Broadway Financial (BYFC) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 07, 2018
Entity Registrant Name	BROADWAY FINANCIAL CORP \DE\
Entity Central Index Key	1,001,171
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Common Stock, Voting
Entity Common Stock, Shares Outstanding		18,662,402
Common Stock, Non-Voting
Entity Common Stock, Shares Outstanding		8,756,396

Consolidated Statements of Fina

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 3,333	$ 3,420
Interest-bearing deposits in other banks	10,081	18,799
Cash and cash equivalents	13,414	22,219
Securities available-for-sale, at fair value	15,243	17,494
Loans receivable held for sale, at lower of cost or fair value	19,087	22,370
Loans receivable held for investment, net of allowance of $3,183 and $4,069	355,272	334,851
Accrued interest receivable	1,241	1,073
Federal Home Loan Bank (FHLB) stock, at cost	2,916	2,916
Office properties and equipment, net	2,296	2,406
Bank owned life insurance	3,033	2,994
Deferred tax assets, net	4,903	5,110
Investment in affordable housing limited partnership	391	537
Real estate owned (REO)	833	878
Other assets	837	856
Total assets	419,466	413,704
Liabilities:
Deposits	278,885	291,290
FHLB advances	82,000	65,000
Junior subordinated debentures	5,100	5,100
Advance payments by borrowers for taxes and insurance	1,520	1,071
Accrued expenses and other liabilities	3,948	3,512
Total liabilities	371,453	365,973
Stockholders' Equity:
Preferred stock, $.01 par value, authorized 1,000,000 shares; none issued or outstanding
Additional paid-in capital	46,131	46,117
Retained earnings	8,356	7,816
Unearned Employee Stock Ownership Plan (ESOP) shares	(1,043)	(1,095)
Accumulated other comprehensive loss	(405)	(81)
Treasury stock-at cost, 2,617,826 shares at September 30, 2018 and at December 31, 2017	(5,326)	(5,326)
Total stockholders' equity	48,013	47,731
Total liabilities and stockholders' equity	419,466	413,704
Common Stock | Common Stock, Voting
Stockholders' Equity:
Common stock	213	213
Total stockholders' equity	213	213
Common Stock | Common Stock, Non-Voting
Stockholders' Equity:
Common stock	87	87
Total stockholders' equity	$ 87	$ 87

Consolidated Statements of Fi_2

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Allowance for loan losses (in dollars)	$ 3,183	$ 4,069
Stockholders' Equity:
Treasury stock, shares	2,617,826	2,617,826
Preferred stock
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock | Common Stock, Voting
Stockholders' Equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	21,280,228	21,312,649
Common stock, shares outstanding	18,662,402	18,694,823
Common Stock | Common Stock, Non-Voting
Stockholders' Equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	8,756,396	8,756,396
Common stock, shares outstanding	8,756,396	8,756,396

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest income:
Interest and fees on loans receivable	$ 3,690	$ 4,127	$ 10,614	$ 12,035
Interest on mortgage-backed and other securities	100	69	313	217
Other interest income	113	148	368	365
Total interest income	3,903	4,344	11,295	12,617
Interest expense:
Interest on deposits	821	611	2,137	1,782
Interest on borrowings	578	494	1,308	1,515
Total interest expense	1,399	1,105	3,445	3,297
Net interest income	2,504	3,239	7,850	9,320
Loan loss provision recapture	1,000	300	1,000	950
Net interest income after loan loss provision recapture	3,504	3,539	8,850	10,270
Non-interest income:
Service charges	110	117	336	338
Gain on sale of loans	9	160	20	383
CDFI Grant	233		233
Income from litigation settlement				1,183
Other	28	28	92	82
Total non-interest income	380	305	681	1,986
Non-interest expense:
Compensation and benefits	1,721	1,878	5,377	5,193
Occupancy expense	330	333	963	953
Information services	191	202	611	610
Professional services	126	120	497	525
Office services and supplies	70	72	218	225
REO expense	46	12	132	10
Marketing expense	64	36	201	137
Corporate insurance	35	50	113	143
Amortization of investment in affordable housing limited partnership	49	48	146	146
Other	169	306	498	826
Total non-interest expense	2,801	3,057	8,756	8,768
Income before income taxes	1,083	787	775	3,488
Income tax expense	332	284	235	1,220
Net income	751	503	540	2,268
Other comprehensive (loss) gain, net of tax:
Unrealized (losses) gains on securities available-for-sale arising during the period	(105)		(465)	3
Income tax (benefit) expense	34		141	(1)
Other comprehensive loss, net of tax	(71)		(324)	2
Comprehensive income	$ 680	$ 503	$ 216	$ 2,270
Earnings per common share-basic (in dollars per share)	$ 0.03	$ 0.02	$ 0.02	$ 0.09
Earnings per common share-diluted (in dollars per share)	$ 0.03	$ 0.02	$ 0.02	$ 0.08

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 540	$ 2,268
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Loan provision recapture	(1,000)	(950)
Provision for losses on REOs	45
Depreciation	181	194
Net amortization of deferred loan origination costs	323	216
Net amortization of premiums on mortgage-backed securities	26	23
Amortization of investment in affordable housing limited partnership	146	146
ESOP compensation expense	67	79
Earnings on bank owned life insurance	(39)	(41)
Originations of loans receivable held for sale	(20,288)	(94,972)
Proceeds from sales of loans receivable held for sale	6,614	81,853
Repayments on loans receivable held for sale	106	318
Gain on sale of loans receivable held for sale	(20)	(383)
Change in assets and liabilities:
Net change in deferred taxes	348	1,210
Net change in accrued interest receivable	(168)	65
Net change in other assets	19	110
Net change in advance payments by borrowers for taxes and insurance	449	709
Net change in accrued expenses and other liabilities	436	(222)
Net cash used in operating activities	(12,108)	(9,137)
Cash flows from investing activities:
Net change in loans receivable held for investment	(2,873)	49,371
Principal payments on available-for-sale securities	1,760	1,708
Purchase of FHLB stock		(343)
Additions to office properties and equipment	(71)	(177)
Net cash provided by (used in) investing activities	(1,184)	50,559
Cash flows from financing activities:
Net change in deposits	(12,405)	7,493
Proceeds from FHLB advances	34,500	29,500
Repayments of FHLB advances	(17,500)	(28,500)
Payment for tax withholding for vesting of restricted stock	(108)
Net cash provided by financing activities	4,487	8,493
Net change in cash and cash equivalents	(8,805)	49,915
Cash and cash equivalents at beginning of the period	22,219	18,430
Cash and cash equivalents at end of the period	13,414	68,345
Supplemental disclosures of cash flow information:
Cash paid for interest	3,357	3,168
Cash paid for income taxes		20
Supplemental disclosures of cash flow information:
Transfers of loans receivable held for investment to REO		958
Transfers of loans receivable held for investment to loans receivable held for sale		9,337
Supplemental disclosures of non-cash investing and financing:
Transfers of loans receivable held for sale to loans receivable held for investment	16,871
Common stock exchanged for payment of tax withholding	108
Directors
Supplemental disclosures of non-cash investing and financing:
Common stock issued to directors for compensation	45
Directors | Common Stock
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Stock-based compensation expense	45
Employees, excluding Directors
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Stock-based compensation expense	$ 62	$ 240

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common StockCommon Stock, Voting	Common StockCommon Stock, Non-Voting	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Retained Earnings Substantially Restricted	Unearned ESOP shares	Treasury Stock	Total
Balance at Dec. 31, 2017	$ 213	$ 87	$ 46,117	$ (81)	$ 7,816	$ (1,095)	$ (5,326)	$ 47,731
Increase (Decrease) in Stockholders' Equity
Net loss					(84)			(84)
Release of unearned ESOP shares			8			17		25
Restricted stock Compensation expense			26					26
Stock awarded to directors			45					45
Stock option compensation expense			10					10
Cancellation of shares issued to CEO			(108)					(108)
Unrealized gain on securities available for sale net of tax				(200)				(200)
Balance at Mar. 31, 2018	213	87	46,098	(281)	7,732	(1,078)	(5,326)	47,445
Balance at Dec. 31, 2017	213	87	46,117	(81)	7,816	(1,095)	(5,326)	47,731
Increase (Decrease) in Stockholders' Equity
Net loss								540
Balance at Sep. 30, 2018	213	87	46,131	(405)	8,356	(1,043)	(5,326)	48,013
Balance at Mar. 31, 2018	213	87	46,098	(281)	7,732	(1,078)	(5,326)	47,445
Increase (Decrease) in Stockholders' Equity
Net loss					(127)			(127)
Release of unearned ESOP shares			5			18		23
Restricted stock Compensation expense			3					3
Stock awarded to directors			10					10
Unrealized gain on securities available for sale net of tax				(53)				(53)
Balance at Jun. 30, 2018	213	87	46,116	(334)	7,605	(1,060)	(5,326)	47,301
Increase (Decrease) in Stockholders' Equity
Net loss					751			751
Release of unearned ESOP shares			2			17		19
Restricted stock Compensation expense			3					3
Stock awarded to directors			10					10
Unrealized gain on securities available for sale net of tax				(71)				(71)
Balance at Sep. 30, 2018	$ 213	$ 87	$ 46,131	$ (405)	$ 8,356	$ (1,043)	$ (5,326)	$ 48,013

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	9 Months Ended
	Sep. 30, 2018
Basis of Financial Statement Presentation
Basis of Financial Statement Presentation	NOTE (1) – Basis of Financial Statement Presentation The accompanying unaudited consolidated financial statements include Broadway Financial Corporation (the “Company”) and its wholly owned subsidiary, Broadway Federal Bank, f.s.b. (the “Bank”). Also included in the unaudited consolidated financial statements is Broadway Service Corporation, a wholly owned subsidiary of the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company's consolidated annual financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2017 and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. On January 1, 2018, the Company adopted ASU No. 2014-09 and all subsequent ASUs that modified Topic 606. The adoption did not have a material impact on the measurement or recognition of revenue; as such, a modified retrospective cumulative effect adjustment to beginning retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to non-interest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. The Company’s revenue streams that are within the scope of Topic 606 are primarily services charges on deposit accounts, which consist of monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-01 (i) amends existing guidance that requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. It requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In accordance with this standard, the Company measured the fair value of its financial assets and financial liabilities as of September 30, 2018 using an exit price notion (see Note 7 Fair Value). In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. ASU 2016-15 provides guidance on the classification of certain cash receipts and payments on the consolidated statement of cash flows in order to reduce diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, where the guidance should be applied using a retrospective transition method to each period presented. Early adoption is permitted. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)”, which allows an entity to elect a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. The amount of that reclassification should include the effect of changes of tax rate on the deferred tax amount, any related valuation allowance and other income tax effects on the items in AOCI. The standard requires an entity to state if an election to reclassify the tax effect to retained earnings is made along with the description of other income tax effects that are reclassified from AOCI. The guidance is effective for public business entities for annual periods beginning on or after December 15, 2018 and interim periods within those annual periods with early adoption permitted. The Company early adopted this amendment and has elected to reclassify $66 thousand from AOCI to retained earnings at December 31, 2017. Recent Accounting Pronouncements Yet to Be Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which is intended to increase transparency and comparability in the accounting for lease transactions. Under ASU 2016-02, lessees will be required to recognize all leases longer than twelve months on the Consolidated Statements of Financial Condition as lease assets and lease liabilities and make quantitative and qualitative disclosures regarding key information about leasing arrangements. Under the new guidance, lessor accounting is largely unchanged. These amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. Based on leases outstanding at September 30, 2018, the Company does not expect the standard to have a material impact on the Company’s Consolidated Statements of Income or Cash Flows, but does anticipate recording a liability of approximately $1.0 million as of March 31, 2019 for the remaining obligation under its lease agreements and a corresponding right-of-use asset in the Consolidated Statements of Financial Condition, which will have a minor impact on the Bank’s regulatory capital ratios. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For public business entities that meet the definition of an SEC filer, the standard will be effective for fiscal years beginning after Dec. 15, 2019, including interim periods in those fiscal years. All entities may early adopt for fiscal years beginning after Dec. 15, 2018, including interim periods in those fiscal years. For debt securities with other-than-temporary impairment, the guidance will be applied prospectively. Existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has begun its implementation efforts by identifying key interpretive issues, assessing its processes and identifying the system requirements against the new guidance to determine what modifications may be required. While the Company is still evaluating the overall impact on the new standard on its consolidated financial statements, the Company expects the adoption will result in an increase to the allowance for loan losses balance. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The ASU was issued to improve the effectiveness of disclosures surrounding fair value measurements. The ASU removes numerous disclosures from Topic 820 including; transfers between level 1 and 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation process for level 3 fair value measurements. The ASU also modified and added disclosure requirements in regards to changes in unrealized gains and losses included in other comprehensive income, as well as the range and weighted average of unobservable inputs for level 3 fair value measurements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The guidance is not expected to have a significant impact on the Company’s consolidated financial statements.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	9 Months Ended
	Sep. 30, 2018
Earnings Per Share of Common Stock
Earnings Per Share of Common Stock	NOTE (2) – Earnings Per Share of Common Stock Basic earnings per share of common stock is computed pursuant to the two-class method by dividing net income available to common stockholders less dividends paid on participating securities (unvested shares of restricted common stock) and any undistributed earnings attributable to participating securities by the weighted average common shares outstanding during the period. The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional potential common shares issuable under stock options. The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated: For the three months For the nine months ended September 30, ended September 30, 2018 2017 2018 2017 (Dollars in thousands, except per share) Net income $ 751 $ 503 $ 540 $ 2,268 Less net income attributable to participating securities (3) (1) (2) (5) Income available to common stockholders $ 748 $ 502 $ 538 $ 2,263 Weighted average common shares outstanding for basic earnings per common share 26,752,542 26,702,564 26,752,347 26,662,344 Add: dilutive effects of assumed exercises of stock options — 79,898 42,912 3,748 Add: dilutive effects of unvested restricted stock awards 4,267 42,345 8,474 56,552 Weighted average common shares outstanding for diluted earnings per common share 26,756,809 26,824,807 26,803,733 26,722,644 Earnings per common share - basic $ 0.03 $ 0.02 $ 0.02 $ 0.09 Earnings per common share - diluted $ 0.03 $ 0.02 $ 0.02 $ 0.08 An unvested restricted stock award of 8,474 shares and stock options for 537,500 shares of common stock for the three and nine months ended September 30, 2018 and stock options for 90,625 shares of common stock for the three and nine months ended September 30, 2017 were not considered in computing diluted earnings per common share because they were anti-dilutive.

Securities

Securities	9 Months Ended
	Sep. 30, 2018
Securities
Securities	NOTE (3) – Securities The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the periods indicated and the corresponding amounts of unrealized gains and losses which are recognized in accumulated other comprehensive income (loss): Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) September 30, 2018: Federal agency mortgage-backed securities $ 10,158 $ 94 $ (260) $ 9,992 Federal agency debt 5,427 — (176) 5,251 Total available-for-sale securities $ 15,585 $ 94 $ (436) $ 15,243 December 31, 2017: Federal agency mortgage-backed securities $ 11,877 $ 168 $ (37) $ 12,008 Federal agency debt 5,495 2 (11) 5,486 Total available-for-sale securities $ 17,372 $ 170 $ (48) $ 17,494 At September 30, 2018, the Bank had three federal agency securities with amortized cost of $5.4 million and estimated fair value of $5.3 million and an estimated remaining life of 3.9 years. The Bank also had 24 federal agency mortgage-backed securities with an amortized cost of $10.2 million, an estimated fair value of $10.0 million and an estimated average remaining life of 4.7 years. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities with unrealized losses at September 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or more Total Gross Gross Estimated Gross Estimated Unrealized Estimated Unrealized Fair Unrealized Fair Value Losses Fair Value Losses Value Losses (In thousands) September 30, 2018: Federal agency mortgage-backed securities $ 6,078 $ (185) $ 1,621 $ (76) $ 7,699 $ (261) Federal agency debt 5,252 (175) — — 5,252 (175) Total temporarily impaired $ 11,330 $ (360) $ 1,621 $ (76) $ 12,951 $ (436) December 31, 2017: Federal agency mortgage-backed securities $ 4,130 $ (20) $ 812 $ (17) $ 4,942 $ (37) Federal agency debt 3,510 (11) — — 3,510 (11) Total temporarily impaired $ 7,640 $ (31) $ 812 $ (17) $ 8,452 $ (48) Securities in unrealized loss positions are analyzed as part of our ongoing assessment of other-than-temporary impairment. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value has been less than the cost, and our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. All of the Bank’s securities were issued by the federal government or its agencies. The unrealized losses on our available-for-sale securities at September 30, 2018 were primarily caused by movements in market interest rates subsequent to the purchase of such securities. We do not consider these unrealized losses to be other than temporary impairment. There were no securities pledged to secure public deposits at September 30, 2018. Securities pledged to secure public deposits had a carrying amount of $526 thousand at December 31, 2017. At September 30, 2018 and December 31, 2017, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. There were no sales of securities during the three and nine months ended September 30, 2018 and 2017.

Loans Receivable Held for Sale

Loans Receivable Held for Sale	9 Months Ended
	Sep. 30, 2018
Loans Receivable Held for Sale
Loans Receivable Held for Sale
Loans Receivable Held for Sale	NOTE (4) – Loans Receivable Held for Sale Loans receivable held for sale at September 30, 2018 and December 31, 2017 totaled $19.1 million and $22.4 million, respectively, and consisted of multi-family loans. The Bank transferred $16.9 million of multi-family loans from the held-for-sale portfolio to the held-for-investment portfolio during the first quarter of 2018. Loan originated for sale were $20.3 million during the three months and nine months ended September 30, 2018. Sales of multi-family loans during the three months and nine months ended September 30, 2018 totaled $2.3 million and $6.6 million, respectively. Loan repayments totaled $24 thousand and $106 thousand during the three and nine months ended September 30, 2018, respectively.

Loans Receivable Held for Inves

Loans Receivable Held for Investment	9 Months Ended
	Sep. 30, 2018
Loans Receivable Held for Investment
Loans Receivable Held for Investment
Loans Receivable Held for Investment	NOTE (5) – Loans Receivable Held for Investment Loans receivable held for investment were as follows as of the periods indicated: September 30, 2018 December 31, 2017 (In thousands) Real estate: Single family $ 96,863 $ 111,085 Multi-family 222,982 187,455 Commercial real estate 5,972 6,089 Church 29,138 30,848 Construction 2,050 1,678 Commercial – other 200 192 Consumer 9 7 Gross loans receivable before deferred loan costs and premiums 357,214 337,354 Unamortized net deferred loan costs and premiums 1,241 1,566 Gross loans receivable 358,455 338,920 Allowance for loan losses (3,183) (4,069) Loans receivable, net $ 355,272 $ 334,851 The following tables present the activity in the allowance for loan losses by loan type for the periods indicated: Three Months Ended September 30, 2018 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 517 $ 2,656 $ 61 $ 925 $ 18 $ 6 $ — $ 4,183 Provision for (recapture of) loan losses (120) (791) (6) (87) 3 (1) 2 (1,000) Recoveries — — — — — — — — Loans charged off — — — — — — — — Ending balance $ 397 $ 1,865 $ 55 $ 838 $ 21 $ 5 $ 2 $ 3,183 Three Months Ended September 30, 2017 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 320 $ 2,719 $ 77 $ 1,104 $ 9 $ 17 $ — $ 4,246 Provision for (recapture of) loan losses 219 (297) (4) (214) 5 (9) — (300) Recoveries — — — 267 — — — 267 Loans charged off — — — — — — — — Ending balance $ 539 $ 2,422 $ 73 $ 1,157 $ 14 $ 8 $ — $ 4,213 Nine Months Ended September 30, 2018 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 594 $ 2,300 $ 71 $ 1,081 $ 17 $ 6 $ — $ 4,069 Provision for (recapture of) loan losses (197) (435) (16) (357) 4 (1) 2 (1,000) Recoveries — — — 114 — — — 114 Loans charged off — — — — — — — — Ending balance $ 397 $ 1,865 $ 55 $ 838 $ 21 $ 5 $ 2 $ 3,183 Nine Months Ended September 30, 2017 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 367 $ 2,659 $ 215 $ 1,337 $ 8 $ 17 $ — $ 4,603 Provision for (recapture of) loan losses 142 (237) (142) (710) 6 (9) — (950) Recoveries 30 — — 530 — — — 560 Loans charged off — — — — — — — — Ending balance $ 539 $ 2,422 $ 73 $ 1,157 $ 14 $ 8 $ — $ 4,213 The following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on impairment method as of and for the periods indicated: September 30, 2018 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 55 $ — $ — $ 365 $ — $ 4 $ — $ 424 Collectively evaluated for impairment 342 1,865 55 473 21 1 2 2,759 Total ending allowance balance $ 397 $ 1,865 $ 55 $ 838 $ 21 $ 5 $ 2 $ 3,183 Loans: Loans individually evaluated for impairment $ 614 $ 326 $ — $ 7,421 $ — $ 64 $ — $ 8,425 Loans collectively evaluated for impairment 96,621 224,078 5,972 21,166 2,048 136 9 350,030 Total ending loans balance $ 97,235 $ 224,404 $ 5,972 $ 28,587 $ 2,048 $ 200 $ 9 $ 358,455 December 31, 2017 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 100 $ 1 $ — $ 479 $ — $ 5 $ — $ 585 Collectively evaluated for impairment 494 2,299 71 602 17 1 — 3,484 Total ending allowance balance $ 594 $ 2,300 $ 71 $ 1,081 $ 17 $ 6 $ — $ 4,069 Loans: Loans individually evaluated for impairment $ 627 $ 333 $ — $ 8,280 $ — $ 65 $ — $ 9,305 Loans collectively evaluated for impairment 110,897 188,585 6,096 22,232 1,671 127 7 329,615 Total ending loans balance $ 111,524 $ 188,918 $ 6,096 $ 30,512 $ 1,671 $ 192 $ 7 $ 338,920 The following table presents information related to loans individually evaluated for impairment by loan type as of the periods indicated: September 30, 2018 December 31, 2017 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (In thousands) With no related allowance recorded: Multi-family $ 326 $ 326 $ — $ — $ — $ — Church 4,697 2,872 — 5,140 3,291 — With an allowance recorded: Single family 614 614 55 627 627 100 Multi-family — — — 333 333 1 Church 4,549 4,549 365 5,028 4,989 479 Commercial - other 64 64 4 65 65 5 Total $ 10,250 $ 8,425 $ 424 $ 11,193 $ 9,305 $ 585 The recorded investment in loans excludes accrued interest receivable due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for net charge-offs. The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated. Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Cash Basis Cash Basis Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) Single family $ 616 $ 8 $ 634 $ 7 Multi-family 327 5 631 5 Commercial real estate — — — — Church 7,486 119 9,038 256 Commercial – other 64 1 65 2 Total $ 8,493 $ 133 $ 10,368 $ 270 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Cash Basis Cash Basis Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) Single family $ 620 $ 23 $ 638 $ 21 Multi-family 330 17 636 28 Commercial real estate — — 397 104 Church 7,746 404 9,674 592 Commercial – other 64 3 65 4 Total $ 8,760 $ 447 $ 11,410 $ 749 Cash-basis interest income recognized represents cash received for interest payments on accruing impaired loans and interest recoveries on non-accrual loans that were paid off. Interest payments collected on non-accrual loans are characterized as payments of principal rather than payments of the outstanding accrued interest on the loans until the remaining principal on the non-accrual loans is considered to be fully collectible or paid off. When a loan is returned to accrual status, the interest payments that were previously applied to principal are deferred and amortized over the remaining life of the loan. The following tables present the aging of the recorded investment in past due loans by loan type as of the periods indicated: September 30, 2018 Greater 30-59 60-89 than Days Days 90 Days Total Past Due Past Due Past Due Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ 39 $ — $ — $ 39 $ 97,196 $ 97,235 Multi-family — — — — 224,404 224,404 Commercial real estate — — — — 5,972 5,972 Church — — — — 28,587 28,587 Construction — — — — 2,048 2,048 Commercial - other — — — — 200 200 Consumer — — — — 9 9 Total $ 39 $ — $ — $ 39 $ 358,416 $ 358,455 December 31, 2017 Greater 30-59 60-89 than Days Days 90 Days Total Past Due Past Due Past Due Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ — $ 50 $ — $ 50 $ 111,474 $ 111,524 Multi-family — — — — 188,918 188,918 Commercial real estate — — — — 6,096 6,096 Church 341 — — 341 30,171 30,512 Construction — — — — 1,671 1,671 Commercial - other — — — — 192 192 Consumer — — — — 7 7 Total $ 341 $ 50 $ — $ 391 $ 338,529 $ 338,920 The following table presents the recorded investment in non-accrual loans by loan type as of the periods indicated: September 30, 2018 December 31, 2017 (In thousands) Loans receivable held for investment: Church 1,187 1,766 Total non-accrual loans $ 1,187 $ 1,766 The above non-accrual loans were not delinquent, but did not qualify for accrual status as of the periods indicated. There were no loans 90 days or more delinquent that were accruing interest as of September 30, 2018 or December 31, 2017. Troubled Debt Restructurings At September 30, 2018, loans classified as troubled debt restructurings (“TDRs”) totaled $8.1 million, of which $856 thousand were included in non-accrual loans and $7.2 million were on accrual status. At December 31, 2017, loans classified as TDRs totaled $8.9 million, of which $1.4 million were included in non-accrual loans and $7.5 million were on accrual status. The Company has allocated $420 thousand and $585 thousand of specific reserves for accruing TDRs as of September 30, 2018 and December 31, 2017, respectively. TDRs on accrual status are comprised of loans that were accruing at the time of restructuring or loans that have complied with the terms of their restructured agreements for a satisfactory period of time and for which the Bank anticipates full repayment of both principal and interest. TDRs that are on non-accrual status can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments, as modified. A well-documented credit analysis that supports a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms is also required. As of September 30, 2018 and December 31, 2017, the Company had no commitment to lend additional amounts to customers with outstanding loans that are classified as TDRs. No loans were modified during the three or nine months ended September 30, 2018 and 2017. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For single family residential, consumer and other smaller balance homogenous loans, a credit grade is established at inception, and generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. This analysis is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings: · Watch . Loans classified as watch exhibit weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing and are not more than 59 days past due. A watch rating is used when a material deficiency exists but correction is anticipated within an acceptable time frame. · Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. · Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. · Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. · Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59 days past due and are generally performing in accordance with the loan terms. Based on the most recent analysis performed, the risk categories of loans by loan type as of the periods indicated were as follows: September 30, 2018 Pass Watch Special Mention Substandard Doubtful Loss (In thousands) Single family $ 97,186 $ — $ 39 $ 10 $ — $ — Multi-family 223,455 — — 949 — — Commercial real estate 5,972 — — — — — Church 22,397 1,300 — 4,890 — — Construction 2,048 — — — — — Commercial - other 136 — — 64 — — Consumer 9 — — — — — Total $ 351,203 $ 1,300 $ 39 $ 5,913 $ — $ — December 31, 2017 Pass Watch Special Mention Substandard Doubtful Loss (In thousands) Single family $ 111,513 $ — $ — $ 11 $ — $ — Multi-family 187,946 — — 972 — — Commercial real estate 5,974 122 — — — — Church 24,474 691 — 5,347 — — Construction 1,671 — — — — — Commercial - other 127 — — 65 — — Consumer 7 — — — — — Total $ 331,712 $ 813 $ — $ 6,395 $ — $ —

Junior Subordinated Debentures

Junior Subordinated Debentures	9 Months Ended
	Sep. 30, 2018
Junior Subordinated Debentures
Junior Subordinated Debentures	NOTE (6) – Junior Subordinated Debentures On March 17, 2004, the Company issued $6.0 million of Floating Rate Junior Subordinated Debentures (the “Debentures”) in a private placement to a trust that was capitalized to purchase subordinated debt and preferred stock of multiple community banks. Interest on the Debentures is payable quarterly at a rate per annum equal to the 3-Month LIBOR plus 2.54%. The interest rate is determined as of each March 17, June 17, September 17, and December 17, and was 4.88% at September 30, 2018. On October 16, 2014, the Company made payments of $900 thousand of principal on Debentures, executed a Supplemental Indenture for the Debentures that extended the maturity of the Debentures to March 17, 2024, and modified the payment terms of the remaining $5.1 million principal amount thereof. The modified terms of the Debentures require quarterly payments of interest only through March 2019 at the original rate of 3-Month LIBOR plus 2.54%. Starting in June 2019, the Company will be required to make quarterly payments of equal amounts of principal, plus interest, until the Debentures are fully amortized on March 17, 2024. The Debentures may be called for redemption at any time by the Company.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2018
Fair Value
Fair Value	NOTE (7) – Fair Value Fair value is the exchange price that would be received for 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 on the measurement date. There are three levels of inputs that may be used to measure fair values: 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 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 a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of impaired loans that are collateral dependent is generally based upon the fair value of the collateral, which is obtained from recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Assets acquired through or by transfer in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated every nine months. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Assets Measured on a Recurring Basis Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurement Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) At September 30, 2018: Securities available-for-sale –  federal agency mortgage-backed $ — $ 9,992 $ — $ 9,992 Securities available-for-sale – federal agency debt 1,972 3,279 — 5,251 At December 31, 2017: Securities available-for-sale – federal agency mortgage-backed $ — $ 12,008 $ — $ 12,008 Securities available-for-sale – federal agency debt 1,976 3,510 — 5,486 There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended September 30, 2018 and 2017. Assets Measured on a Non-Recurring Basis Assets are considered to be reflected at fair value on a non-recurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the statement of financial condition. Generally, a non-recurring valuation is the result of the application of other accounting pronouncements that require assets to be assessed for impairment or recorded at the lower of cost or fair value. The following table provides information regarding the carrying values of our assets measured at fair value on a non-recurring basis as of the periods indicated. The fair value measurement for all of these assets falls within Level 3 of the fair value hierarchy. September 30, 2018 December 31, 2017 (In thousands) Impaired loans carried at fair value of collateral $ 631 $ 742 Real estate owned 833 878 The following table provides information regarding losses recognized on assets measured at fair value on a non-recurring basis for the three and nine months ended September 30, 2018 and 2017. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands) Impaired loans carried at fair value of collateral $ — $ — $ — $ — Real estate owned – church 45 — 45 — Total $ 45 $ — $ 45 $ — The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2018 and December 31, 2017: Valuation Weighted Technique(s) Unobservable Input(s) Range Average September 30, 2018: Impaired loans Third Party Adjustment for differences Appraisals between the comparable sales -3% to -1% -2.67% Real estate owned – church Third Party Adjustment for differences Appraisals between the comparable sales -11% -10.85% December 31, 2017: Impaired loans Third Party Adjustment for differences Appraisals between the comparable sales -16% to 7% -4% Real estate owned – church Third Party Adjustment for differences Appraisals between the comparable sales -6% -6% Fair Values of Financial Instruments The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of September 30, 2018 and December 31, 2017. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and due from banks, interest-bearing deposits in other banks, and accrued interest receivable/payable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Loans receivable held for sale $ 19,087 $ — $ 19,217 $ — $ 19,217 Loans receivable held for investment 358,455 — — 352,475 352,475 Financial Liabilities: Time Deposits $ 168,556 $ — $ 167,453 $ — $ 167,453 Federal Home Loan Bank advances 82,000 — 81,370 — 81,370 Junior subordinated debentures 5,100 — — 4,503 4,503 Fair Value Measurements at December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Loans receivable held for sale $ 22,370 $ — $ 22,626 $ — $ 22,626 Loans receivable held for investment 334,851 — — 333,231 333,231 Financial Liabilities: Time Deposits $ 150,789 $ — $ 150,240 $ — $ 150,240 Federal Home Loan Bank advances 65,000 — 64,887 — 64,887 Junior subordinated debentures 5,100 — — 4,503 4,503 In accordance with the prospective adoption of ASU No. 2016-01, the fair value of certain financial assets and liabilities, including loans, time deposits, and junior subordinated debentures, as of September 30, 2018 was measured using an exit price notion. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2018
Stock-based Compensation
Stock-based Compensation	NOTE (8) – Stock-based Compensation The Company issues stock-based compensation awards to its directors and employees under the 2008 Long-Term Incentive Plan (“2008 LTIP”). The 2008 LTIP permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards for up to 2,000,000 shares of common stock. As of September 30, 2018, there were 1,293,109 shares available for future awards under the 2008 LTIP. No stock options were granted during the three and nine months ended September 30, 2018 and 2017. The following table summarizes stock option activity during the nine months ended September 30, 2018 and 2017: Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Weighted Weighted Average Average Number Exercise Number Exercise Outstanding Price Outstanding Price Outstanding at beginning of period 537,500 $ 2.19 540,625 $ 2.18 Granted during period — — — — Exercised during period — — — — Forfeited or expired during period — — — — Outstanding at end of period 537,500 $ 2.19 540,625 $ 2.18 Exercisable at end of period 267,500 $ 2.71 180,625 $ 3.29 The Company recorded $10 thousand of stock-based compensation expense related to stock options during the three months ended September 30, in each of 2018 and 2017, and $29 thousand during the nine months ended September 30, 2018 and 2017. As of September 30, 2018, unrecognized compensation cost related to non-vested stock options granted under the plan was $94 thousand. The cost is expected to be recognized over a period of 2.40 years. Options outstanding and exercisable at September 30, 2018 were as follows: Outstanding Exercisable Weighted Average Weighted Weighted Remaining Average Aggregate Average Aggregate Number Contractual Exercise Intrinsic Number Exercise Intrinsic Grant Date Outstanding Life Price Value Outstanding Price Value January 21, 2009 7,500 0.30 years $ 4.00 7,500 $ 4.00 March 18, 2009 75,000 0.46 years $ 4.98 75,000 $ 4.98 January 21, 2010 5,000 1.30 years $ 6.00 5,000 $ 6.00 February 24, 2016 450,000 7.40 years $ 1.62 180,000 $ 1.62 537,500 6.28 years $ 2.19 $ — 267,500 $ 2.71 $ — In March 2016, the Company awarded 120,483 shares of restricted stock to its Chief Executive Officer ("CEO") under the 2008 LTIP. A restricted stock award is valued at the closing price of the Company’s stock on the date of such award. Subject to certain performance restrictions, 100,000 shares of restricted stock shall vest over a two-year period and the remaining 20,483 shares shall vest over a three-year period. Stock-based compensation expense is recognized over the vesting period. The Company recorded $3 thousand and $26 thousand of stock-based compensation expense related to this award during the three months ended September 30, 2018 and 2017, respectively, and $33 thousand and $79 thousand during the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, unrecognized compensation cost related to non-vested restricted stock award was $6 thousand, which is expected to be recognized over a period of 6 months. In March 2018, the Company awarded 18,906 shares of common stock to its directors under the 2008 LTIP, all of which are fully vested. The Company recorded $45 thousand of compensation expense based on the fair value of the stock, which was determined using the average of the high and the low price of the stock on the date of the award. In April 2017, the Company’s directors were awarded 30,002 shares of common stock, which were fully vested, and the Company recorded $53 thousand of compensation expense related to such award. In February 2018, the Company awarded 97,195 of cash-settled restricted stock units ("RSUs") to its CEO under the 2008 LTIP. The Company also awarded 129,270 of cash-settled RSU to its CEO in April 2017. All RSUs vest at the end of two years from the date of the grant and are subject to forfeiture until vested. Each RSU entitles the CEO to receive cash equal to the fair market value of one share of common stock on the applicable payout date. Compensation expense is determined based on the fair value of the award and is re-measured at each reporting period. During the third quarter of 2018, the Company reversed $37 thousand of stock-based compensation expense due to decreasing stock price. For the same period in 2017, the Company recorded $40 thousand of stock-based compensation expense related to these awards. For the nine months ended September 30, 2018 and 2017, the Company recorded $27 thousand and $62 thousand expense related to these awards, respectively.

ESOP Plan

ESOP Plan	9 Months Ended
	Sep. 30, 2018
ESOP Plan
ESOP Plan	NOTE (9) – ESOP Plan Employees participate in an Employee Stock Option Plan (“ESOP”) after attaining certain age and service requirements. In December 2016, the ESOP purchased 1,493,679 shares of the Company’s common stock at $1.59 per share, for a total cost of $2.4 million, of which $1.2 million was funded with a loan from the Company. The loan will be repaid from the Bank’s annual discretionary contributions to the ESOP, net of dividends paid, over a period of 20 years. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. When loan payments are made, shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. Any dividends on allocated shares increase participant accounts. Any dividends on unallocated shares will be used to repay the loan. Participants will receive shares for their vested balance at the end of their employment. Compensation expense related to the ESOP was $19 thousand and $31 thousand for the three months ended September 30, 2018 and 2017, respectively, and $67 thousand and $79 thousand for the nine months ended September 30, 2018 and 2017, respectively. Shares held by the ESOP were as follows: September 30, 2018 December 31, 2017 (Dollars in thousands) Allocated to participants 1,108,382 1,108,382 Committed to be released 43,009 10,752 Suspense shares 656,613 688,870 Total ESOP shares 1,808,004 1,808,004 Fair value of unearned shares $ 926 $ 1,626 The Company received ESOP loan payments of $84 thousand and $79 thousand during September of 2018 and 2017, respectively. Shares released for allocation to participants were 43,009 in 2018 and 40,126 in 2017. The outstanding balance of unearned shares was $1.0 million and $1.1 million at September 30, 2018 and December 31, 2017, respectively, which is shown as Unearned ESOP shares in the equity section of the consolidated statements of financial condition.

Regulatory Matters

Regulatory Matters	9 Months Ended
	Sep. 30, 2018
Regulatory Matters
Regulatory Matters	NOTE (10) – Regulatory Matters The Bank’s capital requirements are administered by the Office of the Comptroller of the Currency (“OCC”) and involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the OCC. Failure to meet capital requirements can result in regulatory action. The federal banking regulators approved final capital rules (“Basel III Capital Rules”) in July 2013 implementing the Basel III framework as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules prescribe a standardized approach for calculating risk-weighted assets and revised the definition and calculation of Tier 1 capital and Total capital, and include a new Common Equity Tier 1 capital (“CET1”) measure. Under the Basel III Capital Rules, the currently effective minimum capital ratios are: · 4.5% CET1 to risk-weighted assets; · 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; · 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and · 4.0% Tier 1 capital to average consolidated assets (known as the “leverage ratio”). A capital conservation buffer is also required to be maintained above the regulatory minimum capital requirements. This capital conservation buffer is being phased in on a schedule that began on January 1, 2016 at 0.625% of risk-weighted assets and will increase each subsequent year by an additional 0.625% until it reaches its final level of 2.5% on January 1, 2019. The Basel III Capital rules also contain revisions to the prompt corrective action framework, which is designed to place restrictions on insured depository institutions if their capital levels begin to show signs of weakness. Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions are now required to meet the following increased capital level requirements in order to qualify as “well capitalized”: (i) a CET1 capital ratio of 6.5%; (ii) a Tier 1 capital ratio of 8% (increased from 6%); (iii) a total capital ratio of 10% (unchanged from previous rules); and (iv) a Tier 1 leverage ratio of 5% (unchanged from previous rules). The Basel III Capital Rules became effective for the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). At September 30, 2018 and December 31, 2017, the Bank’s level of capital exceeded all regulatory capital requirements and its regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. Actual and required capital amounts and ratios as of the periods indicated are presented below. Minimum Required To Be Well Capitalized Under Prompt Minimum Capital Corrective Action Actual Requirements Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) September 30, 2018: Tier 1 (Leverage) $ 48,891 $ 16,538 $ 20,672 Common Equity Tier 1 $ 48,891 $ 18,605 $ 17,518 Tier 1 $ 48,891 $ 24,807 $ 21,561 Total Capital $ 52,123 $ 33,076 $ 26,951 December 31, 2017: Tier 1 (Leverage) $ 47,838 $ 16,798 $ 20,997 Common Equity Tier 1 $ 47,838 $ 11,557 $ 16,693 Tier 1 $ 47,838 $ 15,409 $ 20,545 Total Capital $ 51,059 $ 20,545 $ 25,681 Effective as of May 15, 2015, the Federal Reserve Board (“FRB”) adopted a final rule that exempts bank holding companies and savings and loan holding companies with less than $1 billion in consolidated assets, such as the Company, from FRB’s consolidated regulatory capital requirements.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	NOTE (11) – Income Taxes The Company and its subsidiary are subject to U.S. federal and state income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluated both positive and negative evidence, including the existence of cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income and tax planning strategies. Based on this analysis, the Company determined that as of September 30, 2018, no valuation allowance was required on its deferred tax assets, which totaled $4.9 million. As of December 31, 2017, the Company recorded no valuation allowance on its deferred tax assets of $5.1 million.

Concentration of Credit Risk

Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2018
Concentration of Credit Risk
Concentration of Credit Risk	NOTE (12) – Concentration of Credit Risk The Bank has a significant concentration of deposits with a long-time customer that accounted for approximately 11% of its deposits as of September 30, 2018. The Bank expects to maintain this relationship with the customer.

Basis of Financial Statement _2

Basis of Financial Statement Presentation (Policies)	9 Months Ended
	Sep. 30, 2018
Basis of Financial Statement Presentation
Accounting Pronouncements	Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. On January 1, 2018, the Company adopted ASU No. 2014-09 and all subsequent ASUs that modified Topic 606. The adoption did not have a material impact on the measurement or recognition of revenue; as such, a modified retrospective cumulative effect adjustment to beginning retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to non-interest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. The Company’s revenue streams that are within the scope of Topic 606 are primarily services charges on deposit accounts, which consist of monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-01 (i) amends existing guidance that requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. It requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In accordance with this standard, the Company measured the fair value of its financial assets and financial liabilities as of September 30, 2018 using an exit price notion (see Note 7 Fair Value). In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. ASU 2016-15 provides guidance on the classification of certain cash receipts and payments on the consolidated statement of cash flows in order to reduce diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, where the guidance should be applied using a retrospective transition method to each period presented. Early adoption is permitted. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)”, which allows an entity to elect a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. The amount of that reclassification should include the effect of changes of tax rate on the deferred tax amount, any related valuation allowance and other income tax effects on the items in AOCI. The standard requires an entity to state if an election to reclassify the tax effect to retained earnings is made along with the description of other income tax effects that are reclassified from AOCI. The guidance is effective for public business entities for annual periods beginning on or after December 15, 2018 and interim periods within those annual periods with early adoption permitted. The Company early adopted this amendment and has elected to reclassify $66 thousand from AOCI to retained earnings at December 31, 2017. Recent Accounting Pronouncements Yet to Be Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which is intended to increase transparency and comparability in the accounting for lease transactions. Under ASU 2016-02, lessees will be required to recognize all leases longer than twelve months on the Consolidated Statements of Financial Condition as lease assets and lease liabilities and make quantitative and qualitative disclosures regarding key information about leasing arrangements. Under the new guidance, lessor accounting is largely unchanged. These amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. Based on leases outstanding at September 30, 2018, the Company does not expect the standard to have a material impact on the Company’s Consolidated Statements of Income or Cash Flows, but does anticipate recording a liability of approximately $1.0 million as of March 31, 2019 for the remaining obligation under its lease agreements and a corresponding right-of-use asset in the Consolidated Statements of Financial Condition, which will have a minor impact on the Bank’s regulatory capital ratios. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For public business entities that meet the definition of an SEC filer, the standard will be effective for fiscal years beginning after Dec. 15, 2019, including interim periods in those fiscal years. All entities may early adopt for fiscal years beginning after Dec. 15, 2018, including interim periods in those fiscal years. For debt securities with other-than-temporary impairment, the guidance will be applied prospectively. Existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has begun its implementation efforts by identifying key interpretive issues, assessing its processes and identifying the system requirements against the new guidance to determine what modifications may be required. While the Company is still evaluating the overall impact on the new standard on its consolidated financial statements, the Company expects the adoption will result in an increase to the allowance for loan losses balance. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The ASU was issued to improve the effectiveness of disclosures surrounding fair value measurements. The ASU removes numerous disclosures from Topic 820 including; transfers between level 1 and 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation process for level 3 fair value measurements. The ASU also modified and added disclosure requirements in regards to changes in unrealized gains and losses included in other comprehensive income, as well as the range and weighted average of unobservable inputs for level 3 fair value measurements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The guidance is not expected to have a significant impact on the Company’s consolidated financial statements.

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share of Common Stock
Schedule of basic and diluted earnings per share of common stock	For the three months For the nine months ended September 30, ended September 30, 2018 2017 2018 2017 (Dollars in thousands, except per share) Net income $ 751 $ 503 $ 540 $ 2,268 Less net income attributable to participating securities (3) (1) (2) (5) Income available to common stockholders $ 748 $ 502 $ 538 $ 2,263 Weighted average common shares outstanding for basic earnings per common share 26,752,542 26,702,564 26,752,347 26,662,344 Add: dilutive effects of assumed exercises of stock options — 79,898 42,912 3,748 Add: dilutive effects of unvested restricted stock awards 4,267 42,345 8,474 56,552 Weighted average common shares outstanding for diluted earnings per common share 26,756,809 26,824,807 26,803,733 26,722,644 Earnings per common share - basic $ 0.03 $ 0.02 $ 0.02 $ 0.09 Earnings per common share - diluted $ 0.03 $ 0.02 $ 0.02 $ 0.08

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2018
Securities
Summary of amortized cost and fair value of available-for-sale investment securities portfolios and corresponding amounts of unrealized gains and losses	Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) September 30, 2018: Federal agency mortgage-backed securities $ 10,158 $ 94 $ (260) $ 9,992 Federal agency debt 5,427 — (176) 5,251 Total available-for-sale securities $ 15,585 $ 94 $ (436) $ 15,243 December 31, 2017: Federal agency mortgage-backed securities $ 11,877 $ 168 $ (37) $ 12,008 Federal agency debt 5,495 2 (11) 5,486 Total available-for-sale securities $ 17,372 $ 170 $ (48) $ 17,494
Summary of securities in unrealized loss positions	Less than 12 months 12 months or more Total Gross Gross Estimated Gross Estimated Unrealized Estimated Unrealized Fair Unrealized Fair Value Losses Fair Value Losses Value Losses (In thousands) September 30, 2018: Federal agency mortgage-backed securities $ 6,078 $ (185) $ 1,621 $ (76) $ 7,699 $ (261) Federal agency debt 5,252 (175) — — 5,252 (175) Total temporarily impaired $ 11,330 $ (360) $ 1,621 $ (76) $ 12,951 $ (436) December 31, 2017: Federal agency mortgage-backed securities $ 4,130 $ (20) $ 812 $ (17) $ 4,942 $ (37) Federal agency debt 3,510 (11) — — 3,510 (11) Total temporarily impaired $ 7,640 $ (31) $ 812 $ (17) $ 8,452 $ (48)

Loans Receivable Held for Inv_2

Loans Receivable Held for Investment (Tables)	9 Months Ended
	Sep. 30, 2018
Loans Receivable Held for Investment
Schedule of loans receivable held for investment	September 30, 2018 December 31, 2017 (In thousands) Real estate: Single family $ 96,863 $ 111,085 Multi-family 222,982 187,455 Commercial real estate 5,972 6,089 Church 29,138 30,848 Construction 2,050 1,678 Commercial – other 200 192 Consumer 9 7 Gross loans receivable before deferred loan costs and premiums 357,214 337,354 Unamortized net deferred loan costs and premiums 1,241 1,566 Gross loans receivable 358,455 338,920 Allowance for loan losses (3,183) (4,069) Loans receivable, net $ 355,272 $ 334,851
Activity in the allowance for loan losses by loan type	Three Months Ended September 30, 2018 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 517 $ 2,656 $ 61 $ 925 $ 18 $ 6 $ — $ 4,183 Provision for (recapture of) loan losses (120) (791) (6) (87) 3 (1) 2 (1,000) Recoveries — — — — — — — — Loans charged off — — — — — — — — Ending balance $ 397 $ 1,865 $ 55 $ 838 $ 21 $ 5 $ 2 $ 3,183 Three Months Ended September 30, 2017 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 320 $ 2,719 $ 77 $ 1,104 $ 9 $ 17 $ — $ 4,246 Provision for (recapture of) loan losses 219 (297) (4) (214) 5 (9) — (300) Recoveries — — — 267 — — — 267 Loans charged off — — — — — — — — Ending balance $ 539 $ 2,422 $ 73 $ 1,157 $ 14 $ 8 $ — $ 4,213 Nine Months Ended September 30, 2018 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 594 $ 2,300 $ 71 $ 1,081 $ 17 $ 6 $ — $ 4,069 Provision for (recapture of) loan losses (197) (435) (16) (357) 4 (1) 2 (1,000) Recoveries — — — 114 — — — 114 Loans charged off — — — — — — — — Ending balance $ 397 $ 1,865 $ 55 $ 838 $ 21 $ 5 $ 2 $ 3,183 Nine Months Ended September 30, 2017 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Beginning balance $ 367 $ 2,659 $ 215 $ 1,337 $ 8 $ 17 $ — $ 4,603 Provision for (recapture of) loan losses 142 (237) (142) (710) 6 (9) — (950) Recoveries 30 — — 530 — — — 560 Loans charged off — — — — — — — — Ending balance $ 539 $ 2,422 $ 73 $ 1,157 $ 14 $ 8 $ — $ 4,213
Allowance for loan losses and recorded investment in loans by type of loans and based on impairment method	September 30, 2018 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 55 $ — $ — $ 365 $ — $ 4 $ — $ 424 Collectively evaluated for impairment 342 1,865 55 473 21 1 2 2,759 Total ending allowance balance $ 397 $ 1,865 $ 55 $ 838 $ 21 $ 5 $ 2 $ 3,183 Loans: Loans individually evaluated for impairment $ 614 $ 326 $ — $ 7,421 $ — $ 64 $ — $ 8,425 Loans collectively evaluated for impairment 96,621 224,078 5,972 21,166 2,048 136 9 350,030 Total ending loans balance $ 97,235 $ 224,404 $ 5,972 $ 28,587 $ 2,048 $ 200 $ 9 $ 358,455 December 31, 2017 Real Estate Single Multi- Commercial Commercial family family real estate Church Construction - other Consumer Total (In thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 100 $ 1 $ — $ 479 $ — $ 5 $ — $ 585 Collectively evaluated for impairment 494 2,299 71 602 17 1 — 3,484 Total ending allowance balance $ 594 $ 2,300 $ 71 $ 1,081 $ 17 $ 6 $ — $ 4,069 Loans: Loans individually evaluated for impairment $ 627 $ 333 $ — $ 8,280 $ — $ 65 $ — $ 9,305 Loans collectively evaluated for impairment 110,897 188,585 6,096 22,232 1,671 127 7 329,615 Total ending loans balance $ 111,524 $ 188,918 $ 6,096 $ 30,512 $ 1,671 $ 192 $ 7 $ 338,920
Loans individually evaluated for impairment by loan type	September 30, 2018 December 31, 2017 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (In thousands) With no related allowance recorded: Multi-family $ 326 $ 326 $ — $ — $ — $ — Church 4,697 2,872 — 5,140 3,291 — With an allowance recorded: Single family 614 614 55 627 627 100 Multi-family — — — 333 333 1 Church 4,549 4,549 365 5,028 4,989 479 Commercial - other 64 64 4 65 65 5 Total $ 10,250 $ 8,425 $ 424 $ 11,193 $ 9,305 $ 585
Average of loans individually evaluated for impairment by loan type and related interest income	Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Cash Basis Cash Basis Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) Single family $ 616 $ 8 $ 634 $ 7 Multi-family 327 5 631 5 Commercial real estate — — — — Church 7,486 119 9,038 256 Commercial – other 64 1 65 2 Total $ 8,493 $ 133 $ 10,368 $ 270 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Cash Basis Cash Basis Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (In thousands) Single family $ 620 $ 23 $ 638 $ 21 Multi-family 330 17 636 28 Commercial real estate — — 397 104 Church 7,746 404 9,674 592 Commercial – other 64 3 65 4 Total $ 8,760 $ 447 $ 11,410 $ 749
Aging of the recorded investment in past due loans by loan type	September 30, 2018 Greater 30-59 60-89 than Days Days 90 Days Total Past Due Past Due Past Due Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ 39 $ — $ — $ 39 $ 97,196 $ 97,235 Multi-family — — — — 224,404 224,404 Commercial real estate — — — — 5,972 5,972 Church — — — — 28,587 28,587 Construction — — — — 2,048 2,048 Commercial - other — — — — 200 200 Consumer — — — — 9 9 Total $ 39 $ — $ — $ 39 $ 358,416 $ 358,455 December 31, 2017 Greater 30-59 60-89 than Days Days 90 Days Total Past Due Past Due Past Due Past Due Current Total (In thousands) Loans receivable held for investment: Single family $ — $ 50 $ — $ 50 $ 111,474 $ 111,524 Multi-family — — — — 188,918 188,918 Commercial real estate — — — — 6,096 6,096 Church 341 — — 341 30,171 30,512 Construction — — — — 1,671 1,671 Commercial - other — — — — 192 192 Consumer — — — — 7 7 Total $ 341 $ 50 $ — $ 391 $ 338,529 $ 338,920
Schedule of recorded investment in non-accrual loans by loan type	September 30, 2018 December 31, 2017 (In thousands) Loans receivable held for investment: Church 1,187 1,766 Total non-accrual loans $ 1,187 $ 1,766
Risk categories of loans by loan type	September 30, 2018 Pass Watch Special Mention Substandard Doubtful Loss (In thousands) Single family $ 97,186 $ — $ 39 $ 10 $ — $ — Multi-family 223,455 — — 949 — — Commercial real estate 5,972 — — — — — Church 22,397 1,300 — 4,890 — — Construction 2,048 — — — — — Commercial - other 136 — — 64 — — Consumer 9 — — — — — Total $ 351,203 $ 1,300 $ 39 $ 5,913 $ — $ — December 31, 2017 Pass Watch Special Mention Substandard Doubtful Loss (In thousands) Single family $ 111,513 $ — $ — $ 11 $ — $ — Multi-family 187,946 — — 972 — — Commercial real estate 5,974 122 — — — — Church 24,474 691 — 5,347 — — Construction 1,671 — — — — — Commercial - other 127 — — 65 — — Consumer 7 — — — — — Total $ 331,712 $ 813 $ — $ 6,395 $ — $ —

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value
Summary of assets measured at fair value on a recurring basis	Fair Value Measurement Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (In thousands) At September 30, 2018: Securities available-for-sale –  federal agency mortgage-backed $ — $ 9,992 $ — $ 9,992 Securities available-for-sale – federal agency debt 1,972 3,279 — 5,251 At December 31, 2017: Securities available-for-sale – federal agency mortgage-backed $ — $ 12,008 $ — $ 12,008 Securities available-for-sale – federal agency debt 1,976 3,510 — 5,486
Schedule of carrying values of assets measured at fair value on non-recurring basis	September 30, 2018 December 31, 2017 (In thousands) Impaired loans carried at fair value of collateral $ 631 $ 742 Real estate owned 833 878
Schedule of losses recognized on assets measured at fair value on non-recurring basis	Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands) Impaired loans carried at fair value of collateral $ — $ — $ — $ — Real estate owned – church 45 — 45 — Total $ 45 $ — $ 45 $ —
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis	Valuation Weighted Technique(s) Unobservable Input(s) Range Average September 30, 2018: Impaired loans Third Party Adjustment for differences Appraisals between the comparable sales -3% to -1% -2.67% Real estate owned – church Third Party Adjustment for differences Appraisals between the comparable sales -11% -10.85% December 31, 2017: Impaired loans Third Party Adjustment for differences Appraisals between the comparable sales -16% to 7% -4% Real estate owned – church Third Party Adjustment for differences Appraisals between the comparable sales -6% -6%
Schedule of carrying amount, fair values and placement in the fair value hierarchy of financial instruments	Fair Value Measurements at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Loans receivable held for sale $ 19,087 $ — $ 19,217 $ — $ 19,217 Loans receivable held for investment 358,455 — — 352,475 352,475 Financial Liabilities: Time Deposits $ 168,556 $ — $ 167,453 $ — $ 167,453 Federal Home Loan Bank advances 82,000 — 81,370 — 81,370 Junior subordinated debentures 5,100 — — 4,503 4,503 Fair Value Measurements at December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) Financial Assets: Loans receivable held for sale $ 22,370 $ — $ 22,626 $ — $ 22,626 Loans receivable held for investment 334,851 — — 333,231 333,231 Financial Liabilities: Time Deposits $ 150,789 $ — $ 150,240 $ — $ 150,240 Federal Home Loan Bank advances 65,000 — 64,887 — 64,887 Junior subordinated debentures 5,100 — — 4,503 4,503

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Stock-based Compensation
Summary of stock option activity	Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Weighted Weighted Average Average Number Exercise Number Exercise Outstanding Price Outstanding Price Outstanding at beginning of period 537,500 $ 2.19 540,625 $ 2.18 Granted during period — — — — Exercised during period — — — — Forfeited or expired during period — — — — Outstanding at end of period 537,500 $ 2.19 540,625 $ 2.18 Exercisable at end of period 267,500 $ 2.71 180,625 $ 3.29
Summary of options outstanding and exercisable	Outstanding Exercisable Weighted Average Weighted Weighted Remaining Average Aggregate Average Aggregate Number Contractual Exercise Intrinsic Number Exercise Intrinsic Grant Date Outstanding Life Price Value Outstanding Price Value January 21, 2009 7,500 0.30 years $ 4.00 7,500 $ 4.00 March 18, 2009 75,000 0.46 years $ 4.98 75,000 $ 4.98 January 21, 2010 5,000 1.30 years $ 6.00 5,000 $ 6.00 February 24, 2016 450,000 7.40 years $ 1.62 180,000 $ 1.62 537,500 6.28 years $ 2.19 $ — 267,500 $ 2.71 $ —

ESOP Plan (Tables)

ESOP Plan (Tables)	9 Months Ended
	Sep. 30, 2018
ESOP Plan
Schedule of shares held by the ESOP	September 30, 2018 December 31, 2017 (Dollars in thousands) Allocated to participants 1,108,382 1,108,382 Committed to be released 43,009 10,752 Suspense shares 656,613 688,870 Total ESOP shares 1,808,004 1,808,004 Fair value of unearned shares $ 926 $ 1,626

Regulatory Matters (Tables)

Regulatory Matters (Tables)	9 Months Ended
	Sep. 30, 2018
Regulatory Matters
Schedule of actual and required capital amounts and ratios	Minimum Required To Be Well Capitalized Under Prompt Minimum Capital Corrective Action Actual Requirements Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) September 30, 2018: Tier 1 (Leverage) $ 48,891 $ 16,538 $ 20,672 Common Equity Tier 1 $ 48,891 $ 18,605 $ 17,518 Tier 1 $ 48,891 $ 24,807 $ 21,561 Total Capital $ 52,123 $ 33,076 $ 26,951 December 31, 2017: Tier 1 (Leverage) $ 47,838 $ 16,798 $ 20,997 Common Equity Tier 1 $ 47,838 $ 11,557 $ 16,693 Tier 1 $ 47,838 $ 15,409 $ 20,545 Total Capital $ 51,059 $ 20,545 $ 25,681

Basis of Financial Statement _3

Basis of Financial Statement Presentation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2019
ASU 2018-02
Basis of Financial Statement Presentation
Reclassification from accumulated other comprehensive loss to retained earnings	$ 66
Forecast | ASU 2016-02
Basis of Financial Statement Presentation
Finance obligation under lease agreements		$ 1,000

Earnings Per Share of Common _3

Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Basic and diluted earnings per share of common stock
Net loss	$ 751	$ (127)	$ (84)	$ 503	$ 540	$ 2,268
Less net income attributable to participating securities	(3)			(1)	(2)	(5)
Income available to common stockholders	$ 748			$ 502	$ 538	$ 2,263
Weighted average common shares outstanding for basic earnings per common share	26,752,542			26,702,564	26,752,347	26,662,344
Add: dilutive effects of assumed exercises of stock options				79,898	42,912	3,748
Add: dilutive effects of unvested restricted stock awards	4,267			42,345	8,474	56,552
Weighted average common shares outstanding for diluted earnings per common share	26,756,809			26,824,807	26,803,733	26,722,644
Earnings per common share - basic	$ 0.03			$ 0.02	$ 0.02	$ 0.09
Earnings per common share - diluted	$ 0.03			$ 0.02	$ 0.02	$ 0.08
Unvested restricted stock award
Earnings Per Share of Common Stock
Anti-dilutive stock not considered in computing diluted earnings per common share	8,474				8,474
Stock Options
Earnings Per Share of Common Stock
Anti-dilutive stock not considered in computing diluted earnings per common share	537,500			90,625	537,500	90,625

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)security	Dec. 31, 2017USD ($)
Securities
Amortized Cost	$ 15,585	$ 17,372
Gross Unrealized Gains	94	170
Gross Unrealized Losses	(436)	(48)
Fair Value	15,243	17,494
Federal agency mortgage-backed securities
Securities
Amortized Cost	10,158	11,877
Gross Unrealized Gains	94	168
Gross Unrealized Losses	(260)	(37)
Fair Value	$ 9,992	12,008
Number of securities held | security	24
Estimated remaining term	4 years 8 months 12 days
Federal agency debt
Securities
Amortized Cost	$ 5,427	5,495
Gross Unrealized Gains		2
Gross Unrealized Losses	(176)	(11)
Fair Value	$ 5,251	$ 5,486
Number of securities held | security	3
Estimated remaining term	3 years 10 months 24 days

Securities - Securities in Unre

Securities - Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Estimated Fair Value
Less than 12 months	$ 11,330	$ 7,640
12 months or more	1,621	812
Total	12,951	8,452
Gross Unrealized Losses
Less than 12 months	(360)	(31)
12 months or more	(76)	(17)
Total	(436)	(48)
Federal agency mortgage-backed securities
Estimated Fair Value
Less than 12 months	6,078	4,130
12 months or more	1,621	812
Total	7,699	4,942
Gross Unrealized Losses
Less than 12 months	(185)	(20)
12 months or more	(76)	(17)
Total	(261)	(37)
Federal agency debt
Estimated Fair Value
Less than 12 months	5,252	3,510
Total	5,252	3,510
Gross Unrealized Losses
Less than 12 months	(175)	(11)
Total	$ (175)	$ (11)

Securities - Additional Disclos

Securities - Additional Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Securities
Securities of any one issuer, other than U.S. Government, greater than 10% of stockholders' equity	$ 0	$ 0
Sales of securities	0	0
Pledged Collateral
Securities
Securities pledged to secure public deposits	$ 0	$ 526

Loans Receivable Held for Sale

Loans Receivable Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Loans Receivable Held for Sale
Loans receivable held for sale	$ 19,087		$ 19,087		$ 22,370
Transfers of loans receivable held for sale to loans receivable held for investment			16,871
Loans originated	20,300		20,288	$ 94,972
Loan sales	2,300
Loan repayments	24		106	$ 318
Multi-family
Loans Receivable Held for Sale
Loans receivable held for sale	$ 19,100		19,100		$ 22,400
Transfers of loans receivable held for sale to loans receivable held for investment		$ 16,900
Loan sales			$ 6,600

Loans Receivable Held for Inv_3

Loans Receivable Held for Investment - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	$ 357,214		$ 337,354
Unamortized net deferred loan costs and premiums	1,241		1,566
Gross loans receivable after deferred loan costs and premiums	358,455		338,920
Allowance for loan losses	(3,183)	$ (4,183)	(4,069)	$ (4,213)	$ (4,246)	$ (4,603)
Loans receivable, net	355,272		334,851
Single family
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	96,863		111,085
Gross loans receivable after deferred loan costs and premiums	97,235		111,524
Allowance for loan losses	(397)	(517)	(594)	(539)	(320)	(367)
Multi-family
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	222,982		187,455
Gross loans receivable after deferred loan costs and premiums	224,404		188,918
Allowance for loan losses	(1,865)	(2,656)	(2,300)	(2,422)	(2,719)	(2,659)
Commercial real estate
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	5,972		6,089
Gross loans receivable after deferred loan costs and premiums	5,972		6,096
Allowance for loan losses	(55)	(61)	(71)	(73)	(77)	(215)
Church
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	29,138		30,848
Gross loans receivable after deferred loan costs and premiums	28,587		30,512
Allowance for loan losses	(838)	(925)	(1,081)	(1,157)	(1,104)	(1,337)
Construction
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	2,050		1,678
Gross loans receivable after deferred loan costs and premiums	2,048		1,671
Allowance for loan losses	(21)	(18)	(17)	(14)	(9)	(8)
Commercial - other
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	200		192
Gross loans receivable after deferred loan costs and premiums	200		192
Allowance for loan losses	(5)	$ (6)	(6)	$ (8)	$ (17)	$ (17)
Consumer
Loans Receivable Held for Investment
Gross loans receivable before deferred loan costs and premiums	9		7
Gross loans receivable after deferred loan costs and premiums	9		$ 7
Allowance for loan losses	$ (2)

Loans Receivable Held for Inv_4

Loans Receivable Held for Investment - Activity in the Allowance for Loan Losses by Loan Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Allowance for loan losses:
Beginning balance	$ 4,183	$ 4,246	$ 4,069	$ 4,603
Provision for (recapture of) loan losses	(1,000)	(300)	(1,000)	(950)
Recoveries		267	114	560
Ending balance	3,183	4,213	3,183	4,213
Single family
Allowance for loan losses:
Beginning balance	517	320	594	367
Provision for (recapture of) loan losses	(120)	219	(197)	142
Recoveries				30
Ending balance	397	539	397	539
Multi-family
Allowance for loan losses:
Beginning balance	2,656	2,719	2,300	2,659
Provision for (recapture of) loan losses	(791)	(297)	(435)	(237)
Ending balance	1,865	2,422	1,865	2,422
Commercial real estate
Allowance for loan losses:
Beginning balance	61	77	71	215
Provision for (recapture of) loan losses	(6)	(4)	(16)	(142)
Ending balance	55	73	55	73
Church
Allowance for loan losses:
Beginning balance	925	1,104	1,081	1,337
Provision for (recapture of) loan losses	(87)	(214)	(357)	(710)
Recoveries		267	114	530
Ending balance	838	1,157	838	1,157
Construction
Allowance for loan losses:
Beginning balance	18	9	17	8
Provision for (recapture of) loan losses	3	5	4	6
Ending balance	21	14	21	14
Commercial - other
Allowance for loan losses:
Beginning balance	6	17	6	17
Provision for (recapture of) loan losses	(1)	(9)	(1)	(9)
Ending balance	5	$ 8	5	$ 8
Consumer
Allowance for loan losses:
Provision for (recapture of) loan losses	2		2
Ending balance	$ 2		$ 2

Loans Receivable Held for Inv_5

Loans Receivable Held for Investment - Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 424		$ 585
Collectively evaluated for impairment	2,759		3,484
Total ending allowance balance	3,183	$ 4,183	4,069	$ 4,213	$ 4,246	$ 4,603
Loans:
Loans individually evaluated for impairment	8,425		9,305
Loans collectively evaluated for impairment	350,030		329,615
Gross loans receivable after deferred loan costs and premiums	358,455		338,920
Single family
Ending allowance balance attributable to loans:
Individually evaluated for impairment	55		100
Collectively evaluated for impairment	342		494
Total ending allowance balance	397	517	594	539	320	367
Loans:
Loans individually evaluated for impairment	614		627
Loans collectively evaluated for impairment	96,621		110,897
Gross loans receivable after deferred loan costs and premiums	97,235		111,524
Multi-family
Ending allowance balance attributable to loans:
Individually evaluated for impairment			1
Collectively evaluated for impairment	1,865		2,299
Total ending allowance balance	1,865	2,656	2,300	2,422	2,719	2,659
Loans:
Loans individually evaluated for impairment	326		333
Loans collectively evaluated for impairment	224,078		188,585
Gross loans receivable after deferred loan costs and premiums	224,404		188,918
Commercial real estate
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	55		71
Total ending allowance balance	55	61	71	73	77	215
Loans:
Loans collectively evaluated for impairment	5,972		6,096
Gross loans receivable after deferred loan costs and premiums	5,972		6,096
Church
Ending allowance balance attributable to loans:
Individually evaluated for impairment	365		479
Collectively evaluated for impairment	473		602
Total ending allowance balance	838	925	1,081	1,157	1,104	1,337
Loans:
Loans individually evaluated for impairment	7,421		8,280
Loans collectively evaluated for impairment	21,166		22,232
Gross loans receivable after deferred loan costs and premiums	28,587		30,512
Construction
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	21		17
Total ending allowance balance	21	18	17	14	9	8
Loans:
Loans collectively evaluated for impairment	2,048		1,671
Gross loans receivable after deferred loan costs and premiums	2,048		1,671
Commercial - other
Ending allowance balance attributable to loans:
Individually evaluated for impairment	4		5
Collectively evaluated for impairment	1		1
Total ending allowance balance	5	$ 6	6	$ 8	$ 17	$ 17
Loans:
Loans individually evaluated for impairment	64		65
Loans collectively evaluated for impairment	136		127
Gross loans receivable after deferred loan costs and premiums	200		192
Consumer
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	2
Total ending allowance balance	2
Loans:
Loans collectively evaluated for impairment	9		7
Gross loans receivable after deferred loan costs and premiums	$ 9		$ 7

Loans Receivable Held for Inv_6

Loans Receivable Held for Investment - Loans Individually Evaluated for Impairment by Loan Type (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Impaired loans
Unpaid Principal Balance	$ 10,250	$ 11,193
Recorded Investment	8,425	9,305
Allowance for Loan Losses Allocated, With an allowance recorded	424	585
Single family
Impaired loans
Unpaid Principal Balance, With an allowance recorded	614	627
Recorded Investment, With an allowance recorded	614	627
Allowance for Loan Losses Allocated, With an allowance recorded	55	100
Multi-family
Impaired loans
Unpaid Principal Balance, With no related allowance recorded	326
Unpaid Principal Balance, With an allowance recorded		333
Recorded Investment, With no related allowance recorded	326
Recorded Investment, With an allowance recorded		333
Allowance for Loan Losses Allocated, With an allowance recorded		1
Church
Impaired loans
Unpaid Principal Balance, With no related allowance recorded	4,697	5,140
Unpaid Principal Balance, With an allowance recorded	4,549	5,028
Recorded Investment, With no related allowance recorded	2,872	3,291
Recorded Investment, With an allowance recorded	4,549	4,989
Allowance for Loan Losses Allocated, With an allowance recorded	365	479
Commercial - other
Impaired loans
Unpaid Principal Balance, With an allowance recorded	64	65
Recorded Investment, With an allowance recorded	64	65
Allowance for Loan Losses Allocated, With an allowance recorded	$ 4	$ 5

Loans Receivable Held for Inv_7

Loans Receivable Held for Investment - Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Impaired loans
Average Recorded Investment	$ 8,493	$ 10,368	$ 8,760	$ 11,410
Cash Basis Interest Income Recognized	133	270	447	749
Single family
Impaired loans
Average Recorded Investment	616	634	620	638
Cash Basis Interest Income Recognized	8	7	23	21
Multi-family
Impaired loans
Average Recorded Investment	327	631	330	636
Cash Basis Interest Income Recognized	5	5	17	28
Commercial real estate
Impaired loans
Average Recorded Investment				397
Cash Basis Interest Income Recognized				104
Church
Impaired loans
Average Recorded Investment	7,486	9,038	7,746	9,674
Cash Basis Interest Income Recognized	119	256	404	592
Commercial - other
Impaired loans
Average Recorded Investment	64	65	64	65
Cash Basis Interest Income Recognized	$ 1	$ 2	$ 3	$ 4

Loans Receivable Held for Inv_8

Loans Receivable Held for Investment - Aging of Recorded Investment in Past Due Loans by Loan Type (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Past due receivable
Total Past Due	$ 39	$ 391
Current	358,416	338,529
Gross loans receivable after deferred loan costs and premiums	358,455	338,920
30-59 Days Past Due
Past due receivable
Total Past Due	39	341
60-89 Days Past Due
Past due receivable
Total Past Due		50
Single family
Past due receivable
Total Past Due	39	50
Current	97,196	111,474
Gross loans receivable after deferred loan costs and premiums	97,235	111,524
Single family | 30-59 Days Past Due
Past due receivable
Total Past Due	39
Single family | 60-89 Days Past Due
Past due receivable
Total Past Due		50
Multi-family
Past due receivable
Current	224,404	188,918
Gross loans receivable after deferred loan costs and premiums	224,404	188,918
Commercial real estate
Past due receivable
Current	5,972	6,096
Gross loans receivable after deferred loan costs and premiums	5,972	6,096
Church
Past due receivable
Total Past Due		341
Current	28,587	30,171
Gross loans receivable after deferred loan costs and premiums	28,587	30,512
Church | 30-59 Days Past Due
Past due receivable
Total Past Due		341
Construction
Past due receivable
Current	2,048	1,671
Gross loans receivable after deferred loan costs and premiums	2,048	1,671
Commercial - other
Past due receivable
Current	200	192
Gross loans receivable after deferred loan costs and premiums	200	192
Consumer
Past due receivable
Current	9	7
Gross loans receivable after deferred loan costs and premiums	$ 9	$ 7

Loans Receivable Held for Inv_9

Loans Receivable Held for Investment - Recorded Investment in Non-accrual Loans by Loan Type (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investment in non-accrual loans by type of loans
Total non-accrual loans	$ 1,187	$ 1,766
Loans 90 days or more delinquent that were accruing interest	0	0
Church
Investment in non-accrual loans by type of loans
Total non-accrual loans	$ 1,187	$ 1,766

Loans Receivable Held for In_10

Loans Receivable Held for Investment - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)loan	Sep. 30, 2017loan	Sep. 30, 2018USD ($)loan	Sep. 30, 2017loan	Dec. 31, 2017USD ($)
Troubled debt restructuring
Loans classified as Troubled Debt Restructurings	$ 8,100		$ 8,100		$ 8,900
Specific reserves allocated to TDRs	420		$ 420		$ 585
Timely payment period for return to accrual status			6 months		6 months
Commitments to lend additional amounts to customers with TDRs	$ 0		$ 0		$ 0
Number of loans modified | loan	0	0	0	0
Non-accrual status
Troubled debt restructuring
Loans classified as Troubled Debt Restructurings	$ 856		$ 856		1,400
Accrual status
Troubled debt restructuring
Loans classified as Troubled Debt Restructurings	$ 7,200		$ 7,200		$ 7,500

Loans Receivable Held for In_11

Loans Receivable Held for Investment - Risk Category of Loans by Loan Type (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Credit Quality Indicators
Loans receivable	$ 358,455	$ 338,920
Single family
Credit Quality Indicators
Loans receivable	97,235	111,524
Multi-family
Credit Quality Indicators
Loans receivable	224,404	188,918
Commercial real estate
Credit Quality Indicators
Loans receivable	5,972	6,096
Church
Credit Quality Indicators
Loans receivable	28,587	30,512
Construction
Credit Quality Indicators
Loans receivable	2,048	1,671
Commercial - other
Credit Quality Indicators
Loans receivable	200	192
Consumer
Credit Quality Indicators
Loans receivable	9	7
Pass
Credit Quality Indicators
Loans receivable	351,203	331,712
Pass | Single family
Credit Quality Indicators
Loans receivable	97,186	111,513
Pass | Multi-family
Credit Quality Indicators
Loans receivable	223,455	187,946
Pass | Commercial real estate
Credit Quality Indicators
Loans receivable	5,972	5,974
Pass | Church
Credit Quality Indicators
Loans receivable	22,397	24,474
Pass | Construction
Credit Quality Indicators
Loans receivable	2,048	1,671
Pass | Commercial - other
Credit Quality Indicators
Loans receivable	136	127
Pass | Consumer
Credit Quality Indicators
Loans receivable	9	7
Watch
Credit Quality Indicators
Loans receivable	1,300	813
Watch | Commercial real estate
Credit Quality Indicators
Loans receivable		122
Watch | Church
Credit Quality Indicators
Loans receivable	1,300	691
Special Mention
Credit Quality Indicators
Loans receivable	39
Special Mention | Single family
Credit Quality Indicators
Loans receivable	39
Substandard
Credit Quality Indicators
Loans receivable	5,913	6,395
Substandard | Single family
Credit Quality Indicators
Loans receivable	10	11
Substandard | Multi-family
Credit Quality Indicators
Loans receivable	949	972
Substandard | Church
Credit Quality Indicators
Loans receivable	4,890	5,347
Substandard | Commercial - other
Credit Quality Indicators
Loans receivable	$ 64	$ 65

Junior Subordinated Debentures

Junior Subordinated Debentures (Details) - USD ($) $ in Thousands	Oct. 16, 2014	Sep. 30, 2018	Dec. 31, 2017	Mar. 17, 2004
Junior Subordinated Debentures
Junior subordinated debentures		$ 5,100	$ 5,100
Floating Rate Junior Subordinated Debentures
Junior Subordinated Debentures
Junior subordinated debentures	$ 5,100
Effective interest rate on debentures (as a percent)		4.88%
Payment of principal amount at face value required to extend maturity	$ 900
Floating Rate Junior Subordinated Debentures | 3-month LIBOR
Junior Subordinated Debentures
Debt instrument interest rate description		3-Month LIBOR
Basis spread (as a percent)		2.54%
Floating Rate Junior Subordinated Debentures | Private Placement
Junior Subordinated Debentures
Junior subordinated debentures				$ 6,000

Fair Value - Assets Measured at

Fair Value - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Fair Value
Transfer between level 1 and level 2	$ 0	$ 0	$ 0	$ 0
Transfer between level 2 and level 1	0	0	0	0
Transfer into level 3	0	0	0	0
Transfer out of level 3	0	$ 0	0	$ 0
Recurring Basis | Federal agency mortgage-backed securities | Available-for-sale Securities
Fair Value
Securities available-for-sale, at fair value	9,992,000		9,992,000		$ 12,008,000
Recurring Basis | Federal agency debt | Available-for-sale Securities
Fair Value
Securities available-for-sale, at fair value	5,251,000		5,251,000		5,486,000
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Federal agency debt | Available-for-sale Securities
Fair Value
Securities available-for-sale, at fair value	1,972,000		1,972,000		1,976,000
Recurring Basis | Significant Other Observable Inputs (Level 2) | Federal agency mortgage-backed securities | Available-for-sale Securities
Fair Value
Securities available-for-sale, at fair value	9,992,000		9,992,000		12,008,000
Recurring Basis | Significant Other Observable Inputs (Level 2) | Federal agency debt | Available-for-sale Securities
Fair Value
Securities available-for-sale, at fair value	$ 3,279,000		$ 3,279,000		$ 3,510,000

Fair Value - Assets Measured _2

Fair Value - Assets Measured at Fair Value on Non-recurring Basis (Details) - Non-Recurring Basis - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Fair Value
Total losses recognized on assets measured at fair value on a non-recurring basis	$ 45	$ 45
Impaired loans carried at fair value of collateral
Fair Value
Assets, fair value	631	631	$ 742
Real estate owned
Fair Value
Assets, fair value	833	833	$ 878
Total losses recognized on assets measured at fair value on a non-recurring basis	$ 45	$ 45

Fair Value - Valuation Methodol

Fair Value - Valuation Methodology and Unobservable Inputs (Details) - Non-Recurring Basis - Significant Unobservable Inputs (Level 3) - Third Party Appraisals	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Impaired loans carried at fair value of collateral | Minimum
Fair Value
Adjustment for differences between the comparable sales (as a percent)	(3.00%)	(16.00%)
Impaired loans carried at fair value of collateral | Maximum
Fair Value
Adjustment for differences between the comparable sales (as a percent)	(1.00%)	7.00%
Impaired loans carried at fair value of collateral | Weighted Average
Fair Value
Adjustment for differences between the comparable sales (as a percent)	(2.67%)	(4.00%)
Church | Real estate owned
Fair Value
Adjustment for differences between the comparable sales (as a percent)	(11.00%)	(6.00%)
Church | Real estate owned | Weighted Average
Fair Value
Adjustment for differences between the comparable sales (as a percent)	(10.85%)	(6.00%)

Fair Value - Fair Values of Fin

Fair Value - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Carrying Value
Financial Assets:
Loans receivable held for sale	$ 19,087	$ 22,370
Loans receivable held for investment	358,455	334,851
Financial Liabilities:
Time Deposits	168,556	150,789
Federal Home Loan Bank advances	82,000	65,000
Junior subordinated debentures	5,100	5,100
Fair Value
Financial Assets:
Loans receivable held for sale	19,217	22,626
Loans receivable held for investment	352,475	333,231
Financial Liabilities:
Time Deposits	167,453	150,240
Federal Home Loan Bank advances	81,370	64,887
Junior subordinated debentures	4,503	4,503
Significant Other Observable Inputs (Level 2) | Fair Value
Financial Assets:
Loans receivable held for sale	19,217	22,626
Financial Liabilities:
Time Deposits	167,453	150,240
Federal Home Loan Bank advances	81,370	64,887
Significant Unobservable Inputs (Level 3) | Fair Value
Financial Assets:
Loans receivable held for investment	352,475	333,231
Financial Liabilities:
Junior subordinated debentures	$ 4,503	$ 4,503

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Option Activity (Details) - 2008 LTIP - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-based compensation
Shares authorized to be granted under stock compensation plan	2,000,000		2,000,000
Shares available for future awards	1,293,109		1,293,109
Stock Options
Number Outstanding
Outstanding at beginning of period (in shares)			537,500	540,625
Granted during period (in shares)	0	0	0	0
Exercised during period (in shares)			0	0
Forfeited or expired during period (in shares)			0	0
Outstanding at end of period (in shares)	537,500	540,625	537,500	540,625
Exercisable at end of period (in shares)	267,500	180,625	267,500	180,625
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)			$ 2.19	$ 2.18
Outstanding at end of period (in dollars per share)	$ 2.19	$ 2.18	2.19	2.18
Exercisable at end of period (in dollars per share)	$ 2.71	$ 3.29	$ 2.71	$ 3.29
Additional disclosures
Stock based compensation expense (reversal of expense)	$ 10	$ 10	$ 29	$ 29
Unrecognized compensation cost, options	$ 94		$ 94
Period for recognizing unrecognized compensation cost			2 years 4 months 24 days

Stock-based Compensation - Opti

Stock-based Compensation - Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				3 Months Ended				9 Months Ended
	Mar. 31, 2018	Feb. 28, 2018	Apr. 30, 2017	Mar. 31, 2016	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Additional disclosures
Stock based compensation expense related to shares issued for services					$ 10	$ 10	$ 45
2008 LTIP | Common Stock | Directors
Additional disclosures
Shares issued for services	18,906		30,002
Stock based compensation expense related to shares issued for services	$ 45		$ 53
2008 LTIP | Stock Options
Outstanding
Number Outstanding					537,500			540,625	537,500	540,625	537,500	540,625
Weighted Average Remaining Contractual Life									6 years 3 months 11 days
Weighted Average Exercise Price					$ 2.19			$ 2.18	$ 2.19	$ 2.18	$ 2.19	$ 2.18
Exercisable
Number Outstanding (Exercisable)					267,500			180,625	267,500	180,625
Weighted Average Exercise Price (Exercisable)					$ 2.71			$ 3.29	$ 2.71	$ 3.29
Additional disclosures
Stock based compensation expense (reversal of expense)					$ 10			$ 10	$ 29	$ 29
Period for recognizing unrecognized compensation cost									2 years 4 months 24 days
2008 LTIP | Stock Options | January 21, 2009
Outstanding
Number Outstanding					7,500				7,500
Weighted Average Remaining Contractual Life									3 months 18 days
Weighted Average Exercise Price					$ 4				$ 4
Exercisable
Number Outstanding (Exercisable)					7,500				7,500
Weighted Average Exercise Price (Exercisable)					$ 4				$ 4
2008 LTIP | Stock Options | March 18, 2009
Outstanding
Number Outstanding					75,000				75,000
Weighted Average Remaining Contractual Life									5 months 16 days
Weighted Average Exercise Price					$ 4.98				$ 4.98
Exercisable
Number Outstanding (Exercisable)					75,000				75,000
Weighted Average Exercise Price (Exercisable)					$ 4.98				$ 4.98
2008 LTIP | Stock Options | January 21, 2010
Outstanding
Number Outstanding					5,000				5,000
Weighted Average Remaining Contractual Life									1 year 3 months 18 days
Weighted Average Exercise Price					$ 6				$ 6
Exercisable
Number Outstanding (Exercisable)					5,000				5,000
Weighted Average Exercise Price (Exercisable)					$ 6				$ 6
2008 LTIP | Stock Options | February 24, 2016
Outstanding
Number Outstanding					450,000				450,000
Weighted Average Remaining Contractual Life									7 years 4 months 24 days
Weighted Average Exercise Price					$ 1.62				$ 1.62
Exercisable
Number Outstanding (Exercisable)					180,000				180,000
Weighted Average Exercise Price (Exercisable)					$ 1.62				$ 1.62
2008 LTIP | Restricted stock | Chief Executive Officer
Additional disclosures
Restricted stock award (in shares)				120,483
Stock based compensation expense (reversal of expense)					$ 3			26	$ 33	79
Unrecognized compensation cost, restricted stock					6				$ 6
Period for recognizing unrecognized compensation cost									6 months
2008 LTIP | Restricted stock | Two-year period | Chief Executive Officer
Additional disclosures
Restricted stock award (in shares)				100,000
Vesting period of stock award				2 years
2008 LTIP | Restricted stock | Three-year period | Chief Executive Officer
Additional disclosures
Restricted stock award (in shares)				20,483
Vesting period of stock award				3 years
2008 LTIP | Cash-settled restricted stock units | Chief Executive Officer
Additional disclosures
Restricted stock award (in shares)		97,195	129,270
Vesting period of stock award			2 years
Stock based compensation expense (reversal of expense)					$ (37)			$ 40	$ 27	$ 62

ESOP Plan (Details)

ESOP Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
ESOP Plan
Number of common stock purchased by ESOP (in shares)			1,493,679
Purchase price of common stock			$ 1.59
Total cost of shares purchased by ESOP			$ 2,400
Loan to ESOP			$ 1,200
Term of ESOP loan (in years)			20 years
Compensation expense				$ 19	$ 31	$ 67	$ 79
Summary of shares held by the ESOP
Allocated to participants	1,108,382			1,108,382		1,108,382		1,108,382
Committed to be released	43,009			43,009		43,009		10,752
Suspense shares	656,613			656,613		656,613		688,870
Total ESOP shares	1,808,004			1,808,004		1,808,004		1,808,004
Fair value of unearned shares	$ 926			$ 926		$ 926		$ 1,626
Proceeds from repayment of ESOP loan	84	$ 79
Shares released for allocation						43,009		40,126
Unearned ESOP shares	$ 1,043			$ 1,043		$ 1,043		$ 1,095

Regulatory Matters (Details)

Regulatory Matters (Details)	Sep. 30, 2018	Dec. 31, 2017
Regulatory Matters
Common Equity Tier 1 required for capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Tier 1 required for capital adequacy purposes, ratio (as a percent)	6.00%	6.00%
Total capital required for capital adequacy purposes, ratio (as a percent)	8.00%	8.00%
Leverage required for capital adequacy purposes, ratio (as a percent)	4.00%	4.00%
Conservation Buffer Rule Starting January 2016
Regulatory Matters
Capital conservation buffer annual increase (as a percent)	0.625%
Conservation Buffer Rule Subsequent to 2016
Regulatory Matters
Capital conservation buffer annual increase (as a percent)	0.625%
Maximum | Conservation Buffer Rule
Regulatory Matters
Capital conservation buffer (as a percent)	2.50%

Regulatory Matters - Schedule o

Regulatory Matters - Schedule of Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Regulatory Matters
Tier-1 Leverage	$ 48,891	$ 47,838
Tier 1 Leverage, ratio (as a percent)	11.83%	11.39%
Common Equity Tier 1	$ 48,891	$ 47,838
Common Equity Tier 1, ratio (as a percent)	18.14%	18.63%
Tier 1	$ 48,891	$ 47,838
Tier 1, ratio (as a percent)	18.14%	18.63%
Total Capital	$ 52,123	$ 51,059
Total Capital, ratio (as a percent)	19.34%	19.88%
Leverage required for capital adequacy purposes	$ 16,538	$ 16,798
Leverage required for capital adequacy purposes, ratio (as a percent)	4.00%	4.00%
Common Equity Tier 1 required for capital adequacy purposes	$ 18,605	$ 11,557
Common Equity Tier 1 required for capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Tier 1 required for capital adequacy purposes	$ 24,807	$ 15,409
Tier 1 required for capital adequacy purposes, ratio (as a percent)	6.00%	6.00%
Total capital required for capital adequacy purposes	$ 33,076	$ 20,545
Total capital required for capital adequacy purposes, ratio (as a percent)	8.00%	8.00%

Regulatory Matters - Schedule_2

Regulatory Matters - Schedule of Actual and Required Capital Amounts and Ratios - Basel III and Dodd Frank Rules (Details) - Corrective Action Rules - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Basel III and Dodd Frank Rules
Tier 1 Leverage required to be Well Capitalized	$ 20,672	$ 20,997
Tier 1 Leverage required to be Well Capitalized (as a percent)	5.00%	5.00%
Common Equity Tier I required to be Well Capitalized	$ 17,518	$ 16,693
Common Equity Tier I required to be Well Capitalized (as a percent)	6.50%	6.50%
Tier I Capital required to be Well Capitalized	$ 21,561	$ 20,545
Tier I Capital required to be Well Capitalized (as a percent)	8.00%	8.00%
Total Capital required to be Well Capitalized	$ 26,951	$ 25,681
Total Capital required to be Well Capitalized (as a percent)	10.00%	10.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Income Taxes
Period for which prior cumulative losses considered in assessing the realization of deferred tax assets	2 years
Valuation allowance	$ 0	$ 0
Net deferred tax assets	$ 4.9	$ 5.1

Concentration of Credit Risk (D

Concentration of Credit Risk (Details)	9 Months Ended
	Sep. 30, 2018
Long-time Customer | Deposits
Concentration of Credit Risk
Percentage of concentration of risk	11.00%