10-Q

Table Of Contents

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2016

OR

[   ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______________ to _______________

Commission File No. 333-204842

New Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	47-4314938
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
45 North Whittaker Street, New Buffalo, Michigan	49117
(Address of Principal Executive Offices)	(Zip Code)

(269) 469-2222

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

YES [X]     NO [   ]

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

YES [X]     NO [   ]

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

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

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

YES [   ]     NO [X]

As of August 12, 2016, the latest practicable date, 696,600 shares of the Registrant’s common stock, par value $0.01 per share, were issued and outstanding.

New Bancorp, Inc.

Form 10-Q 

Index 

		Page
Part I. Financial Information
Item 1.	Condensed Financial Statements
	Condensed Balance Sheets	2
	Condensed Statements of Operations	3
	Condensed Statements of Comprehensive Income (Loss)	4
	Condensed Statements of Changes in Shareholders’ Equity	5
	Condensed Statements of Cash Flows	6
	Notes to Condensed Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	36
Item 4.	Controls and Procedures	36
Part II. Other Information
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	37
	Signature Pages	38

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Part I. – Financial Information

Item 1. Financial Statements

New Bancorp, Inc.

Condensed Consolidated Balance Sheets

June 30, 2016 (Unaudited) and December 31, 2015

(In thousands, except share data)

 

	June 30, 2016			December 31, 2015
Assets
Cash and due from banks	$	1,763		$	7,132
Interest-earning demand deposits		1,645			1,678
Federal funds sold		5,817			-
Cash and cash equivalents		9,225			8,810
Interest-earning time deposits in banks		992			992
Loans held for sale		370			-
Loans, net of allowance for loan losses of $1,196 and $1,155 at June 30, 2016 and December 31, 2015		76,369			76,575
Premises and equipment		2,004			2,024
Federal Home Loan Bank stock		468			468
Foreclosed real estate held for sale, net		-			245
Accrued interest receivable		188			217
Bank owned life insurance		5,332			5,247
Mortgage servicing rights		422			317
Prepaid expenses and other assets		4,231			150
Total assets	$	99,601		$	95,045
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand	$	24,290		$	20,435
Savings and money market accounts		18,780			18,918
Time		33,580			32,913
Total deposits		76,650			72,266
Federal Home Loan Bank advances		6,927			6,927
Accrued nonqualified benefit plans		132			139
Other liabilities		1,091			639
Total liabilities		84,800			79,971
Commitments and Contigencies		-			-
Redeemable common stock held by Employee Stock Ownership Plan (ESOP)		44			44
Shareholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued		-			-
Common stock, $0.01 par value, 50,000,000 shares authorized, 696,600 shares issued and outstanding		7			7
Additional paid-in capital		5,754			5,754
Unearned ESOP shares		(523	)		(523	)
Retained earnings		9,563			9,836
Total shareholders' equity		14,801			15,074
Less maximum cash obligation related to ESOP shares		(44	)		(44	)
Total shareholders' equity less maximum cash obligation related to ESOP shares		14,757			15,030
Total liabilities and shareholders' equity	$	99,601		$	95,045

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

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New Bancorp, Inc.

Condensed Consolidated Statements of Operations

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

(In thousands, except per share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2016			2015		2016			2015
Interest Income
Loans	$	808		$	782	$	1,633		$	1,582
Interest-bearing deposits		15			9		27			21
Total interest income		823			791		1,660			1,603
Interest Expense
Deposits		150			155		303			287
Borrowings		33			34		66			69
Total interest expense		183			189		369			356
Net Interest Income		640			602		1,291			1,247
Provision for Loan Losses		-			-		-			-
Net Interest Income After Provision for Loan Losses		640			602		1,291			1,247
Noninterest Income
Service charges and fees		79			88		141			155
Gain on sale of loans		317			144		335			245
Gain+A44 on sale of foreclosed real estate, net		14			-		14			-
Income from bank owned life insurance		43			41		85			82
Loan servicing fees, net		10			24		28			38
Other operating		9			7		17			30
							-			-
Total noninterest income		472			304		620			550
Noninterest Expense
Salaries and employee benefits		610			456		1,176			899
Occupancy and equipment		115			117		232			241
Data processing fees		101			97		202			193
Franchise taxes		10			10		19			19
FDIC insurance premiums		19			19		39			37
Insurance premiums		11			13		24			25
Professional services		128			48		252			100
Impairment losses and expenses of foreclosed real estate		-			31		5			40
Other		134			75		235			142
Total noninterest expense		1,128			866		2,184			1,696
Income (Loss) Before Federal Income Taxes (Credits)		(16	)		40		(273	)		101
Federal Income Taxes		-			-		-			-
Net Income (Loss)	$	(16	)	$	40	$	(273	)	$	101
Loss per share - basic and diluted	$	(0.02	)		N/A	$	(0.42	)		N/A
Weighted-average shares outstanding - basic and diluted		644,247			N/A		644,247			N/A

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

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New Bancorp, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

For the Three and Six Months Ended June 30, 2016 and 2015

(In thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2016			2015		2016			2015
Net income (loss)	$	(16	)	$	40	$	(273	)	$	101
Other comprehensive income:		-			-		-			-
Comprehensive income (loss)	$	(16	)	$	40	$	(273	)	$	101

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

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New Bancorp, Inc.

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

For the Six Months Ended June 30, 2016

(In thousands)

	Common Stock		Additional Paid In Capital		Shares Acquired by ESOP			Retained Earnings			Maximum Cash Obligation Related to ESOP Shares			Total
Balance at January 1, 2016	$	7	$	5,754	$	(523	)	$	9,836		$	(44	)	$	15,030
Net loss for the six months ended June 30, 2016		-		-		-			(273	)		-			(273	)
Balance at June 30, 2016	$	7	$	5,754	$	(523	)	$	9,563		$	(44	)	$	14,757

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

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New Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six Months Ended June 30, 2016 and 2015

(In thousands)

	Six Months Ended June 30,
	2016			2015
Operating Activities
Net income (loss)	$	(273	)	$	101
Items not requiring (providing) cash:
Depreciation and amortization		73			105
Amortization of deferred loan origination fees and costs, net		-			4
Gain on sale of foreclosed real estate		(14	)		-
Gain on sale of loans originated for sale		(335	)		(245	)
Proceeds from sales of loans originated for sale		1,955			6,105
Loans originated for sale		(6,117	)		(6,077	)
Increase in cash surrender value of life insurance		(85	)		(82	)
Impairment loss on foreclosed real estate		-			7
Changes in:
Accrued interest receivable		29			(1	)
Prepaid expenses and other assets		(79	)		(309	)
Other liabilities		445			(2,295	)
Net cash used in operating activities		(4,401	)		(2,687	)
Investing Activities
Proceeds from sales of loans		-			2,135
Net change in loans		206			(2,043	)
Proceeds from redemption of FHLB stock		-			210
Purchase of premises and equipment		(33	)		(12	)
Proceeds from sale of foreclosed assets		259			-
Net cash provided by investing activities		432			290
Financing Activities
Net increase in deposits		4,384			5,441
Net change in federal funds purchased		-			(2,500	)
Net cash provided by financing activities		4,384			2,941
Increase in Cash and Cash Equivalents		415			544
Cash and Cash Equivalents, Beginning of Period		8,810			7,981
Cash and Cash Equivalents, End of Period	$	9,225		$	8,525
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest on deposits and borrowings	$	377		$	355
Supplemental Disclosure of Noncash Investing Activities
Transfers from loans to real estate acquired through foreclosure	$	-		$	338
Transfers from loans to loans held for sale	$	-		$	2,057

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

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Note 1: Basis of Presentation

The accompanying condensed consolidated balance sheet of New Bancorp, Inc. (the Company) as of December 31, 2015, which has been derived from audited financial statements, and the unaudited condensed consolidated financial statements of the Company as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the financial statements and notes thereto of the Company for the year ended December 31, 2015 included in the Company’s Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited consolidated financial statements have been included to present fairly the financial position as of June 30, 2016 and the results of operations for the three and six months ended June 30, 2016 and 2015 and cash flows for the six months ended June 30, 2016 and 2015. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2016 and 2015 herein, are not necessarily indicative of the results of operations to be expected for the year, ending December 31, 2016.

Use of Estimates

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

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

Note 2: Securities

The Company had no investment securities at June 30, 2016 and December 31, 2015. The Company had no sales of investment securities during the three and six month periods ended June 30, 2016 and 2015.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Note 3: Loans and Allowance for Loan Losses

The Company’s loan and allowance for loan losses policies are as follows:

Loans Receivable

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those 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 nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Bank’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Classes of loans at June 30, 2016 and December 31, 2015 include:

	June 30, 2016			December 31, 2015
	(In thousands)
Real estate loans
Residential	$	43,378		$	41,972
Commercial		25,882			27,319
Construction and land		7,094			7,196
Commercial business		462			1,354
Consumer and other		806			321
Total loans		77,622			78,162
Less:
Net deferred loan fees, premiums and discounts		(57	)		(2	)
Undisbursed loans in process		-			(430	)
Allowance for loan losses		(1,196	)		(1,155	)
Net loans	$	76,369		$	76,575

The risk characteristics applicable to each segment of the loan portfolio are described below:

Residential Real Estate: The residential real estate loans are generally secured by owner-occupied 1-4 family residences. The Bank’s portfolio of home equity loans totaled $4.3 million and $4.2 million at June 30, 2016 and December 31, 2015, respectively, the preponderance of which were secured by first liens, or by second liens on properties where the Bank also holds the first lien. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Bank’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Commercial Real Estate: Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Bank’s market area.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Construction and Land: Construction and land loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Bank until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Bank’s market area.

Commercial Business: The commercial business loan portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.

Consumer: The consumer loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Bank’s market area) and the creditworthiness of a borrower.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and six months ended June 30, 2016 and 2015.

	For the Three Months Ended June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land			Commercial Business			Consumer			Total
	(In thousands)
Allowance for loan losses:
Balance, April 1, 2016	$	739	$	311	$	91		$	7		$	7		$	1,155
Provision for loan losses		27		20		(44	)		(1	)		(2	)		-
Charge-offs		-		-		-			-			-			-
Recoveries		-		-		41			-			-			41
Balance, June 30, 2016	$	766	$	331	$	88		$	6		$	5		$	1,196

	For the Six Months Ended June 30, 2016
	Real Estate
	Residential		Commercial			Construction and Land			Commercial Business			Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, January 1, 2016	$	648	$	383		$	102		$	19		$	3	$	1,155
Provision for loan losses		118		(52	)		(55	)		(13	)		2		-
Charge-offs		-		-			-			-			-		-
Recoveries		-		-			41			-			-		41
Balance, June 30, 2016	$	766	$	331		$	88		$	6		$	5	$	1,196

	For the Three Months Ended June 30, 2015
	Real Estate
	Residential		Commercial			Construction and Land			Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, April 1, 2015	$	564	$	432		$	123		$	22	$	6	$	1,147
Provision for loan losses		27		(11	)		(17	)		1		0		-
Charge-offs		-		-			-			-		-		-
Recoveries		8		-			-			-		-		8
Balance, June 30, 2015	$	599	$	421		$	106		$	23	$	6	$	1,155

	For the Six Months Ended June 30, 2015
	Real Estate
	Residential		Commercial		Construction and Land			Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, January 1, 2015	$	575	$	418	$	126		$	23	$	5	$	1,147
Provision for loan losses		16		3		(20	)		0		1		-
Charge-offs		-		-		-			-		-		-
Recoveries		8		-		-			-		-		8
Balance, June 30. 2015	$	599	$	421	$	106		$	23	$	6	$	1,155

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2016 and December 31, 2015:

	At June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	79	$	-	$	-	$	-	$	-	$	79
Ending balance, collectively evaluated for impairment	$	687	$	331	$	88	$	6	$	5	$	1,117
Loans:
Ending balance	$	43,378	$	25,882	$	7,094	$	462	$	806	$	77,622
Ending balance; individually evaluated for impairment	$	1,735	$	240	$	1,547	$	-	$	-	$	3,522
Ending balance; collectively evaluated for impairment	$	41,643	$	25,642	$	5,547	$	462	$	806	$	74,100

	At December 31, 2015
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	20	$	-	$	-	$	-	$	-	$	20
Ending balance, collectively evaluated for impairment	$	628	$	383	$	102	$	19	$	3	$	1,135
Loans:
Ending balance	$	41,972	$	27,319	$	7,196	$	1,354	$	321	$	78,162
Ending balance; individually evaluated for impairment	$	1,763	$	229	$	1,751	$	-	$	-	$	3,743
Ending balance; collectively evaluated for impairment	$	40,209	$	27,090	$	5,445	$	1,354	$	321	$	74,419

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Internal Risk Categories

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

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

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

Substandard: These are loans with a well-defined weakness, where the Bank has a serious concern about the borrower’s ability to make full repayment if the weaknesses are not corrected. The loan may contain a flaw, which could impact the borrower’s ability to repay, or the borrower’s continuance as a “going concern”. When collateral values are not sufficient to secure the loan and other weaknesses are present, the loan may be rated substandard. A loan will also be graded substandard when full repayment is expected, but it must come from the liquidation of collateral. All loans that are past due 90 days or more are classified as substandard.

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

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

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of June 30, 2016 and December 31, 2015:

	June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	41,746	$	24,747	$	7,094	$	462	$	786	$	74,835
Special mention/Watch		647		-		-		-		20		667
Substandard		985		1,135		-		-		-		2,120
Doubtful		-		-		-		-		-		-
Total	$	43,378	$	25,882	$	7,094	$	462	$	806	$	77,622

	December 31, 2015
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	39,842	$	26,178	$	7,022	$	1,354	$	294	$	74,690
Special mention/Watch		686		529		8		-		27		1,250
Substandard		1,444		612		166		-		-		2,222
Doubtful		-		-		-		-		-		-
Total	$	41,972	$	27,319	$	7,196	$	1,354	$	321	$	78,162

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

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2016 and December 31, 2015:

	June 30, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
	(In thousands)
Real estate
Residential	$	101	$	-	$	426	$	532	$	42,846	$	43,378	$	-
Commercial		-		5		-		-		25,882		25,882		-
Construction and land		-		-		-		-		7,094		7,094		-
Commercial business		-		-		-		-		462		462		-
Consumer		-		-		-		-		806		806		-
Total	$	101	$	5	$	426	$	532	$	77,090	$	77,622	$	-

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
	(In thousands)
Real estate
Residential	$	455	$	100	$	598	$	1,153	$	40,819	$	41,972	$	-
Commercial		-		7		-		7		27,312		27,319		-
Construction and land		-		-		166		166		7,030		7,196		-
Commercial business		-		-		-		-		1,354		1,354		-
Consumer		-		-		-		-		321		321		-
Total	$	455	$	107	$	764	$	1,326	$	76,836	$	78,162	$	-

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming multi-family and commercial loans but also include loans modified in troubled debt restructurings.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

											For the three Months Ended
	As of and for the three months ended June 30, 2016										June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Balance of Impaired Loans		Interest Income Recognized		Average Balance of Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,274	$	1,308	$	-	$	1,280	$	14	$	1,415	$	14
Commercial		240		240		-		241		4		252		3
Construction and land		1,547		1,547		-		1,554		21		1,832		21
Commercial business		-		-		-				-		-		-
Consumer		-		-		-		-		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		461		478		79		468		7		31		-
Commercial		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-
Totals	$	3,522	$	3,572	$	79	$	3,543	$	46	$	3,530	$	38

											For the six Months Ended
	As of and for the six months ended June 30, 2016										June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Balance of Impaired Loans		Interest Income Recognized		Average Balance of Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,274	$	1,308	$	-	$	1,286	$	28	$	1,413	$	31
Commercial		240		240		-		237		8		239		8
Construction and land		1,547		1,547		-		1,562		42		1,840		43
Commercial business		-		-		-				-		-		-
Consumer		-		-		-		-		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		461		478		79		469		8		33		2
Commercial		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-
Totals	$	3,522	$	3,572	$	79	$	3,554	$	86	$	3,525	$	84

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The following table presents impaired loans as of December 31, 2015:

	As of December 31, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,607	$	1,647	$	-
Commercial		229		229		-
Construction and land		1,751		1,751		-
Commercial business		-		-		-
Consumer		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		156		166		20
Commercial		-		-		-
Construction and land		-		-		-
Commercial business		-		-		-
Consumer		-		-		-
Totals	$	3,743	$	3,793	$	20

The following table presents the Company’s nonaccrual loans at June 30, 2016 and December 31, 2015. The table excludes performing troubled debt restructurings.

	June 30, 2016		December 31, 2015
	(In thousands)
Real estate loans
Residential	$	985	$	987
Commercial		5		7
Construction and land		-		166
Commercial business		-		-
Consumer and other		-		-
Total nonaccrual	$	990	$	1,160

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

At June 30, 2016 and December 31, 2015, the Company had certain loans that were modified as troubled debt restructurings (TDRs) and were impaired. The modification of terms of such loans generally included one or a combination of the following: an extension of the maturity date or a reduction of the stated interest rate.

During the three and six months ended June 30, 2016 there were no new loan modifications classified as troubled debt restructurings. There were no new loan modifications classified as TDRs during the three months ended June 30, 2015.

The following table presents information regarding TDRs by class for the six months ended June 30, 2015. Newly classified TDRs during the six months ended June 30, 2015 were as follows:

	June 30, 2015 (Unaudited)
	Number of Contracts		Pre- Modification Balance		Post- Modification Balance
	(In thousands)
Real estate
Residential		-	$	-	$	-
Commercial		1		42		42
Construction and land		-		-		-
Commercial business		-		-		-
Consumer		-		-		-
		1	$	42	$	42

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The TDRs described above did not increase the allowance for loan losses or result in a charge-off during the three and six months ended June 30, 2015.

The Company had no TDRs modified in the twelve months ended June 30, 2016 and 2015 that subsequently defaulted. A loan is considered to be in payment default once it is 30 days contractually past due under the loan’s modified terms.

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

Foreclosed real estate held for sale consisted of residential real estate at December 31, 2015. There were $342,000 and $423,000 of residential real estate loans in the process of foreclosure at June 30, 2016 and December 31, 2015, respectively.

Note 4: Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory- and possibly additional discretionary- actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

At June 30, 2016 and December 31, 2015, quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below), of total capital, Tier 1 capital and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 leverage capital to average total assets.

Basel III was effective for the Company on January 1, 2015. Basel III requires the Company and the Bank to maintain minimum amounts and ratios of common equity Tier 1 capital to risk weighted assets, as defined in the regulation. Under the new Basel III rules, in order to avoid limitations on capital distributions, including dividends, the Company must hold a capital conservation buffer above the adequately capitalized common equity Tier 1 capital to risk-weighted assets ratio. The capital conservation buffer is beingphased in from zero percent to 2.50 percent by 2019. Under Basel III, the Company and Bank elected to opt-out of including accumulated other comprehensive income inregulatory capital.

Management believes, as of June 30, 2016 (unaudited) and December 31, 2015, that the Bank meets all capital adequacy requirements to which it is subject.

As of June 30, 2016 (unaudited) and December 31, 2015, the most recent notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier I and Tier I leverage capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
As of June 30, 2016
Total Capital
(to Risk-Weighted Assets)	$	14,079		18.3	%	$	6,142		8.0	%	$	7,678		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	13,116		17.1	%	$	4,607		6.0	%	$	6,142		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	13,116		17.1	%	$	3,455		4.5	%	$	4,990		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	13,116		13.3	%	$	3,946		4.0	%	$	4,932		5.0	%
As of December 31, 2015
Total Capital
(to Risk-Weighted Assets)	$	14,072		21.3	%	$	5,295		8.0	%	$	6,618		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	13,241		20.0	%	$	3,971		6.0	%	$	5,295		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	13,241		20.0	%	$	2,978		4.5	%	$	4,302		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	13,241		13.9	%	$	3,801		4.0	%	$	4,752		5.0	%

Note 5: Disclosures about Fair Value of Assets and Liabilities

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

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

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

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

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

Nonrecurring Measurements

The following table presents fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which fair value measurements fall at June 30, 2016 and December 31, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Impaired loans	$	382	$	-	$	-	$	382
December 31, 2015
Impaired loans	$	136	$	-	$	-	$	136
Foreclosed assets held for sale	$	245	$	-	$	-	$	245

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

Collateral-dependent Impaired Loans, Net of ALLL

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.

The Bank considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Foreclosed Real Estate Held for Sale

Foreclosed real estate held for sale is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of foreclosed real estate is based on appraisals or evaluations. Foreclosed real estate is classified within Level 3 of the fair value hierarchy.

Appraisals of foreclosed real estate are obtained when the real estate is acquired and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by the management. Appraisers are selected from the list of approved appraisers maintained by management.

Unobservable (Level 3) Inputs

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

	Fair Value		Valuation Technique	Unobservable Inputs	Range
	(In thousands)
June 30, 2016
Impaired loans (collateral dependent)	$	382	Marketable comparable properties	Marketability discount		9%	-	15%
December 31, 2015
Impaired loans (collateral dependent)	$	136	Marketable comparable properties	Marketability discount		10%	-	15%
Foreclosed real estate		245	Marketable comparable properties	Comparability adjustments			9%

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Fair Value of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and December 31, 2015.

					Fair Value Measurement Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
			(In thousands)
June 30, 2016
Financial assets
Cash and due from banks	$	1,763	$	1,763	$	1,763	$	-	$	-
Interest-earning demand deposits		1,645		1,645		1,645		-		-
Federal funds sold		5,817		5,817		5,817		-		-
Interest-earning time deposits in banks		992		992		-		992		-
Loans held for sale		370		370		-		-		370
Loans, net		76,369		76,902		-		-		76,902
Federal Home Loan Bank stock		468		468		-		468		-
Accrued interest receivable		188		188		-		188		-
Mortgage servicing rights		422		422		-		-		422
Financial liabilities
Deposits		76,650		77,334		43,070		34,264		-
Advances from the Federal Home Loan Bank		6,927		7,158		-		7,158		-
Accrued interest payable		3		3		-		3		-
December 31, 2015
Financial assets
Cash and due from banks	$	7,132	$	7,132	$	7,132	$	-	$	-
Interest-earning demand deposits		1,678		1,678		1,678		-		-
Interest-earning time deposits in banks		992		992		-		992		-
Loans, net		76,575		77,086		-		-		77,086
Federal Home Loan Bank stock		468		468		-		468		-
Accrued interest receivable		217		217		-		217		-
Mortgage servicing rights		317		317		-		-		317
Financial liabilities
Deposits		72,266		72,708		39,353		33,355		-
Advances from the Federal Home Loan Bank		6,927		7,023		-		7,023		-
Accrued interest payable		11		11		-		11		-

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

Cash and Due from Banks, Interest-earning Demand Deposits and Federal Funds Sold

The carrying amount approximates fair value. 

Interest-earning Time Deposits in Banks

The carrying amount approximates fair value. 

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Loans, net 

Fair value is estimated by discounting the future cash flows using the market rates at which similar notes would be made to borrowers with similar credit ratings and for the same remaining maturities. The market rates used are based on current rates the Bank would impose for similar loans and reflect a market participant assumption about risks associated with nonperformance, illiquidity, and the structure and term of the loans along with local economic and market conditions.

Loans Held for Sale

The carrying amount approximates fair value due to the insignificant time between origination and sale.

Federal Home Loan Bank Stock

Fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities.

Accrued Interest Receivable and Payable

The carrying amount approximates fair value. The carrying amount is determined using the interest rate, balance and last payment date.

Mortgage Servicing Rights

Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed and default rate.

Deposits

Fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from a knowledgeable independent third party and reviewed by the Bank. The rates were the average of current rates offered by local competitors of the Bank.

The estimated fair value of demand, NOW, savings and money market deposits is the book value since rates are regularly adjusted to market rates and amounts are payable on demand at the reporting date.

Federal Home Loan Bank Advances

Fair value is estimated by discounting the future cash flows using rates of similar advances with similar maturities. These rates were obtained from current rates offered by the Federal Home Loan Bank.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Commitments to Originate Loans, Letters of Credit and Lines of Credit

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

The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. 

Note 6: Recent Accounting Pronouncements

The Company is an emerging growth company and as such will be subject to the effective dates noted for the private companies if they differ from the effective dates noted for public companies.

FASB ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March, 2016 the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-02-12, “Narrow-Scope Improvements and Practical Expedients” which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. This ASU also provides a practical expedient for contract modifications.

The amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The Company is currently evaluating the impact of adopting the guidance.

FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”. For public business entities, the amendments in this update include the elimination of the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, the requirement to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, the requirement to present separately in other comprehensive income the portion of the total change in the 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, the requirement for separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or accompanying notes to the financial statements, and the amendments clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption of the amendments in this update is not permitted, except that early application by public business entities to financial statements of fiscal years or interim periods that have not yet been issued or, by all other entities, that have not yet been made available for issuance are permitted as of the beginning of the fiscal year of adoption for the following amendment: An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. An entity should apply the amendments to this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements.

FASB ASU 2016-02, Leases

In February 2016 the FASB issued ASU 2016-02, “Leases”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:

● A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and

● A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers.

The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing.

Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements.

FASB ASU 2016-13, Financial Instruments – Credit Losses 

In June 2016, FASB issued ASU 2016-13, “Financial Instruments - Credit Losses”. The amendments in this Update replace the incurred loss model with a methodology that reflects expedited credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company's financial position and results of operations.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Note 7: Loss Per Share

Basic loss per share (“LPS”) is calculated by dividing net loss applicable to common stock by the weighted-average number of shares of common stock outstanding during the period. Unallocated common shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for basic and diluted LPS calculations until they are committed to be released.

Loss per share for the three and six months ended June 30, 2016 was $0.02 and $0.42, respectively, calculated using 696,600 average shares issued, less 52,353 unallocated average shares held by the ESOP for each period. The Company had no dilutive or potentially dilutive securities at June 30, 2016.

Earnings per share disclosures are not applicable to the three- and six-month periods ended June 30, 2015, because the Company did not complete the conversion to stock form until October 19, 2015.

Note 8: Employee Stock Ownership Plan

As part of the Company’s stock conversion, shares were purchased by the ESOP with a loan from New Bancorp. All employees of the Bank meeting certain tenure requirements are entitled to participate in the ESOP. Compensation expense related to the ESOP was $8,000 and $13,000 for the three and six-month periods ended June 30, 2016, respectively.

The stock price at the formation date was $10.00. The aggregate fair value of the 52,353 unallocated shares was $672,000 based on the $12.84 closing price of our common stock on June 30, 2016.

Note 9: Change in Corporate Form

On October 19, 2015, the Bank converted into a federal stock savings bank and established a stock holding company, New Bancorp, Inc., as parent of the Bank.

The Bank converted to the stock form of ownership, followed by the issuance of all of the Bank’s outstanding stock to New Bancorp, Inc. The Bank became the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock pursuant to an independent valuation appraisal of the Bank and the Company. The stock was priced at $10.00 per share. In addition, the Bank’s board of directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering. The Conversion was completed on October 19, 2015 and resulted in the issuance of 696,600 common shares by the Company. The cost of the Conversion and issuing the capital stock totaled $1.2 million and was deducted from the proceeds of the offering.

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New Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

In accordance with OCC regulations, at the time of the Conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible holders who continue to maintain their accounts at the Bank after the Conversion. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount.

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

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

General 

Management’s discussion and analysis of the financial condition at June 30, 2016 and results of operations for the three- and six-months ended June 30, 2016 and 2015 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto, appearing on Part I, Item 1 of this quarterly report on Form 10-Q.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

● statements of our goals, intentions and expectations;

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

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

● estimates of our risks and future costs and benefits.

These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

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

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

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

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

● the use of estimates in determining fair value of certain of our assets, which may prove to be incorrect and result in significant declines in valuations;

● competition among depository and other financial institutions;

● our success in increasing our residential real estate and commercial real estate lending, and selling certain of our residential real estate loans;

● our ability to attract and maintain deposits and our success in introducing new financial products;

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● our ability to improve our asset quality even as we increase our commercial real estate lending;

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

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

● changes in consumer spending, borrowing and savings habits;

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

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

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

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

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

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

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

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

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

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

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

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

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

● other economic, competitive, governmental, regulatory and operational factors affecting our operations, pricing, products and services.

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

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Critical Accounting Policies

There are no material changes to the critical accounting policies disclosed in New Bancorp, Inc.’s Annual Report Form 10-K as filed with the Securities and Exchange Commission on March 30, 2016.

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

Total Assets. Total assets were $99.6 million at June 30, 2016, an increase of $4.6 million, or 4.8%, compared to December 31, 2015. As discussed later, the increase was due primarily to an increase of $4.1 million in other assets.

Cash and cash equivalents. Cash and cash equivalents totaled $9.2 million at June 30, 2016, an increase of $415,000, or 4.7% from $8.8 million at December 31, 2015. The Company held cash in anticipation of loan funding needs for loan originations expected to close in the third quarter.

Loans, net. Loans, net decreased $206,000, or 0.3%, to $76.2 million at June 30, 2016, from $76.4 million at December 31, 2015. During the six months ended June 30, 2016, we originated $12.6 million of loans, consisting primarily of $5.7 million of one- to four-family residential real estate loans, $5.0 million of commercial real estate loans, $1.5 million of construction and land loans, $128,000 commercial business and $81,000 of consumer loans, and sold $5.9 million of loans. During the six months ended June 30, 2016, one- to four-family residential real estate loans increased $1.4 million or 3.3%, to $43.4 million at June 30, 2016, from $42.0 million at December 31, 2015, while commercial real estate loans decreased $1.4 million, or 5.3%, to $25.9 million at June 30, 2016 and commercial business loans decreased $892,000, or 65.9%, to $462,000 at June 30, 2016. During the six months ended June 30, 2016, sales of loans originated during the period amounted to $5.7 million. The Company had loans held for sale of $370,000 at June 30, 2016 compared to no loans held for sale at December 31, 2015.

We continue to pursue a strategy to maximize our income by growing and diversifying our loan portfolio, with an emphasis on increasing our commercial real estate, commercial business and home equity loans, and continually reviewing our existing portfolio for income, liquidity and interest rate risk mitigation opportunities consistent with our strategic objectives. Recent loan originations have been achieved amid strong competition for commercial real estate and residential real estate loans in our market area in the current low interest rate environment.

We also sell certain fixed-rate, 30-year one- to four-family residential real estate loans, primarily on a servicing-retained basis, in transactions with the Federal Home Loan Bank of Indianapolis (“FHLB-Indianapolis”), through its mortgage purchase program, and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Subject to our ongoing interest rate risk analysis, we generally intend to continue to sell the fixed-rate, 30-year residential real estate loans that we originate.

Further, as a result of the addition to our senior lending staff of a commercial loan officer with a specialization in Small Business Administration lending, we have begun to originate loans that comply with that agency’s standards. During the three months ended June 30, 2016, we originated $4.9 million of such loans and have sold $3.7 million of those loans, retaining servicing on those loans. We intend to continue to pursue growth and volume in Small Business Administration lending.

Bank Owned Life Insurance. At June 30, 2016, our investment in bank owned life insurance was $5.3 million, an increase of $85,000, from December 31, 2015. We invested in bank owned life insurance to provide us with a funding offset for certain benefit plan obligations. While these benefit plans have been terminated and the obligations have been paid, bank owned life insurance also generally provides us noninterest income that is non-taxable. Federal bank regulatory guidance cautions against an investment in bank owned life insurance that exceeds 25% of an institution’s Tier 1 capital. The guidance states that an institution which has an investment in bank owned life insurance exceeding this amount make a determination that the amount of investment does not constitute an imprudent capital concentration. We have not made additional contributions to bank owned life insurance since 2002.

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Foreclosed Real Estate. The Company held no foreclosed real estate at June 30, 2016, a decrease of $245,000 from December 31, 2015. At December 31, 2015, our foreclosed real estate consisted of one parcel of residential real estate, which was sold during the 2016 six-month period.

Other Assets. Other assets increased $4.1 million to $4.2 million at June 30, 2016, compared to December 31, 2015. The increase was comprised of a receivable for proceeds from sales of the guaranteed portion of the SBA loans prior to quarter end. The funds were received in the period after June 30, 2016.

Deposits. Deposits increased $4.4 million, or 6.1%, to $76.7 million at June 30, 2016 from $72.3 million at December 31, 2015. Our core deposits increased $3.7 million, or 9.4%, to $43.1 million at June 30, 2016 from $39.4 million at December 31, 2015. Certificates of deposit increased $667,000, or 2.0%, to $33.6 million at June 30, 2016 from $32.9 million at December 31, 2015. Management intends to focus its efforts to increase core deposits, with a special emphasis on growth in consumer and business demand deposits.

Federal Home Loan Bank Advances. Federal Home Loan Bank advances totaled $6.9 million at both June 30, 2016 and December 31, 2015. The aggregate cost of outstanding advances from the Federal Home Loan Bank was 1.88% at June 30, 2016, compared to the Bank’s cost of deposits of 0.82% at that date.

Shareholders’ Equity. Shareholders’ equity decreased $273,000, or 1.8%, to $14.8 million at June 30, 2016 compared to December 31, 2015. The decrease resulted from the net loss of $273,000 during the six months ended June 30, 2016.

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

General. Net loss for the three months ended June 30, 2016 was $16,000, a decrease of $56,000 from the net income of $40,000 for the three months ended June 30, 2015. The decrease was primarily due to a $262,000 increase in noninterest expenses, which was partially offset by a $38,000 increase in net interest income and a $168,000 increase in noninterest income.

Interest Income. Interest income increased $32,000, or 4.0%, to $823,000 for the three months ended June 30, 2016 from $791,000 for the three months ended June 30, 2015. This increase was attributable to a $26,000 increase in interest on loans receivable. The average balance of loans during the three months ended June 30, 2016 increased $4.0 million, or 5.5%, to $76.4 million from $72.4 million for the three months ended June 30, 2015, while the average yield on loans decreased nine basis points to 4.23% for the three months ended June 30, 2016 from 4.32% for the three months ended June 30, 2015. The decrease in average yield on loans was due to lower market interest rates period to period, as well as an increase in payoffs of higher interest rate loans as customers refinanced loans at lower interest rates. The average balance of other interest-earning assets, including certificates of deposit in other banks and federal funds sold increased $7.4 million to $12.3 million for the three months ended June 30, 2016 while the average yield decreased by 25 basis points to 0.49% for the three months ended June 30, 2015.

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 Interest Expense. Total interest expense decreased $6,000, or 3.2%, to $183,000 for the three months ended June 30, 2016 from $189,000 for the three months ended June 30, 2015. Interest expense on deposit accounts decreased $5,000, or 3.2%, to $150,000 for the three months ended June 30, 2016 from $155,000 for the three months ended June 30, 2015. The decrease was primarily due to a decrease of 16 basis points in the average cost of certificates of deposit for the three months ended June 30, 2016 from 1.80% for the three months ended June 30, 2015. Interest expense on borrowings decreased $1,000 to $33,000 for the three months ended June 30, 2016 from $34,000 for the three months ended June 30, 2015. The average balance of borrowings remained unchanged at $6.9 million for the three months ended June 30, 2016 and 2015, while the average cost of these advances decreased five basis points to 1.91% for the three months ended June 30, 2016.

Net Interest Income. Net interest income increased $38,000, or 6.3%, to $640,000 for the three months ended June 30, 2016 compared to $602,000 for the three months ended June 30, 2015. The interest rate spread was 2.74% for the three months ended June 30, 2016 compared to 3.08% for the three months ended June 30, 2015. The decrease was due to the average balance of federal funds sold increasing $9.1 million funded by deposit growth in anticipation of near term lending.

Our net interest margin was 2.89% for the three months ended June 30, 2016 compared to 3.11% for the three months ended June 30, 2015.

Provision for Loan Losses. Based on our analysis of the factors described in “Critical Accounting Policies – Allowance for Loan Losses,” we did not record a provision for loan losses for either of the three months ended June 30, 2016 and 2015. The allowance for loan losses was $1.2 million, or 1.54% of total loans, at June 30, 2016, compared to $1.2 million, or 1.55% of total loans, at June 30, 2015. Total nonperforming loans were $990,000 at June 30, 2016, compared to $1.3 million at June 30, 2015. Classified loans were $2.8 million at June 30, 2016, and $3.1 million at June 30, 2015, and total loans past due greater than 30 days were $532,000 and $1.1 million at those respective dates. We had a recovery of $41,000 for the three months ending June 30, 2016 and no charge-offs or recoveries during the three months ended March 31, 2015. As a percentage of nonperforming loans, the allowance for loan losses was 120.8% at June 30, 2016 compared to 91.7% at June 30, 2015.

The allowance for loan losses reflects the estimate we believe to be appropriate to cover incurred probable losses which were inherent in the loan portfolio at June 30, 2016 and 2015. While we believe the estimates and assumptions used in our determination of the adequacy of the allowance are reasonable, the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact our financial condition and results of operations.

Non-Interest Income. Non-interest income increased $168,000, or 55.3%, to $472,000 for the three months ended June 30, 2016 from $304,000 for the three months ended June 30, 2015. The increase was primarily due to an increase of $173,000 in gains on sales of loans to $317,000 during the three months ended June 30, 2016, compared to $144,000 in the year earlier period. During the three months ended June 30, 2016, the Company originated $4.9 million of Small Business Administration loans and sold $3.7 million of these loans, realizing a gain of $281,000.

Non-Interest Expense. Non-interest expense increased $262,000, or 30.3%, to $1.1 million for the three months ended June 30, 2016 compared to $866,000 for the three months ended June 30, 2015. The increase was due primarily to a $154,000, or 33.8%, increase in salaries and employee benefits and an $80,000, or 166.7%, increase in professional services. The increase in salaries and employee benefits was due primarily to the addition of new officers, including fees incurred, and increased costs related to employee benefits and the new ESOP. In accordance with our strategic plans to grow our core deposit base and to expand our emphasis on Small Business Administration lending and our commercial lending in the Detroit metropolitan area to our east, we added a director of retail banking and two loan officers to our loan origination staff. The increase in professional services was due primarily to the additional expenses related to the reporting requirements as a public stock company.

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Non-interest expense can be expected to increase because of costs associated with operating as a public company and increased compensation costs related to possible implementation of one or more stock-based benefit plans, if approved by our stockholders.

Federal Income Taxes. The Company did not record a federal income tax provision during either of the three month periods ended June 30, 2016 and 2015. The federal income tax provision was affected by the full impairment valuation allowance recorded on the Company’s net deferred tax assets in both 2016 and 2015. Management evaluated the deferred tax asset based upon a projection of future operating results and determined that a full impairment valuation allowance was required at both June 30, 2016 and 2015. The Company has a total valuation allowance on its net deferred tax assets of $4.4 million at June 30, 2016. The deferred tax asset will only be recognized in future periods upon the Company’s ability to realize and maintain profitable results of operations.

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

General. Net loss for the six months ended June 30, 2016 was $273,000, compared to net income of $101,000 for the six months ended June 30, 2015, a decrease of $374,000. The net loss was primarily due to a $488,000 increase in noninterest expenses, partially offset by a $70,000 increase in net interest income and a $44,000 increase in noninterest income.

Interest Income. Interest income increased $57,000, or 3.6%, to $1.7 million for the six months ended June 30, 2016 from $1.6 million for the six months ended June 30, 2015. This increase was attributable to a $51,000 increase in interest on loans receivable and a $6,000 increase in interest on other interest-earning deposits. The average balance of loans, including loans held for sale during the six months ended June 30, 2016, increased $3.6 million, or 4.9%, to $76.6 million from $73.0 million for the six months ended June 30, 2015, while the average yield on loans decreased seven basis points to 4.26% for the six months ended June 30, 2016 from 4.33% for the six months ended June 30, 2015 reflecting lower market interest rates, as well as an increase in payoffs of higher interest rate loans as customers refinanced loans at lower interest rates. The average balance of other interest-earning assets, including certificates of deposit in other banks and federal funds sold, increased $5.4 million to $9.8 million for the six months ended June 30, 2016 from $4.5 million for the six months ended June 30, 2015.

Interest Expense. Total interest expense increased $13,000, or 3.7%, to $369,000 for the six months ended June 30, 2016 from $356,000 for the six months ended June 30, 2015. Interest expense on deposit accounts increased $16,000, or 5.6%, to $303,000 for the six months ended June 30, 2016 from $287,000 for the six months ended June 30, 2015. The increase was primarily due to an decrease of seven basis points in the average cost of interest-bearing deposits to 0.81% for the six months ended June 30, 2016 from 0.88% for the six months ended June 30, 2015, partially offset by an increase of $9.1 million, or 13.9%, in the average balance of deposits to $74.6 million for the six months ended June 30, 2016 from $65.4 million for the six months ended June 30, 2015. Interest expense on borrowings decreased to $66,000 for the six months ended June 30, 2016 from $69,000 for the six months ended June 30, 2015 due to short-term borrowing cost in the first quarter of 2015. 

Net Interest Income. Net interest income increased $44,000, or 3.5%, to $1.3 million for the six months ended June 30, 2016 compared to $1.2 million for the six months ended June 30, 2015. The increase was due to an increase in our average net interest-earning assets of $9.0 million period to period offset by a 33 basis point decrease in the interest rate spread to 2.84% for the six months ended June 30, 2016 from 3.17% for the six months ended June 30, 2015. The decrease was due to the average balance of federal funds sold increasing $6.9 million funded by deposit growth in anticipation of near-term loan originations.

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Our net interest margin increased to 2.99% for the six months ended June 30, 2016 from 3.22% for the six months ended June 30, 2015 further reflecting the shift in our interest-earning assets.

Provision for Loan Losses. Based on our analysis of the factors described in “Critical Accounting Policies – Allowance for Loan Losses,” we did not record a provision for loan losses for the six months ended June 30, 2016 and 2015. The allowance for loan losses was $1.2 million, or 1.54% of total loans, at June 30, 2016, compared to $1.2 million, or 1.55% of total loans, at June 30, 2015. Total nonperforming loans were $990,000 at June 30, 2016, compared to $1.3 million at June 30, 2015. Classified (substandard, doubtful and loss) loans were $2.8 million at June 30, 2016 and $3.1 million at June 30, 2015, and total loans past due greater than 30 days were $532,000 and $1.1 million at those respective dates. We had a recovery of $41,000 for the six months ending June 30, 2016 and no charge-offs or recoveries during the six months ended June 30, 2015. As a percentage of nonperforming loans, the allowance for loan losses was 120.8% at June 30, 2016 compared to 91.7% at June 30, 2015.

The allowance for loan losses reflects the estimate we believe to be appropriate to cover incurred probable losses which were inherent in the loan portfolio at June 30, 2016 and December 31, 2015. While we believe the estimates and assumptions used in our determination of the adequacy of the allowance are reasonable, the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact our financial condition and results of operations.

Non-Interest Income. Non-interest income increased $70,000, or 12.7%, to $620,000 for the six months ended June 30, 2016 from $550,000 for the six months ended June 30, 2015. The increase was primarily due to an increase of $90,000 in gains on sales of loans to $335,000 in the six months ended June 30, 2016, compared to $245,000 in the year earlier period. During the six months ended June 30, 2016, the Company originated $4.9 million of Small Business Administration loans and sold $3.7 million of these loans. These sales resulted in gains on sale of $281,000.

Non-Interest Expense. Non-interest expense increased $488,000, or 28.8%, to $2.2 million for the six months ended June 30, 2016 compared to $1.7 million for the six months ended June 30, 2015. The increase was due primarily to a $277,000, or 30.8%, increase in salaries and employee benefits and a $152,000, or 152.0%, increase in professional services. The increase in salaries and employee benefits was due primarily to the addition of new commercial loan officers, including professional fees incurred, and increased costs related to employee benefits, including the new ESOP. In accordance with our strategic plans to expand our emphasis on Small Business Administration (SBA) lending and our commercial loan emphasis in the Detroit metropolitan area to our east, we added two loan officers to our loan origination staff. The increase in professional services was due primarily to the additional expenses related to the reporting requirements as a public stock company. Non-interest expense can be expected to increase because of costs associated with operating as a public company and increased compensation costs related to possible implementation of one or more stock-based benefit plans, if approved by our stockholders.

Federal Income Taxes. We did not record a federal income tax provision during either of the six month periods ended June 30, 2016 and 2015. The federal income tax provision was affected by the full impairment valuation allowance recorded on our net deferred tax assets in both the 2016 and 2015 periods. Management evaluated the deferred tax asset based upon a projection of future operating results and determined that a full impairment valuation allowance was required at both June 30, 2016 and 2015. We had a total valuation allowance on its net deferred tax assets of $4.4 million at June 30, 2016. The deferred tax asset will only be recognized in future periods upon the Company’s ability to realize and maintain profitable results of operations.

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Liquidity and Capital Resources

Our primary sources of funds are deposits, principal and interest payments on loans, and proceeds from the sale of loans and advances from the FHLB-Indianapolis. While maturities and scheduled amortization of loans are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by market interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments including interest-bearing demand deposits. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash used in operating activities was $4.4 million and $2.7 million for the six months ended June 30, 2016 and 2015, respectively. Net cash provided by investing activities, which consist primarily of the net change in loans receivable and sale of foreclosed assets was $432,000 and $290,000 for the six months ended June 30, 2016 and 2015, respectively. Net cash provided by financing activities, which is comprised of net change in deposits and borrowings, was $4.4 million and $2.9 million for the six months ended June 30, 2016 and 2015, respectively.

At June 30, 2016, we exceeded all of our regulatory capital requirements with a Tier 1 leverage capital level of $13.1 million, or 13.3% of adjusted average assets, which is above the required level of $3.9 million or 4.0%; total risk-based capital of $14.1 million, or 18.3% of risk-weighted assets, which is above the required level of $6.1 million, or 8.0%; and common equity Tier 1 capital of $13.1 million, or 17.1% of risk-weighted assets, which is above the required level of $3.5 million, or 4.5% of risk-weighted assets. Accordingly New Buffalo Savings Bank was categorized as well capitalized at June 30, 2016. Management is not aware of any conditions or events since the most recent notification that would change our category.

At June 30, 2016, we had outstanding commitments to originate loans of $85,000 and lines of credit of $11.0 million. We anticipate that we will have sufficient funds available to meet our current loan origination commitments. Certificates of deposit that are scheduled to mature in less than one year from June 30, 2016 totaled $11.0 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize FHLB-Indianapolis advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable, as the Registrant is a smaller reporting company.

Item 4. Controls and Procedures

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

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

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Part II – Other Information

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

Not applicable, as the Registrant is a smaller reporting company.

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

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

(b) Not applicable.

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

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

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

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

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

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

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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.

	NEW BANCORP, INC.
Date:  August 15, 2016	/s/ Richard C. Sauerman
	Richard C. Sauerman
	President and Chief Executive Officer
Date:  August 15, 2016	/s/ Russell N. Dahl
	Russell N. Dahl
	Chief Financial Officer

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EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

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

I, Richard C. Sauerman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of New Bancorp, Inc.;

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

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

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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) 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

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

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

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

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

Date:  August 15, 2016	/s/ Richard C. Sauerman
	Richard C. Sauerman
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

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

I, Russell N. Dahl, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of New Bancorp, Inc.;

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

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

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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) 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

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

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

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

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

Date:  August 15, 2016	/s/ Russell N. Dahl
	Russell N. Dahl
	Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

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

Richard C. Sauerman, President and Chief Executive Officer of New Bancorp, Inc., (the “Company”) and Russell N. Dahl, Chief Financial Officer of the Company, each certify in his capacity as an officer of the Company that he has reviewed the quarterly report on Form 10-Q for the quarter ended June 30, 2016 (the “Report”) and that to the best of his knowledge:

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

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

Date:  August 15, 2016	/s/ Richard C. Sauerman
	Richard C. Sauerman
	President and Chief Executive Officer
Date:  August 15, 2016	/s/ Russell N. Dahl
	Russell N. Dahl
	Chief Financial Officer

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

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document Information [Line Items]
Entity Registrant Name	New Bancorp, Inc.
Entity Central Index Key	0001644482
Trading Symbol	nwbb
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)		696,600
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false

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Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 1,763	$ 7,132
Interest-earning demand deposits	1,645	1,678
Federal funds sold	5,817
Cash and cash equivalents	9,225	8,810
Interest-earning time deposits in banks	992	992
Loans held for sale	370
Loans, net of allowance for loan losses of $1,196 and $1,155 at June 30, 2016 and December 31, 2015	76,369	76,575
Premises and equipment	2,004	2,024
Federal Home Loan Bank stock	468	468
Foreclosed real estate held for sale, net		245
Accrued interest receivable	188	217
Bank owned life insurance	5,332	5,247
Mortgage servicing rights	422	317
Prepaid expenses and other assets	4,231	150
Total assets	99,601	95,045
Liabilities
Demand	24,290	20,435
Savings and money market accounts	18,780	18,918
Time	33,580	32,913
Total deposits	76,650	72,266
Federal Home Loan Bank advances	6,927	6,927
Accrued nonqualified benefit plans	132	139
Other liabilities	1,091	639
Total liabilities	84,800	79,971
Commitments and Contigencies
Redeemable common stock held by Employee Stock Ownership Plan (ESOP)	44	44
Shareholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued
Common stock, $0.01 par value, 50,000,000 shares authorized, 696,600 shares issued and outstanding	7	7
Additional paid-in capital	5,754	5,754
Unearned ESOP shares	(523)	(523)
Retained earnings	9,563	9,836
Total shareholders' equity	14,801	15,074
Less maximum cash obligation related to ESOP shares	(44)	(44)
Total shareholders' equity less maximum cash obligation related to ESOP shares	14,757	15,030
Total liabilities and shareholders' equity	$ 99,601	$ 95,045

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Allowance for loan losses	$ 1,196,000	$ 1,155,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	696,600	696,600
Common stock, shares outstanding (in shares)	696,600	696,600

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest Income
Loans	$ 808	$ 782	$ 1,633	$ 1,582
Interest-bearing deposits	15	9	27	21
Total interest income	823	791	1,660	1,603
Interest Expense
Deposits	150	155	303	287
Borrowings	33	34	66	69
Total interest expense	183	189	369	356
Net Interest Income	640	602	1,291	1,247
Provision for Loan Losses
Net Interest Income After Provision for Loan Losses	640	602	1,291	1,247
Noninterest Income
Service charges and fees	79	88	141	155
Gain on sale of loans	317	144	335	245
Gain+A44 on sale of foreclosed real estate, net	14		14
Income from bank owned life insurance	43	41	85	82
Loan servicing fees, net	10	24	28	38
Other operating	9	7	17	30
Total noninterest income	472	304	620	550
Noninterest Expense
Salaries and employee benefits	610	456	1,176	899
Occupancy and equipment	115	117	232	241
Data processing fees	101	97	202	193
Franchise taxes	10	10	19	19
FDIC insurance premiums	19	19	39	37
Insurance premiums	11	13	24	25
Professional services	128	48	252	100
Impairment losses and expenses of foreclosed real estate		31	5	40
Other	134	75	235	142
Total noninterest expense	1,128	866	2,184	1,696
Income (Loss) Before Federal Income Taxes (Credits)	(16)	40	(273)	101
Federal Income Taxes
Net Income (Loss)	$ (16)	$ 40	$ (273)	$ 101
Loss per share - basic and diluted (in dollars per share)	$ (0.02)		$ (0.42)
Weighted-average shares outstanding - basic and diluted (in shares)	644,247		644,247

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income (loss)	$ (16)	$ 40	$ (273)	$ 101
Other comprehensive income:
Comprehensive income (loss)	$ (16)	$ 40	$ (273)	$ 101

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Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Shares Acquired by Employee Stock Ownership Plan [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Maximum Cash Obligation Related to ESOP Shares [Member]	Total
Balance at Dec. 31, 2015	$ 7	$ 5,754	$ (523)	$ 9,836	$ (44)	$ 15,030	$ 15,030
Net loss for the six months ended June 30, 2016				(273)		(273)	(273)
Balance at Jun. 30, 2016	$ 7	$ 5,754	$ (523)	$ 9,563	$ (44)	$ 14,757	$ 14,757

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net income (loss)	$ (273)	$ 101
Items not requiring (providing) cash:
Depreciation and amortization	73	105
Amortization of deferred loan origination fees and costs, net		4
Gain on sale of foreclosed real estate	(14)
Gain on sale of loans originated for sale	(335)	(245)
Proceeds from sales of loans originated for sale	1,955	6,105
Loans originated for sale	(6,117)	(6,077)
Increase in cash surrender value of life insurance	(85)	(82)
Impairment loss on foreclosed real estate		7
Changes in:
Accrued interest receivable	29	(1)
Prepaid expenses and other assets	(79)	(309)
Other liabilities	445	(2,295)
Net cash used in operating activities	(4,401)	(2,687)
Investing Activities
Proceeds from sales of loans		2,135
Net change in loans	206	(2,043)
Proceeds from redemption of FHLB stock		210
Purchase of premises and equipment	(33)	(12)
Proceeds from sale of foreclosed assets	259
Net cash provided by investing activities	432	290
Financing Activities
Net increase in deposits	4,384	5,441
Net change in federal funds purchased		(2,500)
Net cash provided by financing activities	4,384	2,941
Increase in Cash and Cash Equivalents	415	544
Cash and Cash Equivalents, Beginning of Period	8,810
Cash and Cash Equivalents, End of Period	9,225	8,525
Supplemental Disclosure of Cash Flow Information
Interest on deposits and borrowings	377	355
Supplemental Disclosure of Noncash Investing Activities
Transfers from loans to real estate acquired through foreclosure		338
Transfers from loans to loans held for sale		$ 2,057

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Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

Note 1: Basis of Presentation

The accompanying condensed consolidated balance sheet of New Bancorp, Inc. (the Company) as of December 31, 2015, which has been derived from audited financial statements, and the unaudited condensed consolidated financial statements of the Company as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the financial statements and notes thereto of the Company for the year ended December 31, 2015 included in the Company’s Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited consolidated financial statements have been included to present fairly the financial position as of June 30, 2016and the results of operations for the three and six months ended June 30, 2016and 2015 and cash flows for the six months ended June 30, 2016 and 2015. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2016 and 2015 herein, are not necessarily indicative of the results of operations to be expected for the year, ending December 31, 2016.

Use of Estimates

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

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

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Note 2 - Securities

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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

Note 2: Securities

The Company had no investment securities at June 30, 2016 and December 31, 2015. The Company had no sales of investment securities during the three and six month periods ended June 30, 2016 and 2015.

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Note 3 - Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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

Note 3: Loans and Allowance for Loan Losses

The Company’s loan and allowance for loan losses policies are as follows:

Loans Receivable

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those 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 nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Bank’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

Classes of loans at June 30, 2016 and December 31, 2015 include:

	June 30, 2016			December 31, 2015
	(In thousands)
Real estate loans
Residential	$	43,378		$	41,972
Commercial		25,882			27,319
Construction and land		7,094			7,196
Commercial business		462			1,354
Consumer and other		806			321
Total loans		77,622			78,162
Less:
Net deferred loan fees, premiums and discounts		(57	)		(2	)
Undisbursed loans in process		-			(430	)
Allowance for loan losses		(1,196	)		(1,155	)
Net loans	$	76,369		$	76,575

The risk characteristics applicable to each segment of the loan portfolio are described below:

Residential

Real Estate:

The residential real estate loans are generally secured by owner-occupied 1-4 family residences. The Bank’s portfolio of home equity loans totaled $4.3 million and $4.2 million at June 30, 2016 and December 31, 2015, respectively, the preponderance of which were secured by first liens, or by second liens on properties where the Bank also holds the first lien. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Bank’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Commercial Real Estate:

Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Bank’s market area.

Construction and Land:

Construction and land loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Bank until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Bank’s market area.

Commercial

Business

:

The commercial business loan portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.

Consumer:

The consumer loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Bank’s market area) and the creditworthiness of a borrower.

The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and six months ended June 30, 2016 and 2015.

	For the Three Months Ended June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land			Commercial Business			Consumer			Total
	(In thousands)
Allowance for loan losses:
Balance, April 1, 2016	$	739	$	311	$	91		$	7		$	7		$	1,155
Provision for loan losses		27		20		(44	)		(1	)		(2	)		-
Charge-offs		-		-		-			-			-			-
Recoveries		-		-		41			-			-			41
Balance, June 30, 2016	$	766	$	331	$	88		$	6		$	5		$	1,196

	For the Six Months Ended June 30, 2016
	Real Estate
	Residential		Commercial			Construction and Land			Commercial Business			Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, January 1, 2016	$	648	$	383		$	102		$	19		$	3	$	1,155
Provision for loan losses		118		(52	)		(55	)		(13	)		2		-
Charge-offs		-		-			-			-			-		-
Recoveries		-		-			41			-			-		41
Balance, June 30, 2016	$	766	$	331		$	88		$	6		$	5	$	1,196

	For the Three Months Ended June 30, 2015
	Real Estate
	Residential		Commercial			Construction and Land			Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, April 1, 2015	$	564	$	432		$	123		$	22	$	6	$	1,147
Provision for loan losses		27		(11	)		(17	)		1		0		-
Charge-offs		-		-			-			-		-		-
Recoveries		8		-			-			-		-		8
Balance, June 30, 2015	$	599	$	421		$	106		$	23	$	6	$	1,155

	For the Six Months Ended June 30, 2015
	Real Estate
	Residential		Commercial		Construction and Land			Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, January 1, 2015	$	575	$	418	$	126		$	23	$	5	$	1,147
Provision for loan losses		16		3		(20	)		0		1		-
Charge-offs		-		-		-			-		-		-
Recoveries		8		-		-			-		-		8
Balance, June 30. 2015	$	599	$	421	$	106		$	23	$	6	$	1,155

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2016 and December 31, 2015:

	At June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	79	$	-	$	-	$	-	$	-	$	79
Ending balance, collectively evaluated for impairment	$	687	$	331	$	88	$	6	$	5	$	1,117
Loans:
Ending balance	$	43,378	$	25,882	$	7,094	$	462	$	806	$	77,622
Ending balance; individually evaluated for impairment	$	1,735	$	240	$	1,547	$	-	$	-	$	3,522
Ending balance; collectively evaluated for impairment	$	41,643	$	25,642	$	5,547	$	462	$	806	$	74,100

	At December 31, 2015
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	20	$	-	$	-	$	-	$	-	$	20
Ending balance, collectively evaluated for impairment	$	628	$	383	$	102	$	19	$	3	$	1,135
Loans:
Ending balance	$	41,972	$	27,319	$	7,196	$	1,354	$	321	$	78,162
Ending balance; individually evaluated for impairment	$	1,763	$	229	$	1,751	$	-	$	-	$	3,743
Ending balance; collectively evaluated for impairment	$	40,209	$	27,090	$	5,445	$	1,354	$	321	$	74,419

Internal Risk Categories

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

Pass

:

Loans categorized as Pass are higher quality loans that do not fit any of the other categories described below.

Special Mention/Watch

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

Substandard

:These are loans with a well-defined weakness, where the Bank has a serious concern about the borrower’s ability to make full repayment if the weaknesses are not corrected. The loan may contain a flaw, which could impact the borrower’s ability to repay, or the borrower’s continuance as a “going concern”. When collateral values are not sufficient to secure the loan and other weaknesses are present, the loan may be rated substandard. A loan will also be graded substandard when full repayment is expected, but it must come from the liquidation of collateral. All loans that are past due 90 days or more are classified as substandard.

Doubtful

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

Loss

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

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of June 30, 2016 and December 31, 2015:

	June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	41,746	$	24,747	$	7,094	$	462	$	786	$	74,835
Special mention/Watch		647		-		-		-		20		667
Substandard		985		1,135		-		-		-		2,120
Doubtful		-		-		-		-		-		-
Total	$	43,378	$	25,882	$	7,094	$	462	$	806	$	77,622

	December 31, 2015
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	39,842	$	26,178	$	7,022	$	1,354	$	294	$	74,690
Special mention/Watch		686		529		8		-		27		1,250
Substandard		1,444		612		166		-		-		2,222
Doubtful		-		-		-		-		-		-
Total	$	41,972	$	27,319	$	7,196	$	1,354	$	321	$	78,162

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

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2016 and December 31, 2015:

	June 30, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
	(In thousands)
Real estate
Residential	$	101	$	-	$	426	$	532	$	42,846	$	43,378	$	-
Commercial		-		5		-		-		25,882		25,882		-
Construction and land		-		-		-		-		7,094		7,094		-
Commercial business		-		-		-		-		462		462		-
Consumer		-		-		-		-		806		806		-
Total	$	101	$	5	$	426	$	532	$	77,090	$	77,622	$	-

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
	(In thousands)
Real estate
Residential	$	455	$	100	$	598	$	1,153	$	40,819	$	41,972	$	-
Commercial		-		7		-		7		27,312		27,319		-
Construction and land		-		-		166		166		7,030		7,196		-
Commercial business		-		-		-		-		1,354		1,354		-
Consumer		-		-		-		-		321		321		-
Total	$	455	$	107	$	764	$	1,326	$	76,836	$	78,162	$	-

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming multi-family and commercial loans but also include loans modified in troubled debt restructurings.

											For the three Months Ended
	As of and for the three months ended June 30, 2016										June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Balance of Impaired Loans		Interest Income Recognized		Average Balance of Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,274	$	1,308	$	-	$	1,280	$	14	$	1,415	$	14
Commercial		240		240		-		241		4		252		3
Construction and land		1,547		1,547		-		1,554		21		1,832		21
Commercial business		-		-		-				-		-		-
Consumer		-		-		-		-		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		461		478		79		468		7		31		-
Commercial		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-
Totals	$	3,522	$	3,572	$	79	$	3,543	$	46	$	3,530	$	38

											For the six Months Ended
	As of and for the six months ended June 30, 2016										June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Balance of Impaired Loans		Interest Income Recognized		Average Balance of Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,274	$	1,308	$	-	$	1,286	$	28	$	1,413	$	31
Commercial		240		240		-		237		8		239		8
Construction and land		1,547		1,547		-		1,562		42		1,840		43
Commercial business		-		-		-				-		-		-
Consumer		-		-		-		-		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		461		478		79		469		8		33		2
Commercial		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-
Totals	$	3,522	$	3,572	$	79	$	3,554	$	86	$	3,525	$	84

The following table presents impaired loans as of December 31, 2015:

	As of December 31, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,607	$	1,647	$	-
Commercial		229		229		-
Construction and land		1,751		1,751		-
Commercial business		-		-		-
Consumer		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		156		166		20
Commercial		-		-		-
Construction and land		-		-		-
Commercial business		-		-		-
Consumer		-		-		-
Totals	$	3,743	$	3,793	$	20

The following table presents the Company’s nonaccrual loans at June 30, 2016 and December 31, 2015. The table excludes performing troubled debt restructurings.

	June 30, 2016		December 31, 2015
	(In thousands)
Real estate loans
Residential	$	985	$	987
Commercial		5		7
Construction and land		-		166
Commercial business		-		-
Consumer and other		-		-
Total nonaccrual	$	990	$	1,160

At June 30, 2016 and December 31, 2015, the Company had certain loans that were modified as troubled debt restructurings (TDRs) and were impaired. The modification of terms of such loans generally included one or a combination of the following: an extension of the maturity date or a reduction of the stated interest rate.

During the three and six months ended June 30, 2016 there were no new loan modifications classified as troubled debt restructurings. There were no new loan modifications classified as TDRs during the three months ended June 30, 2015.

The following table presents information regarding TDRs by class for the six months ended June 30, 2015. Newly classified TDRs during the six months ended June 30, 2015 were as follows:

	June 30, 2015 (Unaudited)
	Number of Contracts		Pre- Modification Balance		Post- Modification Balance
	(In thousands)
Real estate
Residential		-	$	-	$	-
Commercial		1		42		42
Construction and land		-		-		-
Commercial business		-		-		-
Consumer		-		-		-
		1	$	42	$	42

The TDRs described above did not increase the allowance for loan losses or result in a charge-off during the three and six months ended June 30, 2015.

The Company had no TDRs modified in the twelve months ended June 30, 2016 and 2015 that subsequently defaulted. A loan is considered to be in payment default once it is 30 days contractually past due under the loan’s modified terms.

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

Foreclosed real estate held for sale consisted of residential real estate at December 31, 2015. There were $342,000 and $423,000 of residential real estate loans in the process of foreclosure at June 30, 2016 and December 31, 2015, respectively.

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Note 4 - Regulatory Matters

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 4: Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory- and possibly additional discretionary- actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

At June 30, 2016 and December 31, 2015, quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below), of total capital, Tier 1 capital and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 leverage capital to average total assets.

Basel III was effective for the Co

mpany

on January 1, 2015. Basel III requires the Co

mpany

and the Bank to maintain minimum amounts and ratio

s

of common equity Tier 1 capital to risk weighted assets, as defined in the regulation. Under the new Basel III rules, in order to avoid limitations on capital distributions, including dividends, the Co

mpany

must hold a capital conservation buffer above the adequately capitalized common equity Tier 1 capital to risk-weighted assets ratio. The capital conservation buffer is being

phased in from zero percent to 2.50 percent by 2019. Under Basel III, the Co

mpany

and Bank elected to opt-out of including accumulated other comprehensive income in

regulatory capital.

Management believes, as of June 30, 2016 (unaudited) and December 31, 2015, that the Bank meets all capital adequacy requirements to which it is subject.

As of June 30, 2016 (unaudited) and December 31, 2015, the most recent notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier I and Tier I leverage capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
As of June 30, 2016
Total Capital
(to Risk-Weighted Assets)	$	14,079		18.3	%	$	6,142		8.0	%	$	7,678		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	13,116		17.1	%	$	4,607		6.0	%	$	6,142		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	13,116		17.1	%	$	3,455		4.5	%	$	4,990		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	13,116		13.3	%	$	3,946		4.0	%	$	4,932		5.0	%
As of December 31, 2015
Total Capital
(to Risk-Weighted Assets)	$	14,072		21.3	%	$	5,295		8.0	%	$	6,618		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	13,241		20.0	%	$	3,971		6.0	%	$	5,295		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	13,241		20.0	%	$	2,978		4.5	%	$	4,302		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	13,241		13.9	%	$	3,801		4.0	%	$	4,752		5.0	%

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Note 5 - Disclosures About Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 5: Disclosures about Fair Value of Assets and Liabilities

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

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

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

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

Nonrecurring Measurements

The following table presents fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which fair value measurements fall at June 30, 2016 and December 31, 2015:

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Impaired loans	$	382	$	-	$	-	$	382
December 31, 2015
Impaired loans	$	136	$	-	$	-	$	136
Foreclosed assets held for sale	$	245	$	-	$	-	$	245

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

Collateral-dependent Impaired Loans, Net of ALLL

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.

The Bank considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by management. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by management by comparison to historical results.

Foreclosed

Real Estate

Held for Sale

Foreclosed real estate held for sale is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of foreclosed real estate is based on appraisals or evaluations. Foreclosed real estate is classified within Level 3 of the fair value hierarchy.

Appraisals of foreclosed real estate are obtained when the real estate is acquired and subsequently as deemed necessary by management. Appraisals are reviewed for accuracy and consistency by the management. Appraisers are selected from the list of approved appraisers maintained by management.

Unobservable (Level 3) Inputs

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

	Fair Value		Valuation Technique	Unobservable Inputs	Range
	(In thousands)
June 30, 2016
Impaired loans (collateral dependent)	$	382	Marketable comparable properties	Marketability discount		9%	-	15%
December 31, 2015
Impaired loans (collateral dependent)	$	136	Marketable comparable properties	Marketability discount		10%	-	15%
Foreclosed real estate		245	Marketable comparable properties	Comparability adjustments			9%

Fair Value of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and December 31, 2015.

					Fair Value Measurement Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
			(In thousands)
June 30, 2016
Financial assets
Cash and due from banks	$	1,763	$	1,763	$	1,763	$	-	$	-
Interest-earning demand deposits		1,645		1,645		1,645		-		-
Federal funds sold		5,817		5,817		5,817		-		-
Interest-earning time deposits in banks		992		992		-		992		-
Loans held for sale		370		370		-		-		370
Loans, net		76,369		76,902		-		-		76,902
Federal Home Loan Bank stock		468		468		-		468		-
Accrued interest receivable		188		188		-		188		-
Mortgage servicing rights		422		422		-		-		422
Financial liabilities
Deposits		76,650		77,334		43,070		34,264		-
Advances from the Federal Home Loan Bank		6,927		7,158		-		7,158		-
Accrued interest payable		3		3		-		3		-
December 31, 2015
Financial assets
Cash and due from banks	$	7,132	$	7,132	$	7,132	$	-	$	-
Interest-earning demand deposits		1,678		1,678		1,678		-		-
Interest-earning time deposits in banks		992		992		-		992		-
Loans, net		76,575		77,086		-		-		77,086
Federal Home Loan Bank stock		468		468		-		468		-
Accrued interest receivable		217		217		-		217		-
Mortgage servicing rights		317		317		-		-		317
Financial liabilities
Deposits		72,266		72,708		39,353		33,355		-
Advances from the Federal Home Loan Bank		6,927		7,023		-		7,023		-
Accrued interest payable		11		11		-		11		-

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

Cash and Due from Banks, Interest-earning Demand Deposits and Federal Funds Sold

The carrying amount approximates fair value. 

Interest-earning Time Deposits in Banks

The carrying amount approximates fair value. 

Loans, net 

Fair value is estimated by discounting the future cash flows using the market rates at which similar notes would be made to borrowers with similar credit ratings and for the same remaining maturities. The market rates used are based on current rates the Bank would impose for similar loans and reflect a market participant assumption about risks associated with nonperformance, illiquidity, and the structure and term of the loans along with local economic and market conditions.

Loans Held for Sale

The carrying amount approximates fair value due to the insignificant time between origination and sale.

Federal Home Loan Bank Stock

Fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities.

Accrued Interest Receivable and Payable

The carrying amount approximates fair value. The carrying amount is determined using the interest rate, balance and last payment date.

Mortgage Servicing Rights

Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed and default rate.

Deposits

Fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from a knowledgeable independent third party and reviewed by the Bank. The rates were the average of current rates offered by local competitors of the Bank.

The estimated fair value of demand, NOW, savings and money market deposits is the book value since rates are regularly adjusted to market rates and amounts are payable on demand at the reporting date.

Federal Home Loan Bank Advances

Fair value is estimated by discounting the future cash flows using rates of similar advances with similar maturities. These rates were obtained from current rates offered by the Federal Home Loan Bank.

Commitments to Originate Loans, Letters of Credit and Lines of Credit

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

The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. 

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Note 6 - Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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

Note 6: Recent Accounting Pronouncements

The Company is an emerging growth company and as such will be subject to the effective dates noted for the private companies if they differ from the effective dates noted for public companies.

FASB ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March, 2016 the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-02-12, “Narrow-Scope Improvements and Practical Expedients” which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. This ASU also provides a practical expedient for contract modifications.

The amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The Company is currently evaluating the impact of adopting the guidance.

FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”. For public business entities, the amendments in this update include the elimination of the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for

financial instruments measured at amortized cost on the balance sheet, the requirement to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, the requirement to present separately in other comprehensive income the portion of the total change in the 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, the requirement for separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or

loans and receivables) on the balance sheet or accompanying notes to the financial statements, and the amendments clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets.

For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption of the amendments in this update is not permitted, except that early application by public business entities to financial statements of fiscal years or interim periods that have not yet been issued or, by all other entities, that have not yet been made available for issuance are permitted as of the beginning of the fiscal year of adoption for the following amendment: An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. An entity should apply the amendments to this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements.

FASB ASU 2016-02, Leases

In February 2016 the FASB issued ASU 2016-02, “Leases”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:

● A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and

● A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers.

The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing.

Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements.

FASB ASU 2016-13, Financial Instruments – Credit Losses

 

In June 2016, FASB issued ASU 2016-13, “

Financial Instruments - Credit Losses”

. The amendments in this Update replace the incurred loss model with a methodology that reflects expedited credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company's financial position and results of operations.

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Note 7 - Loss Per Share

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 7: Loss Per Share

Basic loss per share (“LPS”) is calculated by dividing net loss applicable to common stock by the weighted-average number of shares of common stock outstanding during the period. Unallocated common shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for basic and diluted LPS calculations until they are committed to be released.

Loss per share for the three and six months ended June 30, 2016 was $0.02 and $0.42, respectively, calculated using 696,600 average shares issued, less 52,353 unallocated average shares held by the ESOP for each period. The Company had no dilutive or potentially dilutive securities at June 30, 2016.

Earnings per share disclosures are not applicable to the three- and six-month periods ended June 30, 2015, because the Company did not complete the conversion to stock form until October 19, 2015.

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Note 8 - Employee Stock Ownership Plan

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

Note 8: Employee Stock Ownership Plan

As part of the Company’s stock conversion, shares were purchased by the ESOP with a loan from New Bancorp. All employees of the Bank meeting certain tenure requirements are entitled to participate in the ESOP. Compensation expense related to the ESOP was $8,000 and $13,000 for the three and six-month periods ended June 30, 2016, respectively

.

The stock price at the formation date was $10.00. The aggregate fair value of the 52,353 unallocated shares was $672,000 based on the $12.84 closing price of our common stock on June 30, 2016.

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Note 9 - Change in Corporate Form

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Change in Corporate Form [Text Block]

Note 9: Change in Corporate Form

On October 19, 2015, the Bank converted into a federal stock savings bank and established a stock holding company, New Bancorp, Inc., as parent of the Bank.

The Bank converted to the stock form of ownership, followed by the issuance of all of the Bank’s outstanding stock to New Bancorp, Inc. The Bank became the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock pursuant to an independent

valuation appraisal of the Bank and the Company. The stock was priced at $10.00 per share. In addition, the Bank’s board of directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering. The Conversion was completed on October 19, 2015 and resulted in the issuance of 696,600 common shares by the Company.

The cost of the Conversion and issuing the capital stock totaled $1.2 million and was deducted from the proceeds of the offering.

In accordance with OCC regulations, at the time of the Conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible holders who continue to maintain their accounts at the Bank after the Conversion. The liquidation account will be reduced annually to the extent that eligible

account holders have reduced their qualifying deposits. Subsequent increases will not restore an

eligible account holder’s interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount.

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

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

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

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

New Accounting Pronouncements, Policy [Policy Text Block]

The Company is an emerging growth company and as such will be subject to the effective dates noted for the private companies if they differ from the effective dates noted for public companies.

FASB ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09,”Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In March, 2016 the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-02-12, “Narrow-Scope Improvements and Practical Expedients” which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. This ASU also provides a practical expedient for contract modifications.

The amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The Company is currently evaluating the impact of adopting the guidance.

FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. For public business entities, the amendments in this update include the elimination of the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for

financial instruments measured at amortized cost on the balance sheet, the requirement to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, the requirement to present separately in other comprehensive income the portion of the total change in the 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, the requirement for separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or

loans and receivables) on the balance sheet or accompanying notes to the financial statements, and the amendments clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets.

For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption of the amendments in this update is not permitted, except that early application by public business entities to financial statements of fiscal years or interim periods that have not yet been issued or, by all other entities, that have not yet been made available for issuance are permitted as of the beginning of the fiscal year of adoption for the following amendment: An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. An entity should apply the amendments to this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements.

FASB ASU 2016-02, Leases

In February 2016 the FASB issued ASU 2016-02, Leases. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:

● A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and

● A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606,

Revenue from Contracts with Customers

.

The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing.

Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the impact of adopting this guidance on the Company’s financial statements.

FASB ASU 2016-03, Financial Instruments – Credit Losses

 

In June 2016, FASB issued ASU 2016-03,

Financial Instruments - Credit Losses

. The amendments in this Update replace the incurred loss model with a methodology that reflects expedited credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company's financial position and results of operations.

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Note 3 - Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Notes Tables

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

	June 30, 2016			December 31, 2015
	(In thousands)
Real estate loans
Residential	$	43,378		$	41,972
Commercial		25,882			27,319
Construction and land		7,094			7,196
Commercial business		462			1,354
Consumer and other		806			321
Total loans		77,622			78,162
Less:
Net deferred loan fees, premiums and discounts		(57	)		(2	)
Undisbursed loans in process		-			(430	)
Allowance for loan losses		(1,196	)		(1,155	)
Net loans	$	76,369		$	76,575

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

	For the Three Months Ended June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land			Commercial Business			Consumer			Total
	(In thousands)
Allowance for loan losses:
Balance, April 1, 2016	$	739	$	311	$	91		$	7		$	7		$	1,155
Provision for loan losses		27		20		(44	)		(1	)		(2	)		-
Charge-offs		-		-		-			-			-			-
Recoveries		-		-		41			-			-			41
Balance, June 30, 2016	$	766	$	331	$	88		$	6		$	5		$	1,196

	For the Six Months Ended June 30, 2016
	Real Estate
	Residential		Commercial			Construction and Land			Commercial Business			Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, January 1, 2016	$	648	$	383		$	102		$	19		$	3	$	1,155
Provision for loan losses		118		(52	)		(55	)		(13	)		2		-
Charge-offs		-		-			-			-			-		-
Recoveries		-		-			41			-			-		41
Balance, June 30, 2016	$	766	$	331		$	88		$	6		$	5	$	1,196

	For the Three Months Ended June 30, 2015
	Real Estate
	Residential		Commercial			Construction and Land			Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, April 1, 2015	$	564	$	432		$	123		$	22	$	6	$	1,147
Provision for loan losses		27		(11	)		(17	)		1		0		-
Charge-offs		-		-			-			-		-		-
Recoveries		8		-			-			-		-		8
Balance, June 30, 2015	$	599	$	421		$	106		$	23	$	6	$	1,155

	For the Six Months Ended June 30, 2015
	Real Estate
	Residential		Commercial		Construction and Land			Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Balance, January 1, 2015	$	575	$	418	$	126		$	23	$	5	$	1,147
Provision for loan losses		16		3		(20	)		0		1		-
Charge-offs		-		-		-			-		-		-
Recoveries		8		-		-			-		-		8
Balance, June 30. 2015	$	599	$	421	$	106		$	23	$	6	$	1,155

	At June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	79	$	-	$	-	$	-	$	-	$	79
Ending balance, collectively evaluated for impairment	$	687	$	331	$	88	$	6	$	5	$	1,117
Loans:
Ending balance	$	43,378	$	25,882	$	7,094	$	462	$	806	$	77,622
Ending balance; individually evaluated for impairment	$	1,735	$	240	$	1,547	$	-	$	-	$	3,522
Ending balance; collectively evaluated for impairment	$	41,643	$	25,642	$	5,547	$	462	$	806	$	74,100

	At December 31, 2015
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	20	$	-	$	-	$	-	$	-	$	20
Ending balance, collectively evaluated for impairment	$	628	$	383	$	102	$	19	$	3	$	1,135
Loans:
Ending balance	$	41,972	$	27,319	$	7,196	$	1,354	$	321	$	78,162
Ending balance; individually evaluated for impairment	$	1,763	$	229	$	1,751	$	-	$	-	$	3,743
Ending balance; collectively evaluated for impairment	$	40,209	$	27,090	$	5,445	$	1,354	$	321	$	74,419

Financing Receivable Credit Quality Indicators [Table Text Block]

	June 30, 2016
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	41,746	$	24,747	$	7,094	$	462	$	786	$	74,835
Special mention/Watch		647		-		-		-		20		667
Substandard		985		1,135		-		-		-		2,120
Doubtful		-		-		-		-		-		-
Total	$	43,378	$	25,882	$	7,094	$	462	$	806	$	77,622

	December 31, 2015
	Real Estate
	Residential		Commercial		Construction and Land		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	39,842	$	26,178	$	7,022	$	1,354	$	294	$	74,690
Special mention/Watch		686		529		8		-		27		1,250
Substandard		1,444		612		166		-		-		2,222
Doubtful		-		-		-		-		-		-
Total	$	41,972	$	27,319	$	7,196	$	1,354	$	321	$	78,162

Past Due Financing Receivables [Table Text Block]

	June 30, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
	(In thousands)
Real estate
Residential	$	101	$	-	$	426	$	532	$	42,846	$	43,378	$	-
Commercial		-		5		-		-		25,882		25,882		-
Construction and land		-		-		-		-		7,094		7,094		-
Commercial business		-		-		-		-		462		462		-
Consumer		-		-		-		-		806		806		-
Total	$	101	$	5	$	426	$	532	$	77,090	$	77,622	$	-

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
	(In thousands)
Real estate
Residential	$	455	$	100	$	598	$	1,153	$	40,819	$	41,972	$	-
Commercial		-		7		-		7		27,312		27,319		-
Construction and land		-		-		166		166		7,030		7,196		-
Commercial business		-		-		-		-		1,354		1,354		-
Consumer		-		-		-		-		321		321		-
Total	$	455	$	107	$	764	$	1,326	$	76,836	$	78,162	$	-

Impaired Financing Receivables [Table Text Block]

											For the three Months Ended
	As of and for the three months ended June 30, 2016										June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Balance of Impaired Loans		Interest Income Recognized		Average Balance of Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,274	$	1,308	$	-	$	1,280	$	14	$	1,415	$	14
Commercial		240		240		-		241		4		252		3
Construction and land		1,547		1,547		-		1,554		21		1,832		21
Commercial business		-		-		-				-		-		-
Consumer		-		-		-		-		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		461		478		79		468		7		31		-
Commercial		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-
Totals	$	3,522	$	3,572	$	79	$	3,543	$	46	$	3,530	$	38

											For the six Months Ended
	As of and for the six months ended June 30, 2016										June 30, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Balance of Impaired Loans		Interest Income Recognized		Average Balance of Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,274	$	1,308	$	-	$	1,286	$	28	$	1,413	$	31
Commercial		240		240		-		237		8		239		8
Construction and land		1,547		1,547		-		1,562		42		1,840		43
Commercial business		-		-		-				-		-		-
Consumer		-		-		-		-		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		461		478		79		469		8		33		2
Commercial		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-
Totals	$	3,522	$	3,572	$	79	$	3,554	$	86	$	3,525	$	84

	As of December 31, 2015
	Recorded Balance		Unpaid Principal Balance		Specific Allowance
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,607	$	1,647	$	-
Commercial		229		229		-
Construction and land		1,751		1,751		-
Commercial business		-		-		-
Consumer		-		-		-
Loans with a specific valuation allowance:
Real estate
Residential		156		166		20
Commercial		-		-		-
Construction and land		-		-		-
Commercial business		-		-		-
Consumer		-		-		-
Totals	$	3,743	$	3,793	$	20

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

	June 30, 2016		December 31, 2015
	(In thousands)
Real estate loans
Residential	$	985	$	987
Commercial		5		7
Construction and land		-		166
Commercial business		-		-
Consumer and other		-		-
Total nonaccrual	$	990	$	1,160

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	June 30, 2015 (Unaudited)
	Number of Contracts		Pre- Modification Balance		Post- Modification Balance
	(In thousands)
Real estate
Residential		-	$	-	$	-
Commercial		1		42		42
Construction and land		-		-		-
Commercial business		-		-		-
Consumer		-		-		-
		1	$	42	$	42

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Note 4 - Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2016

Notes Tables

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

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
As of June 30, 2016
Total Capital
(to Risk-Weighted Assets)	$	14,079		18.3	%	$	6,142		8.0	%	$	7,678		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	13,116		17.1	%	$	4,607		6.0	%	$	6,142		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	13,116		17.1	%	$	3,455		4.5	%	$	4,990		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	13,116		13.3	%	$	3,946		4.0	%	$	4,932		5.0	%
As of December 31, 2015
Total Capital
(to Risk-Weighted Assets)	$	14,072		21.3	%	$	5,295		8.0	%	$	6,618		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	13,241		20.0	%	$	3,971		6.0	%	$	5,295		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	13,241		20.0	%	$	2,978		4.5	%	$	4,302		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	13,241		13.9	%	$	3,801		4.0	%	$	4,752		5.0	%

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Note 5 - Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Notes Tables

Fair Value Measurements, Nonrecurring [Table Text Block]

			Fair Value Measurement Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
June 30, 2016
Impaired loans	$	382	$	-	$	-	$	382
December 31, 2015
Impaired loans	$	136	$	-	$	-	$	136
Foreclosed assets held for sale	$	245	$	-	$	-	$	245

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Fair Value		Valuation Technique	Unobservable Inputs	Range
	(In thousands)
June 30, 2016
Impaired loans (collateral dependent)	$	382	Marketable comparable properties	Marketability discount		9%	-	15%
December 31, 2015
Impaired loans (collateral dependent)	$	136	Marketable comparable properties	Marketability discount		10%	-	15%
Foreclosed real estate		245	Marketable comparable properties	Comparability adjustments			9%

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

					Fair Value Measurement Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
			(In thousands)
June 30, 2016
Financial assets
Cash and due from banks	$	1,763	$	1,763	$	1,763	$	-	$	-
Interest-earning demand deposits		1,645		1,645		1,645		-		-
Federal funds sold		5,817		5,817		5,817		-		-
Interest-earning time deposits in banks		992		992		-		992		-
Loans held for sale		370		370		-		-		370
Loans, net		76,369		76,902		-		-		76,902
Federal Home Loan Bank stock		468		468		-		468		-
Accrued interest receivable		188		188		-		188		-
Mortgage servicing rights		422		422		-		-		422
Financial liabilities
Deposits		76,650		77,334		43,070		34,264		-
Advances from the Federal Home Loan Bank		6,927		7,158		-		7,158		-
Accrued interest payable		3		3		-		3		-
December 31, 2015
Financial assets
Cash and due from banks	$	7,132	$	7,132	$	7,132	$	-	$	-
Interest-earning demand deposits		1,678		1,678		1,678		-		-
Interest-earning time deposits in banks		992		992		-		992		-
Loans, net		76,575		77,086		-		-		77,086
Federal Home Loan Bank stock		468		468		-		468		-
Accrued interest receivable		217		217		-		217		-
Mortgage servicing rights		317		317		-		-		317
Financial liabilities
Deposits		72,266		72,708		39,353		33,355		-
Advances from the Federal Home Loan Bank		6,927		7,023		-		7,023		-
Accrued interest payable		11		11		-		11		-

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Note 2 - Securities (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Available-for-sale Securities	$ 0		$ 0
Proceeds from Sale of Available-for-sale Securities	$ 0	$ 0

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Note 3 - Loans and Allowance for Loan Losses (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Residential Portfolio Segment [Member] | Home Equity Loan [Member]
Loans and Leases Receivable, Collateral for Secured Borrowings	$ 4,300,000		$ 4,300,000		$ 4,200,000
Residential Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Number of Contracts	0			1
Financing Receivable, Modifications, Subsequent Default, Number of Contracts		0	0	0
Allowance for Credit Losses, Change in Method of Calculating Impairment		$ 0		$ 0
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down		$ 0		$ 0
Mortgage Loans in Process of Foreclosure, Amount	$ 342,000		$ 342,000		$ 423,000

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Note 3 - Loans and Allowance for Loan Losses - Classes of Loans (Details) - USD ($)	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Residential Portfolio Segment [Member]
Loans receivable, gross	$ 43,378,000		$ 41,972,000
Allowance for loan losses	(766,000)	$ (739,000)	(648,000)	$ (599,000)	$ (564,000)	$ (575,000)
Commercial Real Estate Portfolio Segment [Member]
Loans receivable, gross	25,882,000		27,319,000
Allowance for loan losses	(331,000)	(311,000)	(383,000)	(421,000)	(432,000)	(418,000)
Construction and Land Real Estate [Member]
Loans receivable, gross	7,094,000		7,196,000
Allowance for loan losses	(88,000)	(91,000)	(102,000)	(106,000)	(123,000)	(126,000)
Commercial Portfolio Segment [Member]
Loans receivable, gross	462,000		1,354,000
Allowance for loan losses	(6,000)	(7,000)	(19,000)	(23,000)	(22,000)	(23,000)
Consumer Portfolio Segment [Member]
Loans receivable, gross	806,000		321,000
Allowance for loan losses	(5,000)	(7,000)	(3,000)	(6,000)	(6,000)	(5,000)
Loans receivable, gross	77,622,000		78,162,000
Net deferred loan fees, premiums and discounts	(57,000)		(2,000)
Undisbursed loans in process			(430,000)
Allowance for loan losses	(1,196,000)	$ (1,155,000)	(1,155,000)	$ (1,155,000)	$ (1,147,000)	$ (1,147,000)
Net loans	$ 76,369,000		$ 76,575,000

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Note 3 - Loans and Allowance for Loan Losses - Activity in Allowance for Loan Losses and Recorded Investment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Residential Portfolio Segment [Member]
Balance	$ 739,000	$ 564,000	$ 648,000	$ 575,000
Provision (credit) for loan losses	27,000	27,000	118,000	16,000
Charge-offs
Recoveries		8,000		8,000
Balance	766,000	599,000	766,000	599,000
Ending balance, individually evaluated for impairment	79,000		79,000		$ 20,000
Ending balance, collectively evaluated for impairment	687,000		687,000		628,000
Ending balance	43,378,000		43,378,000		41,972,000
Ending balance; individually evaluated for impairment	1,735,000		1,735,000		1,763,000
Ending balance; collectively evaluated for impairment	41,643,000		41,643,000		40,209,000
Commercial Real Estate Portfolio Segment [Member]
Balance	311,000	432,000	383,000	418,000
Provision (credit) for loan losses	20,000	(11,000)	(52,000)	3,000
Charge-offs
Recoveries
Balance	331,000	421,000	331,000	421,000
Ending balance, individually evaluated for impairment
Ending balance, collectively evaluated for impairment	331,000		331,000		383,000
Ending balance	25,882,000		25,882,000		27,319,000
Ending balance; individually evaluated for impairment	240,000		240,000		229,000
Ending balance; collectively evaluated for impairment	25,642,000		25,642,000		27,090,000
Construction and Land Real Estate [Member]
Balance	91,000	123,000	102,000	126,000
Provision (credit) for loan losses	(44,000)	(17,000)	(55,000)	(20,000)
Charge-offs
Recoveries	41,000		41,000
Balance	88,000	106,000	88,000	106,000
Ending balance, individually evaluated for impairment
Ending balance, collectively evaluated for impairment	88,000		88,000		102,000
Ending balance	7,094,000		7,094,000		7,196,000
Ending balance; individually evaluated for impairment	1,547,000		1,547,000		1,751,000
Ending balance; collectively evaluated for impairment	5,547,000		5,547,000		5,445,000
Commercial Portfolio Segment [Member]
Balance	7,000	22,000	19,000	23,000
Provision (credit) for loan losses	(1,000)	1,000	(13,000)	0
Charge-offs
Recoveries
Balance	6,000	23,000	6,000	23,000
Ending balance, individually evaluated for impairment
Ending balance, collectively evaluated for impairment	6,000		6,000		19,000
Ending balance	462,000		462,000		1,354,000
Ending balance; individually evaluated for impairment
Ending balance; collectively evaluated for impairment	462,000		462,000		1,354,000
Consumer Portfolio Segment [Member]
Balance	7,000	6,000	3,000	5,000
Provision (credit) for loan losses	(2,000)	0	2,000	1,000
Charge-offs
Recoveries
Balance	5,000	6,000	5,000	6,000
Ending balance, individually evaluated for impairment
Ending balance, collectively evaluated for impairment	5,000		5,000		3,000
Ending balance	806,000		806,000		321,000
Ending balance; individually evaluated for impairment
Ending balance; collectively evaluated for impairment	806,000		806,000		321,000
Balance	1,155,000	1,147,000	1,155,000	1,147,000
Provision (credit) for loan losses
Charge-offs
Recoveries	41,000	8,000	41,000	8,000
Balance	1,196,000	$ 1,155,000	1,196,000	$ 1,155,000
Ending balance, individually evaluated for impairment	79,000		79,000		20,000
Ending balance, collectively evaluated for impairment	1,117,000		1,117,000		1,135,000
Ending balance	77,622,000		77,622,000		78,162,000
Ending balance; individually evaluated for impairment	3,522,000		3,522,000		3,743,000
Ending balance; collectively evaluated for impairment	$ 74,100,000		$ 74,100,000		$ 74,419,000

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Note 3 - Loans and Allowance for Loan Losses - Credit Risk Profile Based on Internal Rating Category (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Pass [Member] | Residential Portfolio Segment [Member]
Loans receivable, gross	$ 41,746	$ 39,842
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, gross	24,747	26,178
Pass [Member] | Construction and Land Real Estate [Member]
Loans receivable, gross	7,094	7,022
Pass [Member] | Commercial Portfolio Segment [Member]
Loans receivable, gross	462	1,354
Pass [Member] | Consumer Portfolio Segment [Member]
Loans receivable, gross	786	294
Pass [Member]
Loans receivable, gross	74,835	74,690
Special Mention [Member] | Residential Portfolio Segment [Member]
Loans receivable, gross	647	686
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, gross		529
Special Mention [Member] | Construction and Land Real Estate [Member]
Loans receivable, gross		8
Special Mention [Member] | Commercial Portfolio Segment [Member]
Loans receivable, gross
Special Mention [Member] | Consumer Portfolio Segment [Member]
Loans receivable, gross	20	27
Special Mention [Member]
Loans receivable, gross	667	1,250
Substandard [Member] | Residential Portfolio Segment [Member]
Loans receivable, gross	985	1,444
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, gross	1,135	612
Substandard [Member] | Construction and Land Real Estate [Member]
Loans receivable, gross		166
Substandard [Member] | Commercial Portfolio Segment [Member]
Loans receivable, gross
Substandard [Member] | Consumer Portfolio Segment [Member]
Loans receivable, gross
Substandard [Member]
Loans receivable, gross	2,120	2,222
Doubtful [Member] | Residential Portfolio Segment [Member]
Loans receivable, gross
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans receivable, gross
Doubtful [Member] | Construction and Land Real Estate [Member]
Loans receivable, gross
Doubtful [Member] | Commercial Portfolio Segment [Member]
Loans receivable, gross
Doubtful [Member] | Consumer Portfolio Segment [Member]
Loans receivable, gross
Doubtful [Member]
Loans receivable, gross
Residential Portfolio Segment [Member]
Loans receivable, gross	43,378	41,972
Commercial Real Estate Portfolio Segment [Member]
Loans receivable, gross	25,882	27,319
Construction and Land Real Estate [Member]
Loans receivable, gross	7,094	7,196
Commercial Portfolio Segment [Member]
Loans receivable, gross	462	1,354
Consumer Portfolio Segment [Member]
Loans receivable, gross	806	321
Loans receivable, gross	$ 77,622	$ 78,162

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Note 3 - Loans and Allowance for Loan Losses - Aging Analysis of the Recorded Investment in Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due	$ 101	$ 455
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due		100
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due	426	598
Residential Portfolio Segment [Member]
Loans past due	532	1,153
Current	42,846	40,819
Loans receivable, gross	43,378	41,972
90 days past due and still accruing
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due	5	7
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due
Commercial Real Estate Portfolio Segment [Member]
Loans past due		7
Current	25,882	27,312
Loans receivable, gross	25,882	27,319
90 days past due and still accruing
Construction and Land Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due
Construction and Land Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due
Construction and Land Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due		166
Construction and Land Real Estate [Member]
Loans past due		166
Current	7,094	7,030
Loans receivable, gross	7,094	7,196
90 days past due and still accruing
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due
Commercial Portfolio Segment [Member]
Loans past due
Current	462	1,354
Loans receivable, gross	462	1,354
90 days past due and still accruing
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due
Consumer Portfolio Segment [Member]
Loans past due
Current	806	321
Loans receivable, gross	806	321
90 days past due and still accruing
Financing Receivables, 30 to 59 Days Past Due [Member]
Loans past due	101	455
Financing Receivables, 60 to 89 Days Past Due [Member]
Loans past due	5	107
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans past due	426	764
Loans past due	532	1,326
Current	77,090	76,836
Loans receivable, gross	77,622	78,162
90 days past due and still accruing

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Note 3 - Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Residential Portfolio Segment [Member]
Recorded balance, with no valuation allowance	$ 1,274		$ 1,274		$ 1,607
Unpaid principal balance, with no valuation allowance	1,308		1,308		1,647
Average balance of impaired loans, without a valuation allowance	1,280	$ 1,415	1,286	$ 1,413
Interest income recognized, without a valuation allowance	14	14	28	31
Recorded balance, with a valuation allowance	461		461		156
Unpaid principal balance, with a valuation allowance	478		478		166
Specific allowance	79		79		20
Average balance of impaired loans, with a valuation allowance	468	31	469	33
Interest income recognized, with a valuation allowance	7		8	2
Commercial Real Estate Portfolio Segment [Member]
Recorded balance, with no valuation allowance	240		240		229
Unpaid principal balance, with no valuation allowance	240		240		229
Average balance of impaired loans, without a valuation allowance	241	252	237	239
Interest income recognized, without a valuation allowance	4	3	8	8
Recorded balance, with a valuation allowance
Unpaid principal balance, with a valuation allowance
Specific allowance
Average balance of impaired loans, with a valuation allowance
Interest income recognized, with a valuation allowance
Construction and Land Real Estate [Member]
Recorded balance, with no valuation allowance	1,547		1,547		1,751
Unpaid principal balance, with no valuation allowance	1,547		1,547		1,751
Average balance of impaired loans, without a valuation allowance	1,554	1,832	1,562	1,840
Interest income recognized, without a valuation allowance	21	21	42	43
Recorded balance, with a valuation allowance
Unpaid principal balance, with a valuation allowance
Specific allowance
Average balance of impaired loans, with a valuation allowance
Interest income recognized, with a valuation allowance
Commercial Portfolio Segment [Member]
Recorded balance, with no valuation allowance
Unpaid principal balance, with no valuation allowance
Average balance of impaired loans, without a valuation allowance
Interest income recognized, without a valuation allowance
Recorded balance, with a valuation allowance
Unpaid principal balance, with a valuation allowance
Specific allowance
Average balance of impaired loans, with a valuation allowance
Interest income recognized, with a valuation allowance
Consumer Portfolio Segment [Member]
Recorded balance, with no valuation allowance
Unpaid principal balance, with no valuation allowance
Average balance of impaired loans, without a valuation allowance
Interest income recognized, without a valuation allowance
Recorded balance, with a valuation allowance
Unpaid principal balance, with a valuation allowance
Specific allowance
Average balance of impaired loans, with a valuation allowance
Interest income recognized, with a valuation allowance
Specific allowance	79		79		20
Recorded balance	3,522		3,522		3,743
Unpaid principal balance	3,572		3,572		$ 3,793
Average balance of impaired loans	3,543	3,530	3,554	3,525
Interest income recognized	$ 46	$ 38	$ 86	$ 84

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Note 3 - Loans and Allowance for Loan Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Residential Portfolio Segment [Member]
Nonaccrual loans	$ 985	$ 987
Commercial Real Estate Portfolio Segment [Member]
Nonaccrual loans	5	7
Construction and Land Real Estate [Member]
Nonaccrual loans		166
Commercial Portfolio Segment [Member]
Nonaccrual loans
Consumer Portfolio Segment [Member]
Nonaccrual loans
Nonaccrual loans	$ 990	$ 1,160

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Note 3 - Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015 USD ($)
Residential Portfolio Segment [Member]
Number of contracts
Financing Receivable, Modifications, Number of Contracts
Commercial Real Estate Portfolio Segment [Member]
Number of contracts		1
Financing Receivable, Modifications, Number of Contracts		1
Pre-modification balance		$ 42
Post-modification balance		$ 42
Construction and Land Real Estate [Member]
Number of contracts
Financing Receivable, Modifications, Number of Contracts
Pre-modification balance
Post-modification balance
Commercial Portfolio Segment [Member]
Number of contracts
Financing Receivable, Modifications, Number of Contracts
Pre-modification balance
Post-modification balance
Consumer Portfolio Segment [Member]
Number of contracts
Financing Receivable, Modifications, Number of Contracts
Pre-modification balance
Post-modification balance
Number of contracts	0	1
Financing Receivable, Modifications, Number of Contracts	0	1
Pre-modification balance		$ 42
Post-modification balance		$ 42

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Note 4 - Regulatory Matters (Details Textual)	Jan. 01, 2019	Jun. 30, 2016
Scenario, Forecast [Member]
Capital Conservation Buffer	2.50%
Capital Conservation Buffer		0.00%

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Note 4 - Regulatory Matters - Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Capital	$ 14,079	$ 14,072
Capital to Risk Weighted Assets	18.30%	21.30%
Capital Required for Capital Adequacy	$ 6,142	$ 5,295
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital Required to be Well Capitalized	$ 7,678	$ 6,618
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier 1 Capital	$ 13,116	$ 13,241
Tier 1 Capital to Risk Weighted Assets	17.10%	20.00%
Tier 1 Risk Based Capital Required for Capital Adequacy	$ 4,607	$ 3,971
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier 1 Risk Based Capital Required to be Well Capitalized	$ 6,142	$ 5,295
Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Common Equity Tier I Capital	$ 13,116	$ 13,241
Common Equity Tier I Capital to Risk Weighted Assets	17.10%	20.00%
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy	$ 3,455	$ 2,978
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized	$ 4,990	$ 4,302
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Tier 1 Leverage Capital	$ 13,116	$ 13,241
Tier 1 Leverage Capital to Average Assets	13.30%	13.90%
Tier 1 Leverage Capital Required for Capital Adequacy	$ 3,946	$ 3,801
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier 1 Leverage Capital Required to be Well Capitalized	$ 4,932	$ 4,752
Tier I Leverage Capital Required to be Well Capitalized to Risk Weighted Assets	5.00%	5.00%

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Note 5 - Disclosures About Fair Value of Assets and Liabilities - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Impaired Loans, Collateral-Dependent [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, fair value, non-recurring basis
Impaired Loans, Collateral-Dependent [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, fair value, non-recurring basis
Impaired Loans, Collateral-Dependent [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, fair value, non-recurring basis	382	136
Impaired Loans, Collateral-Dependent [Member]
Assets, fair value, non-recurring basis	$ 382	136
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, fair value, non-recurring basis
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, fair value, non-recurring basis
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, fair value, non-recurring basis		245
Foreclosed Real Estate [Member]
Assets, fair value, non-recurring basis		$ 245

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Note 5 - Disclosures About Fair Value of Assets and Liabilities - Quantitative Information About Unobservable Inputs (Details) - Market Approach Valuation Technique [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Impaired Loans, Collateral-Dependent [Member] | Minimum [Member]
Marketability discount	9.00%	10.00%
Impaired Loans, Collateral-Dependent [Member] | Maximum [Member]
Marketability discount	15.00%	15.00%
Impaired Loans, Collateral-Dependent [Member]
Fair value	$ 382	$ 136
Valuation technique	Marketable comparable properties	Marketable comparable properties
Unobservable input	Marketability discount	Marketability discount
Marketability discount
Foreclosed Real Estate [Member]
Fair value		$ 245
Valuation technique		Marketable comparable properties
Unobservable input		Comparability adjustments
Comparability adjustments		9.00%

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Note 5 - Disclosures About Fair Value of Assets and Liabilities - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and due from banks, fair value	$ 1,763	$ 7,132
Interest-earning demand deposits, fair value	1,645	1,678
Federal funds sold, fair value	5,817
Interest-earning time deposits in banks, fair value
Loans held for sale
Loans, net
Federal Home Loan Bank stock
Accrued interest receivable, fair value
Mortgage servicing rights, fair value
Financial liabilities
Deposits, fair value	43,070	39,353
Advances from the Federal Home Loan Bank, fair value
Accrued interest payable, fair value
Fair Value, Inputs, Level 2 [Member]
Financial assets
Cash and due from banks, fair value
Interest-earning demand deposits, fair value
Federal funds sold, fair value
Interest-earning time deposits in banks, fair value	992	992
Loans held for sale
Loans, net
Federal Home Loan Bank stock	468	468
Accrued interest receivable, fair value	188	217
Mortgage servicing rights, fair value
Financial liabilities
Deposits, fair value	34,264	33,355
Advances from the Federal Home Loan Bank, fair value	7,158	7,023
Accrued interest payable, fair value	3	11
Fair Value, Inputs, Level 3 [Member]
Financial assets
Cash and due from banks, fair value
Interest-earning demand deposits, fair value
Federal funds sold, fair value
Interest-earning time deposits in banks, fair value
Loans held for sale	370
Loans, net	76,902	77,086
Federal Home Loan Bank stock
Accrued interest receivable, fair value
Mortgage servicing rights, fair value	422	317
Financial liabilities
Deposits, fair value
Advances from the Federal Home Loan Bank, fair value
Accrued interest payable, fair value
Cash and due from banks	1,763	7,132
Cash and due from banks, fair value	1,763	7,132
Interest-earning demand deposits	1,645	1,678
Interest-earning demand deposits, fair value	1,645	1,678
Federal funds sold	5,817
Federal funds sold, fair value	5,817
Interest-earning time deposits in banks	992	992
Interest-earning time deposits in banks, fair value	992	992
Loans held for sale	370
Loans, net	76,369	76,575
Loans, net	76,902	77,086
Federal Home Loan Bank stock	468	468
Accrued interest receivable	188	217
Accrued interest receivable, fair value	188	217
Mortgage servicing rights	422	317
Mortgage servicing rights, fair value	422	317
Deposits	76,650	72,266
Deposits, fair value	77,334	72,708
Advances from the Federal Home Loan Bank	6,927	6,927
Advances from the Federal Home Loan Bank, fair value	7,158	7,023
Accrued interest payable	3	11
Accrued interest payable, fair value	$ 3	$ 11

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Note 7 - Loss Per Share (Details Textual) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Oct. 19, 2015
Weighted Average Number Diluted Shares Outstanding Adjustment		0
Earnings Per Share, Basic and Diluted	$ (0.02)	$ (0.42)
Common Stock, Shares, Issued	696,600	696,600	696,600	696,600
Shares Held in Employee Stock Option Plan, Committed-to-be-Released	52,353	52,353

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Note 8 - Employee Stock Ownership Plan (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) $ / shares shares
Employee Stock Ownership Plan (ESOP), Compensation Expense | $	$ 8,000	$ 13,000
Share Price at Formation Date | $ / shares	$ 10	$ 10
Shares Held in Employee Stock Option Plan, Committed-to-be-Released | shares	52,353	52,353
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $	$ 672,000	$ 672,000
Share Price | $ / shares	$ 12.84	$ 12.84

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Note 9 - Change in Corporate Form (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Oct. 19, 2015
Sale of Stock, Price Per Share			$ 10
Common Stock, Subscriptions, Percentage			8.00%
Common Stock, Shares, Issued	696,600	696,600	696,600
Costs of Conversion and to Issue Stock			$ 1.2