Loans | Note 5 – Loans The following table sets forth the composition of our loan portfolio by segment and class, at the dates indicated. September 30, 2017 December 31, 2016 Amount Percent Amount Percent First mortgage loans: Secured by one four $ 35,799 46.29 % $ 30,347 47.92 % Secured by multi-family 12,002 15.52 10,031 15.84 Secured by commercial real estate 19,549 25.27 15,292 24.14 Secured by land 158 0.20 170 0.27 Secured by construction 1,293 1.67 499 0.79 Total first mortgage loans 68,801 88.95 56,339 88.96 Commercial, consumer and other loans: Home equity lines-of-credit 7,112 9.20 5,370 8.48 Commercial business loans 1,419 1.83 1,249 1.97 Automobile loans 5 0.01 364 0.57 Other consumer loans 9 0.01 14 0.02 Total commercial, consumer and other loans 8,545 11.05 6,997 11.04 Gross loans 77,346 100.00 63,336 100.00 Premiums and net deferred loan costs (63 ) (84 ) Allowance for loan losses (1,011 ) (904 ) Total loans, net $ 76,272 $ 62,348 The following table presents the activity in the allowance for loan losses by portfolio segment and class for the three and nine September 30, 2017 and 2016 First Mortgages Commercial business, Consumer and Other One four family Multi- family Commercial real estate Land Construction Home equity lines-of- credit Commercial business Automobile Other Consumer Total For the three months ended September 30, 2017 Allowance for loan losses Beginning balance $ 269 $ 138 $ 463 $ 4 $ 39 $ 65 $ 11 $ — $ — $ 989 Provision (credit) for loan losses 5 11 (14 ) — (6 ) 13 9 — — 18 Loans charged-off — — — — — — — — — — Recoveries — 2 — — 2 — — — — 4 Total ending allowance balance September 30, 2017 $ 274 $ 151 $ 449 $ 4 $ 35 $ 78 $ 20 $ — $ — $ 1,011 For the three months ended September 30, 2016 Allowance for loan losses Beginning balance $ 309 $ 134 $ 413 $ 5 $ 5 $ 76 $ 13 $ 26 $ — $ 981 Provision (credit) for loan losses 12 42 (128 ) — — (8 ) (1 ) (12 ) — (95 ) Loans charged-off (11 ) — — — — — — — — (11 ) Recoveries — — 86 — 1 — — — — 87 Total ending allowance balance September 30, 2016 $ 310 $ 176 $ 371 $ 5 $ 6 $ 68 $ 12 $ 14 $ — $ 962 First Mortgages Commercial business, Consumer and Other One four family Multi- family Commercial real estate Land Construction Home equity lines-of- credit Commercial business Automobile Other Consumer Total For the nine months ended September 30, 2017 Allowance for loan losses Beginning balance $ 261 $ 141 $ 386 $ 5 $ 15 $ 72 $ 13 $ 11 $ — $ 904 Provision (credit) for loan losses 13 35 63 (1 ) 16 6 7 (11 ) — 128 Loans charged-off — (31 ) — — — — — — — (31 ) Recoveries — 6 — — 4 — — — — 10 Total ending allowance balance September 30, 2017 $ 274 $ 151 $ 449 $ 4 $ 35 $ 78 $ 20 $ — $ — $ 1,011 For the nine months ended September 30, 2016 Allowance for loan losses Beginning balance $ 326 $ 157 $ 385 $ 5 $ — $ 70 $ 12 $ 36 $ — $ 991 Provision (credit) for loan losses (5 ) 19 (100 ) — (18 ) (2 ) — (22 ) — (128 ) Loans charged-off (11 ) — — — — — — — — (11 ) Recoveries — — 86 — 24 — — — — 110 Total ending allowance balance September 30, 2016 $ 310 $ 176 $ 371 $ 5 $ 6 $ 68 $ 12 $ 14 $ — $ 962 The following table represents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and class based on the impaired method at the dates indicated. The recorded investment in loans excludes accrued interest and loan origination fees due to immateriality. Loan Balance Allowance Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Recorded Investment Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Recorded Investment September 30, 2017 One four $ 564 $ 35,235 $ 35,799 $ 20 $ 254 $ 274 Multi-family 685 11,317 12,002 — 151 151 Commercial real estate 542 19,007 19,549 — 449 449 Land — 158 158 — 4 4 Construction — 1,293 1,293 — 35 35 Home equity lines of credit — 7,112 7,112 — 78 78 Commercial business — 1,419 1,419 — 20 20 Automobile — 5 5 — — — Other consumer — 9 9 — — — Total $ 1,791 $ 75,555 $ 77,346 $ 20 $ 991 $ 1,011 December 31, 2016 One four $ 1,313 $ 29,034 $ 30,347 $ 22 $ 239 $ 261 Multi-family 989 9,042 10,031 10 131 141 Commercial real estate 542 14,750 15,292 — 386 386 Land — 170 170 — 5 5 Construction — 499 499 — 15 15 Home equity lines of credit 241 5,129 5,370 — 72 72 Commercial business — 1,249 1,249 — 13 13 Automobile — 364 364 — 11 11 Other consumer — 14 14 — — — Total $ 3,085 $ 60,251 $ 63,336 $ 32 $ 872 $ 904 The following tables present information related to loans individually evaluated for impairment by class of loans as of and for the nine September 30, 2017 and 2016 December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recorded Cash Basis Interest Recorded September 30, 2017 With no related allowance recorded One four $ 186 $ 50 $ — $ 217 $ — $ — Multi-family 691 685 — 397 9 9 Commercial real estate 542 542 — 542 — — Land — — — — — — Construction — — — — — — Home equity line of credit — — — — — — Commercial business — — — — — — Automobile — — — — — — Other consumer — — — — — — Total with no related allowance recorded 1,419 1,277 — 1,156 9 9 With an allowance recorded One four 514 514 20 520 16 16 Multi-family — — — 387 18 18 Commercial real estate — — — — — — Land — — — — — — Construction — — — — — — Home equity line of credit — — — — — — Commercial business — — — — — — Automobile — — — — — — Other consumer — — — — — — Total with a related allowance recorded 514 514 20 907 34 34 Total $ 1,933 $ 1,791 $ 20 $ 2,063 $ 43 $ 43 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recorded Cash Basis Interest Recorded September 30, 2016 With no related allowance recorded One four $ 1,202 $ 782 $ — $ 1,059 $ — $ — Multi-family — — — 184 23 23 Commercial real estate 542 542 — 121 — — Land — — — — — — Construction — — — — — — Home equity line of credit — — — — — — Commercial business — — — — — — Automobile — — — — — — Other consumer — — — — — — Total with no related allowance recorded 1,744 1,324 — 1,364 23 23 With an allowance recorded One four 530 530 63 535 19 19 Multi-family 1,058 1,058 71 1,065 31 31 Commercial real estate — — — — — — Land — — — — — — Construction — — — — — — Home equity line of credit — — — — — — Commercial business — — — — — — Automobile — — — — — — Other consumer — — — — — — Total with a related allowance recorded 1,588 1,588 134 1,600 50 50 Total $ 3,332 $ 2,912 $ 134 $ 2,964 $ 73 $ 73 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recorded Cash Basis Interest Recorded December 31, 2016 With no related allowance recorded One four $ 1,207 $ 787 $ — $ 990 $ — $ — Multi-family 346 284 — 479 27 27 Commercial real estate 542 542 — 226 — — Land — — — — — — Construction — — — — — — Home equity line of credit 241 241 — 20 — — Commercial business — — — — — — Automobile — — — — — — Other consumer — — — — — — Total with no related allowance recorded 2,336 1,854 — 1,715 27 27 With an allowance recorded One four 523 526 22 533 27 27 Multi-family 705 705 10 716 37 37 Commercial real estate — — — — — — Land — — — — — — Construction — — — — — — Home equity line of credit — — — — — — Commercial business — — — — — — Automobile — — — — — — Other consumer — — — — — — Total with a related allowance recorded 1,228 1,231 32 1,249 64 64 Total $ 3,564 $ 3,085 $ 32 $ 2,964 $ 91 $ 91 The following table presents the aging of the recorded investment in past due 30 - 59 Days Past due 60 - 89 Days Past due Greater than 90 Days Past Due Still on Accrual Nonaccrual Loans Not Past Due Total September 30, 2017 One four $ — $ — $ — $ 50 $ 35,749 $ 35,799 Multi-family — — — — 12,002 12,002 Commercial real estate — — — 542 19,007 19,549 Land — — — — 158 158 Construction — — — — 1,293 1,293 Home equity line of credit — — — — 7,112 7,112 Commercial business — — — — 1,419 1,419 Automobile — — — — 5 5 Other consumer — — — — 9 9 Total $ — $ — $ — $ 592 $ 76,754 $ 77,346 December 31, 2016 One four $ — $ — $ — $ 787 $ 29,560 $ 30,347 Multi-family — — — 284 9,747 10,031 Commercial real estate — — — 542 14,750 15,292 Land — — — — 170 170 Construction — — — — 499 499 Home equity line of credit — — — 241 5,129 5,370 Commercial business — — — — 1,249 1,249 Automobile — — — — 364 364 Other consumer — — — — 14 14 Total $ — $ — $ — $ 1,854 $ 61,482 $ 63,336 Nonperforming loans (non-accrual and loans past due 90 days and still on accrual) include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Credit Quality Indicators The Bank categorizes loans into risk categories based on relevant information about the ability of a borrower to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. The analysis includes the non-homogeneous loans, such as multi- family, commercial real estate, construction, and commercial loans. The analysis is performed on a quarterly basis. Homogeneous loans are monitored based on past due Substandard Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table reflects the risk category by loans at the dates indicated based on the most recent analysis performed. Pass Substandard Doubtful Total September 30, 2017 One four $ 35,749 $ 50 $ — $ 35,799 Multi-family 12,002 — — 12,002 Commercial real estate 19,007 542 — 19,549 Land 158 — — 158 Construction 1,293 — — 1,293 Home equity lines of credit 7,112 — — 7,112 Commercial business 1,419 — — 1,419 Automobile 5 — — 5 Other consumer 9 — — 9 Total $ 76,754 $ 592 $ — $ 77,346 December 31, 2016 One four $ 29,560 $ 787 $ — $ 30,347 Multi-family 9,747 284 — 10,031 Commercial real estate 14,750 542 — 15,292 Land 170 — — 170 Construction 499 — — 499 Home equity lines of credit 5,129 241 — 5,370 Commercial business 1,249 — — 1,249 Automobile 364 — — 364 Other consumer 14 — — 14 Total $ 61,482 $ 1,854 $ — $ 63,336 Troubled Debt Restructurings Our troubled debt restructurings totaled $1,249 at September 30, 2017 and $1,576 at December 31, 2016 . There were nine September 30, 2017 or the year ended December 31, 2016 . There was one loans modification as troubled debt restructuring with a balance of $50 as of September 30, 2017 , which was reported as nonaccrual. There were two loans modified as troubled debt restructurings with a balance of $345 which were reported as nonaccrual as of December 31, 2016 A loan is considered to be in payment default once it is 90 days contractually past due nine September 30, 2017 , one During the year-ended December 31, 2016 the same loan totaling $284, had payments in default and was reported as non-accrual at December 31, 2016 The Company has allocated $20 to specific reserves on $514 of loans to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2017 . At December 31, 2016 , the Company has allocated $32 to specific reserves on $1,231 of loans to customers whose loan terms have been modified in troubled debt restructurings. The Company has not committed to lend additional amounts as of September 30, 2017 and December 31, 2016 to customers with outstanding loans that are classified as troubled debt restructurings. |