10-Q

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 September 30, 2015

OR

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

For the transition period from to

Commission File No. 000-55530

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  o

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  o

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	o	Accelerated filer	o
Non-accelerated filer	o  (Do not check if smaller reporting company)	Smaller reporting company	x

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

As of November 13, 2015, 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		1
	Condensed Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014		1
	Condensed Statements of Operations for the Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)		2
	Condensed Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)		3
	Condensed Statements of Changes in Equity for the Nine Months Ended September 30, 2015 and 2014 (unaudited)		4
	Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014 (unaudited)		5
	Notes to Condensed Financial Statements (unaudited)		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		29
Item 4.	Controls and Procedures		29
	Part II. Other Information
Item 1.	Legal Proceedings		29
Item 1A.	Risk Factors		30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		30
Item 3.	Defaults upon Senior Securities		30
Item 4.	Mine Safety Disclosures		30
Item 5.	Other Information		30
Item 6.	Exhibits		30
	Signature Pages		31

EXPLANATORY NOTE

New Bancorp, Inc., a Maryland corporation (the “Company” or the “Registrant”), was formed on June 3, 2015 to serve as the savings and loan holding company for New Buffalo Savings Bank (the “Bank”) as part of the Bank’s mutual-to-stock conversion.  As of September 30, 2015, the conversion had not been completed, and, as of that date, the Registrant had no assets or liabilities, and had not conducted any business other than that of an organizational nature.  Accordingly, financial and other information of the Bank is included in this Quarterly Report.

Part I. – Financial Information

Item 1. Financial Statements

New Buffalo Savings Bank

Condensed Balance Sheets

September 30, 2015 (Unaudited) and December 31, 2014

(In Thousands)

	September 30,			December 31,
	2015			2014
Assets
Cash and due from banks	$	704		$	5,165
Interest-earning demand deposits		6,839			2,816
Cash and cash equivalents		7,543			7,981
Interest-earning time deposits in banks		992			992
Loans held for sale		272			581
Loans, net of allowance for loan losses of $1,155 and $1,147 at September 30, 2015 and December 31, 2014, respectively		73,327			72,365
Premises and equipment		2,055			2,162
Federal Home Loan Bank stock		468			678
Foreclosed real estate held for sale, net		308			248
Accrued interest receivable		189			187
Bank owned life insurance		5,205			5,081
Mortgage servicing rights		318			269
Prepaid expenses and other assets		704			162
Total assets	$	91,381		$	90,706
Liabilities and Equity
Liabilities
Deposits
Demand	$	20,355		$	20,161
Savings and money market accounts		18,537			21,070
Time		32,400			26,637
Total deposits		71,292			67,868
Federal funds purchased			—		2,500
Advances from the Federal Home Loan Bank		6,927			6,927
Stock subscription proceeds in escrow		2,378			—
Accrued nonqualified benefit plans		143			2,830
Other liabilities		651			572
Total liabilities		81,391			80,697
Commitments and Contingencies		—			—
Equity
Retained earnings		9,990			10,009
Total liabilities and equity	$	91,381		$	90,706

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

1

New Buffalo Savings Bank

Condensed Statements of Operations

For the Three and Nine Months Ended September 30, 2015 and 2014 (Unaudited)

(In Thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest Income
Loans	$	790		$	730		$	2,372		$	2,118
Investment securities		—			2			—			7
Interest-bearing deposits		10			13			31			42
Total interest income		800			745			2,403			2,167
Interest Expense
Deposits		157			137			444			423
Borrowings		33			18			102			32
Total interest expense		190			155			546			455
Net Interest Income		610			590			1,857			1,712
Provision (Credit) for Loan Losses		—			—			—			(200	)
Net Interest Income After Provision (Credit) for Loan Losses		610			590			1,857			1,912
Noninterest Income
Service charges and fees		76			71			231			215
Gain on sale of loans		62			3			341			25
Loss on sale of foreclosed real estate, net		(1	)		(96	)		(1	)		(110	)
Income from bank owned life insurance		42			41			124			121
Loan servicing fees, net		13			5			17			34
Other operating		6			2			16			21
Total noninterest income		198			26			728			306
Noninterest Expense
Salaries and employee benefits		467			520			1,366			1,537
Occupancy and equipment		94			111			335			332
Data processing fees		107			105			300			295
Insurance premiums		32			8			94			95
Professional services		24			165			124			326
Impairment losses and expenses of foreclosed real estate		113			79			133			203
Other		91			83			252			257
Total noninterest expense		928			1,071			2,604			3,045
Loss Before Federal Income Taxes (Credits)		(120	)		(455	)		(19	)		(827	)
Federal Income Taxes (Credits)		—			—			—			—
Net Loss	$	(120	)	$	(455	)	$	(19	)	$	(827	)

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

2

New Buffalo Savings Bank

Condensed Statements of Comprehensive Loss (Unaudited)

For the Three and Nine Months Ended September 30, 2015 and 2014

(In Thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss	$	(120	)	$	(455	)	$	(19	)	$	(827	)
Other comprehensive income:
Unrealized holding gains on securities during the period		—			—			—		13
Comprehensive loss	$	(120	)	$	(455	)	$	(19	)	$	(814	)

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

3

New Buffalo Savings Bank

Condensed Statements of Changes in Equity (Unaudited)

For the Nine Months Ended September 30, 2015 and 2014

(In Thousands)

				Accumulated Other
	Retained			Comprehensive
	Earnings			Loss			Total
Balance at January 1, 2014	$	12,444		$	(32	)	$	12,412
Net loss for the nine months ended September 30, 2014		(827	)		—			(827	)
Other comprehensive income		—			13			13
Balance at September 30, 2014	$	11,617		$	(19	)	$	11,598
Balance at January 1, 2015	$	10,009		$	—		$	10,009
Net loss for the nine months ended September 30, 2015		(19	)		—			(19	)
Balance at September 30, 2015	$	9,990		$	—		$	9,990

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

4

New Buffalo Savings Bank

Condensed Statements of Cash Flows (Unaudited)

For the Nine Months Ended September 30, 2015 and 2014

(In Thousands)

	Nine Months Ended September 30,
	2015			2014
Operating Activities
Net loss	$	(19	)	$	(827	)
Items not requiring (providing) cash
Depreciation and amortization		187			163
Amortization of deferred loan origination fees and costs, net		4			(6	)
Provision (credit) for loan losses		—			(200	)
Gain on sale of loans		(341	)		(25	)
Proceeds from sales of loans originated for sale		8,318			933
Loans originated for sale		(7,852	)		(915	)
Loss on sale of foreclosed real estate		1			110
Impairment loss on foreclosed real estate		111			105
Changes in
Accrued interest receivable		(2	)		(12	)
Prepaid expenses and other assets		(542	)		7
Cash surrender value of life insurance		(124	)		(121	)
Other liabilities		(2,608	)		(2,573	)
Net cash used in operating activities		(2,867	)		(3,361	)
Investing Activities
Net change in interest-earning time deposit in banks		—			248
Principal repayments from mortgage-backed securities available-for-sale		—			47
Proceeds from sales of loans		2,135			—
Net change in loans		(3,360	)		(6,307	)
Purchase of premises and equipment		(24	)		(138	)
Proceeds from redemption of FHLB stock		210			—
Proceeds from sale of foreclosed assets		166			642
Net cash used in investing activities		(873	)		(5,508	)
Financing Activities
Net increase (decrease) in deposits		3,424			(3,067	)
Net change in federal funds purchased		(2,500	)		—
Repayment of Federal Home Loan Bank advances		—			(1,000	)
Proceeds from stock subscriptions held in escrow		2,378			—
Net cash provided by (used in) financing activities		3,302			(4,067	)
Decrease in Cash and Cash Equivalents		(438	)		(12,936	)
Cash and Cash Equivalents, Beginning of Period		7,981			25,353
Cash and Cash Equivalents, End of Period	$	7,543		$	12,417
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest on deposits and borrowings	$	553		$	459
Supplemental Disclosure of Noncash Investing Activities
Transfers from loans to loans held for sale	$	2,057		$	—
Transfers from loans to real estate acquired through foreclosure	$	338		$	82

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

5

New Buffalo Savings Bank

Notes to Condensed Financial Statements

Note 1: Basis of Presentation

The accompanying condensed balance sheet of New Buffalo Savings Bank (the Bank) as of December 31, 2014, which has been derived from audited financial statements, and the unaudited condensed financial statements of the Bank as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014, 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 Bank for the year ended December 31, 2014 included in the Registrant’s Form S-1. Reference is made to the accounting policies of the Bank described in the Notes to the Financial Statements contained in the Form S-1.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of September 30, 2015 and the results of operations for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 30, 2015 and 2014. All interim amounts have not been audited and the results of operations for the three and nine months ended September 30, 2015 herein, are not necessarily indicative of the results of operations to be expected for the entire year.

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 Bank had no investment securities at September 30, 2015 and December 31, 2014.  The Bank had no sales of investment securities during the three and nine month periods ended September 30, 2015 and 2014.

6

New Buffalo Savings Bank

Notes to Condensed 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.

7

New Buffalo Savings Bank

Notes to Condensed Financial Statements

Classes of loans at September 30, 2015 and December 31, 2014 include:

	September 30,			December 31,
	2015			2014
	(Unaudited)
	(In thousands)
Real estate loans
Residential	$	40,337		$	37,481
Commercial		26,356			26,633
Construction and land		6,597			7,854
Commercial business		1,077			1,625
Consumer and other		387			392
Total loans		74,754			73,985
Less:
Net deferred loan fees, premiums and    discounts		(4	)		2
Undisbursed loans in process		(268	)		(475	)
Allowance for loan losses		(1,155	)		(1,147	)
Net loans	$	73,327		$	72,365

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 $3.7 million and $3.4 million at September 30, 2015 and December 31, 2014, 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.

8

New Buffalo Savings Bank

Notes to Condensed Financial Statements

The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 and the recorded investment in loans and impairment method as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
	Real Estate
						Construction			Commercial
	Residential		Commercial			and Land			Business			Consumer			Total
	(In thousands)
Three months ended September 30, 2015
Allowance for loan losses:
Balance, July 1, 2015	$	599	$	421		$	106		$	23		$	6		$	1,155
Provision (credit) for loan losses		40		(31	)		(1	)		(6	)		(2	)		—
Charge-offs		—		—			—			—			—			—
Recoveries		—		—			—			—			—			—
Balance, September 30, 2015	$	639	$	390		$	105		$	17		$	4		$	1,155
Nine months ended September 30, 2015
Allowance for loan losses:
Balance, January 1, 2015	$	575	$	418		$	126		$	23		$	5		$	1,147
Provision (credit) for loan losses		56		(28	)		(21	)		(6	)		(1	)		—
Charge-offs		—		—			—			—			—			—
Recoveries		8		—			—			—			—			8
Balance, September 30, 2015	$	639	$	390		$	105		$	17		$	4		$	1,155
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	18	$	—		$	—		$	—		$	—		$	18
Ending balance, collectively evaluated for impairment	$	621	$	390		$	105		$	17		$	4		$	1,137
Loans:
Ending balance	$	40,337	$	26,356		$	6,597		$	1,077		$	387		$	74,754
Ending balance; individually evaluated for impairment	$	1,865	$	244		$	1,809		$	—		$	—		$	3,918
Ending balance; collectively evaluated for impairment	$	38,472	$	26,112		$	4,788		$	1,077		$	387		$	70,836

9

New Buffalo Savings Bank

Notes to Condensed Financial Statements

	September 30, 2014 (Unaudited)
	Real Estate
							Construction			Commercial
	Residential			Commercial			and Land			Business			Consumer		Total
	(In thousands)
Three months ended September 30, 2014
Allowance for loan losses:
Balance, July 1, 2014	$	569		$	333		$	111		$	30		$	4	$	1,047
Provision (credit) for loan losses		30			(23	)		(6	)		(1	)		—		—
Charge-offs		—			—			—			—			—		—
Recoveries		—			—			—			—			—		—
Balance, September 30, 2014	$	599		$	310		$	105		$	29		$	4	$	1,047
Nine months ended September 30, 2014
Allowance for loan losses:
Balance, January 1, 2014	$	596		$	513		$	127		$	34		$	3	$	1,273
Provision (credit) for loan losses		29			(203	)		(22	)		(5	)		1		(200	)
Charge-offs		(26	)		—			—			—			—		(26	)
Recoveries		—			—			—			—			—		—
Balance, September 30, 2014	$	599		$	310		$	105		$	29		$	4	$	1,047

	December 31, 2014
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance	$	575	$	418	$	126	$	23	$	5	$	1,147
Ending balance, individually evaluated for impairment	$	26	$	—	$	—	$	—	$	—	$	26
Ending balance, collectively evaluated for impairment	$	549	$	418	$	126	$	23	$	5	$	1,121
Loans:
Ending balance	$	37,481	$	26,633	$	7,854	$	1,625	$	392	$	73,985
Ending balance; individually evaluated for impairment	$	2,183	$	214	$	1,856	$	—	$	—	$	4,253
Ending balance; collectively evaluated for impairment	$	35,298	$	26,419	$	5,998	$	1,625	$	392	$	69,732

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: The loans identified as special mention have an obvious flaw or a potential weakness that deserves special management attention, but which has not yet impacted 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.

10

New Buffalo Savings Bank

Notes to Condensed Financial Statements

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 Bank’s loan portfolio based on internal rating category and payment activity as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Pass	$	38,735	$	24,542	$	6,421	$	1,077	$	387	$	71,162
Special mention		—		544		10		—		—		554
Substandard		1,602		1,270		166		—		—		3,038
Doubtful		—		—		—		—		—		—
Total	$	40,337	$	26,356	$	6,597	$	1,077	$	387	$	74,754

	December 31, 2014
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Pass	$	35,820	$	24,777	$	7,669	$	1,625	$	392	$	70,283
Special mention		—		514		19		—		—		533
Substandard		1,096		1,342		—		—		—		2,438
Doubtful		565		—		166		—		—		731
Total	$	37,481	$	26,633	$	7,854	$	1,625	$	392	$	73,985

The Bank 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.

11

New Buffalo Savings Bank

Notes to Condensed Financial Statements

The following tables present the Bank’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
Residential	$	377	$	89	$	566	$	1,032	$	39,305	$	40,337	$	—
Commercial		—		—		—		—		26,356		26,356		—
Construction and land		—		—		166		166		6,431		6,597		—
Commercial business		—		—		—		—		1,077		1,077		—
Consumer		—		—		—		—		387		387		—
Total	$	377	$	89	$	732	$	1,198	$	73,556	$	74,754	$	—

	December 31, 2014
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
Residential	$	298	$	109	$	565	$	972	$	36,509	$	37,481	$	—
Commercial		—		—		—		—		26,633		26,633		—
Construction and land		—		—		166		166		7,688		7,854		—
Commercial business		—		—		—		—		1,625		1,625		—
Consumer		22		—		—		22		370		392		—
Total	$	320	$	109	$	731	$	1,160	$	72,825	$	73,985	$	—

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.

12

New Buffalo Savings Bank

Notes to Condensed Financial Statements

The following table presents impaired loans as of September 30, 2015 and for the three month periods ended September 30, 2015 and 2014:

	As of						For the Three Months Ended
	September 30, 2015							September 30, 2015				September 30, 2014
								Average				Average
			Unpaid					Balance of		Interest		Balance of		Interest
	Recorded		Principal		Specific			Impaired		Income		Impaired		Income
	Balance		Balance		Allowance			Loans		Recognized		Loans		Recognized
	(Unaudited)
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,714	$	1,750	$	—		$	1,600	$	23	$	1,488	$	15
Commercial		244		244		—			247		4		219		4
Construction and land		1,809		1,809		—			1,817		23		1,856		27
Commercial business		—		—		—			—		—		—		—
Consumer		—		—		—			—		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		151		162		18			89		—		248		—
Commercial		—		—		—			—		—		—		—
Construction and land		—		—		—			—		—		—		—
Commercial business		—		—		—			—		—		—		—
Consumer		—		—		—			—		—		—		—
Totals	$	3,918	$	3,965	$	18		$	3,753	$	50	$	3,811	$	46

The following table presents impaired loan information for the nine month periods ended September 30, 2015 and 2014:

	For the Nine Months Ended
	September 30, 2015				September 30, 2014
	Average				Average
	Balance of		Interest		Balance of		Interest
	Impaired		Income		Impaired		Income
	Loans		Recognized		Loans		Recognized
	(Unaudited)
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,489	$	54	$	2,188	$	57
Commercial		241		12		241		11
Construction and land		1,833		66		1,755		73
Commercial business		—		—		—		—
Consumer		—		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		62		—		253		—
Commercial		—		—		—		—
Construction and land		—		—		—		—
Commercial business		—		—		—		—
Consumer		—		—		—		—
Totals	$	3,625	$	132	$	4,437	$	141

13

New Buffalo Savings Bank

Notes to Condensed Financial Statements

The following table presents impaired loans as of December 31, 2014:

	As of December 31, 2014
			Unpaid
	Recorded		Principal		Specific
	Balance		Balance		Allowance
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,617	$	1,630	$	—
Commercial		214		214		—
Construction and land		1,856		1,856		—
Commercial business		—		—		—
Consumer		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		566		584		26
Commercial		—		—		—
Construction and land		—		—		—
Commercial business		—		—		—
Consumer		—		—		—
Totals	$	4,253	$	4,284	$	26

The following table presents the Bank’s nonaccrual loans at September 30, 2015 and December 31, 2014.  The table excludes performing troubled debt restructurings.

	September 30,		December 31,
	2015		2014
	(Unaudited)
	(In thousands)
Real estate loans
Residential	$	1,084	$	1,033
Commercial		7		11
Construction and land		166		166
Commercial business		—		—
Consumer and other		—		—
Total nonaccrual	$	1,257	$	1,210

At September 30, 2015 (unaudited) and December 31, 2014, the Bank had certain loans that were modified in troubled debt restructurings and 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.

14

New Buffalo Savings Bank

Notes to Condensed Financial Statements

The following tables present information regarding troubled debt restructurings by class for the three and nine months ended September 30, 2015 and 2014.  Newly classified troubled debt restructurings are as follows:

			Pre-		Post-
	Number of		Modification		Modification
For the nine months ended:	Contracts		Balance		Balance
September 30, 2015 (Unaudited)			(In thousands)
Real estate
Residential		1	$	50	$	50
Commercial		2		42		42
		3	$	92	$	92
September 30, 2014 (Unaudited)
Real estate
Residential		2	$	116	$	116
Construction and land		2		319		319
		4	$	435	$	435
			Pre-		Post-
	Number of		Modification		Modification
For the three months ended:	Contracts		Balance		Balance
September 30, 2015 (Unaudited)			(In thousands)
Real estate
Residential		1	$	50	$	50
September 30, 2014 (Unaudited)
Real estate
Residential		2	$	116	$	116
Construction and land		1		23		23
		3	$	139	$	139

15

New Buffalo Savings Bank

Notes to Condensed Financial Statements

Newly restructured loans by type of modification are as follows for the three and nine months ended September 30, 2015 and 2014.

							Total
For the nine months ended:	Interest Only		Term		Combination		Modification
September 30, 2015 (Unaudited)	(In thousands)
Real estate
Residential	$	—	$	50	$	—	$	50
Commercial		—		42		—		42
	$	—	$	92	$	—	$	92
September 30, 2014 (Unaudited)
Real estate
Residential	$	—	$	—	$	116	$	116
Construction and land		—		296		23		319
	$	—	$	296	$	139	$	435
							Total
For the three months ended:	Interest Only		Term		Combination		Modification
September 30, 2015 (Unaudited)	(In thousands)
Real estate
Residential	$	—	$	50	$	—	$	50
September 30, 2014 (Unaudited)		—		—		—		—
Real estate
Residential	$	—	$	—	$	116	$	116
Construction and land		—		—		23		23
	$	—	$	—	$	139	$	139

The troubled debt restructurings described above did not increase the allowance for loan losses or result in a charge-off during the three and nine months ended September 30, 2015 and 2014.

The Bank had no troubled debt restructurings modified in the twelve months ended September 30, 2015 and 2014 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 Bank’s internal underwriting policy.

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.  

Quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below), for periods through December 31, 2014, of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to total assets (as defined).  

16

New Buffalo Savings Bank

Notes to Condensed Financial Statements

At September 30, 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.

Management believes, as of September 30, 2015 (unaudited) and December 31, 2014, that the Bank meets all capital adequacy requirements to which it is subject.

As of September 30, 2015 (unaudited) and December 31, 2014, 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 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:

												To Be Well Capitalized
							For Capital Adequacy					Under Prompt Corrective
	Actual						Purposes					Action Provisions
	Amount		Ratio				Amount		Ratio			Amount		Ratio
						(Dollars in thousands)
As of September 30, 2015(Unaudited)
Total Capital
(to Risk-Weighted Assets)	$	10,810		16.5	%		$	5,226		8.0	%	$	6,533		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	9,990		15.3	%		$	3,920		6.0	%	$	5,226		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	9,990		15.3	%		$	2,940		4.5	%	$	4,246		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	9,990		10.6	%		$	3,766		4.0	%	$	4,707		5.0	%
As of December 31, 2014
Total Capital
(to Risk-Weighted Assets)	$	10,817		16.3	%		$	5,316		8.0	%	$	6,645		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	9,982		15.0	%		$	2,658		4.0	%	$	3,987		6.0	%
Tier I Capital
(to Total Assets)	$	9,982		11.0	%		$	3,627		4.0	%	$	5,441		6.0	%

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.

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.

17

New Buffalo Savings Bank

Notes to Condensed Financial Statements

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 September 30, 2015 and December 31, 2014:

			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)
September 30, 2015 (Unaudited)
Impaired loans, collateral dependent	$	83	$	—	$	—	$	83
Foreclosed assets held for sale		308		—		—		308
December 31, 2014
Impaired loans, collateral dependent	$	540	$	—	$	—	$	540
Foreclosed assets held for sale		76		—		—		76

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.

18

New Buffalo Savings Bank

Notes to Condensed Financial Statements

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)
September 30, 2015 (unaudited)
Impaired loans (collateral dependent)	$	83	Marketable comparable properties	Marketability discount	18%
Foreclosed real estate		308	Marketable comparable properties	Comparability adjustments	9%
December 31, 2014
Impaired loans (collateral dependent)	$	540	Marketable comparable properties	Marketability discount	10%-15%
Foreclosed real estate		76	Marketable comparable properties	Comparability adjustments	10%

19

New Buffalo Savings Bank

Notes to Condensed Financial Statements

Fair Value of Financial Instruments

The following table presents the estimated fair values of the Bank’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2015 and December 31, 2014.

					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)
September 30, 2015 (Unaudited)
Financial assets
Cash and due from banks	$	704	$	704	$	704	$	—	$	—
Interest-earning demand deposits		6,839		6,839		6,839		—		—
Interest-earning time deposits in banks		992		992		—		992		—
Loans held for sale		272		272		—		272		—
Loans, net		73,327		73,774		—		—		73,774
Federal Home Loan Bank stock		468		468		—		468		—
Accrued interest receivable		189		189		—		189		—
Mortgage servicing rights		318		318		—		—		318
Financial liabilities
Deposits		71,292		72,028		38,892		33,136		—
Advances from the Federal Home Loan Bank		6,927		7,134		—		7,134		—
Stock subscription proceeds in escrow		2,378		2,378		2,378		—		—
Accrued interest payable		2		2		—		2		—
December 31, 2014
Financial assets
Cash and due from banks	$	5,165	$	5,165	$	5,165	$	—	$	—
Interest-earning demand deposits		2,816		2,816		2,816		—		—
Interest-earning time deposits in banks		992		992		—		992		—
Loans held for sale		581		592		—		592		—
Loans, net		72,365		72,959		—		—		72,959
Federal Home Loan Bank stock		678		678		—		678		—
Accrued interest receivable		187		187		—		187		—
Mortgage servicing rights		269		269		—		—		269
Financial liabilities
Deposits		67,868		68,507		41,231		27,276		—
Federal funds purchased		2,500		2,500		2,500		—		—
Advances from the Federal Home Loan Bank		6,927		7,049		—		7,049		—
Accrued interest payable		9		9		—		9		—

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 and Interest-earning Demand Deposits

The carrying amount approximates fair value.

Interest-earning Time Deposits in Banks

The carrying amount approximates fair value.

20

New Buffalo Savings Bank

Notes to Condensed Financial Statements

Loans Held For Sale

Fair value is based on prices quoted by the U.S. government sponsored agencies generally used by the Bank in sales transactions.

Loans

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.

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 Funds Purchased

The carrying amount approximates fair value.

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.

Stock Subscription Proceeds in Escrow

The carrying amounts of stock subscription proceeds in escrow approximate fair value resulting in a Level 1 classification.

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.

21

New Buffalo Savings Bank

Notes to Condensed Financial Statements

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.

Financial Accounting Standards Board (FASB) ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40):  Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure

In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized.  The ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015.  The Company will adopt this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results or operations.  

FASB ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. With the issuance of ASU 2015-14 on July 9, 2015, FASB approved the deferral of the effective date of ASU 2014-09 for one year giving companies the option to early adopt using the original effective dates. Management is currently in the process of evaluating the impact of the amended guidance on the Bank’s financial statements.

Note 7: Plan of Conversion and Change in Corporate Form

On May 28, 2015, the Bank’s Board of Directors adopted a Plan of Conversion (the “Plan”) to convert from a federal mutual savings bank to a federal stock savings bank (the “Conversion”).  A new Maryland-chartered corporation, New Bancorp, Inc. (the “Company”), was formed in June 2015, which, upon consummation of the Conversion and offering, became the savings and loan holding company of the Bank. The Plan was subject to approval of the members of the Bank, which approval was received at a Special Meeting of Members on September 15, 2015.

Additionally, the Plan was subject to the final approval of the Office of the Comptroller of the Currency (“OCC”) and the formation of the Company as the holding company of the Bank, upon consummation of the Conversion, is subject to the approval of the Board of Governors of the Federal Reserve System (“FRB”). As part of the Conversion and offering, the Company filed a registration statement with the U.S. Securities and Exchange Commission.  Upon receipt of the final approval of the OCC and the FRB and the consummation of the Conversion and offering, the Bank became the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock to eligible depositors and borrowers of the Bank and the public pursuant to an independent valuation appraisal of the Bank and the Company on a converted basis that has been conducted by an independent appraisal firm that is experienced in appraising financial institutions in connection with mutual to stock conversions.  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 was deferred and deducted from the proceeds of the offering.  Through September 30, 2015, the Bank had incurred approximately $579,000 in conversion costs, which are included in prepaid expenses and other assets on the condensed balance sheet.

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

22

New Buffalo Savings Bank

Notes to Condensed Financial Statements

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.

23

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

General

Management’s discussion and analysis of the financial condition at September 30, 2015 and results of operations for the three and nine months ended September 30, 2015 and 2014 is intended to assist in understanding the financial condition and results of operations of the Bank.  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:

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

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

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

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

· 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;

· 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;

24

· 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 ormaintain 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.

Critical Accounting Policies

There are no material changes to the critical accounting policies disclosed in New Bancorp, Inc.’s Prospectus dated August 12, 2015, as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on August 20, 2015.

Comparison of Financial Condition at September 30, 2015 and December 31, 2014

Total Assets. Total assets were $91.4 million at September 30, 2015, an increase of $675,000, or 0.7%, compared to $90.7 million at December 31, 2014. The increase was due primarily to an increase of $962,000 in net loans offset in part by a decrease in cash and cash equivalents of $438,000.

Loans, net and Loans Held for Sale. Loans, net increased $962,000, or 1.3%, to $73.3 million at September 30, 2015 from $72.4 million at December 31, 2014.  During the nine months ended September 30, 2015, we originated $21.3 million of loans and loans held for sale, consisting primarily of $16.8 million of one- to four-family residential real estate loans, $3.4 million of commercial real estate loans, $822,000 of construction and land loans, $119,000 of commercial business loans and $244,000 of consumer loans, and sold $10.1 million of loans. During the nine months ended September 30, 2015, one- to four-family residential real estate loans increased $2.9 million, or 7.6%, to $40.3 million at September 30, 2015, from $37.5 million at December 31, 2014, while commercial real estate loans decreased $277,000, or 1.0%, to $26.4 million at September 30, 2015 and construction and land loans decreased $1.3 million, or 16.0% to $6.6 million at September 30, 2015.  During the nine months ended September 30, 2015, management transferred $2.1 million of portfolio loans to loans held for sale and sold the transferred loans during the period. Additionally, during the nine months ended September 30, 2015, sales of loans, including both those that were originated during the period and those held for sale at December 31, 2014, amounted to $8.1 million. Loans held for sale were $272,000 at September 30, 2015 compared to $581,000 at December 31, 2014.

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

25

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.

Bank Owned Life Insurance. At September 30, 2015, our investment in bank owned life insurance was $5.2 million, an increase of $124,000, from $5.1 million at December 31, 2014.  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.

Foreclosed Real Estate. Foreclosed real estate increased $60,000 to $308,000 at September 30, 2015 from $248,000 at December 31, 2014, as we added one property through foreclosure, which was offset by sales totaling $165,000 and impairment charges of $111,000.  At September 30, 2015, our foreclosed real estate included two parcels of residential real estate.

Deposits. Deposits increased $3.4 million, or 5.1%, to $71.3 million at September 30, 2015 from $67.9 million at December 31, 2014. Our core deposits decreased $2.3 million, or 5.7%, to $38.9 million at September 30, 2015 from $41.2 million at December 31, 2014.  Certificates of deposit increased $5.8 million, or 21.6%, to $32.4 million at September 30, 2015 from $26.6 million at December 31, 2014.  While the Bank is continually seeking growth in deposits, especially core deposits, during the first quarter of 2015, management elected to add certain listing service certificates of deposit totaling $4.5 million with maturities ranging from two to five years and an average cost of 1.40%.  Management intends to focus its efforts to increase core deposits, with a special emphasis on growth in consumer and business demand deposits.

Borrowings.  Borrowings, including Federal Home Loan Bank advances and federal funds purchased, totaled $6.9 million at September 30, 2015 compared to $9.4 million at December 31, 2014.  The decrease in borrowings was attributable to repayment during the 2015 first quarter of $2.5 million of federal funds purchased from another bank.  The aggregate cost of outstanding advances from the Federal Home Loan Bank was 1.88% at September 30, 2015, compared to the Bank’s cost of deposits of 0.84% at that date.

Stock Subscription Proceeds in Escrow. Stock subscription proceeds in escrow totaled $2.4 million at September 30, 2015, which represented funds received and held at the Bank for stock subscription orders received related to the Bank’s conversion from mutual to stock form. As the conversion was not completed as of September 30, 2015, the proceeds were held in escrow. Upon completion of the conversion on October 19, 2015, these funds were transferred to shareholders’ equity on the balance sheet of the Bank’s newly formed holding company New Bancorp, Inc. The conversion resulted in the issuance of 696,600 shares of common stock at an offering price of $10.00 per share.  

Total Equity. Total equity decreased $19,000, or 0.2%, to $10.0 million at September 30, 2015 compared to December 31, 2014. The decrease resulted from the net loss of $19,000 during the nine months ended September 30, 2015.

Comparison of Operating Results for the Three Months Ended September 30, 2015 and 2014

General. Net loss for the three months ended September 30, 2015 was $120,000, compared to a net loss of $455,000 for the three months ended September 30, 2014. This $355,000 decrease in the net loss was primarily due to a $20,000 increase in net interest income, a $172,000 increase in noninterest income and a $143,000 decrease in noninterest expenses.

Interest Income. Interest income increased $55,000, or 7.4%, to $800,000 for the three months ended September 30, 2015 from $745,000 for the three months ended September 30, 2014. This increase was primarily attributable to a $60,000 increase in interest on loans receivable, partially offset by a $5,000 decrease in interest on investment securities and other interest-earning deposits. The average balance of loans including loans held for sale during the three months ended September 30, 2015 increased $11.8 million, or 19.0%, to $73.9 million from $62.1 million for the three months ended September 30, 2014, while the average yield on loans decreased 42 basis points to 4.28% for the three months ended September 30, 2015 from 4.70% for the three months ended September 30, 2014. 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 investments and other interest-earning deposits, including certificates of deposit in other banks, decreased $9.2 million to $6.3 million for the three months ended September 30, 2015 from $15.5 million for the three months ended September 30, 2014.

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Interest Expense. Total interest expense increased $35,000, or 22.6%, to $190,000 for the three months ended September 30, 2015 from $155,000 for the three months ended September 30, 2014. Interest expense on deposit accounts increased $20,000, or 14.6%, to $157,000 for the three months ended September 30, 2015 from $137,000 for the three months ended September 30, 2014. The increase was primarily due to an increase of $852,000, or 1.3%, in the average balance of deposits to $68.9 million for the three months ended September 30, 2015 from $68.1 million for the three months ended September 30, 2014, and an increase of 11 basis points in the average cost of interest-bearing deposits to 0.91% for the three months ended September 30, 2015 from 0.80% for the three months ended September 30, 2014.  Interest expense on borrowings increased $15,000 to $33,000 for the three months ended September 30, 2015 from $18,000 for the three months ended September 30, 2014. The average balance of advances increased $6.7 million to $6.9 million for the three months ended September 30, 2015 compared to $215,000 for the three months ended September 30, 2014, while the average cost of these advances decreasedto 1.91% for the three months ended September 30, 2015.  As noted above, management elected to increase outstanding advances as a source of lower-cost funding.

Net Interest Income. Net interest income increased $20,000, or 3.4%, to $610,000 for the three months ended September 30, 2015 compared to $590,000 for the three months ended September 30, 2014. The increase was due to a six basis points increase in our interest rate spread to 2.99% for the three months ended September 30, 2015 from 2.93% for the three months ended September 30, 2014 reflecting a shift in average interest-earning assets from interest-earning deposits to higher-yielding loans, offset in part by a $5.0 million decrease in average net interest-earning assets period to period.

Our net interest margin increased to 3.05% for the three months ended September 30, 2015 from 3.04% for the three months ended September 30, 2014.

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 September 30, 2015 and 2014. The allowance for loan losses was $1.2 million, or 1.55% of total loans, at September 30, 2015, compared to $1.0 million, or 1.63% of total loans, at September 30, 2014.  Total nonperforming loans were $1.3 million at September 30, 2015, compared to $1.2 million at September 30, 2014. Classified (substandard, doubtful and loss) loans were $3.0 million at September 30, 2015 and $3.2 million at September 30, 2014, and total loans past due greater than 30 days were $1.2 million and $1.1 million at those respective dates.  We had no charge-offs or recoveries during either of the three months ended September 30, 2015 and 2014.  As a percentage of nonperforming loans, the allowance for loan losses was 91.9% at September 30, 2015 compared to 89.0% at September 30, 2014.

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 September 30, 2015 and 2014. 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 $172,000, or 661.5%, to $198,000 for the three months ended September 30, 2015 from $26,000 for the three months ended September 30, 2014. The increase was primarily due to an increase of $59,000 in gains on sales of loans and a decrease in losses on sales of foreclosed real estate.  The gain on sales of loans amounted to $62,000 during the three months ended September 30, 2015, compared to $3,000 in the year earlier period, due primarily to an increase in the volume of loan sales period-to-period.

Non-Interest Expense. Non-interest expense decreased $143,000, or 13.4%, to $928,000 for the three months ended September 30, 2015 compared to $1.1 million for the three months ended September 30, 2014. The decrease was due primarily to a $53,000, or 10.2%, decrease in salaries and employee benefits and a $141,000, or 85.5%, decrease in professional services, which were partially offset by a $34,000, or 43.0%, increase in impairment losses and expenses on foreclosed real estate.  The decrease in salaries and employee benefits was due primarily to a $50,000 decrease in the expense of a non-qualified retirement plan for certain of our former executives, as this plan was terminated during the year ended December 31, 2014, and a $38,000 decrease in expense related to the Bank’s multiple employer defined benefit plan period-to-period, which were partially offset by increases in compensation and health care costs. The decrease in professional services was due primarily to legal costs related to the 2014 non-qualified benefit plan settlement and services related to mutual institution corporate governance and a decrease in audit and regulatory examination expenses period to period due primarily to improvements in the risk profile of the Bank.  The increase in impairment losses and expenses on foreclosed assets resulted primarily from impairment charges recorded in the current quarter as management obtained updated appraisals on the foreclosed assets.

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.

27

Federal Income Taxes. The Bank did not record a federal income tax provision during either of the three month periods ended September 30, 2015 and 2014.  The federal income tax provision was affected by the full impairment valuation allowance recorded on the Bank’s net deferred tax assets in both 2015 and2014.  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 September 30, 2015 and 2014.  The Bank has a total valuation allowance on its net deferred tax assets of $4.2 million at September 30, 2015.The deferred tax asset will only be recognized in future periods upon the Bank’s ability to realize and maintain profitable results of operations.

Comparison of Operating Results for the Nine Months Ended September 30, 2015 and 2014

General. Net loss for the nine months ended September 30, 2015 was $19,000, compared to a net loss of $827,000 for the nine months ended September 30, 2014. The decrease in the net loss of $808,000 was primarily due to a $145,000 increase in net interest income, a $422,000 increase in noninterest income and a $441,000 decrease in noninterest expenses, partially offset by a nonrecurring $200,000 credit provision for loan losses recognized in the comparable 2014 period.

Interest Income. Interest income increased $236,000, or 10.9%, to $2.4 million for the nine months ended September 30, 2015 from $2.2 million for the nine months ended September 30, 2014. This increase was primarily attributable to a $254,000 increase in interest on loans receivable, which was partially offset by a $18,000 decrease in interest on investment securities and other interest-earning deposits. The average balance of loans including loans held for sale during the nine months ended September 30, 2015 increased $13.1 million, or 21.9%, to $72.9 million from $59.8 million for the nine months ended September 30, 2014, while the average yield on loans decreased 38 basis points to 4.34% for the nine months ended September 30, 2015 from 4.72% for the nine months ended September 30, 2014 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 investments and other interest-earning deposits, including certificates of deposit in other banks, decreased $14.0 million to $5.1 million for the nine months ended September 30, 2015 from $19.1 million for the nine months ended September 30, 2014.

Interest Expense. Total interest expense increased $91,000, or 20.0%, to $546,000 for the nine months ended September 30, 2015 from $455,000 for the nine months ended September 30, 2014. Interest expense on deposit accounts increased $21,000, or 5.0%, to $444,000 for the nine months ended September 30, 2015 from $423,000 for the nine months ended September 30, 2014. The increase was primarily due to an increase of five basis points in the average cost of interest-bearing deposits to 0.89% for the nine months ended September 30, 2015 from 0.84% for the nine months ended September 30, 2014, partially offset by a decrease of $300,000, or 0.4%, in the average balance of deposits to $66.7 million for the nine months ended September 30, 2015 from $67.0 million for the nine months ended September 30, 2014.  Interest expense on borrowings increased $70,000 to $102,000 for the nine months ended September 30, 2015 from $32,000 for the nine months ended September 30, 2014. The average balance of advances increased $6.6 million to $7.4 million for the nine months ended September 30, 2015 compared to $736,000 for the nine months ended September 30, 2014, while the average cost of these advances decreased to 1.85% for the 2015 nine-month period.  As noted above, management elected to increase outstanding advances as a source of lower-cost funding.

Net Interest Income. Net interest income increased $145,000, or 8.5%, to $1.9 million for the nine months ended September 30, 2015 compared to $1.7 million for the nine months ended September 30, 2014. The increase was due to a 37 basis point increase in the interest rate spread to 3.13% for the nine months ended September 30, 2015 from 2.76% for the nine months ended September 30, 2014 reflecting a shift in our average interest-earning assets from interest-earning deposits to higher-yielding loans, offset in part by a decrease in our average net interest-earning assets of $7.2 million period to period.

Our net interest margin increased to 3.17% for the nine months ended September 30, 2015 from 2.89% for the nine months ended September 30, 2014 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 nine months ended September 30, 2015, compared to a $200,000 credit provision recognized in the nine months ended September 30, 2014.  The allowance for loan losses was $1.2 million, or 1.55% of total loans, at September 30, 2015, compared to $1.0 million, or 1.63% of total loans, at September 30, 2014.  Total nonperforming loans were $1.3 million at September 30, 2015, compared to $1.2 million at September 30, 2014. Classified (substandard, doubtful and loss) loans were $3.0 million at September 30, 2015 and $3.2 million at September 30, 2014, and total loans past due greater than 30 days were $1.2 million and $1.1 million at those respective dates.  We had $8,000 of net recoveries during the nine month period ended September 30, 2015 compared to net charge-offs of $26,000 during the nine month period ended September 30, 2014.  As a percentage of nonperforming loans, the allowance for loan losses was 91.9% at September 30, 2015 compared to 89.0% at September 30, 2014.

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 September 30, 2015 and December 31, 2014. While we believe the estimates and assumptions used in

28

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 $422,000, or 137.9%, to $728,000 for the nine months ended September 30, 2015 from $306,000 for the nine months ended September 30, 2014. The increase was primarily due to an increase of $316,000 in gains on sales of loans and a $109,000 decrease in losses on sales of foreclosed real estate. The gain on sales of loans amounted to $341,000 in the nine months ended September 30, 2015, compared to $25,000 in the year earlier period, due primarily to an increase in the volume of loan sales period-to-period.

Non-Interest Expense. Non-interest expense decreased $441,000, or 14.5%, to $2.6 million for the nine months ended September 30, 2015 compared to $3.0 million for the nine months ended September 30, 2014. The decrease was due primarily to a $171,000, or 11.1%, decrease in salaries and employee benefits; a $202,000, or 62.0%, decrease in professional services; and a $70,000, or 34.5%, decrease in impairment losses and expenses on foreclosed real estate.  The decrease in salaries and employee benefits was due primarily to a $155,000 decrease in the expense of a non-qualified retirement plan for certain former executives of the Bank, as this plan was terminated during the year ended December 31, 2014, and a $93,000 decrease in expense related to the Bank’s multiple employer defined benefit plan period-to-period, which were partially offset by a $37,000, or 3.3%, increase in compensation.  The decrease in professional services was due primarily to legal costs related to the 2014 non-qualified benefit plan settlement and services related to mutual institution corporate governance, along with decreases in audit expense and supervisory examination expense, due primarily to improvements in the risk profile of the Bank.  The decrease in impairment losses and expenses on foreclosed assets was due primarily to a decline in the volume of foreclosures year to year.

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 Bank did not record a federal income tax provision during either of the nine month periods ended September 30, 2015 and 2014.  The federal income tax provision was affected by the full impairment valuation allowance recorded on the Bank’s net deferred tax assets in both the 2015 and 2014 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 September 30, 2015 and 2014.  The Bank has a total valuation allowance on its net deferred tax assets of $4.2 million at September 30, 2015.  The deferred tax asset will only be recognized in future periods upon the Bank’s ability to realize and maintain profitable results of operations.

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 September 30, 2015. 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 September 30, 2015, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II – Other Information

Item 1. Legal Proceedings

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

29

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

30

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: November 13, 2015	/s/ Richard C. Sauerman
	Richard C. Sauerman
	President and Chief Executive Officer
Date: November 13, 2015	/s/ Russell N. Dahl
	Russell N. Dahl
	Chief Financial Officer

31

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: November 13, 2015	/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: November 13, 2015	/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 September 30, 2015 (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: November 13, 2015	/s/ Richard C. Sauerman
	Richard C. Sauerman
	President and Chief Executive Officer
Date: November 13, 2015	/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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Plan of Conversion and Change in Corporate Form - Additional Information (Details) - USD ($)		9 Months Ended
	Oct. 19, 2015	Sep. 30, 2015
Plan Of Conversion And Change In Corporate Form [Line Items]
Company formation date		2015-06
Prepaid Expenses and Other Assets
Plan Of Conversion And Change In Corporate Form [Line Items]
Conversion costs		$ 579,000
Subsequent Event | Common Stock
Plan Of Conversion And Change In Corporate Form [Line Items]
Conversion of Stock, Shares Issued	696,600

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Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable Impaired [Line Items]
Total Recorded Balance	$ 3,918		$ 3,918		$ 4,253
Total Unpaid Principal Balance	3,965		3,965		4,284
Total Specific Allowance	18		18		26
Total Average Balance of Impaired Loans	3,753	$ 3,811	3,625	$ 4,437
Total Interest Income Recognized	50	46	132	141
Residential Real Estate
Financing Receivable Impaired [Line Items]
Loan without a specific valuation allowance, Recorded Balance	1,714		1,714		1,617
Loan without a specific valuation allowance, Unpaid Principal Balance	1,750		1,750		1,630
Loan without a specific valuation allowance, Average Balance of Impaired Loans	1,600	1,488	1,489	2,188
Loan without a specific valuation allowance, Interest Income Recognized	23	15	54	57
Loans with a specific valuation allowance, Recorded Balance	151		151		566
Loans with a specific valuation allowance, Unpaid Principal Balance	162		162		584
Loans with a specific valuation allowance, Specific Allowance	18		18		26
Loans with a specific valuation allowance, Average Balance Impaired Loans	89	248	62	253
Commercial Real Estate
Financing Receivable Impaired [Line Items]
Loan without a specific valuation allowance, Recorded Balance	244		244		214
Loan without a specific valuation allowance, Unpaid Principal Balance	244		244		214
Loan without a specific valuation allowance, Average Balance of Impaired Loans	247	219	241	241
Loan without a specific valuation allowance, Interest Income Recognized	4	4	12	11
Construction and Land Real Estate
Financing Receivable Impaired [Line Items]
Loan without a specific valuation allowance, Recorded Balance	1,809		1,809		1,856
Loan without a specific valuation allowance, Unpaid Principal Balance	1,809		1,809		$ 1,856
Loan without a specific valuation allowance, Average Balance of Impaired Loans	1,817	1,856	1,833	1,755
Loan without a specific valuation allowance, Interest Income Recognized	$ 23	$ 27	$ 66	$ 73

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Securities

9 Months Ended

Sep. 30, 2015

Investments Debt And Equity Securities [Abstract]

Securities

Note 2: Securities

The Bank had no investment securities at September 30, 2015 and December 31, 2014.  The Bank had no sales of investment securities during the three and nine month periods ended September 30, 2015 and 2014.

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Regulatory Matters - Summary of Bank's Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Total Capital
Total Capital, Actual Amount	$ 10,810	$ 10,817
Total Capital (to Risk-Weighted Assets), Actual Ratio	16.50%	16.30%
Total Capital, For Capital Adequacy Purposes, Amount	$ 5,226	$ 5,316
Total Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 6,533	$ 6,645
Total Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier 1 Capital
Tier 1 Capital, Actual Amount	$ 9,990	$ 9,982
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio	15.30%	15.00%
Tier 1 Capital, For Capital Adequacy Purposes, Amount	$ 3,920	$ 2,658
Tier 1 Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes, Ratio	6.00%	4.00%
Tier 1 Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 5,226	$ 3,987
Tier 1 Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	6.00%
Common Equity Tier I Capital
Common Equity Tier I Capital, Actual Amount	$ 9,990
Common Equity Tier I Capital (to Risk-Weighted Assets), Actual Ratio	15.30%
Common Equity Tier I Capital, For Capital Adequacy Purposes, Amount	$ 2,940
Common Equity Tier I Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes, Ratio	4.50%
Common Equity Tier 1 Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 4,246
Common Equity Tier I Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%
Tier I Leverage Capital
Tier I Leverage Capital, Actual Amount	$ 9,990	$ 9,982
Tier I Leverage Capital (to Average Total Assets), Actual Ratio	10.60%	11.00%
Tier 1 Leverage Capital, For Capital Adequacy Purposes, Amount	$ 3,766	$ 3,627
Tier I Leverage Capital (to Average Total Assets), For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I Leverage Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 4,707	$ 5,441
Tier I Leverage Capital (to Average Total Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	6.00%

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Loans and Allowance for Loan Losses - Restructured Loans by Type of Modification (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable Modifications [Line Items]
Post-Modification Balance		$ 139	$ 92	$ 435
Term
Financing Receivable Modifications [Line Items]
Post-Modification Balance			92	296
Combination
Financing Receivable Modifications [Line Items]
Post-Modification Balance		139		139
Residential Real Estate
Financing Receivable Modifications [Line Items]
Post-Modification Balance	$ 50	116	50	116
Residential Real Estate | Term
Financing Receivable Modifications [Line Items]
Post-Modification Balance	$ 50		50
Residential Real Estate | Combination
Financing Receivable Modifications [Line Items]
Post-Modification Balance		116		116
Commercial Real Estate
Financing Receivable Modifications [Line Items]
Post-Modification Balance			42
Commercial Real Estate | Term
Financing Receivable Modifications [Line Items]
Post-Modification Balance			$ 42
Construction and Land Real Estate
Financing Receivable Modifications [Line Items]
Post-Modification Balance		23		319
Construction and Land Real Estate | Term
Financing Receivable Modifications [Line Items]
Post-Modification Balance				296
Construction and Land Real Estate | Combination
Financing Receivable Modifications [Line Items]
Post-Modification Balance		$ 23		$ 23

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Disclosures about Fair Value of Assets and Liabilities - Fair Value Measurements of Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Impaired Loans, Collateral Dependent
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 83	$ 540
Foreclosed Real Estate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	308	76
Significant Unobservable Inputs (Level 3) | Impaired Loans, Collateral Dependent
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	83	540
Significant Unobservable Inputs (Level 3) | Foreclosed Real Estate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 308	$ 76

XML

Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs Used in Nonrecurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Impaired Loans, Collateral Dependent
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 83	$ 540
Marketability discount, Range	18.00%
Impaired Loans, Collateral Dependent | Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability discount, Range		10.00%
Impaired Loans, Collateral Dependent | Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability discount, Range		15.00%
Impaired Loans, Collateral Dependent | Fair Value Measurements Nonrecurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Technique	Marketable comparable properties	Marketable comparable properties
Foreclosed Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 308	$ 76
Comparability adjustments, Range	9.00%	10.00%
Foreclosed Real Estate | Fair Value Measurements Nonrecurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Technique	Marketable comparable properties	Marketable comparable properties

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Note 1: Basis of Presentation

The accompanying condensed balance sheet of New Buffalo Savings Bank (the Bank) as of December 31, 2014, which has been derived from audited financial statements, and the unaudited condensed financial statements of the Bank as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014, 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 Bank for the year ended December 31, 2014 included in the Registrant’s Form S-1. Reference is made to the accounting policies of the Bank described in the Notes to the Financial Statements contained in the Form S-1.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of September 30, 2015 and the results of operations for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 30, 2015 and 2014. All interim amounts have not been audited and the results of operations for the three and nine months ended September 30, 2015 herein, are not necessarily indicative of the results of operations to be expected for the entire year.

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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Disclosures about Fair Value of Assets and Liabilities - Estimated Fair Values of the Bank's Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financial assets
Cash and due from banks	$ 704	$ 5,165
Interest-earning demand deposits	6,839	2,816
Interest-earning time deposits in banks	992	992
Loans held for sale	272	581
Loans, net	73,327	72,365
Federal Home Loan Bank stock	468	678
Accrued interest receivable	189	187
Mortgage servicing rights	318	269
Financial liabilities
Deposits	71,292	67,868
Federal funds purchased		2,500
Advances from the Federal Home Loan Bank	6,927	6,927
Stock subscription proceeds in escrow	2,378
Accrued interest payable	2	9
Quoted Prices In Active Markets For Identical Assets (Level 1)
Financial assets
Cash and due from banks	704	5,165
Interest-earning demand deposits	6,839	2,816
Financial liabilities
Deposits	38,892	41,231
Federal funds purchased		2,500
Stock subscription proceeds in escrow	2,378
Significant Other Observable Inputs (Level 2)
Financial assets
Interest-earning time deposits in banks	992	992
Loans held for sale	272	592
Federal Home Loan Bank stock	468	678
Accrued interest receivable	189	187
Financial liabilities
Deposits	33,136	27,276
Advances from the Federal Home Loan Bank	7,134	7,049
Accrued interest payable	2	9
Significant Unobservable Inputs (Level 3)
Financial assets
Loans, net	73,774	72,959
Mortgage servicing rights	318	269
Fair Value
Financial assets
Cash and due from banks	704	5,165
Interest-earning demand deposits	6,839	2,816
Interest-earning time deposits in banks	992	992
Loans held for sale	272	592
Loans, net	73,774	72,959
Federal Home Loan Bank stock	468	678
Accrued interest receivable	189	187
Mortgage servicing rights	318	269
Financial liabilities
Deposits	72,028	68,507
Federal funds purchased		2,500
Advances from the Federal Home Loan Bank	7,134	7,049
Stock subscription proceeds in escrow	2,378
Accrued interest payable	$ 2	$ 9

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Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 704	$ 5,165
Interest-earning demand deposits	6,839	2,816
Cash and cash equivalents	7,543	7,981
Interest-earning time deposits in banks	992	992
Loans held for sale	272	581
Loans, net of allowance for loan losses of $1,155 and $1,147 at September 30, 2015 and December 31, 2014, respectively	73,327	72,365
Premises and equipment	2,055	2,162
Federal Home Loan Bank stock	468	678
Foreclosed real estate held for sale, net	308	248
Accrued interest receivable	189	187
Bank owned life insurance	5,205	5,081
Mortgage servicing rights	318	269
Prepaid expenses and other assets	704	162
Total assets	91,381	90,706
Deposits
Demand	20,355	20,161
Savings and money market accounts	18,537	21,070
Time	32,400	26,637
Total deposits	71,292	67,868
Federal funds purchased		2,500
Advances from the Federal Home Loan Bank	6,927	6,927
Stock subscription proceeds in escrow	2,378
Accrued nonqualified benefit plans	143	2,830
Other liabilities	651	572
Total liabilities	$ 81,391	$ 80,697
Commitments and Contingencies
Equity
Retained earnings	$ 9,990	$ 10,009
Total liabilities and equity	$ 91,381	$ 90,706

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Condensed Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2013	$ 12,412	$ 12,444	$ (32)
Net loss	(827)	(827)
Other comprehensive income	13		13
Ending Balance at Sep. 30, 2014	11,598	11,617	$ (19)
Beginning Balance at Dec. 31, 2014	10,009	10,009
Net loss	(19)	(19)
Ending Balance at Sep. 30, 2015	$ 9,990	$ 9,990

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Loans and Allowance for Loan Losses - Activity in Allowance for Loan Losses and Recorded Investment in Loans and Impairment Method (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Allowance for loan losses:
Beginning balance	$ 1,155	$ 1,047	$ 1,147	$ 1,273
Provision (Credit) for Loan Losses				(200)
Charge-offs				(26)
Recoveries			8
Ending balance	1,155	1,047	1,155	1,047
Allowance for loan losses:
Ending balance, individually evaluated for impairment	18		18		$ 26
Ending balance, collectively evaluated for impairment	1,137		1,137		1,121
Loans:
Total Loans Receivable	74,754		74,754		73,985
Ending balance; individually evaluated for impairment	3,918		3,918		4,253
Ending balance; collectively evaluated for impairment	70,836		70,836		69,732
Residential Real Estate
Allowance for loan losses:
Beginning balance	599	569	575	596
Provision (Credit) for Loan Losses	40	30	56	29
Charge-offs				(26)
Recoveries			8
Ending balance	639	599	639	599
Allowance for loan losses:
Ending balance, individually evaluated for impairment	18		18		26
Ending balance, collectively evaluated for impairment	621		621		549
Loans:
Total Loans Receivable	40,337		40,337		37,481
Ending balance; individually evaluated for impairment	1,865		1,865		2,183
Ending balance; collectively evaluated for impairment	38,472		38,472		35,298
Commercial Real Estate
Allowance for loan losses:
Beginning balance	421	333	418	513
Provision (Credit) for Loan Losses	(31)	(23)	(28)	(203)
Ending balance	390	310	390	310
Allowance for loan losses:
Ending balance, collectively evaluated for impairment	390		390		418
Loans:
Total Loans Receivable	26,356		26,356		26,633
Ending balance; individually evaluated for impairment	244		244		214
Ending balance; collectively evaluated for impairment	26,112		26,112		26,419
Construction and Land Real Estate
Allowance for loan losses:
Beginning balance	106	111	126	127
Provision (Credit) for Loan Losses	(1)	(6)	(21)	(22)
Ending balance	105	105	105	105
Allowance for loan losses:
Ending balance, collectively evaluated for impairment	105		105		126
Loans:
Total Loans Receivable	6,597		6,597		7,854
Ending balance; individually evaluated for impairment	1,809		1,809		1,856
Ending balance; collectively evaluated for impairment	4,788		4,788		5,998
Commercial Business
Allowance for loan losses:
Beginning balance	23	30	23	34
Provision (Credit) for Loan Losses	(6)	(1)	(6)	(5)
Ending balance	17	29	17	29
Allowance for loan losses:
Ending balance, collectively evaluated for impairment	17		17		23
Loans:
Total Loans Receivable	1,077		1,077		1,625
Ending balance; collectively evaluated for impairment	1,077		1,077		1,625
Consumer
Allowance for loan losses:
Beginning balance	6	4	5	3
Provision (Credit) for Loan Losses	(2)		(1)	1
Ending balance	4	$ 4	4	$ 4
Allowance for loan losses:
Ending balance, collectively evaluated for impairment	4		4		5
Loans:
Total Loans Receivable	387		387		392
Ending balance; collectively evaluated for impairment	$ 387		$ 387		$ 392

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Loans and Allowance for Loan Losses - Bank's Loan Portfolio Aging Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 1,198	$ 1,160
Current	73,556	72,825
Total Loans Receivable	74,754	73,985
30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	377	320
60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	89	109
Greater Than 90 Days
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	732	731
Residential Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,032	972
Current	39,305	36,509
Total Loans Receivable	40,337	37,481
Residential Real Estate | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	377	298
Residential Real Estate | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	89	109
Residential Real Estate | Greater Than 90 Days
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	566	565
Commercial Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Current	26,356	26,633
Total Loans Receivable	26,356	26,633
Construction and Land Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	166	166
Current	6,431	7,688
Total Loans Receivable	6,597	7,854
Construction and Land Real Estate | Greater Than 90 Days
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	166	166
Commercial Business
Financing Receivable Recorded Investment Past Due [Line Items]
Current	1,077	1,625
Total Loans Receivable	1,077	1,625
Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		22
Current	387	370
Total Loans Receivable	$ 387	392
Consumer | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		$ 22

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Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities
Net loss	$ (19)	$ (827)
Items not requiring (providing) cash
Depreciation and amortization	187	163
Amortization of deferred loan origination fees and costs, net	4	(6)
Provision (Credit) for Loan Losses		(200)
Gain on sale of loans	(341)	(25)
Proceeds from sales of loans originated for sale	8,318	933
Loans originated for sale	(7,852)	(915)
Loss on sale of foreclosed real estate	1	110
Impairment loss on foreclosed real estate	111	105
Changes in
Accrued interest receivable	(2)	(12)
Prepaid expenses and other assets	(542)	7
Cash surrender value of life insurance	(124)	(121)
Other liabilities	(2,608)	(2,573)
Net cash used in operating activities	(2,867)	(3,361)
Investing Activities
Net change in interest-earning time deposit in banks		248
Principal repayments from mortgage-backed securities available-for-sale		47
Proceeds from sales of loans	2,135
Net change in loans	(3,360)	(6,307)
Purchase of premises and equipment	(24)	(138)
Proceeds from redemption of FHLB stock	210
Proceeds from sale of foreclosed assets	166	642
Net cash used in investing activities	(873)	(5,508)
Financing Activities
Net increase (decrease) in deposits	3,424	(3,067)
Net change in federal funds purchased	(2,500)
Repayment of Federal Home Loan Bank advances		(1,000)
Proceeds from stock subscriptions held in escrow	2,378
Net cash provided by (used in) financing activities	3,302	(4,067)
Decrease in Cash and Cash Equivalents	(438)	(12,936)
Cash and Cash Equivalents, Beginning of Period	7,981	25,353
Cash and Cash Equivalents, End of Period	7,543	12,417
Cash paid during the period for:
Interest on deposits and borrowings	553	459
Supplemental Disclosure of Noncash Investing Activities
Transfers from loans to loans held for sale	2,057
Transfers from loans to real estate acquired through foreclosure	$ 338	$ 82

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Condensed Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Allowance for loan losses	$ 1,155	$ 1,155	$ 1,147	$ 1,047	$ 1,047	$ 1,273

XML

Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2015

Banking And Thrift [Abstract]

Summary of Bank's Actual Capital Amounts and Ratios

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

												To Be Well Capitalized
							For Capital Adequacy					Under Prompt Corrective
	Actual						Purposes					Action Provisions
	Amount		Ratio				Amount		Ratio			Amount		Ratio
						(Dollars in thousands)
As of September 30, 2015(Unaudited)
Total Capital
(to Risk-Weighted Assets)	$	10,810		16.5	%		$	5,226		8.0	%	$	6,533		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	9,990		15.3	%		$	3,920		6.0	%	$	5,226		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	9,990		15.3	%		$	2,940		4.5	%	$	4,246		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	9,990		10.6	%		$	3,766		4.0	%	$	4,707		5.0	%
As of December 31, 2014
Total Capital
(to Risk-Weighted Assets)	$	10,817		16.3	%		$	5,316		8.0	%	$	6,645		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	9,982		15.0	%		$	2,658		4.0	%	$	3,987		6.0	%
Tier I Capital
(to Total Assets)	$	9,982		11.0	%		$	3,627		4.0	%	$	5,441		6.0	%

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 13, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Entity Registrant Name	New Bancorp, Inc.
Entity Central Index Key	0001644482
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		696,600

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Disclosures about Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets Measured at Fair Value on Non-recurring Basis

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 September 30, 2015 and December 31, 2014:

			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)
September 30, 2015 (Unaudited)
Impaired loans, collateral dependent	$	83	$	—	$	—	$	83
Foreclosed assets held for sale		308		—		—		308
December 31, 2014
Impaired loans, collateral dependent	$	540	$	—	$	—	$	540
Foreclosed assets held for sale		76		—		—		76

Quantitative Information about Unobservable Inputs Used in Nonrecurring Level 3 Fair Value Measurements

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)
September 30, 2015 (unaudited)
Impaired loans (collateral dependent)	$	83	Marketable comparable properties	Marketability discount	18%
Foreclosed real estate		308	Marketable comparable properties	Comparability adjustments	9%
December 31, 2014
Impaired loans (collateral dependent)	$	540	Marketable comparable properties	Marketability discount	10%-15%
Foreclosed real estate		76	Marketable comparable properties	Comparability adjustments	10%

Estimated Fair Values of the Bank's Financial Instruments

The following table presents the estimated fair values of the Bank’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2015 and December 31, 2014.

					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)
September 30, 2015 (Unaudited)
Financial assets
Cash and due from banks	$	704	$	704	$	704	$	—	$	—
Interest-earning demand deposits		6,839		6,839		6,839		—		—
Interest-earning time deposits in banks		992		992		—		992		—
Loans held for sale		272		272		—		272		—
Loans, net		73,327		73,774		—		—		73,774
Federal Home Loan Bank stock		468		468		—		468		—
Accrued interest receivable		189		189		—		189		—
Mortgage servicing rights		318		318		—		—		318
Financial liabilities
Deposits		71,292		72,028		38,892		33,136		—
Advances from the Federal Home Loan Bank		6,927		7,134		—		7,134		—
Stock subscription proceeds in escrow		2,378		2,378		2,378		—		—
Accrued interest payable		2		2		—		2		—
December 31, 2014
Financial assets
Cash and due from banks	$	5,165	$	5,165	$	5,165	$	—	$	—
Interest-earning demand deposits		2,816		2,816		2,816		—		—
Interest-earning time deposits in banks		992		992		—		992		—
Loans held for sale		581		592		—		592		—
Loans, net		72,365		72,959		—		—		72,959
Federal Home Loan Bank stock		678		678		—		678		—
Accrued interest receivable		187		187		—		187		—
Mortgage servicing rights		269		269		—		—		269
Financial liabilities
Deposits		67,868		68,507		41,231		27,276		—
Federal funds purchased		2,500		2,500		2,500		—		—
Advances from the Federal Home Loan Bank		6,927		7,049		—		7,049		—
Accrued interest payable		9		9		—		9		—

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Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Income
Loans	$ 790	$ 730	$ 2,372	$ 2,118
Investment securities		2		7
Interest-bearing deposits	10	13	31	42
Total interest income	800	745	2,403	2,167
Interest Expense
Deposits	157	137	444	423
Borrowings	33	18	102	32
Total interest expense	190	155	546	455
Net Interest Income	610	590	1,857	1,712
Provision (Credit) for Loan Losses				(200)
Net Interest Income After Provision (Credit) for Loan Losses	610	590	1,857	1,912
Noninterest Income
Service charges and fees	76	71	231	215
Gain on sale of loans	62	3	341	25
Loss on sale of foreclosed real estate, net	(1)	(96)	(1)	(110)
Income from bank owned life insurance	42	41	124	121
Loan servicing fees, net	13	5	17	34
Other operating	6	2	16	21
Total noninterest income	198	26	728	306
Noninterest Expense
Salaries and employee benefits	467	520	1,366	1,537
Occupancy and equipment	94	111	335	332
Data processing fees	107	105	300	295
Insurance premiums	32	8	94	95
Professional services	24	165	124	326
Impairment losses and expenses of foreclosed real estate	113	79	133	203
Other	91	83	252	257
Total noninterest expense	928	1,071	2,604	3,045
Loss Before Federal Income Taxes (Credits)	(120)	(455)	(19)	(827)
Net Loss	$ (120)	$ (455)	$ (19)	$ (827)

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Disclosures about Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Disclosures about Fair Value of Assets and Liabilities

Note 5: Disclosures about Fair Value of Assets and Liabilities

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

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

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

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

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 September 30, 2015 and December 31, 2014:

			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)
September 30, 2015 (Unaudited)
Impaired loans, collateral dependent	$	83	$	—	$	—	$	83
Foreclosed assets held for sale		308		—		—		308
December 31, 2014
Impaired loans, collateral dependent	$	540	$	—	$	—	$	540
Foreclosed assets held for sale		76		—		—		76

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)
September 30, 2015 (unaudited)
Impaired loans (collateral dependent)	$	83	Marketable comparable properties	Marketability discount	18%
Foreclosed real estate		308	Marketable comparable properties	Comparability adjustments	9%
December 31, 2014
Impaired loans (collateral dependent)	$	540	Marketable comparable properties	Marketability discount	10%-15%
Foreclosed real estate		76	Marketable comparable properties	Comparability adjustments	10%

Fair Value of Financial Instruments

The following table presents the estimated fair values of the Bank’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2015 and December 31, 2014.

					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)
September 30, 2015 (Unaudited)
Financial assets
Cash and due from banks	$	704	$	704	$	704	$	—	$	—
Interest-earning demand deposits		6,839		6,839		6,839		—		—
Interest-earning time deposits in banks		992		992		—		992		—
Loans held for sale		272		272		—		272		—
Loans, net		73,327		73,774		—		—		73,774
Federal Home Loan Bank stock		468		468		—		468		—
Accrued interest receivable		189		189		—		189		—
Mortgage servicing rights		318		318		—		—		318
Financial liabilities
Deposits		71,292		72,028		38,892		33,136		—
Advances from the Federal Home Loan Bank		6,927		7,134		—		7,134		—
Stock subscription proceeds in escrow		2,378		2,378		2,378		—		—
Accrued interest payable		2		2		—		2		—
December 31, 2014
Financial assets
Cash and due from banks	$	5,165	$	5,165	$	5,165	$	—	$	—
Interest-earning demand deposits		2,816		2,816		2,816		—		—
Interest-earning time deposits in banks		992		992		—		992		—
Loans held for sale		581		592		—		592		—
Loans, net		72,365		72,959		—		—		72,959
Federal Home Loan Bank stock		678		678		—		678		—
Accrued interest receivable		187		187		—		187		—
Mortgage servicing rights		269		269		—		—		269
Financial liabilities
Deposits		67,868		68,507		41,231		27,276		—
Federal funds purchased		2,500		2,500		2,500		—		—
Advances from the Federal Home Loan Bank		6,927		7,049		—		7,049		—
Accrued interest payable		9		9		—		9		—

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 and Interest-earning Demand Deposits

The carrying amount approximates fair value.

Interest-earning Time Deposits in Banks

The carrying amount approximates fair value.

Loans Held For Sale

Fair value is based on prices quoted by the U.S. government sponsored agencies generally used by the Bank in sales transactions.

Loans

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.

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 Funds Purchased

The carrying amount approximates fair value.

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.

Stock Subscription Proceeds in Escrow

The carrying amounts of stock subscription proceeds in escrow approximate fair value resulting in a Level 1 classification.

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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Regulatory Matters

9 Months Ended

Sep. 30, 2015

Banking And Thrift [Abstract]

Regulatory Matters

Note 4: Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory- and possibly additional discretionary- actions by regulators that, if undertaken, could have a direct material effect on the 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.  

Quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios (set forth in the table below), for periods through December 31, 2014, of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to total assets (as defined).  

At September 30, 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.

Management believes, as of September 30, 2015 (unaudited) and December 31, 2014, that the Bank meets all capital adequacy requirements to which it is subject.

As of September 30, 2015 (unaudited) and December 31, 2014, 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 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:

												To Be Well Capitalized
							For Capital Adequacy					Under Prompt Corrective
	Actual						Purposes					Action Provisions
	Amount		Ratio				Amount		Ratio			Amount		Ratio
						(Dollars in thousands)
As of September 30, 2015(Unaudited)
Total Capital
(to Risk-Weighted Assets)	$	10,810		16.5	%		$	5,226		8.0	%	$	6,533		10.0	%
Tier 1 Capital
(to Risk-Weighted Assets)	$	9,990		15.3	%		$	3,920		6.0	%	$	5,226		8.0	%
Common Equity Tier I Capital
(to Risk-Weighted Assets)	$	9,990		15.3	%		$	2,940		4.5	%	$	4,246		6.5	%
Tier I Leverage Capital
(to Average Total Assets)	$	9,990		10.6	%		$	3,766		4.0	%	$	4,707		5.0	%
As of December 31, 2014
Total Capital
(to Risk-Weighted Assets)	$	10,817		16.3	%		$	5,316		8.0	%	$	6,645		10.0	%
Tier I Capital
(to Risk-Weighted Assets)	$	9,982		15.0	%		$	2,658		4.0	%	$	3,987		6.0	%
Tier I Capital
(to Total Assets)	$	9,982		11.0	%		$	3,627		4.0	%	$	5,441		6.0	%

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Loans and Allowance for Loan Losses - Credit Risk Profile of Bank's Loan Portfolio Based on Internal Rating Category and Payment Activity (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable Recorded Investment [Line Items]
Total loans	$ 74,754	$ 73,985
Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	40,337	37,481
Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	26,356	26,633
Construction and Land Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	6,597	7,854
Commercial Business
Financing Receivable Recorded Investment [Line Items]
Total loans	1,077	1,625
Consumer
Financing Receivable Recorded Investment [Line Items]
Total loans	387	392
Pass
Financing Receivable Recorded Investment [Line Items]
Total loans	71,162	70,283
Pass | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	38,735	35,820
Pass | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	24,542	24,777
Pass | Construction and Land Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	6,421	7,669
Pass | Commercial Business
Financing Receivable Recorded Investment [Line Items]
Total loans	1,077	1,625
Pass | Consumer
Financing Receivable Recorded Investment [Line Items]
Total loans	387	392
Special Mention
Financing Receivable Recorded Investment [Line Items]
Total loans	554	533
Special Mention | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	544	514
Special Mention | Construction and Land Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	10	19
Substandard
Financing Receivable Recorded Investment [Line Items]
Total loans	3,038	2,438
Substandard | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	1,602	1,096
Substandard | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	1,270	1,342
Substandard | Construction and Land Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans	$ 166
Doubtful
Financing Receivable Recorded Investment [Line Items]
Total loans		731
Doubtful | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans		565
Doubtful | Construction and Land Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans		$ 166

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Securities - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]
Investment securities	$ 0		$ 0		$ 0
Sales of investment securities	$ 0	$ 0	$ 0	$ 0

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Use of Estimates

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.

Recent Accounting Pronouncements

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.

Financial Accounting Standards Board (FASB) ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40):  Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure

In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized.  The ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015.  The Company will adopt this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results or operations.  

FASB ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. With the issuance of ASU 2015-14 on July 9, 2015, FASB approved the deferral of the effective date of ASU 2014-09 for one year giving companies the option to early adopt using the original effective dates. Management is currently in the process of evaluating the impact of the amended guidance on the Bank’s financial statements.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2015

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

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.

Financial Accounting Standards Board (FASB) ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40):  Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure

In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized.  The ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015.  The Company will adopt this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results or operations.  

FASB ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is prohibited. With the issuance of ASU 2015-14 on July 9, 2015, FASB approved the deferral of the effective date of ASU 2014-09 for one year giving companies the option to early adopt using the original effective dates. Management is currently in the process of evaluating the impact of the amended guidance on the Bank’s financial statements.

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Plan of Conversion and Change in Corporate Form

9 Months Ended

Sep. 30, 2015

Plan Of Conversion And Change In Corporate Form [Abstract]

Plan of Conversion and Change in Corporate Form

Note 7: Plan of Conversion and Change in Corporate Form

On May 28, 2015, the Bank’s Board of Directors adopted a Plan of Conversion (the “Plan”) to convert from a federal mutual savings bank to a federal stock savings bank (the “Conversion”).  A new Maryland-chartered corporation, New Bancorp, Inc. (the “Company”), was formed in June 2015, which, upon consummation of the Conversion and offering, became the savings and loan holding company of the Bank. The Plan was subject to approval of the members of the Bank, which approval was received at a Special Meeting of Members on September 15, 2015.

Additionally, the Plan was subject to the final approval of the Office of the Comptroller of the Currency (“OCC”) and the formation of the Company as the holding company of the Bank, upon consummation of the Conversion, is subject to the approval of the Board of Governors of the Federal Reserve System (“FRB”). As part of the Conversion and offering, the Company filed a registration statement with the U.S. Securities and Exchange Commission.  Upon receipt of the final approval of the OCC and the FRB and the consummation of the Conversion and offering, the Bank became the wholly owned subsidiary of the Company, and the Company issued and sold shares of its capital stock to eligible depositors and borrowers of the Bank and the public pursuant to an independent valuation appraisal of the Bank and the Company on a converted basis that has been conducted by an independent appraisal firm that is experienced in appraising financial institutions in connection with mutual to stock conversions.  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 was deferred and deducted from the proceeds of the offering.  Through September 30, 2015, the Bank had incurred approximately $579,000 in conversion costs, which are included in prepaid expenses and other assets on the condensed balance sheet.

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.

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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Classes of Loans

Classes of loans at September 30, 2015 and December 31, 2014 include:

	September 30,			December 31,
	2015			2014
	(Unaudited)
	(In thousands)
Real estate loans
Residential	$	40,337		$	37,481
Commercial		26,356			26,633
Construction and land		6,597			7,854
Commercial business		1,077			1,625
Consumer and other		387			392
Total loans		74,754			73,985
Less:
Net deferred loan fees, premiums and    discounts		(4	)		2
Undisbursed loans in process		(268	)		(475	)
Allowance for loan losses		(1,155	)		(1,147	)
Net loans	$	73,327		$	72,365

Activity in Allowance for Loan Losses and Recorded Investment and Impairment Method

The following tables present by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 and the recorded investment in loans and impairment method as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
	Real Estate
						Construction			Commercial
	Residential		Commercial			and Land			Business			Consumer			Total
	(In thousands)
Three months ended September 30, 2015
Allowance for loan losses:
Balance, July 1, 2015	$	599	$	421		$	106		$	23		$	6		$	1,155
Provision (credit) for loan losses		40		(31	)		(1	)		(6	)		(2	)		—
Charge-offs		—		—			—			—			—			—
Recoveries		—		—			—			—			—			—
Balance, September 30, 2015	$	639	$	390		$	105		$	17		$	4		$	1,155
Nine months ended September 30, 2015
Allowance for loan losses:
Balance, January 1, 2015	$	575	$	418		$	126		$	23		$	5		$	1,147
Provision (credit) for loan losses		56		(28	)		(21	)		(6	)		(1	)		—
Charge-offs		—		—			—			—			—			—
Recoveries		8		—			—			—			—			8
Balance, September 30, 2015	$	639	$	390		$	105		$	17		$	4		$	1,155
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	18	$	—		$	—		$	—		$	—		$	18
Ending balance, collectively evaluated for impairment	$	621	$	390		$	105		$	17		$	4		$	1,137
Loans:
Ending balance	$	40,337	$	26,356		$	6,597		$	1,077		$	387		$	74,754
Ending balance; individually evaluated for impairment	$	1,865	$	244		$	1,809		$	—		$	—		$	3,918
Ending balance; collectively evaluated for impairment	$	38,472	$	26,112		$	4,788		$	1,077		$	387		$	70,836

	September 30, 2014 (Unaudited)
	Real Estate
							Construction			Commercial
	Residential			Commercial			and Land			Business			Consumer		Total
	(In thousands)
Three months ended September 30, 2014
Allowance for loan losses:
Balance, July 1, 2014	$	569		$	333		$	111		$	30		$	4	$	1,047
Provision (credit) for loan losses		30			(23	)		(6	)		(1	)		—		—
Charge-offs		—			—			—			—			—		—
Recoveries		—			—			—			—			—		—
Balance, September 30, 2014	$	599		$	310		$	105		$	29		$	4	$	1,047
Nine months ended September 30, 2014
Allowance for loan losses:
Balance, January 1, 2014	$	596		$	513		$	127		$	34		$	3	$	1,273
Provision (credit) for loan losses		29			(203	)		(22	)		(5	)		1		(200	)
Charge-offs		(26	)		—			—			—			—		(26	)
Recoveries		—			—			—			—			—		—
Balance, September 30, 2014	$	599		$	310		$	105		$	29		$	4	$	1,047

	December 31, 2014
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance	$	575	$	418	$	126	$	23	$	5	$	1,147
Ending balance, individually evaluated for impairment	$	26	$	—	$	—	$	—	$	—	$	26
Ending balance, collectively evaluated for impairment	$	549	$	418	$	126	$	23	$	5	$	1,121
Loans:
Ending balance	$	37,481	$	26,633	$	7,854	$	1,625	$	392	$	73,985
Ending balance; individually evaluated for impairment	$	2,183	$	214	$	1,856	$	—	$	—	$	4,253
Ending balance; collectively evaluated for impairment	$	35,298	$	26,419	$	5,998	$	1,625	$	392	$	69,732

Credit Risk Profile of Bank's Loan Portfolio Based on Internal Rating Category and Payment Activity

The following tables present the credit risk profile of the Bank’s loan portfolio based on internal rating category and payment activity as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Pass	$	38,735	$	24,542	$	6,421	$	1,077	$	387	$	71,162
Special mention		—		544		10		—		—		554
Substandard		1,602		1,270		166		—		—		3,038
Doubtful		—		—		—		—		—		—
Total	$	40,337	$	26,356	$	6,597	$	1,077	$	387	$	74,754

	December 31, 2014
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Pass	$	35,820	$	24,777	$	7,669	$	1,625	$	392	$	70,283
Special mention		—		514		19		—		—		533
Substandard		1,096		1,342		—		—		—		2,438
Doubtful		565		—		166		—		—		731
Total	$	37,481	$	26,633	$	7,854	$	1,625	$	392	$	73,985

Bank's Loan Portfolio Aging Analysis of Recorded Investment in Loans

The following tables present the Bank’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
Residential	$	377	$	89	$	566	$	1,032	$	39,305	$	40,337	$	—
Commercial		—		—		—		—		26,356		26,356		—
Construction and land		—		—		166		166		6,431		6,597		—
Commercial business		—		—		—		—		1,077		1,077		—
Consumer		—		—		—		—		387		387		—
Total	$	377	$	89	$	732	$	1,198	$	73,556	$	74,754	$	—

	December 31, 2014
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
Residential	$	298	$	109	$	565	$	972	$	36,509	$	37,481	$	—
Commercial		—		—		—		—		26,633		26,633		—
Construction and land		—		—		166		166		7,688		7,854		—
Commercial business		—		—		—		—		1,625		1,625		—
Consumer		22		—		—		22		370		392		—
Total	$	320	$	109	$	731	$	1,160	$	72,825	$	73,985	$	—

Impaired Loans

The following table presents impaired loans as of September 30, 2015 and for the three month periods ended September 30, 2015 and 2014:

	As of						For the Three Months Ended
	September 30, 2015							September 30, 2015				September 30, 2014
								Average				Average
			Unpaid					Balance of		Interest		Balance of		Interest
	Recorded		Principal		Specific			Impaired		Income		Impaired		Income
	Balance		Balance		Allowance			Loans		Recognized		Loans		Recognized
	(Unaudited)
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,714	$	1,750	$	—		$	1,600	$	23	$	1,488	$	15
Commercial		244		244		—			247		4		219		4
Construction and land		1,809		1,809		—			1,817		23		1,856		27
Commercial business		—		—		—			—		—		—		—
Consumer		—		—		—			—		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		151		162		18			89		—		248		—
Commercial		—		—		—			—		—		—		—
Construction and land		—		—		—			—		—		—		—
Commercial business		—		—		—			—		—		—		—
Consumer		—		—		—			—		—		—		—
Totals	$	3,918	$	3,965	$	18		$	3,753	$	50	$	3,811	$	46

The following table presents impaired loan information for the nine month periods ended September 30, 2015 and 2014:

	For the Nine Months Ended
	September 30, 2015				September 30, 2014
	Average				Average
	Balance of		Interest		Balance of		Interest
	Impaired		Income		Impaired		Income
	Loans		Recognized		Loans		Recognized
	(Unaudited)
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,489	$	54	$	2,188	$	57
Commercial		241		12		241		11
Construction and land		1,833		66		1,755		73
Commercial business		—		—		—		—
Consumer		—		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		62		—		253		—
Commercial		—		—		—		—
Construction and land		—		—		—		—
Commercial business		—		—		—		—
Consumer		—		—		—		—
Totals	$	3,625	$	132	$	4,437	$	141

The following table presents impaired loans as of December 31, 2014:

	As of December 31, 2014
			Unpaid
	Recorded		Principal		Specific
	Balance		Balance		Allowance
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,617	$	1,630	$	—
Commercial		214		214		—
Construction and land		1,856		1,856		—
Commercial business		—		—		—
Consumer		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		566		584		26
Commercial		—		—		—
Construction and land		—		—		—
Commercial business		—		—		—
Consumer		—		—		—
Totals	$	4,253	$	4,284	$	26

Bank's Nonaccrual Loans, Excludes Performing Troubled Debt Restructurings

The following table presents the Bank’s nonaccrual loans at September 30, 2015 and December 31, 2014.  The table excludes performing troubled debt restructurings.

	September 30,		December 31,
	2015		2014
	(Unaudited)
	(In thousands)
Real estate loans
Residential	$	1,084	$	1,033
Commercial		7		11
Construction and land		166		166
Commercial business		—		—
Consumer and other		—		—
Total nonaccrual	$	1,257	$	1,210

Information Regarding Troubled Debt Restructurings by Class

The following tables present information regarding troubled debt restructurings by class for the three and nine months ended September 30, 2015 and 2014.  Newly classified troubled debt restructurings are as follows:

			Pre-		Post-
	Number of		Modification		Modification
For the nine months ended:	Contracts		Balance		Balance
September 30, 2015 (Unaudited)			(In thousands)
Real estate
Residential		1	$	50	$	50
Commercial		2		42		42
		3	$	92	$	92
September 30, 2014 (Unaudited)
Real estate
Residential		2	$	116	$	116
Construction and land		2		319		319
		4	$	435	$	435

			Pre-		Post-
	Number of		Modification		Modification
For the three months ended:	Contracts		Balance		Balance
September 30, 2015 (Unaudited)			(In thousands)
Real estate
Residential		1	$	50	$	50
September 30, 2014 (Unaudited)
Real estate
Residential		2	$	116	$	116
Construction and land		1		23		23
		3	$	139	$	139

Newly restructured loans by type of modification are as follows for the three and nine months ended September 30, 2015 and 2014.

							Total
For the nine months ended:	Interest Only		Term		Combination		Modification
September 30, 2015 (Unaudited)	(In thousands)
Real estate
Residential	$	—	$	50	$	—	$	50
Commercial		—		42		—		42
	$	—	$	92	$	—	$	92
September 30, 2014 (Unaudited)
Real estate
Residential	$	—	$	—	$	116	$	116
Construction and land		—		296		23		319
	$	—	$	296	$	139	$	435

							Total
For the three months ended:	Interest Only		Term		Combination		Modification
September 30, 2015 (Unaudited)	(In thousands)
Real estate
Residential	$	—	$	50	$	—	$	50
September 30, 2014 (Unaudited)		—		—		—		—
Real estate
Residential	$	—	$	—	$	116	$	116
Construction and land		—		—		23		23
	$	—	$	—	$	139	$	139

XML

Loans and Allowance for Loan Losses - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($) Contract	Sep. 30, 2014 Contract	Dec. 31, 2014 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Number of troubled debt restructuring, subsequently defaulted	0	0
Number of days, past due for loan payment default	30 days
Residential Real Estate | Home Equity Loans
Accounts Notes And Loans Receivable [Line Items]
Secured loans | $	$ 3.7		$ 3.4

XML

Loans and Allowance for Loan Losses - Bank's Nonaccrual Loans, Excludes Performing Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual	$ 1,257	$ 1,210
Residential Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual	1,084	1,033
Commercial Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual	7	11
Construction and Land Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual	$ 166	$ 166

XML

Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (120)	$ (455)	$ (19)	$ (827)
Other comprehensive income:
Unrealized holding gains on securities during the period				13
Comprehensive loss	$ (120)	$ (455)	$ (19)	$ (814)

XML

Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans and Allowance for Loan Losses

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 September 30, 2015 and December 31, 2014 include:

	September 30,			December 31,
	2015			2014
	(Unaudited)
	(In thousands)
Real estate loans
Residential	$	40,337		$	37,481
Commercial		26,356			26,633
Construction and land		6,597			7,854
Commercial business		1,077			1,625
Consumer and other		387			392
Total loans		74,754			73,985
Less:
Net deferred loan fees, premiums and    discounts		(4	)		2
Undisbursed loans in process		(268	)		(475	)
Allowance for loan losses		(1,155	)		(1,147	)
Net loans	$	73,327		$	72,365

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 $3.7 million and $3.4 million at September 30, 2015 and December 31, 2014, 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 nine months ended September 30, 2015 and 2014 and the recorded investment in loans and impairment method as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
	Real Estate
						Construction			Commercial
	Residential		Commercial			and Land			Business			Consumer			Total
	(In thousands)
Three months ended September 30, 2015
Allowance for loan losses:
Balance, July 1, 2015	$	599	$	421		$	106		$	23		$	6		$	1,155
Provision (credit) for loan losses		40		(31	)		(1	)		(6	)		(2	)		—
Charge-offs		—		—			—			—			—			—
Recoveries		—		—			—			—			—			—
Balance, September 30, 2015	$	639	$	390		$	105		$	17		$	4		$	1,155
Nine months ended September 30, 2015
Allowance for loan losses:
Balance, January 1, 2015	$	575	$	418		$	126		$	23		$	5		$	1,147
Provision (credit) for loan losses		56		(28	)		(21	)		(6	)		(1	)		—
Charge-offs		—		—			—			—			—			—
Recoveries		8		—			—			—			—			8
Balance, September 30, 2015	$	639	$	390		$	105		$	17		$	4		$	1,155
Allowance for loan losses:
Ending balance, individually evaluated for impairment	$	18	$	—		$	—		$	—		$	—		$	18
Ending balance, collectively evaluated for impairment	$	621	$	390		$	105		$	17		$	4		$	1,137
Loans:
Ending balance	$	40,337	$	26,356		$	6,597		$	1,077		$	387		$	74,754
Ending balance; individually evaluated for impairment	$	1,865	$	244		$	1,809		$	—		$	—		$	3,918
Ending balance; collectively evaluated for impairment	$	38,472	$	26,112		$	4,788		$	1,077		$	387		$	70,836

	September 30, 2014 (Unaudited)
	Real Estate
							Construction			Commercial
	Residential			Commercial			and Land			Business			Consumer		Total
	(In thousands)
Three months ended September 30, 2014
Allowance for loan losses:
Balance, July 1, 2014	$	569		$	333		$	111		$	30		$	4	$	1,047
Provision (credit) for loan losses		30			(23	)		(6	)		(1	)		—		—
Charge-offs		—			—			—			—			—		—
Recoveries		—			—			—			—			—		—
Balance, September 30, 2014	$	599		$	310		$	105		$	29		$	4	$	1,047
Nine months ended September 30, 2014
Allowance for loan losses:
Balance, January 1, 2014	$	596		$	513		$	127		$	34		$	3	$	1,273
Provision (credit) for loan losses		29			(203	)		(22	)		(5	)		1		(200	)
Charge-offs		(26	)		—			—			—			—		(26	)
Recoveries		—			—			—			—			—		—
Balance, September 30, 2014	$	599		$	310		$	105		$	29		$	4	$	1,047

	December 31, 2014
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending balance	$	575	$	418	$	126	$	23	$	5	$	1,147
Ending balance, individually evaluated for impairment	$	26	$	—	$	—	$	—	$	—	$	26
Ending balance, collectively evaluated for impairment	$	549	$	418	$	126	$	23	$	5	$	1,121
Loans:
Ending balance	$	37,481	$	26,633	$	7,854	$	1,625	$	392	$	73,985
Ending balance; individually evaluated for impairment	$	2,183	$	214	$	1,856	$	—	$	—	$	4,253
Ending balance; collectively evaluated for impairment	$	35,298	$	26,419	$	5,998	$	1,625	$	392	$	69,732

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: The loans identified as special mention have an obvious flaw or a potential weakness that deserves special management attention, but which has not yet impacted 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 Bank’s loan portfolio based on internal rating category and payment activity as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Pass	$	38,735	$	24,542	$	6,421	$	1,077	$	387	$	71,162
Special mention		—		544		10		—		—		554
Substandard		1,602		1,270		166		—		—		3,038
Doubtful		—		—		—		—		—		—
Total	$	40,337	$	26,356	$	6,597	$	1,077	$	387	$	74,754

	December 31, 2014
	Real Estate
					Construction		Commercial
	Residential		Commercial		and Land		Business		Consumer		Total
	(In thousands)
Pass	$	35,820	$	24,777	$	7,669	$	1,625	$	392	$	70,283
Special mention		—		514		19		—		—		533
Substandard		1,096		1,342		—		—		—		2,438
Doubtful		565		—		166		—		—		731
Total	$	37,481	$	26,633	$	7,854	$	1,625	$	392	$	73,985

The Bank 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 Bank’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2015 and December 31, 2014:

	September 30, 2015 (Unaudited)
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
Residential	$	377	$	89	$	566	$	1,032	$	39,305	$	40,337	$	—
Commercial		—		—		—		—		26,356		26,356		—
Construction and land		—		—		166		166		6,431		6,597		—
Commercial business		—		—		—		—		1,077		1,077		—
Consumer		—		—		—		—		387		387		—
Total	$	377	$	89	$	732	$	1,198	$	73,556	$	74,754	$	—

	December 31, 2014
													Total Loans >
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		90 Days &
	Past Due		Past Due		90 Days		Past Due		Current		Receivable		Accruing
	(In thousands)
Real estate
Residential	$	298	$	109	$	565	$	972	$	36,509	$	37,481	$	—
Commercial		—		—		—		—		26,633		26,633		—
Construction and land		—		—		166		166		7,688		7,854		—
Commercial business		—		—		—		—		1,625		1,625		—
Consumer		22		—		—		22		370		392		—
Total	$	320	$	109	$	731	$	1,160	$	72,825	$	73,985	$	—

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.

The following table presents impaired loans as of September 30, 2015 and for the three month periods ended September 30, 2015 and 2014:

	As of						For the Three Months Ended
	September 30, 2015							September 30, 2015				September 30, 2014
								Average				Average
			Unpaid					Balance of		Interest		Balance of		Interest
	Recorded		Principal		Specific			Impaired		Income		Impaired		Income
	Balance		Balance		Allowance			Loans		Recognized		Loans		Recognized
	(Unaudited)
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,714	$	1,750	$	—		$	1,600	$	23	$	1,488	$	15
Commercial		244		244		—			247		4		219		4
Construction and land		1,809		1,809		—			1,817		23		1,856		27
Commercial business		—		—		—			—		—		—		—
Consumer		—		—		—			—		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		151		162		18			89		—		248		—
Commercial		—		—		—			—		—		—		—
Construction and land		—		—		—			—		—		—		—
Commercial business		—		—		—			—		—		—		—
Consumer		—		—		—			—		—		—		—
Totals	$	3,918	$	3,965	$	18		$	3,753	$	50	$	3,811	$	46

The following table presents impaired loan information for the nine month periods ended September 30, 2015 and 2014:

	For the Nine Months Ended
	September 30, 2015				September 30, 2014
	Average				Average
	Balance of		Interest		Balance of		Interest
	Impaired		Income		Impaired		Income
	Loans		Recognized		Loans		Recognized
	(Unaudited)
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,489	$	54	$	2,188	$	57
Commercial		241		12		241		11
Construction and land		1,833		66		1,755		73
Commercial business		—		—		—		—
Consumer		—		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		62		—		253		—
Commercial		—		—		—		—
Construction and land		—		—		—		—
Commercial business		—		—		—		—
Consumer		—		—		—		—
Totals	$	3,625	$	132	$	4,437	$	141

The following table presents impaired loans as of December 31, 2014:

	As of December 31, 2014
			Unpaid
	Recorded		Principal		Specific
	Balance		Balance		Allowance
	(In thousands)
Loans without a specific valuation allowance:
Real estate
Residential	$	1,617	$	1,630	$	—
Commercial		214		214		—
Construction and land		1,856		1,856		—
Commercial business		—		—		—
Consumer		—		—		—
Loans with a specific valuation allowance:
Real estate
Residential		566		584		26
Commercial		—		—		—
Construction and land		—		—		—
Commercial business		—		—		—
Consumer		—		—		—
Totals	$	4,253	$	4,284	$	26

The following table presents the Bank’s nonaccrual loans at September 30, 2015 and December 31, 2014.  The table excludes performing troubled debt restructurings.

	September 30,		December 31,
	2015		2014
	(Unaudited)
	(In thousands)
Real estate loans
Residential	$	1,084	$	1,033
Commercial		7		11
Construction and land		166		166
Commercial business		—		—
Consumer and other		—		—
Total nonaccrual	$	1,257	$	1,210

At September 30, 2015 (unaudited) and December 31, 2014, the Bank had certain loans that were modified in troubled debt restructurings and 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.

The following tables present information regarding troubled debt restructurings by class for the three and nine months ended September 30, 2015 and 2014.  Newly classified troubled debt restructurings are as follows:

			Pre-		Post-
	Number of		Modification		Modification
For the nine months ended:	Contracts		Balance		Balance
September 30, 2015 (Unaudited)			(In thousands)
Real estate
Residential		1	$	50	$	50
Commercial		2		42		42
		3	$	92	$	92
September 30, 2014 (Unaudited)
Real estate
Residential		2	$	116	$	116
Construction and land		2		319		319
		4	$	435	$	435

			Pre-		Post-
	Number of		Modification		Modification
For the three months ended:	Contracts		Balance		Balance
September 30, 2015 (Unaudited)			(In thousands)
Real estate
Residential		1	$	50	$	50
September 30, 2014 (Unaudited)
Real estate
Residential		2	$	116	$	116
Construction and land		1		23		23
		3	$	139	$	139

Newly restructured loans by type of modification are as follows for the three and nine months ended September 30, 2015 and 2014.

							Total
For the nine months ended:	Interest Only		Term		Combination		Modification
September 30, 2015 (Unaudited)	(In thousands)
Real estate
Residential	$	—	$	50	$	—	$	50
Commercial		—		42		—		42
	$	—	$	92	$	—	$	92
September 30, 2014 (Unaudited)
Real estate
Residential	$	—	$	—	$	116	$	116
Construction and land		—		296		23		319
	$	—	$	296	$	139	$	435

							Total
For the three months ended:	Interest Only		Term		Combination		Modification
September 30, 2015 (Unaudited)	(In thousands)
Real estate
Residential	$	—	$	50	$	—	$	50
September 30, 2014 (Unaudited)		—		—		—		—
Real estate
Residential	$	—	$	—	$	116	$	116
Construction and land		—		—		23		23
	$	—	$	—	$	139	$	139

The troubled debt restructurings described above did not increase the allowance for loan losses or result in a charge-off during the three and nine months ended September 30, 2015 and 2014.

The Bank had no troubled debt restructurings modified in the twelve months ended September 30, 2015 and 2014 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 Bank’s internal underwriting policy.

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Loans and Allowance for Loan Losses - Newly Classified Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Contract	Sep. 30, 2014 USD ($) Contract	Sep. 30, 2015 USD ($) Contract	Sep. 30, 2014 USD ($) Contract
Financing Receivable Modifications [Line Items]
Number of Contracts | Contract		3	3	4
Pre-Modification Balance		$ 139	$ 92	$ 435
Post-Modification Balance		$ 139	$ 92	$ 435
Residential Real Estate
Financing Receivable Modifications [Line Items]
Number of Contracts | Contract	1	2	1	2
Pre-Modification Balance	$ 50	$ 116	$ 50	$ 116
Post-Modification Balance	$ 50	$ 116	$ 50	$ 116
Commercial Real Estate
Financing Receivable Modifications [Line Items]
Number of Contracts | Contract			2
Pre-Modification Balance			$ 42
Post-Modification Balance			$ 42
Construction and Land Real Estate
Financing Receivable Modifications [Line Items]
Number of Contracts | Contract		1		2
Pre-Modification Balance		$ 23		$ 319
Post-Modification Balance		$ 23		$ 319

XML

Loans and Allowance for Loan Losses - Classes of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Accounts Notes And Loans Receivable [Line Items]
Total loans	$ 74,754		$ 73,985
Net deferred loan fees, premiums and discounts	(4)		2
Undisbursed loans in process	(268)		(475)
Allowance for loan losses	(1,155)	$ (1,155)	(1,147)	$ (1,047)	$ (1,047)	$ (1,273)
Net loans	73,327		72,365
Residential Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans	40,337		37,481
Allowance for loan losses	(639)	(599)	(575)	(599)	(569)	(596)
Commercial Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans	26,356		26,633
Allowance for loan losses	(390)	(421)	(418)	(310)	(333)	(513)
Construction and Land Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans	6,597		7,854
Allowance for loan losses	(105)	(106)	(126)	(105)	(111)	(127)
Commercial Business
Accounts Notes And Loans Receivable [Line Items]
Total loans	1,077		1,625
Allowance for loan losses	(17)	$ (23)	(23)	$ (29)	$ (30)	$ (34)
Consumer and Other
Accounts Notes And Loans Receivable [Line Items]
Total loans	$ 387		$ 392