 2016 totaled $34.2 million and no purchases were made during the first nine months of 2016.

Deposits. Total deposits at September 30, 2016 were $334.7 million compared with $262.6 million at December 31, 2015.  Overall, deposits increased by $72.1 million with non-interest bearing balances increasing by $5.5 million while interest bearing deposits increased $66.6 million since December 31, 2015 as the Company focused on deposit pricing and the development of deeper customer relationships. Within non-interest bearing accounts, growth was experienced in business checking accounts.  Interest bearing demand and money market accounts increased $56.1 million since December 31, 2015. Savings and club account growth combined with certificates of deposit increased $10.5 million during the quarter.

Borrowings. Total borrowings at September 30, 2016 were $22.7 million compared with $32.7 million at December 31, 2015. Ten million dollars of long-term borrowings matured during the period. There were no overnight advances with the FHLBNY at September 30, 2016 or December 31, 2015.

Equity. Stockholders' equity was $72.6 million at September 30, 2016 compared to $76.4 million at December 31, 2015, a decrease of $3.8 million, or 5.0%. The decrease in shareholders' equity was due to the purchase of 112,600 shares of common stock for the 2016 Equity Incentive Plan; 107,403 of those shares were subsequently granted in the form of restricted stock awards. In addition, during the third quarter, the Company repurchased 242,379 shares (approximately 4.1% of the outstanding shares prior to the commencement of the repurchase plan) of common stock under its previously-announced stock repurchase plan for a total of $3.2 million or an average price per share of $13.27.  These decreases were partially offset by a $683,000 increase in retained earnings related to net income along with a $85,000 decrease in unallocated common stock held by the ESOP which is a contra-equity account.

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

General.  During the three month period ended September 30, 2016, the Company recorded net income of $301,000 compared with a net income for three month period ended September 30, 2015 of $258,000, as increases of $360,000 in net interest income and $11,000 in non-interest income were partially offset by increases of $140,000 in the provision for loan losses and $175,000 in non-interest expense. The increase in the provision for loan losses related to the loan growth the Company experienced during the quarter.  The increase in non-interest expense was largely due to an increase in salaries and employee benefits related to incentive compensation.

The Company had net income of $683,000 for the nine months ended September 30, 2016 compared to net income of $441,000 for the nine months ended September 30, 2015, as increases of $1,214,000 in net interest income and $332,000 of non-interest income were offset by increases of $477,000 in the provision for loan losses and $673,000 in non-interest expense. Non-interest income increased primarily as a result of a $350,000 settlement received from a wire fraud loss that was incurred in the fourth quarter of 2014. Offsetting the increase in income was an increase in the provision for loan loss related to the loan growth the Company experienced during the year as well as increases in salaries and employee benefits, professional services and service bureau fees. These increases were related to incentive compensation, the core data conversion, and transition to a managed IT solution.

31

Net Interest Income

The following tables provide information concerning the balances, yields and rates on interest-earning assets and interest-bearing liabilities during the periods indicated:

	For the three months ended
	09/30/16			09/30/15
Average Balance Sheet (In Thousands)	Average Balance	Interest Income/Expense	Yield	Average Balance	Interest Income/Expense	Yield
Interest-earning assets:
Loans Receivable	$305,405	$3,177	4.16%	$250,835	$2,630	4.19%
Securities held to maturity	47,293	276	2.33	81,394	449	2.21
Other interest-earning assets	33,412	57	0.68	24,453	37	0.61
Total interest-earning assets	386,110	3,510	3.64	356,682	3,116	3.49
Allowance for Loan Loss	(3,905)			(3,583)
Non-interest-earning assets	26,133			25,165
Total non-interest-earning assets	22,228			21,582
Total Assets	$408,338			$378,264
Interest-bearing liabilities:
Interest demand & Money market	$81,020	$60	0.30%	$47,571	$20	0.17%
Savings and club deposits	103,166	57	0.22	100,688	56	0.22
Certificates of deposit	89,365	266	1.19	83,879	253	1.21
Total interest-bearing deposits	273,551	383	0.56	232,138	329	0.57
Federal Home Loan Bank advances	22,675	183	3.23	32,530	203	2.50
Total interest-bearing liabilities	296,226	566	0.76	264,668	532	0.80
Non-interest-bearing deposit	34,455			45,169
Other non-interest-bearing liabilities	3,430			3,437
Total Liabilities	334,111			313,274
Equity	74,227			64,990
Total Liabilities and Equity	$408,338			$378,264
Net Interest Spread		2,944	2.88%		2,584	2.69%
Net Interest Margin			3.05%			2.90%
Ratio of Interest Earning Assets to Interest Bearing Liabilities	130.34%			134.77%

32

	For the nine months ended
	09/30/16			09/30/15
Average Balance Sheet (In Thousands)	Average Balance	Interest Income/Expense	Yield	Average Balance	Interest Income/Expense	Yield
Interest-earning assets:
Loans Receivable	$287,688	$9,097	4.22%	$243,584	$7,716	4.22%
Securities held to maturity	62,215	1,038	2.22	80,123	1,288	2.14
Other interest-earning assets	21,136	126	0.79	13,349	79	0.79
Total interest-earning assets	371,039	10,261	3.69	337,056	9,083	3.59
Allowance for Loan Loss	(3,749)			(3,580)
Non-interest-earning assets	23,215			25,102
Total non-interest-earning assets	19,466			21,522
Total Assets	$390,505			$358,578
Interest-bearing liabilities:
Interest demand & Money market	$63,224	$118	0.25%	$47,067	$56	0.16%
Savings and club deposits	103,298	171	0.22	100,753	165	0.22
Certificates of deposit	86,512	747	1.15	88,366	823	1.24
Total interest-bearing deposits	253,034	1,036	0.55	236,186	1,044	0.59
Federal Home Loan Bank advances	25,026	562	2.99	34,563	590	2.28
Total interest-bearing liabilities	278,060	1,598	0.77	270,749	1,634	0.80
Non-interest-bearing deposit	32,687			35,524
Other non-interest-bearing liabilities	3,664			3,011
Total Liabilities	314,411			309,284
Equity	76,094			49,294
Total Liabilities and Equity	$390,505			$358,578
Net Interest Spread		8,663	2.92%		7,449	2.79%
Net Interest Margin			3.11%			2.95%
Ratio of Interest Earning Assets to Interest Bearing Liabilities	133.44%			124.49%

33

The Company's net interest margin increased 15 basis points to 3.05% for the quarter ended September 30, 2016 compared to 2.90% for the quarter ended September 30, 2015. The yield on interest-earning assets increased 15 basis points year over year while the cost of interest-bearing liabilities declined four basis points. The increase in the yield on interest-earning assets was attributable to the change in our loan mix as the Company continued to increase its commercial real estate portfolio during the quarter. The decrease in the average cost of interest-bearing liabilities continues to be attributable to the lower rate environment and a more favorable funding composition comprised of a larger percentage of lower-cost deposit account balances.

For the nine months ended September 30, 2016, the net interest margin increased 16 basis points to 3.11% compared to 2.95% for the nine months ended September 30, 2015. The average yield oninterest-earning assets increased 10 basis points year over year while the average cost of interest-bearing liabilities declined three basis points. Similar to the quarterly discussion, the increase in the average yield on interest-earning assets was attributable to the change in our loan mix as the Company continued to increase its commercial real estate portfolio during the year. The decrease in the cost of interest-bearing liabilities continued to be attributable to the lower rate environment and a more favorable funding composition comprised of a larger percentage of lower-cost deposit account balances.

Provision for Loan Losses.  The provision for loan losses increased by $140,000 to $180,000 for the three months ended September 30, 2016 compared to a provision of $40,000 for the three months ended September 30, 2015. We recorded a provision for loan losses of $500,000 for the nine month period ended September 30, 2016, compared to a provision for loan losses of $23,000 for the year to date period ended September 30, 2015. The increased provision level during the current year period is attributable to the increased size of the loan portfolio at September 30, 2016 compared to September 30, 2015. The Company's management reviews the level of the allowance for loan losses on a quarterly basis based on a variety of factors including, but not limited to, (1) the risk characteristics of the loan portfolio, (2) current economic conditions, (3) actual losses previously experienced, (4) the Company's level of loan growth and (5) the existing level of reserves for loan losses that are probable and estimable.  The Company had $6.3 million in nonperforming loans as of September 30, 2016 compared to $6.7 million as of September 30, 2015.  The allowance for loan losses to total loans ratio was 1.21% at September 30, 2016 compared to 1.40% at September 30, 2015, while the allowance for loan losses to non-performing loans ratio was 64.28% at September 30, 2016 compared to 53.83% at September 30, 2015.  Non-performing loans to total loans and annualized net charge-offs to average loans outstanding ratios were at 1.89% and 0.03%, respectively, at and for the nine months ended September 30, 2016 compared to 2.60% and 0.04% at and for the nine months ended September 30, 2015.

Non-Interest Income. Non-interest income increased $11,000, or 6.4%, to $183,000 during the three months ended September 30, 2016 compared to $172,000 for the three months ended September 30, 2015.  Income from bank owned life insurance increased by $38,000 which was partially offset by decreases of $8,000 in fees and service charges and $19,000 in other non-interest income. Non-interest income was $836,000 for the nine months ended September 30, 2016 compared to $504,000 for the comparable 2015 timeframe. The increase of $332,000 or 65.9% year over year in the nine month period was primarily attributable to a $350,000 settlement from a wire loss the Company incurred and expensed in the fourth quarter of 2014.

Non-Interest Expenses. During the three months ended September 30, 2016, non-interest expenses increased $175,000 to $2.5 million from $2.3 million for the three months ended September 30, 2015. The increase was primarily attributable to increases in salaries and employee benefits, professional services and occupancy and equipment expense that were partially offset by a decrease in other expenses.  Salaries and benefits increased by $250,000 or 21.0% due to an increase in incentive compensation and stock option and restricted stock awards granted during the second quarter of 2016 as well as normal increases in salaries and benefits expenses and additions to staff. Professional services increased by $66,000 or 36.3% as the Company completed its transition to a managed IT solution and is migrating to a hosted IT solution that was not present in 2015. Occupancy and equipment increased $66,000 or 20.9% due to increased depreciation expense. Other non-interest expenses declined $138,000 primarily as a result of a $150,000 decrease in expenses related to OREO.

34

Non-interest expense increased $673,000 to $8.0 million for the nine months ended September 30, 2016 compared to $7.3 million for the same period ended September 30, 2015.  Salaries and benefits, professional services and service bureau fees increased by $538,000, $310,000, and $171,000, respectively, for the nine months ended September 30, 2016 compared to the same nine month period a year earlier.  The increase in salaries and benefits was primarily due to an increase in incentive compensation and stock option and restricted stock awards granted during the second quarter 2016 as well as normal increases in salaries and benefits expenses and additions to staff.  As previously discussed, the increase in professional services and service bureau fees was primarily the result of the Company's transition to a managed IT solution and subsequent transition to a hosted IT solution and the Company's full data conversion that was completed on May 13, 2016. Other non-interest expense decreased $369,000 primarily due to the absence of any other real estate owned expense during the period ended September 30, 2016.

Income Taxes. The income tax expense for the three months ended September 30, 2016 was $146,000 or 32.7% of the reported income before income taxes compared to a tax expense of $133,000 or 34.0% of the reported income before income taxes for the three months ended September 30, 2015. The income tax expense for the nine months ended September 30, 2016 was $343,000 or 33.4% of the reported income before income taxes compared to tax expense of $189,000 or 30.0% of the reported income before income taxes for the nine months ended September 30, 2015.

Liquidity, Commitments and Capital Resources

The Bank must be capable of meeting its customer obligations at all times. Potential liquidity demands include funding loan commitments, cash withdrawals from deposit accounts and other funding needs as they present themselves. Accordingly, liquidity is measured by our ability to have sufficient cash reserves on hand, at a reasonable cost and/or with minimum losses.

Senior management is responsible for managing our overall liquidity position and risk and is responsible for ensuring that our liquidity needs are being met on both a daily and long term basis. The Financial Review Committee, comprised of senior management and chaired by the President and Chief Executive Officer, is responsible for establishing and reviewing our liquidity procedures, guidelines, and strategy on a periodic basis.

Our approach to managing day-to-day liquidity is measured through our daily calculation of investable funds and/or borrowing needs to ensure adequate liquidity. In addition, senior management constantly evaluates our short-term and long-term liquidity risk and strategy based on current market conditions, outside investment and/or borrowing opportunities, short and long-term economic trends, and anticipated short and long-term liquidity requirements. The Bank's loan and deposit rates may be adjusted as another means of managing short and long-term liquidity needs. We do not at present participate in derivatives or other types of hedging instruments to meet liquidity demands, as we take a conservative approach in managing liquidity.

At September 30, 2016, the Bank had outstanding commitments to originate loans of $7.1 million, construction loans in process of $7.2 million, unused lines of credit of $20.5 million (including $15.8 million for home equity lines of credit), and standby letters of credit of $359,000. Certificates of deposit scheduled to mature in one year or less at September 30, 2016, totaled $47.3 million.

As of September 30, 2016, the Bank had contractual obligations related to the long-term operating leases for the three branch locations that it leases (Dewy Meadow, RiverWalk and Martinsville).

35

The Bank generates cash through deposits and/or borrowings from the FHLBNY to meet its day-to-day funding obligations when required.  At September 30, 2016, the total loans receivable to deposits ratio was 99.6%. At September 30, 2016, the Bank's collateralized borrowing limit with the FHLBNY was $105.5 million, of which $22.7 million was outstanding. As of September 30, 2016, the Bank also had a $33.0 million line of credit with two financial institutions for reverse repurchase agreements (which is a form of borrowing) that it could access if necessary.

Consistent with its goals to operate a sound and profitable financial organization, the Bank actively seeks to maintain its status as a well-capitalized institution in accordance with regulatory standards. As of September 30, 2016, the Bank exceeded all applicable regulatory capital requirements.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This item is not applicable to the Company as it is a smaller reporting company.

ITEM 4 – CONTROLS AND PROCEDURES

An evaluation was performed under the supervision, and with the participation of the Company's management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule l3a-l5(e) promulgated under the Securities Exchange Act of 1934, as amended) as of September 30, 2016. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures are effective as of September 30, 2016.

No change in the Company's internal controls over financial reporting (as defined in Rule l3a-l5(f) promulgated under the Securities Exchange Act of 1934, as amended) occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

There were no material pending legal proceedings at September 30, 2016 to which the Company or its subsidiaries is a party other than ordinary routine litigation incidental to their respective businesses. 

ITEM 1A – RISK FACTORS

This item is not applicable to the Company as it is a smaller reporting company.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

MSB Financial Corp. (the "Registrant") announced that on June 2, 2016 it received the non-objection of the Federal Reserve Bank of New York to purchase up to 112,600 shares of the Registrant's common stock in order to fund future awards of restricted stock that may be made under the Registrant's 2016 Equity Incentive Plan that was approved by stockholders at the Annual Meeting of Stockholders held on April 22, 2016.  Such purchases will be made from time to time in the open market, through block trades, in privately negotiated stock purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. As such purchases are dependent on various factors including market conditions, there can be no guarantee as to the timing or exact number of shares that are purchased.  On August 4, 2016, The Registrant announced that it has approved a stock repurchased to purchase up to 595,342 shares of the Registrant's common stock.  In connection with the repurchase plan, the Registrant entered into a Rule 10b5-1 plan with Keefe. Bruyette & Wood, Inc.

Period	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs
July 1- July 31, 2016	-	-	-	-
August 1-August 31, 2016	242,379	$13.27	242,379	352,963
September 1-September 30, 2016	-	-	-	-
Total	242,379	$13.27	242,379	352,963

36

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable

ITEM 5 – OTHER INFORMATION

None

ITEM 6 – EXHIBITS

31.1	Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Schema Document
101.CAL	XBRL Calculation Linkbase Document
101.LAB	XBRL Labels Linkbase Document
101.PRE	XBRL Presentation Linkbase Document
101.DEF	XBRL Definition Linkbase Document

37

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.

	MSB FINANCIAL CORP.
	(Registrant)
Date November 14, 2016	/s/ Michael A. Shriner
	Michael A. Shriner
	President and Chief Executive Officer
Date November 14, 2016	/s/ John S. Kaufman
	John S. Kaufman
	Vice President and Chief Financial Officer

38

EX-31.1

Exhibit 31.1

SECTION 302 CERTIFICATION

I, Michael A. Shriner, President and Chief Executive Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MSB Financial Corp.;

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

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

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

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

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

5.The registrant's other certifying officer and I have disclosed, based on 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 (or persons performing the equivalent functions):

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

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

November 14, 2016	/s/ Michael A. Shriner
Date	Michael A. Shriner President and Chief Executive Officer

EX-31.2

Exhibit 31.2

SECTION 302 CERTIFICATION

I, John S. Kaufman, Vice President and Chief Financial Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MSB Financial Corp.;

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

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

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

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

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

5.The registrant's other certifying officer and I have disclosed, based on 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 (or persons performing the equivalent functions):

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

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

November 14, 2016	/s/ John S. Kaufman
Date	John S. Kaufman Vice President and Chief Financial Officer

EX-32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 (the "Report") of MSB Financial Corp. (the "Corporation") as filed with the Securities and Exchange Commission on the date hereof, we, Michael A. Shriner, President and Chief Executive Officer, and John S. Kaufman, Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 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 Corporation.

/s/ Michael A. Shriner	/s/ John S. Kaufman
Michael A. Shriner	John S. Kaufman
President and CEO	Vice President and CFO
November 14, 2016	November 14, 2016

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document Information [Line Items]
Entity Registrant Name	MSB FINANCIAL CORP
Entity Central Index Key	0001635261
Trading Symbol	msbf
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		5,711,044
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Cash and due from banks	$ 1,159	$ 2,219
Interest-earning demand deposits with banks	30,488	10,084
Cash and Cash Equivalents	31,647	12,303
Securities held to maturity (fair value of $45,462 and $78,400, respectively)	44,676	78,995
Loans receivable, net of allowance for loan losses of $4,044 and $3,602, respectively	329,230	262,312
Premises and equipment	8,994	8,118
Federal Home Loan Bank of New York stock, at cost	1,433	1,826
Bank owned life insurance	13,675	7,468
Accrued interest receivable	1,254	1,352
Other assets	2,721	3,316
Total Assets	433,630	375,690
Deposits:
Non-interest bearing	33,653	28,173
Interest bearing	301,037	234,425
Total Deposits	334,690	262,598
Advances from Federal Home Loan Bank of New York	22,675	32,675
Advance payments by borrowers for taxes and insurance	820	743
Other liabilities	2,874	3,311
Total Liabilities	361,059	299,327
Stockholders’ Equity
Preferred stock, par value $0.01; 1,000,000 shares authorized; no shares issued or outstanding
Common stock, par value $0.01; 49,000,000 shares authorized; issued and outstanding 5,711,044 at September 30, 2016 and 5,953,423 at December 31, 2015	57	59
Paid-in capital	51,678	56,216
Retained earnings	22,892	22,209
Unallocated common stock held by ESOP (204,070 and 212,242 shares, respectively)	(1,957)	(2,042)
Accumulated other comprehensive loss	(99)	(79)
Total Stockholders’ Equity	72,571	76,363
Total Liabilities and Stockholders’ Equity	$ 433,630	$ 375,690

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Securities held to maturity, fair value	$ 45,462	$ 78,400
Loans receivable, allowance for loan losses	$ 4,044	$ 3,602
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	49,000,000	49,000,000
Common stock, share issued (in shares)	5,711,044	5,953,423
Common stock, share outstanding (in shares)	5,711,044	5,953,423
Unallocated common stock held by ESOP, shares (in shares)	204,070	212,242

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest Income:
Loans receivable, including fees	$ 3,177	$ 2,630	$ 9,097	$ 7,716
Securities held to maturity	276	449	1,038	1,288
Other	57	37	126	79
Total Interest Income	3,510	3,116	10,261	9,083
Interest Expense
Deposits	383	329	1,036	1,044
Borrowings	183	203	562	590
Total Interest Expense	566	532	1,598	1,634
Net Interest Income	2,944	2,584	8,663	7,449
Provision for Loan Losses	180	40	500	23
Net Interest Income after Provision for Loan Losses	2,764	2,544	8,163	7,426
Non-Interest Income
Fees and service charges	78	86	248	260
Income from bank owned life insurance	94	56	207	165
Other	11	30	381	79
Total Non-Interest Income	183	172	836	504
Non-Interest Expenses
Salaries and employee benefits	1,419	1,193	4,306	3,768
Directors compensation	109	110	336	334
Occupancy and equipment	382	316	1,064	959
Service bureau fees	134	175	639	468
Advertising	7	13	28	110
FDIC assessment	74	71	211	213
Professional services	248	182	860	550
Other	127	265	529	898
Total Non-Interest Expenses	2,500	2,325	7,973	7,300
Income before Income Taxes	447	391	1,026	630
Income Tax Expense	146	133	343	189
Net Income	$ 301	$ 258	$ 683	$ 441
Earnings per share:
Basic (in dollars per share)	$ 0.05	$ 0.05	$ 0.12	$ 0.08
Diluted (in dollars per share)	$ 0.05	$ 0.04	$ 0.12	$ 0.08
Net Income	$ 301	$ 258	$ 683	$ 441
Defined benefit pension plans:
Reclassification adjustment for prior service cost included in net income, net of tax of $1, $3, $5 and $9, respectively	(3)	(4)	(8)	(12)
Actuarial loss arising during the period, net of tax of $-, $(3), $- and $(9), respectively		4		12
Reclassification adjustment for net actuarial loss (gain) included in net income, net of tax of $12, $(4), $8, and $(12), respectively	(16)	5	(12)	16
Total other comprehensive income (loss)	(19)	5	(20)	16
Comprehensive income	$ 282	$ 263	$ 663	$ 457

XML

Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification adjustment for prior service cost included in net income, Tax	$ 1,000	$ 3,000	$ 5,000	$ 9,000
Actuarial loss arising during period, Tax	0	(3,000)	0	(9,000)
Reclassification adjustment for net actuarial (gain) loss included in net income, Tax	$ 12,000	$ (4,000)	$ 8,000	$ (12,000)

XML

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unallocated Common Stock Heldby ESOP [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2015	5,953,423
Balance at Dec. 31, 2015	$ 59	$ 56,216	$ 22,209	$ (2,042)	$ (79)	$ 76,363
Net Income			683			683
Other comprehensive income, net of tax					(20)	(20)
Allocation of ESOP stock		25		85		110
Repurchased Stock (in shares)	(242,379)
Repurchased Stock	$ (2)	(3,213)				(3,215)
Purchase of common stock for equity plan		(1,467)				(1,467)
Stock-Based Compensation		117				117
Balance (in shares) at Sep. 30, 2016	5,711,044
Balance at Sep. 30, 2016	$ 57	$ 51,678	$ 22,892	$ (1,957)	$ (99)	$ 72,571

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net Income	$ 683	$ 441
Adjustments to reconcile net income to net cash provided by operating activities:
Net accretion of securities premiums and discounts and deferred loan fees and costs	(72)	(24)
Depreciation and amortization of premises and equipment	325	289
Stock-based compensation and allocation of ESOP stock	227	124
Provision for Loan Losses	500	23
Loss on sale of other real estate owned		131
Income from bank owned life insurance	(207)	(165)
Decrease in accrued interest receivable	98	10
Decrease in other assets	608	2
(Decrease) increase in other liabilities	(470)	402
Net Cash Provided by Operating Activities	1,692	1,234
Activity in held to maturity securities:
Purchases		(4,935)
Maturities, calls and principal repayments	34,242	3,266
Net increase in loans receivable	(42,312)	(13,875)
Purchased loans	(24,957)	(7,100)
Purchase of premises and equipment	(1,201)	(153)
Redemption of Federal Home Loan Bank of NY stock	393	(116)
Purchase of bank owned life insurance	(6,000)
Capitalized improvements of other real estate owned		(89)
Proceeds from sale of other real estate owned		947
Net Cash Used in Investing Activities	(39,835)	(22,055)
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	72,092	(7,956)
Net Proceeds from stock offering		34,799
Cash paid for stock options		(56)
Increase (decrease) in advances from FHLB of NY	(10,000)	2,675
Increase in advance payments by borrowers for taxes and insurance	77	130
Repurchase of common stock	(3,215)
Purchase of common stock for equity plan	(1,467)
Net Cash Provided by Financing Activities	57,487	29,592
Net Increase in Cash and Cash Equivalents	19,344	8,771
Cash and Cash Equivalents – Beginning	12,303	7,519
Cash and Cash Equivalents – Ending	31,647	16,290
Interest paid	1,604	1,631
Income taxes paid	$ 68	$ 251

XML

Note 1 - Organization and Business

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Nature of Operations [Text Block]

Note 1 – Organization and Business

MSB Financial Corp. (the “Company”) is a Maryland-chartered corporation organized in 2014 to be the successor to MSB Financial Corp., a federal corporation (“Old MSB”) upon completion of the second-step conversion of Millington Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. MSB Financial, MHC (the “MHC”) was the former mutual holding company for Old MSB prior to completion of the second-step conversion. In conjunction with the second-step conversion, each of the MHC and Old MSB ceased to exist. The second-step conversion was completed on July 16, 2015 at which time the Company sold 3,766,592 shares of its common stock (including 150,663 shares purchased by the Bank’s employee stock ownership plan) at $10.00 per share for gross proceeds of approximately $37.7 million. Expenses related to the stock offering totaled $1.5 million and were netted against proceeds. As part of the second-step conversion, each of the outstanding shares of common stock of Old MSB held by persons other than the MHC were converted into 1.1397 shares of Company common stock with cash paid in lieu of fractional shares. As a result, a total of 2,187,242 shares were issued in the second-step conversion. As a result of the second-step conversion, all share and per share information has subsequently been revised to reflect the 1.1397 exchange ratio unless otherwise noted.      

The Company’s principal business is the ownership and operation of the Bank. The Bank is a New Jersey-chartered stock savings bank and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The primary business of the Bank is attracting retail deposits from the general public and using those deposits together with funds generated from operations, principal repayments on securities and loans and borrowed funds, for its lending and investing activities. The Bank’s loan portfolio primarily consists of one-to-four family and home equity residential loans, commercial loans, and construction loans. It also invests in U.S. government obligations and mortgage-backed securities. The Bank is regulated by the New Jersey Department of Banking and Insurance and the FDIC. The Board of Governors of the Federal Reserve System (the “Federal Reserve”) regulates the Company as a bank holding company.

The primary business of Millington Savings Service Corp (the “Service Corp”) was the ownership and operation of a single commercial rental property. This property was sold during the year ended June 30, 2007. Currently the Service Corp is inactive.

Subsequent Event

The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2016, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

XML

Note 2 - Basis of Consolidated Financial Statement Presentation

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 2 – Basis of Consolidated Financial Statement Presentation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly owned subsidiary the Service Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X, and therefore, do not include all information or notes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

I

n the opinion of management, all adjustments, consisting of only normal recurring adjustments or accruals, which are necessary for a fair presentation of the consolidated financial statements have been made at September 30, 2016 and for the nine months ended September 30, 2016 and 2015. The results of operations for the nine months ended September 30, 2016 are not necessarily indicative of the results which may be expected for an entire fiscal year or other interim periods.

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of financial condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses is adequate. While management uses all available information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the Bank’s market area. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examinations.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09,

Revenue from Contracts with Customers

(ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09, as modified by ASU 2015-14, ASU 2016-8, ASU 2016-10, and ASU 2016-12, is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of the pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

In January 2016, the FASB issued ASU No. 2016-01,

Financial Instruments - Overall.

The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods 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) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the 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) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

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

Leases (Topic 842)

. This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all leases. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily due to the recognition of lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. The standard is required to be adopted using the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the impact of the pending adoption of ASU 2016-02 on our consolidated financial statements.

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

Improvements to Employee Share-Based Payment Accounting,Compensation – Stock Compensation

(Topic 718). This ASU changes several aspects of the accounting for share-based payment award transactions, including: (1) accounting and cash flow classification for excess tax benefits and deficiencies, (2) forfeitures, and (3) tax withholding requirements and cash flow classification. The standard is effective for public companies for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted for the interim or annual period provided that the entire standard is adopted. If an entity early adopts the standard in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of the pending adoption of ASU 2016-09 on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15: Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in this Update address the following eight specific cash flow issues with the objective of reducing the existing diversity in practice: (1) debt prepayments or debt extinguishment cost (cash outflow-financing), (2) settlement of debt instruments with coupon interest rates insignificant to the effective interest rate, Interest payment (cash outflow-operating), principal payment (cash outflow-financing), (3) contingent consideration payments made soon after business combination (cash outflow-investing), (4) proceeds from settlement of insurance claims (classification on basis of the nature of each loss), (5) proceeds from corporate/bank-owned life insurance, proceeds (cash inflow-investing), payments (cash outflow-investing/operating), (6) distribution received from equity method investees, cumulative earnings approach (cash inflow-investing), nature of distribution approach (cash inflow-operating/investing), (7) beneficial interest in securitization transactions, assets (noncash transaction), cash receipts from trade receivable (cash inflow-investing), (8) separately identifiable cash flows (classified based on source-financing/investing/operating).  The amendments in this Update are effective for public business entities for the fiscal years beginning after December 15, 2017 and interim periods within those fiscal years.  Early adoption is permitted, including adoption in an interim period.  If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.  An entity that elects early adoption must adopt all of the amendments in the same period.   We are currently evaluating the impact of the pending adoption of ASU 2016-15 on our consolidated financial statements.

In September 2016, the FASB issued ASU No. 2016-13,

Measurement of Credit Losses on Financial Instruments

. This ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument. The standard is effective for public companies in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted the interim or annual period provided that the entire standard is adopted. We are currently evaluating the impact of the pending adoption of ASU 2016-13 on our consolidated financial statements.

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Note 3 - Earnings Per Share

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share:

	Three Months Ended September 30 ,				Nine Months Ended September 30,
(In Thousands, Except Per Share Data)	2016		2015		2016		2015
Numerator:
Net income	$	301	$	258	$	683	$	441
Denominator:
Weighted average common shares		5,588		5,721		5,692		5,667
Dilutive potential common shares		82		44		76		26
Weighted average fully diluted shares		5,670		5,765		5,768		5,693
Earnings per share:
Basic	$	0.05	$	0.05	$	0.12	$	0.08
Dilutive	$	0.05	$	0.04	$	0.12	$	0.08
Outstanding common stock equivalents having no dilutive effect		-		-		-		-

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Note 4 - Securities Held to Maturity

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Investment Holdings [Text Block]

Note 4 - Securities Held to Maturity

The amortized cost of securities held to maturity and their estimated fair values as of September 30, 2016 and December 31, 2015 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
September 30, 2016
U.S. Government agencies:
Due after one year through five years	$	6,500	$	7	$	1	$	6,506
		6,500		7		1		6,506
Mortgage-backed securities		25,129		1,041		5		26,165
Corporate bonds:
Due within one year		2,006		5		1		2,010
Due after one year through five years		2,037		16		13		2,040
Due after five through ten years		1,000		-		40		960
Due after ten years		4,000		-		254		3,746
		9,043		21		308		8,756
State and political subdivisions:
Due within one year		95		1		1		95
Due after one through five years		592		1		1		592
Due after five through ten years		712		13		-		725
		1,399		15		2		1,412
Certificates of deposit:
Due after one year through five years		2,605		18		-		2,623
		2,605		18		-		2,623
	$	44,676	$	1,102	$	316	$	45,462

Note 4 - Securities Held to Maturity - Continued

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
December 31, 2015
U.S. Government agencies:
Due after one year through five years	$	18,000	$	4	$	142	$	17,862
Due after five through ten years		8,500		2		80		8,422
Due thereafter		11,000		-		285		10,715
		37,500		6		507		36,999
Mortgage-backed securities		26,463		405		230		26,638
Corporate bonds:
Due within one year		503		2		-		505
Due after one through five years		4,069		21		4		4,086
Due after five through ten years		1,000		-		10		990
Due thereafter		4,000		-		289		3,711
		9,572		23		303		9,292
State and political subdivisions:
Due within one year		96		-		-		96
Due after one through five years		596		-		2		594
Due after five through ten years		713		5		-		718
		1,405		5		2		1,408
Certificates of deposit:
Due within one year		1,450		-		-		1,450
Due after one through five years		2,605		11		3		2,613
		4,055		11		3		4,063
	$	78,995	$	450	$	1,045	$	78,400

All mortgage-backed securities owned at September 30, 2016 and December 31, 2015 have been issued by FNMA, FHLMC or GNMA and are secured by one-to-four family residential real estate. The amortized cost and estimated fair value of securities held to maturity at September 30, 2016 and December 31, 2015, as shown above, are reported by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of securities held to maturity during the nine months ended September 30, 2016 or 2015. At September 30, 2016 and December 31, 2015, securities held to maturity with a fair value of approximately $1,000,000 million and $997,800, respectively, were pledged to secure public funds on deposit.

Note 4 - Securities Held to Maturity - Continued

The following tables set forth the gross unrealized losses and fair value of securities in an unrealized loss position as of September 30, 2016 and December 31, 2015, and the length of time that such securities have been in an unrealized loss position:

	Less than 12 Months				More than 12 Months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In thousands)
September 30, 2016:
U.S. Government agencies	$	1,000	$	1	$	-	$	-	$	1,000	$	1
Mortgage-backed securities		448		5		-		-		448		5
Corporate bonds		1,990		14		4,706		294		6,696		308
State and political subdivisions		247		1		101		1		348		2
	$	3,685	$	21	$	4,807	$	295	$	8,492	$	316

	Less than 12 Months				More than 12 Months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In thousands)
December 31, 2015
U.S. Government agencies	$	9,410	$	89	$	17,083	$	418	$	26,493	$	507
Mortgage-backed securities		12,312		173		2,602		57		14,914		230
Corporate bonds		5,208		300		504		3		5,712		303
State and political subdivisions		515		2		-		-		515		2
Certificates of deposit		932		3		-		-		932		3
	$	28,377	$	567	$	20,189	$	478	$	48,566	$	1,045

At September 30, 2016, management concluded that the unrealized losses summarized above (which related to one U.S. Government agency bond, one mortgage-backed security, six corporate bonds and three state and political subdivision securities, compared to nineteen U.S. Government agency bonds, fifteen mortgage-backed securities, five corporate bonds, four state and political subdivision bonds, and four certificates of deposit as of December 31, 2015) are temporary in nature since they are not related to the underlying credit quality of the issuer. The Company does not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell these securities prior to the anticipated recovery of the remaining amortized cost. Management believes that the losses above are primarily related to the change in market interest rates. Accordingly, the Company has not recognized any other-than-temporary impairment loss on these securities.

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Note 5 - Loans Receivable and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 5 - Loans Receivable and Allowance for Credit Losses

The composition of loans receivable at September 30, 2016 and December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
	(In thousands)
Residential mortgage:
One-to-four family	$	157,945		$	154,624
Home equity		34,246			35,002
Total residential mortgage loans		192,191			189,626
Commercial and multi-family real estate		103,083			59,642
Construction		16,160			10,895
Commercial and industrial		29,342			10,275
Total commercial loans		148,585			80,812
Total consumer loans		458			493
Loans receivable		341,234			270,931
Loans in process		(7,228	)		(4,600	)
Deferred loan fees		(732	)		(417	)
Allowance for loan losses		(4,044	)		(3,602	)
		(12,004	)		(8,619	)
Loans receivable, net	$	329,230		$	262,312

Allowance for Loan Losses

The allowance calculation methodology includes segregation of the total loan portfolio into segments. The Company’s loans receivable portfolio is comprised of the following segments: residential mortgage, commercial real estate, construction, commercial and industrial and consumer. Some segments of the Company’s loan receivable portfolio are further disaggregated into classes which allow management to more accurately monitor risk and performance.

The residential mortgage loan segment is disaggregated into two classes: one-to-four family loans, which are primarily first liens, and home equity loans, which consist of first and second liens. The commercial real estate loan segment includes owner and non-owner occupied loans which have medium risk based on historical experience with these types of loans. The construction loan segment is further disaggregated into two classes: one-to-four family owner-occupied, which includes land loans, whereby the owner is known and there is less risk, and other, whereby the property is generally under development and tends to have more risk than the one-to-four family owner-occupied loans. The commercial and industrial loan segment consists of loans made for the purpose of financing the activities of commercial customers. The majority of commercial and industrial loans are secured by real estate and thus carry a lower risk than traditional commercial and industrial loans. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these classes of loans, adjusted for qualitative factors. These qualitative risk factors include:

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

Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation.

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

Federal regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following tables provide an analysis of the allowance for loan losses and the loan receivable balances, by portfolio segment segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2016 and 2015:

(in thousands)	Residential Mortgage			Commercial and Multi-Family Real Estate		Construction		Commercial and Industrial		Consumer			Unallocated			Total
Three Months Ended September 30, 2016
Allowance for loan losses:
Balance, beginning	$	1,842		$	1,322	$	163	$	314	$	15		$	213		$	3,869
Provisions (credits)		(4	)		61		14		222		1			(114	)		180
Loans charged-off		—			—		—		—		(8	)		—			(8	)
Recoveries		3			—		—		—		—			—			3
Balance, ending	$	1,841		$	1,383	$	177	$	536	$	8		$	99		$	4,044
Nine Months Ended September 30, 2016
Allowance for loan losses:
Balance, beginning	$	1,927		$	1,015	$	143	$	235	$	9		$	273		$	3,602
Provisions (credits)		(38	)		368		34		301		9			(174	)		500
Loans charged-off		(64	)		—		—		—		(11	)		—			(75	)
Recoveries		16			—		—		—		1			—			17
Balance, ending	$	1,841		$	1,383	$	177	$	536	$	8		$	99		$	4,044
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	—		$	—	$	—	$	—	$	—		$	—		$	—
Loans collectively evaluated for impairment		1,841			1,383		177		536		8			99			4,044
Ending Balance	$	1,841		$	1,383	$	177	$	536	$	8		$	99		$	4,044
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	14,705		$	1,232	$	—	$	475	$	—		$	—		$	16,412
Loans collectively evaluated for impairment		177,150			101,572		8,860		28,822		458			—			316,862
Ending Balance	$	191,855		$	102,804	$	8,860	$	29,297	$	458		$	—		$	333,274

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

(in thousands)	Residential Mortgage			Commercial and Multi-Family Real Estate			Construction			Commercial and Industrial			Consumer		Unallocated			Total
Three Months Ended September 30, 2015
Allowance for loan losses:
Balance, beginning	$	2,005		$	1,007		$	197		$	3688		$	5	$	1		$	3,583
Provisions (credits)		48			4			23			(45	)		6		4			40
Loans charged-off		(46	)		—			—			—			—		—			(46	)
Recoveries		4			—			—			—			—		—			4
Balance, ending	$	2,011		$	1,011		$	220		$	323		$	11	$	5		$	3,581
Nine Months Ended September 30, 2015
Allowance for loan losses:
Balance, beginning	$	2,109		$	885		$	317		$	290		$	6	$	27		$	3,634
Provisions (credits)		(38	)		133			(88	)		33			5		(22	)		23
Loans charged-off		(68	)		(7	)		(21	)		—			—		—			(96	)
Recoveries		8			—			12			—			—		—			20
Balance, ending	$	2,011		$	1,011		$	220		$	323		$	11	$	5		$	3,581
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1		$	—		$	—		$	—		$	6	$	—		$	7
Loans collectively evaluated for impairment		2,010			1,011			220			323			5		5			3,574
Ending Balance	$	2,011		$	1,011		$	220		$	323		$	11	$	5		$	3,581
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	15,205		$	1,554		$	253		$	716		$	6	$	—		$	17,734
Loans collectively evaluated for impairment		169,707			49,361			7,774			10,742			505		—			238,089
Ending Balance	$	184,912		$	50,915		$	8,027		$	11,458		$	511	$	—		$	255,823

Nonaccrual and Past Due Loans

For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or when management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. Certain loans may remain on accrual status if they are in the process of collection and are either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table represents the classes of the loans receivable portfolio summarized by aging categories of performing loans and nonaccrual loans as of September 30, 2016 and December 31, 2015:

As of September 30, 2016	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans(1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	1,244	$	2,609	$	232	$	4,085	$	148,987	$	4,551	$	157,623
Home equity		655		29		50		734		33,234		264		34,232
Commercial and multi-family real estate		399		—		—		399		101,565		840		102,804
Construction
One-to-four family owner-occupied		280		—		—		280		5,361		—		5,641
Other		—		—		—		—		3,219		—		3,219
Commercial and industrial		174		—		—		174		28,769		354		29,297
Consumer		3		—		—		3		455		—		458
Total	$	2,755	$	2,638	$	282	$	5,675	$	321,590	$	6,009	$	333,274

(1) Nonaccrual loans at September 30, 2016, included $4,897,000 that were 90 days or more delinquent, $903,000 that were 60-89 days delinquent, none that were 30-59 days delinquent, and $209,000 that were current or less than 30 days delinquent.

As of December 31, 2015	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans (1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	4,187	$	770	$	235	$	5,192	$	145,479	$	3,744	$	154,415
Home equity		50		—		50		100		34,099		803		35,002
Commercial and multi-family real estate		—		—		—		—		58,661		827		59,488
Construction
One-to-four family owner-occupied		—		—		—		—		2,663		—		2,663
Other		—		—		—		—		3,581		—		3,581
Commercial and industrial		—		—		—		—		9,730		542		10,272
Consumer		5		2		—		7		486		—		493
Total	$	4,242	$	772	$	285	$	5,299	$	254,699	$	5,916	$	265,914

(1) Nonaccrual loans at December 31, 2015, included $2,695,000 that were 90 days or more delinquent, $917,000 that were 60-89 days delinquent, $685,000 that were 30-59 days delinquent, and $1,618,000 that were current or less than 30 days delinquent.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

Impaired Loans

Management evaluates individual loans in all of the loan segments (including loans in the residential mortgage and consumer segments) for possible impairment if the loan is either on nonaccrual status or is risk rated Substandard or worse or has been modified in a troubled debt restructuring. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.

Once the determination has been made that a loan is impaired, impairment is measured by comparing the recorded investment in the loan to one of the following methods: (a) the present value of expected cash flows (discounted at the loan’s effective interest rate), (b) the loan’s observable market price or (c) the fair value of collateral adjusted for expected selling costs. The method is selected on a loan-by-loan basis with management primarily utilizing the fair value of collateral method.

When a real estate-secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property.

The estimated fair values of non-real estate collateral, such as accounts receivable, inventory and equipment, are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging schedules or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets.

If the measurement of the impaired loan is less than the recorded investment in the loan, an impairment is recognized by establishing an impairment reserve for the expected loss and a charge-off against the allowance for loan losses, if applicable.

The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following tables provide an analysis of the impaired loans at September 30, 2016 and December 31, 2015 and the average balances of such loans for the nine months and year, respectively, then ended:

September 30, 2016 (In thousands)	Recorded Investment		Loans with No Related Reserve		Loans with Related Reserve		Related Reserve		Contractual Principal Balance		Average Recorded Investment
Residential mortgage
One-to-four family	$	13,207	$	13,207	$	-	$	-	$	13,560	$	12,867
Home equity		1,498		1,498		-		-		1,588		2,148
Commercial and multi-family real estate		1,232		1,232		-		-		1,979		1,215
Construction		-		-		-		-		-		-
Commercial and industrial		475		475		-		-		920		557
Consumer		-		-		-		-		-		1
Total	$	16,412	$	16,412	$	-	$	-	$	18,047	$	16,788

December 31, 2015 (In thousands)	Recorded Investment		Loans with No Related Reserve		Loans with Related Reserve		Related Reserve		Contractual Principal Balance		Average Recorded Investment
Residential mortgage
One-to-four family	$	12,991	$	12,895	$	96	$	3	$	13,703	$	14,109
Home equity		2,261		2,261		-		-		2,353		1,360
Commercial and multi-family real estate		1,226		1,226		-		-		1,780		1,671
Construction
One-to-four family owner- occupied		-		-		-		-		-		-
Other		-		-		-		-		-		376
Commercial and industrial		655		655		-		-		1,251		708
Consumer		-		-		-		-		-		1
Total	$	17,133	$	17,037	$	96	$	3	$	19,087	$	18,225

As of September 30, 2016 and December 31, 2015, impaired loans listed above include $11.1 million and $15.1 million, respectively, of loans previously modified in troubled debt restructurings (“TDRs”) and as such are considered impaired under GAAP. As of September 30, 2016 and December 31, 2015, $9.3 million and $11.0 million, respectively, of these loans have been performing in accordance with their modified terms for an extended period of time and as such were removed from non-accrual status and considered performing.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

Interest income of $45,000 and $188,000 was recognized on impaired loans during the three months ended September 30, 2016 and 2015. The average balance of impaired loans for the three months ended September 30, 2016 and September 30, 2015 were $16.7 million and $18.2 million, respectively. During the nine months ended September 30, 2016 and 2015, interest income of $363,000 and $573,000, respectively, was recognized on impaired loans. The average balance of impaired loans for the nine months ended September 30, 2015 was $18.5 million.   

Credit Quality Indicators

Management uses an eight point internal risk rating system to monitor the credit quality of the loans in the Company’s commercial real estate, construction and commercial and industrial loan segments.  The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually or when credit deficiencies, such as delinquent loan payments, arise. The criticized rating categories utilized by management generally follow bank regulatory definitions. The first six risk rating categories are considered not criticized, and are aggregated as “Pass” rated.  The “Special Mention” category includes assets that are currently protected, but are potentially weak, resulting in increased credit risk and deserving management’s close attention.  If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects.  Loans classified “Substandard” have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected.  They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any.  Loans classified “Doubtful” have all the weaknesses inherent in loans classified “Substandard” with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable.  Loans classified as a “Loss” are considered uncollectible and subsequently charged off.

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table presents the classes of the loans receivable portfolio summarized by the aggregate “Pass” and the criticized categories of “Special Mention”, “Substandard”, “Doubtful” and “Loss” within the internal risk rating system as of September 30, 2016 and December 31, 2015:

As of September 30, 2016	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	101,191	$	399	$	1,214	$	—	$	—	$	102,804
Construction
One-to-four family owner-occupied		5,641		—		—		—		—		5,641
Other		3,219		—		—		—		—		3,219
Commercial and industrial		28,671		88		538		—		—		29,297
Total	$	138,722	$	487	$	1,752	$	—	$	—	$	140,961

As of December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	57,863	$	425	$	1,200	$	—	$	—	$	59,488
Construction
One-to-four family owner-occupied		2,663		—		—		—		—		2,663
Other		3,581		—		—		—		—		3,581
Commercial and industrial		9,480		94		698		—		—		10,272
Total	$	73,587	$	519	$	1,898	$	—	$	—	$	76,004

Management monitors the performance and credit quality of the residential mortgage and consumer portfolios by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status. 

	Residential mortgage				Consumer				Total Residential and Consumer
	Sep . 30, 2016		Dec. 31, 2015		Sep . 30, 2016		Dec. 31, 2015		Sep . 30, 2016		Dec. 31, 2015
	(In thousands)
Nonperforming	$	5,097	$	4,832	$	—	$	—	$	5,097	$	4,832
Performing		186,758		184,585		458		493		187,216		185,078
Total	$	191,855	$	189,417	$	458	$	493	$	192,313	$	189,910

Note 5 - Loans Receivable and Allowance for Loan Losses (Continued)

Troubled Debt Restructurings

Loans the terms of which are modified are classified as a TDR if, in connection with the modification, the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR generally involve a reduction in interest rate below market rates given the associated credit risk, or an extension of a loan’s stated maturity date or capitalization of interest and/or escrow. Nonaccrual TDRs are restored to accrual status if principal and interest payments, under the modified terms, are current for twelve consecutive months after modification. Loans classified as TDRs are designated as impaired until they are ultimately repaid in full or foreclosed and sold. The nature and extent of impairment of TDRs, including those which experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses.

The recorded investment balance of TDRs totaled $11.1 million at September 30, 2016 compared with $15.1 million at December 31, 2015. The majority of the Company’s TDRs are on accrual status. Accruing TDRs totaled $9.3 million at September 30, 2016 versus $11.0 million at December 31, 2015. The total of TDRs on non-accrual status was $1.8 million at September 30, 2016 and $4.1 million at December 31, 2015.

The Company did not modify any loans as a TDR during the three months ended September 30, 2016 and 2015. For the nine months ended September 30, 2016, the Company did not modify any loans as a TDR. For the nine months ended September 30, 2015, the Company modified one home equity loan with a pre-modification and post-modification balance of $167,000. An interest only period was initiated until October 2016 after which the loan is on a fifteen-year amortization schedule. In addition, the Company modified a single one-to-four family mortgage loan with a pre-modification and post-modification balance of $237,000. A twelve month period with a lower interest rate and payment was granted after which the loan returns to contractual terms.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans modified in TDRs during the previous 12 months and for which there was a subsequent payment default during the three and nine months ended September 30, 2016 and 2015.

There was no Other Real Estate Owned (“OREO”) at September 30, 2016 and December 31, 2015. We may obtain physical possession of residential real estate collateralizing consumer mortgage loans via foreclosure or in-substance repossession. At September 30, 2016 and December 31, 2015, we had consumer loans with a carrying value of $2.9 million and $1.8 million, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

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Note 6 - Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 6 - Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and certain liabilities and to determine fair value disclosures.

FASB ASC Topic 820,

Fair Market Value Disclosures

(“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

ASC 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

● Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

● Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

● Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

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. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Assets Measured at Fair Value on a Recurring Basis

The Bank did not have any financial assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015.

Assets Measured at Fair Value on a Non-Recurring Basis

Certain financial and non-financial assets are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

The following table summarizes those assets measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015:

	September 30, 2016
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In thousands)
Impaired loans	$	—	$	—	$	—	$	—

	December 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In thousands)
Impaired loans	$	—	$	—	$	525	$	525

For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2015, the significant unobservable inputs used in fair value measurements were as follows:

	As of December 31, 2015
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans	$	525	Appraisal of collateral	Appraisal  adjustments			0%	(0%)
				Liquidation expense	10.0%	to	26.1%	(13.0%)

An impaired loan is measured for impairment at the time the loan is identified as impaired. Loans are considered impaired when based on current information and events it is probable that payments of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The Company’s impaired loans are generally collateral dependent and, as such, are carried at the lower of cost or estimated fair value less estimated selling costs. Fair values are estimated through current appraisals and adjusted as necessary to reflect current market conditions and as such are classified as Level 3.

Disclosure about Fair Value of Financial Instruments

Fair value of a financial instrument is defined above. Significant estimates were used for the purposes of disclosing fair values. Estimated fair values have been determined using the best available data and estimation methodology suitable for each category of financial instruments. However, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

The following presents the carrying amount and the fair value as of September 30, 2016 and December 31, 2015, and placement in the fair value hierarchy of the Company’s financial instruments which are carried on the consolidated statement of financial condition at cost and are not recorded at fair value on a recurring basis. This table excludes financial instruments for which carrying amount approximates fair value, which includes cash and cash equivalents, Federal Home Loan Bank stock, accrued interest receivable, interest and non-interest bearing demand, savings and club deposits, and accrued interest payable.     

	Carrying		Fair		Level 1		Level 2		Level 3
	Amount		Value		Inputs		Inputs		Inputs
	(In thousands)
As of September 30, 2016
Financial assets:
Securities held to maturity	$	44,676	$	45,462	$	-	$	45,462	$	-
Loans receivable (1)		329,230		336,839		-		-		336,839
Financial liabilities:
Certificate of deposits		93,387		94,784		-		94,784		-
Advances from Federal Home Loan Bank of New York		22,675		23,284		-		23,284		-
As of December 31, 2015
Financial assets:
Securities held to maturity	$	78,995	$	78,400	$	-	$	78,400	$	-
Loans receivable (1)		262,312		264,001		-		-		264,001
Financial liabilities:
Certificate of deposits		85,408		86,241		-		86,241		-
Advances from Federal Home Loan Bank of New York		32,675		33,428		-		33,428		-

(1) Includes impaired loans measured at fair value on a non-recurring basis as discussed above.

Methods and assumptions used to estimate fair values of financial instruments previously disclosed are as follows:

Cash and Cash Equivalents

For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value.

Securities Held to Maturity

The fair value for securities held to maturity is based on quoted market prices, where available. If quoted market prices are not available, fair value is estimated using quoted market prices for similar securities.

Loans Receivable

The fair value of loans is based upon a multitude of sources, including assumed current market rates by category and the Company’s current offering rates.  Both fixed and variable rate loan fair values are derived using a discounted cash flow methodology.  For variable rate loans, repricing terms, including next repricing date, repricing frequency and repricing rate are factored into the discounted cash flow formula.

Federal Home Loan Bank of New York Stock

The carrying amount of Federal Home Loan Bank of New York stock approximates fair value since the Company is generally able to redeem this stock at par.

Accrued Interest Receivable and Payable

The carrying amounts of accrued interest receivable and payable approximate fair value due to the short term nature of these instruments.

Deposits

Fair values for demand and savings and club accounts are, by definition, equal to the amount payable on demand at the reporting date. Fair values of fixed-maturity certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar instruments with similar maturities.

Advances from Federal Home Loan Bank of New York

Fair values of advances are estimated using discounted cash flow analyses, based on rates currently available to the Company for advances from the Federal Home Loan Bank of New York with similar terms and remaining maturities.

Off-Balance Sheet Financial Instruments

Fair values of commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account market interest rates, the remaining terms, and the present credit worthiness of the counterparties. As of September 30, 2016 and December 31, 2015, the fair value of the commitments to extend credit was not considered to be material.

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Note 7 - Retirement Plans

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 7 – Retirement Plans

Periodic expenses for the Company’s retirement plans, which include the Directors’ Retirement Plan and the Executive Incentive Retirement Plan, were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In thousands)
Service cost	$	2		$	4		$	9		$	11
Interest cost		16			20			71			59
Curtailment		(46	)		-			(46	)		-
Amortization of unrecognized loss		18			9			25			28
Amortization of past service liability		(4	)		(7	)		(13	)		(21	)
Net periodic benefit cost	$	(14	)	$	26		$	46		$	77

The Company previously disclosed in its Form 10-K for the year ended December 31, 2015 that it expected to contribute $124,000 to the Plan during the current fiscal year.  As of September 30, 2016, the Company contributed $718,000.

The Company decided to terminate the Director Retirement Plan effective September 1, 2016. Full distribution of the plan is expected to take place in 2018. The company previously terminated the Executive Incentive Retirement Plan in 2015 and distributed plan assets in 2016.

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Note 8 - Reclassifications Out of Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Reclassifications [Text Block]

Note 8 – Reclassifications Out of Accumulated Other Comprehensive Income

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)				Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)			Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
	(In thousands)
Amortization of defined benefit pension items:
Prior service costs	$	4		(b)	$	13		Directors compensation
Unrecognized loss		(18	)	(b)		(25	)	Directors compensation
Curtailment		46		(b)		46		Directors compensation
Total before tax		32				34
Income tax expense		(13	)			(14	)
Total reclassifications for the period	$	19			$	20

Details about Accumulated Other Comprehensive  Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)				Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)			Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	(In thousands)
Amortization of defined benefit pension items:
Prior service costs	$	7		(b)	$	21		Directors compensation
Unrecognized loss		(9	)	(b)		(28	)	Directors compensation
		(2	)			(7	)	Total before tax
		1				3		Income tax expense
Total reclassifications for the period	$	(1	)		$	(4	)	Net of tax

(a)	Amounts in parenthesis indicate debits to profit/loss.
(b)	These accumulated other comprehensive components are included in the computation of net periodic pension cost. (See Note 7 for additional details).

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09,

Revenue from Contracts with Customers

(ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09, as modified by ASU 2015-14, ASU 2016-8, ASU 2016-10, and ASU 2016-12, is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of the pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

In January 2016, the FASB issued ASU No. 2016-01,

Financial Instruments - Overall.

The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods 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) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the 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) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

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

Leases (Topic 842)

. This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all leases. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily due to the recognition of lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. The standard is required to be adopted using the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the impact of the pending adoption of ASU 2016-02 on our consolidated financial statements.

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

Improvements to Employee Share-Based Payment Accounting,Compensation – Stock Compensation

(Topic 718). This ASU changes several aspects of the accounting for share-based payment award transactions, including: (1) accounting and cash flow classification for excess tax benefits and deficiencies, (2) forfeitures, and (3) tax withholding requirements and cash flow classification. The standard is effective for public companies for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted for the interim or annual period provided that the entire standard is adopted. If an entity early adopts the standard in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of the pending adoption of ASU 2016-09 on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15: Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in this Update address the following eight specific cash flow issues with the objective of reducing the existing diversity in practice: (1) debt prepayments or debt extinguishment cost (cash outflow-financing), (2) settlement of debt instruments with coupon interest rates insignificant to the effective interest rate, Interest payment (cash outflow-operating), principal payment (cash outflow-financing), (3) contingent consideration payments made soon after business combination (cash outflow-investing), (4) proceeds from settlement of insurance claims (classification on basis of the nature of each loss), (5) proceeds from corporate/bank-owned life insurance, proceeds (cash inflow-investing), payments (cash outflow-investing/operating), (6) distribution received from equity method investees, cumulative earnings approach (cash inflow-investing), nature of distribution approach (cash inflow-operating/investing), (7) beneficial interest in securitization transactions, assets (noncash transaction), cash receipts from trade receivable (cash inflow-investing), (8) separately identifiable cash flows (classified based on source-financing/investing/operating).  The amendments in this Update are effective for public business entities for the fiscal years beginning after December 15, 2017 and interim periods within those fiscal years.  Early adoption is permitted, including adoption in an interim period.  If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.  An entity that elects early adoption must adopt all of the amendments in the same period.   We are currently evaluating the impact of the pending adoption of ASU 2016-15 on our consolidated financial statements.

In September 2016, the FASB issued ASU No. 2016-13,

Measurement of Credit Losses on Financial Instruments

. This ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument. The standard is effective for public companies in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted the interim or annual period provided that the entire standard is adopted. We are currently evaluating the impact of the pending adoption of ASU 2016-13 on our consolidated financial statements.

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Note 3 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

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

	Three Months Ended September 30 ,				Nine Months Ended September 30,
(In Thousands, Except Per Share Data)	2016		2015		2016		2015
Numerator:
Net income	$	301	$	258	$	683	$	441
Denominator:
Weighted average common shares		5,588		5,721		5,692		5,667
Dilutive potential common shares		82		44		76		26
Weighted average fully diluted shares		5,670		5,765		5,768		5,693
Earnings per share:
Basic	$	0.05	$	0.05	$	0.12	$	0.08
Dilutive	$	0.05	$	0.04	$	0.12	$	0.08
Outstanding common stock equivalents having no dilutive effect		-		-		-		-

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Note 4 - Securities Held to Maturity (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
September 30, 2016
U.S. Government agencies:
Due after one year through five years	$	6,500	$	7	$	1	$	6,506
		6,500		7		1		6,506
Mortgage-backed securities		25,129		1,041		5		26,165
Corporate bonds:
Due within one year		2,006		5		1		2,010
Due after one year through five years		2,037		16		13		2,040
Due after five through ten years		1,000		-		40		960
Due after ten years		4,000		-		254		3,746
		9,043		21		308		8,756
State and political subdivisions:
Due within one year		95		1		1		95
Due after one through five years		592		1		1		592
Due after five through ten years		712		13		-		725
		1,399		15		2		1,412
Certificates of deposit:
Due after one year through five years		2,605		18		-		2,623
		2,605		18		-		2,623
	$	44,676	$	1,102	$	316	$	45,462

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
December 31, 2015
U.S. Government agencies:
Due after one year through five years	$	18,000	$	4	$	142	$	17,862
Due after five through ten years		8,500		2		80		8,422
Due thereafter		11,000		-		285		10,715
		37,500		6		507		36,999
Mortgage-backed securities		26,463		405		230		26,638
Corporate bonds:
Due within one year		503		2		-		505
Due after one through five years		4,069		21		4		4,086
Due after five through ten years		1,000		-		10		990
Due thereafter		4,000		-		289		3,711
		9,572		23		303		9,292
State and political subdivisions:
Due within one year		96		-		-		96
Due after one through five years		596		-		2		594
Due after five through ten years		713		5		-		718
		1,405		5		2		1,408
Certificates of deposit:
Due within one year		1,450		-		-		1,450
Due after one through five years		2,605		11		3		2,613
		4,055		11		3		4,063
	$	78,995	$	450	$	1,045	$	78,400

Schedule of Unrealized Loss on Investments [Table Text Block]

	Less than 12 Months				More than 12 Months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In thousands)
September 30, 2016:
U.S. Government agencies	$	1,000	$	1	$	-	$	-	$	1,000	$	1
Mortgage-backed securities		448		5		-		-		448		5
Corporate bonds		1,990		14		4,706		294		6,696		308
State and political subdivisions		247		1		101		1		348		2
	$	3,685	$	21	$	4,807	$	295	$	8,492	$	316

	Less than 12 Months				More than 12 Months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In thousands)
December 31, 2015
U.S. Government agencies	$	9,410	$	89	$	17,083	$	418	$	26,493	$	507
Mortgage-backed securities		12,312		173		2,602		57		14,914		230
Corporate bonds		5,208		300		504		3		5,712		303
State and political subdivisions		515		2		-		-		515		2
Certificates of deposit		932		3		-		-		932		3
	$	28,377	$	567	$	20,189	$	478	$	48,566	$	1,045

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Note 5 - Loans Receivable and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	September 30, 2016			December 31, 2015
	(In thousands)
Residential mortgage:
One-to-four family	$	157,945		$	154,624
Home equity		34,246			35,002
Total residential mortgage loans		192,191			189,626
Commercial and multi-family real estate		103,083			59,642
Construction		16,160			10,895
Commercial and industrial		29,342			10,275
Total commercial loans		148,585			80,812
Total consumer loans		458			493
Loans receivable		341,234			270,931
Loans in process		(7,228	)		(4,600	)
Deferred loan fees		(732	)		(417	)
Allowance for loan losses		(4,044	)		(3,602	)
		(12,004	)		(8,619	)
Loans receivable, net	$	329,230		$	262,312

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

(in thousands)	Residential Mortgage			Commercial and Multi-Family Real Estate		Construction		Commercial and Industrial		Consumer			Unallocated			Total
Three Months Ended September 30, 2016
Allowance for loan losses:
Balance, beginning	$	1,842		$	1,322	$	163	$	314	$	15		$	213		$	3,869
Provisions (credits)		(4	)		61		14		222		1			(114	)		180
Loans charged-off		—			—		—		—		(8	)		—			(8	)
Recoveries		3			—		—		—		—			—			3
Balance, ending	$	1,841		$	1,383	$	177	$	536	$	8		$	99		$	4,044
Nine Months Ended September 30, 2016
Allowance for loan losses:
Balance, beginning	$	1,927		$	1,015	$	143	$	235	$	9		$	273		$	3,602
Provisions (credits)		(38	)		368		34		301		9			(174	)		500
Loans charged-off		(64	)		—		—		—		(11	)		—			(75	)
Recoveries		16			—		—		—		1			—			17
Balance, ending	$	1,841		$	1,383	$	177	$	536	$	8		$	99		$	4,044
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	—		$	—	$	—	$	—	$	—		$	—		$	—
Loans collectively evaluated for impairment		1,841			1,383		177		536		8			99			4,044
Ending Balance	$	1,841		$	1,383	$	177	$	536	$	8		$	99		$	4,044
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	14,705		$	1,232	$	—	$	475	$	—		$	—		$	16,412
Loans collectively evaluated for impairment		177,150			101,572		8,860		28,822		458			—			316,862
Ending Balance	$	191,855		$	102,804	$	8,860	$	29,297	$	458		$	—		$	333,274

(in thousands)	Residential Mortgage			Commercial and Multi-Family Real Estate			Construction			Commercial and Industrial			Consumer		Unallocated			Total
Three Months Ended September 30, 2015
Allowance for loan losses:
Balance, beginning	$	2,005		$	1,007		$	197		$	3688		$	5	$	1		$	3,583
Provisions (credits)		48			4			23			(45	)		6		4			40
Loans charged-off		(46	)		—			—			—			—		—			(46	)
Recoveries		4			—			—			—			—		—			4
Balance, ending	$	2,011		$	1,011		$	220		$	323		$	11	$	5		$	3,581
Nine Months Ended September 30, 2015
Allowance for loan losses:
Balance, beginning	$	2,109		$	885		$	317		$	290		$	6	$	27		$	3,634
Provisions (credits)		(38	)		133			(88	)		33			5		(22	)		23
Loans charged-off		(68	)		(7	)		(21	)		—			—		—			(96	)
Recoveries		8			—			12			—			—		—			20
Balance, ending	$	2,011		$	1,011		$	220		$	323		$	11	$	5		$	3,581
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1		$	—		$	—		$	—		$	6	$	—		$	7
Loans collectively evaluated for impairment		2,010			1,011			220			323			5		5			3,574
Ending Balance	$	2,011		$	1,011		$	220		$	323		$	11	$	5		$	3,581
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	15,205		$	1,554		$	253		$	716		$	6	$	—		$	17,734
Loans collectively evaluated for impairment		169,707			49,361			7,774			10,742			505		—			238,089
Ending Balance	$	184,912		$	50,915		$	8,027		$	11,458		$	511	$	—		$	255,823

Past Due Financing Receivables [Table Text Block]

As of September 30, 2016	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans(1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	1,244	$	2,609	$	232	$	4,085	$	148,987	$	4,551	$	157,623
Home equity		655		29		50		734		33,234		264		34,232
Commercial and multi-family real estate		399		—		—		399		101,565		840		102,804
Construction
One-to-four family owner-occupied		280		—		—		280		5,361		—		5,641
Other		—		—		—		—		3,219		—		3,219
Commercial and industrial		174		—		—		174		28,769		354		29,297
Consumer		3		—		—		3		455		—		458
Total	$	2,755	$	2,638	$	282	$	5,675	$	321,590	$	6,009	$	333,274

As of December 31, 2015	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans (1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	4,187	$	770	$	235	$	5,192	$	145,479	$	3,744	$	154,415
Home equity		50		—		50		100		34,099		803		35,002
Commercial and multi-family real estate		—		—		—		—		58,661		827		59,488
Construction
One-to-four family owner-occupied		—		—		—		—		2,663		—		2,663
Other		—		—		—		—		3,581		—		3,581
Commercial and industrial		—		—		—		—		9,730		542		10,272
Consumer		5		2		—		7		486		—		493
Total	$	4,242	$	772	$	285	$	5,299	$	254,699	$	5,916	$	265,914

Impaired Financing Receivables [Table Text Block]

September 30, 2016 (In thousands)	Recorded Investment		Loans with No Related Reserve		Loans with Related Reserve		Related Reserve		Contractual Principal Balance		Average Recorded Investment
Residential mortgage
One-to-four family	$	13,207	$	13,207	$	-	$	-	$	13,560	$	12,867
Home equity		1,498		1,498		-		-		1,588		2,148
Commercial and multi-family real estate		1,232		1,232		-		-		1,979		1,215
Construction		-		-		-		-		-		-
Commercial and industrial		475		475		-		-		920		557
Consumer		-		-		-		-		-		1
Total	$	16,412	$	16,412	$	-	$	-	$	18,047	$	16,788

December 31, 2015 (In thousands)	Recorded Investment		Loans with No Related Reserve		Loans with Related Reserve		Related Reserve		Contractual Principal Balance		Average Recorded Investment
Residential mortgage
One-to-four family	$	12,991	$	12,895	$	96	$	3	$	13,703	$	14,109
Home equity		2,261		2,261		-		-		2,353		1,360
Commercial and multi-family real estate		1,226		1,226		-		-		1,780		1,671
Construction
One-to-four family owner- occupied		-		-		-		-		-		-
Other		-		-		-		-		-		376
Commercial and industrial		655		655		-		-		1,251		708
Consumer		-		-		-		-		-		1
Total	$	17,133	$	17,037	$	96	$	3	$	19,087	$	18,225

Financing Receivable Credit Quality Indicators [Table Text Block]

As of September 30, 2016	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	101,191	$	399	$	1,214	$	—	$	—	$	102,804
Construction
One-to-four family owner-occupied		5,641		—		—		—		—		5,641
Other		3,219		—		—		—		—		3,219
Commercial and industrial		28,671		88		538		—		—		29,297
Total	$	138,722	$	487	$	1,752	$	—	$	—	$	140,961

As of December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	57,863	$	425	$	1,200	$	—	$	—	$	59,488
Construction
One-to-four family owner-occupied		2,663		—		—		—		—		2,663
Other		3,581		—		—		—		—		3,581
Commercial and industrial		9,480		94		698		—		—		10,272
Total	$	73,587	$	519	$	1,898	$	—	$	—	$	76,004

Schedule of Financing Receivables Performance Status [Table Text Block]

	Residential mortgage				Consumer				Total Residential and Consumer
	Sep . 30, 2016		Dec. 31, 2015		Sep . 30, 2016		Dec. 31, 2015		Sep . 30, 2016		Dec. 31, 2015
	(In thousands)
Nonperforming	$	5,097	$	4,832	$	—	$	—	$	5,097	$	4,832
Performing		186,758		184,585		458		493		187,216		185,078
Total	$	191,855	$	189,417	$	458	$	493	$	192,313	$	189,910

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Note 6 - Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Fair Value Measurements, Nonrecurring [Table Text Block]

	September 30, 2016
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In thousands)
Impaired loans	$	—	$	—	$	—	$	—

	December 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(In thousands)
Impaired loans	$	—	$	—	$	525	$	525

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

	As of December 31, 2015
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans	$	525	Appraisal of collateral	Appraisal  adjustments			0%	(0%)
				Liquidation expense	10.0%	to	26.1%	(13.0%)

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

	Carrying		Fair		Level 1		Level 2		Level 3
	Amount		Value		Inputs		Inputs		Inputs
	(In thousands)
As of September 30, 2016
Financial assets:
Securities held to maturity	$	44,676	$	45,462	$	-	$	45,462	$	-
Loans receivable (1)		329,230		336,839		-		-		336,839
Financial liabilities:
Certificate of deposits		93,387		94,784		-		94,784		-
Advances from Federal Home Loan Bank of New York		22,675		23,284		-		23,284		-
As of December 31, 2015
Financial assets:
Securities held to maturity	$	78,995	$	78,400	$	-	$	78,400	$	-
Loans receivable (1)		262,312		264,001		-		-		264,001
Financial liabilities:
Certificate of deposits		85,408		86,241		-		86,241		-
Advances from Federal Home Loan Bank of New York		32,675		33,428		-		33,428		-

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Note 7 - Retirement Plans (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In thousands)
Service cost	$	2		$	4		$	9		$	11
Interest cost		16			20			71			59
Curtailment		(46	)		-			(46	)		-
Amortization of unrecognized loss		18			9			25			28
Amortization of past service liability		(4	)		(7	)		(13	)		(21	)
Net periodic benefit cost	$	(14	)	$	26		$	46		$	77

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Note 8 - Reclassifications Out of Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)				Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)			Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
	(In thousands)
Amortization of defined benefit pension items:
Prior service costs	$	4		(b)	$	13		Directors compensation
Unrecognized loss		(18	)	(b)		(25	)	Directors compensation
Curtailment		46		(b)		46		Directors compensation
Total before tax		32				34
Income tax expense		(13	)			(14	)
Total reclassifications for the period	$	19			$	20

Details about Accumulated Other Comprehensive  Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)				Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)			Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	(In thousands)
Amortization of defined benefit pension items:
Prior service costs	$	7		(b)	$	21		Directors compensation
Unrecognized loss		(9	)	(b)		(28	)	Directors compensation
		(2	)			(7	)	Total before tax
		1				3		Income tax expense
Total reclassifications for the period	$	(1	)		$	(4	)	Net of tax

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Note 1 - Organization and Business (Details Textual) $ / shares in Units, $ in Thousands		9 Months Ended
	Jul. 16, 2015 USD ($) $ / shares shares	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Employee Stock Ownership Plan [Member]
Stock Issued During Period, Shares, Employee Stock Ownership Plan	150,663
Successor [Member]
Stock Issued During Period, Shares, New Issues	2,187,242
Common Stock Conversion Ratio	1.1397
Stock Issued During Period, Shares, New Issues	3,766,592
Share Price | $ / shares	$ 10
Proceeds from Issuance of Common Stock | $	$ 37,700		$ 34,799
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $	$ 1,500

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Note 3 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 301	$ 258	$ 683	$ 441
Weighted average common shares (in shares)	5,588	5,721	5,692	5,667
Dilutive potential common shares (in shares)	82	44	76	26
Weighted average fully diluted shares (in shares)	5,670	5,765	5,768	5,693
Basic (in dollars per share)	$ 0.05	$ 0.05	$ 0.12	$ 0.08
Dilutive (in dollars per share)	$ 0.05	$ 0.04	$ 0.12	$ 0.08
Outstanding common stock equivalents having no dilutive effect (in shares)

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Note 4 - Securities Held to Maturity (Details Textual)	9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
US Government Agencies Debt Securities [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1		19
Mortgage Backed Securities [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1		15
Corporate Debt Securities [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	6		5
US States and Political Subdivisions Debt Securities [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	3		4
Certificates of Deposit [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions			4
Proceeds from Sale of Held-to-maturity Securities	$ 0	$ 0
Held-to-maturity Securities Pledged as Collateral	$ 1,000,000		$ 997,800

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Note 4 - Securities Held to Maturity - Held-to-maturity Securities by Contractual Maturity (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
US Government Agencies Debt Securities [Member]
Amortized cost, due after one year to five years	$ 6,500,000	$ 18,000,000
Gross unrealized gains, due after one year to five years	7,000	4,000
Gross unrealized losses, due after one year to five years	1,000	142,000
Estimated fair value, due after one year to five years	6,506,000	17,862,000
Amortized cost	6,500,000	37,500,000
Gross unrealized gains	7,000	6,000
Gross unrealized losses	1,000	507,000
Estimated fair value	6,506,000	36,999,000
Amortized cost, due after five through ten years		8,500,000
Gross unrealized gains, due after five through ten years		2,000
Gross unrealized losses, due after five through ten years		80,000
Estimated fair value, due after five through ten years		8,422,000
Amortized cost, due thereafter		11,000,000
Gross unrealized losses, due thereafter		285,000
Estimated fair value, due thereafter		10,715,000
Gross unrealized gains, due thereafter
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized cost, securities held to maturity	25,129,000	26,463,000
Gross unrealized gains, securities held to maturity	1,041,000	405,000
Gross unrealized losses, securities held to maturity	5,000	230,000
Estimated fair value, securities held to maturity	26,165,000	26,638,000
Corporate Debt Securities [Member]
Amortized cost, due after one year to five years	2,037,000	4,069,000
Gross unrealized gains, due after one year to five years	16,000	21,000
Gross unrealized losses, due after one year to five years	13,000	4,000
Estimated fair value, due after one year to five years	2,040,000	4,086,000
Amortized cost	9,043,000	9,572,000
Gross unrealized gains	21,000	23,000
Gross unrealized losses	308,000	303,000
Estimated fair value	8,756,000	9,292,000
Amortized cost, due within one year	2,006,000	503,000
Gross unrealized gains, due within one year	5,000	2,000
Gross unrealized losses, due within one year	1,000
Estimated fair value, due within one year	2,010,000	505,000
Amortized cost, due after five through ten years	1,000,000	1,000,000
Gross unrealized gains, due after five through ten years
Gross unrealized losses, due after five through ten years	40,000	10,000
Estimated fair value, due after five through ten years	960,000	990,000
Amortized cost, due thereafter	4,000,000	4,000,000
Gross unrealized gains, due thereafter
Gross unrealized losses, due thereafter	254,000	289
Estimated fair value, due thereafter	3,746,000	3,711,000
US States and Political Subdivisions Debt Securities [Member]
Amortized cost, due after one year to five years	592,000	596,000
Gross unrealized gains, due after one year to five years	1,000
Gross unrealized losses, due after one year to five years	1,000	2,000
Estimated fair value, due after one year to five years	592,000	594,000
Amortized cost	1,399,000	1,405,000
Gross unrealized gains	15,000	5,000
Gross unrealized losses	2,000	2,000
Estimated fair value	1,412,000	1,408,000
Amortized cost, due within one year	95,000	96,000
Gross unrealized gains, due within one year	1,000
Gross unrealized losses, due within one year	1,000
Estimated fair value, due within one year	95,000	96,000
Amortized cost, due after five through ten years	712,000	713,000
Gross unrealized gains, due after five through ten years	13,000	5,000
Gross unrealized losses, due after five through ten years
Estimated fair value, due after five through ten years	725,000	718,000
Certificates of Deposit [Member]
Amortized cost, due after one year to five years	2,605,000	2,605,000
Gross unrealized gains, due after one year to five years	18,000	11,000
Gross unrealized losses, due after one year to five years		3,000
Estimated fair value, due after one year to five years	2,623,000	2,613,000
Amortized cost	2,605,000	4,055,000
Gross unrealized gains	18,000	11,000
Gross unrealized losses		3,000
Estimated fair value	2,623,000	4,063,000
Amortized cost, due within one year		1,450,000
Gross unrealized gains, due within one year
Gross unrealized losses, due within one year
Estimated fair value, due within one year		1,450,000
Amortized cost	44,676,000	78,995,000
Gross unrealized gains	1,102,000	450,000
Gross unrealized losses	316,000	1,045,000
Estimated fair value	$ 45,462,000	$ 78,400,000

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Note 4 - Securities Held to Maturity - Held-to-maturity Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
US Government Agencies Debt Securities [Member]
Securities in an unrealized loss position, less than 12 months, fair value	$ 1,000	$ 9,410
Securities in an unrealized loss position, less than 12 months, gross unrealized losses	1	89
Securities in an unrealized loss position, more than 12 months, fair value		17,083
Securities in an unrealized loss position, more than 12 months, gross unrealized losses		418
Securities in an unrealized loss position, fair value	1,000	26,493
Securities in an unrealized loss position, gross unrealized losses	1	507
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities in an unrealized loss position, less than 12 months, fair value	448	12,312
Securities in an unrealized loss position, less than 12 months, gross unrealized losses	5	173
Securities in an unrealized loss position, more than 12 months, fair value		2,602
Securities in an unrealized loss position, more than 12 months, gross unrealized losses		57
Securities in an unrealized loss position, fair value	448	14,914
Securities in an unrealized loss position, gross unrealized losses	5	230
Corporate Debt Securities [Member]
Securities in an unrealized loss position, less than 12 months, fair value	1,990	5,208
Securities in an unrealized loss position, less than 12 months, gross unrealized losses	14	300
Securities in an unrealized loss position, more than 12 months, fair value	4,706	504
Securities in an unrealized loss position, more than 12 months, gross unrealized losses	294	3
Securities in an unrealized loss position, fair value	6,696	5,712
Securities in an unrealized loss position, gross unrealized losses	308	303
US States and Political Subdivisions Debt Securities [Member]
Securities in an unrealized loss position, less than 12 months, fair value	247	515
Securities in an unrealized loss position, less than 12 months, gross unrealized losses	1	2
Securities in an unrealized loss position, more than 12 months, fair value	101
Securities in an unrealized loss position, more than 12 months, gross unrealized losses	1
Securities in an unrealized loss position, fair value	348	515
Securities in an unrealized loss position, gross unrealized losses	2	2
Certificates of Deposit [Member]
Securities in an unrealized loss position, less than 12 months, fair value		932
Securities in an unrealized loss position, less than 12 months, gross unrealized losses		3
Securities in an unrealized loss position, more than 12 months, fair value
Securities in an unrealized loss position, more than 12 months, gross unrealized losses
Securities in an unrealized loss position, fair value		932
Securities in an unrealized loss position, gross unrealized losses		3
Securities in an unrealized loss position, less than 12 months, fair value	3,685	28,377
Securities in an unrealized loss position, less than 12 months, gross unrealized losses	21	567
Securities in an unrealized loss position, more than 12 months, fair value	4,807	20,189
Securities in an unrealized loss position, more than 12 months, gross unrealized losses	295	478
Securities in an unrealized loss position, fair value	8,492	48,566
Securities in an unrealized loss position, gross unrealized losses	$ 316	$ 1,045

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Note 5 - Loans Receivable and Allowance for Credit Losses (Details Textual)	3 Months Ended			9 Months Ended			12 Months Ended
	Sep. 30, 2016 USD ($)		Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)		Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Residential Portfolio Segment [Member] | Home Equity Loan [Member]
Financing Receivable, Modifications, Number of Contracts						1
Financing Receivable, Modifications, Post-Modification Recorded Investment						$ 167,000
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 264,000	[1]		$ 264,000	[1]		$ 803,000	[2]
Impaired Financing Receivable, Average Recorded Investment				$ 2,148,000			1,360,000
Financing Receivable, Modifications, Pre-Modification Recorded Investment						$ 167,000
Financing Receivable, Modifications, Amortization Period after Interest Only Period				15 years
Residential Portfolio Segment [Member] | Residential Mortgage One-to-four Family [Member]
Financing Receivable, Modifications, Number of Contracts						1
Financing Receivable, Modifications, Post-Modification Recorded Investment						$ 237,000
Financing Receivable, Modifications, Pre-Modification Recorded Investment						$ 237,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	4,897,000			$ 4,897,000			2,695,000
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	903,000			903,000			917,000
Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	209,000			209,000			1,618,000
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status							685,000
Performing Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment	9,300,000			9,300,000			11,000,000
Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment	$ 1,800,000			$ 1,800,000			4,100,000
Financing Receivable, Modifications, Number of Contracts	0		0	0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0	0		0
Real Estate Acquired Through Foreclosure	$ 0			$ 0			0
Financing Receivable, Recorded Investment, Nonaccrual Status	6,009,000	[1]		6,009,000	[1]		5,916,000	[2]
Financing Receivable, Modifications, Recorded Investment	11,100,000			11,100,000			15,100,000
Impaired Financing Receivable, Interest Income, Accrual Method	45,000		$ 188,000	363,000		$ 573,000
Impaired Financing Receivable, Average Recorded Investment	16,700,000		$ 18,200,000	$ 16,788,000		$ 18,500,000	18,225,000
Financing Receivable, Modification, Period of Lower Interest				1 year
Mortgage Loans in Process of Foreclosure, Amount	$ 2,900,000			$ 2,900,000			$ 1,800,000

[1] Nonaccrual loans at September 30, 2016, included $4,897,000 that were 90 days or more delinquent, $903,000 that were 60-89 days delinquent, none that were 30-59 days delinquent, and $209,000 that were current or less than 30 days delinquent.

[2] Nonaccrual loans at December 31, 2015, included $2,695,000 that were 90 days or more delinquent, $917,000 that were 60-89 days delinquent, $685,000 that were 30-59 days delinquent, and $1,618,000 that were current or less than 30 days delinquent.

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Note 5 - Loans Receivable and Allowance for Credit Losses - Composition of Total Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Residential Portfolio Segment [Member] | One-to-Four Family [Member]
Loans receivable	$ 157,945	$ 154,624
Residential Portfolio Segment [Member] | Home Equity Loan [Member]
Loans receivable	34,246	35,002
Residential Portfolio Segment [Member]
Loans receivable	192,191	189,626
Commercial and Multi-Family Real Estate Portfolio Segment [Member]
Loans receivable	103,083	59,642
Construction Portfolio Segment [Member]
Loans receivable	16,160	10,895
Commercial and Industrial Portfolio Segment [Member]
Loans receivable	29,342	10,275
Commercial Portfolio Segment [Member]
Loans receivable	148,585	80,812
Consumer Portfolio Segment [Member]
Loans receivable	458	493
Loans receivable	341,234	270,931
Loans in process	(7,228)	(4,600)
Deferred loan fees	(732)	(417)
Allowance for loan losses	(4,044)	(3,602)
Total adjustment	(12,004)	(8,619)
Loans receivable, net	$ 329,230	$ 262,312

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Note 5 - Loans Receivable and Allowance for Credit Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Residential Portfolio Segment [Member]
Balance, beginning	$ 1,842	$ 2,005	$ 1,927	$ 2,109
Provisions (credits)	(4)	48	(38)	(38)
Loans charged-off		(46)	(64)	(68)
Recoveries	3	4	16	8
Balance, ending	1,841	2,011	1,841	2,011
Loans individually evaluated for impairment		1		1
Loans collectively evaluated for impairment	1,841	2,010	1,841	2,010
Loans individually evaluated for impairment	14,705	15,205	14,705	15,205
Loans collectively evaluated for impairment	177,150	169,707	177,150	169,707
Ending Balance	191,855	184,912	191,855	184,912
Commercial and Multi-Family Real Estate Portfolio Segment [Member]
Balance, beginning	1,322	1,007	1,015	885
Provisions (credits)	61	4	368	133
Loans charged-off				(7)
Recoveries
Balance, ending	1,383	1,011	1,383	1,011
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	1,383	1,011	1,383	1,011
Loans individually evaluated for impairment	1,232	1,554	1,232	1,554
Loans collectively evaluated for impairment	101,572	49,361	101,572	49,361
Ending Balance	102,804	50,915	102,804	50,915
Construction Portfolio Segment [Member]
Balance, beginning	163	197	143	317
Provisions (credits)	14	23	34	(88)
Loans charged-off				(21)
Recoveries				12
Balance, ending	177	220	177	220
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	177	220	177	220
Loans individually evaluated for impairment		253		253
Loans collectively evaluated for impairment	8,860	7,774	8,860	7,774
Ending Balance	8,860	8,027	8,860	8,027
Commercial and Industrial Portfolio Segment [Member]
Balance, beginning	314	3,688	235	290
Provisions (credits)	222	(45)	301	33
Loans charged-off
Recoveries
Balance, ending	536	323	536	323
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	536	323	536	323
Loans individually evaluated for impairment	475	716	475	716
Loans collectively evaluated for impairment	28,822	10,742	28,822	10,742
Ending Balance	29,297	11,458	29,297	11,458
Consumer Portfolio Segment [Member]
Balance, beginning	15	5	9	6
Provisions (credits)	1	6	9	5
Loans charged-off	(8)		(11)
Recoveries			1
Balance, ending	8	11	8	11
Loans individually evaluated for impairment		6		6
Loans collectively evaluated for impairment	8	5	8	5
Loans individually evaluated for impairment		6		6
Loans collectively evaluated for impairment	458	505	458	505
Ending Balance	458	511	458	511
Unallocated Financing Receivables [Member]
Balance, beginning	213	1	273	27
Provisions (credits)	(114)	4	(174)	(22)
Loans charged-off
Recoveries
Balance, ending	99	5	99	5
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	99	5	99	5
Loans individually evaluated for impairment
Loans collectively evaluated for impairment
Ending Balance
Balance, beginning	3,869	3,583	3,602	3,634
Provisions (credits)	180	40	500	23
Loans charged-off	(8)	(46)	(75)	(96)
Recoveries	3	4	17	20
Balance, ending	4,044	3,581	4,044	3,581
Loans individually evaluated for impairment		7		7
Loans collectively evaluated for impairment	4,044	3,574	4,044	3,574
Loans individually evaluated for impairment	16,412	17,734	16,412	17,734
Loans collectively evaluated for impairment	316,862	238,089	316,862	238,089
Ending Balance	$ 333,274	$ 255,823	$ 333,274	$ 255,823

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Note 5 - Loans Receivable and Allowance for Credit Losses - Past Due Financing Receivables (Details) - USD ($)	Sep. 30, 2016		Dec. 31, 2015		Sep. 30, 2015
Residential Portfolio Segment [Member] | One-to-Four Family [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	$ 1,244,000		$ 4,187,000
Residential Portfolio Segment [Member] | One-to-Four Family [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due	2,609,000		770,000
Residential Portfolio Segment [Member] | One-to-Four Family [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due	232,000		235,000
Residential Portfolio Segment [Member] | One-to-Four Family [Member]
Loans receivable, past due	4,085,000		5,192,000
Current	148,987,000		145,479,000
Financing Receivable, Recorded Investment, Nonaccrual Status	4,551,000	[1]	3,744,000	[2]
Total Loans Receivables	157,623,000		154,415,000
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	655,000		50,000
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due	29,000
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due	50,000		50,000
Residential Portfolio Segment [Member] | Home Equity Loan [Member]
Loans receivable, past due	734,000		100,000
Current	33,234,000		34,099,000
Financing Receivable, Recorded Investment, Nonaccrual Status	264,000	[1]	803,000	[2]
Total Loans Receivables	34,232,000		35,002,000
Residential Portfolio Segment [Member]
Total Loans Receivables	191,855,000		189,417,000		$ 184,912,000
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	399,000
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due
Commercial and Multi-Family Real Estate Portfolio Segment [Member]
Loans receivable, past due	399,000
Current	101,565,000		58,661,000
Financing Receivable, Recorded Investment, Nonaccrual Status	840,000	[1]	827,000	[2]
Total Loans Receivables	102,804,000		59,488,000		50,915,000
Construction Portfolio Segment [Member] | One-to-Four Family Occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	280,000
Construction Portfolio Segment [Member] | One-to-Four Family Occupied [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due
Construction Portfolio Segment [Member] | One-to-Four Family Occupied [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due
Construction Portfolio Segment [Member] | One-to-Four Family Occupied [Member]
Loans receivable, past due	280,000
Current	5,361,000		2,663,000
Financing Receivable, Recorded Investment, Nonaccrual Status		[1]		[2]
Total Loans Receivables	5,641,000		2,663,000
Construction Portfolio Segment [Member] | Other Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due
Construction Portfolio Segment [Member] | Other Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due
Construction Portfolio Segment [Member] | Other Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due
Construction Portfolio Segment [Member] | Other Loans [Member]
Loans receivable, past due
Current	3,219,000		3,581,000
Financing Receivable, Recorded Investment, Nonaccrual Status		[1]		[2]
Total Loans Receivables	3,219,000		3,581,000
Construction Portfolio Segment [Member]
Total Loans Receivables	8,860,000				8,027,000
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	174,000
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due
Commercial and Industrial Portfolio Segment [Member]
Loans receivable, past due	174,000
Current	28,769,000		9,730,000
Financing Receivable, Recorded Investment, Nonaccrual Status	354,000	[1]	542,000	[2]
Total Loans Receivables	29,297,000		10,272,000		11,458,000
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	3,000		5,000
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due			2,000
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due
Consumer Portfolio Segment [Member]
Loans receivable, past due	3,000		7,000
Current	455,000		486,000
Financing Receivable, Recorded Investment, Nonaccrual Status		[1]		[2]
Total Loans Receivables	458,000		493,000		511,000
Financing Receivables, 30 to 59 Days Past Due [Member]
Loans receivable, past due	2,755,000		4,242,000
Financing Receivable, Recorded Investment, Nonaccrual Status			685,000
Financing Receivables, 60 to 89 Days Past Due [Member]
Loans receivable, past due	2,638,000		772,000
Financing Receivable, Recorded Investment, Nonaccrual Status	903,000		917,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans receivable, past due	282,000		285,000
Financing Receivable, Recorded Investment, Nonaccrual Status	4,897,000		2,695,000
Loans receivable, past due	5,675,000		5,299,000
Current	321,590,000		254,699,000
Financing Receivable, Recorded Investment, Nonaccrual Status	6,009,000	[1]	5,916,000	[2]
Total Loans Receivables	$ 333,274,000		$ 265,914,000		$ 255,823,000

[1] Nonaccrual loans at September 30, 2016, included $4,897,000 that were 90 days or more delinquent, $903,000 that were 60-89 days delinquent, none that were 30-59 days delinquent, and $209,000 that were current or less than 30 days delinquent.

[2] Nonaccrual loans at December 31, 2015, included $2,695,000 that were 90 days or more delinquent, $917,000 that were 60-89 days delinquent, $685,000 that were 30-59 days delinquent, and $1,618,000 that were current or less than 30 days delinquent.

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Note 5 - Loans Receivable and Allowance for Credit Losses - Impaired Loans by Class (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Residential Portfolio Segment [Member] | One-to-Four Family [Member]
Recorded Investment	$ 13,207,000		$ 13,207,000		$ 12,991,000
Loans with no related reserve	13,207,000		13,207,000		12,895,000
Loans with related reserve					96,000
Related reserve					3,000
Contractual principal balance	13,560,000		13,560,000		13,703,000
Impaired Financing Receivable, Average Recorded Investment			12,867,000		14,109,000
Residential Portfolio Segment [Member] | Home Equity Loan [Member]
Recorded Investment	1,498,000		1,498,000		2,261,000
Loans with no related reserve	1,498,000		1,498,000		2,261,000
Loans with related reserve
Related reserve
Contractual principal balance	1,588,000		1,588,000		2,353,000
Impaired Financing Receivable, Average Recorded Investment			2,148,000		1,360,000
Residential Portfolio Segment [Member] | Commercial and Multi-Family Real Estate Portfolio Segment [Member]
Recorded Investment	1,232,000		1,232,000		1,226,000
Loans with no related reserve	1,232,000		1,232,000		1,226,000
Loans with related reserve
Related reserve
Contractual principal balance	1,979,000		1,979,000		1,780,000
Impaired Financing Receivable, Average Recorded Investment			1,215,000		1,671,000
Commercial and Industrial Portfolio Segment [Member]
Recorded Investment	475,000		475,000		655,000
Loans with no related reserve	475,000		475,000		655,000
Loans with related reserve
Related reserve
Contractual principal balance	920,000		920,000		1,251,000
Impaired Financing Receivable, Average Recorded Investment			557,000		708,000
Construction [Member] | One-to-Four Family Occupied [Member]
Recorded Investment
Loans with no related reserve
Loans with related reserve
Related reserve
Contractual principal balance
Impaired Financing Receivable, Average Recorded Investment
Construction [Member] | Other Loans [Member]
Recorded Investment
Loans with no related reserve
Loans with related reserve
Related reserve
Contractual principal balance
Impaired Financing Receivable, Average Recorded Investment					376,000
Consumer Portfolio Segment [Member]
Recorded Investment
Loans with no related reserve
Loans with related reserve
Related reserve
Contractual principal balance
Impaired Financing Receivable, Average Recorded Investment			1,000		1,000
Recorded Investment	16,412,000		16,412,000		17,133,000
Loans with no related reserve	16,412,000		16,412,000		17,037,000
Loans with related reserve					96,000
Related reserve					3,000
Contractual principal balance	18,047,000		18,047,000		19,087,000
Impaired Financing Receivable, Average Recorded Investment	$ 16,700,000	$ 18,200,000	$ 16,788,000	$ 18,500,000	$ 18,225,000

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Note 5 - Loans Receivable and Allowance for Credit Losses - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Pass [Member]
Loans receivable	$ 101,191	$ 57,863
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Special Mention [Member]
Loans receivable	399	425
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Substandard [Member]
Loans receivable	1,214	1,200
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Doubtful [Member]
Loans receivable
Commercial and Multi-Family Real Estate Portfolio Segment [Member] | Loss [Member]
Loans receivable
Commercial and Multi-Family Real Estate Portfolio Segment [Member]
Loans receivable	102,804	59,488
Construction [Member] | Pass [Member] | One-to-Four Family Occupied [Member]
Loans receivable	5,641	2,663
Construction [Member] | Pass [Member] | Other Loans [Member]
Loans receivable	3,219	3,581
Construction [Member] | Special Mention [Member] | One-to-Four Family Occupied [Member]
Loans receivable
Construction [Member] | Special Mention [Member] | Other Loans [Member]
Loans receivable
Construction [Member] | Substandard [Member] | One-to-Four Family Occupied [Member]
Loans receivable
Construction [Member] | Substandard [Member] | Other Loans [Member]
Loans receivable
Construction [Member] | Doubtful [Member] | One-to-Four Family Occupied [Member]
Loans receivable
Construction [Member] | Doubtful [Member] | Other Loans [Member]
Loans receivable
Construction [Member] | Loss [Member] | One-to-Four Family Occupied [Member]
Loans receivable
Construction [Member] | Loss [Member] | Other Loans [Member]
Loans receivable
Construction [Member] | One-to-Four Family Occupied [Member]
Loans receivable	5,641	2,663
Construction [Member] | Other Loans [Member]
Loans receivable	3,219	3,581
Commercial and Industrial Portfolio Segment [Member] | Pass [Member]
Loans receivable	28,671	9,480
Commercial and Industrial Portfolio Segment [Member] | Special Mention [Member]
Loans receivable	88	94
Commercial and Industrial Portfolio Segment [Member] | Substandard [Member]
Loans receivable	538	698
Commercial and Industrial Portfolio Segment [Member] | Doubtful [Member]
Loans receivable
Commercial and Industrial Portfolio Segment [Member] | Loss [Member]
Loans receivable
Commercial and Industrial Portfolio Segment [Member]
Loans receivable	29,297	10,272
Pass [Member]
Loans receivable	138,722	73,587
Special Mention [Member]
Loans receivable	487	519
Substandard [Member]
Loans receivable	1,752	1,898
Doubtful [Member]
Loans receivable
Loss [Member]
Loans receivable
Loans receivable	$ 140,961	$ 76,004

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Note 5 - Loans Receivable and Allowance for Credit Losses - Impaired Financing Receivable Performance Status (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member]
Total Loans Receivables	$ 5,097	$ 4,832
Nonperforming Financial Instruments [Member] | Consumer Portfolio Segment [Member]
Total Loans Receivables
Nonperforming Financial Instruments [Member] | Total Residential and Consumer [Member]
Total Loans Receivables	5,097	4,832
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member]
Total Loans Receivables	186,758	184,585
Performing Financial Instruments [Member] | Consumer Portfolio Segment [Member]
Total Loans Receivables	458	493
Performing Financial Instruments [Member] | Total Residential and Consumer [Member]
Total Loans Receivables	187,216	185,078
Residential Portfolio Segment [Member]
Total Loans Receivables	191,855	189,417	$ 184,912
Consumer Portfolio Segment [Member]
Total Loans Receivables	458	493	511
Total Residential and Consumer [Member]
Total Loans Receivables	192,313	189,910
Total Loans Receivables	$ 333,274	$ 265,914	$ 255,823

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Note 6 - Fair Value Measurements (Details Textual) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets, Fair Value Disclosure, Recurring	$ 0	$ 0

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Note 6 - Fair Value Measurements - Fair Value Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans		525
Impaired loans		$ 525

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Note 6 - Fair Value Measurements - Additional Qualitative Information About Level 3 Assets (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Appraisal Adjustments [Member] | Weighted Average [Member]
Unobservable Input	0.00%
Appraisal Adjustments [Member]
Fair Value Estimate	$ 525
Unobservable Input	0.00%
Liquidation Expenses [Member] | Weighted Average [Member]
Unobservable Input	13.00%
Liquidation Expenses [Member] | Minimum [Member]
Unobservable Input	10.00%
Liquidation Expenses [Member] | Maximum [Member]
Unobservable Input	26.10%
Valuation Techniques	Appraisal of collateral

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Note 6 - Fair Value Measurements - Fair Value, Assets and Liabilities (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Reported Value Measurement [Member]
Estimated fair value		$ 44,676	$ 78,995
Loans receivable (1)	[1]	329,230	262,312
Certificate of deposits		93,387	85,408
Advances from Federal Home Loan Bank of New York		22,675	32,675
Estimate of Fair Value Measurement [Member]
Estimated fair value		45,462	78,400
Loans receivable (1)	[1]	336,839	264,001
Certificate of deposits		94,784	86,241
Advances from Federal Home Loan Bank of New York		23,284	33,428
Fair Value, Inputs, Level 1 [Member]
Estimated fair value
Loans receivable (1)	[1]
Certificate of deposits
Advances from Federal Home Loan Bank of New York
Fair Value, Inputs, Level 2 [Member]
Estimated fair value		45,462	78,400
Loans receivable (1)	[1]
Certificate of deposits		94,784	86,241
Advances from Federal Home Loan Bank of New York		23,284	33,428
Fair Value, Inputs, Level 3 [Member]
Estimated fair value
Loans receivable (1)	[1]	336,839	264,001
Certificate of deposits
Advances from Federal Home Loan Bank of New York
Estimated fair value		$ 45,462	$ 78,400

[1] Includes impaired loans measured at fair value on a non-recurring basis as discussed above.

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Note 7 - Retirement Plans (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	$ 718,000	$ 124,000

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Note 7 - Retirement Plans - Net Periodic Pension Cost (Details) - Directors Retirement Plan [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Service cost	$ (2,000)	$ (4,000)	$ (9,000)	$ (11,000)
Interest cost	16,000	20,000	71,000	59,000
Curtailment	(46,000)	0	(46,000)	0
Amortization of unrecognized loss	18,000	9,000	25,000	28,000
Amortization of past service liability	(4,000)	(7,000)	(13,000)	(21,000)
Net periodic benefit cost	$ (14,000)	$ 26,000	$ 46,000	$ 77,000

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Note 8 - Reclassifications out of Accumulated Other Comprehensive Income - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2016	[1]	Sep. 30, 2015	[1]	Sep. 30, 2016	Sep. 30, 2015
Prior service costs	$ 4	[2]	$ 7	[2]	$ 13	$ 21
Unrecognized loss	(18)	[2]	(9)	[2]	(25)	(28)
Curtailment	46	[2]			46
Total before tax	32		(2)		34	(7)
Income tax expense	(13)		1		(14)	3
Total reclassifications for the period	$ 19		$ (1)		$ 20	$ (4)

[1] Amounts in parenthesis indicate debits to profit/loss.

[2] These accumulated other comprehensive components are included in the computation of net periodic pension cost. (See Note 7 for additional details).