MB Bancorp (MBCQ) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	MB Bancorp Inc
Entity Central Index Key	1,617,291
Trading Symbol	mbcq
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,938,480
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets:
Cash and due from banks	$ 2,576	$ 6,603
Interest bearing deposits in other banks	5,007	1,362
Total cash and cash equivalents	7,583	7,965
Other interest-bearing deposits in other banks	1,245	1,245
Investment securities available-for-sale - at fair value	15,067	16,605
Investment securities held to maturity - amortized cost	17,122	17,410
Loans, net of unearned fees	100,288	95,053
Less allowance for loan losses	(1,353)	(1,288)
Loans, net	98,935	93,765
Real estate ground rents	813	822
Less allowance for credit losses	(143)	(141)
Ground rents, net	670	681
Federal Home Loan Bank stock, at cost	1,025	754
Property and equipment - net	3,607	3,664
Deferred income taxes	0	0
Bank-owned life insurance	4,634	4,574
Accrued interest receivable and other assets	513	668
TOTAL ASSETS	150,401	147,331
LIABILITIES:
Deposits	98,066	103,308
Federal Home Loan Bank advances	21,000	13,000
Deferred compensation liability	144	159
Accounts payable and other liabilities	657	504
Total liabilities	119,867	116,971
STOCKHOLDERS' EQUITY:
Common stock .01 par value; authorized 19,000,000 shares; issued and outstanding, 1,938,480 and 1,940,200 shares at June 30, 2018 and December 31, 2017	19	19
Additional paid-in capital	18,240	18,135
Retained earnings - substantially restricted	14,117	13,780
Accumulated other comprehensive loss	(554)	(229)
Unearned ESOP shares	(1,288)	(1,345)
Total stockholders' equity	30,534	30,360
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 150,401	$ 147,331

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parantheticals) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	19,000,000	19,000,000
Common stock, shares issued	1,938,480	1,940,200
Common Stock, Shares, Outstanding	1,938,480	1,940,200

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INTEREST INCOME:
Interest and fees on loans	$ 1,136	$ 810	$ 2,085	$ 1,648
Interest on federal funds sold and other investments	12	22	27	46
Interest and dividends on investment securities	234	233	469	430
Total interest income	1,382	1,065	2,581	2,124
INTEREST EXPENSE:
Interest on deposits	241	200	473	393
Interest on short-term borrowings	34	21	51	35
Interest on long term borrowings	27	2	55	9
Total interest expense	302	223	579	437
NET INTEREST INCOME	1,080	842	2,002	1,687
REVERSAL FOR LOAN LOSSES	(225)	0	(225)	0
NET INTEREST INCOME AFTER REVERSAL FOR LOAN LOSSES	1,305	842	2,227	1,687
NON-INTEREST INCOME:
Increase in cash surrender value of life insurance	35	38	72	62
Gain on investment securities		26		42
Ground rent fees	12	10	22	22
Other income	10	12	21	23
Total non-interest income	78	96	147	172
NON-INTEREST EXPENSE:
Salaries and employee benefits	593	494	1,183	1,036
Occupancy expenses	102	102	204	216
Furniture and equipment expenses	11	10	22	19
Legal and professional expenses	95	94	198	175
Data processing and other outside services	74	79	156	154
FDIC insurance premiums	9	9	18	3
Advertising and marketing related expenses		2	2	5
Provision (reversal) for loss on ground rents	(4)	(10)	1	(12)
Other expenses	136	135	245	271
Total non-interest expenses	1,016	915	2,029	1,867
INCOME (LOSS) BEFORE INCOME TAXES	367	23	345	(8)
INCOME TAX EXPENSE	0	0	0	0
NET INCOME (LOSS)	$ 367	$ 23	$ 345	$ (8)
Basic earnings per share (in dollars per share)	$ 0.2	$ 0.02	$ 0.19	$ 0
Diluted earnings per share (in dollars per share)	$ 0.2	$ 0.02	$ 0.19	$ 0
Service charges on deposit accounts
NON-INTEREST INCOME:
Fees and Commissions	$ 4	$ 4	$ 8	$ 7
Fees and charges on loans
NON-INTEREST INCOME:
Fees and Commissions	$ 17	$ 6	$ 24	$ 16

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 367	$ 23	$ 345	$ (8)
OTHER COMPREHENSIVE (LOSS) INCOME ON AVAILABLE-FOR-SALE INVESTMENT SECURITIES:
Unrealized gains (losses) arising during the period	(26)	150	(325)	128
Reclassification of gains included in net income		(26)		(42)
Unrealized gains (losses) arising during the period	(26)	124	(325)	86
Income tax benefits on unrealized gains (losses) arising during the period	0	0	0	0
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME ON AVAILABLE-FOR-SALE INVESTMENT SECURITIES	(26)	124	(325)	86
COMPREHENSIVE INCOME	$ 341	$ 147	$ 20	$ 78

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid In Capital	Retained Earnings	Unearned ESOP Shares	Accumulated Other Comprehensive Income (Loss)	Total
BALANCES at Dec. 31, 2016	$ 19	$ 18,132	$ 13,770	$ (1,458)	$ (139)	$ 30,324
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			(8)			(8)
Net unrealized gains on available- for sale securities, net of taxes of ($0)					128	128
Repurchase of common stock		(121)	(64)			(185)
Stock - based compensation		37		57		94
BALANCES at Jun. 30, 2017	19	18,048	13,698	(1,401)	(11)	30,353
BALANCES at Dec. 31, 2017	19	18,135	13,780	(1,345)	(229)	30,360
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)			345			345
Net unrealized gains on available- for sale securities, net of taxes of ($0)					(325)	(325)
Repurchase of common stock		(16)	(8)			(24)
Stock - based compensation		121		57		178
BALANCES at Jun. 30, 2018	$ 19	$ 18,240	$ 14,117	$ (1,288)	$ (554)	$ 30,534

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Stockholders' Equity [Abstract]
Net unrealized gains (losses) on securities available-for-sale, Tax Effect	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 345	$ (8)
Adjustment to reconcile net income (loss) to net cash provided (used) in operating activities:
Depreciation expense	67	64
Increase in cash surrender value of life insurance	(60)	(48)
Net amortization/accretion of premiums and discounts	38	25
Reversal for loan losses	(225)	0
Provision (reversal) for ground rent losses	1	(12)
Non-cash compensation under stock-based benefit plan	178	94
Decrease in accrued interest and other assets	155	57
Gain on redemption of investment securities		(42)
Decrease in deferred compensation liability	(15)	(16)
Increase (decrease) in accounts payable and other liabilities	153	(183)
Net cash provided by (used in) operating activities	637	(69)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in other interest bearing deposits in other banks		3,237
Purchase of available-for-sale investments		(12,835)
Proceeds from calls/repayments of available-for-sale investments	1,172	466
Proceeds from sale of available for sale securities		338
Purchase of held-to-maturity investments		(1,732)
Proceeds from maturity/repayments of held-to-maturity investments	291	2,806
Net increase in loans	(4,945)	(490)
Proceeds from sale of ground rents	10	2
Purchase of bank-owned life insurance		(3,500)
Purchase of property, plant and equipment	(10)	(103)
Purchases of Federal Home Loan Bank stock	(271)	(208)
Net cash used in investing activities	(3,753)	(12,019)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits	(5,242)	6,311
Federal Home Loan Bank advances	30,000	34,000
Federal Home Loan Bank repayments	(22,000)	(29,000)
Repurchase of common stock	(24)	(185)
Net cash provided by financing activities	2,734	11,126
DECREASE IN CASH AND CASH EQUIVALENTS	(382)	(962)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	7,965	9,267
CASH AND CASH EQUIVALENTS AT END OF YEAR	7,583	8,305
Supplemental cash flow information:
Interest paid	581	440
Income taxes paid	0	0
Noncash:
Transfer of other real estate owned to loans	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In 2002, Bohemian American Federal Savings and Loan Association, Inc., incorporated in 1899 in the State of Maryland, merged with Madison & Bradford Federal Savings & Loan Association, incorporated in 1904 in the State of Maryland, to form Madison Bohemian Savings Bank. On September 1, 2009 Madison Bohemian Savings Bank changed its name to Madison Bank of Maryland (the “Bank”). The Bank’s principal business is providing mortgage and consumer loans in Baltimore and Harford County. The Bank also provides construction and lot loans. Significant accounting policies followed by the Bank are presented below. On August 26, 2014, the Bank’s Board of Directors approved a plan (the “Plan”) to convert from a federally-chartered mutual savings bank to a federally-chartered stock savings bank form of organization, which was subsequently approved by the Bank’s members. The Plan included the formation of MB Bancorp, Inc. (the “Company”) to own all of the outstanding capital stock of the Bank. On December 29, 2014, the Bank completed its mutual-to-stock conversion. On that date, the Bank became the wholly owned subsidiary of the Company and the Company sold 2,116,000 shares of its common stock for gross offering proceeds of $21,160,000. The cost of conversion and issuing and selling the capital stock of approximately $995,000 was deducted from the proceeds of the offering. At the time of conversion, the Bank established a liquidation account in an amount equal to its retained earnings as reflected in the latest balance sheet used in the final conversion prospectus. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their deposit accounts in the Bank after conversion. The liquidation account will be reduced annually to the extent that eligible depositors have reduced their qualifying deposits. In the event of a complete liquidation of the Bank, eligible depositors who continue to maintain accounts in accordance with Office of the Comptroller of the Currency (“OCC”) regulations will be entitled to receive a distribution from the liquidation account before any liquidation may be made with respect to the Company’s common stock. The conversion was accounted for as change in corporate form with the historic base of the Bank’s assets, liabilities and equity unchanged as a result. The Bank may not declare or pay a cash dividend if the effect thereof would cause its net worth to be reduced below either the amount required for the liquidation account discussed below or the regulatory capital requirements imposed by the OCC. Unaudited Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X as promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying consolidated financial statements as of June 30, 2018 and for the three and six months ended June 30, 2018 and 2017 contains all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2018. Certain prior period information has been reclassified to conform to the current period presentation. These statements should be read in conjunction with the audited consolidation financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations and cash flows for the three and six months ended June 30, 2018 and 2017 are not necessarily indicative of the results to be expected for the year ended December 31, 2018. Principles of Consolidation The consolidated financial statements include the accounts of MB Bancorp, Inc. (“The Company”) and it’s wholly owned subsidiaries, Madison Bank of Maryland (“The Bank”), 1920 Rock Spring Road, LLC formed in 1998 to own and hold real estate and Mutual, LLC formed in 2011 to hold other real estate owned. All significant intercompany accounts and transactions have been eliminated. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles and to general practices in the banking industry. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company has included cash and due from banks, interest-bearing deposits in other banks with original maturities of 90 days or less, and federal funds sold and other overnight investments as cash and cash equivalents for the purpose of reporting cash flows. Credit Risk The Company has unsecured deposits with several other financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”). Investments Securities As securities are purchased, management determines if the securities should be classified as held to maturity or available for sale. Securities which management has the intent and ability to hold to maturity are recorded at amortized cost. Securities which may be sold before maturity are classified as available for sale and carried at fair value with unrealized gains and losses included in accumulated other comprehensive income, a separate component of equity, on an after-tax basis. Realized gains and losses, using the specific identification method, are included as a separate component of noninterest income. Premiums and discounts on investment securities are amortized/accreted to the earlier of call or maturity. Investments in Federal Home Bank stock are excluded from securities classified as available for sale and are carried at cost. Declines in the fair value of individual available for sale or held to maturity securities below their cost that are other than temporary, result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether another-than-temporary impairment has occurred include, among others, a downgrading of the security by the rating agency or a significant deterioration in the financial condition of the issuer. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) the structure of the security. An impairment loss is recognized in earnings only when (1) the Bank intends to sell the debt security; (2) it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In situations where the Bank intends to sell or when it is more likely than not that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in stockholders’ equity as a component of other comprehensive income, net of deferred taxes. Loans Loans are stated at the principal amount outstanding net of any deferred fees and costs. Interest income on loans is accrued at the contractual rate on the principal amount outstanding. It is the Company’s policy to discontinue the accrual of interest when circumstances indicate that collection is doubtful. Direct loan origination fees, net of direct loan origination costs, are amortized or accreted over the contractual life of the loan using the interest method. Loans are considered impaired when, based on current information; it is probable that the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are considered impaired once principal and interest payments are past due and they are placed on non-accrual. Management also considers the financial condition of the borrower, cash flows of the loan and the value of the related collateral. Impaired loans do not include large groups of smaller balance homogeneous credits such as residential real estate and consumer installment loans, which are evaluated collectively for impairment. Loans specifically reviewed for impairment are not considered impaired during periods of “minimal delay” in payment (usually ninety days or less) provided eventual collection of all amounts due is expected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. The Company recognizes interest income on impaired loans on a cash basis if the borrower demonstrates the ability to meet the contractual obligation and collateral is sufficient. If there is doubt regarding the borrower’s ability to make payments or the collateral is not sufficient, payments received are accounted for as a reduction in principal. A loan is considered to be a troubled debt restructured loan (“TDR”) when the Company grants a concession to the borrower that the Company would not otherwise consider to a borrower of comparable risk and placed on non-accrual status. Such concessions include the reduction of interest rates, forgiveness of all or a portion of principal or interest, extension of loan term or other modifications at interest rates that are less than the current market rate for new obligations with similar risk. If a loan is in nonaccrual status at the time we restructure it and classify the restructure as a troubled debt restructuring, it is our policy to maintain the loan as nonaccrual until we receive six consecutive monthly payments under the restructured terms. Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to expense or reversal for loan losses which is credited to expense. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The Company maintains an allowance for loan losses at an amount estimated to equal all loan losses incurred in our loan portfolio that are both probable and reasonable to estimate at a balance sheet date. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions and trends that may affect the borrowers’ ability to pay. The allowance for loan losses represents an estimation done pursuant to either Accounting Standards Codification (“ASC”) Topic 450 “ Contingencies Receivables While management believes it has established the allowance for loan losses in accordance with generally accepted accounting principles and has taken into account the views of its regulators and the current economic environment, there can be no assurance that in the future the Bank’s regulators or the economic environment will not require further increases in the allowance. Real Estate Ground Rents Ground rents are a form of real estate ownership where the land is owned by one entity, but the improved property located on the land is owned by the homeowner. The Company’s ground rents are supported by deeds that have been registered with Maryland State Department of Assessments and Taxation. Under Maryland law, homeowners are required to pay the ground rent owner an annual fee that is stated in the original ground rent deed. The fee is typically 6% of the original value of the land as stipulated in the deed and is paid biannually. In addition, Maryland law stipulates that ground rent owners are required to sell or redeem the ground rent to the homeowner when requested. The redemption price on the ground rent is the lesser of the annual ground rent fee divided by a statutory redemption rate, which ranges from 6% to 12%, or the contractual sales price. Maryland also limits the collection of ground rent fees to amounts due for three years or less. Ground rents are recorded at the lower of cost or fair value. Fair value is estimated based on the contractual value of the unconsummated redemption or sales agreements. Ground rent fees are recognized upon receipt and included in non-interest income. At June 30, 2018 and December 31, 2017, the Company’s investment includes individual ground rents ranging from $600 to $3,000, totaling $813,000 and $822,000 respectively. An allowance for losses is established when the collectability of ground rent payments becomes uncertain, typically when the ground rent payment becomes three years delinquent. At June 30, 2018 and December 31, 2017, the Company had $143,000 and $141,000 respectively, of ground rents that were three years or more delinquent and were reserved at 100%. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization computed using the straight-line method. Premises and equipment are depreciated over the useful lives of the assets. Useful lives range from five to ten years for furniture, fixtures, and equipment; three to five years for software, hardware, and data handling equipment. Maintenance and repairs are charged to expense as incurred, while improvements, which extend the useful life, are capitalized and depreciated over the estimated remaining life of the asset. Long-lived depreciable assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Bank-Owned Life Insurance The Bank purchased single-premium life insurance policies on certain former officers and directors of the Bank. The net cash surrender value of those policies is classified in other assets. Appreciation in the value of the insurance policies is classified in non-interest income. Other Real Estate Owned Real estate acquired in satisfaction of a debt is carried at fair value net of estimated selling costs. Costs incurred in maintaining foreclosed real estate and write-downs to reflect declines in the fair value of the properties after acquisition are included in noninterest expenses. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Earnings Per Share Basic per share amounts are based on the weighted average shares of common stock outstanding. Unearned ESOP shares are not included in outstanding shares. Diluted earnings per share assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Advertising Costs Advertising costs are generally expensed as incurred Income Taxes The Bank uses the liability method of accounting for income taxes. Under the liability method, deferred-tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities ( i.e., ASC Topic 740, “ Income Taxes, Recognition of Deferred Tax Valuation Allowance During 2014, management established a valuation allowance for the net operating loss component of the Bank’s deferred tax assets as the Bank had remained in a cumulative loss position for three consecutive years and consequently management reevaluated the need for a valuation allowance of the deferred tax asset balance. Management’s evaluation included: management’s ability to fully implement our strategic plan and the ability to generate sufficient taxable income to fully realize the Bank’s net operating loss carryforwards. Management concluded that it is more likely than not the Bank will be unable to generate sufficient taxable income in the foreseeable future to fully utilize the cumulative net operating loss carryforward and, therefore, established a valuation allowance to offset the net operating loss carryforward related deferred tax asset. As of June 30, 2018, management concluded that it is more likely than not the Bank will be unable to generate sufficient taxable income in the foreseeable future to fully utilize the deferred tax assets and placed a full valuation allowance on all net deferred tax assets. Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2016, the 2016 Equity Incentive Plan (the “2016 plan”) was approved by shareholders, which authorizes the issuance of restricted stock and stock options to the Board of Directors and key employees. Compensation cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period on a straight-line basis. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. Supplemental Executive Retirement Plans (“SERP”) The Bank has SERP’s with various former officers and directors of the Bank. The liabilities under the majority of the agreements are capped at the cash values of insurance policies that have been purchased to fund the policies. The liability for a director who has already attained retirement age has been calculated on the present value of payments under the plan. There is also life insurance to protect the Bank under this director’s plan. Financial Statement Presentation Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.

IMPACT OF RECENT ACCOUNTING PRO

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	2. IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS In January 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-01 “ Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” In February 2016, FASB issued ASU-2016-02, “ Leases (Topic 842). In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” In May 2017, ASU 2017-09 , “Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting.” On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, which reduced the corporate tax rate from 35% to 21%. While the effect of such tax act will be materially beneficial in future years, it does have a negative impact on those corporate entities with deferred tax assets at December 31, 2017. The primary reason is that the tax law was enacted in 2017, a year prior to the effective date of 2018. The issue centers around deferred tax assets, a balance sheet account, which are simply future tax benefits arising from timing differences between financial statement expenses and tax return deductions. These deferred tax assets are values at enacted future corporate tax rates. Consequently, in 2017, corporations that had deferred tax assets were required to make a one-time adjustment to their income statement to write-down the deferred tax asset value reported on their balance sheets to reflect the lower future tax rates even though they would not receive the benefits of those lower rates until 2018 or later. In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-02 “ Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.”

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	3. INVESTMENT SECURITIES The carrying amount and estimated fair market value of investment securities classified as available-for-sale are summarized as follows: June 30, 2018 (unaudited) (Dollars in thousands) Amortized Gross Gross Estimated Investments available-for-sale: U.S. Government securities. $ 1,000 $ — $ (100 ) $ 900 Municipal securities 490 — (6 ) 484 Mortgage-backed securities: 14,131 — (448 ) 13,683 Total investments available-for-sale $ 15,621 $ — $ (554 ) $ 15,067 December 31, 2017 (Dollars in thousands) Amortized Gross Gross Estimated Investments available-for-sale: U.S. Government securities. $ 1,000 $ — $ (55 ) $ 945 Municipal securities 499 (2 ) 497 Mortgage-backed securities: 15,334 — (171 ) 15,163 Total investments available-for-sale $ 16,833 $ — $ (228 ) $ 16,605 The carrying amount and estimated fair market value of investment securities classified as held-to-maturity are summarized as follows: June 30, 2018 (unaudited) (Dollars in thousands) Amortized Gross Gross Estimated Investments held-to-maturity: U.S. Government securities: $ 12,500 $ — $ (743 ) $ 11,757 Mortgage backed securities 4,622 51 (166 ) 4,507 Total investments held-to-maturity $ 17,122 $ 51 $ (909 ) $ 16,264 December 31, 2017 (Dollars in thousands) Amortized Gross Gross Estimated Investments held-to-maturity: U.S. Government securities: $ 12,500 $ — $ (424 ) $ 12,076 Mortgage-backed securities: 4,910 106 (84 ) 4,932 Total Investments held-to-maturity $ 17,410 $ 106 $ (508 ) $ 17,008 Below are schedules of both available-for-sale and held-to-maturity securities with unrealized losses as of June 30, 2018 (unaudited) and December 31, 2017 and the length of time the individual security has been in a continuous unrealized loss position. Unrealized losses are the result of interest rate levels differing from those existing at the time of purchase of the securities and as to mortgage-backed securities, estimated prepayment speeds. At June 30, 2018 (unaudited) and December 31, 2017, these unrealized losses are considered temporary as they reflect changes in fair values and are subject to change daily as interest rates fluctuate and the Bank has the ability and intent to hold the securities until the earlier of maturity or recovery. There were no sales of investment securities for the six month period ended June 30, 2018. The Bank realized gains of $42,000 on sale of investment securities for the six month period ended June 30, 2017. Proceeds from sales of available for sale securities totaled $312,000 for six month period ended June 30, 2017 with realized gains of $8,000. During the six month period ended June 30, 2017, the Bank also sold held-to-maturity securities which has a substantial (greater than 85%) portion of the principal paid prior to the sale of the security thus not tainting the remaining held-to-maturity portfolio. Proceeds from sales of held-to-maturity securities totaled $729,000 for the six month period ended June 30, 2017 with realized gains of $34,000. June 30, 2018 (unaudited) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities $ 12,088 $ (342 ) $ 4,152 $ (272 ) $ 16,240 $ (614 ) Municipal securities — — 484 (6 ) 484 (6 ) U.S. Government securities 966 (34 ) 11,691 (809 ) 12,657 (843 ) Total temporarily impaired securities $ 13,054 $ (376 ) $ 16,327 $ (1,087 ) $ 29,381 $ (1,463 ) December 31, 2017 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities $ 13,443 $ (117 ) $ 4,499 $ (138 ) $ 17,942 $ (255 ) Municipal securities 497 (2 ) — — 497 (2 ) U.S. Government securities 987 (13 ) 12,034 (466 ) 13,021 (479 ) Total temporarily impaired securities $ 14,927 $ (132 ) $ 16,533 $ (604 ) $ 31,460 $ (736 ) The scheduled maturities of debt securities at June 30, 2018 (unaudited) were as follows: Amortized Fair Due over one year through five years $ 1,000 $ 966 Due over five years through ten years 11,000 10,327 Due after ten years 1,990 1,848 Mortgage-backed securities 18,753 18,190 Total $ 32,743 $ 31,331

LOANS RECEIVABLE

LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
LOANS RECEIVABLE	4. LOANS RECEIVABLE Loans receivable consist of the following: June 30, December 31, (Dollars in thousands) (unaudited) Secured by real estate: Residential: One-to four-family $ 77,407 $ 74,266 Multi-family 1,222 1,243 Total 78,629 75,509 Non-residential 14,092 13,183 Construction and land loans 2,996 3,240 Home equity line of credit (“HELOC”) 3,411 3,471 Commercial, Consumer and other loans: Commercial loans 2,135 296 Loans to depositors, secured by savings 64 128 101,327 95,827 Add: Net (discount) premium on purchased loans — 1 Unamortized net deferred costs 46 41 Less: Undisbursed portion of construction loans (1,011 ) (741 ) Unearned net loan origination fees (74 ) (75 ) Less allowance for loan losses (1,353 ) (1,288 ) Loans receivable, net $ 98,935 $ 93,765 The risks associated with lending activities differ among the various loan types and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact the borrower’s ability to repay its loans and impact the associated collateral. Residential real estate includes mortgage loans with the underlying one- to four-family or multi-family residential property (primarily owner-occupied) securing the debt. The Bank’s attempt to minimize risk exposure is minimized in these types of loans through the evaluation of the credit worthiness of the borrower, including debt-to-income ratios and underwriting standards which limit the loans-to-value ratio to generally no more than 80% unless the borrower obtains private mortgage insurance. Residential real estate also includes home equity loans and lines of credit. These present a slightly higher risk to the Bank than one-to four-family first lien mortgages as they can be first or second liens on the underlying property. These loans are generally limited with respect to loan-to-value ratios and the credit worthiness of the borrower is considered including debt-to-income ratios. Non-residential real estate includes various types of loans which have differing levels of credit risk associated with them. Owner-occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with cash flows generated from the business being the primary source of loan repayment. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. The Bank, attempts to minimize this credit risk through its underwriting standards which include the credit worthiness of the borrower, a limitation on loan amounts to the value of the property securing the loan, and an evaluation of debt service coverage ratios. Non-owner occupied commercial real estate loans present a different credit risk to the Bank than owner-occupied commercial real estate, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirement and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinder the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Bank generally follows the same underwriting standards for these loans as with owner occupied commercial real estate, but recognizes the greater risk inherent in these credit relationships in its loan pricing. Construction and land loans consist of one- to four-family residential construction and land development loans. The risk of loss on these loans is largely dependent on the Bank’s ability to assess the property’s value at the completion of the project. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Bank must rely upon other repayment sources, including the borrowers and/or guarantors of the project or other collateral securing the loan. The Bank attempts to mitigate credit risk through strict underwriting standards including evaluation of the credit worthiness of the borrowers and their success in other projects, adequate loan-to-value ratios and continual monitoring of the project during its construction phase. Commercial loans consist primarily of loans secured by equipment the borrower’s deposit balance at the Bank or business assets. The risk of loss on these loans is largely dependent on the Bank’s ability to assess the borrower’s cash flow and ability to repay the loan as well assessing the collateral value. The Bank attempts to mitigate credit risk through strict underwriting guidelines, including evaluation of the credit worthiness of the borrowers and continued monitoring of the relationship. Consumer loans consist primarily of loans secured by the borrower’s deposit balance at the Bank. As these loans are typically 100% secured by savings and certificate of deposits, the risk of credit loss is not deemed significant. The Bank maintains an allowance for loan losses at an amount estimated to equal all loan losses incurred in our loan portfolio that are both probable and reasonable to estimate at a balance sheet date. Our determination as to the classification of our assets is subject to review by the OCC and the FDIC. We regularly review our asset portfolio to determine whether any assets require classification in accordance with applicable regulatory guidelines. The Bank provides for loan losses based upon the consistent application of our documented allowance for loan loss methodology. All loan losses are charged to the allowance for loan losses and all recoveries are credited to it. Additions to the allowance for loan losses are provided by charges to income based on various factors which, in our judgment, deserve current recognition is estimating probable losses. We regularly review the loan portfolio and make provisions for loan losses in order to maintain the allowance for loan losses in accordance with Generally Accepted Accounting Principles (“GAAP”). The allowance for loan losses consists of two components: • Specific allowances Losses on non-modified loans are charged-off in the month the loss is measured. Non-modified loans are measured for loss at the point the loan becomes 90 to 120 days delinquent or at maturity if an extension is requested. We obtain a third party appraisal to determine the fair value of the collateral. We measure these loans for loss by using the fair value of collateral less disposition costs method and if any loss is determined it is charged off directly. Subsequently, these loans are re-evaluated at least annually by obtaining an updated third party appraisal to determine if there should be any further loss recognition. • General allowances Management’s periodic evaluation of the adequacy of the allowance is based on the Bank’s historical loan loss experience, known and inherent losses in the portfolio, adverse situations that may affect the borrower’s ability to repay, and the estimated value of any underlying collateral. The historical loss experience is further adjusted for qualitative factors which include: changes in composition of the loan portfolio, current economic conditions, trends of past due and classified loans, quality of loan review system and Board oversight, existence and effect of concentrations and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. A loan is considered past due or delinquent when a contractual payment is not paid on the day it is due. Loans are generally placed on non-accrual status when they become 120 days delinquent. We may choose to consider loans from 90 to 119 days delinquent to be non-accrual, and generally do so except where a borrower has a history of periodically bringing a loan current after being 90 days or more delinquent. If the loan is less than 90 days delinquent, but information is brought to our attention that indicates the collection of interest is doubtful, the loan will immediately be considered non-accrual. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis. If the loan is deemed collateral dependent, the impairment is measured on the net realizable value of the collateral. If loan repayment is not deemed collateral dependent, impairment is measured on the net present value of the expected discounted future cash flows. The Bank charges off loans after, the loan or a portion of the loan is deemed to be a loss and the loss amount has been determined. The loss amount is charged to the established allowance for loan losses. Each loss is evaluated on its specific facts regarding the appropriate timing to recognize the loss. Unallocated Allowance Allowance for loan losses and recorded investment in loans for the three and six months ended June 30, 2018 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Allowance for loan losses: Beginning balance, April 1, 2018 $ 889 $ 384 $ 21 $ 1,294 Charge-offs — — — — Recoveries — 2 282 284 (Reverse) Provisions 76 (17 ) (284 ) (225 ) Ending balance, June 30, 2018 $ 965 $ 369 $ 19 $ 1,353 Beginning balance, January 1, 2018 $ 1,043 $ 158 $ 87 $ 1,288 Charge-offs — — — — Recoveries 5 3 282 290 (Reverse) Provisions (83 ) 208 (350 ) (225 ) Ending balance, June 30, 2018. $ 965 $ 369 $ 19 $ 1,353 Allowance for loan losses: Ending balance: individually evaluated for impairment. $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 965 $ 369 $ 19 $ 1,353 Loans: Ending balance: individually evaluated for impairment. . $ 2,372 $ 1,261 $ 445 $ 4,078 Ending balance: collectively evaluated for impairment $ 81,867 $ 12,831 $ 2,551 $ 97,249 Allowance for loan losses and recorded investment in loans for the three and six months ended June 30, 2017 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Allowance for loan losses: Beginning balance, April 1, 2017 $ 1,048 $ 97 $ 50 $ 1,195 Charge-offs (45 ) (62 ) — (107 ) Recoveries 3 — 131 134 Provisions 29 99 (128 ) — Ending balance, June 30, 2017 $ 1,035 $ 134 $ 53 $ 1,222 Beginning balance, January 1, 2017 $ 973 $ 158 $ 87 $ 1,218 Charge-offs (49 ) (81 ) — (130 ) Recoveries 3 — 131 134 Provisions 108 57 (165 ) — Ending balance, June 30, 2017. $ 1,035 $ 134 $ 53 $ 1,222 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 38 $ — $ — $ 38 Ending balance: collectively evaluated for impairment $ 997 $ 134 $ 53 $ 1,184 Loans: Ending balance: individually evaluated for impairment. . $ 3,042 $ 1,091 $ 1,201 $ 5,334 Ending balance: collectively evaluated for impairment $ 72,436 $ 8,647 $ 2,680 $ 83,763 Allowance for loan losses and recorded investment in loans for the year ended December 31, 2017 is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Allowance for loan losses: Beginning balance $ 973 $ 158 $ 87 $ 1,218 Charge-offs (85 ) (81 ) — (166 ) Recoveries 105 — 131 236 Provisions 50 (36 ) (131 ) — Ending balance $ 1,043 $ 158 $ 87 $ 1,288 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 30 $ — $ — $ 30 Ending balance: collectively evaluated for impairment $ 1,013 $ 158 $ 87 $ 1,258 Loans: Ending balance: individually evaluated for impairment . . $ 2,179 $ 1,154 $ 1,094 $ 4,427 Ending balance: collectively evaluated for impairment $ 77,225 $ 12,029 $ 2,146 $ 91,400 Credit risk profile by internally assigned classification as of June 30, 2018 (unaudited) is as follows: (Dollars in thousands) Residential Non- Construction Total Non-classified $ 80,204 $ 11,998 $ 2,321 $ 94,523 Special mention 2,009 1,108 242 3,359 Substandard 2,026 986 433 3,445 Doubtful — — — — Loss — — — — Total $ 84,239 $ 14,092 $ 2,996 $ 101,327 Credit risk profile by internally assigned classification as of December 31, 2017 is as follows: (Dollars in thousands) Residential Non-residential Construction Total Non-classified $ 74,808 $ 11,181 $ 1,910 $ 87,899 Special mention 2,060 — 236 2,296 Substandard 2,536 2,002 1,094 5,632 Doubtful — — — — Loss — — — — Total. $ 79,404 $ 13,183 $ 3,240 $ 95,827 • Special Mention • Substandard • Doubtful • Loss Impaired loans as of the three and for the six months ended June 30, 2018 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non-residential Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 2,372 $ 1,261 $ 445 $ 4,078 Unpaid principal balance 2,779 1,398 647 4,824 Average recorded investment, for the three months ended June 30, 2018 2,510 1,172 640 4,322 Interest income recognized 37 134 11 182 Interest income foregone 10 — — 10 Average recorded investment, for the six months ended June 30, 2018 2,562 1,156 850 4,568 Interest income recognized 77 148 19 244 Interest income foregone 20 — — 20 With an allowance recorded: Recorded investment — — — — Unpaid principal balance — — — — Related allowance — — — — Average recorded investment, for the three months ended June 30, 2018 — — — — Interest income recognized — — — — Interest income foregone — — — — Average recorded investment, for the six months ended June 30, 2018 — — — — Interest income recognized — — — — Interest income foregone — — — — Total Recorded investment 2,372 1,261 445 4,078 Unpaid principal balance 2,779 1,398 647 4,824 Related allowance — — — — Average recorded investment, for the three months ended June 30, 2018 2,510 1,172 640 4,322 Interest income recognized 37 134 11 182 Interest income foregone 10 — — 10 Average recorded investment, for the six months ended June 30, 2018 2,562 1,156 850 4,568 Interest income recognized 77 148 19 244 Interest income foregone 20 — — 20 Impaired loans as of the three and for the six months ended June 30, 2017 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 2,679 $ 1,091 $ 1,201 $ 4,971 Unpaid principal balance 3,667 1,670 2,240 7,577 Average recorded investment, for the three months ended June 30, 2017 2,724 756 816 4,296 Interest income recognized 37 8 13 58 Interest income foregone 9 — 12 21 Average recorded investment, for the six months ended June 30, 2017 2,578 1,054 1,278 4,910 Interest income recognized 103 23 25 151 Interest income foregone 16 — 30 46 With an allowance recorded: Recorded investment 363 — — 363 Unpaid principal balance 363 — — 363 Related allowance 38 — — 38 Average recorded investment, for the three months ended June 30, 2017 363 — — 363 Interest income recognized 9 — — 9 Interest income foregone — — — — Average recorded investment, for the six months ended June 30, 2017 348 — — 348 Interest income recognized 9 — — 9 Interest income foregone — — — — Total Recorded investment 3,042 1,091 1,201 5,334 Unpaid principal balance 4,030 1,670 2,240 7,940 Related allowance 38 — — 38 Average recorded investment, for the three months ended June 30, 2017 3,087 756 816 4,659 Interest income recognized 46 8 13 67 Interest income foregone 9 — 12 21 Average recorded investment, for the six months ended June 30, 2017 2,926 1,054 1,278 5,258 Interest income recognized 112 23 25 160 Interest income foregone 16 — 30 46 Impaired loans as of and for the year ended December 31, 2017 is as follows: (Dollars in thousands) Residential Real Estate, HELOC, Commercial, and Non- Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 1,823 $ 1,154 $ 1,094 $ 4,071 Unpaid principal balance 2,421 2,026 2,137 6,584 Average recorded investment, for the twelve months ended December 31, 2017 2,511 1,468 1,310 5,289 Interest income recognized 179 92 41 312 Interest income foregone 8 4 53 65 With an allowance recorded: Recorded investment 356 — — 356 Unpaid principal balance 357 — — 357 Related allowance 30 — — 30 Average recorded investment, for the twelve months ended December 31, 2017 354 — — 354 Interest income recognized 57 — — 57 Interest income foregone — — — — Total Recorded investment 2,179 1,154 1,094 4,427 Unpaid principal balance 2,778 2,026 2,137 6,941 Related allowance 30 — — 30 Average recorded investment, for the twelve months ended December 31, 2017 2,865 1,468 1,310 5,643 Interest income recognized 236 92 41 369 Interest income foregone 8 4 53 65 An aged analysis of past due loans as of June 30, 2018 (unaudited) are as follows: (Dollars in thousands) Residential Non- Construction Total Current $ 83,624 $ 14,092 $ 2,996 $ 100,712 30 - 59 days past due 144 — — 144 60 - 89 days past due 7 — — 7 Greater than 90 day past due and still accruing — — — — Greater than 90 days past due 464 — — 464 Total past due 615 — — 615 Total $ 84,239 $ 14,092 $ 2,996 $ 101,327 An aged analysis of past due loans as of December 31, 2017 are as follows: (Dollars in thousands) Residential Real Estate, HELOC, Commercial, and Non- Real Estate Construction and Land Total Current $ 78,710 $ 13,183 $ 2,609 $ 94,502 30 - 59 days past due 115 — — 115 60 - 89 days past due — — — — Greater than 90 day past due and still accruing 341 — — 341 Greater than 90 days past due 238 — 631 869 Total past due 694 — 631 1,325 Total $ 79,404 $ 13,183 $ 3.240 $ 95,827 Non-performing loans as of June 30, 2018 (unaudited) are as follows: (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 265 $ — $ 11 $ 276 Other non-accrual loans 531 — — 531 Total non-accrual loans 796 — 11 807 Accruing troubled debt restructured loans 1,191 1,261 — 2,452 Total $ 1,987 $ 1,261 $ 11 $ 3,259 Non-performing loans as of December 31, 2017 are as follows: (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 427 $ — $ 649 $ 1,076 Other non-accrual loans 430 74 — 504 Total non-accrual loans 857 74 649 1,580 Accruing troubled debt restructured loans 1,059 1,153 — 2,212 Total $ 1,916 $ 1,227 $ 649 $ 3,792 Troubled debt restructurings (“TDRs”) are modifications of loans to assist borrowers who are unable to meet the original terms of their loans, in an effort to minimize the potential loss on the loan. Modifications of the loan terms includes, but is not necessarily limited to: reduction of interest rates, forgiveness of all or a portion of principal or interest, extension of loan term or other modifications at interest rates that are less than the current market rate for new obligations with similar risk. If a loan is in non-accrual status at the time we restructure it and classify the restructure as a troubled debt restructuring, it is our policy to maintain the loan as nonaccrual until we receive six consecutive payments under the restructured terms. There was a refinance of an existing performing TDR ($944,000) during the six months ended June 30, 2018 and there was no troubled debt restructurings during the six months ended June 30, 2017 (unaudited). The loan that was refinanced experienced hardships from October 2011 through July 2013 whereby the borrowers could not make their scheduled payments and was modified in November 2013 becoming a TDR at that time. The loan performed in accordance with the modification; however the missed payments were deferred and became a balloon payment at maturity. In June 2018, the loan was refinanced and included all of the past deferred payments as well as the accrued late charges and legal expenses since there was sufficient collateral. The rate on the refinance did not change however the term was extended by approximately 3 years. There were no troubled debt restructures that subsequently defaulted during the six months ended June 30, 2018 and 2017 (unaudited). Loans serviced by the Bank for the benefit of others totaled $394,000 and $401,000 at June 30, 2018 (unaudited) and December 31, 2017, respectively. Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $519,000 as of June 30, 2018 (unaudited).

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2018
Other Real Estate [Abstract]
OTHER REAL ESTATE OWNED	5. OTHER REAL ESTATE OWNED The balance in other real estate owned at June 30, 2018 (unaudited) and December 31, 2017 was zero. The activity in residential other real estate owned is as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) (unaudited) Beginning balance $ — $ — Additions — — Transfers from Loans — — Transfers to Loans — — Sales — — Provisions — — Ending balance $ — $ —

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2018
Deposit Liabilities Disclosure [Abstract]
DEPOSITS	6. DEPOSITS Deposits are summarized as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) (unaudited) Non-interest-bearing deposits $ 1,830 $ 1,542 NOW and Money market 20,402 21,481 Savings 14,595 14,718 Certificates of deposit 61,239 65,567 Total deposits $ 98,066 $ 103,308 The aggregate amount of time deposits in denominations greater than $250,000 as of June 30, 2018 (unaudited) and December 31, 2017 was $3,224,000 and $3,165,000, respectively. Deposit amounts in excess of $250,000 generally are not insured by the Federal Deposit Insurance Corporation. At June 30, 2018 (unaudited), the schedule maturities of certificates of deposit are as follows: (Dollars in thousands) 2018 $ 12,532 2019 25,619 2020 9,522 2021 8,116 2022 3,995 2023 1,455 Total $ 61,239 Executive officers’ and directors’ deposits were $473,000 and $330,000 at June 30, 2018 (unaudited) and December 31, 2017, respectively.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	7. INCOME TAXES The sources of deferred tax assets and liabilities and the tax effect of each are as follows: June 30, December 31, (Dollars in thousands) (unaudited) Deferred tax assets: Deferred loan fees and costs, net $ 8 $ 9 Allowance for credit losses 372 355 Deferred compensation 40 44 Severance payments 44 60 Restricted stock awards 37 14 Allowance for ground rents 39 39 Allowance for delinquent mortgage interest 92 101 Contribution carryforward 2 2 Net operating loss carryforward 1,271 1,354 Unrealized loss on available-for-sale securities — — Total deferred tax assets 1,905 1,978 Valuation allowance (1,806 ) (1,883 ) Deferred tax assets after valuation allowance 99 95 Deferred tax liabilities: Depreciation 99 95 ESOP — — Total deferred tax liabilities 99 95 Net deferred tax assets $ — $ — Management evaluates deferred tax assets annually. The provision for income taxes is comprised of the following: June 30, 2018 June 30, 2017 (Dollars in thousands) (unaudited) (unaudited) Tax expense (benefit): Current federal and state $ — $ — Deferred tax — — Total $ — $ — At June 30, 2018, the Bank had approximately $4,400,000 in federal and $4,800,000 in state net operating loss carryforwards. These net operating loss carryforwards begin to expire in 2033. Realization depends on generating sufficient taxable income before the expiration of the loss carryforward period. The amount of the loss carryforward available for any one year may be limited if the Bank is subject to the alternative minimum tax. Valuation allowance for deferred taxes for the six months ended June 30, 2018 (unaudited) and December 31, 2017 is as follows: (Dollars in thousands) Valuation Balance of January 1, 2017 $ (2,608 ) Expiration of capital loss carryforwards — Decrease in valuation allowance 725 Balance of December 31, 2017 $ (1,883 ) Expiration of capital loss carryforwards — Decrease in valuation allowance 77 Balance of June 30, 2018 $ (1,806 ) As of December 31, 2017 and June 30, 2018, the Bank had remained in a cumulative loss position for three consecutive years and consequently management reevaluated the need for a valuation allowance of the deferred tax asset balance. Management’s evaluation included: management’s ability to fully implement our strategic plan, additional expenses incurred as the result of becoming a public company; and the ability to generate sufficient taxable income to fully realize the Bank’s net operating loss carryforwards. Management concluded that it is more likely than not the Bank will be unable to generate sufficient taxable income in the foreseeable future to fully utilize the cumulative net operating loss carryforward and, therefore, established a valuation allowance to offset entire deferred tax asset.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
Share-based Compensation [Abstract]
STOCK BASED COMPENSATION	8. STOCK BASED COMPENSATION In May 2016, the Company’s shareholders approved a new Equity Incentive Plan (the “2016 Equity Incentive Plan’’). The 2016 Equity Incentive Plan allows for up to 84,640 shares to be issued to employees, executive officers or Directors in the form of restricted stock, and up to 211,600 shares to be issued to employees, executive officers or Directors in the form of stock options. At June 30, 2018, there were 52,500 restricted stock awards issued and outstanding and no stock option awards granted under the 2016 Equity Incentive Plan. Permissible Awards: Under the above plan, the following are permissible awards: · Options to purchase shares of the Company common stock, which may either be non-qualified stock options or incentive stock options under Section 422 of the U.S. Internal Revenue Code of 1986, as amended; · Restricted stock grants, which may be subject to restrictions on transferability and forfeiture; and · All awards may be granted with time-based or performance-based vesting. Restricted Stock: The specific terms of each restricted stock award are determined by the Compensation Committee at the date of the grant. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. A summary of changes in the Company’s nonvested shares for the year ended December 31, 2017 and the quarter ended June 30, 2018 are as follows: Weighted-Average Grant-Date Shares Fair Value Nonvested at January 1, 2017 2,500 $ 13.40 Granted 50,000 15.29 Vested 1,250 13.40 Forfeited - - Nonvested at December 31, 2017 51,250 $ 15.24 Nonvested at January 1, 2018 51,250 $ 15.24 Granted - - Vested - - Forfeited - - Nonvested at June 30, 2018 51,250 $ 15.24 Fair Value of shares vested $ 19,688 The following table outlines the vesting schedule of the nonvested restricted stock awards as of June 30, 2018: Year Ending December 31, Number of 2018 11,250 2019 10,000 2020 10,000 2021 10,000 2022 10,000 51,250 The Company recorded restricted stock awards expense of $84,825 and $8,161 for the six months ended June 30, 2018 and June 30, 2017, respectively. As of June 30, 2018, there was $643,819 of total unrecognized compensation cost related to nonvested shares granted under the 2016 Equity Incentive Plan. The cost is expected to be recognized over a weighted-average period of 4.25 years.

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS	6 Months Ended
	Jun. 30, 2018
Regulatory Capital Requirements [Abstract]
REGULATORY CAPITAL REQUIREMENTS	9. REGULATORY CAPITAL REQUIREMENTS The Bank is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain amounts and ratios (set forth in the table below) of Total and Common Equity and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets. Management believes as of June 30, 2018 and December 31, 2017 that the Bank met all capital adequacy requirements to which it is subject. As of December 31, 2017, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events that management believes will adversely affect the Bank’s ability to remain in the well-capitalized category. The following table presents the Bank’s capital position based on the June 30, 2018 (unaudited) and December 31, 2017 financial statements and the current capital requirements: Actual Minimum Requirements for To be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2018: Total risk-based capital (to risk-weighted assets) $ 25,647 31.49 % $ 8,043 9.875 % $ 8,144 10.00 % Tier I capital (to risk-weighted assets) 24,625 30.24 6,413 7.875 6,515 8.00 Tier I capital (to adjusted total assets) 24,625 16.88 5,835 4.000 7,294 5.00 Common equity tier 1 capital (to risk weighted assets) 24,625 30.24 5,191 6.375 5,293 6.50 As of December 31, 2017: Total risk-based capital (to risk-weighted assets) $ 24,934 32.58 % $ 7,078 9.25 % $ 7,653 10.00 % Tier I capital (to risk-weighted assets) 23,974 31.33 5,548 7.25 6,122 8.00 Tier I capital (to adjusted total assets) 23,974 16.55 5,795 4.00 7,243 5.00 Common equity tier 1 capital (to risk weighted assets) 23,974 31.33 4,400 5.75 4,974 6.50 The following table presents a reconciliation of the Bank’s GAAP capital to each major category of regulatory capital for the dates indicated. June 30, December 31, (Dollars in thousands) (unaudited) Total Company equity capital $ 30,534 $ 30,360 LESS: Parent Only Equity 6,463 6,615 LESS: Net unrealized (losses) gains on available-for-sale securities (554 ) (229 ) Tier 1 Capital $ 24,625 $ 23,974 Tier 1 Capital $ 24,625 $ 23,974 Allowance for loan and lease losses includible in Tier 2 capital 1,022 960 Total risk-based capital $ 25,647 $ 24,934

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
OTHER COMPREHENSIVE INCOME	10. OTHER COMPREHENSIVE INCOME The following table presents the components of other comprehensive gains and losses for the six months ended June 30, 2018 and 2017 (unaudited). (Dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2018 (unaudited) Net unrealized losses on securities available-for-sale $ (325 ) $ - $ (325 ) Other Comprehensive Loss $ (325 ) $ - $ (325 ) Six Months Ended June 30, 2017 (unaudited) Net unrealized gains on securities available-for-sale $ 86 $ — $ 86 Other Comprehensive Gain $ 86 $ — $ 86 The following table presents the changes in each components of accumulated other comprehensive income, net of tax, for the six months ended June 30, 2018 and 2017 (unaudited). (Dollars in thousands) Securities Accumulated Other Six Months Ended June 30, 2018 (unaudited) Balance at Beginning of Year $ (229 ) $ (229 ) Other comprehensive loss (325 ) (325 ) Balance at End of Period $ (554 ) $ (554 ) (Dollars in thousands) Securities Accumulated Other Six Months Ended June 30, 2017 (unaudited) Balance at Beginning of Year $ (139 ) $ (139 ) Other comprehensive gain 128 128 Balance at End of Period $ (11 ) $ (11 ) The following table presents the amount reclassified out of accumulated other comprehensive income: Details about Accumulated Other Comprehensive Income Amount Reclassified Affected Line Item in the Statement June 30, June 30, (Dollars in thousands) (unaudited) Redemption of Investment Securities Available-for-Sale $ — $ (42 ) Realized gain on redemption of investment securities - - Provision for Income Tax $ — $ (42 ) Net of Tax Total Reclassifications for the Period $ — $ (42 ) Net of Tax

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	11. EARNINGS PER SHARE Basic per share amounts are based on the weighted average shares of common stock outstanding. Unearned ESOP shares are not included in outstanding shares. Diluted earnings per share assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. The basic and diluted weighted average shares outstanding for the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended June 30, 2018 (unaudited) (Dollars in thousands, except per share amount) Income Shares Per Share Basic EPS Net income available to shareholders $ 367 1,809,833 $ 0.20 Diluted EPS Effect of dilutive shares - - - Net income available to shareholders $ 367 1,809,833 $ 0.20 Six Months Ended June 30, 2018 (unaudited) (Dollars in thousands, except per share amount) Income Shares Per Share Basic EPS Net income available to shareholders $ 345 1,808,479 $ 0.19 Diluted EPS Effect of dilutive shares — — — Net income available to shareholders $ 345 1,808,479 $ 0.19 Three Months Ended June 30, 2017 (unaudited) (Dollars in thousands, except per share amount) Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ 23 1,748,729 $ 0.02 Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ 23 1,748,729 $ 0.02 Six Months Ended June 30, 2017 (unaudited) (Dollars in thousands, except per share amount) Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ (8 ) 1,751,116 $ (0.00 ) Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ (8 ) 1,751,116 $ (0.00 ) There were no anti-dilutive shares excluded from the June 30, 2018 and 2017 diluted earnings per share calculation.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	12. FAIR VALUE MEASUREMENTS Effective January 1, 2009, the Bank adopted the Guidance in ASC Topic 820, “ Fair Value Measurements and Disclosures ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an 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. ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Bank utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available-for-sale is recorded at fair value on a recurring basis. Additionally, from time to time, the Bank may be required to record at fair value all other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. ASC Topic 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Investment Securities Available-for-Sale. Loans. Contingencies Assets measured at fair value on a recurring basis are included in the table below: Fair Value Measurements at June 30, 2018 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Investments (available-for-sale) : Obligations of U.S. Government Agencies $ 900 $ — $ 900 $ — $ — $ — U.S. Municipal securities 484 — 484 — — — Mortgage-backed securities 13,683 — 13,683 — — — Total assets measured at fair value on a recurring basis $ 15,067 $ — $ 15,067 $ — $ — $ — Fair Value Measurements at December 31, 2017 Using: Description (Dollars in thousands) Fair Value 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Investments (available-for-sale) : Obligations of U.S. Government Agencies $ 945 $ — $ 945 $ — $ — $ — Municipal securities 497 — 497 — — — Mortgage-backed securities 15,163 — 15,163 — — — Total assets measured at fair value on a recurring basis $ 16,605 $ — $ 16,605 $ — $ — $ — The Bank may be required from time to time, to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below: Fair Value Measurements at June 30, 2018 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Impaired loans: Residential $ 2,372 $ — $ 2,372 $ — $ — $ — Commercial 1,261 — 1,261 — — — Land 445 — 445 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 4,078 $ — $ 4,078 $ — $ — $ — Fair Value Measurements at December 31, 2017 Using: Description (Dollars in thousands) Fair Value December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Impaired loans: Residential $ 2,149 $ — $ 1,822 $ 327 $ — $ — Commercial 1,154 — 1,154 — — — Land 1,094 — 1,094 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 4,397 $ — $ 4,070 $ 327 $ — $ — The significant unobservable inputs (Level 3) are determined by using the net present value of the expected discounted future cash flows methodology. Loans were modified based on the expected cash flows with modified terms and rates ranging from 3.00% to 4.00% discounted at contractual rates ranging from 5.25% to 7.375%. In accordance with the disclosure requirements of ASC Topic 825, the estimated fair values of financial instruments at June 30, 2018 (unaudited) and December 31, 2017 are as follows: (Dollars in thousands) Carrying Value June 30, 2018 (unaudited) Fair Value June 30, (unaudited) Quoted Prices In Active Markets For (Level 1) Other Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 2,576 $ 2,576 $ — $ 2,576 $ — Other interest bearing deposits in other banks 6,252 6,252 — 6,252 — Investment securities 32,189 31,331 — 31,331 — Federal Home Loan Bank stock 1,025 1,025 — 1,025 — Loans, net 98,935 98,561 — 4,078 94,483 Bank owned life insurance 4,634 4,634 — 4,634 — Accrued interest receivable 399 399 — 399 — LIABILITIES Deposits $ 98,066 $ 97,037 $ — $ — $ 97,037 FHLB advances 21,000 20,964 — — 20,964 (Dollars in thousands) Carrying Value December 31, 2017 Fair Value December 31, Quoted Prices In Active Markets For (Level 1) Other Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 6,603 $ 6,603 $ — $ 6,603 $ — Other interest bearing deposits in other banks 2,607 2,607 — 2,607 — Investment securities 34,015 33,613 — 33,613 — Federal Home Loan Bank stock 754 754 — 754 — Loans, net 93,765 94,009 — 4,070 89,939 Bank owned life insurance 4,574 4,574 — 4,574 — Accrued interest receivable 394 394 — 394 — LIABILITIES Deposits $ 103,308 $ 99,719 $ — $ — $ 99,719 FHLB advances 13,000 12,978 — — 12,978 The following methods and assumptions were used to estimate the fair value disclosures for financial instruments as of June 30, 2018 (unaudited) and December 31, 2017: Cash, Interest-Bearing Deposits and Federal Funds Sold and Other Interest-Bearing Deposits in Other Banks The amounts reported in the balance sheet approximate the fair value of these assets. Investment Securities The fair values are based on the quoted market prices, if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Federal Home Loan Bank Stock The par value of Federal Home Loan Bank stock report on the balance sheet is a reasonable estimate of fair value. Accrued Interest Receivable The amounts reported in the balance sheet approximate the fair value of these assets. Loans, Deposits and Federal Home Loan Bank Advances Loans receivable were discounted using a single discount rate, comparing the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of demand deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered on deposits of similar remaining maturities. The fair value of Federal Home Loan Bank advances is estimated using rates currently offered on advances of similar remaining maturities. Bank-Owned Life Insurance The amounts reported in the balance sheet approximate the fair value of these assets.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Unaudited Interim Financial Statements	Unaudited Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X as promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying consolidated financial statements as of June 30, 2018 and for the three and six months ended June 30, 2018 and 2017 contains all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2018. Certain prior period information has been reclassified to conform to the current period presentation. These statements should be read in conjunction with the audited consolidation financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations and cash flows for the three and six months ended June 30, 2018 and 2017 are not necessarily indicative of the results to be expected for the year ended December 31, 2018.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of MB Bancorp, Inc. (“The Company”) and it’s wholly owned subsidiaries, Madison Bank of Maryland (“The Bank”), 1920 Rock Spring Road, LLC formed in 1998 to own and hold real estate and Mutual, LLC formed in 2011 to hold other real estate owned. All significant intercompany accounts and transactions have been eliminated. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles and to general practices in the banking industry.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company has included cash and due from banks, interest-bearing deposits in other banks with original maturities of 90 days or less, and federal funds sold and other overnight investments as cash and cash equivalents for the purpose of reporting cash flows.
Credit Risk	Credit Risk The Company has unsecured deposits with several other financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”).
Investments Securities	Investments Securities As securities are purchased, management determines if the securities should be classified as held to maturity or available for sale. Securities which management has the intent and ability to hold to maturity are recorded at amortized cost. Securities which may be sold before maturity are classified as available for sale and carried at fair value with unrealized gains and losses included in accumulated other comprehensive income, a separate component of equity, on an after-tax basis. Realized gains and losses, using the specific identification method, are included as a separate component of noninterest income. Premiums and discounts on investment securities are amortized/accreted to the earlier of call or maturity. Investments in Federal Home Bank stock are excluded from securities classified as available for sale and are carried at cost. Declines in the fair value of individual available for sale or held to maturity securities below their cost that are other than temporary, result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether another-than-temporary impairment has occurred include, among others, a downgrading of the security by the rating agency or a significant deterioration in the financial condition of the issuer. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) the structure of the security. An impairment loss is recognized in earnings only when (1) the Bank intends to sell the debt security; (2) it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In situations where the Bank intends to sell or when it is more likely than not that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in stockholders’ equity as a component of other comprehensive income, net of deferred taxes.
Loans	Loans Loans are stated at the principal amount outstanding net of any deferred fees and costs. Interest income on loans is accrued at the contractual rate on the principal amount outstanding. It is the Company’s policy to discontinue the accrual of interest when circumstances indicate that collection is doubtful. Direct loan origination fees, net of direct loan origination costs, are amortized or accreted over the contractual life of the loan using the interest method. Loans are considered impaired when, based on current information; it is probable that the Company will not collect all principal and interest payments according to contractual terms. Generally, loans are considered impaired once principal and interest payments are past due and they are placed on non-accrual. Management also considers the financial condition of the borrower, cash flows of the loan and the value of the related collateral. Impaired loans do not include large groups of smaller balance homogeneous credits such as residential real estate and consumer installment loans, which are evaluated collectively for impairment. Loans specifically reviewed for impairment are not considered impaired during periods of “minimal delay” in payment (usually ninety days or less) provided eventual collection of all amounts due is expected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. The Company recognizes interest income on impaired loans on a cash basis if the borrower demonstrates the ability to meet the contractual obligation and collateral is sufficient. If there is doubt regarding the borrower’s ability to make payments or the collateral is not sufficient, payments received are accounted for as a reduction in principal. A loan is considered to be a troubled debt restructured loan (“TDR”) when the Company grants a concession to the borrower that the Company would not otherwise consider to a borrower of comparable risk and placed on non-accrual status. Such concessions include the reduction of interest rates, forgiveness of all or a portion of principal or interest, extension of loan term or other modifications at interest rates that are less than the current market rate for new obligations with similar risk. If a loan is in nonaccrual status at the time we restructure it and classify the restructure as a troubled debt restructuring, it is our policy to maintain the loan as nonaccrual until we receive six consecutive monthly payments under the restructured terms.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to expense or reversal for loan losses which is credited to expense. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The Company maintains an allowance for loan losses at an amount estimated to equal all loan losses incurred in our loan portfolio that are both probable and reasonable to estimate at a balance sheet date. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions and trends that may affect the borrowers’ ability to pay. The allowance for loan losses represents an estimation done pursuant to either Accounting Standards Codification (“ASC”) Topic 450 “ Contingencies Receivables While management believes it has established the allowance for loan losses in accordance with generally accepted accounting principles and has taken into account the views of its regulators and the current economic environment, there can be no assurance that in the future the Bank’s regulators or the economic environment will not require further increases in the allowance.
Real Estate Ground Rents	Real Estate Ground Rents Ground rents are a form of real estate ownership where the land is owned by one entity, but the improved property located on the land is owned by the homeowner. The Company’s ground rents are supported by deeds that have been registered with Maryland State Department of Assessments and Taxation. Under Maryland law, homeowners are required to pay the ground rent owner an annual fee that is stated in the original ground rent deed. The fee is typically 6% of the original value of the land as stipulated in the deed and is paid biannually. In addition, Maryland law stipulates that ground rent owners are required to sell or redeem the ground rent to the homeowner when requested. The redemption price on the ground rent is the lesser of the annual ground rent fee divided by a statutory redemption rate, which ranges from 6% to 12%, or the contractual sales price. Maryland also limits the collection of ground rent fees to amounts due for three years or less. Ground rents are recorded at the lower of cost or fair value. Fair value is estimated based on the contractual value of the unconsummated redemption or sales agreements. Ground rent fees are recognized upon receipt and included in non-interest income. At June 30, 2018 and December 31, 2017, the Company’s investment includes individual ground rents ranging from $600 to $3,000, totaling $813,000 and $822,000 respectively. An allowance for losses is established when the collectability of ground rent payments becomes uncertain, typically when the ground rent payment becomes three years delinquent. At June 30, 2018 and December 31, 2017, the Company had $143,000 and $141,000 respectively, of ground rents that were three years or more delinquent and were reserved at 100%.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization computed using the straight-line method. Premises and equipment are depreciated over the useful lives of the assets. Useful lives range from five to ten years for furniture, fixtures, and equipment; three to five years for software, hardware, and data handling equipment. Maintenance and repairs are charged to expense as incurred, while improvements, which extend the useful life, are capitalized and depreciated over the estimated remaining life of the asset. Long-lived depreciable assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis.
Bank-Owned Life Insurance	Bank-Owned Life Insurance The Bank purchased single-premium life insurance policies on certain former officers and directors of the Bank. The net cash surrender value of those policies is classified in other assets. Appreciation in the value of the insurance policies is classified in non-interest income.
Other Real Estate Owned	Other Real Estate Owned Real estate acquired in satisfaction of a debt is carried at fair value net of estimated selling costs. Costs incurred in maintaining foreclosed real estate and write-downs to reflect declines in the fair value of the properties after acquisition are included in noninterest expenses.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Earnings Per Share	Earnings Per Share Basic per share amounts are based on the weighted average shares of common stock outstanding. Unearned ESOP shares are not included in outstanding shares. Diluted earnings per share assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share.
Advertising Costs	Advertising Costs Advertising costs are generally expensed as incurred
Income Taxes	Income Taxes The Bank uses the liability method of accounting for income taxes. Under the liability method, deferred-tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities ( i.e., ASC Topic 740, “ Income Taxes,
Recognition of Deferred Tax Valuation Allowance	Recognition of Deferred Tax Valuation Allowance During 2014, management established a valuation allowance for the net operating loss component of the Bank’s deferred tax assets as the Bank had remained in a cumulative loss position for three consecutive years and consequently management reevaluated the need for a valuation allowance of the deferred tax asset balance. Management’s evaluation included: management’s ability to fully implement our strategic plan and the ability to generate sufficient taxable income to fully realize the Bank’s net operating loss carryforwards. Management concluded that it is more likely than not the Bank will be unable to generate sufficient taxable income in the foreseeable future to fully utilize the cumulative net operating loss carryforward and, therefore, established a valuation allowance to offset the net operating loss carryforward related deferred tax asset. As of June 30, 2018, management concluded that it is more likely than not the Bank will be unable to generate sufficient taxable income in the foreseeable future to fully utilize the deferred tax assets and placed a full valuation allowance on all net deferred tax assets.
Stock-Based Compensation	Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2016, the 2016 Equity Incentive Plan (the “2016 plan”) was approved by shareholders, which authorizes the issuance of restricted stock and stock options to the Board of Directors and key employees. Compensation cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period on a straight-line basis. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience.
Supplemental Executive Retirement Plans ("SERP")	Supplemental Executive Retirement Plans (“SERP”) The Bank has SERP’s with various former officers and directors of the Bank. The liabilities under the majority of the agreements are capped at the cash values of insurance policies that have been purchased to fund the policies. The liability for a director who has already attained retirement age has been calculated on the present value of payments under the plan. There is also life insurance to protect the Bank under this director’s plan.
Financial Statement Presentation	Financial Statement Presentation Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of carrying amount and estimated fair market value of investment securities classified as available-for-sale	June 30, 2018 (unaudited) (Dollars in thousands) Amortized Gross Gross Estimated Investments available-for-sale: U.S. Government securities. $ 1,000 $ — $ (100 ) $ 900 Municipal securities 490 — (6 ) 484 Mortgage-backed securities: 14,131 — (448 ) 13,683 Total investments available-for-sale $ 15,621 $ — $ (554 ) $ 15,067 December 31, 2017 (Dollars in thousands) Amortized Gross Gross Estimated Investments available-for-sale: U.S. Government securities. $ 1,000 $ — $ (55 ) $ 945 Municipal securities 499 (2 ) 497 Mortgage-backed securities: 15,334 — (171 ) 15,163 Total investments available-for-sale $ 16,833 $ — $ (228 ) $ 16,605
Schedule of carrying amount and estimated fair market value of investment securities classified as held-to-maturity	June 30, 2018 (unaudited) (Dollars in thousands) Amortized Gross Gross Estimated Investments held-to-maturity: U.S. Government securities: $ 12,500 $ — $ (743 ) $ 11,757 Mortgage backed securities 4,622 51 (166 ) 4,507 Total investments held-to-maturity $ 17,122 $ 51 $ (909 ) $ 16,264 December 31, 2017 (Dollars in thousands) Amortized Gross Gross Estimated Investments held-to-maturity: U.S. Government securities: $ 12,500 $ — $ (424 ) $ 12,076 Mortgage-backed securities: 4,910 106 (84 ) 4,932 Total Investments held-to-maturity $ 17,410 $ 106 $ (508 ) $ 17,008
Schedule of unrealized losses are considered temporary	June 30, 2018 (unaudited) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities $ 12,088 $ (342 ) $ 4,152 $ (272 ) $ 16,240 $ (614 ) Municipal securities — — 484 (6 ) 484 (6 ) U.S. Government securities 966 (34 ) 11,691 (809 ) 12,657 (843 ) Total temporarily impaired securities $ 13,054 $ (376 ) $ 16,327 $ (1,087 ) $ 29,381 $ (1,463 ) December 31, 2017 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities $ 13,443 $ (117 ) $ 4,499 $ (138 ) $ 17,942 $ (255 ) Municipal securities 497 (2 ) — — 497 (2 ) U.S. Government securities 987 (13 ) 12,034 (466 ) 13,021 (479 ) Total temporarily impaired securities $ 14,927 $ (132 ) $ 16,533 $ (604 ) $ 31,460 $ (736 )
Schedule of maturities of debt securities	Amortized Fair Due over one year through five years $ 1,000 $ 966 Due over five years through ten years 11,000 10,327 Due after ten years 1,990 1,848 Mortgage-backed securities 18,753 18,190 Total $ 32,743 $ 31,331

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Schedule of loans receivable	June 30, December 31, (Dollars in thousands) (unaudited) Secured by real estate: Residential: One-to four-family $ 77,407 $ 74,266 Multi-family 1,222 1,243 Total 78,629 75,509 Non-residential 14,092 13,183 Construction and land loans 2,996 3,240 Home equity line of credit (“HELOC”) 3,411 3,471 Commercial, Consumer and other loans: Commercial loans 2,135 296 Loans to depositors, secured by savings 64 128 101,327 95,827 Add: Net (discount) premium on purchased loans — 1 Unamortized net deferred costs 46 41 Less: Undisbursed portion of construction loans (1,011 ) (741 ) Unearned net loan origination fees (74 ) (75 ) Less allowance for loan losses (1,353 ) (1,288 ) Loans receivable, net $ 98,935 $ 93,765
Schedule of allowance for loan losses and recorded investment	Allowance for loan losses and recorded investment in loans for the three and six months ended June 30, 2018 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Allowance for loan losses: Beginning balance, April 1, 2018 $ 889 $ 384 $ 21 $ 1,294 Charge-offs — — — — Recoveries — 2 282 284 (Reverse) Provisions 76 (17 ) (284 ) (225 ) Ending balance, June 30, 2018 $ 965 $ 369 $ 19 $ 1,353 Beginning balance, January 1, 2018 $ 1,043 $ 158 $ 87 $ 1,288 Charge-offs — — — — Recoveries 5 3 282 290 (Reverse) Provisions (83 ) 208 (350 ) (225 ) Ending balance, June 30, 2018. $ 965 $ 369 $ 19 $ 1,353 Allowance for loan losses: Ending balance: individually evaluated for impairment. $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 965 $ 369 $ 19 $ 1,353 Loans: Ending balance: individually evaluated for impairment. . $ 2,372 $ 1,261 $ 445 $ 4,078 Ending balance: collectively evaluated for impairment $ 81,867 $ 12,831 $ 2,551 $ 97,249 Allowance for loan losses and recorded investment in loans for the three and six months ended June 30, 2017 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Allowance for loan losses: Beginning balance, April 1, 2017 $ 1,048 $ 97 $ 50 $ 1,195 Charge-offs (45 ) (62 ) — (107 ) Recoveries 3 — 131 134 Provisions 29 99 (128 ) — Ending balance, June 30, 2017 $ 1,035 $ 134 $ 53 $ 1,222 Beginning balance, January 1, 2017 $ 973 $ 158 $ 87 $ 1,218 Charge-offs (49 ) (81 ) — (130 ) Recoveries 3 — 131 134 Provisions 108 57 (165 ) — Ending balance, June 30, 2017. $ 1,035 $ 134 $ 53 $ 1,222 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 38 $ — $ — $ 38 Ending balance: collectively evaluated for impairment $ 997 $ 134 $ 53 $ 1,184 Loans: Ending balance: individually evaluated for impairment. . $ 3,042 $ 1,091 $ 1,201 $ 5,334 Ending balance: collectively evaluated for impairment $ 72,436 $ 8,647 $ 2,680 $ 83,763 Allowance for loan losses and recorded investment in loans for the year ended December 31, 2017 is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Allowance for loan losses: Beginning balance $ 973 $ 158 $ 87 $ 1,218 Charge-offs (85 ) (81 ) — (166 ) Recoveries 105 — 131 236 Provisions 50 (36 ) (131 ) — Ending balance $ 1,043 $ 158 $ 87 $ 1,288 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 30 $ — $ — $ 30 Ending balance: collectively evaluated for impairment $ 1,013 $ 158 $ 87 $ 1,258 Loans: Ending balance: individually evaluated for impairment . . $ 2,179 $ 1,154 $ 1,094 $ 4,427 Ending balance: collectively evaluated for impairment $ 77,225 $ 12,029 $ 2,146 $ 91,400
Schedule of credit risk classification	Credit risk profile by internally assigned classification as of June 30, 2018 (unaudited) is as follows: (Dollars in thousands) Residential Non- Construction Total Non-classified $ 80,204 $ 11,998 $ 2,321 $ 94,523 Special mention 2,009 1,108 242 3,359 Substandard 2,026 986 433 3,445 Doubtful — — — — Loss — — — — Total $ 84,239 $ 14,092 $ 2,996 $ 101,327 Credit risk profile by internally assigned classification as of December 31, 2017 is as follows: (Dollars in thousands) Residential Non-residential Construction Total Non-classified $ 74,808 $ 11,181 $ 1,910 $ 87,899 Special mention 2,060 — 236 2,296 Substandard 2,536 2,002 1,094 5,632 Doubtful — — — — Loss — — — — Total. $ 79,404 $ 13,183 $ 3,240 $ 95,827
Schedule of impaired loans	Impaired loans as of the three and for the six months ended June 30, 2018 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non-residential Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 2,372 $ 1,261 $ 445 $ 4,078 Unpaid principal balance 2,779 1,398 647 4,824 Average recorded investment, for the three months ended June 30, 2018 2,510 1,172 640 4,322 Interest income recognized 37 134 11 182 Interest income foregone 10 — — 10 Average recorded investment, for the six months ended June 30, 2018 2,562 1,156 850 4,568 Interest income recognized 77 148 19 244 Interest income foregone 20 — — 20 With an allowance recorded: Recorded investment — — — — Unpaid principal balance — — — — Related allowance — — — — Average recorded investment, for the three months ended June 30, 2018 — — — — Interest income recognized — — — — Interest income foregone — — — — Average recorded investment, for the six months ended June 30, 2018 — — — — Interest income recognized — — — — Interest income foregone — — — — Total Recorded investment 2,372 1,261 445 4,078 Unpaid principal balance 2,779 1,398 647 4,824 Related allowance — — — — Average recorded investment, for the three months ended June 30, 2018 2,510 1,172 640 4,322 Interest income recognized 37 134 11 182 Interest income foregone 10 — — 10 Average recorded investment, for the six months ended June 30, 2018 2,562 1,156 850 4,568 Interest income recognized 77 148 19 244 Interest income foregone 20 — — 20 Impaired loans as of the three and for the six months ended June 30, 2017 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 2,679 $ 1,091 $ 1,201 $ 4,971 Unpaid principal balance 3,667 1,670 2,240 7,577 Average recorded investment, for the three months ended June 30, 2017 2,724 756 816 4,296 Interest income recognized 37 8 13 58 Interest income foregone 9 — 12 21 Average recorded investment, for the six months ended June 30, 2017 2,578 1,054 1,278 4,910 Interest income recognized 103 23 25 151 Interest income foregone 16 — 30 46 With an allowance recorded: Recorded investment 363 — — 363 Unpaid principal balance 363 — — 363 Related allowance 38 — — 38 Average recorded investment, for the three months ended June 30, 2017 363 — — 363 Interest income recognized 9 — — 9 Interest income foregone — — — — Average recorded investment, for the six months ended June 30, 2017 348 — — 348 Interest income recognized 9 — — 9 Interest income foregone — — — — Total Recorded investment 3,042 1,091 1,201 5,334 Unpaid principal balance 4,030 1,670 2,240 7,940 Related allowance 38 — — 38 Average recorded investment, for the three months ended June 30, 2017 3,087 756 816 4,659 Interest income recognized 46 8 13 67 Interest income foregone 9 — 12 21 Average recorded investment, for the six months ended June 30, 2017 2,926 1,054 1,278 5,258 Interest income recognized 112 23 25 160 Interest income foregone 16 — 30 46 Impaired loans as of and for the year ended December 31, 2017 is as follows: (Dollars in thousands) Residential Real Estate, HELOC, Commercial, and Non- Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 1,823 $ 1,154 $ 1,094 $ 4,071 Unpaid principal balance 2,421 2,026 2,137 6,584 Average recorded investment, for the twelve months ended December 31, 2017 2,511 1,468 1,310 5,289 Interest income recognized 179 92 41 312 Interest income foregone 8 4 53 65 With an allowance recorded: Recorded investment 356 — — 356 Unpaid principal balance 357 — — 357 Related allowance 30 — — 30 Average recorded investment, for the twelve months ended December 31, 2017 354 — — 354 Interest income recognized 57 — — 57 Interest income foregone — — — — Total Recorded investment 2,179 1,154 1,094 4,427 Unpaid principal balance 2,778 2,026 2,137 6,941 Related allowance 30 — — 30 Average recorded investment, for the twelve months ended December 31, 2017 2,865 1,468 1,310 5,643 Interest income recognized 236 92 41 369 Interest income foregone 8 4 53 65
Schedule of aged analysis of past due loans	An aged analysis of past due loans as of June 30, 2018 (unaudited) are as follows: (Dollars in thousands) Residential Non- Construction Total Current $ 83,624 $ 14,092 $ 2,996 $ 100,712 30 - 59 days past due 144 — — 144 60 - 89 days past due 7 — — 7 Greater than 90 day past due and still accruing — — — — Greater than 90 days past due 464 — — 464 Total past due 615 — — 615 Total $ 84,239 $ 14,092 $ 2,996 $ 101,327 An aged analysis of past due loans as of December 31, 2017 are as follows: (Dollars in thousands) Residential Real Estate, HELOC, Commercial, and Non- Real Estate Construction and Land Total Current $ 78,710 $ 13,183 $ 2,609 $ 94,502 30 - 59 days past due 115 — — 115 60 - 89 days past due — — — — Greater than 90 day past due and still accruing 341 — — 341 Greater than 90 days past due 238 — 631 869 Total past due 694 — 631 1,325 Total $ 79,404 $ 13,183 $ 3.240 $ 95,827
Schedule of non-performing loans	Non-performing loans as of June 30, 2018 (unaudited) are as follows: (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 265 $ — $ 11 $ 276 Other non-accrual loans 531 — — 531 Total non-accrual loans 796 — 11 807 Accruing troubled debt restructured loans 1,191 1,261 — 2,452 Total $ 1,987 $ 1,261 $ 11 $ 3,259 Non-performing loans as of December 31, 2017 are as follows: (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 427 $ — $ 649 $ 1,076 Other non-accrual loans 430 74 — 504 Total non-accrual loans 857 74 649 1,580 Accruing troubled debt restructured loans 1,059 1,153 — 2,212 Total $ 1,916 $ 1,227 $ 649 $ 3,792

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2018
Other Real Estate [Abstract]
Schedule of activity in residential other real estate owned	June 30, 2018 December 31, 2017 (Dollars in thousands) (unaudited) Beginning balance $ — $ — Additions — — Transfers from Loans — — Transfers to Loans — — Sales — — Provisions — — Ending balance $ — $ —

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2018
Deposits [Abstract]
Schedule of deposit liabilities	June 30, 2018 December 31, 2017 (Dollars in thousands) (unaudited) Non-interest-bearing deposits $ 1,830 $ 1,542 NOW and Money market 20,402 21,481 Savings 14,595 14,718 Certificates of deposit 61,239 65,567 Total deposits $ 98,066 $ 103,308
Schedule maturities of certificates of deposit	(Dollars in thousands) 2018 $ 12,532 2019 25,619 2020 9,522 2021 8,116 2022 3,995 2023 1,455 Total $ 61,239

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of deferred tax assets and liabilities	June 30, December 31, (Dollars in thousands) (unaudited) Deferred tax assets: Deferred loan fees and costs, net $ 8 $ 9 Allowance for credit losses 372 355 Deferred compensation 40 44 Severance payments 44 60 Restricted stock awards 37 14 Allowance for ground rents 39 39 Allowance for delinquent mortgage interest 92 101 Contribution carryforward 2 2 Net operating loss carryforward 1,271 1,354 Unrealized loss on available-for-sale securities — — Total deferred tax assets 1,905 1,978 Valuation allowance (1,806 ) (1,883 ) Deferred tax assets after valuation allowance 99 95 Deferred tax liabilities: Depreciation 99 95 ESOP — — Total deferred tax liabilities 99 95 Net deferred tax assets $ — $ —
Schedule of provision for income taxes	June 30, 2018 June 30, 2017 (Dollars in thousands) (unaudited) (unaudited) Tax expense (benefit): Current federal and state $ — $ — Deferred tax — — Total $ — $ —
Schedule of valuation allowance for deferred taxes	(Dollars in thousands) Valuation Balance of January 1, 2017 $ (2,608 ) Expiration of capital loss carryforwards — Decrease in valuation allowance 725 Balance of December 31, 2017 $ (1,883 ) Expiration of capital loss carryforwards — Decrease in valuation allowance 77 Balance of June 30, 2018 $ (1,806 )

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
Share-based Compensation [Abstract]
Schedule of changes in the nonvested shares	Weighted-Average Grant-Date Shares Fair Value Nonvested at January 1, 2017 2,500 $ 13.40 Granted 50,000 15.29 Vested 1,250 13.40 Forfeited - - Nonvested at December 31, 2017 51,250 $ 15.24 Nonvested at January 1, 2018 51,250 $ 15.24 Granted - - Vested - - Forfeited - - Nonvested at June 30, 2018 51,250 $ 15.24 Fair Value of shares vested $ 19,688
Schedule of nonvested restricted stock awards	Year Ending December 31, Number of 2018 11,250 2019 10,000 2020 10,000 2021 10,000 2022 10,000 51,250

REGULATORY CAPITAL REQUIREMEN28

REGULATORY CAPITAL REQUIREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Regulatory Capital Requirements [Abstract]
Schedule of Bank's capital position based	Actual Minimum Requirements for To be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2018: Total risk-based capital (to risk-weighted assets) $ 25,647 31.49 % $ 8,043 9.875 % $ 8,144 10.00 % Tier I capital (to risk-weighted assets) 24,625 30.24 6,413 7.875 6,515 8.00 Tier I capital (to adjusted total assets) 24,625 16.88 5,835 4.000 7,294 5.00 Common equity tier 1 capital (to risk weighted assets) 24,625 30.24 5,191 6.375 5,293 6.50 As of December 31, 2017: Total risk-based capital (to risk-weighted assets) $ 24,934 32.58 % $ 7,078 9.25 % $ 7,653 10.00 % Tier I capital (to risk-weighted assets) 23,974 31.33 5,548 7.25 6,122 8.00 Tier I capital (to adjusted total assets) 23,974 16.55 5,795 4.00 7,243 5.00 Common equity tier 1 capital (to risk weighted assets) 23,974 31.33 4,400 5.75 4,974 6.50
Schedule of reconciliation of Bank's GAAP capital	June 30, December 31, (Dollars in thousands) (unaudited) Total Company equity capital $ 30,534 $ 30,360 LESS: Parent Only Equity 6,463 6,615 LESS: Net unrealized (losses) gains on available-for-sale securities (554 ) (229 ) Tier 1 Capital $ 24,625 $ 23,974 Tier 1 Capital $ 24,625 $ 23,974 Allowance for loan and lease losses includible in Tier 2 capital 1,022 960 Total risk-based capital $ 25,647 $ 24,934

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Schedule of components of other comprehensive gains and losses	(Dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2018 (unaudited) Net unrealized losses on securities available-for-sale $ (325 ) $ - $ (325 ) Other Comprehensive Loss $ (325 ) $ - $ (325 ) Six Months Ended June 30, 2017 (unaudited) Net unrealized gains on securities available-for-sale $ 86 $ — $ 86 Other Comprehensive Gain $ 86 $ — $ 86
Schedule of components of accumulated other comprehensive income, net of tax	(Dollars in thousands) Securities Accumulated Other Six Months Ended June 30, 2018 (unaudited) Balance at Beginning of Year $ (229 ) $ (229 ) Other comprehensive loss (325 ) (325 ) Balance at End of Period $ (554 ) $ (554 ) (Dollars in thousands) Securities Accumulated Other Six Months Ended June 30, 2017 (unaudited) Balance at Beginning of Year $ (139 ) $ (139 ) Other comprehensive gain 128 128 Balance at End of Period $ (11 ) $ (11 )
Schedule of reclassified out of accumulated other comprehensive income	Details about Accumulated Other Comprehensive Income Amount Reclassified Affected Line Item in the Statement June 30, June 30, (Dollars in thousands) (unaudited) Redemption of Investment Securities Available-for-Sale $ — $ (42 ) Realized gain on redemption of investment securities - - Provision for Income Tax $ — $ (42 ) Net of Tax Total Reclassifications for the Period $ — $ (42 ) Net of Tax

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of basic and diluted weighted average shares outstanding	Three Months Ended June 30, 2018 (unaudited) (Dollars in thousands, except per share amount) Income Shares Per Share Basic EPS Net income available to shareholders $ 367 1,809,833 $ 0.20 Diluted EPS Effect of dilutive shares - - - Net income available to shareholders $ 367 1,809,833 $ 0.20 Six Months Ended June 30, 2018 (unaudited) (Dollars in thousands, except per share amount) Income Shares Per Share Basic EPS Net income available to shareholders $ 345 1,808,479 $ 0.19 Diluted EPS Effect of dilutive shares — — — Net income available to shareholders $ 345 1,808,479 $ 0.19 Three Months Ended June 30, 2017 (unaudited) (Dollars in thousands, except per share amount) Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ 23 1,748,729 $ 0.02 Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ 23 1,748,729 $ 0.02 Six Months Ended June 30, 2017 (unaudited) (Dollars in thousands, except per share amount) Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ (8 ) 1,751,116 $ (0.00 ) Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ (8 ) 1,751,116 $ (0.00 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value on a recurring basis	Fair Value Measurements at June 30, 2018 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Investments (available-for-sale) : Obligations of U.S. Government Agencies $ 900 $ — $ 900 $ — $ — $ — U.S. Municipal securities 484 — 484 — — — Mortgage-backed securities 13,683 — 13,683 — — — Total assets measured at fair value on a recurring basis $ 15,067 $ — $ 15,067 $ — $ — $ — Fair Value Measurements at December 31, 2017 Using: Description (Dollars in thousands) Fair Value 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Investments (available-for-sale) : Obligations of U.S. Government Agencies $ 945 $ — $ 945 $ — $ — $ — Municipal securities 497 — 497 — — — Mortgage-backed securities 15,163 — 15,163 — — — Total assets measured at fair value on a recurring basis $ 16,605 $ — $ 16,605 $ — $ — $ —
Schedule of fair value on a nonrecurring basis	Fair Value Measurements at June 30, 2018 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Impaired loans: Residential $ 2,372 $ — $ 2,372 $ — $ — $ — Commercial 1,261 — 1,261 — — — Land 445 — 445 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 4,078 $ — $ 4,078 $ — $ — $ — Fair Value Measurements at December 31, 2017 Using: Description (Dollars in thousands) Fair Value December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading Gains and (Losses) Total Changes in Fair Values Included in Period Earnings Impaired loans: Residential $ 2,149 $ — $ 1,822 $ 327 $ — $ — Commercial 1,154 — 1,154 — — — Land 1,094 — 1,094 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 4,397 $ — $ 4,070 $ 327 $ — $ —
Schedule of estimated fair values of financial instruments	(Dollars in thousands) Carrying Value June 30, 2018 (unaudited) Fair Value June 30, (unaudited) Quoted Prices In Active Markets For (Level 1) Other Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 2,576 $ 2,576 $ — $ 2,576 $ — Other interest bearing deposits in other banks 6,252 6,252 — 6,252 — Investment securities 32,189 31,331 — 31,331 — Federal Home Loan Bank stock 1,025 1,025 — 1,025 — Loans, net 98,935 98,561 — 4,078 94,483 Bank owned life insurance 4,634 4,634 — 4,634 — Accrued interest receivable 399 399 — 399 — LIABILITIES Deposits $ 98,066 $ 97,037 $ — $ — $ 97,037 FHLB advances 21,000 20,964 — — 20,964 (Dollars in thousands) Carrying Value December 31, 2017 Fair Value December 31, Quoted Prices In Active Markets For (Level 1) Other Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 6,603 $ 6,603 $ — $ 6,603 $ — Other interest bearing deposits in other banks 2,607 2,607 — 2,607 — Investment securities 34,015 33,613 — 33,613 — Federal Home Loan Bank stock 754 754 — 754 — Loans, net 93,765 94,009 — 4,070 89,939 Bank owned life insurance 4,574 4,574 — 4,574 — Accrued interest receivable 394 394 — 394 — LIABILITIES Deposits $ 103,308 $ 99,719 $ — $ — $ 99,719 FHLB advances 13,000 12,978 — — 12,978

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)	1 Months Ended	6 Months Ended
	Dec. 29, 2014	Jun. 30, 2018	Dec. 31, 2017
Summary Of Significant Accounting Policies [Line Items]
Number of shares sold	2,116,000
Gross offering proceeds	$ 21,160,000
Cost of conversion and issuing and selling capital stock		$ 995,000
Percentage of land fee		6.00%
Ground rents		$ 813,000	$ 822,000
Ground rent delinquent year		3 years
Amount of ground rents		$ 143,000	141,000
Percentage of reserve created against delinquent ground lease		100.00%
Minimum
Summary Of Significant Accounting Policies [Line Items]
Percentage of statutory redemption rate		6.00%
Ground rents		$ 600	600
Maximum
Summary Of Significant Accounting Policies [Line Items]
Percentage of statutory redemption rate		12.00%
Ground rents		$ 3,000	$ 3,000

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1)	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Line Items]
Property plant and equipment, depreciation method	straight-line method
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Useful lives	five to ten years
Software, hardware, and data handling equipment
Property, Plant and Equipment [Line Items]
Useful lives	three to five years

IMPACT OF RECENT ACCOUNTING P34

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textuals)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Federal statutory tax rate	21.00%	35.00%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 15,621	$ 16,833
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(554)	(228)
Estimated Fair Value	15,067	16,605
U.S. Government securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,000	1,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(100)	(55)
Estimated Fair Value	900	945
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	490	499
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6)	(2)
Estimated Fair Value	484	497
Mortgage backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,131	15,334
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(448)	(171)
Estimated Fair Value	$ 13,683	$ 15,163

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 17,122	$ 17,410
Gross Unrealized Gains	51	106
Gross Unrealized Losses	(909)	(508)
EstimatedFair Value	16,264	17,008
U.S. Government securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	12,500	12,500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(743)	(424)
EstimatedFair Value	11,757	12,076
Mortgage backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,622	4,910
Gross Unrealized Gains	51	106
Gross Unrealized Losses	(166)	(84)
EstimatedFair Value	$ 4,507	$ 4,932

INVESTMENT SECURITIES (Detail37

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt and Equity Securities, FV-NI [Line Items]
Less than 12 Months : Fair Value	$ 13,054	$ 14,927
Less than 12 Months : Unrealized Losses	(376)	(132)
12 Months or More : Fair Value	16,327	16,533
12 Months or More : Unrealized Losses	(1,087)	(604)
Total : Fair Value	29,381	31,460
Total : Unrealized Losses	(1,463)	(736)
Mortgage backed securities
Debt and Equity Securities, FV-NI [Line Items]
Less than 12 Months : Fair Value	12,088	13,443
Less than 12 Months : Unrealized Losses	(342)	(117)
12 Months or More : Fair Value	4,152	4,499
12 Months or More : Unrealized Losses	(272)	(138)
Total : Fair Value	16,240	17,942
Total : Unrealized Losses	(614)	(255)
Municipal securities
Debt and Equity Securities, FV-NI [Line Items]
Less than 12 Months : Fair Value	0	497
Less than 12 Months : Unrealized Losses	0	(2)
12 Months or More : Fair Value	484	0
12 Months or More : Unrealized Losses	(6)	0
Total : Fair Value	484	497
Total : Unrealized Losses	(6)	(2)
U.S. Government securities
Debt and Equity Securities, FV-NI [Line Items]
Less than 12 Months : Fair Value	966	987
Less than 12 Months : Unrealized Losses	(34)	(13)
12 Months or More : Fair Value	11,691	12,034
12 Months or More : Unrealized Losses	(809)	(466)
Total : Fair Value	12,657	13,021
Total : Unrealized Losses	$ (843)	$ (479)

INVESTMENT SECURITIES (Detail38

INVESTMENT SECURITIES (Details 3) $ in Thousands	Jun. 30, 2018USD ($)
Amortized Cost
Due over one year through five years	$ 1,000
Due over five years through ten years	11,000
Due after ten years	1,990
Mortgage-backed securities	18,753
Total - Amortized Cost	32,743
Fair Value
Due over one year through five years	966
Due over five years through ten years	10,327
Due after ten years	1,848
Mortgage-backed securities	18,190
Total - Fair Value	$ 31,331

INVESTMENT SECURITIES (Detail T

INVESTMENT SECURITIES (Detail Textuals) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Gains on sale of investment securities	$ 26,000	$ 42,000
Proceeds from sales of available for sale securities		338,000
Realized gains of available for sale securities		8,000
Proceeds from sales of held to maturity securities		729,000
Realized gains held to maturity securities		$ 34,000

LOANS RECEIVABLE (Details)

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 101,327		$ 95,827
Net (discount) premium on purchased loans	0		1
Unamortized net deferred costs	46		41
Undisbursed portion of construction loans	(1,011)		(741)
Unearned net loan origination fees	(74)		(75)
Less allowance for loan losses	(1,353)	$ (1,294)	(1,288)	$ (1,222)	$ (1,195)	$ (1,218)
Loans receivable, net	98,935		93,765
Real estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Total	78,629		75,509
Real estate | One-to four-family
Loans and Leases Receivable Disclosure [Line Items]
Total	77,407		74,266
Real estate | Multi-family
Loans and Leases Receivable Disclosure [Line Items]
Total	1,222		1,243
Real estate | Non-residential
Loans and Leases Receivable Disclosure [Line Items]
Total	14,092		13,183
Less allowance for loan losses	(369)	(384)	(158)	(134)	(97)	(158)
Real estate | Construction and land loans
Loans and Leases Receivable Disclosure [Line Items]
Total	2,996		3,240
Less allowance for loan losses	(19)	$ (21)	(87)	$ (53)	$ (50)	$ (87)
Real estate | Home equity line of credit ("HELOC")
Loans and Leases Receivable Disclosure [Line Items]
Total	3,411		3,471
Commercial loans
Loans and Leases Receivable Disclosure [Line Items]
Total	2,135		296
Loans to depositors, secured by savings
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 64		$ 128

LOANS RECEIVABLE (Details 1)

LOANS RECEIVABLE (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Allowance for loan losses:
Beginning balance	$ 1,294	$ 1,195	$ 1,288	$ 1,218	$ 1,218
Charge-offs	0	(107)	0	(130)	(166)
Recoveries	284	134	290	134	236
(Reverse) Provisions	(225)	0	(225)	0	0
Ending balance	1,353	1,222	1,353	1,222	1,288
Allowance for Loan Losses
Ending balance: individually evaluated for impairment	0	38	0	38	30
Ending balance: collectively evaluated for impairment	1,353	1,184	1,353	1,184	1,258
Loans:
Ending balance: individually evaluated for impairment	4,078	5,334	4,078	5,334	4,427
Ending balance: collectively evaluated for impairment	97,249	83,763	97,249	83,763	91,400
Residential Real Estate, HELOC, Commercial, and Consumer
Allowance for loan losses:
Beginning balance	889	1,048	1,043	973	973
Charge-offs	0	(45)	0	(49)	(85)
Recoveries	0	3	5	3	105
(Reverse) Provisions	76	29	(83)	108	50
Ending balance	965	1,035	965	1,035	1,043
Allowance for Loan Losses
Ending balance: individually evaluated for impairment	0	38	0	38	30
Ending balance: collectively evaluated for impairment	965	997	965	997	1,013
Loans:
Ending balance: individually evaluated for impairment	2,372	3,042	2,372	3,042	2,179
Ending balance: collectively evaluated for impairment	81,867	72,436	81,867	72,436	77,225
Real estate | Non-residential
Allowance for loan losses:
Beginning balance	384	97	158	158	158
Charge-offs	0	(62)	0	(81)	(81)
Recoveries	2	0	3	0	0
(Reverse) Provisions	(17)	99	208	57	(36)
Ending balance	369	134	369	134	158
Allowance for Loan Losses
Ending balance: individually evaluated for impairment	0	0	0	0	0
Ending balance: collectively evaluated for impairment	369	134	369	134	158
Loans:
Ending balance: individually evaluated for impairment	1,261	1,091	1,261	1,091	1,154
Ending balance: collectively evaluated for impairment	12,831	8,647	12,831	8,647	12,029
Real estate | Construction and Land
Allowance for loan losses:
Beginning balance	21	50	87	87	87
Charge-offs	0	0	0	0	0
Recoveries	282	131	282	131	131
(Reverse) Provisions	(284)	(128)	(350)	(165)	(131)
Ending balance	19	53	19	53	87
Allowance for Loan Losses
Ending balance: individually evaluated for impairment	0	0	0	0	0
Ending balance: collectively evaluated for impairment	19	53	19	53	87
Loans:
Ending balance: individually evaluated for impairment	445	1,201	445	1,201	1,094
Ending balance: collectively evaluated for impairment	$ 2,551	$ 2,680	$ 2,551	$ 2,680	$ 2,146

LOANS RECEIVABLE (Details 2)

LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Total	$ 101,327	$ 95,827
Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	94,523	87,899
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	3,359	2,296
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	3,445	5,632
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Residential Real Estate, HELOC, Commercial, and Consumer
Financing Receivable, Recorded Investment [Line Items]
Total	84,239	79,404
Residential Real Estate, HELOC, Commercial, and Consumer | Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	80,204	74,808
Residential Real Estate, HELOC, Commercial, and Consumer | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	2,009	2,060
Residential Real Estate, HELOC, Commercial, and Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	2,026	2,536
Residential Real Estate, HELOC, Commercial, and Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Residential Real Estate, HELOC, Commercial, and Consumer | Loss
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Real estate | Non-residential
Financing Receivable, Recorded Investment [Line Items]
Total	14,092	13,183
Real estate | Non-residential | Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	11,998	11,181
Real estate | Non-residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,108	0
Real estate | Non-residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	986	2,002
Real estate | Non-residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Real estate | Non-residential | Loss
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Real estate | Construction and land loans
Financing Receivable, Recorded Investment [Line Items]
Total	2,996	3,240
Real estate | Construction and land loans | Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	2,321	1,910
Real estate | Construction and land loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	242	236
Real estate | Construction and land loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	433	1,094
Real estate | Construction and land loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Real estate | Construction and land loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Total	$ 0	$ 0

LOANS RECEIVABLE (Details 3)

LOANS RECEIVABLE (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
With no related allowance recorded:
Recorded investment	$ 4,078	$ 4,971	$ 4,078	$ 4,971	$ 4,071
Unpaid principal balance	4,824	7,577	4,824	7,577	6,584
Average recorded investment	4,322	4,296	4,568	4,910	5,289
Interest income recognized	182	58	244	151	312
Interest income foregone	10	21	20	46	65
With an allowance recorded:
Recorded investment	0	363	0	363	356
Unpaid principal balance	0	363	0	363	357
Related allowance	0	38	0	38	30
Average recorded investment	0	363	0	348	354
Interest income recognized	0	9	0	9	57
Interest income foregone	0	0	0	0	0
Total
Recorded investment	4,078	5,334	4,078	5,334	4,427
Unpaid principal balance	4,824	7,940	4,824	7,940	6,941
Related allowance	0	38	0	38	30
Average recorded investment	4,322	4,659	4,568	5,258	5,643
Interest income recognized	182	67	244	160	369
Interest income foregone	10	21	20	46	65
Residential Real Estate, HELOC, Commercial, and Consumer
With no related allowance recorded:
Recorded investment	2,372	2,679	2,372	2,679	1,823
Unpaid principal balance	2,779	3,667	2,779	3,667	2,421
Average recorded investment	2,510	2,724	2,562	2,578	2,511
Interest income recognized	37	37	77	103	179
Interest income foregone	10	9	20	16	8
With an allowance recorded:
Recorded investment	0	363	0	363	356
Unpaid principal balance	0	363	0	363	357
Related allowance	0	38	0	38	30
Average recorded investment	0	363	0	348	354
Interest income recognized	0	9	0	9	57
Interest income foregone	0	0	0	0	0
Total
Recorded investment	2,372	3,042	2,372	3,042	2,179
Unpaid principal balance	2,779	4,030	2,779	4,030	2,778
Related allowance	0	38	0	38	30
Average recorded investment	2,510	3,087	2,562	2,926	2,865
Interest income recognized	37	46	77	112	236
Interest income foregone	10	9	20	16	8
Real estate | Non-residential
With no related allowance recorded:
Recorded investment	1,261	1,091	1,261	1,091	1,154
Unpaid principal balance	1,398	1,670	1,398	1,670	2,026
Average recorded investment	1,172	756	1,156	1,054	1,468
Interest income recognized	134	8	148	23	92
Interest income foregone	0	0	0	0	4
With an allowance recorded:
Recorded investment	0	0	0	0	0
Unpaid principal balance	0	0	0	0	0
Related allowance	0	0	0	0	0
Average recorded investment	0	0	0	0	0
Interest income recognized	0	0	0	0	0
Interest income foregone	0	0	0	0	0
Total
Recorded investment	1,261	1,091	1,261	1,091	1,154
Unpaid principal balance	1,398	1,670	1,398	1,670	2,026
Related allowance	0	0	0	0	0
Average recorded investment	1,172	756	1,156	1,054	1,468
Interest income recognized	134	8	148	23	92
Interest income foregone	0	0	0	0	4
Real estate | Construction and land loans
With no related allowance recorded:
Recorded investment	445	1,201	445	1,201	1,094
Unpaid principal balance	647	2,240	647	2,240	2,137
Average recorded investment	640	816	850	1,278	1,310
Interest income recognized	11	13	19	25	41
Interest income foregone	0	12	0	30	53
With an allowance recorded:
Recorded investment	0	0	0	0	0
Unpaid principal balance	0	0	0	0	0
Related allowance	0	0	0	0	0
Average recorded investment	0	0	0	0	0
Interest income recognized	0	0	0	0	0
Interest income foregone	0	0	0	0	0
Total
Recorded investment	445	1,201	445	1,201	1,094
Unpaid principal balance	647	2,240	647	2,240	2,137
Related allowance	0	0	0	0	0
Average recorded investment	640	816	850	1,278	1,310
Interest income recognized	11	13	19	25	41
Interest income foregone	$ 0	$ 12	$ 0	$ 30	$ 53

LOANS RECEIVABLE (Details 4)

LOANS RECEIVABLE (Details 4) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 100,712	$ 94,502
Greater than 90 day past due and still accruing	0	341
Total past due	615	1,325
Total	101,327	95,827
30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	144	115
60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	7	0
Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	464	869
Residential Real Estate, HELOC, Commercial, and Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	83,624	78,710
Greater than 90 day past due and still accruing	0	341
Total past due	615	694
Total	84,239	79,404
Residential Real Estate, HELOC, Commercial, and Consumer | 30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	144	115
Residential Real Estate, HELOC, Commercial, and Consumer | 60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	7	0
Residential Real Estate, HELOC, Commercial, and Consumer | Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	464	238
Real estate | Non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	14,092	13,183
Greater than 90 day past due and still accruing	0	0
Total past due	0	0
Total	14,092	13,183
Real estate | Non-residential | 30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Real estate | Non-residential | 60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Real estate | Non-residential | Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Real estate | Construction and land loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,996	2,609
Greater than 90 day past due and still accruing	0	0
Total past due	0	631
Total	2,996	3,240
Real estate | Construction and land loans | 30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Real estate | Construction and land loans | 60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Real estate | Construction and land loans | Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 0	$ 631

LOANS RECEIVABLE (Details 5)

LOANS RECEIVABLE (Details 5) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	$ 276	$ 1,076
Other non-accrual loans	531	504
Total non-accrual loans	807	1,580
Accruing troubled debt restructured loans	2,452	2,212
Total	3,259	3,792
Residential Real Estate, HELOC, Commercial, and Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	265	427
Other non-accrual loans	531	430
Total non-accrual loans	796	857
Accruing troubled debt restructured loans	1,191	1,059
Total	1,987	1,916
Real estate | Non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	0	0
Other non-accrual loans	0	74
Total non-accrual loans	0	74
Accruing troubled debt restructured loans	1,261	1,153
Total	1,261	1,227
Real estate | Construction and land loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	11	649
Other non-accrual loans	0	0
Total non-accrual loans	11	649
Accruing troubled debt restructured loans	0	0
Total	$ 11	$ 649

LOANS RECEIVABLE (Detail Textua

LOANS RECEIVABLE (Detail Textuals) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Receivables [Abstract]
Maximum percent of loans to value ratio	80.00%
Percentage of loan secured by certificate of deposits	100.00%
Unallocated reserves	$ 192,000	$ 155,000	$ 216,000
Refinanced existing performing TDR	$ 944,000
Refinance conditions	Rate on the refinance did not change however the term was extended by approximately 3 years
Loans serviced by bank for benefit of other loan	$ 394,000	$ 401,000
Residential real estate property for foreclosure	$ 519,000

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Other Real Estate [Roll Forward]
Beginning balance	$ 0	$ 0	$ 0
Additions	0		0
Transfers from Loans	0		0
Transfers to Loans	0	$ 0	0
Sales	0		0
Provisions	0		0
Ending balance	$ 0		$ 0

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deposit Liabilities Disclosure [Abstract]
Non-interest-bearing deposits	$ 1,830	$ 1,542
NOW and Money market	20,402	21,481
Savings	14,595	14,718
Certificates of deposit	61,239	65,567
Total deposits	$ 98,066	$ 103,308

DEPOSITS (Details 1)

DEPOSITS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deposit Liabilities Disclosure [Abstract]
2,018	$ 12,532
2,019	25,619
2,020	9,522
2,021	8,116
2,022	3,995
2,023	1,455
Total	$ 61,239	$ 65,567

DEPOSITS (Detail Textuals)

DEPOSITS (Detail Textuals) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deposit Liabilities [Line Items]
Time deposits, $250,000 or more	$ 3,224,000	$ 3,165,000
Deposits	98,066	103,308
Executive officers and directors
Deposit Liabilities [Line Items]
Deposits	$ 473,000	$ 330,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred tax assets:
Deferred loan fees and costs, net	$ 8	$ 9
Allowance for credit losses	372	355
Deferred compensation	40	44
Severance payments	44	60
Restricted stock awards	37	14
Allowance for ground rents	39	39
Allowance for delinquent mortgage interest	92	101
Contribution carryforward	2	2
Net operating loss carryforward	1,271	1,354
Unrealized loss on available-for-sale securities	0	0
Total deferred tax assets	1,905	1,978
Valuation allowance	(1,806)	(1,883)
Deferred tax assets after valuation allowance	99	95
Deferred tax liabilities:
Depreciation	99	95
ESOP	0	0
Total deferred tax liabilities	99	95
Net deferred tax assets	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Tax expense (benefit):
Current federal and state			$ 0	$ 0
Deferred tax			0	0
Total	$ 0	$ 0	$ 0	$ 0

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Deferred Tax Assets Valuation Allowance [Roll Forward]
Balance at beginning of period	$ (1,883)
Ending balance	(1,806)	$ (1,883)
Valuation allowance for Capital Loss Carryforwards
Deferred Tax Assets Valuation Allowance [Roll Forward]
Balance at beginning of period	(1,883)	(2,608)
Expiration of capital loss carryforwards	0	0
Increase (Decrease) in valuation allowance	77	725
Ending balance	$ (1,806)	$ (1,883)

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals)	Jun. 30, 2018USD ($)
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 4,400,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 4,800,000

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Shares
Nonvested at the beginning	51,250	2,500
Granted	0	50,000
Vested	0	1,250
Forfeited	0	0
Nonvested at the ending	51,250	51,250
Fair Value of shares vested	$ 19,688
Weighted-Average Grant-Date Fair Value
Nonvested at the beginning	$ 15.24	$ 13.40
Granted	0	15.29
Vested	0	13.40
Forfeited	0	0
Nonvested at the ending	$ 15.24	$ 15.24

STOCK BASED COMPENSATION (Det56

STOCK BASED COMPENSATION (Details 1) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	0	1,250
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	51,250
2018 | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	11,250
2019 | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	10,000
2020 | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	10,000
2021 | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	10,000
2022 | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares	10,000

STOCK BASED COMPENSATION (Det57

STOCK BASED COMPENSATION (Detail Textuals) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued and outstanding	51,250		51,250	2,500
Restricted stock awards expense	$ 84,825	$ 8,161
Expected period to recognize compensation cost	4 years 3 months
2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 643,819
Stock options | 2016 Equity Incentive Plan | Employees, officers and directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued	211,600
Restricted stock | 2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued and outstanding	52,500
Restricted stock | 2016 Equity Incentive Plan | Employees, officers and directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued	84,640

REGULATORY CAPITAL REQUIREMEN58

REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Regulatory Capital Requirements [Abstract]
Total risk-based capital (to risk-weighted assets), Amount	$ 25,647	$ 24,934
Total risk-based capital (to risk-weighted assets), Ratio	31.49%	32.58%
Total risk-based capital (to risk-weighted assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 8,043	$ 7,078
Total risk-based capital (to risk-weighted assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Ratio	9.875%	9.25%
Total risk-based capital (to risk-weighted assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 8,144	$ 7,653
Total risk-based capital (to risk-weighted assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier I capital (to risk-weighted assets), Amount	$ 24,625	$ 23,974
Tier I capital (to risk-weighted assets), Ratio	30.24%	31.33%
Tier I capital (to risk-weighted assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 6,413	$ 5,548
Tier I capital (to risk-weighted assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Ratio	7.875%	7.25%
Tier I capital (to risk-weighted assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 6,515	$ 6,122
Tier I capital (to risk-weighted assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier I capital (to adjusted total assets), Amount	$ 24,625	$ 23,974
Tier I capital (to adjusted total assets), Ratio	16.88%	16.55%
Tier I capital (to adjusted total assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 5,835	$ 5,795
Tier I capital (to adjusted total assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Ratio	4.00%	4.00%
Tier I capital (to adjusted total assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 7,294	$ 7,243
Tier I capital (to adjusted total assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
Common equity tier 1 capital (to risk weighted assets), Amount	$ 24,625	$ 23,974
Common equity tier 1 capital (to risk weighted assets), Ratio	30.24%	31.33%
Common equity tier 1 capital (to risk weighted assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 5,191	$ 4,400
Common equity tier 1 capital (to risk weighted assets), Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions, Ratio	6.375%	5.75%
Common equity tier 1 capital (to risk weighted assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Amount	$ 5,293	$ 4,974
Common equity tier 1 capital (to risk weighted assets), To be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio	6.50%	6.50%

REGULATORY CAPITAL REQUIREMEN59

REGULATORY CAPITAL REQUIREMENTS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Regulatory Capital Requirements [Abstract]
Total Company equity capital	$ 30,534	$ 30,360
LESS: Parent Only Equity	6,463	6,615
LESS: Net unrealized (losses) gains on available-for-sale securities	(554)	(229)
Tier 1 Capital	24,625	23,974
Tier 1 Capital	24,625	23,974
Allowance for loan and lease losses includible in Tier 2 capital	1,022	960
Total risk-based capital	$ 25,647	$ 24,934

OTHER COMPREHENSIVE INCOME (Det

OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net unrealized gains (losses) on securities available-for-sale, Before Tax			$ (325)	$ 86
Net unrealized gains (losses) on securities available-for-sale, Tax Effect	$ 0	$ 0	0	0
Net unrealized gains (losses) on securities available-for-sale, Net of Tax			(325)	86
Other Comprehensive Gain (Loss), Before Tax			(325)	86
Other Comprehensive Gain (Loss), Tax Effect			0	0
Other Comprehensive Gain (Loss), Net of Tax			$ (325)	$ 86

OTHER COMPREHENSIVE INCOME (D61

OTHER COMPREHENSIVE INCOME (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income Loss [Roll Forward]
Balance at Beginning of Year			$ (229)
Other comprehensive (loss) gain	$ (26)	$ 124	(325)	$ 86
Balance at End of Period	(554)		(554)
Securities Available-for-sale
Accumulated Other Comprehensive Income Loss [Roll Forward]
Balance at Beginning of Year			(229)	(139)
Other comprehensive (loss) gain			(325)	128
Balance at End of Period	(554)	(11)	(554)	(11)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Roll Forward]
Balance at Beginning of Year			(229)	(139)
Other comprehensive (loss) gain			(325)	128
Balance at End of Period	$ (554)	$ (11)	$ (554)	$ (11)

OTHER COMPREHENSIVE INCOME (D62

OTHER COMPREHENSIVE INCOME (Details 2) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gain on redemption of investment securities	$ 26		$ 42
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of Tax		$ 0	(42)
Reclassification out of Accumulated Other Comprehensive Income | Redemption of Investment Securities Available-for-sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gain on redemption of investment securities		0	(42)
Provision for Income Tax		0	0
Net of Tax		$ 0	$ (42)

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic EPS
Net income (loss) available to shareholders (Numerator)	$ 367	$ 23	$ 345	$ (8)
Shares (Denominator)	1,809,833	1,748,729	1,808,479	1,751,116
Per Share Amount	$ 0.2	$ 0.02	$ 0.19	$ 0
Diluted EPS
Effect of dilutive shares, Income (Loss) (Numerator)	$ 0	$ 0	$ 0	$ 0
Effect of dilutive shares, Shares (Denominator)	0	0	0	0
Effect Of Dilutive Shares, Per Share Amount (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Net loss available to shareholders, Income (Loss) (Numerator)	$ 367	$ 23	$ 345	$ (8)
Net loss available to shareholders, Shares (Denominator)	1,809,833	1,748,729	1,808,479	1,751,116
Net loss available to shareholders, Per Share Amount (in dollars per share)	$ 0.2	$ 0.02	$ 0.19	$ 0

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	$ 15,067	$ 16,605
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in Period Earnings	0	0
Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	900	945
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in Period Earnings	0	0
U.S. Municipal securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	484	497
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in Period Earnings	0	0
Mortgage backed securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	13,683	15,163
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in Period Earnings	0	0
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1)
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. Municipal securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Mortgage backed securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Other Observable Inputs (Level 2)
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	15,067	16,605
Recurring basis | Other Observable Inputs (Level 2) | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	900	945
Recurring basis | Other Observable Inputs (Level 2) | U.S. Municipal securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	484	497
Recurring basis | Other Observable Inputs (Level 2) | Mortgage backed securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	13,683	15,163
Recurring basis | Significant Unobservable Inputs (Level 3)
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Municipal securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage backed securities
Investments (available-for-sale) :
Total assets measured at fair value on a recurring basis	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Deta65

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	$ 4,078	$ 4,397
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in period earnings	0	0
Fair value measurements, nonrecurring | Impaired loans - Residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	2,372	2,149
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in period earnings	0	0
Fair value measurements, nonrecurring | Impaired loans - Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	1,261	1,154
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in period earnings	0	0
Fair value measurements, nonrecurring | Impaired loans - Land
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	445	1,094
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in period earnings	0	0
Fair value measurements, nonrecurring | Impaired loans - Construction
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in period earnings	0	0
Fair value measurements, nonrecurring | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Trading Gains and (Losses)	0	0
Total Changes in Fair Values Included in period earnings	0	0
Fair value measurements, nonrecurring | Quoted Prices In Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Impaired loans - Residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Impaired loans - Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Impaired loans - Land
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Impaired loans - Construction
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	4,078	4,070
Fair value measurements, nonrecurring | Other Observable Inputs (Level 2) | Impaired loans - Residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	2,372	1,822
Fair value measurements, nonrecurring | Other Observable Inputs (Level 2) | Impaired loans - Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	1,261	1,154
Fair value measurements, nonrecurring | Other Observable Inputs (Level 2) | Impaired loans - Land
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	445	1,094
Fair value measurements, nonrecurring | Other Observable Inputs (Level 2) | Impaired loans - Construction
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Other Observable Inputs (Level 2) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	327
Fair value measurements, nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans - Residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	327
Fair value measurements, nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans - Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans - Land
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans - Construction
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	0	0
Fair value measurements, nonrecurring | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Deta66

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Quoted Prices In Active Markets for Identical Assets (Level 1)
ASSETS
Cash, interest bearing deposits and federal funds sold	$ 0	$ 0
Other interest bearing deposits in other banks	0	0
Investment securities	0	0
Federal Home Loan Bank stock	0	0
Loans, net	0	0
Bank owned life insurance	0	0
Accrued interest receivable	0	0
LIABILITIES
Deposits	0	0
FHLB advances	0	0
Other Observable Inputs (Level 2)
ASSETS
Cash, interest bearing deposits and federal funds sold	2,576	6,603
Other interest bearing deposits in other banks	6,252	2,607
Investment securities	31,331	33,613
Federal Home Loan Bank stock	1,025	754
Loans, net	4,078	4,070
Bank owned life insurance	4,634	4,574
Accrued interest receivable	399	394
LIABILITIES
Deposits	0	0
FHLB advances	0	0
Significant Unobservable Inputs (Level 3)
ASSETS
Cash, interest bearing deposits and federal funds sold	0	0
Other interest bearing deposits in other banks	0	0
Investment securities	0	0
Federal Home Loan Bank stock	0	0
Loans, net	94,483	89,939
Bank owned life insurance	0	0
Accrued interest receivable	0	0
LIABILITIES
Deposits	97,037	99,719
FHLB advances	20,964	12,978
Carrying Value
ASSETS
Cash, interest bearing deposits and federal funds sold	2,576	6,603
Other interest bearing deposits in other banks	6,252	2,607
Investment securities	32,189	34,015
Federal Home Loan Bank stock	1,025	754
Loans, net	98,935	93,765
Bank owned life insurance	4,634	4,574
Accrued interest receivable	399	394
LIABILITIES
Deposits	98,066	103,308
FHLB advances	21,000	13,000
Fair Value
ASSETS
Cash, interest bearing deposits and federal funds sold	2,576	6,603
Other interest bearing deposits in other banks	6,252	2,607
Investment securities	31,331	33,613
Federal Home Loan Bank stock	1,025	754
Loans, net	98,561	94,009
Bank owned life insurance	4,634	4,574
Accrued interest receivable	399	394
LIABILITIES
Deposits	97,037	99,719
FHLB advances	$ 20,964	$ 12,978

FAIR VALUE MEASUREMENTS (Deta67

FAIR VALUE MEASUREMENTS (Detail Textuals)	6 Months Ended
	Jun. 30, 2018
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (in percent)	3
Contractual rates	5.25%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (in percent)	4
Contractual rates	7.375%