MB Bancorp (MBCQ) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 08, 2017
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		1,890,200
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Cash and due from banks	$ 4,023	$ 5,399
Interest bearing deposits in other banks	4,282	3,868
Total cash and cash equivalents	8,305	9,267
Other interest-bearing deposits in other banks	3,985	7,222
Investment securities available-for-sale - at fair value	15,872	3,698
Investment securities held to maturity - amortized cost	17,746	18,818
Loans, net of unearned fees	87,742	87,248
Less allowance for loan losses	(1,222)	(1,218)
Loans, net	86,520	86,030
Real estate ground rents	828	829
Less allowance for credit losses	(130)	(141)
Ground rents, net	698	688
Federal Home Loan Bank stock, at cost	626	418
Property and equipment - net	3,716	3,677
Deferred income taxes
Bank-owned life insurance	4,479	931
Accrued interest receivable and other assets	505	562
TOTAL ASSETS	142,452	131,311
LIABILITIES:
Deposits	99,326	93,015
Federal Home Loan Bank advances	12,000	7,000
Deferred compensation liability	154	170
Accounts payable and other liabilities	619	802
Total liabilities	112,099	100,987
STOCKHOLDERS' EQUITY:
Common stock .01 par value; authorized 19,000,000 shares; issued and outstanding, 1,890,200 and 1,902,900 shares at June 30, 2017 and December 31, 2016	19	19
Additional paid-in capital	18,048	18,132
Retained earnings - substantially restricted	13,698	13,770
Accumulated other comprehensive income (loss)	(11)	(139)
Unearned ESOP shares	(1,401)	(1,458)
Total stockholders' equity	30,353	30,324
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 142,452	$ 131,311

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parantheticals) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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	1,890,200	1,902,900
Common stock, shares outstanding	1,890,200	1,902,900

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INTEREST INCOME:
Interest and fees on loans	$ 810	$ 939	$ 1,648	$ 1,886
Interest on federal funds sold and other investments	22	35	46	73
Interest and dividends on investment securities	233	181	430	349
Total interest income	1,065	1,155	2,124	2,308
INTEREST EXPENSE:
Interest on deposits	200	197	393	384
Interest on short-term borrowings	21		35
Interest on long term borrowings	2	126	9	252
Total interest expense	223	323	437	636
NET INTEREST INCOME	842	832	1,687	1,672
PROVISION (REVERSAL) FOR LOAN LOSSES		4		(251)
NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR LOAN LOSSES	842	828	1,687	1,923
NON-INTEREST INCOME:
Service charges on deposit accounts	4	2	7	5
Fees and charges on loans	6	9	16	17
Increase in cash surrender value of life insurance	38	12	62	24
Gain on sale of other real estate owned		3		5
Gain on investment securities	26		42
Ground rent fees	10	11	22	24
Other income	12	6	23	36
Total non-interest income	96	43	172	111
NON-INTEREST EXPENSE:
Salaries and employee benefits	494	565	1,036	1,158
Occupancy expenses	102	91	216	208
Furniture and equipment expenses	10	10	19	22
Legal and professional expenses	94	88	175	154
Data processing and other outside services	79	82	154	149
FDIC insurance premiums	9	23	3	45
Advertising and marketing related expenses	2	6	5	14
Provision (reversal) for loss on ground rents	(10)	11	(12)	9
Other expenses	135	145	271	296
Total non-interest expenses	915	1,021	1,867	2,055
INCOME (LOSS) BEFORE INCOME TAXES	23	(150)	(8)	(21)
INCOME TAX EXPENSE		22		150
NET INCOME (LOSS)	$ 23	$ (172)	$ (8)	$ (171)
Basic earnings (loss) per share (in dollars per share)	$ 0.02	$ (0.10)	$ 0	$ (0.09)
Diluted earnings (loss) per share (in dollars per share)	$ 0.02	$ (0.10)	$ 0	$ (0.09)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 23	$ (172)	$ (8)	$ (171)
OTHER COMPREHENSIVE (LOSS) INCOME ON AVAILABLE-FOR-SALE INVESTMENT SECURITIES:
Unrealized gains (losses) arising during the period	150	(6)	128	106
Reclassification of gains included in net income	(26)	(2)	(42)	(27)
Unrealized gains (losses) arising during the period	124	(8)	86	79
Income tax benefits on unrealized gains (losses) arising during the period		3		(31)
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME ON AVAILABLE-FOR-SALE INVESTMENT SECURITIES	124	(5)	86	48
COMPREHENSIVE INCOME (LOSS)	$ 147	$ (177)	$ 78	$ (123)

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, 2015	$ 21	$ 20,158	$ 16,284	$ (1,571)	$ (11)	$ 34,881
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss			(171)			(171)
Net unrealized gains on available- for sale securities, net of taxes of ($31 and $0 for June 30, 2016 and June 30, 2017, respectively)					48	48
Repurchase of common stock	(2)	(2,014)	(744)			(2,760)
Stock-based compensation		10		57		67
BALANCES at Jun. 30, 2016	19	18,154	15,369	(1,514)	37	32,065
BALANCES at Dec. 31, 2016	19	18,132	13,770	(1,458)	(139)	30,324
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss			(8)			(8)
Net unrealized gains on available- for sale securities, net of taxes of ($31 and $0 for June 30, 2016 and June 30, 2017, respectively)					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

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Net unrealized gains on securities available-for-sale, Tax Effect	$ 3		$ (31)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (8)	$ (171)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation expense	64	68
Increase in cash surrender value of life insurance	(48)	(25)
Net amortization/accretion of premiums and discounts	25	(5)
Reversal for loan losses		(251)
(Reversal) provision for ground rent losses	(12)	9
Decrease in deferred income taxes		156
Non-cash compensation under stock-based benefit plan	94	67
Decrease in accrued interest and other assets	57	86
Gain on redemption of investment securities	(42)
Decrease in deferred compensation liability	(16)	(83)
(Decrease) increase in accounts payable and other liabilities	(183)	46
Net cash used in operating activities	(69)	(103)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in other interest bearing deposits in other banks	3,237	7,759
Purchase of available-for-sale investments	(12,835)
Proceeds from calls/repayments of available-for-sale investments	466	6,095
Proceeds from sale of available for sale securities	338
Purchase of held-to-maturity investments	(1,732)	(25,095)
Proceeds from maturity/repayments of held-to-maturity investments	2,806	14,176
Net (increase) decrease in loans	(490)	2,009
Proceeds from sale of ground rents	2	8
Purchase of bank-owned life insurance	(3,500)
Purchase of property, plant and equipment	(103)	(17)
(Purchases) redemption of Federal Home Loan Bank stock	(208)	15
Net cash provided by (used in) investing activities	(12,019)	4,950
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits	6,311	1,857
Federal Home Loan Bank advances	34,000	1,000
Federal Home Loan Bank repayments	(29,000)	(1,000)
Repurchase of common stock	(185)	(2,760)
Net cash provided by (used in) financing activities	11,126	(903)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(962)	3,944
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	9,267	3,721
CASH AND CASH EQUIVALENTS AT END OF YEAR	8,305	7,665
Supplemental cash flow information:
Interest paid	440	636
Income taxes paid
Noncash:
Transfer of other real estate owned to loans

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
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, 2017 and for the three and six months ended June 30, 2017 and 2016 contains all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2017. 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, 2016. The results of operations and cash flows for the three and six months ended June 30, 2017 and 2016 are not necessarily indicative of the results to be expected for the year ended December 31, 2017. 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. 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. TDR loans that are in compliance with their modified terms and that yield a market rate may be removed from the TDR status after a period of one year. Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged 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. 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. 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 December 31, 2016, 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.

IMPACT OF RECENT ACCOUNTING PRO

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	2. IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contract with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update are effective for interim and annual reporting periods beginning after December 15, 2016. I n July 2015, the FASB voted to approve deferring the effective date by one year (i.e., interim and annual reporting periods beginning after December 15, 2017). In January 2016, FASB issues ASU 2016-1, “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, “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.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for us on December 31, 2018 and is not expected to have a significant impact on our financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification”. ASU 2017-09 was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modifications to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature. Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of a change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for: (a) public business entities for reporting periods for which financial statements have not yet been issued, and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuance. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company is currently in the process of evaluating the impact of ASU 2017-09 on its consolidated financial statements, but does not expect the adoption of ASU 2017-09 to have material impact on it consolidated financial statements.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2017
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, 2017 (unaudited) (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available-for-sale: U.S. Government securities $ 1,000 $ – $ (35 ) $ 965 U.S. Municipal securities 1,517 2 (2 ) 1,517 Mortgage-backed securities: 13,366 63 (39 ) 13,390 Total investments available-for-sale $ 15,883 $ 65 $ (76 ) $ 15,872 December 31, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available-for-sale: U.S. Government securities $ 1,000 $ – $ (67 ) $ 933 Mortgage-backed securities: 2,837 10 (82 ) 2,765 Total investments available-for-sale $ 3,837 $ 10 $ (149 ) $ 3,698 The carrying amount and estimated fair market value of investment securities classified as held-to-maturity are summarized as follows: June 30, 2017 (unaudited) (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments held-to-maturity: U.S. Government securities: $ 12,500 $ 3 $ (209 ) $ 12,294 Mortgage backed securities 5,246 135 (61 ) 5,320 Total investments held-to-maturity $ 17,746 $ 138 $ (270 ) $ 17,614 December 31, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments held-to-maturity: U.S. Government securities: $ 12,500 $ — $ (612 ) $ 11,888 Mortgage-backed securities: 6,318 183 (118 ) 6,383 Total U.S. Government securities $ 18,818 $ 183 $ (730 ) $ 18,271 Below are schedules of both available-for-sale and held-to-maturity securities with unrealized losses as of June 30, 2017 (unaudited) and December 31, 2016 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, 2017 (unaudited) and December 31, 2016, 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. June 30, 2017 (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 $ 4,721 $ (99 ) $ – $ – $ 4,721 $ (99 ) U.S. Municipal securities 1,051 (2 ) – – 1,051 (2 ) U.S. Government securities 12,255 (245 ) – – 12,255 (245 ) Total temporarily impaired securities $ 18,027 $ (346 ) $ – $ – $ 18,027 $ (346 ) December 31, 2016 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities $ 5,369 $ (200 ) $ — $ — $ 5,369 $ (200 ) U.S. Government securities 12,821 (679 ) — — 12,821 (679 ) Total temporarily impaired securities $ 18,190 $ (879 ) $ — $ — $ 18,190 $ (879 ) The scheduled maturities of debt securities at June 30, 2017 (unaudited) were as follows: Amortized Cost (in thousands) Fair Value (in thousands) Due over one year through five years $ — $ — Due over five years through ten years 5,009 4,953 Due after ten years 10,008 9,823 Mortgage-backed securities 18,612 18,710 Total $ 33,629 $ 33,486

LOANS RECEIVABLE

LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
LOANS RECEIVABLE	4. LOANS RECEIVABLE Loans receivable consist of the following: June 30, 2017 December 31, 2016 (Dollars in thousands) (unaudited) Secured by real estate: Residential: One-to four-family $ 70,564 $ 71,266 Multi-family 584 2,038 Total 71,148 73,304 Non-residential 9,738 7,021 Construction and land loans 3,881 5,104 Home equity line of credit (“HELOC”) 3,988 3,473 Commercial, Consumer and other loans: Commercial loans 328 — Loans to depositors, secured by savings 14 18 89,097 88,920 Add: Net (discount) premium on purchased loans 7 10 Unamortized net deferred costs 23 16 Less: Undisbursed portion of construction loans (1,318 ) (1,650 ) Unearned net loan origination fees (67 ) (48 ) Less allowance for loan losses (1,222 ) (1,218 ) Loans receivable, net $ 86,520 $ 86,030 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. 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. 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 Unallocated 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 three and six months ended June 30, 2016 (unaudited) is as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Consumer Non- Real Estate Construction and Land Unallocated Total Allowance for loan losses: Beginning balance, April 1, 2016 $ 964 $ 196 $ 146 $ — $ 1,306 Charge-offs (2 ) — (81 ) — (83 ) Recoveries — — — — — Provisions (1 ) (17 ) 22 — 4 Ending balance, June 30, 2016 $ 961 $ 179 $ 87 $ — $ 1,227 Beginning balance, January 1, 2016 $ 960 $ 194 $ 157 $ 250 $ 1,561 Charge-offs (2 ) — (81 ) — (83 ) Recoveries — — — — — Provisions 3 (15 ) 11 (250 ) (251 ) Ending balance, June 30, 2016 $ 961 $ 179 $ 87 $ — $ 1,227 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 45 $ — $ — $ — $ 45 Ending balance: collectively evaluated for impairment $ 916 $ 179 $ 87 $ — $ 1,182 Loans: Ending balance: individually evaluated for impairment. . $ 3,816 $ 1,255 $ 2,411 $ — $ 7,482 Ending balance: collectively evaluated for impairment $ 77,506 $ 6,321 $ 2,205 $ — $ 86,032 Allowance for loan losses and recorded investment in loans for the year ended December 31, 2016 is as follows: (Dollars in thousands) Residential Real Estate, HELOC, Commercial, and Non- Real Estate Construction and Land Unallocated Total Allowance for loan losses: Beginning balance $ 960 $ 194 $ 157 $ 250 $ 1,561 Charge-offs (4 ) — (81 ) — (85 ) Recoveries — — — — — Provisions 17 (36 ) 11 (250 ) (258 ) Ending balance $ 973 $ 158 $ 87 $ — $ 1,218 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 38 $ — $ — — $ 38 Ending balance: collectively evaluated for impairment $ 935 $ 158 $ 87 $ — $ 1,180 Loans: Ending balance: individually evaluated for impairment . . $ 3,772 $ 1,451 $ 2,346 — $ 7,569 Ending balance: collectively evaluated for impairment $ 73,023 $ 5,570 $ 2,758 — $ 81,351 Credit risk profile by internally assigned classification as of June 30, 2017 (unaudited) is as follows: (Dollars in thousands) Residential Non- Construction Total Non-classified $ 69,886 $ 8,647 $ 2,681 $ 81,214 Special mention 2,414 — — 2,414 Substandard 3,178 1,091 1,200 5,469 Doubtful — — — — Loss — — — — Total $ 75,478 $ 9,738 $ 3,881 $ 89,097 Credit risk profile by internally assigned classification as of December 31, 2016 is as follows: (Dollars in thousands) Residential Non-residential Construction Total Non-classified $ 71,147 $ 5,653 $ 2,791 $ 79,591 Special mention 3,005 159 87 3,251 Substandard 2,643 1,209 2,226 6,078 Doubtful — — — — Loss — — — — Total $ 76,795 $ 7,021 $ 5,104 $ 88,920 • Special Mention • Substandard • Doubtful • Loss 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 the three and for the six months ended June 30, 2016 (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 $ 2,619 $ 1,255 $ 2,411 $ 6,285 Unpaid principal balance 2,951 1,535 3,569 8,055 Average recorded investment, for the three months ended June 30, 2016 2,620 1,261 2,472 6,353 Interest income recognized 39 13 41 93 Interest income foregone 7 3 2 12 Average recorded investment, for the six months ended June 30, 2016 2,272 1,321 2,239 5,832 Interest income recognized 71 22 73 166 Interest income foregone 12 7 2 21 With an allowance recorded: Recorded investment 1,197 — — 1,197 Unpaid principal balance 1,197 — — 1,197 Related allowance 45 — — 45 Average recorded investment, for the three months ended June 30, 2016 1,200 — — 1,200 Interest income recognized 15 — — 15 Interest income foregone 1 — — 1 Average recorded investment, for the six months ended June 30, 2016 1,191 — — 1,191 Interest income recognized 23 — — 23 Interest income foregone 1 — — 1 Total Recorded investment 3,816 1,255 2,411 7,482 Unpaid principal balance 4,148 1,535 3,569 9,252 Related allowance 45 — — 45 Average recorded investment, for the three months ended June 30, 2016 3,820 1,261 2,472 7,553 Interest income recognized 54 13 41 108 Interest income foregone 8 3 2 13 Average recorded investment, for the six months ended June 30, 2016 3,463 1,321 2,239 7,023 Interest income recognized 94 22 73 189 Interest income foregone 13 7 2 22 Impaired loans as of and for the year ended December 31, 2016 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 $ 2,633 $ 1,451 $ 2,346 $ 6,430 Unpaid principal balance 2,971 1,665 3,512 8,148 Average recorded investment, for the twelve months ended December 31, 2016 2,522 1,353 2,309 6,184 Interest income recognized 166 45 122 333 Interest income foregone 11 18 7 36 With an allowance recorded: Recorded investment 1,139 — — 1,139 Unpaid principal balance 1,140 — — 1,140 Related allowance 38 — — 38 Average recorded investment, for the twelve months ended December 31, 2016 1,151 — — 1,151 Interest income recognized 792 — — 792 Interest income foregone 50 — — 50 Total Recorded investment 3,772 1,451 2,346 7,569 Unpaid principal balance 4,111 1,665 3,512 9,288 Related allowance 38 — — 38 Average recorded investment, for the twelve months ended December 31, 2016 3,673 1,353 2,309 7,335 Interest income recognized 958 45 122 1,125 Interest income foregone 61 18 7 86 An aged analysis of past due loans as of June 30, 2017 (unaudited) are as follows: (Dollars in thousands) Residential Non- Construction Total Current $ 74,607 $ 9,693 $ 3,160 $ 87,460 30 - 59 days past due 77 — — 77 60 - 89 days past due 4 — — 4 Greater than 90 day past due and still accruing — — — — Greater than 90 days past due 790 45 721 1,556 Total past due 871 45 721 1,637 Total $ 75,478 $ 9,738 $ 3,881 $ 89,097 An aged analysis of past due loans as of December 31, 2016 are as follows: (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Current $ 74,773 $ 6,912 $ 3,312 $ 84,997 30 - 59 days past due 908 — 1,792 2,700 60 - 89 days past due 433 — — 433 Greater than 90 day past due and still accruing — — — — Greater than 90 days past due 681 109 — 790 Total past due 2,022 109 1,792 3,923 Total $ 76,795 $ 7,021 $ 5,104 $ 88,920 Non-performing loans as of June 30, 2017 (unaudited) are as follows: (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 656 $ 913 $ 745 $ 2,314 Other non-accrual loans 726 — — 726 Total non-accrual loans 1,382 913 745 3,040 Accruing troubled debt restructured loans 995 336 — 1,331 Total $ 2,377 $ 1,249 $ 745 $ 4,371 Non-performing loans as of December 31, 2016 are as follows: (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 565 $ 1,020 $ 33 $ 1,618 Other non-accrual loans 541 — — 541 Total non-accrual loans 1,106 1,020 33 2,159 Accruing troubled debt restructured loans 1,172 348 1,760 3,280 Total $ 2,278 $ 1,368 $ 1,793 $ 5,439 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. TDR loans that are in compliance with their modified terms and they yield a market rate may be removed from the TDR status after a period of one year. There were no troubled debt restructurings during the six months ended June 30, 2017 and 2016 (unaudited). There were no troubled debt restructures that subsequently defaulted during the six months ended June 30, 2017 and 2016 (unaudited). Loans serviced by the Bank for the benefit of others totaled $408,000 and $422,000 at June 30, 2017 (unaudited) and December 31, 2016, respectively. Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $207,000 as of June 30, 2017 (unaudited).

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2017
Other Real Estate [Abstract]
OTHER REAL ESTATE OWNED	5. OTHER REAL ESTATE OWNED The balance in other real estate owned at June 30, 2017 (unaudited) and December 31, 2016 was zero. The activity in residential other real estate owned is as follows: June 30, December 31, (Dollars in thousands) (unaudited) Beginning balance $ — $ — Additions — — Transfers from Loans — — Transfers to Loans — — Sales — — Provisions — — Ending balance $ — $ —

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2017
Deposit Liabilities Disclosure [Abstract]
DEPOSITS	6. DEPOSITS Deposits are summarized as follows: June 30, 2017 December 31, (Dollars in thousands) (unaudited) Non-interest-bearing deposits $ 1,338 $ 1,415 NOW and Money market 22,717 21,241 Savings 15,456 13,811 Certificates of deposit 59,815 56,548 Total deposits $ 99,326 $ 93,015 The aggregate amount of time deposits in denominations of $250,000 or more as of June 30, 2017 (unaudited) and December 31, 2016 was $3,121,000 and $2,724,000, respectively. Deposit amounts in excess of $250,000 generally are not insured by the Federal Deposit Insurance Corporation. At June 30, 2017 (unaudited), the schedule maturities of certificates of deposit are as follows: (Dollars in thousands) 2017 $ 13,220 2018 18,398 2019 10,460 2020 6,934 2021 7,628 2022 3,175 Total $ 59,815 Executive officers’ and directors’ deposits were $243,000 and $237,000 at June 30, 2017 (unaudited) and December 31, 2016, respectively.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2017
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 $ 15 $ 12 Allowance for credit losses 482 481 Deferred compensation 61 67 Severance payments 110 170 Restricted stock awards 6 2 Allowance for ground rents 51 56 Allowance for delinquent mortgage interest 147 141 Contribution carryforward 3 2 Net operating loss carryforward 1,908 1,831 Unrealized loss on available-for-sale securities — — Total deferred tax assets 2,783 2,762 Valuation allowance (2,618 ) (2,608 ) Deferred tax assets after valuation allowance 165 154 Deferred tax liabilities: Depreciation 130 130 ESOP 35 24 Total deferred tax liabilities 165 154 Net deferred tax assets $ — $ — Management evaluates deferred tax assets annually. The provision for income taxes is comprised of the following: June 30, June 30, (Dollars in thousands) (unaudited) (unaudited) Tax expense (benefit): Current federal and state $ (11 ) $ (6 ) Deferred tax 11 156 Total $ — $ 150 At June 30, 2017, the Bank had approximately $4,700,000 in federal and $5,000,000 in state net operating loss carryforwards. These net operating loss carryforwards begin to expire in 2032. 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, 2017 (unaudited) and December 31, 2016 is as follows: (Dollars in thousands) Valuation Balance of January 1, 2016 $ (1,442 ) Expiration of capital loss carryforwards — Increase in valuation allowance (1,166 ) Balance of December 31, 2016 $ (2,608 ) Expiration of capital loss carryforwards — Increase in valuation allowance (10 ) Balance of June 30, 2017 $ (2,618 ) As of December 31, 2016 and June 30, 2017, 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.

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS	6 Months Ended
	Jun. 30, 2017
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, 2017 and December 31, 2016 that the Bank met all capital adequacy requirements to which it is subject. As of December 31, 2016, 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, 2017 (unaudited) and December 31, 2016 financial statements and the current capital requirements: Actual Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio As of June 30, 2017: Total risk-based capital (to risk-weighted assets) $ 24,596 34.26 % $ 6,192 ≥8.625 % Tier I capital (to risk-weighted assets) 23,695 33.01 4,756 ≥6.625 Tier I capital (to adjusted total assets) 23,695 17.29 6,338 ≥4.625 Common equity tier 1 capital (to risk weighted assets) 23,695 33.01 3,679 >5.125 As of December 31, 2016: Total risk-based capital (to risk-weighted assets) $ 24,359 37.47 % $ 5,606 ≥8.625 % Tier I capital (to risk-weighted assets) 23,541 36.22 4,306 ≥6.625 Tier I capital (to adjusted total assets) 23,541 17.44 5,400 ≥4.625 Common equity tier 1 capital (to risk weighted assets) 23,541 36.22 3,331 >5.125 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 $ 30,353 $ 30,324 LESS: Parent Only Equity 6,669 6,922 LESS: Net unrealized (losses) gains on available-for-sale securities (11 ) (139 ) Tier 1 Capital $ 23,695 $ 23,541 Tier 1 Capital $ 23,695 $ 23,541 Allowance for loan and lease losses includible in Tier 2 capital 901 818 Total risk-based capital $ 24,596 $ 24,359

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2017
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, 2017 and 2016 (unaudited). (Dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2017 (unaudited) Net unrealized gains on securities available-for-sale $ 86 $ - $ 86 Other Comprehensive Gain $ 86 $ - $ 86 Six Months Ended June 30, 2016 (unaudited) Net unrealized gains on securities available-for-sale $ 79 $ (31 ) $ 48 Other Comprehensive Gain $ 79 $ (31 ) $ 48 The following table presents the changes in each components of accumulated other comprehensive income, net of tax, for the six months ended June 30, 2017 and 2016 (unaudited). (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 ) (Dollars in thousands) Securities Accumulated Other Six Months Ended June 30, 2016 (unaudited) Balance at Beginning of Year $ (11 ) $ (11 ) Other comprehensive gain 48 48 Balance at End of Period $ 37 $ 37 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 ) $ (27 ) Realized gain on redemption of investment securities - 9 Provision for Income Tax $ (42 ) $ (18 ) Net of Tax Total Reclassifications for the Period $ (42 ) $ (18 ) Net of Tax

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
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, 2017 and 2016 are as follows: Three Months Ended June 30, 2017 (unaudited) (Dollars in thousands, except per 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 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 ) Three Months Ended June 30, 2016 (unaudited) (Dollars in thousands, except per share Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ (172 ) 1,792,806 $ (0.10 ) Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ (172 ) 1,792,806 $ (0.10 ) Six Months Ended June 30, 2016 (unaudited) (Dollars in thousands, except per Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ (171 ) 1,876,346 $ (0.09 ) Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ (171 ) 1,876,346 $ (0.09 ) There were no anti-dilutive shares excluded from the June 30, 2017 and 2016 diluted earnings per share calculation.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2017
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, 2017 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 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 $ 965 $ — $ 965 $ — $ — $ — U.S. Municipal securities 1,517 — 1,517 — — — Mortgage-backed securities 13,390 — 13,390 — — — Total assets measured at fair value on a recurring basis $ 15,872 $ — $ 15,872 $ -- $ -- $ -- Fair Value Measurements at December 31, 2016 Using: Description (Dollars in thousands) Fair Value 2016 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 $ 933 $ — $ 933 $ — $ — $ — Mortgage-backed securities 2,765 — 2,765 — — — Total assets measured at fair value on a recurring basis $ 3,698 $ — $ 3,698 $ -- $ -- $ -- 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, 2017 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 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 $ 3,004 $ — $ 2,641 $ 363 $ — $ — Commercial 1,091 — 1,091 — — — Land 1,201 — 1,201 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 5,304 $ — $ 4,933 $ 363 $ — $ — 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%. Fair Value Measurements at December 31, 2016 Using: Description (Dollars in thousands) Fair Value December 31, 2016 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 $ 3,734 $ — $ 2,633 $ 1,101 $ — $ — Commercial 1,451 — 1,451 — — — Land 2,346 — 2,346 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 7,531 $ — $ 6,430 $ 1,101 $ — $ — 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, 2017 (unaudited) and December 31, 2016 are as follows: (Dollars in thousands) Carrying Value June 30, 2017 (unaudited) Fair Value June 30, 2017 (unaudited) Quoted Prices In Active Markets For Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 8,305 $ 8,305 $ — $ 8,305 $ — Other interest bearing deposits in other banks 3,985 3,985 — 3,985 — Investment securities 33,618 33,486 — 33,486 — Federal Home Loan Bank stock 626 626 — 626 — Loans, net 86,520 87,348 — 4,933 82,415 Bank owned life insurance 4,479 4,479 — 4,479 — Accrued interest receivable 372 372 — 372 — LIABILITIES Deposits $ 99,326 $ 96,204 $ — $ — $ 96,204 FHLB advances 12,000 12,000 — — 12,000 (Dollars in thousands) Carrying Value December 31, 2016 Fair Value December 31, 2016 Quoted Prices In Active Markets For Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 5,399 $ 5,399 $ — $ 5,399 $ — Other interest bearing deposits in other banks 11,090 11,090 — 11,090 — Investment securities 22,516 21,969 — 21,969 — Federal Home Loan Bank stock 418 418 — 418 — Loans, net 86,030 85,525 — 6,430 79,095 Bank owned life insurance 931 931 — 931 — Accrued interest receivable 356 356 — 356 — LIABILITIES Deposits $ 93,015 $ 90,912 $ — $ — $ 90,912 FHLB advances 7,000 7,005 — — 7,005 The following methods and assumptions were used to estimate the fair value disclosures for financial instruments as of June 30, 2017 (unaudited) and December 31, 2016: 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 ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
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, 2017 and for the three and six months ended June 30, 2017 and 2016 contains all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2017. 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, 2016. The results of operations and cash flows for the three and six months ended June 30, 2017 and 2016 are not necessarily indicative of the results to be expected for the year ended December 31, 2017.
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.
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. TDR loans that are in compliance with their modified terms and that yield a market rate may be removed from the TDR status after a period of one year.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged 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.
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.
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 December 31, 2016, 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.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 (unaudited) (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available-for-sale: U.S. Government securities $ 1,000 $ – $ (35 ) $ 965 U.S. Municipal securities 1,517 2 (2 ) 1,517 Mortgage-backed securities: 13,366 63 (39 ) 13,390 Total investments available-for-sale $ 15,883 $ 65 $ (76 ) $ 15,872 December 31, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available-for-sale: U.S. Government securities $ 1,000 $ – $ (67 ) $ 933 Mortgage-backed securities: 2,837 10 (82 ) 2,765 Total investments available-for-sale $ 3,837 $ 10 $ (149 ) $ 3,698
Schedule of carrying amount and estimated fair market value of investment securities classified as held-to-maturity	June 30, 2017 (unaudited) (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments held-to-maturity: U.S. Government securities: $ 12,500 $ 3 $ (209 ) $ 12,294 Mortgage backed securities 5,246 135 (61 ) 5,320 Total investments held-to-maturity $ 17,746 $ 138 $ (270 ) $ 17,614 December 31, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments held-to-maturity: U.S. Government securities: $ 12,500 $ — $ (612 ) $ 11,888 Mortgage-backed securities: 6,318 183 (118 ) 6,383 Total U.S. Government securities $ 18,818 $ 183 $ (730 ) $ 18,271
Schedule of unrealized losses are considered temporary	June 30, 2017 (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 $ 4,721 $ (99 ) $ – $ – $ 4,721 $ (99 ) U.S. Municipal securities 1,051 (2 ) – – 1,051 (2 ) U.S. Government securities 12,255 (245 ) – – 12,255 (245 ) Total temporarily impaired securities $ 18,027 $ (346 ) $ – $ – $ 18,027 $ (346 ) December 31, 2016 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities $ 5,369 $ (200 ) $ — $ — $ 5,369 $ (200 ) U.S. Government securities 12,821 (679 ) — — 12,821 (679 ) Total temporarily impaired securities $ 18,190 $ (879 ) $ — $ — $ 18,190 $ (879 )
Schedule of maturities of debt securities	Amortized Cost (in thousands) Fair Value (in thousands) Due over one year through five years $ — $ — Due over five years through ten years 5,009 4,953 Due after ten years 10,008 9,823 Mortgage-backed securities 18,612 18,710 Total $ 33,629 $ 33,486

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Schedule of loans receivable	June 30, 2017 December 31, 2016 (Dollars in thousands) (unaudited) Secured by real estate: Residential: One-to four-family $ 70,564 $ 71,266 Multi-family 584 2,038 Total 71,148 73,304 Non-residential 9,738 7,021 Construction and land loans 3,881 5,104 Home equity line of credit (“HELOC”) 3,988 3,473 Commercial, Consumer and other loans: Commercial loans 328 — Loans to depositors, secured by savings 14 18 89,097 88,920 Add: Net (discount) premium on purchased loans 7 10 Unamortized net deferred costs 23 16 Less: Undisbursed portion of construction loans (1,318 ) (1,650 ) Unearned net loan origination fees (67 ) (48 ) Less allowance for loan losses (1,222 ) (1,218 ) Loans receivable, net $ 86,520 $ 86,030
Schedule of allowance for loan losses and recorded investment	(Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Unallocated 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 (Dollars in thousands) Residential Real Estate, HELOC, and Consumer Non- Real Estate Construction and Land Unallocated Total Allowance for loan losses: Beginning balance, April 1, 2016 $ 964 $ 196 $ 146 $ — $ 1,306 Charge-offs (2 ) — (81 ) — (83 ) Recoveries — — — — — Provisions (1 ) (17 ) 22 — 4 Ending balance, June 30, 2016 $ 961 $ 179 $ 87 $ — $ 1,227 Beginning balance, January 1, 2016 $ 960 $ 194 $ 157 $ 250 $ 1,561 Charge-offs (2 ) — (81 ) — (83 ) Recoveries — — — — — Provisions 3 (15 ) 11 (250 ) (251 ) Ending balance, June 30, 2016 $ 961 $ 179 $ 87 $ — $ 1,227 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 45 $ — $ — $ — $ 45 Ending balance: collectively evaluated for impairment $ 916 $ 179 $ 87 $ — $ 1,182 Loans: Ending balance: individually evaluated for impairment. . $ 3,816 $ 1,255 $ 2,411 $ — $ 7,482 Ending balance: collectively evaluated for impairment $ 77,506 $ 6,321 $ 2,205 $ — $ 86,032 (Dollars in thousands) Residential Real Estate, HELOC, Commercial, and Non- Real Estate Construction and Land Unallocated Total Allowance for loan losses: Beginning balance $ 960 $ 194 $ 157 $ 250 $ 1,561 Charge-offs (4 ) — (81 ) — (85 ) Recoveries — — — — — Provisions 17 (36 ) 11 (250 ) (258 ) Ending balance $ 973 $ 158 $ 87 $ — $ 1,218 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 38 $ — $ — — $ 38 Ending balance: collectively evaluated for impairment $ 935 $ 158 $ 87 $ — $ 1,180 Loans: Ending balance: individually evaluated for impairment . . $ 3,772 $ 1,451 $ 2,346 — $ 7,569 Ending balance: collectively evaluated for impairment $ 73,023 $ 5,570 $ 2,758 — $ 81,351
Schedule of credit risk classification	Credit risk profile by internally assigned classification as of June 30, 2017 (unaudited) is as follows: (Dollars in thousands) Residential Non- Construction Total Non-classified $ 69,886 $ 8,647 $ 2,681 $ 81,214 Special mention 2,414 — — 2,414 Substandard 3,178 1,091 1,200 5,469 Doubtful — — — — Loss — — — — Total $ 75,478 $ 9,738 $ 3,881 $ 89,097 Credit risk profile by internally assigned classification as of December 31, 2016 is as follows: (Dollars in thousands) Residential Non-residential Construction Total Non-classified $ 71,147 $ 5,653 $ 2,791 $ 79,591 Special mention 3,005 159 87 3,251 Substandard 2,643 1,209 2,226 6,078 Doubtful — — — — Loss — — — — Total $ 76,795 $ 7,021 $ 5,104 $ 88,920
Schedule of impaired loans	(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 (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 2,619 $ 1,255 $ 2,411 $ 6,285 Unpaid principal balance 2,951 1,535 3,569 8,055 Average recorded investment, for the three months ended June 30, 2016 2,620 1,261 2,472 6,353 Interest income recognized 39 13 41 93 Interest income foregone 7 3 2 12 Average recorded investment, for the six months ended June 30, 2016 2,272 1,321 2,239 5,832 Interest income recognized 71 22 73 166 Interest income foregone 12 7 2 21 With an allowance recorded: Recorded investment 1,197 — — 1,197 Unpaid principal balance 1,197 — — 1,197 Related allowance 45 — — 45 Average recorded investment, for the three months ended June 30, 2016 1,200 — — 1,200 Interest income recognized 15 — — 15 Interest income foregone 1 — — 1 Average recorded investment, for the six months ended June 30, 2016 1,191 — — 1,191 Interest income recognized 23 — — 23 Interest income foregone 1 — — 1 Total Recorded investment 3,816 1,255 2,411 7,482 Unpaid principal balance 4,148 1,535 3,569 9,252 Related allowance 45 — — 45 Average recorded investment, for the three months ended June 30, 2016 3,820 1,261 2,472 7,553 Interest income recognized 54 13 41 108 Interest income foregone 8 3 2 13 Average recorded investment, for the six months ended June 30, 2016 3,463 1,321 2,239 7,023 Interest income recognized 94 22 73 189 Interest income foregone 13 7 2 22 (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total With no related allowance recorded: Recorded investment $ 2,633 $ 1,451 $ 2,346 $ 6,430 Unpaid principal balance 2,971 1,665 3,512 8,148 Average recorded investment, for the twelve months ended December 31, 2016 2,522 1,353 2,309 6,184 Interest income recognized 166 45 122 333 Interest income foregone 11 18 7 36 With an allowance recorded: Recorded investment 1,139 — — 1,139 Unpaid principal balance 1,140 — — 1,140 Related allowance 38 — — 38 Average recorded investment, for the twelve months ended December 31, 2016 1,151 — — 1,151 Interest income recognized 792 — — 792 Interest income foregone 50 — — 50 Total Recorded investment 3,772 1,451 2,346 7,569 Unpaid principal balance 4,111 1,665 3,512 9,288 Related allowance 38 — — 38 Average recorded investment, for the twelve months ended December 31, 2016 3,673 1,353 2,309 7,335 Interest income recognized 958 45 122 1,125 Interest income foregone 61 18 7 86
Schedule of aged analysis of past due loans	(Dollars in thousands) Residential Non- Construction Total Current $ 74,607 $ 9,693 $ 3,160 $ 87,460 30 - 59 days past due 77 — — 77 60 - 89 days past due 4 — — 4 Greater than 90 day past due and still accruing — — — — Greater than 90 days past due 790 45 721 1,556 Total past due 871 45 721 1,637 Total $ 75,478 $ 9,738 $ 3,881 $ 89,097 (Dollars in thousands) Residential Real Estate, HELOC, and Non- Real Estate Construction and Land Total Current $ 74,773 $ 6,912 $ 3,312 $ 84,997 30 - 59 days past due 908 — 1,792 2,700 60 - 89 days past due 433 — — 433 Greater than 90 day past due and still accruing — — — — Greater than 90 days past due 681 109 — 790 Total past due 2,022 109 1,792 3,923 Total $ 76,795 $ 7,021 $ 5,104 $ 88,920
Schedule of non-performing loans	(Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 656 $ 913 $ 745 $ 2,314 Other non-accrual loans 726 — — 726 Total non-accrual loans 1,382 913 745 3,040 Accruing troubled debt restructured loans 995 336 — 1,331 Total $ 2,377 $ 1,249 $ 745 $ 4,371 (Dollars in thousands) Residential Non- Construction Total Non-accruing troubled debt restructured loans $ 565 $ 1,020 $ 33 $ 1,618 Other non-accrual loans 541 — — 541 Total non-accrual loans 1,106 1,020 33 2,159 Accruing troubled debt restructured loans 1,172 348 1,760 3,280 Total $ 2,278 $ 1,368 $ 1,793 $ 5,439

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2017
Other Real Estate [Abstract]
Schedule of activity in residential other real estate owned	June 30, December 31, (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, 2017
Deposit Assets Disclosure [Abstract]
Schedule of deposit liabilities	June 30, 2017 December 31, (Dollars in thousands) (unaudited) Non-interest-bearing deposits $ 1,338 $ 1,415 NOW and Money market 22,717 21,241 Savings 15,456 13,811 Certificates of deposit 59,815 56,548 Total deposits $ 99,326 $ 93,015
Schedule maturities of certificates of deposit	2017 $ 13,220 2018 18,398 2019 10,460 2020 6,934 2021 7,628 2022 3,175 Total $ 59,815

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2017
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 $ 15 $ 12 Allowance for credit losses 482 481 Deferred compensation 61 67 Severance payments 110 170 Restricted stock awards 6 2 Allowance for ground rents 51 56 Allowance for delinquent mortgage interest 147 141 Contribution carryforward 3 2 Net operating loss carryforward 1,908 1,831 Unrealized loss on available-for-sale securities — — Total deferred tax assets 2,783 2,762 Valuation allowance (2,618 ) (2,608 ) Deferred tax assets after valuation allowance 165 154 Deferred tax liabilities: Depreciation 130 130 ESOP 35 24 Total deferred tax liabilities 165 154 Net deferred tax assets $ — $ —
Schedule of provision for income taxes	June 30, June 30, (Dollars in thousands) (unaudited) (unaudited) Tax expense (benefit): Current federal and state $ (11 ) $ (6 ) Deferred tax 11 156 Total $ — $ 150
Schedule of valuation allowance for deferred taxes	(Dollars in thousands) Valuation Balance of January 1, 2016 $ (1,442 ) Expiration of capital loss carryforwards — Increase in valuation allowance (1,166 ) Balance of December 31, 2016 $ (2,608 ) Expiration of capital loss carryforwards — Increase in valuation allowance (10 ) Balance of June 30, 2017 $ (2,618 )

REGULATORY CAPITAL REQUIREMEN26

REGULATORY CAPITAL REQUIREMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Regulatory Capital Requirements [Abstract]
Schedule of Bank's capital position based	Actual Minimum Requirements for Capital Adequacy Purposes and to be Adequately Capitalized Under the Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio As of June 30, 2017: Total risk-based capital (to risk-weighted assets) $ 24,596 34.26 % $ 6,192 ≥8.625 % Tier I capital (to risk-weighted assets) 23,695 33.01 4,756 ≥6.625 Tier I capital (to adjusted total assets) 23,695 17.29 6,338 ≥4.625 Common equity tier 1 capital (to risk weighted assets) 23,695 33.01 3,679 >5.125 As of December 31, 2016: Total risk-based capital (to risk-weighted assets) $ 24,359 37.47 % $ 5,606 ≥8.625 % Tier I capital (to risk-weighted assets) 23,541 36.22 4,306 ≥6.625 Tier I capital (to adjusted total assets) 23,541 17.44 5,400 ≥4.625 Common equity tier 1 capital (to risk weighted assets) 23,541 36.22 3,331 >5.125
Schedule of reconciliation of Bank's GAAP capital	June 30, December 31, (Dollars in thousands) (unaudited) Total Company equity capital $ 30,353 $ 30,324 LESS: Parent Only Equity 6,669 6,922 LESS: Net unrealized (losses) gains on available-for-sale securities (11 ) (139 ) Tier 1 Capital $ 23,695 $ 23,541 Tier 1 Capital $ 23,695 $ 23,541 Allowance for loan and lease losses includible in Tier 2 capital 901 818 Total risk-based capital $ 24,596 $ 24,359

OTHER COMPREHENSIVE INCOME (Tab

OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 (unaudited) Net unrealized gains on securities available-for-sale $ 86 $ - $ 86 Other Comprehensive Gain $ 86 $ - $ 86 Six Months Ended June 30, 2016 (unaudited) Net unrealized gains on securities available-for-sale $ 79 $ (31 ) $ 48 Other Comprehensive Gain $ 79 $ (31 ) $ 48
Schedule of components of accumulated other comprehensive income, net of tax	(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 ) (Dollars in thousands) Securities Accumulated Other Six Months Ended June 30, 2016 (unaudited) Balance at Beginning of Year $ (11 ) $ (11 ) Other comprehensive gain 48 48 Balance at End of Period $ 37 $ 37
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 ) $ (27 ) Realized gain on redemption of investment securities - 9 Provision for Income Tax $ (42 ) $ (18 ) Net of Tax Total Reclassifications for the Period $ (42 ) $ (18 ) Net of Tax

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of basic and diluted weighted average shares outstanding	Three Months Ended June 30, 2017 (unaudited) (Dollars in thousands, except per 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 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 ) Three Months Ended June 30, 2016 (unaudited) (Dollars in thousands, except per share Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ (172 ) 1,792,806 $ (0.10 ) Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ (172 ) 1,792,806 $ (0.10 ) Six Months Ended June 30, 2016 (unaudited) (Dollars in thousands, except per Income (Loss) Shares Per Share Basic EPS Net loss available to shareholders $ (171 ) 1,876,346 $ (0.09 ) Diluted EPS Effect of dilutive shares - - - Net loss available to shareholders $ (171 ) 1,876,346 $ (0.09 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of fair value on a recurring basis	Fair Value Measurements at June 30, 2017 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 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 $ 965 $ — $ 965 $ — $ — $ — U.S. Municipal securities 1,517 — 1,517 — — — Mortgage-backed securities 13,390 — 13,390 — — — Total assets measured at fair value on a recurring basis $ 15,872 $ — $ 15,872 $ -- $ -- $ -- Fair Value Measurements at December 31, 2016 Using: Description (Dollars in thousands) Fair Value 2016 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 $ 933 $ — $ 933 $ — $ — $ — Mortgage-backed securities 2,765 — 2,765 — — — Total assets measured at fair value on a recurring basis $ 3,698 $ — $ 3,698 $ -- $ -- $ --
Schedule of fair value on a nonrecurring basis	Fair Value Measurements at June 30, 2017 (unaudited) Using: Description (Dollars in thousands) Fair Value June 30, 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 $ 3,004 $ — $ 2,641 $ 363 $ — $ — Commercial 1,091 — 1,091 — — — Land 1,201 — 1,201 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 5,304 $ — $ 4,933 $ 363 $ — $ — Fair Value Measurements at December 31, 2016 Using: Description (Dollars in thousands) Fair Value December 31, 2016 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 $ 3,734 $ — $ 2,633 $ 1,101 $ — $ — Commercial 1,451 — 1,451 — — — Land 2,346 — 2,346 — — — Construction — — — — — — Other real estate owned — — — — — — Total assets measured at fair value on a non-recurring basis $ 7,531 $ — $ 6,430 $ 1,101 $ — $ —
Schedule of estimated fair values of financial instruments	(Dollars in thousands) Carrying Value June 30, 2017 (unaudited) Fair Value June 30, 2017 (unaudited) Quoted Prices In Active Markets For Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 8,305 $ 8,305 $ — $ 8,305 $ — Other interest bearing deposits in other banks 3,985 3,985 — 3,985 — Investment securities 33,618 33,486 — 33,486 — Federal Home Loan Bank stock 626 626 — 626 — Loans, net 86,520 87,348 — 4,933 82,415 Bank owned life insurance 4,479 4,479 — 4,479 — Accrued interest receivable 372 372 — 372 — LIABILITIES Deposits $ 99,326 $ 96,204 $ — $ — $ 96,204 FHLB advances 12,000 12,000 — — 12,000 (Dollars in thousands) Carrying Value December 31, 2016 Fair Value December 31, 2016 Quoted Prices In Active Markets For Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Observable Inputs (Level 3) ASSETS Cash, interest bearing deposits and federal funds sold $ 5,399 $ 5,399 $ — $ 5,399 $ — Other interest bearing deposits in other banks 11,090 11,090 — 11,090 — Investment securities 22,516 21,969 — 21,969 — Federal Home Loan Bank stock 418 418 — 418 — Loans, net 86,030 85,525 — 6,430 79,095 Bank owned life insurance 931 931 — 931 — Accrued interest receivable 356 356 — 356 — LIABILITIES Deposits $ 93,015 $ 90,912 $ — $ — $ 90,912 FHLB advances 7,000 7,005 — — 7,005

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)	1 Months Ended	6 Months Ended
	Dec. 29, 2014	Jun. 30, 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

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 15,883	$ 3,837
Gross Unrealized Gains	65	10
Gross Unrealized Losses	(76)	(149)
Estimated Fair Value	15,872	3,698
U.S. Government securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,000	1,000
Gross Unrealized Gains
Gross Unrealized Losses	(35)	(67)
Estimated Fair Value	965	933
U.S. Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,517
Gross Unrealized Gains	2
Gross Unrealized Losses	(2)
Estimated Fair Value	1,517
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	13,366	2,837
Gross Unrealized Gains	63	10
Gross Unrealized Losses	(39)	(82)
Estimated Fair Value	$ 13,390	$ 2,765

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 17,746	$ 18,818
Gross Unrealized Gains	138	183
Gross Unrealized Losses	(270)	(730)
EstimatedFair Value	17,614	18,271
U.S. Government securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	12,500	12,500
Gross Unrealized Gains	3
Gross Unrealized Losses	(209)	(612)
EstimatedFair Value	12,294	11,888
Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,246	6,318
Gross Unrealized Gains	135	183
Gross Unrealized Losses	(61)	(118)
EstimatedFair Value	$ 5,320	$ 6,383

INVESTMENT SECURITIES (Detail33

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Less than 12 Months : Fair Value	$ 18,027	$ 18,190
Less than 12 Months : Unrealized Losses	(346)	(879)
12 Months or More : Fair Value
12 Months or More : Unrealized Losses
Total : Fair Value	18,027	18,190
Total : Unrealized Losses	(346)	(879)
Mortgage-backed securities
Schedule of Investments [Line Items]
Less than 12 Months : Fair Value	4,721	5,369
Less than 12 Months : Unrealized Losses	(99)	(200)
12 Months or More : Fair Value
12 Months or More : Unrealized Losses
Total : Fair Value	4,721	5,369
Total : Unrealized Losses	(99)	(200)
U.S. Municipal securities
Schedule of Investments [Line Items]
Less than 12 Months : Fair Value	1,051
Less than 12 Months : Unrealized Losses	(2)
12 Months or More : Fair Value
12 Months or More : Unrealized Losses
Total : Fair Value	1,051
Total : Unrealized Losses	(2)
U.S. Government securities
Schedule of Investments [Line Items]
Less than 12 Months : Fair Value	12,255	12,821
Less than 12 Months : Unrealized Losses	(245)	(679)
12 Months or More : Fair Value
12 Months or More : Unrealized Losses
Total : Fair Value	12,255	12,821
Total : Unrealized Losses	$ (245)	$ (679)

INVESTMENT SECURITIES (Detail34

INVESTMENT SECURITIES (Details 3) $ in Thousands	Jun. 30, 2017USD ($)
Amortized Cost
Due over one year through five years
Due over five years through ten years	5,009
Due after ten years	10,008
Mortgage-backed securities	18,612
Total - Amortized Cost	33,629
Fair Value
Due over one year through five years
Due over five years through ten years	4,953
Due after ten years	9,823
Mortgage-backed securities	18,710
Total - Fair Value	$ 33,486

LOANS RECEIVABLE (Details)

LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 89,097		$ 88,920
Net (discount) premium on purchased loans	7		10
Unamortized net deferred costs	23		16
Undisbursed portion of construction loans	(1,318)		(1,650)
Unearned net loan origination fees	(67)		(48)
Less allowance for loan losses	(1,222)	$ (1,195)	(1,218)	$ (1,227)	$ (1,306)	$ (1,561)
Loans receivable, net	86,520		86,030
Commercial loans
Loans and Leases Receivable Disclosure [Line Items]
Total	328
Loans to depositors, secured by savings
Loans and Leases Receivable Disclosure [Line Items]
Total	14		18
Real estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Total	71,148		73,304
Real estate | One-to four-family
Loans and Leases Receivable Disclosure [Line Items]
Total	70,564		71,266
Real estate | Multi-family
Loans and Leases Receivable Disclosure [Line Items]
Total	584		2,038
Real estate | Non-residential
Loans and Leases Receivable Disclosure [Line Items]
Total	9,738		7,021
Less allowance for loan losses	(134)	(97)	(158)	(179)	(196)	(194)
Real estate | Construction and land loans
Loans and Leases Receivable Disclosure [Line Items]
Total	3,881		5,104
Less allowance for loan losses	(53)	$ (50)	(87)	$ (87)	$ (146)	$ (157)
Real estate | Home equity line of credit ("HELOC")
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 3,988		$ 3,473

LOANS RECEIVABLE (Details 1)

LOANS RECEIVABLE (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 1,195	$ 1,306	$ 1,218	$ 1,561	$ 1,561
Charge-offs	(107)	(83)	(130)	(83)	(85)
Recoveries	134		134
(Reversal) provision for ground rent losses		4		(251)	(258)
Ending balance	1,222	1,227	1,222	1,227	1,218
Allowance for Loan Losses
Ending balance: individually evaluated for impairment	38	45	38	45	38
Ending balance: collectively evaluated for impairment	1,184	1,182	1,184	1,182	1,180
Loans:
Ending balance: individually evaluated for impairment	5,334	7,482	5,334	7,482	7,569
Ending balance: collectively evaluated for impairment	83,763	86,032	83,763	86,032	81,351
Residential Real Estate, HELOC, Commercial, and Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,048	964	973	960	960
Charge-offs	(45)	(2)	(49)	(2)	(4)
Recoveries	3		3
(Reversal) provision for ground rent losses	29	(1)	108	3	17
Ending balance	1,035	961	1,035	961	973
Allowance for Loan Losses
Ending balance: individually evaluated for impairment	38	45	38	45	38
Ending balance: collectively evaluated for impairment	997	916	997	916	935
Loans:
Ending balance: individually evaluated for impairment	3,042	3,816	3,042	3,816	3,772
Ending balance: collectively evaluated for impairment	72,436	77,506	72,436	77,506	73,023
Real estate | Non-residential
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	97	196	158	194	194
Charge-offs	(62)		(81)
Recoveries
(Reversal) provision for ground rent losses	99	(17)	57	(15)	(36)
Ending balance	134	179	134	179	158
Allowance for Loan Losses
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	134	179	134	179	158
Loans:
Ending balance: individually evaluated for impairment	1,091	1,255	1,091	1,255	1,451
Ending balance: collectively evaluated for impairment	8,647	6,321	8,647	6,321	5,570
Real estate | Construction and Land
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	50	146	87	157	157
Charge-offs		(81)		(81)	(81)
Recoveries	131		131
(Reversal) provision for ground rent losses	(128)	22	(165)	11	11
Ending balance	53	87	53	87	87
Allowance for Loan Losses
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	53	87	53	87	87
Loans:
Ending balance: individually evaluated for impairment	1,201	2,411	1,201	2,411	2,346
Ending balance: collectively evaluated for impairment	2,680	2,205	2,680	2,205	2,758
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				250	250
Charge-offs
Recoveries
(Reversal) provision for ground rent losses				(250)	(250)
Ending balance
Allowance for Loan Losses
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Loans:
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment

LOANS RECEIVABLE (Details 2)

LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Total	$ 89,097	$ 88,920
Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	81,214	79,591
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	2,414	3,251
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	5,469	6,078
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total
Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Residential Real Estate, HELOC, Commercial, and Consumer
Financing Receivable, Recorded Investment [Line Items]
Total	75,478	76,795
Residential Real Estate, HELOC, Commercial, and Consumer | Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	69,886	71,147
Residential Real Estate, HELOC, Commercial, and Consumer | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	2,414	3,005
Residential Real Estate, HELOC, Commercial, and Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	3,178	2,643
Residential Real Estate, HELOC, Commercial, and Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total
Residential Real Estate, HELOC, Commercial, and Consumer | Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Real estate | Non-residential
Financing Receivable, Recorded Investment [Line Items]
Total	9,738	7,021
Real estate | Non-residential | Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	8,647	5,653
Real estate | Non-residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		159
Real estate | Non-residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	1,091	1,209
Real estate | Non-residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total
Real estate | Non-residential | Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Real estate | Construction and land loans
Financing Receivable, Recorded Investment [Line Items]
Total	3,881	5,104
Real estate | Construction and land loans | Non-classified
Financing Receivable, Recorded Investment [Line Items]
Total	2,681	2,791
Real estate | Construction and land loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		87
Real estate | Construction and land loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	1,200	2,226
Real estate | Construction and land loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total
Real estate | Construction and land loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Total

LOANS RECEIVABLE (Details 3)

LOANS RECEIVABLE (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
With no related allowance recorded:
Recorded investment	$ 4,971	$ 6,285	$ 4,971	$ 6,285	$ 6,430
Unpaid principal balance	7,577	8,055	7,577	8,055	8,148
Average recorded investment	4,296	6,353	4,910	5,832	6,184
Interest income recognized	58	93	151	166	333
Interest income foregone	21	12	46	21	36
With an allowance recorded:
Recorded investment	363	1,197	363	1,197	1,139
Unpaid principal balance	363	1,197	363	1,197	1,140
Related allowance	38	45	38	45	38
Average recorded investment	363	1,200	348	1,191	1,151
Interest income recognized	9	15	9	23	792
Interest income foregone		1		1	50
Total
Recorded investment	5,334	7,482	5,334	7,482	7,569
Unpaid principal balance	7,940	9,252	7,940	9,252	9,288
Related allowance	38	45	38	45	38
Average recorded investment	4,659	7,553	5,258	7,023	7,335
Interest income recognized	67	108	160	189	1,125
Interest income foregone	21	13	46	22	86
Residential Real Estate, HELOC, Commercial, and Consumer
With no related allowance recorded:
Recorded investment	2,679	2,619	2,679	2,619	2,633
Unpaid principal balance	3,667	2,951	3,667	2,951	2,971
Average recorded investment	2,724	2,620	2,578	2,272	2,522
Interest income recognized	37	39	103	71	166
Interest income foregone	9	7	16	12	11
With an allowance recorded:
Recorded investment	363	1,197	363	1,197	1,139
Unpaid principal balance	363	1,197	363	1,197	1,140
Related allowance	38	45	38	45	38
Average recorded investment	363	1,200	348	1,191	1,151
Interest income recognized	9	15	9	23	792
Interest income foregone		1		1	50
Total
Recorded investment	3,042	3,816	3,042	3,816	3,772
Unpaid principal balance	4,030	4,148	4,030	4,148	4,111
Related allowance	38	45	38	45	38
Average recorded investment	3,087	3,820	2,926	3,463	3,673
Interest income recognized	46	54	112	94	958
Interest income foregone	9	8	16	13	61
Real estate | Non-residential
With no related allowance recorded:
Recorded investment	1,091	1,255	1,091	1,255	1,451
Unpaid principal balance	1,670	1,535	1,670	1,535	1,665
Average recorded investment	756	1,261	1,054	1,321	1,353
Interest income recognized	8	13	23	22	45
Interest income foregone		3		7	18
With an allowance recorded:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment
Interest income recognized
Interest income foregone
Total
Recorded investment	1,091	1,255	1,091	1,255	1,451
Unpaid principal balance	1,670	1,535	1,670	1,535	1,665
Related allowance
Average recorded investment	756	1,261	1,054	1,321	1,353
Interest income recognized	8	13	23	22	45
Interest income foregone		3		7	18
Real estate | Construction and land loans
With no related allowance recorded:
Recorded investment	1,201	2,411	1,201	2,411	2,346
Unpaid principal balance	2,240	3,569	2,240	3,569	3,512
Average recorded investment	816	2,472	1,278	2,239	2,309
Interest income recognized	13	41	25	73	122
Interest income foregone	12	2	30	2	7
With an allowance recorded:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment
Interest income recognized
Interest income foregone
Total
Recorded investment	1,201	2,411	1,201	2,411	2,346
Unpaid principal balance	2,240	3,569	2,240	3,569	3,512
Related allowance
Average recorded investment	816	2,472	1,278	2,239	2,309
Interest income recognized	13	41	25	73	122
Interest income foregone	$ 12	$ 2	$ 30	$ 2	$ 7

LOANS RECEIVABLE (Details 4)

LOANS RECEIVABLE (Details 4) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 87,460	$ 84,997
Greater than 90 day past due and still accruing
Total past due	1,637	3,923
Total	89,097	88,920
30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	77	2,700
60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4	433
Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,556	790
Residential Real Estate, HELOC, Commercial, and Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	74,607	74,773
Greater than 90 day past due and still accruing
Total past due	871	2,022
Total	75,478	76,795
Residential Real Estate, HELOC, Commercial, and Consumer | 30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	77	908
Residential Real Estate, HELOC, Commercial, and Consumer | 60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4	433
Residential Real Estate, HELOC, Commercial, and Consumer | Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	790	681
Real estate | Non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	9,693	6,912
Greater than 90 day past due and still accruing
Total past due	45	109
Total	9,738	7,021
Real estate | Non-residential | 30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due
Real estate | Non-residential | 60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due
Real estate | Non-residential | Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	45	109
Real estate | Construction and land loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,160	3,312
Greater than 90 day past due and still accruing
Total past due	721	1,792
Total	3,881	5,104
Real estate | Construction and land loans | 30 - 59 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,792
Real estate | Construction and land loans | 60 - 89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due
Real estate | Construction and land loans | Greater than 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 721

LOANS RECEIVABLE (Details 5)

LOANS RECEIVABLE (Details 5) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	$ 2,314	$ 1,618
Other non-accrual loans	726	541
Total non-accrual loans	3,040	2,159
Accruing troubled debt restructured loans	1,331	3,280
Total	4,371	5,439
Residential Real Estate, HELOC, Commercial, and Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	656	565
Other non-accrual loans	726	541
Total non-accrual loans	1,382	1,106
Accruing troubled debt restructured loans	995	1,172
Total	2,377	2,278
Real estate | Non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	913	1,020
Other non-accrual loans
Total non-accrual loans	913	1,020
Accruing troubled debt restructured loans	336	348
Total	1,249	1,368
Real estate | Construction and land loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accruing troubled debt restructured loans	745	33
Other non-accrual loans
Total non-accrual loans	745	33
Accruing troubled debt restructured loans		1,760
Total	$ 745	$ 1,793

LOANS RECEIVABLE (Detail Textua

LOANS RECEIVABLE (Detail Textuals) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Maximum percent of loans to value ratio	80.00%
Percentage of loan secured by certificate of deposits	100.00%
Loans serviced by bank for benefit of other loan	$ 408,000	$ 422,000
Residential real estate property for foreclosure	$ 207,000

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Other Real Estate [Roll Forward]
Beginning balance
Additions
Transfers from Loans
Transfers to Loans
Sales
Provisions
Ending balance

OTHER REAL ESTATE OWNED (Deta43

OTHER REAL ESTATE OWNED (Detail Textuals) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Real Estate [Abstract]
Other real estate owned

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deposit Liabilities Disclosure [Abstract]
Non-interest-bearing deposits	$ 1,338	$ 1,415
NOW and Money market	22,717	21,241
Savings	15,456	13,811
Certificates of deposit	59,815	56,548
Total deposits	$ 99,326	$ 93,015

DEPOSITS (Details 1)

DEPOSITS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deposit Liabilities Disclosure [Abstract]
2,017	$ 13,220
2,018	18,398
2,019	10,460
2,020	6,934
2,021	7,628
2,022	3,175
Total	$ 59,815	$ 56,548

DEPOSITS (Detail Textuals)

DEPOSITS (Detail Textuals) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deposit Liabilities [Line Items]
Time deposits, $250,000 or more	$ 3,121,000	$ 2,724,000
Deposits	99,326	93,015
Executive officers and directors
Deposit Liabilities [Line Items]
Deposits	$ 243,000	$ 237,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Deferred loan fees and costs, net	$ 15	$ 12
Allowance for credit losses	482	481
Deferred compensation	61	67
Severance payments	110	170
Restricted stock awards	6	2
Allowance for ground rents	51	56
Allowance for delinquent mortgage interest	147	141
Contribution carryforward	3	2
Net operating loss carryforward	1,908	1,831
Unrealized loss on available-for-sale securities
Total deferred tax assets	2,783	2,762
Valuation allowance	(2,618)	(2,608)
Deferred tax assets after valuation allowance	165	154
Deferred tax liabilities:
Depreciation	130	130
ESOP	35	24
Total deferred tax liabilities	165	154
Net deferred tax assets

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Tax expense (benefit):
Current federal and state		$ (11)	$ (6)
Deferred tax		11	156
Total	$ 22		$ 150

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Deferred Tax Assets Valuation Allowance [Roll Forward]
Balance at beginning of period	$ (2,608)
Ending balance	(2,618)	$ (2,608)
Valuation allowance for Capital Loss Carryforwards
Deferred Tax Assets Valuation Allowance [Roll Forward]
Balance at beginning of period	(2,608)	(1,442)
Expiration of capital loss carryforwards
Increase in valuation allowance	(10)	(1,166)
Ending balance	$ (2,618)	$ (2,608)

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals)	Jun. 30, 2017USD ($)
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 4,700,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 5,000,000

REGULATORY CAPITAL REQUIREMEN51

REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
Total risk-based capital (to risk-weighted assets) Amount	$ 24,596	$ 24,359
Total risk-based capital (to risk-weighted assets) Ratio	34.26%	37.47%
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	$ 6,192	$ 5,606
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	8.625%	8.62%
Tier I capital (to risk-weighted assets) Amount	$ 23,695	$ 23,541
Tier I capital (to risk-weighted assets) Ratio	33.01%	36.22%
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	$ 4,756	$ 4,306
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	6.625%	6.625%
Tier I capital (to adjusted total assets) Amount	$ 23,695	$ 23,541
Tier I capital (to adjusted total assets) Ratio	17.29%	17.44%
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	$ 6,338	$ 5,400
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	4.625%	4.625%
Common equity tier 1 capital (to risk weighted assets) Amount	$ 23,695	$ 23,541
Common equity tier 1 capital (to risk weighted assets) Ratio	33.01%	36.22%
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	$ 3,679	$ 3,331
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	5.125%	5.125%

REGULATORY CAPITAL REQUIREMEN52

REGULATORY CAPITAL REQUIREMENTS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
Total Company equity capital	$ 30,353	$ 30,324
LESS: Parent Only Equity	6,669	6,922
LESS: Net unrealized (losses) gains on available-for-sale securities	(11)	(139)
Tier 1 Capital	23,695	23,541
Tier 1 Capital	23,695	23,541
Allowance for loan and lease losses includible in Tier 2 capital	901	818
Total risk-based capital	$ 24,596	$ 24,359

OTHER COMPREHENSIVE INCOME (Det

OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net unrealized gains on securities available-for-sale, Before Tax	$ 124	$ (8)	$ 86	$ 79
Net unrealized gains on securities available-for-sale, Tax Effect		$ 3		(31)
Net unrealized gains on securities available-for-sale, Net of Tax			86	48
Other Comprehensive Gain, Before Tax			86	79
Other Comprehensive Gain, Tax Effect				(31)
Other Comprehensive Gain, Net of Tax			$ 86	$ 48

OTHER COMPREHENSIVE INCOME (D54

OTHER COMPREHENSIVE INCOME (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income Loss [Roll Forward]
Balance at Beginning of Year			$ (139)
Other comprehensive gain	$ 124	$ (5)	86	$ 48
Balance at End of Period	(11)		(11)
Securities Available-for-sale
Accumulated Other Comprehensive Income Loss [Roll Forward]
Balance at Beginning of Year			(139)	(11)
Other comprehensive gain			128	48
Balance at End of Period	(11)	37	(11)	37
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income Loss [Roll Forward]
Balance at Beginning of Year			(139)	(11)
Other comprehensive gain			128	48
Balance at End of Period	$ (11)	$ 37	$ (11)	$ 37

OTHER COMPREHENSIVE INCOME (D55

OTHER COMPREHENSIVE INCOME (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gain on redemption of investment securities	$ 26	$ 2	$ 42	$ 27
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of Tax			(42)	(18)
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			(42)	(27)
Provision for Income Tax				9
Net of Tax			$ (42)	$ (18)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic EPS
Net loss available to shareholders	$ 23	$ (172)	$ (8)	$ (171)
Shares (Denominator)	1,748,729	1,792,806	1,751,116	1,876,346
Basic earnings (loss) per share (in dollars per share)	$ 0.02	$ (0.10)	$ 0	$ (0.09)
Diluted EPS
Effect of dilutive shares, Income (Loss)
Effect of dilutive shares, Shares (Denominator)
Effect Of Dilutive Shares, Per Share Amount
Net loss available to shareholders	$ 23	$ (172)	$ (8)	$ (171)
Net loss available to shareholders, Shares (Denominator)	1,748,729	1,792,806	1,751,116	1,876,346
Net loss available to shareholders, Per Share Amount (in dollars per share)	$ 0.02	$ (0.10)	$ 0	$ (0.09)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Investments (available-for-sale) :
Available-for-sale securities	$ 15,872	$ 3,698
Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Available-for-sale securities	965	933
Mortgage-backed securities
Investments (available-for-sale) :
Available-for-sale securities	13,390	2,765
Recurring basis
Mortgage backed securities:
Trading Gains and (Losses)
Total Changes In Fair Values Included In Period Earnings
Total assets measured at fair value on a recurring basis	15,872	3,698
Recurring basis | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Trading Gains and (Losses)
Total Changes in Fair Values Included in Period Earnings
Available-for-sale securities	965	933
Recurring basis | U.S. Municipal securities
Investments (available-for-sale) :
Trading Gains and (Losses)
Total Changes in Fair Values Included in Period Earnings
Available-for-sale securities	1,517
Recurring basis | Mortgage-backed securities
Mortgage backed securities:
Trading Gains and (Losses)
Total Changes in Fair Values Included in Period Earnings
Mortgage-backed securities	13,390	2,765
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1)
Mortgage backed securities:
Total assets measured at fair value on a recurring basis
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Available-for-sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. Municipal securities
Investments (available-for-sale) :
Available-for-sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Mortgage backed securities:
Mortgage-backed securities
Recurring basis | Other Observable Inputs (Level 2)
Mortgage backed securities:
Total assets measured at fair value on a recurring basis	15,872	3,698
Recurring basis | Other Observable Inputs (Level 2) | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Available-for-sale securities	965	933
Recurring basis | Other Observable Inputs (Level 2) | U.S. Municipal securities
Investments (available-for-sale) :
Available-for-sale securities	1,517
Recurring basis | Other Observable Inputs (Level 2) | Mortgage-backed securities
Mortgage backed securities:
Mortgage-backed securities	13,390	2,765
Recurring basis | Significant Unobservable Inputs (Level 3)
Mortgage backed securities:
Total assets measured at fair value on a recurring basis
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government Agencies
Investments (available-for-sale) :
Available-for-sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Municipal securities
Investments (available-for-sale) :
Available-for-sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Mortgage backed securities:
Mortgage-backed securities

FAIR VALUE MEASUREMENTS (Deta58

FAIR VALUE MEASUREMENTS (Details 1) - Fair value measurements, nonrecurring - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Gains and (Losses)
Total Changes in Fair Values Included in period earnings
Impaired loans - Residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Gains and (Losses)
Total Changes in Fair Values Included in period earnings
Impaired loans - Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Gains and (Losses)
Total Changes in Fair Values Included in period earnings
Impaired loans - Land
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Gains and (Losses)
Total Changes in Fair Values Included in period earnings
Impaired loans - Construction
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Gains and (Losses)
Total Changes in Fair Values Included in period earnings
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Gains and (Losses)
Total Changes in Fair Values Included in period earnings
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a non-recurring basis	5,304	7,531
Fair Value | 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	3,004	3,734
Fair Value | 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	1,091	1,451
Fair Value | 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	1,201	2,346
Fair Value | 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
Fair Value | 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
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
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
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
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
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
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
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	4,933	6,430
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	2,641	2,633
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	1,091	1,451
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	1,201	2,346
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
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
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	363	1,101
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	363	1,101
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
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
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
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

FAIR VALUE MEASUREMENTS (Deta59

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying Value
ASSETS
Cash, interest-bearing deposits and federal funds sold	$ 8,305	$ 5,399
Other interest bearing deposits in other banks	3,985	11,090
Investment securities	33,618	22,516
Federal Home Loan Bank stock	626	418
Loans, net	86,520	86,030
Bank owned life insurance	4,479	931
Accrued interest receivable	372	356
LIABILITIES
Deposits	99,326	93,015
FHLB advances	12,000	7,000
Fair Value
ASSETS
Cash, interest-bearing deposits and federal funds sold	8,305	5,399
Other interest bearing deposits in other banks	3,985	11,090
Investment securities	33,486	21,969
Federal Home Loan Bank stock	626	418
Loans, net	87,348	85,525
Bank owned life insurance	4,479	931
Accrued interest receivable	372	356
LIABILITIES
Deposits	96,204	90,912
FHLB advances	12,000	7,005
Quoted Prices In Active Markets for Identical Assets (Level 1)
ASSETS
Cash, interest-bearing deposits and federal funds sold
Other interest bearing deposits in other banks
Investment securities
Federal Home Loan Bank stock
Loans, net
Bank owned life insurance
Accrued interest receivable
LIABILITIES
Deposits
FHLB advances
Other Observable Inputs (Level 2)
ASSETS
Cash, interest-bearing deposits and federal funds sold	8,305	5,399
Other interest bearing deposits in other banks	3,985	11,090
Investment securities	33,486	21,969
Federal Home Loan Bank stock	626	418
Loans, net	4,933	6,430
Bank owned life insurance	4,479	931
Accrued interest receivable	372	356
LIABILITIES
Deposits
FHLB advances
Significant Unobservable Inputs (Level 3)
ASSETS
Cash, interest-bearing deposits and federal funds sold
Other interest bearing deposits in other banks
Investment securities
Federal Home Loan Bank stock
Loans, net	82,415	79,095
Bank owned life insurance
Accrued interest receivable
LIABILITIES
Deposits	96,204	90,912
FHLB advances	$ 12,000	$ 7,005

FAIR VALUE MEASUREMENTS (Deta60

FAIR VALUE MEASUREMENTS (Detail Textuals)	6 Months Ended
	Jun. 30, 2017
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	3.00%
Contractual rates	5.25%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	4.00%
Contractual rates	7.375%