10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

OR

¨           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 0-54850

POLONIA BANCORP, INC.

(Exact name of small business issuer as specified in its charter)

Maryland	45-3181577
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3993 Huntingdon Pike, 3^rd Floor, Huntingdon Valley, Pennsylvania 19006

(Address of principal executive offices)                 (Zip Code)

(215) 938-8800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes     x    No     ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes     x    No     ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filed, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer         ¨ Accelerated Filer         ¨ Non-accelerated filer         ¨

Smaller reporting company     x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes     ¨    No     x

As of August 14, 2013, there were 3,511,276 shares of the registrant’s common stock outstanding.

POLONIA BANCORP, INC.

Table of Contents

		Page No.
Part I.	Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheets at June 30, 2013 and December 31, 2012 (Unaudited)	3
	Consolidated Statements of Income (Loss) for the Three and Six Months Ended June 30, 2013 and 2012 (Unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2013 and 2012 (Unaudited)	5
	Consolidated Statement of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2013 (Unaudited)	6
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012 (Unaudited)	7
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	39
Item 4.	Controls and Procedures	39
Part II.	Other Information
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	40
	Signatures	41

2

PART 1.	FINANCIAL INFORMATION
Item 1.	Financial Statements

POLONIA BANCORP, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30,		December 31,
	2013		2012
ASSETS
Cash and due from banks	$	2,312,700	$	2,489,092
Interest-bearing deposits with other institutions		9,009,957		22,572,574
Cash and cash equivalents		11,322,657		25,061,666
Investment securities available for sale		14,679,868		16,139,282
Investment securities held to maturity (fair value of $57,373,156 and $61,615,682)		56,444,740		58,605,490
Loans held for sale		11,333,280		12,060,174
Loans receivable		148,544,670		117,542,371
Covered loans		18,200,878		21,259,962
Total loans		166,745,548		138,802,333
Less: allowance for loan losses		1,065,809		1,507,770
Net loans		165,679,739		137,294,563
Accrued interest receivable		788,224		815,473
Federal Home Loan Bank stock		3,089,200		2,607,600
Premises and equipment, net		4,898,209		4,916,239
Bank-owned life insurance		4,254,543		4,240,364
FDIC indemnification asset		3,088,031		4,234,931
Other assets		1,624,985		1,488,281
TOTAL ASSETS	$	277,203,476	$	267,464,063
LIABILITIES
Deposits	$	193,345,067	$	196,723,246
FHLB advances – long term		38,000,000		25,500,000
Advances by borrowers for taxes and insurance		1,312,270		942,564
Accrued interest payable		74,695		64,760
Other liabilities		3,340,851		3,048,207
TOTAL LIABILITIES		236,072,883		226,278,777
Commitments and contingencies		-		-
STOCKHOLDERS’ EQUITY
Preferred stock ($.01 par value; 1,000,000 shares authorized; none     issued or outstanding)		-		-
Common stock ($.01 par value; 14,000,000 shares authorized; 3,511,276     shares issued)		35,113		35,113
Additional paid-in-capital		27,457,601		27,453,708
Retained earnings		15,080,611		15,099,489
Unallocated shares held by Employee Stock Ownership Plan “ESOP” (214,414 and     219,668 shares)		(1,730,148)		(1,810,810)
Accumulated other comprehensive income		287,416		407,786
TOTAL STOCKHOLDERS’ EQUITY		41,130,593		41,185,286
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	277,203,476	$	267,464,063

See accompanying notes to the unaudited consolidated financial statements.

3

POLONIA BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2013		2012		2013		2012
INTEREST AND DIVIDEND INCOME
Loans receivable	$	2,087,758	$	1,988,410	$	4,138,756	$	3,985,033
Investment securities		477,384		578,038		973,861		1,166,410
Other interest and dividend income		3,455		4,008		8,274		6,244
Total interest and dividend income		2,568,597		2,570,456		5,120,891		5,157,687
INTEREST EXPENSE
Deposits		412,577		508,098		833,356		1,034,743
FHLB advances – long term		164,376		184,624		325,814		371,720
Advances by borrowers for taxes and insurance		745		4,959		3,472		10,927
Total interest expense		577,698		697,681		1,162,642		1,417,390
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES		1,990,899		1,872,775		3,958,249		3,740,297
Provision for loan losses		25,000		100,515		113,817		190,574
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		1,965,899		1,772,260		3,844,432		3,549,723
NONINTEREST INCOME
Service fees on deposit accounts		35,082		48,281		65,903		80,916
Earnings on bank-owned life insurance		7,984		10,369		14,179		20,915
Gain on sale of loans, net		1,418,250		199,417		2,581,243		340,978
Rental income		70,272		71,470		145,130		144,964
Other		57,510		86,917		88,998		192,832
Total noninterest income		1,589,098		416,454		2,895,453		780,605
NONINTEREST EXPENSE
Compensation and employee benefits		2,133,195		1,252,900		4,127,240		2,415,948
Occupancy and equipment		350,383		353,651		699,324		686,224
Federal deposit insurance premiums		78,039		81,025		155,315		155,156
Data processing expense		108,552		98,679		207,203		198,500
Professional fees		175,263		109,026		332,615		208,594
Other		642,555		343,870		1,254,038		597,374
Total noninterest expense		3,487,987		2,239,151		6,775,735		4,261,796
Income (loss) before income tax expense (benefit)		67,010		(50,437)		(35,850)		68,532
Income tax expense (benefit)		20,107		(14,941)		(16,972)		28,215
NET INCOME (LOSS)	$	46,903	$	(35,496)	$	(18,878)	$	40,318
EARNINGS PER SHARE – Basic and Diluted	$	0.01	$	(0.01)	$	(0.01)	$	0.01

See accompanying notes to the unaudited consolidated financial statements.

4

POLONIA BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net income (loss)	$	46,903	$	(35,496)	$	(18,878)	$	40,318
Changes in net unrealized gain (loss) on investment     securities available for sale		(201,138)		39,664		(182,380)		45,158
Tax effect		68,387		(13,486)		62,010		(15,354)
Total comprehensive income (loss)	$	(85,848)	$	(9,318)	$	(139,248)	$	70,122

See accompanying notes to the unaudited consolidated financial statements.

5

POLONIA BANCORP, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

	Common Stock			Additional Paid-In-		Retained		Unallocated Shared Held		Accumulated Other Comprehensive
	Shares	Amount		Capital		Earnings		by ESOP		Income		Total
Balance, December 31, 2012	3,511,276	$	35,113	$	27,453,708	$	15,099,489	$	(1,810,810)	$	407,786	$	41,185,286
Net loss							(18,878)						(18,878)
Other comprehensive loss, net											(120,370)		(120,370)
Allocation of unearned ESOP shares					3,893				80,662				84,555
Balance, June 30, 2013	3,511,276	$	35,113	$	27,457,601	$	15,080,611	$	(1,730,148)	$	287,416	$	41,130,593

See accompanying notes to the unaudited consolidated financial statements.

6

POLONIA BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Six Months Ended
	June 30,
	2013		2012
OPERATING ACTIVITIES
Net (loss) income	$	(18,878)	$	40,318
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Provision for loan losses		113,817		190,574
Depreciation, amortization, and accretion		803,530		199,885
Proceeds from sale of loans		71,797,153		10,957,692
Net gain on sale of loans		(2,581,243)		(340,978)
Loans originated for sale		(68,489,016)		(12,350,240)
Gain on the sale of other real estate owned		(7,553)		(22,562)
Earnings on bank-owned life insurance		(14,179)		(20,915)
Deferred federal income taxes		(13,260)		(42,802)
Decrease in accrued interest receivable		27,249		86,965
Increase (decrease) in accrued interest payable		9,935		(12,768)
Increase in accrued payroll and commissions		267,294		-
Compensation expense for stock options, ESOP and restricted stock		84,555		128,841
Other, net		(13,111)		(342,827)
Net cash provided by (used for) operating activities		1,966,293		(1,528,817)
INVESTING ACTIVITIES
Investment securities available for sale:
Proceeds from principal repayments and maturities		1,291,574		2,745,831
Purchases		-		(1,805,800)
Investment securities held to maturity:
Proceeds from principal repayments and maturities		8,093,106		5,184,255
Purchases		(6,062,361)		(4,490,347)
(Increase) decrease in loans receivable, net		(31,734,121)		14,347,144
Decrease in covered loans		3,082,243		2,805,130
Purchases of Federal Home Loan Bank stock		(772,000)		-
Redemptions of Federal Home Loan Bank stock		290,400		188,900
Proceeds from the sale of other real estate owned		234,351		349,947
Payments received from FDIC under loss share agreement		590,117		364,420
Purchase of premises and equipment		(210,138)		(245,494)
Net cash (used for) provided by investing activities		(25,196,829)		19,443,986
FINANCING ACTIVITIES
Decrease in deposits, net		(3,378,179)		(1,978,007)
Proceeds from Federal Home Loan Bank advances – long-term		16,000,000		-
Repayment of Federal Home Loan Bank advances – long-term		(3,500,000)		(5,292,796)
Increase (decrease) in advances by borrowers for taxes and insurance, net		369,706		(58,442)
Net cash provided by (used for) financing activities		9,491,527		(7,329,245)
Increase (decrease) in cash and cash equivalents		(13,739,009)		10,585,924
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		25,061,666		17,416,198
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	11,322,657	$	28,002,122
SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash paid:
Interest	$	1,152,707	$	1,430,158
Income taxes		300,000		200,000
Noncash items:
Loans transferred to other real estate owned		208,759		269,263

See accompanying notes to the unaudited consolidated financial statements.

7

POLONIA BANCORP, INC.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.            Summary of Significant Accounting Policies

Basis of Presentation

Polonia Bancorp, Inc. (“Polonia Bancorp” or the “Company”), a Maryland corporation, was incorporated in August 2011 and organized by Polonia MHC, Polonia Bancorp, and Polonia Bank (the “Bank”) to facilitate the second-step conversion of Polonia MHC from the mutual holding company structure to the stock holding company structure (the “Conversion”). Upon consummation of the Conversion, which occurred on November 9, 2012, the Company became the holding company for the Bank and a 100 percent publicly owned stock holding company. As a result of the Conversion, each share of Polonia Bancorp’s common stock owned by public shareholders was exchanged for 1.1136 shares of the Company’s common stock, with cash being paid in lieu of issuing fractional shares. As a result of the Conversion, all share information has been revised to reflect the conversion rate.

               Concurrent with the Conversion, the Company sold a total of 2,025,078 shares of common stock in the subscription and community offerings at $8.00 per share, including 136,693 shares to the Polonia Bank Employee Stock Ownership Plan (“ESOP”). The Company had common shares outstanding of 3,511,276 after the conversion, offering, and exchange.

              The Bank is a federally chartered savings bank located in Huntingdon Valley, Pennsylvania, whose principal sources of revenue derive from its investment securities portfolio and its portfolio of residential real estate, commercial real estate, and consumer loans, as well as a variety of deposit services offered to its customers through seven offices located in the Greater Philadelphia area. The Bank is subject to regulation by the office of Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”).

              The consolidated financial statements include the accounts of the Bank and the Bank’s wholly owned subsidiaries, PBHMC (“PBMHC”), a Delaware investment company and Community Abstract Agency, LLC (“CAA”). CAA provides title insurance on loans secured by real estate. All significant intercompany transactions have been eliminated in consolidation. The investment in subsidiaries on the parent Company’s financial statements is carried at the parent Company’s equity in the underlying net assets.

                On December 10, 2010, Polonia Bank assumed certain of the deposits and acquired certain assets of Earthstar Bank (“Earthstar”), a state charted bank from the FDIC as receiver for Earthstar.

               The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2013 are not necessarily indicative of the results that may be expected for the full year. The December 31, 2012 balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). For additional information, refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2012.

8

               Use of Estimates in the Preparation of Financial Statements. The accounting principles followed by the Company and the methods of applying these principles conform to GAAP and to general practice within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Consolidated Balance Sheet date and reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and the fair value of financial instruments.

               Recent Accounting and Regulatory Pronouncements

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The Company has provided the necessary disclosures in Note 11.

               In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance under GAAP. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. GAAP does not include specific guidance on accounting for such obligations with joint and several liabilities, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangements on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in the update are effective for fiscal years, and the interim periods with those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. This ASU is not expected to have a significant impact on the Company’s financial statements.

               Reclassification of Comparative Amounts

Certain items previously reported have been reclassified to conform to the current year’s reporting format. Such reclassifications did not affect consolidated net income (loss) or consolidated stockholders’ equity.

9

2.           Earnings Per Share

The following table set forth the composition of the weighted average shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net Income (Loss):	$	46,903	$	(35,496)	$	(18,878)	$	40,318
Weighted average number of shares issued		3,657,607		3,306,250		3,657,607		3,306,250
Less weighted average number of treasury stock shares		-		(151,136)		-		(151,136)
Less weighted average number of unearned ESOP shares		(212,158)		(82,829)		(214,414)		(83,909)
Less weighted average number of nonvested restricted     stock awards		-		(4,172)		-		(4,651)
Weighted average shares outstanding basic		3,445,449		3,068,113		3,443,193		3,066,554
Weighted average shares outstanding diluted		3,445,449		3,068,113		3,443,193		3,066,554
Earnings per share:
Basic	$	0.01	$	(0.01)	$	(0.01)	$	0.01
Diluted		0.01		(0.01)		(0.01)		0.01

Options to purchase 171,386 shares of common stock as of June 30, 2013 and 2012, as well as 2,285 shares of restricted stock as of June 30, 2012, were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive.

10

3.           Investment Securities

The amortized cost and fair value of investment securities available for sale are summarized as follows:

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
Mortgage-backed securities:
Fannie Mae	$	2,591,655	$	169,516	$	-	$	2,761,171
Freddie Mac		98,305		5,862		-		104,167
Government National Mortgage Association		612,944		73,951		(2)		686,893
Collateralized mortgage obligations- government sponsored entities		1,757,664		50,510		(14,298)		1,793,876
Total mortgage-backed securities		5,060,568		299,839		(14,300)		5,346,107
Corporate securities		9,183,822		210,093		(60,154)		9,333,761
Total	$	14,244,390	$	509,932	$	(74,454)	$	14,679,868
Held to Maturity
Mortgage-backed securities:
Fannie Mae	$	41,563,536	$	1,227,104	$	(230,975)	$	42,559,665
Freddie Mac		14,881,204		238,137		(305,850)		14,813,491
Total mortgage-backed securities	$	56,444,740	$	1,465,241	$	(536,825)	$	57,373,156

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
Mortgage-backed securities:
Fannie Mae	$	3,361,216	$	264,117	$	-	$	3,625,333
Freddie Mac		128,634		9,158		-		137,792
Government National Mortgage Association		693,893		100,342		-		794,235
Collateralized mortgage obligations- government sponsored entities		2,166,686		69,368		(26,021)		2,210,033
Total mortgage-backed securities		6,350,429		442,985		(26,021)		6,767,393
Corporate securities		9,170,995		240,789		(39,895)		9,371,889
Total	$	15,521,424	$	683,774	$	(65,916)	$	16,139,282
Held to Maturity
Mortgage-backed securities:
Fannie Mae	$	44,893,424	$	2,510,301	$	-	$	47,403,725
Freddie Mac		13,712,066		499,891		-		14,211,957
Total mortgage-backed securities	$	58,605,490	$	3,010,192	$	-	$	61,615,682

11

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous loss position.

	June 30, 2013
	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities:
Fannie Mae	$	9,814,310	$	(230,975)	$	-	$	-	$	9,814,310	$	(230,975)
Freddie Mac		8,337,248		(305,850)		-		-		8,337,248		(305,850)
Government National Mortgage      Association		466		(2)		-		-		466		(2)
Collateralized mortgage obligations- government sponsored entities		170,098		(4,497)		341,904		(9,801)		512,002		(14,298)
Total mortgage-backed securities		18,322,122		(541,324)		341,904		(9,801)		18,664,026		(551,125)
Corporate securities		2,830,029		(49,354)		489,200		(10,800)		3,319,229		(60,154)
Total	$	21,152,151	$	(590,678)	$	831,104	$	(20,601)	$	21,983,255	$	(611,279)

	December 31, 2012
	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities:
Collateralized mortgage obligations- government sponsored entities	$	445,009	$	(19,122)	$	248,884	$	(6,899)	$	693,893	$	(26,021)
Total mortgage-backed securities		445,009		(19,122)		248,884		(6,899)		693,893		(26,021)
Corporate securities		980,450		(4,065)		964,170		(35,830)		1,944,620		(39,895)
Total	$	1,425,459	$	(23,187)	$	1,213,054	$	(42,729)	$	2,638,513	$	(65,916)

The Company reviews its position quarterly and has determined that at June 30, 2013, the declines outlined in the above table represent temporary declines and the Company does not intend to sell these securities and does not believe they will be required to sell these securities before recovery of their cost basis, which may be at maturity. There were 22 positions that were temporarily impaired at June 30, 2013. The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period.

The amortized cost and fair value of debt securities at June 30, 2013, by contractual maturity, are shown below. Mortgage-backed securities provide for periodic, general monthly, payments of principal and interest and have contractual maturities ranging from 1 to 32 years. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

12

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	1,974,113	$	2,019,727	$	-	$	-
Due after one year through five years		5,754,317		5,878,275		-		-
Due after five years through ten years		3,405,409		3,504,129		11,665,672		12,061,243
Due after ten years		3,110,551		3,277,737		44,779,068		45,311,913
Total	$	14,244,390	$	14,679,868	$	56,444,740	$	57,373,156

The Company had no sales of investment securities for the three and six month periods ended June 30, 2013 and 2012.

4.           Loans Receivable

Loans receivable consist of the following:

	June 30,		December 31,
	2013		2012
Mortgage Loans:
One-to-four family	$	134,577,872	$	101,792,670
Multi-family and commercial real estate		7,850,155		8,501,233
		142,428,027		110,293,903
Home equity loans		2,499,053		2,489,433
Home equity lines of credit (“HELOCs”)		812,821		1,852,532
Education loans		1,959,389		2,228,512
Other consumer loans		341		1,629
Non-covered consumer loans purchased		897,589		899,066
Covered loans		18,200,878		21,259,962
		166,798,098		139,025,037
Less:
Net deferred loan fees		52,550		222,704
Allowance for loan losses		1,065,809		1,507,770
Total	$	165,679,739	$	137,294,563

The components of covered loans by portfolio class as of June 30, 2013 and December 31, 2012 were as follows:

	June 30,		December 31,
	2013		2012
Mortgage loans:
One-to-four family	$	10,627,707	$	11,652,568
Multi-family and commercial real estate		7,460,157		9,577,938
		18,087,864		21,230,506
Commercial		113,014		29,456
Total Loans	$	18,200,878	$	21,259,962

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The carrying value of loans acquired and accounted for in accordance with ASC 310-30 was determined by projecting discounted contractual cash flows.

The outstanding balance, including interest, and carrying values of loans acquired were as follows:

	June 30, 2013				December 31, 2012
			Acquired Loans				Acquired Loans
	Acquired Loans		Without Specific		Acquired Loans		Without Specific
	With Specific		Evidence of		With Specific		Evidence of
	Evidence of		Deterioration in		Evidence of		Deterioration in
	Deterioration in		Credit Quality		Deterioration in		Credit Quality
	Credit Quality		(ASC 310-30		Credit Quality		(ASC 310-30
	(ASC 310-30)		Analogized)		(ASC 310-30)		Analogized)
Outstanding balance	$	1,300,860	$	30,152,302	$	2,505,032	$	35,002,943
Carrying amount, net of allowance	$	781,066	$	18,302,349	$	982,086	$	21,176,942

During the six months ended June 30, 2013, the Company recorded a provision and charge-off of $38,817 for increases in the expected losses for acquired loans with specific evidence of deterioration in credit quality. For the year ended December 31, 2012 the Company recorded a provision of $15,052 for increases in the expected losses for acquired loans with specific evidence of deterioration in credit quality. For the year ended December 31, 2012, the allowance for loan losses of $73,270 which was recorded in 2011 was reversed by $20,805 with the remainder of $52,465 being charged-off.

14

Changes in the accretable yield for acquired loans were as follows for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
	Acquired Loans		Acquired Loans
	Without Specific		Without Specific
	Evidence of		Evidence of
	Deterioration in		Deterioration in
	Credit Quality		Credit Quality
	(ASC 310-30		(ASC 310-30
	Analogized)		Analogized)
Balance at beginning of period	$	9,927,911	$	11,044,664
Reclassifications and other		(368,683)		(1,122,827)
Accretion		(334,753)		(697,362)
Balance at end of period	$	9,224,475	$	9,224,475

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
			Acquired Loans				Acquired Loans
	Acquired Loans		Without Specific		Acquired Loans		Without Specific
	With Specific		Evidence of		With Specific		Evidence of
	Evidence of		Deterioration in		Evidence of		Deterioration in
	Deterioration in		Credit Quality		Deterioration in		Credit Quality
	Credit Quality		(ASC 310-30		Credit Quality		(ASC 310-30
	(ASC 310-30)		Analogized)		(ASC 310-30)		Analogized)
Balance at beginning of period	$	36,434	$	8,165,501	$	48,637	$	8,680,970
Reclassifications and other		-		4,782,910		-		4,645,794
Accretion		(36,434)		(360,243)		(48,637)		(738,596)
Balance at end of period	$	-	$	12,588,168	$	-	$	12,588,168

The $334,753 and $697,362 recognized as accretion represents the interest income earned on acquired loans for the three and six months ended June 30, 2013. Included in reclassification and other for loans acquired without specific evidence of deterioration in credit quality was $9,069 and $146,799 of reclassifications from non-accretable discounts to accretable discounts for the three and six months ended June 30, 2013. The remaining $(377,752) and $(1,269,626) change in the accretable yield represents reductions in contractual interest due to contractual principal prepayments for the three and six months ended June 30, 2013.

5.      Allowance for Loan Losses

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: 1-4 family, multi-family and commercial real estate, commercial, home equity, home equity lines of credit, and education and other loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over a three year period for all portfolio segments. Certain qualitative factors are then added to the historical allocation percentage to arrive and get the adjusted factor to be applied to nonclassified loans. The following qualitative factors are analyzed for each portfolio segment:

15

· Levels of and trends in delinquencies

· Trends in volume and terms

· Trends in credit quality ratings

· Changes in management and lending staff

· Economic trends

· Concentrations of credit

· Changes in lending policies

· Changes in loan review

· External factors

These qualitative factors are reviewed each quarter and adjusted based upon relevant changes within the portfolio.

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet date. The Company considers the allowance for loan losses adequate to cover loan losses inherent in the loan portfolio, at June 30, 2013. Included in the allowance for loan losses is $15,052 related to loans covered by loss share agreements with the FDIC as of June 30, 2013 and December 31, 2012, respectively.

16

The following tables summarize changes in the allowance for loan losses:

	Allowance for Loan Losses   For the Three and Six Months Ended June 30, 2013 and 2012
	One-to-  Four Family  Real Estate		Multi-Family  and  Commercial   Real Estate		Commercial		Home  Equity		HELOC’s		Education  and Other  Consumer		Total
Three Months Ended June 30, 2013
Allowance for Loan Losses:
Balance at beginning of period	$	687,133	$	779,608	$	-	$	12,851	$	9,314	$	10,527	$	1,499,433
Provision (credit) for loan losses		45,228		(109,216)		-		(3,104)		98,814		(2,722)		25,000
Charge-offs		-		(359,994)		-		-		(100,958)		-		(460,952)
Recoveries		2,328		-		-		-		-		-		2,328
Net (charge-offs) recoveries		2,328		(359,994)		-		-		(100,958)		-		(458,624)
Balance at end of period	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Three Months Ended June 30, 2012
Allowance for Loan Losses:
Balance at beginning of period	$	597,479	$	499,576	$	-	$	19,640	$	8,494	$	20,763	$	1,145,952
Provision (credit) for loan losses		122,375		(21,483)		-		(833)		1,284		(828)		100,515
Charge-offs		-		-		-		-		-		-		-
Recoveries		528		-		-		-		-		-		528
Net (charge-offs) recoveries		528		-		-		-		-		-		528
Balance at end of period	$	720,382	$	478,093	$	-	$	18,807	$	9,778	$	19,935	$	1,246,995
Six Months Ended June 30, 2013
Allowance for Loan Losses:
Balance at beginning of period	$	677,877	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,507,770
Provision (credit) for loan losses		151,638		(101,034)		-		(4,178)		70,736		(3,345)		113,817
Charge-offs		(97,154)		(359,994)		-		-		(100,958)		-		(558,106)
Recoveries		2,328		-		-		-		-		-		2,328
Net (charge-offs) recoveries		(94,826)		(359,994)		-		-		(100,958)		-		(555,778)
Balance at end of period	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Six Months Ended June 30, 2012
Allowance for Loan Losses:
Balance at beginning of period	$	611,280	$	618,233	$	-	$	19,304	$	8,835	$	21,356	$	1,279,008
Provision (credit) for loan losses		331,689		(140,140)		-		(497)		943		(1,421)		190,574
Charge-offs		(223,418)		-		-		-		-		-		(223,418)
Recoveries		831		-		-		-		-		-		831
Net (charge-offs) recoveries		(222,587)		-		-		-		-		-		(222,587)
Balance at end of period	$	720,382	$	478,093	$	-	$	18,807	$	9,778	$	19,935	$	1,246,995

The following tables present the allowance for credit losses and recorded investments in loans by category:

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	At June 30, 2013
	One-to- Four Family Real Estate		Multi-family  and Commercial Real Estate		Commercial		Home Equity		HELOCs		Education and Other Consumer		Total
Allowance for loan losses:
Ending balance	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Ending balance: individually    evaluated for impairment	$	29,288	$	-	$	-	$	-	$	-	$	-	$	29,288
Ending balance: collectively    evaluated for impairment	$	705,401	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,036,521
Ending balance: loans acquired    with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans:
Ending balance	$	145,205,579	$	15,310,312	$	113,014	$	2,499,053	$	812,821	$	2,857,319	$	166,798,098
Ending balance: individually    evaluated for impairment	$	2,448,881	$	614,308	$	-	$	10,579	$	-	$	-	$	3,073,768
Ending balance: collectively    evaluated for impairment	$	132,128,991	$	7,235,847	$	-	$	2,488,474	$	812,821	$	1,959,730	$	144,625,863
Ending balance: loans acquired    with deteriorated credit quality	$	10,627,707	$	7,460,157	$	113,014	$	-	$	-	$	897,589	$	19,098,467

	At December 31, 2012
	One-to- Four Family Real Estate		Multi-family  and Commercial Real Estate		Commercial		Home Equity		HELOCs		Education and Other Consumer		Total
Allowance for loan losses:
Ending balance	$	677,877	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,507,770
Ending balance: individually    evaluated for impairment	$	39,640	$	-	$	-	$	-	$	-	$	-	$	39,640
Ending balance: collectively    evaluated for impairment	$	638,237	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,468,130
Ending balance: loans acquired    with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans:
Ending balance	$	113,445,238	$	18,079,171	$	29,456	$	2,489,433	$	1,852,532	$	3,129,207	$	139,025,037
Ending balance: individually    evaluated for impairment	$	1,628,519	$	1,125,968	$	-	$	-	$	-	$	-	$	2,754,487
Ending balance: collectively    evaluated for impairment	$	100,164,151	$	7,375,265	$	-	$	2,489,433	$	1,852,532	$	2,230,141	$	114,111,522
Ending balance: loans acquired    with deteriorated credit quality	$	11,652,568	$	9,577,938	$	29,456	$	-	$	-	$	899,066	$	22,159,028

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Credit Quality Information

               The following tables represent credit exposures by internally assigned grades at June 30, 2013 and December 31, 2012. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans.

               The Company’s internally assigned grades are as follows:

               Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. There are six sub-grades within the pass category to further distinguish the loan.

               Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

               Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

               Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

               Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

               The following table presents classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful, and Loss within the internal risk rating system as of June 30, 2013 and December 31, 2012. 

	June 30,				December 31,
	2013				2012
	Multi-Family				Multi-Family
	and Commercial				and Commercial
	Real Estate		Commercial		Real Estate		Commercial
Pass	$	11,004,155	$	113,014	$	11,955,576	$	29,456
Special Mention		2,580,431		-		2,645,840		-
Substandard		1,725,726		-		3,477,755		-
Doubtful		-		-		-		-
Loss		-		-		-		-
Total	$	15,310,312	$	113,014	$	18,079,171	$	29,456

Multi-family and commercial real estate and commercial loans are categorized by risk classification as of June 30, 2013 and December 31, 2012. For one –to-four family real estate, home equity, HELOCs, and education and other loans, the Company evaluates credit quality based on the performance of the individual credits. Payment activity is reviewed by management on a monthly basis to determine how loans are performing. Loans are considered to be nonperforming when they become 90 days past due.

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The following table presents recorded investment in the loan classes based on payment activity as of June 30, 2013 and December 31, 2012:

	At June 30, 2013
	One-to-  Four Family  Real Estate		Home Equity		HELOCs		Education  and Other  Consumer		Non-covered  Consumer Loans  Purchased
Performing	$	142,567,290	$	2,488,474	$	812,821	$	1,812,085	$	897,589
Nonperforming		2,638,289		10,579		-		147,645		-
Total	$	145,205,579	$	2,499,053	$	812,821	$	1,959,730	$	897,589

	At December 31, 2012
	One-to-  Four Family  Real Estate		Home  Equity		HELOCs		Education  and Other  Consumer		Non-covered  Consumer Loans  Purchased
Performing	$	111,617,358	$	2,479,104	$	1,852,532	$	2,077,866	$	798,905
Nonperforming		1,827,880		10,329		-		152,275		100,161
Total	$	113,445,238	$	2,489,433	$	1,852,532	$	2,230,141	$	899,066

Following is a table which includes an aging analysis of the recorded investment of past due loans:

	At June 30, 2013
	30-59 Days  Past Due		60-89 Days  Past Due		90 Days   Or Greater		Total Past  Due		Current		Total  Loans  Receivable		Recorded  Investment  >  90 Days and  Accruing
One-to-four family    real estate	$	238,568	$	-	$	2,638,289	$	2,876,857	$	142,328,722	$	145,205,579	$	-
Multi-family and														-
commercial real estate		-		-		781,956		781,956		14,528,356		15,310,312		-
Commercial		-		68,845		-		68,845		44,169		113,014		-
Home equity		-		-		10,579		10,579		2,488,474		2,499,053		-
HELOC’s		-		-		-		-		812,821		812,821		-
Education and other														-
consumer		39,848		29,460		147,645		216,953		1,742,777		1,959,730		-
Non-covered consumer														-
loans purchased		8,976		-		-		8,976		888,613		897,589		-
Total	$	287,392	$	98,305	$	3,578,469	$	3,964,166	$	162,833,932	$	166,798,098	$	-

	At December 31, 2012
	30-59 Days  Past Due		60-89 Days  Past Due		90 Days   Or Greater		Total Past  Due		Current		Total Loans  Receivable		Recorded  Investment >  90 Days and  Accruing
One-to-four family
real estate	$	941,721	$	55,802	$	1,827,880	$	2,825,403	$	110,619,835	$	113,445,238	$	-
Multi-family and														-
commercial real estate		637,442		-		1,484,495		2,121,937		15,957,234		18,079,171		-
Commercial		-		-		-		-		29,456		29,456		-
Home equity		-		-		10,329		10,329		2,479,104		2,489,433		-
HELOC’s		-		-		-		-		1,852,532		1,852,532		-
Education and other														-
consumer		46,422		41,691		152,275		240,388		1,989,753		2,230,141		-
Non-covered consumer														-
loans purchased		-		-		100,161		100,161		798,905		899,066		-
Total	$	1,625,585	$	97,493	$	3,575,140	$	5,298,218	$	133,726,819	$	139,025,037	$	-

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Nonaccrual Loans

               Loans are generally considered for nonaccrual status upon 90 days delinquency. When a loan is placed in nonaccrual status, previously accrued but unpaid interest is deducted from interest income. 

               On the following table are the loans on nonaccrual status as of June 30, 2013 and December 31, 2012. The balances are presented by class of loans.

	June 30,  2013		December 31,  2012
One-to-four family mortgage	$	2,638,289	$	1,827,880
Multi-family and commercial real estate		781,956		1,484,495
Home Equity		10,579		10,329
Education and other consumer		147,645		152,275
Non-covered consumer loans purchased		-		100,161
Total	$	3,578,469	$	3,575,140

               Interest income on loans would have been increased by approximately $108,201 during the six month period ended June 30, 2013 and $121,717 during the period ending December 31, 2012, if these loans had performed in accordance with their original terms. Management evaluates commercial real estate loans which are 90 days or more past due for impairment.

21

Impaired Loans

               The following table presents the recorded investment and unpaid principal balances for impaired loans and related allowance, if applicable. Also, presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	June 30, 2013
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Witn no related allowance recorded:
One -to-four family real estate	$	1,489,289	$	1,901,548	$	-	$	794,846	$	690
Multi-family and commercial real estate		894,127		996,037		-		895,078		18,650
Home equity		10,579		10,579		-		1,763		-
With an allowance recorded:
One -to-four family real estate	$	957,499	$	957,499	$	29,288	$	853,136	$	17,512
Multi-family and commercial real estate		-		-		-		-		-
Home equity		-		-		-		-		-
Total:
One -to-four family real estate	$	2,446,788	$	2,859,047	$	29,288	$	1,647,982	$	18,202
Multi-family and commercial real estate		894,127		996,037		-		895,078		18,650
Home equity		10,579		10,579		-		1,763		-

	December 31, 2012
	Recorded  Investment		Unpaid  Principal  Balance		Related  Allowance		Average  Recorded  Investment		Interest  Income  Recognized
With no related allowance recorded:
One-to-four family real estate	$	701,324	$	837,806	$	-	$	489,509	$	116
Multi-family and commercial real estate		1,405,787		1,867,431		-		1,107,636		56,790
With an allowance recorded:
One-to-four family real estate	$	927,195	$	936,739	$	39,640	$	944,346	$	28,304
Multi-family and commercial real estate		-		-		-		-		-
Total:
One-to-four family real estate	$	1,628,519	$	1,774,545	$	39,640	$	1,433,855	$	28,420
Multi-family and commercial real estate		1,405,787		1,867,431		-		1,107,636		56,790

Loan Modifications and Troubled Debt Restructurings

               A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrowers’ financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk.

               Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2013 and 2012, respectively were as follows:

22

(In Thousands, Except Number of Contracts)	Three Months Ended June 30,
	2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding  Recorded Investment		Post- Modification  Outstanding Recorded Investment
Troubled debt restructurings
One-to-four family mortgage	1	$	160,992	$	160,992	-	$	-	$	-
Total	1	$	160,992	$	160,992	-	$	-	$	-

(In Thousands, Except Number of Contracts)	Six Months Ended June 30,
	2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Troubled debt restructurings
One-to-four family mortgage	2	$	283,456	$	218,292	-	$	-	$	-
Total	2	$	283,456	$	218,292	-	$	-	$	-

               There were no TDRs modified within the past year that subsequently defaulted during the three or six month periods ended June 30, 2013 and 2012.

6. Indemnification Asset

Changes in the FDIC indemnification asset during the six months ended June 30, 2013 and the year ended December 31, 2012 are as follows:

	June 30, 2013		December 31, 2012
Balance at the beginning of year	$	4,234,931	$	5,218,506
Cash payments received or receivable due from the FDIC		(590,117)		(408,610)
Increase in FDIC share of estimated losses		-		-
Net amortization		(556,783)		(574,965)
Balance at the end of the period	$	3,088,031	$	4,234,931

 

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7. Deposits

Deposit accounts are summarized as follows for the periods ending June 30, 2013 and December 31, 2012.

	June 30, 2013					December 31, 2012
	Amount		%			Amount		%
Non-interest bearing demand	$	6,435,161		3.33	%	$	7,611,053		3.87	%
NOW accounts		14,491,307		7.50			13,888,098		7.06
Money market deposit		38,273,402		19.80			39,842,088		20.25
Savings		30,084,194		15.56			30,093,442		15.30
Time deposits		104,061,003		53.81			105,288,565		53.52
Total	$	193,345,067		100.00	%	$	196,723,246		100.00	%

8. Life Insurance and Retirement Plan

The Bank has a Supplemental Life Insurance Plan (the “Plan”) for three officers of the Bank. The Plan requires the Bank to make annual payments to the beneficiaries upon their death. In connection with the Plan, the Bank funded life insurance policies with an original investment of $3,085,000 on the lives of those officers. These life insurance policies currently have a death benefit of $11,975,329. The cash surrender value of these policies totaled $4,254,543 and $4,240,364 at June 30, 2013 and December 31, 2012, respectively. The Plan provides that death benefits totaling $6.0 million at June 30, 2013, will be paid to their beneficiaries in the event the officers should die.

Additionally, the Bank has a Supplemental Retirement Plan (“SRP”) for the Bank’s current and former presidents as well as two senior officers of the Bank. At June 30, 2013 and December 31, 2012, $1,794,777 and $1,755,140 had been accrued under these SRPs, respectively, and this liability and the related deferred tax assets of $610,224 and $596,748 for the respective periods, are recognized in the financial statements. The deferred compensation for the current and former president is to be paid for the remainder of their lives commencing with the first year following the termination of employment after completion of required service. The current president's payment is based on 60 percent of his final full year annual gross taxable compensation adjusted annually for the change in the consumer price index or 4 percent, whichever is higher. The former president’s payment is based on 60 percent of his final full year annual gross taxable compensation adjusted annually for the change in the consumer price index. The deferred compensation for the two senior officers is to be paid at the rate of $50,000 per year for twenty years commencing five years after retirement or age 65, whichever comes first, following the termination of employment. The Company records periodic accruals for the cost of providing such benefits by charges to income. The amount accrued was approximately $50,841 and $61,445 for the three months ended June 30, 2013 and 2012 and $103,237 and $124,277 for the six months ended June 30, 2013 and 2012, respectively.

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The following table illustrates the components of the net periodic benefit cost for the supplemental retirement plan:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Components of net periodic benefit cost:
Service cost	$	23,417	$	36,109	$	48,389	$	73,604
Interest cost		27,424		25,336		54,848		50,673
Net periodic benefit cost	$	50,841	$	61,445	$	103,237	$	124,277

9. Fair Value Measurements

GAAP establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by GAAP hierarchy are as follows:

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.

Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the assets reported on the consolidated balance sheets at their fair value as of June 30, 2013 and December 31, 2012, respectively, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

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For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012, are as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Available for Sale
Mortgage-backed securities	$	-	$	5,346,107	$	-	$	5,346,107
Corporate Securities		-		9,333,761		-		9,333,761
Total	$	-	$	14,679,868	$	-	$	14,679,868

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Available for Sale
Mortgage-backed securities	$	-	$	6,767,393	$	-	$	6,767,393
Corporate Securities		-		9,371,889		-		9,371,889
Total	$	-	$	16,139,282	$	-	$	16,139,282

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012, are as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	-	$	-	$	3,322,206	$	3,322,206
Other real estate owned		-		-		128,809		128,809

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	-	$	-	$	2,994,666	$	2,994,666
Other real estate owned		-		-		171,826		171,826

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The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value.

	June 30, 2013 Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
Impaired loans	$	3,322,206	Appraisal of	Appraisal
			collateral (1)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%
Other real estate owned		128,809	Appraisal of	Appraisal
			collateral (1), (3)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%

	December 31, 2012 Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
Impaired loans	$	2,994,666	Appraisal of	Appraisal
			collateral (1)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%
Other real estate owned		171,826	Appraisal of	Appraisal
			collateral (1), (3)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

All of the securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions among other things.

Impaired loans are reported at fair value utilizing level three inputs. For these loans, a review of the collateral is conducted and an appropriate allowance for loan losses is allocated to the loan. At June 30, 2013, and December 31, 2012 impaired loans with a carrying value of $3,351,494 and $3,034,306 were reduced by specific valuation allowances totaling $29,288 and $39,640 resulting in a net fair value of $3,322,206 and $2,994,666 based on Level 3 inputs.

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Other real estate owned is reported at fair value utilizing level 3 inputs. For these assets, a review of the collateral and an analysis of the expenses related to selling these assets is conducted and a charge-offs recorded to the allowance for loan losses.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiplies derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. As of June 30, 2013 and December 31, 2012, all of the financial assets measured at fair value, on a recurring basis, utilized the market approach.

10. Fair Value Disclosure

The estimated fair values of the Company’s financial instruments are summarized below:

	June 30, 2013				December 31,2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	11,322,657	$	11,322,657	$	25,061,666	$	25,061,666
Investment securities
Available for sale		14,679,868		14,679,868		16,139,282		16,139,282
Held to maturity		56,444,740		57,373,156		58,605,490		61,615,682
Loans held for sale		11,333,280		11,333,280		12,060,174		12,060,174
Net loans receivable		165,679,739		166,383,868		137,294,563		143,651,214
Accrued interest receivable		788,224		788,224		815,473		815,473
Federal Home Loan Bank stock		3,089,200		3,089,200		2,607,600		2,607,600
Bank-owned life insurance		4,254,543		4,254,543		4,240,364		4,240,364
FDIC indemnification asset		3,088,031		3,088,031		4,234,931		4,234,931
Financial liabilities:
Deposits	$	193,345,067	$	194,937,200	$	196,723,246	$	198,186,758
FHLB advances – long-term		38,000,000		39,094,400		25,500,000		27,392,100
Advances by borrowers for taxes and insurance		1,312,270		1,312,270		942,564		942,564
Accrued interest payable		74,695		74,695		64,760		64,760

 

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The estimated fair values of the Company’s financial instruments are as follows:

	Fair Value Measurements at June 30, 2013
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	11,322,657	$	-	$	-	$	11,322,657
Investment securities
Available for sale		-		14,679,868		-		14,679,868
Held to maturity		-		57,373,156		-		57,373,156
Loans held for sale		11,333,280		-		-		11,333,280
Net loans receivable		-		-		166,383,868		166,383,868
Accrued interest receivable		788,224		-		-		788,224
Federal Home Loan Bank stock		3,089,200		-		-		3,089,200
Bank-owned life insurance		4,254,543		-		-		4,254,543
FDIC indemnification asset		-		-		3,088,031		3,088,031
Financial liabilities:
Deposits		89,284,064		-		105,653,136		194,937,200
FHLB advance – long-term		-		-		39,094,400		39,094,400
Advances by borrowers for taxes and insurance		1,312,270		-		-		1,312,270
Accrued interest payable		74,695		-		-		74,695

	Fair Value Measurements at December 31, 2012
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	25,061,666	$	-	$	-	$	25,061,666
Investment securities
Available for sale		-		16,139,282		-		16,139,282
Held to maturity		-		61,615,682		-		61,615,682
Loans held for sale		12,060,174		-		-		12,060,174
Net loans receivable		-		-		143,651,214		143,651,214
Accrued interest receivable		815,473		-		-		815,473
Federal Home Loan Bank stock		2,607,600		-		-		2,607,600
Bank-owned life insurance		4,240,364		-		-		4,240,364
FDIC indemnification asset		-		-		4,234,931		4,234,931
Financial liabilities:
Deposits		91,434,681		-		106,752,077		198,186,758
FHLB advance – long-term		-		-		27,392,100		27,392,100
Advances by borrowers for taxes and insurance		942,564		-		-		942,564
Accrued interest payable		64,760		-		-		64,760

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Financial instruments are defined as cash, evidence of ownership interest in an entity, or a contract that creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument.

If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formula or stimulation modeling. As many of these assumptions result from judgments made by management based upon estimates that are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in assumptions on which the estimated fair values are based may have a significant impact on the resulting estimated fair values.

As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company.

The Company employed simulation modeling in determining the estimated fair value of financial instruments for which quoted market prices were not available based upon the following assumptions.

Cash and Cash Equivalents, Accrued Interest Receivable, Federal Home Loan Bank Stock, Accrued Interest Payable and Advances by Borrowers for Taxes and Insurance

The fair value is equal to the current carrying value.

Loans Held for Sale

The fair value of mortgage loans held for sale is determined, when possible, using Level 1 quoted secondary-market prices. If no such quoted price exists, the fair value of a loan is determined based on sales of similar assets.

All mortgage loans held for sale are sold 100% servicing released and made in compliance with applicable loan criteria and underwriting standards established by the buyers. These loans are originated according to applicable federal and state laws and follow proper standards for servicing valid liens.

Investment Securities Available for Sale and Held to Maturity

The fair value of investment securities available for sale and held to maturity is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities.

Net Loans Receivable

The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value.

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FDIC Indemnification Asset

As part of the Purchase and Assumption Agreements entered into in connection with the acquisition of Earthstar, the Bank and the FDIC entered into loss sharing agreements. These agreements cover realized losses on loans, which are more fully described in Note 6.

Under the agreement, the FDIC agreed to reimburse the Bank for 80% of realized losses. The indemnification asset was originally recorded at fair value on the acquisition date (December 10, 2010) and at June 30, 2013 and December 31, 2012, the carrying value of the FDIC indemnification asset was $3.1 million and $4.2 million, respectively.

From the date of acquisition, the agreements extend ten years for 1-4 family real estate loans and five years for the other loans. The loss sharing assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Bank choose to dispose of them. Fair values on the acquisition dates were estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and the loss sharing percentages. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursements from the FDIC. The Bank will collect the assets over the next several years. The amount ultimately collected will depend on the timing and amount of collections and charge-offs on the acquired assets covered by the loss sharing agreements. While the assets were recorded at their estimated fair values on the acquisition dates, it is not practicable to complete fair value analyses on a quarterly or annual basis. Estimating the fair value of the FDIC indemnification asset would involve preparing fair value analyses of the entire portfolios of loans and foreclosed assets covered by the loss sharing agreements from the acquisition on a quarterly or annual basis.

Deposits and FHLB Advances – Long-Term

The fair values of certificates of deposit and FHLB advances – long-term are based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. Demand, savings, and money market deposits are valued at the amount payable on demand as of year-end.

Bank-Owned Life Insurance

The fair value is equal to the cash surrender value of the life insurance policies.

Commitments to Extend Credit

These financial instruments are generally not subject to sale, and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. The contractual amounts of unfunded commitments are presented in the Liquidity and Capital Management section below.

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11. Accumulated Other Comprehensive Income

The activity in accumulated other comprehensive income for the three and six months ended June 30, 2013 and 2012 are as follows:

	Accumulated Other Comprehensive Income (1)
	Unrealized Gains (Losses) on Securities Available-for-Sale		Total
Balance at December 31, 2012	$	407,786	$	407,786
Other comprehensive income before reclassifications		(120,370)		(120,370)
Period change		(120,370)		(120,370)
Balance at June 30, 2013	$	287,416	$	287,416
Balance at December 31, 2011	$	303,657	$	303,657
Other comprehensive income before reclassifications		29,804		29,804
Period change		29,804		29,804
Balance at June 30, 2012	$	333,461	$	333,461

(1) All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

	Accumulated Other Comprehensive Income (1)
	Unrealized Gains (Losses) on Securities Available-for-Sale		Total
Balance at March 31, 2013	$	420,167	$	420,167
Other comprehensive income before reclassifications		(132,751)		(132,751)
Period change		(132,751)		(132,751)
Balance at June 30, 2013	$	287,416	$	287,416
Balance at March 31, 2012	$	359,639	$	359,639
Other comprehensive income before reclassifications		(26,178)		(26,178)
Period change		(26,178)		(26,178)
Balance at June 30, 2012	$	333,461	$	333,461

(1) All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

There were no amounts reclassified from accumulated other comprehensive income for the three and six month periods ended June 30, 2013 and 2012.

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

Management’s discussion and analysis of the Company’s financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of Polonia Bancorp. The information contained in this section should be read in conjunction with the Unaudited Consolidated Financial Statements and footnotes appearing in Part I, Item 1 of this document.

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Forward-Looking Statements

This report contains forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of Polonia Bancorp and Polonia Bank. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. Polonia Bancorp’s and Polonia Bank’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiary include, but are not limited to the following: changes in interest rates; national and regional economic conditions; legislative and regulatory changes; monetary and fiscal policies of the U.S. government; including policies of the U.S. Treasury and the Federal Reserve Board; the quality and composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company’s market area; changes in real estate market values in the Company’s market area; and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties are described herein and in the Company’s Form 10-K for the year ended December 31, 2012 under “Item 1A: Risk Factors” filed with the Securities and Exchange Commission (the “SEC”) which is available through the SEC’s website at www.sec.gov. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

General

Polonia Bancorp’s business activities are the ownership of the outstanding capital stock of Polonia Bank. Currently, Polonia Bancorp neither owns or leases any property, but instead uses the premises, equipment and other property of Polonia Bank and pays appropriate rental fees, as by required applicable law and regulations. In the future, Polonia Bancorp may acquire or organize other operating subsidiaries; however, there are no current plans, arrangements, or understandings, written or oral, to do so.

Polonia Bank operates as a community-oriented financial institution offering a variety of deposit products as well as providing residential real estate loans, and to a lesser degree, multi-family and nonresidential real estate loans, home equity loans and consumer loans primarily to individuals, families and small businesses located in Bucks, Philadelphia and Montgomery Counties, Pennsylvania. The Bank operates from seven full-service locations, including our main office in Huntingdon Valley, Pennsylvania and our branch offices in the city of Philadelphia and Bucks County.

Critical Accounting Policies

We consider accounting policies involving significant judgments and assumptions by management that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. We consider the following to be our critical accounting policies.

Securities. Securities are reported at fair value adjusted for premiums and discounts which are recognized in interest income using the interest method over the period to maturity. Declines in the fair value of individual securities below their amortized cost, and that are deemed to be other than temporary, will be written down to current market value and included in earnings as realized losses. Management systematically evaluates securities for other than temporary declines in fair value on a quarterly basis.

Allowance for loan losses. The allowance for loan losses is increased by changes to income and decreased by change-offs (net of recoveries). The Company’s periodic evaluation of the adequacy of the allowance for loan losses is determined by management through evaluation of the loss exposure on individual non-performing, delinquent and high-dollar loans; review of economic conditions and business trends; historical loss experience and growth and composition of the loan portfolio, as well as other relevant factors.

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A quantitative analysis is utilized to support the adequacy of the allowance for loan losses. This analysis includes review of historical charge-off rates for loan categories, fluctuations and trends in the amount of classified loans and economic factors. Significant to this analysis are any changes in observable trends that may be occurring relative to loans to assess potential weaknesses within the credit. Current economic factors and trends in risk ratings are considered in the determination and allocation of the allowance for loan losses.

Income taxes.     The Company files a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement and the income tax basis of assets and liabilities using the enacted marginal tax rates. Deferred income taxes or benefits are based on changes in the deferred tax asset or liability from period to period. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which such items are expected to be realized or settled. As changes in tax rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Comparison of Financial Condition at June 30, 2013 and December 31, 2012

Total assets at June 30, 2013 were $277.2 million, an increase of $9.7 million, from total assets of $267.5 million at December 31, 2012. The increase in assets resulted primarily from an increase in our loan portfolio of $27.9 million, primarily due to an increased emphasis on originating one-to four-family loans, partially offset by a decrease in cash and cash equivalents of $13.8 million and $3.6 million in investment securities. Total liabilities at June 30, 2013 were $236.1 million compared to $226.3 million at December 31, 2012, an increase of $9.4 million. The increase in liabilities was primarily due to the net increase of $12.5 million in FHLB advances – long-term for the funding of our new loan originations offset by a $3.4 million decrease in deposits. Total stockholders’ equity at June 30, 2013 decreased to $41.1 million as compared to $41.2 million from December 31, 2012.

Cash and cash equivalents decreased to $11.3 million from $25.1 million during the six months ended June 30, 2013, a decrease of $13.8 million, or 55.0% partially due to the emphasis on one-to-four family loan originations.

Investment securities available-for-sale decreased to $14.7 million from $16.1 million during the six months ended June 30, 2013, a decrease of $1.4 million, or 8.7%. The decrease in investment securities available-for-sale was attributable to principal payments and maturities.

Investment securities held-to-maturity decreased to $56.4 million from $58.6 million during the six months ended June 30, 2013, a decrease of $2.2, or 3.7%. The decrease in investment securities held-to-maturity was attributable to principal payments and maturities.

Loans held for sale decreased to $11.3 million from $12.1 million during the six months ended June 30, 2013, a decrease of $727,000, or 6.0%. The decrease is loans held for sale is the result of the normal fluctuation in loan activity associated with this type of business.

Loans receivable increased $27.9 million, or 20.1% to $166.7 million at June 30, 2013, compared to $138.8 million at December 31, 2012. The increase in loans receivable is the result of increased emphasis on originating one-to-four family loans for investment.

Total deposits decreased to $193.3 million from $196.7 million during the six months ended June 30, 2013, a decrease of $3.4 million, or 1.7%. The decrease in deposits was attributable, in part, to lower rates offered on deposit products.

We utilize borrowings from the FHLB of Pittsburgh to supplement our supply of funds for loans and investments. The $12.5 million net increase in FHLB advances long-term was due to the proceeds of $16.0 million in borrowings, partially offset by repayment of $3.5 million in borrowings.

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Comparison of Operating Results For The Three and Six Months Ended June 30, 2013 and 2012

General. We recorded net income of $47,000 during the three months ended June 30, 2013 compared to a net loss of $35,000 during the three months ended June 30, 2012. The increase in net income for the three month period ended June 30, 2013 was primarily related to an increase in net interest income of $194,000 and an increase in noninterest income of $1.2 million, partially offset by a $1.2 million increase in noninterest expense and an $35,000 increase in income tax expense.

We recorded a net loss of $19,000 during the six months ended June 30, 2013 compared to net income of $40,000 during the six months ended June 30, 2012. The decrease in net income for the six month period ended June 30, 2013 was primarily related to an increase in noninterest expense of $2.5 million, partially offset by a $2.1 million increase in noninterest income, a $300,000 increase in net interest income, a $77,000 decrease in provision for loan losses and a $45,000 decrease in income tax expense.

Net Interest Income. The following table summarizes changes in interest income and expense for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Interest and dividend income:
Loans receivable	$	2,088	$	1,989	$	4,139	$	3,985
Investment securities		477		578		974		1,167
Other interest and dividend income		4		4		8		6
Total interest and dividend income		2,569		2,571		5,121		5,158
Interest Expense:
Deposits		413		508		833		1,035
FHLB advances – long-term		164		185		326		372
Advances by borrowers for taxes and insurance		1		5		4		11
Total interest expense		578		698		1,163		1,418
Net interest income	$	1,991	$	1,873	$	3,958	$	3,740

The following table summarizes average balances and average yields and costs for the three and six months ended June 30, 2013 and 2012. 

35

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2013				2012				2013				2012
	Average Balance		Yield/ Cost		Average Balance		Yield/ Cost		Average Balance		Yield/ Cost		Average Balance		Yield/ Cost
	(Dollars in thousands)								(Dollars in thousands)
Assets:
Interest-earning assets:
Loans	$	159,471	5.18	%	$	141,008	5.58	%	$	153,741	5.35	%	$	146,230	5.42	%
Investment securities		69,309	2.72			72,159	3.17			70,910	2.73			72,485	3.20
Other interest-earning assets		18,015	0.09			26,913	0.06			21,794	0.07			22,091	0.05
Total interest earning-assets		246,795	4.18	%		240,080	4.30	%		246,445	4.19	%		240,806	4.32	%
Noninterest-earning assets:		17,467				19,528				17,564				19,516
Allowance for Loan Losses		(1,461)				(1,204)				(1,490)				(1,236)
Total assets	$	262,801			$	258,404			$	262,519			$	259,086
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	14,230	0.25	%	$	15,629	0.49	%	$	14,070	0.26	%	$	15,809	0.59	%
Money Market Deposits		38,569	0.42			42,261	0.60			38,896	0.43			42,780	0.61
Savings accounts		30,378	0.28			29,668	0.32			30,271	0.29			29,813	0.34
Time deposits		104,005	1.32			108,649	1.48			104,155	1.34			107,899	1.51
Total interest-bearing deposits		187,182	0.88	%		196,207	1.04	%		187,392	0.90	%		196,301	1.06	%
FHLB advances – long-term		23,406	2.81			25,891	2.87			23,158	2.84			26,134	2.87
Advances by borrowers for taxes and insurance		960	0.42			750	2.67			927	0.87			848	2.62
Total interest-bearing liabilities		211,548	1.10	%		222,848	1.26	%		211,477	1.11	%		223,283	1.28	%
Noninterest-bearing liabilities:		9,942				7,648				9,730				7,814
Total liabilities		221,490				230,496				221,207				231,097
Retained earnings		41,311				27,908				41,312				27,989
Total liabilities and retained earnings	$	262,801			$	258,404			$	262,519			$	259,086
Interest rate spread			3.08	%			3.04	%			3.08	%			3.04	%
Net yield on interest-bearing assets			3.24	%			3.13	%			3.24	%			3.13	%
Ratio of average interest-earning assets to average interest-bearing     liabilities			116.66	%			107.73	%			116.54	%			107.85	%

Net Interest Income.  Net interest income for the three months ended June 30, 2013 increased $118,000, or 6.3% to $2.0 million, from $1.9 million during the same period last year. Our net interest rate spread increased to 3.08% for the three months ended June 30, 2013 from 3.04% for the same period last year. The primary reasons for the increase in net interest income for the three month period are a higher average balance of loans, a lower average balance of interest bearing deposits and a lower average balance of FHLB advances, partially offset by a lower average balance of other interest earning assets and investment securities. Also contributing to the higher net interest income was a lower average rate paid on deposits and FHLB advances, partially offset by a lower average rate earned on loans and investment securities. The average balance of loans increased during the three months ended June 30, 2013 due to increased loan originations. Lower interest expense on deposits for the three months ended June 30, 2013 was due to lower rates offered on deposit products.

Net interest income for the six months ended June 30, 2013 increased $218,000, or 5.8% to $4.0 million, from $3.7 million during the same period last year. Our net interest rate spread increased to 3.08% for the six months ended June 30, 2013 from 3.04% for the same period last year. The primary reasons for the increase in net interest income for the six month period are a higher average balance of loans, a lower average balance of interest bearing deposits and a lower average balance of FHLB advances, partially offset by a lower average balance of investment securities and other interest earning assets. Also contributing to the higher net interest income was a lower average rate paid on deposits and FHLB advances, partially offset by a lower average rate earned on loans and investment securities. The average balance of loans increased during the six months ended June 30, 2013 due to increased loan originations. Lower interest expense on deposits for the six months ended June 30, 2013 was due to lower rates offered on deposit products.

Provision for Loan Losses. For the three months ended June 30, 2013 we recorded a provision for loan losses of $25,000 as compared to a provision for loan losses of $101,000 for the three months ended June 30, 2012. The provisions reflect management’s assessment of lending activities, decreased non-performing loans, levels of current delinquencies and current economic conditions.

36

For the six months ended June 30, 2013 we recorded a provision for loan losses of $114,000 as compared to a provision for loan losses of $191,000 for the six months ended June 30, 2012. The provisions reflect management’s assessment of lending activities, decreased non-performing loans, levels of current delinquencies and current economic conditions

Noninterest Income. The following table summarizes noninterest income for the three and six months ended June 30, 2013 and 2012. 

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Service fees on deposit accounts	$	35	$	48	$	66	$	81
Earnings on bank-owned life insurance		8		10		14		21
Gain on sale of loans, net		1,418		199		2,581		341
Rental Income		70		72		145		145
Other		58		87		89		193
Total	$	1,589	$	416	$	2,895	$	781

The $1.2 million increase in noninterest income during the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 was primarily due to a $1.2 million increase in gain on the sale of loans. The increase in the gain on the sale of loans is due to our expanded emphasis on this type of business.

The $2.1 million increase in noninterest income during the six months ended June 30, 2013 as compared to the six months ended June 30, 2012 was primarily due to a $2.2 million increase in gain on the sale of loans, partially offset by a $104,000 decrease in other noninterest income. The increase in the gain on the sale of loans is due to our expanded emphasis on this type of business. The decrease in other noninterest income is partially due to a $40,000 decrease in the net gain on the sale of REO and a $32,000 decrease in payments received on charged-off loans by the former Earthstar Bank.

Noninterest Expense.   The following table summarizes noninterest expense for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Compensation and employee benefits	$	2,133	$	1,253	$	4,127	$	2,416
Occupancy and equipment		350		353		700		686
Federal deposit insurance premiums		78		81		155		155
Data processing expense		109		99		207		198
Professional fees		175		109		333		209
Other		643		344		1,254		598
Total	$	3,488	$	2,239	$	6,776	$	4,262

The $1.2 million increase in noninterest expense during the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 was primarily due to a $880,000 increase in compensation and employee benefits due mainly to the expense of $870,000 related to the hiring of 20 employees for our Retail Mortgage Banking Division, a $299,000 increase in other expenses primarily related to the amortization of the FDIC indemnification asset of $230,000 and a $64,000 increase in loan expense. Professional fees increased by $66,000 related to increased costs associated with legal and audit representation.

37

The $2.5 million increase in noninterest expense during the six months ended June 30, 2013 as compared to the six months ended June 30, 2012 was primarily due to a $1.7 million increase in compensation and employee benefits due mainly to the expense of $1.7 million related to the hiring of 20 employees for our Retail Mortgage Banking Division, a $656,000 increase in other expenses primarily related to the amortization of the FDIC indemnification asset of $534,000 and a $114,000 increase in loan expense. Professional fees increased by $124,000 related to increased costs associated to legal and audit representation.

Income Taxes.  We recorded tax expense of $20,000 for the three months ended June 30, 2013 compared to a tax benefit of $15,000 during the three months ended June 30, 2012. The increase in tax expenses resulted from the increase in our taxable operating profits.

We recorded a tax benefit of $17,000 for the six months ended June 30, 2013 compared to tax expense of $28,000 during the six months ended June 30, 2012. The decrease in tax expenses resulted from the decrease in our taxable operating profits.

Liquidity and Capital Management

Liquidity Management.  Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments, maturities and sales of securities and borrowings from the FHLB of Pittsburgh. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition.

We regularly adjust our investments in liquid assets based upon our assessment of (1) expected loan demand, (2) expected deposit flows, (3) yields available on interest-earning deposits and securities and (4) the objectives of our asset/liability management policy.

Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At June 30, 2013, cash and cash equivalents totaled $11.3 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $14.7 million at June 30, 2013. In addition, at June 30, 2013 we had the ability to borrow a total of approximately $99.3 million from the FHLB of Pittsburgh. On June 30, 2013, we had $38.0 million of borrowings outstanding. Any growth of our loan portfolio may require us to borrow additional funds.

At June 30, 2013, we had $10.3 million in mortgage loan commitments outstanding and $3.6 million in available credit on lines of credit. Time deposits due within one year of June 30, 2013 totaled $40.0 million, or 38.2% of time deposits. If these maturing deposits do not remain with us, we will be required to seek other sources of funds, including other time deposits and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings that we currently pay on the time deposits due on or before June 30, 2014. We believe, however, based on past experience that a significant portion of our time deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Our primary investing activities are the origination of loans and the purchase of securities. Our primary financing activities consist of activity in deposit accounts and FHLB advances. Deposit flows are affected by the overall level of interest rates, the interest rates and products offered by us and our local competitors and other factors. We generally manage the pricing of our deposits to be competitive and to increase core deposit relationships. Occasionally, we offer promotional rates on certain deposit products to attract deposits.

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The Company is a separate entity and apart from the Bank and must provide for its own liquidity. In addition to its operating expenses, the Company may utilize its cash position for the payment of dividends or to repurchase common stock, subject to applicable restrictions. The Company’s primary source of funds are dividends from the Bank. Payment of such dividends to the Company by the Bank is limited under federal law. The amount that can be paid in any calendar year, without prior regulatory approval, cannot exceed the retained net earnings (as defined) for the year plus the preceding two calendar years. The Company believes that such restriction will not have an impact on the Company’s ability to meet its ongoing cash obligations.

Capital Management.  We are subject to various regulatory capital requirements administered by the Office of the Comptroller of Currency, including a risk-based capital measure. The risk based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. At June 30, 2013, we exceeded all of our regulatory capital requirements. We are considered “well capitalized” under regulatory guidelines.

Off-Balance Sheet Arrangements.  In the normal course of operations, we engage in a variety of financial transactions that, in accordance with GAAP, are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customer’s requests for funding and take the form of loan commitments.

For six months ended June 30, 2013 and the year ended December 31, 2012 we engaged in no off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

Not applicable.

Item 4. Controls and Procedures

The Company’s management, including the Company’s principal executive officer and principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(e) that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II.  OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be party to various legal proceedings incident to our business. At June 30, 2013, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

39

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012, which could materially affect our business, financial condition or future results. At June 30, 2013 the risk factors of the Company have not changed materially from those reported in our Annual Report on Form 10-K. However, the risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us to that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

3.1	Articles of Incorporation(1)
3.2	Bylaws(2)
4.0	Form of Specimen Stock Certificate(3)
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0	Section 1350 Certifications

101* The following materials from the Company’s Quarterly Report or Form 10-Q for the period ended June 30, 2013, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statement of Changes in Stockholder’s Equity, (iv) the Consolidated Statements of Cash Flows and (v) related notes.

*Furnished, not filed.

(1) Incorporated by reference to Exhibit 3.1 to the Company’s Form S-1 (File No. 333-176759) filed with the Commission on September 9, 2011.

(2) Incorporated by reference to Exhibit 3.2 to the Company’s Form S-1 (File No. 333-176759) filed with the Commission on September 9, 2011.

(3) Incorporated by reference to Exhibit 4.0 to the Company’s Form S-1 (File No. 333-176759) filed with the Commission on September 9, 2011.

40

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	POLONIA BANCORP, INC.
Date: August 14, 2013	By:	/s/ Anthony J. Szuszczewicz
		Anthony J. Szuszczewicz
		President and Chief Executive Officer
		(principal executive officer)
Date: August 14, 2013	By:	/s/ Paul D. Rutkowski
		Paul D. Rutkowski
		Chief Financial Officer and Treasurer
		(principal financial and accounting officer)

41

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Anthony J. Szuszczewicz, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Polonia Bancorp, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013	/s/ Anthony J. Szuszczewicz
	Anthony J. Szuszczewicz
	President and Chief Executive Officer

 

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Paul D. Rutkowski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Polonia Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 14, 2013	/s/ Paul D. Rutkowski
	Paul D. Rutkowski
	Chief Financial Officer and Treasurer

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADDED BY

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Polonia Bancorp, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2013 as filed with the Securities and Exchange Commission (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

Date:  August 14, 2013	/s/ Anthony J. Szuszczewicz
	Anthony J. Szuszczewicz
	President and Chief Executive Officer
Date:  August 14, 2013	/s/ Paul D. Rutkowski
	Paul D. Rutkowski
	Chief Financial Officer and Treasurer

XML

Fair Value Disclosure

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

10. Fair Value Disclosure

The estimated fair values of the Company’s financial instruments are summarized below:

	June 30, 2013				December 31,2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	11,322,657	$	11,322,657	$	25,061,666	$	25,061,666
Investment securities
Available for sale		14,679,868		14,679,868		16,139,282		16,139,282
Held to maturity		56,444,740		57,373,156		58,605,490		61,615,682
Loans held for sale		11,333,280		11,333,280		12,060,174		12,060,174
Net loans receivable		165,679,739		166,383,868		137,294,563		143,651,214
Accrued interest receivable		788,224		788,224		815,473		815,473
Federal Home Loan Bank stock		3,089,200		3,089,200		2,607,600		2,607,600
Bank-owned life insurance		4,254,543		4,254,543		4,240,364		4,240,364
FDIC indemnification asset		3,088,031		3,088,031		4,234,931		4,234,931
Financial liabilities:
Deposits	$	193,345,067	$	194,937,200	$	196,723,246	$	198,186,758
FHLB advances – long-term		38,000,000		39,094,400		25,500,000		27,392,100
Advances by borrowers for taxes and insurance		1,312,270		1,312,270		942,564		942,564
Accrued interest payable		74,695		74,695		64,760		64,760

The estimated fair values of the Company’s financial instruments are as follows:

	Fair Value Measurements at June 30, 2013
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	11,322,657	$	-	$	-	$	11,322,657
Investment securities
Available for sale		-		14,679,868		-		14,679,868
Held to maturity		-		57,373,156		-		57,373,156
Loans held for sale		11,333,280		-		-		11,333,280
Net loans receivable		-		-		166,383,868		166,383,868
Accrued interest receivable		788,224		-		-		788,224
Federal Home Loan Bank stock		3,089,200		-		-		3,089,200
Bank-owned life insurance		4,254,543		-		-		4,254,543
FDIC indemnification asset		-		-		3,088,031		3,088,031
Financial liabilities:
Deposits		89,284,064		-		105,653,136		194,937,200
FHLB advance – long-term		-		-		39,094,400		39,094,400
Advances by borrowers for taxes and insurance		1,312,270		-		-		1,312,270
Accrued interest payable		74,695		-		-		74,695

	Fair Value Measurements at December 31, 2012
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	25,061,666	$	-	$	-	$	25,061,666
Investment securities
Available for sale		-		16,139,282		-		16,139,282
Held to maturity		-		61,615,682		-		61,615,682
Loans held for sale		12,060,174		-		-		12,060,174
Net loans receivable		-		-		143,651,214		143,651,214
Accrued interest receivable		815,473		-		-		815,473
Federal Home Loan Bank stock		2,607,600		-		-		2,607,600
Bank-owned life insurance		4,240,364		-		-		4,240,364
FDIC indemnification asset		-		-		4,234,931		4,234,931
Financial liabilities:
Deposits		91,434,681		-		106,752,077		198,186,758
FHLB advance – long-term		-		-		27,392,100		27,392,100
Advances by borrowers for taxes and insurance		942,564		-		-		942,564
Accrued interest payable		64,760		-		-		64,760

Financial instruments are defined as cash, evidence of ownership interest in an entity, or a contract that creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument.

If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formula or stimulation modeling. As many of these assumptions result from judgments made by management based upon estimates that are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in assumptions on which the estimated fair values are based may have a significant impact on the resulting estimated fair values.

As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company.

The Company employed simulation modeling in determining the estimated fair value of financial instruments for which quoted market prices were not available based upon the following assumptions.

Cash and Cash Equivalents, Accrued Interest Receivable, Federal Home Loan Bank Stock, Accrued Interest Payable and Advances by Borrowers for Taxes and Insurance

The fair value is equal to the current carrying value.

Loans Held for Sale

The fair value of mortgage loans held for sale is determined, when possible, using Level 1 quoted secondary-market prices. If no such quoted price exists, the fair value of a loan is determined based on sales of similar assets.

All mortgage loans held for sale are sold 100% servicing released and made in compliance with applicable loan criteria and underwriting standards established by the buyers. These loans are originated according to applicable federal and state laws and follow proper standards for servicing valid liens.

Investment Securities Available for Sale and Held to Maturity

The fair value of investment securities available for sale and held to maturity is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities.

Net Loans Receivable

The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value.

FDIC Indemnification Asset

As part of the Purchase and Assumption Agreements entered into in connection with the acquisition of Earthstar, the Bank and the FDIC entered into loss sharing agreements. These agreements cover realized losses on loans, which are more fully described in Note 6.

Under the agreement, the FDIC agreed to reimburse the Bank for 80% of realized losses. The indemnification asset was originally recorded at fair value on the acquisition date (December 10, 2010) and at June 30, 2013 and December 31, 2012, the carrying value of the FDIC indemnification asset was $3.1 million and $4.2 million, respectively.

From the date of acquisition, the agreements extend ten years for 1-4 family real estate loans and five years for the other loans. The loss sharing assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Bank choose to dispose of them. Fair values on the acquisition dates were estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and the loss sharing percentages. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursements from the FDIC. The Bank will collect the assets over the next several years. The amount ultimately collected will depend on the timing and amount of collections and charge-offs on the acquired assets covered by the loss sharing agreements. While the assets were recorded at their estimated fair values on the acquisition dates, it is not practicable to complete fair value analyses on a quarterly or annual basis. Estimating the fair value of the FDIC indemnification asset would involve preparing fair value analyses of the entire portfolios of loans and foreclosed assets covered by the loss sharing agreements from the acquisition on a quarterly or annual basis.

Deposits and FHLB Advances – Long-Term

The fair values of certificates of deposit and FHLB advances – long-term are based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. Demand, savings, and money market deposits are valued at the amount payable on demand as of year-end.

Bank-Owned Life Insurance

The fair value is equal to the cash surrender value of the life insurance policies.

Commitments to Extend Credit

These financial instruments are generally not subject to sale, and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. The contractual amounts of unfunded commitments are presented in the Liquidity and Capital Management section below.

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Life Insurance and Retirement Plan (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Schedule of Life Insurance and Retirement Plans [Line Items]
Life Insurance Policies Original Investment	$ 3,085,000		$ 3,085,000
Life Insurance Policies, Death Benefit Coverage	11,975,329		11,975,329
Bank-owned life insurance	4,254,543		4,254,543		4,240,364
Current President Annual Gross Taxable Compensation Percentage			60.00%
Annual Gross Taxable Compensation Adjustment Description			change in the consumer price index or 4 percent
Former President Annual Gross Taxable Compensation Percentage			60.00%
Deferred Compensation Liability, Current and Noncurrent	50,000		50,000
Deferred Compensation Arrangements, Overall, Description			The deferred compensation for the two senior officers is to be paid at the rate of $50,000 per year for twenty years commencing five years after retirement or age 65, whichever comes first
Amount Accrued On Cost Of Compensation Benefits Provided	50,841	61,445	103,237	124,277
Supplemental Life Insurance Plan [Member]
Schedule of Life Insurance and Retirement Plans [Line Items]
Life Insurance Policies, Death Benefit Coverage	6,000,000		6,000,000
Supplemental Employee Retirement Plan, Defined Benefit [Member]
Schedule of Life Insurance and Retirement Plans [Line Items]
Defined Benefit Pension Plan, Liabilities	1,794,777		1,794,777		1,755,140
Total net deferred tax assets	$ 610,224		$ 610,224		$ 596,748

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CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
INTEREST AND DIVIDEND INCOME
Loans receivable	$ 2,087,758	$ 1,988,410	$ 4,138,756	$ 3,985,033
Investment securities	477,384	578,038	973,861	1,166,410
Other interest and dividend income	3,455	4,008	8,274	6,244
Total interest and dividend income	2,568,597	2,570,456	5,120,891	5,157,687
INTEREST EXPENSE
Deposits	412,577	508,098	833,356	1,034,743
FHLB advances - long-term	164,376	184,624	325,814	371,720
Advances by borrowers for taxes and insurance	745	4,959	3,472	10,927
Total interest expense	577,698	697,681	1,162,642	1,417,390
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	1,990,899	1,872,775	3,958,249	3,740,297
Provision for loan losses	25,000	100,515	113,817	190,574
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	1,965,899	1,772,260	3,844,432	3,549,723
NONINTEREST INCOME
Service fees on deposit accounts	35,082	48,281	65,903	80,916
Earnings on bank-owned life insurance	7,984	10,369	14,179	20,915
Gain on sale of loans, net	1,418,250	199,417	2,581,243	340,978
Rental income	70,272	71,470	145,130	144,964
Other	57,510	86,917	88,998	192,832
Total noninterest income	1,589,098	416,454	2,895,453	780,605
NONINTEREST EXPENSE
Compensation and employee benefits	2,133,195	1,252,900	4,127,240	2,415,948
Occupancy and equipment	350,383	353,651	699,324	686,224
Federal deposit insurance premiums	78,039	81,025	155,315	155,156
Data processing expense	108,552	98,679	207,203	198,500
Professional fees	175,263	109,026	332,615	208,594
Other	642,555	343,870	1,254,038	597,374
Total noninterest expense	3,487,987	2,239,151	6,775,735	4,261,796
Income (loss) before income tax expense (benefit)	67,010	(50,437)	(35,850)	68,532
Income tax expense (benefit)	20,107	(14,941)	(16,972)	28,215
NET INCOME (LOSS)	$ 46,903	$ (35,496)	$ (18,878)	$ 40,318
EARNINGS PER SHARE - Basic and Diluted (in dollars per share)	$ 0.01	$ (0.01)	$ (0.01)	$ 0.01

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Investment Securities

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Marketable Securities [Text Block]

3.           Investment Securities

The amortized cost and fair value of investment securities available for sale are summarized as follows:

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
Mortgage-backed securities:
Fannie Mae	$	2,591,655	$	169,516	$	-	$	2,761,171
Freddie Mac		98,305		5,862		-		104,167
Government National Mortgage Association		612,944		73,951		(2)		686,893
Collateralized mortgage obligations- government sponsored entities		1,757,664		50,510		(14,298)		1,793,876
Total mortgage-backed securities		5,060,568		299,839		(14,300)		5,346,107
Corporate securities		9,183,822		210,093		(60,154)		9,333,761
Total	$	14,244,390	$	509,932	$	(74,454)	$	14,679,868
Held to Maturity
Mortgage-backed securities:
Fannie Mae	$	41,563,536	$	1,227,104	$	(230,975)	$	42,559,665
Freddie Mac		14,881,204		238,137		(305,850)		14,813,491
Total mortgage-backed securities	$	56,444,740	$	1,465,241	$	(536,825)	$	57,373,156

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
Mortgage-backed securities:
Fannie Mae	$	3,361,216	$	264,117	$	-	$	3,625,333
Freddie Mac		128,634		9,158		-		137,792
Government National Mortgage Association		693,893		100,342		-		794,235
Collateralized mortgage obligations- government sponsored entities		2,166,686		69,368		(26,021)		2,210,033
Total mortgage-backed securities		6,350,429		442,985		(26,021)		6,767,393
Corporate securities		9,170,995		240,789		(39,895)		9,371,889
Total	$	15,521,424	$	683,774	$	(65,916)	$	16,139,282
Held to Maturity
Mortgage-backed securities:
Fannie Mae	$	44,893,424	$	2,510,301	$	-	$	47,403,725
Freddie Mac		13,712,066		499,891		-		14,211,957
Total mortgage-backed securities	$	58,605,490	$	3,010,192	$	-	$	61,615,682

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous loss position.

	June 30, 2013
	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities:
Fannie Mae	$	9,814,310	$	(230,975)	$	-	$	-	$	9,814,310	$	(230,975)
Freddie Mac		8,337,248		(305,850)		-		-		8,337,248		(305,850)
Government National Mortgage      Association		466		(2)		-		-		466		(2)
Collateralized mortgage obligations- government sponsored entities		170,098		(4,497)		341,904		(9,801)		512,002		(14,298)
Total mortgage-backed securities		18,322,122		(541,324)		341,904		(9,801)		18,664,026		(551,125)
Corporate securities		2,830,029		(49,354)		489,200		(10,800)		3,319,229		(60,154)
Total	$	21,152,151	$	(590,678)	$	831,104	$	(20,601)	$	21,983,255	$	(611,279)

	December 31, 2012
	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities:
Collateralized mortgage obligations- government sponsored entities	$	445,009	$	(19,122)	$	248,884	$	(6,899)	$	693,893	$	(26,021)
Total mortgage-backed securities		445,009		(19,122)		248,884		(6,899)		693,893		(26,021)
Corporate securities		980,450		(4,065)		964,170		(35,830)		1,944,620		(39,895)
Total	$	1,425,459	$	(23,187)	$	1,213,054	$	(42,729)	$	2,638,513	$	(65,916)

The Company reviews its position quarterly and has determined that at June 30, 2013, the declines outlined in the above table represent temporary declines and the Company does not intend to sell these securities and does not believe they will be required to sell these securities before recovery of their cost basis, which may be at maturity.  There were 22 positions that were temporarily impaired at June 30, 2013.  The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period.

The amortized cost and fair value of debt securities at June 30, 2013, by contractual maturity, are shown below.  Mortgage-backed securities provide for periodic, general monthly, payments of principal and interest and have contractual maturities ranging from 1 to 32 years.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	1,974,113	$	2,019,727	$	-	$	-
Due after one year through five years		5,754,317		5,878,275		-		-
Due after five years through ten years		3,405,409		3,504,129		11,665,672		12,061,243
Due after ten years		3,110,551		3,277,737		44,779,068		45,311,913
Total	$	14,244,390	$	14,679,868	$	56,444,740	$	57,373,156

The Company had no sales of investment securities for the three and six month periods ended June 30, 2013 and 2012.

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Indemnification Asset (Tables)

6 Months Ended

Jun. 30, 2013

Banking and Thrift [Abstract]

FDIC Indemnification Asset Roll Forward [Table Text Block]

Changes in the FDIC indemnification asset during the six months ended June 30, 2013 and the year ended December 31, 2012 are as follows:

	June 30, 2013		December 31, 2012
Balance at the beginning of year	$	4,234,931	$	5,218,506
Cash payments received or receivable due from the FDIC		(590,117)		(408,610)
Increase in FDIC share of estimated losses		-		-
Net amortization		(556,783)		(574,965)
Balance at the end of the period	$	3,088,031	$	4,234,931

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Fair Value Measurements (Details 2) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2013		Dec. 31, 2012
Impaired Loans [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,322,206		$ 2,994,666
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	3,322,206		2,994,666
Fair Value Measurements, Valuation Techniques	Appraisal of collateral	[1]	Appraisal of collateral	[1]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings, Description	Appraisal adjustments Liquidation expenses	[2]	Appraisal adjustments Liquidation expenses	[2]
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Adjustment [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	0.00%		0.00%
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Liquidation Expenses [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	0.00%		0.00%
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Adjustment [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	30.00%		30.00%
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Liquidation Expenses [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	6.00%		6.00%
Other Real Estate Owned [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	128,809		171,826
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	$ 128,809		$ 171,826
Fair Value Measurements, Valuation Techniques	Appraisal of collateral	[1],[3]	Appraisal of collateral	[1],[3]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings, Description	Appraisal adjustments Liquidation expenses	[2]	Appraisal adjustments Liquidation expenses	[2]
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Adjustment [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	0.00%		0.00%
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Liquidation Expenses [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	0.00%		0.00%
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Adjustment [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	30.00%		30.00%
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Liquidation Expenses [Member]
Schedule of Fair Value Measurements [Line Items]
Fair Value Measurements Unobservable Inputs Range	6.00%		6.00%

[1] Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

[2] Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

[3] Includes qualitative adjustments by management and estimated liquidation expenses.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income [Text Block]

11. Accumulated Other Comprehensive Income

The activity in accumulated other comprehensive income for the three and six months ended June 30, 2013 and 2012 are as follows:

	Accumulated Other Comprehensive Income (1)
	Unrealized Gains (Losses) on Securities Available-for-Sale		Total
Balance at December 31, 2012	$	407,786	$	407,786
Other comprehensive income before reclassifications		(120,370)		(120,370)
Period change		(120,370)		(120,370)
Balance at June 30, 2013	$	287,416	$	287,416
Balance at December 31, 2011	$	303,657	$	303,657
Other comprehensive income before reclassifications		29,804		29,804
Period change		29,804		29,804
Balance at June 30, 2012	$	333,461	$	333,461

(1) All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

	Accumulated Other Comprehensive Income (1)
	Unrealized Gains (Losses) on Securities Available-for-Sale		Total
Balance at March 31, 2013	$	420,167	$	420,167
Other comprehensive income before reclassifications		(132,751)		(132,751)
Period change		(132,751)		(132,751)
Balance at June 30, 2013	$	287,416	$	287,416
Balance at March 31, 2012	$	359,639	$	359,639
Other comprehensive income before reclassifications		(26,178)		(26,178)
Period change		(26,178)		(26,178)
Balance at June 30, 2012	$	333,461	$	333,461

(1) All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

There were no amounts reclassified from accumulated other comprehensive income for the three and six month periods ended June 30, 2013 and 2012.

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Allowance for Loan Losses (Details 6) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013 Contracts	Jun. 30, 2012 Contracts	Jun. 30, 2013 Contracts	Jun. 30, 2012 Contracts
Schedule of Allowance for Loan Losses [Line Items]
Number of Contracts	1	0	2	0
Pre-Modification Outstanding Recorded Investment	$ 160,992	$ 0	$ 283,456	$ 0
Post-Modification Outstanding Recorded Investment	160,992	0	218,292	0
One To Four Family Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Number of Contracts	1	0	2	0
Pre-Modification Outstanding Recorded Investment	160,992	0	283,456	0
Post-Modification Outstanding Recorded Investment	$ 160,992	$ 0	$ 218,292	$ 0

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Fair Value Measurements (Details Textual) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Fair Value Measurements [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 3,351,494	$ 3,034,306
Impaired Financing Receivable, Related Allowance	29,288	39,640
Impaired Loan [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,322,206	$ 2,994,666

XML

Loans Receivable (Details 1) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Loans Receivable [Line Items]
Total loans	$ 18,200,878	$ 21,259,962
Mortgage Receivable [Member]
Schedule of Loans Receivable [Line Items]
Total loans	18,087,864	21,230,506
Mortgage Receivable [Member] | One To Four Family [Member]
Schedule of Loans Receivable [Line Items]
Total loans	10,627,707	11,652,568
Mortgage Receivable [Member] | Multi - Family and Commercial Real Estate [Member]
Schedule of Loans Receivable [Line Items]
Total loans	7,460,157	9,577,938
Mortgage Receivable [Member] | Commercial Loan [Member]
Schedule of Loans Receivable [Line Items]
Total loans	$ 113,014	$ 29,456

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012, are as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Available for Sale
Mortgage-backed securities	$	-	$	5,346,107	$	-	$	5,346,107
Corporate Securities		-		9,333,761		-		9,333,761
Total	$	-	$	14,679,868	$	-	$	14,679,868

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Available for Sale
Mortgage-backed securities	$	-	$	6,767,393	$	-	$	6,767,393
Corporate Securities		-		9,371,889		-		9,371,889
Total	$	-	$	16,139,282	$	-	$	16,139,282

Fair Value Measurements, Nonrecurring [Table Text Block]

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012, are as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	-	$	-	$	3,322,206	$	3,322,206
Other real estate owned		-		-		128,809		128,809

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	-	$	-	$	2,994,666	$	2,994,666
Other real estate owned		-		-		171,826		171,826

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value.

	June 30, 2013 Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
Impaired loans	$	3,322,206	Appraisal of	Appraisal
			collateral (1)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%
Other real estate owned		128,809	Appraisal of	Appraisal
			collateral (1), (3)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%

	December 31, 2012 Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
Impaired loans	$	2,994,666	Appraisal of	Appraisal
			collateral (1)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%
Other real estate owned		171,826	Appraisal of	Appraisal
			collateral (1), (3)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

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Life Insurance and Retirement Plan (Tables)

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

The following table illustrates the components of the net periodic benefit cost for the supplemental retirement plan:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Components of net periodic benefit cost:
Service cost	$	23,417	$	36,109	$	48,389	$	73,604
Interest cost		27,424		25,336		54,848		50,673
Net periodic benefit cost	$	50,841	$	61,445	$	103,237	$	124,277

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Allowance for Loan Losses (Details 4) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
Total	$ 3,578,469	$ 3,575,140
One To Four Family Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	2,638,289	1,827,880
Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	781,956	1,484,495
Home Equity Line of Credit [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	10,579	10,329
Education and Other Consumer Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	147,645	152,275
Non - Covered Consumer Loans Purchased Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	$ 0	$ 100,161

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Investment Securities (Details 1) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	$ 21,152,151	$ 1,425,459
Less Than Twelve Months, Gross Unrealized Losses	(590,678)	(23,187)
Twelve Months or Greater, Fair Value	831,104	1,213,054
Twelve Months or Greater, Gross Unrealized Losses	(20,601)	(42,729)
Total, Fair Value	21,983,255	2,638,513
Total, Gross Unrealized Losses	(611,279)	(65,916)
Mortgage Backed Securities, Fannie Mae [Member]
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	9,814,310
Less Than Twelve Months, Gross Unrealized Losses	(230,975)
Twelve Months or Greater, Fair Value	0
Twelve Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	9,814,310
Total, Gross Unrealized Losses	(230,975)
Mortgage Backed Securities, Freddie Mac [Member]
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	8,337,248
Less Than Twelve Months, Gross Unrealized Losses	(305,850)
Twelve Months or Greater, Fair Value	0
Twelve Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	8,337,248
Total, Gross Unrealized Losses	(305,850)
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	466
Less Than Twelve Months, Gross Unrealized Losses	(2)
Twelve Months or Greater, Fair Value	0
Twelve Months or Greater, Gross Unrealized Losses	0
Total, Fair Value	466
Total, Gross Unrealized Losses	(2)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	170,098	445,009
Less Than Twelve Months, Gross Unrealized Losses	(4,497)	(19,122)
Twelve Months or Greater, Fair Value	341,904	248,884
Twelve Months or Greater, Gross Unrealized Losses	(9,801)	(6,899)
Total, Fair Value	512,002	693,893
Total, Gross Unrealized Losses	(14,298)	(26,021)
Collateralized Mortgage Backed Securities [Member]
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	18,322,122	445,009
Less Than Twelve Months, Gross Unrealized Losses	(541,324)	(19,122)
Twelve Months or Greater, Fair Value	341,904	248,884
Twelve Months or Greater, Gross Unrealized Losses	(9,801)	(6,899)
Total, Fair Value	18,664,026	693,893
Total, Gross Unrealized Losses	(551,125)	(26,021)
Corporate Debt Securities [Member]
Schedule of Investment Securities [Line Items]
Less Than Twelve Months, Fair Value	2,830,029	980,450
Less Than Twelve Months, Gross Unrealized Losses	(49,354)	(4,065)
Twelve Months or Greater, Fair Value	489,200	964,170
Twelve Months or Greater, Gross Unrealized Losses	(10,800)	(35,830)
Total, Fair Value	3,319,229	1,944,620
Total, Gross Unrealized Losses	$ (60,154)	$ (39,895)

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Loans Receivable (Details 3) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Schedule of Loans Receivable [Line Items]
Accretion	$ 334,753		$ 697,362
Balance at end of period	(377,752)	(1,269,626)	(377,752)	(1,269,626)
Acquired Loans With Specific Evidence Of Deterioration In Credit Quality (Asc 310-30) [Member]
Schedule of Loans Receivable [Line Items]
Balance at beginning of period		36,434		48,637
Reclassifications and other		0		0
Accretion		(36,434)		(48,637)
Balance at end of period		0		0
Acquired Loans Without Specific Evidence Of Deterioration In Credit Quality (Asc310-30 Analogized) [Member]
Schedule of Loans Receivable [Line Items]
Balance at beginning of period	9,927,911	8,165,501	11,044,664	8,680,970
Reclassifications and other	(368,683)	4,782,910	(1,122,827)	4,645,794
Accretion	(334,753)	(360,243)	(697,362)	(738,596)
Balance at end of period	$ 9,224,475	$ 12,588,168	$ 9,224,475	$ 12,588,168

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Allowance for Loan Losses (Details Textual) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
Increase (Decrease) in Loans, Deferred Income	$ 108,201	$ 121,717
Loans and Leases Receivable, Allowance, Covered	$ 15,052	$ 15,052

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Earnings Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Schedule Of Earnings Per Share [Line Items]
Net Income (Loss):	$ 46,903	$ (35,496)	$ (18,878)	$ 40,318
Weighted average number of shares issued	3,657,607	3,306,250	3,657,607	3,306,250
Less weighted average number of treasury stock shares	0	(151,136)	0	(151,136)
Less weighted average number of unearned ESOP shares	(212,158)	(82,829)	(214,414)	(83,909)
Less weighted average number of nonvested restricted stock awards	0	(4,172)	0	(4,651)
Weighted average shares outstanding basic	3,445,449	3,068,113	3,443,193	3,066,554
Weighted average shares outstanding diluted	3,445,449	3,068,113	3,443,193	3,066,554
Earnings per share:
Basic (in dollars per share)	$ 0.01	$ (0.01)	$ (0.01)	$ 0.01
Diluted (in dollars per share)	$ 0.01	$ (0.01)	$ (0.01)	$ 0.01

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Allowance for Loan Losses (Details 1) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
Total	$ 166,798,098	$ 139,025,037
Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	113,014	29,456
Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	15,310,312	18,079,171
Pass [Member] | Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	113,014	29,456
Pass [Member] | Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	11,004,155	11,955,576
Special Mention [Member] | Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	0	0
Special Mention [Member] | Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	2,580,431	2,645,840
Substandard [Member] | Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	0	0
Substandard [Member] | Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	1,725,726	3,477,755
Doubtful [Member] | Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	0	0
Doubtful [Member] | Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	0	0
Loss [Member] | Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	0	0
Loss [Member] | Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	$ 0	$ 0

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Deposits (Tables)

6 Months Ended

Jun. 30, 2013

Banking and Thrift [Abstract]

Summary Of Deposits [Table Text Block]

Deposit accounts are summarized as follows for the periods ending June 30, 2013 and December 31, 2012.

	June 30, 2013					December 31, 2012
	Amount		%			Amount		%
Non-interest bearing demand	$	6,435,161		3.33	%	$	7,611,053		3.87	%
NOW accounts		14,491,307		7.50			13,888,098		7.06
Money market deposit		38,273,402		19.80			39,842,088		20.25
Savings		30,084,194		15.56			30,093,442		15.30
Time deposits		104,061,003		53.81			105,288,565		53.52
Total	$	193,345,067		100.00	%	$	196,723,246		100.00	%

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unallocated Shares Held By Esop [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2012	$ 41,185,286	$ 35,113	$ 27,453,708	$ 15,099,489	$ (1,810,810)	$ 407,786
Balance (in shares) at Dec. 31, 2012		3,511,276
Net loss	(18,878)			(18,878)
Other comprehensive income, net	(120,370)					(120,370)
Allocation of unearned ESOP shares	84,555		3,893		80,662
Balance at Jun. 30, 2013	$ 41,130,593	$ 35,113	$ 27,457,601	$ 15,080,611	$ (1,730,148)	$ 287,416
Balance (in shares) at Jun. 30, 2013		3,511,276

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Business Description and Accounting Policies [Text Block]

1.             Summary of Significant Accounting Policies

Basis of Presentation

Polonia Bancorp, Inc. (“Polonia Bancorp” or the “Company”), a Maryland corporation, was incorporated in August 2011 and organized by Polonia MHC, Polonia Bancorp, and Polonia Bank (the “Bank”) to facilitate the second-step conversion of Polonia MHC from the mutual holding company structure to the stock holding company structure (the “Conversion”).  Upon consummation of the Conversion, which occurred on November 9, 2012, the Company became the holding company for the Bank and a 100 percent publicly owned stock holding company.  As a result of the Conversion, each share of Polonia Bancorp’s common stock owned by public shareholders was exchanged for 1.1136 shares of the Company’s common stock, with cash being paid in lieu of issuing fractional shares.  As a result of the Conversion, all share information has been revised to reflect the conversion rate.

                Concurrent with the Conversion, the Company sold a total of 2,025,078 shares of common stock in the subscription and community offerings at $8.00 per share, including 136,693 shares to the Polonia Bank Employee Stock Ownership Plan (“ESOP”).  The Company had common shares outstanding of 3,511,276 after the conversion, offering, and exchange.

               The Bank is a federally chartered savings bank located in Huntingdon Valley, Pennsylvania, whose principal sources of revenue derive from its investment securities portfolio and its portfolio of residential real estate, commercial real estate, and consumer loans, as well as a variety of deposit services offered to its customers through seven offices located in the Greater Philadelphia area.  The Bank is subject to regulation by the office of Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”).

               The consolidated financial statements include the accounts of the Bank and the Bank’s wholly owned subsidiaries, PBHMC (“PBMHC”), a Delaware investment company and Community Abstract Agency, LLC (“CAA”). CAA provides title insurance on loans secured by real estate.  All significant intercompany transactions have been eliminated in consolidation.  The investment in subsidiaries on the parent Company’s financial statements is carried at the parent Company’s equity in the underlying net assets.

                 On December 10, 2010, Polonia Bank assumed certain of the deposits and acquired certain assets of Earthstar Bank (“Earthstar”), a state charted bank from the FDIC as receiver for Earthstar.

                The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three and six month periods ended June 30, 2013 are not necessarily indicative of the results that may be expected for the full year.  The December 31, 2012 balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”).  For additional information, refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2012.

                Use of Estimates in the Preparation of Financial Statements.  The accounting principles followed by the Company and the methods of applying these principles conform to GAAP and to general practice within the banking industry.  In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Consolidated Balance Sheet date and reported amounts of revenues and expenses for the period.  Actual results could differ significantly from those estimates.  Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and the fair value of financial instruments.

                Recent Accounting and Regulatory Pronouncements

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220):  Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts.  For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012.  For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013.  Early adoption is permitted.  The Company has provided the necessary disclosures in Note 11.

                In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405):  Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance under GAAP.  Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings.  GAAP does not include specific guidance on accounting for such obligations with joint and several liabilities, which has resulted in diversity in practice.  Some entities record the entire amount under the joint and several liability arrangements on the basis of the concept of a liability and the guidance that must be met to extinguish a liability.  Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities.  The amendments in the update are effective for fiscal years, and the interim periods with those years, beginning after December 15, 2013.  For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter.  This ASU is not expected to have a significant impact on the Company’s financial statements.

                Reclassification of Comparative Amounts

Certain items previously reported have been reclassified to conform to the current year’s reporting format.  Such reclassifications did not affect consolidated net income (loss) or consolidated stockholders’ equity.

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Loans Receivable

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4.           Loans Receivable

Loans receivable consist of the following:

	June 30,		December 31,
	2013		2012
Mortgage Loans:
One-to-four family	$	134,577,872	$	101,792,670
Multi-family and commercial real estate		7,850,155		8,501,233
		142,428,027		110,293,903
Home equity loans		2,499,053		2,489,433
Home equity lines of credit (“HELOCs”)		812,821		1,852,532
Education loans		1,959,389		2,228,512
Other consumer loans		341		1,629
Non-covered consumer loans purchased		897,589		899,066
Covered loans		18,200,878		21,259,962
		166,798,098		139,025,037
Less:
Net deferred loan fees		52,550		222,704
Allowance for loan losses		1,065,809		1,507,770
Total	$	165,679,739	$	137,294,563

The components of covered loans by portfolio class as of June 30, 2013 and December 31, 2012 were as follows:

	June 30,		December 31,
	2013		2012
Mortgage loans:
One-to-four family	$	10,627,707	$	11,652,568
Multi-family and commercial real estate		7,460,157		9,577,938
		18,087,864		21,230,506
Commercial		113,014		29,456
Total Loans	$	18,200,878	$	21,259,962

The carrying value of loans acquired and accounted for in accordance with ASC 310-30 was determined by projecting discounted contractual cash flows.

The outstanding balance, including interest, and carrying values of loans acquired were as follows:

	June 30, 2013				December 31, 2012
			Acquired Loans				Acquired Loans
	Acquired Loans		Without Specific		Acquired Loans		Without Specific
	With Specific		Evidence of		With Specific		Evidence of
	Evidence of		Deterioration in		Evidence of		Deterioration in
	Deterioration in		Credit Quality		Deterioration in		Credit Quality
	Credit Quality		(ASC 310-30		Credit Quality		(ASC 310-30
	(ASC 310-30)		Analogized)		(ASC 310-30)		Analogized)
Outstanding balance	$	1,300,860	$	30,152,302	$	2,505,032	$	35,002,943
Carrying amount, net of allowance	$	781,066	$	18,302,349	$	982,086	$	21,176,942

During the six months ended June 30, 2013, the Company recorded a provision and charge-off of $38,817 for increases in the expected losses for acquired loans with specific evidence of deterioration in credit quality.  For the year ended December 31, 2012 the Company recorded a provision of $15,052 for increases in the expected losses for acquired loans with specific evidence of deterioration in credit quality.  For the year ended December 31, 2012, the allowance for loan losses of $73,270 which was recorded in 2011 was reversed by $20,805 with the remainder of $52,465 being charged-off.

Changes in the accretable yield for acquired loans were as follows for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
	Acquired Loans		Acquired Loans
	Without Specific		Without Specific
	Evidence of		Evidence of
	Deterioration in		Deterioration in
	Credit Quality		Credit Quality
	(ASC 310-30		(ASC 310-30
	Analogized)		Analogized)
Balance at beginning of period	$	9,927,911	$	11,044,664
Reclassifications and other		(368,683)		(1,122,827)
Accretion		(334,753)		(697,362)
Balance at end of period	$	9,224,475	$	9,224,475

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
			Acquired Loans				Acquired Loans
	Acquired Loans		Without Specific		Acquired Loans		Without Specific
	With Specific		Evidence of		With Specific		Evidence of
	Evidence of		Deterioration in		Evidence of		Deterioration in
	Deterioration in		Credit Quality		Deterioration in		Credit Quality
	Credit Quality		(ASC 310-30		Credit Quality		(ASC 310-30
	(ASC 310-30)		Analogized)		(ASC 310-30)		Analogized)
Balance at beginning of period	$	36,434	$	8,165,501	$	48,637	$	8,680,970
Reclassifications and other		-		4,782,910		-		4,645,794
Accretion		(36,434)		(360,243)		(48,637)		(738,596)
Balance at end of period	$	-	$	12,588,168	$	-	$	12,588,168

The $334,753 and $697,362 recognized as accretion represents the interest income earned on acquired loans for the three and six months ended June 30, 2013.  Included in reclassification and other for loans acquired without specific evidence of deterioration in credit quality was $9,069 and $146,799 of reclassifications from non-accretable discounts to accretable discounts for the three and six months ended June 30, 2013. The remaining $(377,752) and $(1,269,626) change in the accretable yield represents reductions in contractual interest due to contractual principal prepayments for the three and six months ended June 30, 2013.

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Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

2.           Earnings Per Share

The following table set forth the composition of the weighted average shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net Income (Loss):	$	46,903	$	(35,496)	$	(18,878)	$	40,318
Weighted average number of shares issued		3,657,607		3,306,250		3,657,607		3,306,250
Less weighted average number of treasury stock shares		-		(151,136)		-		(151,136)
Less weighted average number of unearned ESOP shares		(212,158)		(82,829)		(214,414)		(83,909)
Less weighted average number of nonvested restricted     stock awards		-		(4,172)		-		(4,651)
Weighted average shares outstanding basic		3,445,449		3,068,113		3,443,193		3,066,554
Weighted average shares outstanding diluted		3,445,449		3,068,113		3,443,193		3,066,554
Earnings per share:
Basic	$	0.01	$	(0.01)	$	(0.01)	$	0.01
Diluted		0.01		(0.01)		(0.01)		0.01

Options to purchase 171,386 shares of common stock as of June 30, 2013 and 2012, as well as 2,285 shares of restricted stock as of June 30, 2012, were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive.

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Loans Receivable (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Schedule of Loans Receivable [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	$ 38,817		$ 38,817		$ 73,270
Accretion	334,753		697,362
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease)					20,805
Non-accretable discount	9,069	146,799	9,069	146,799
Accretable yield	377,752	1,269,626	377,752	1,269,626
Provision (credit) for loan losses	460,952	0	558,106	223,418	52,465
Loans and Leases Receivable, Allowance, Covered	$ 15,052		$ 15,052		$ 15,052

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Fair Value Disclosure (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The estimated fair values of the Company’s financial instruments are summarized below:

	June 30, 2013				December 31,2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	11,322,657	$	11,322,657	$	25,061,666	$	25,061,666
Investment securities
Available for sale		14,679,868		14,679,868		16,139,282		16,139,282
Held to maturity		56,444,740		57,373,156		58,605,490		61,615,682
Loans held for sale		11,333,280		11,333,280		12,060,174		12,060,174
Net loans receivable		165,679,739		166,383,868		137,294,563		143,651,214
Accrued interest receivable		788,224		788,224		815,473		815,473
Federal Home Loan Bank stock		3,089,200		3,089,200		2,607,600		2,607,600
Bank-owned life insurance		4,254,543		4,254,543		4,240,364		4,240,364
FDIC indemnification asset		3,088,031		3,088,031		4,234,931		4,234,931
Financial liabilities:
Deposits	$	193,345,067	$	194,937,200	$	196,723,246	$	198,186,758
FHLB advances – long-term		38,000,000		39,094,400		25,500,000		27,392,100
Advances by borrowers for taxes and insurance		1,312,270		1,312,270		942,564		942,564
Accrued interest payable		74,695		74,695		64,760		64,760

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The estimated fair values of the Company’s financial instruments are as follows:

	Fair Value Measurements at June 30, 2013
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	11,322,657	$	-	$	-	$	11,322,657
Investment securities
Available for sale		-		14,679,868		-		14,679,868
Held to maturity		-		57,373,156		-		57,373,156
Loans held for sale		11,333,280		-		-		11,333,280
Net loans receivable		-		-		166,383,868		166,383,868
Accrued interest receivable		788,224		-		-		788,224
Federal Home Loan Bank stock		3,089,200		-		-		3,089,200
Bank-owned life insurance		4,254,543		-		-		4,254,543
FDIC indemnification asset		-		-		3,088,031		3,088,031
Financial liabilities:
Deposits		89,284,064		-		105,653,136		194,937,200
FHLB advance – long-term		-		-		39,094,400		39,094,400
Advances by borrowers for taxes and insurance		1,312,270		-		-		1,312,270
Accrued interest payable		74,695		-		-		74,695

	Fair Value Measurements at December 31, 2012
	(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	25,061,666	$	-	$	-	$	25,061,666
Investment securities
Available for sale		-		16,139,282		-		16,139,282
Held to maturity		-		61,615,682		-		61,615,682
Loans held for sale		12,060,174		-		-		12,060,174
Net loans receivable		-		-		143,651,214		143,651,214
Accrued interest receivable		815,473		-		-		815,473
Federal Home Loan Bank stock		2,607,600		-		-		2,607,600
Bank-owned life insurance		4,240,364		-		-		4,240,364
FDIC indemnification asset		-		-		4,234,931		4,234,931
Financial liabilities:
Deposits		91,434,681		-		106,752,077		198,186,758
FHLB advance – long-term		-		-		27,392,100		27,392,100
Advances by borrowers for taxes and insurance		942,564		-		-		942,564
Accrued interest payable		64,760		-		-		64,760

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Earnings Per Share (Details Textual)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Employee Stock Option [Member]
Schedule Of Earnings Per Share [Line Items]
Anti dilutive stock numbers	171,386	171,386
Restricted Stock [Member]
Schedule Of Earnings Per Share [Line Items]
Anti dilutive stock numbers		2,285

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Loans Receivable (Details) (USD $)	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	$ 166,798,098		$ 139,025,037
Less: Net deferred loan fees	52,550		222,704
Less: allowance for loan losses	1,065,809	1,499,433	1,507,770	1,246,995	1,145,952	1,279,008
Total	165,679,739		137,294,563
One To Four Family [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	134,577,872		101,792,670
Less: allowance for loan losses	734,689	687,133	677,877	720,382	597,479	611,280
Multi - Family and Commercial Real Estate [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	7,850,155		8,501,233
Less: allowance for loan losses	310,398	779,608	771,426	478,093	499,576	618,233
Home Equity Line of Credit [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	2,499,053		2,489,433
Less: allowance for loan losses	9,747	12,851	13,925	18,807	19,640	19,304
Home Equity Lines Of Credit [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	812,821		1,852,532
Less: allowance for loan losses	3,170	9,314	33,392	9,778	8,494	8,835
Education Loans [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	1,959,389		2,228,512
Other Consumer Loans [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	341		1,629
Non - Covered Consumer Loans Purchased [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	897,589		899,066
Covered Loans [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	18,200,878		21,259,962
Mortgage Receivable [Member]
Schedule of Loans Receivable [Line Items]
Loans and Leases Receivable, Gross, Total	$ 142,428,027		$ 110,293,903

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Fair Value Measurements (Details 1) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Impaired Loans [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,322,206	$ 2,994,666
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	0	0
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	0	0
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	3,322,206	2,994,666
Other Real Estate Owned [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	128,809	171,826
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	0	0
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	0	0
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Loans Receivable, Fair Value Disclosure	$ 128,809	$ 171,826

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Indemnification Asset (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Schedule of Indemnification Asset [Line Items]
Balance at the beginning of year	$ 4,234,931	$ 5,218,506	$ 5,218,506
Cash payments received or receivable due from the FDIC	(590,117)	(364,420)	(408,610)
Increase in FDIC share of estimated losses	0		0
Net amortization	(556,783)		(574,965)
Balance at the end of the period	$ 3,088,031		$ 4,234,931

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Allowance for Loan Losses (Details 3) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	$ 287,392	$ 1,625,585
60-89 Days Past Due	98,305	97,493
90 Days Or Greater	3,578,469	3,575,140
Total Past Due	3,964,166	5,298,218
Current	162,833,932	133,726,819
Total Loans Receivable	166,798,098	139,025,037
Recorded Investment > 90 Days and Accruing	0	0
One To Four Family Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	238,568	941,721
60-89 Days Past Due	0	55,802
90 Days Or Greater	2,638,289	1,827,880
Total Past Due	2,876,857	2,825,403
Current	142,328,722	110,619,835
Total Loans Receivable	145,205,579	113,445,238
Recorded Investment > 90 Days and Accruing	0	0
Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	0	637,442
60-89 Days Past Due	0	0
90 Days Or Greater	781,956	1,484,495
Total Past Due	781,956	2,121,937
Current	14,528,356	15,957,234
Total Loans Receivable	15,310,312	18,079,171
Recorded Investment > 90 Days and Accruing	0	0
Commercial Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	68,845	0
90 Days Or Greater	0	0
Total Past Due	68,845	0
Current	44,169	29,456
Total Loans Receivable	113,014	29,456
Recorded Investment > 90 Days and Accruing	0	0
Home Equity Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
90 Days Or Greater	10,579	10,329
Total Past Due	10,579	10,329
Current	2,488,474	2,479,104
Total Loans Receivable	2,499,053	2,489,433
Recorded Investment > 90 Days and Accruing	0	0
Home Equity Lines Of Credit Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
90 Days Or Greater	0	0
Total Past Due	0	0
Current	812,821	1,852,532
Total Loans Receivable	812,821	1,852,532
Recorded Investment > 90 Days and Accruing	0	0
Education and Other Consumer Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	39,848	46,422
60-89 Days Past Due	29,460	41,691
90 Days Or Greater	147,645	152,275
Total Past Due	216,953	240,388
Current	1,742,777	1,989,753
Total Loans Receivable	1,959,730	2,230,141
Recorded Investment > 90 Days and Accruing	0	0
Non - Covered Consumer Loans Purchased Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
30-59 Days Past Due	8,976	0
60-89 Days Past Due	0	0
90 Days Or Greater	0	100,161
Total Past Due	8,976	100,161
Current	888,613	798,905
Total Loans Receivable	897,589	899,066
Recorded Investment > 90 Days and Accruing	$ 0	$ 0

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Jun. 30, 2013	Dec. 31, 2012
Investment securities held to maturity fair value (in dollars)	$ 57,373,156	$ 61,615,682
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shared authorized	14,000,000	14,000,000
Common stock, shares issued	3,511,276	3,511,276
Unallocated shares held by Employee Stock Ownership Plan	214,414	219,668

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Deposits

6 Months Ended

Jun. 30, 2013

Banking and Thrift [Abstract]

Deposit Liabilities Disclosures [Text Block]

7. Deposits

Deposit accounts are summarized as follows for the periods ending June 30, 2013 and December 31, 2012.

	June 30, 2013					December 31, 2012
	Amount		%			Amount		%
Non-interest bearing demand	$	6,435,161		3.33	%	$	7,611,053		3.87	%
NOW accounts		14,491,307		7.50			13,888,098		7.06
Money market deposit		38,273,402		19.80			39,842,088		20.25
Savings		30,084,194		15.56			30,093,442		15.30
Time deposits		104,061,003		53.81			105,288,565		53.52
Total	$	193,345,067		100.00	%	$	196,723,246		100.00	%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net income (loss)	$ 46,903	$ (35,496)	$ (18,878)	$ 40,318
Changes in net unrealized gain (loss) on investment securities available for sale	(201,138)	39,664	(182,380)	45,158
Tax effect	68,387	(13,486)	62,010	(15,354)
Total comprehensive income (loss)	$ (85,848)	$ (9,318)	$ (139,248)	$ 70,122

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Fair Value Disclosure (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Financial assets:
Cash and cash equivalents, Carrying Value	$ 11,322,657	$ 25,061,666	$ 28,002,122	$ 17,416,198
Cash and cash equivalents, Fair Value	11,322,657	25,061,666
Investment securities
Available for sale, Carrying Value	14,679,868	16,139,282
Held to Maturity, Carrying Value	56,444,740	58,605,490
Loans held for sale, Carrying Value	11,333,280	12,060,174
Net loans receivable, Carrying Value	165,679,739	137,294,563
Accrued interest receivable, Carrying Value	788,224	815,473
Federal Home Loan Bank stock, Carrying Value	3,089,200	2,607,600
Bank-owned life insurance, Carrying Value	4,254,543	4,240,364
FDIC indemnification asset	3,088,031	4,234,931		5,218,506
Available For Sale, Fair Value	14,679,868	16,139,282
Held To Maturity, Fair Value	57,373,156	61,615,682
Loans Held For Sale, Fair Value	11,333,280	12,060,174
Net loans receivable, Fair Value	166,383,868	143,651,214
Accrued interest receivable, Fair Value	788,224	815,473
Federal Home Loan Bank stock, Fair Value	3,089,200	2,607,600
Bank-owned life insurance, Fair Value	4,254,543	4,240,364
FDIC idemnification asset, Fair Value	3,088,031	4,234,931
Financial liabilities:
Deposits, Carrying Value	193,345,067	196,723,246
FHLB advances- long-term, Carrying Value	38,000,000	25,500,000
Advances by borrowers for taxes and insurance	1,312,270	942,564
Accrued interest payable, Carrying Value	74,695	64,760
Deposits, Fair Value	194,937,200	198,186,758
FHLB advances- long-term, Fair Value	39,094,400	27,392,100
Advances by borrowers for taxes and insurance, Fair Value	1,312,270	942,564
Accrued interest payable, Fair Value	$ 74,695	$ 64,760

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CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2013		Dec. 31, 2012
ASSETS
Cash and due from banks	$ 2,312,700		$ 2,489,092
Interest-bearing deposits with other institutions	9,009,957		22,572,574
Cash and cash equivalents	11,322,657		25,061,666
Investment securities available for sale	14,679,868		16,139,282
Investment securities held to maturity (fair value of $57,373,156 and $61,615,682)	56,444,740		58,605,490
Loans held for sale	11,333,280		12,060,174
Loans receivable	148,544,670		117,542,371
Covered loans	18,200,878		21,259,962
Total loans	166,745,548		138,802,333
Less: allowance for loan losses	1,065,809		1,507,770
Net loans	165,679,739		137,294,563
Accrued interest receivable	788,224		815,473
Federal Home Loan Bank stock	3,089,200		2,607,600
Premises and equipment, net	4,898,209		4,916,239
Bank-owned life insurance	4,254,543		4,240,364
FDIC indemnification asset	3,088,031		4,234,931
Other assets	1,624,985		1,488,281
TOTAL ASSETS	277,203,476		267,464,063
LIABILITIES
Deposits	193,345,067		196,723,246
FHLB advances - long term	38,000,000		25,500,000
Advances by borrowers for taxes and insurance	1,312,270		942,564
Accrued interest payable	74,695		64,760
Other liabilities	3,340,851		3,048,207
TOTAL LIABILITIES	236,072,883		226,278,777
Commitments and contingencies	0		0
STOCKHOLDERS' EQUITY
Preferred stock ($.01 par value; 1,000,000 shares authorized; none issued or outstanding)	0		0
Common stock ($.01 par value; 14,000,000 shares authorized; 3,511,276 shares issued)	35,113		35,113
Additional paid-in-capital	27,457,601		27,453,708
Retained earnings	15,080,611		15,099,489
Unallocated shares held by Employee Stock Ownership Plan “ESOP” (214,414 and 219,668 shares)	(1,730,148)		(1,810,810)
Accumulated other comprehensive income	287,416	[1]	407,786	[1]
TOTAL STOCKHOLDERS’ EQUITY	41,130,593		41,185,286
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 277,203,476		$ 267,464,063

[1] All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

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Deposits (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Deposits [Line Items]
Non-interest-bearing demand	$ 6,435,161	$ 7,611,053
NOW accounts	14,491,307	13,888,098
Money market deposit	38,273,402	39,842,088
Savings	30,084,194	30,093,442
Time deposits	104,061,003	105,288,565
Total	$ 193,345,067	$ 196,723,246
Non-interest-bearing demand, percentage	3.33%	3.87%
NOW accounts, percentage	7.50%	7.06%
Money market deposit, percentage	19.80%	20.25%
Savings, percentage	15.56%	15.30%
Time deposits, percentage	53.81%	53.52%
Total, percentage	100.00%	100.00%

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The activity in accumulated other comprehensive income for the three and six months ended June 30, 2013 and 2012 are as follows:

	Accumulated Other Comprehensive Income (1)
	Unrealized Gains (Losses) on Securities Available-for-Sale		Total
Balance at December 31, 2012	$	407,786	$	407,786
Other comprehensive income before reclassifications		(120,370)		(120,370)
Period change		(120,370)		(120,370)
Balance at June 30, 2013	$	287,416	$	287,416
Balance at December 31, 2011	$	303,657	$	303,657
Other comprehensive income before reclassifications		29,804		29,804
Period change		29,804		29,804
Balance at June 30, 2012	$	333,461	$	333,461

(1) All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

	Accumulated Other Comprehensive Income (1)
	Unrealized Gains (Losses) on Securities Available-for-Sale		Total
Balance at March 31, 2013	$	420,167	$	420,167
Other comprehensive income before reclassifications		(132,751)		(132,751)
Period change		(132,751)		(132,751)
Balance at June 30, 2013	$	287,416	$	287,416
Balance at March 31, 2012	$	359,639	$	359,639
Other comprehensive income before reclassifications		(26,178)		(26,178)
Period change		(26,178)		(26,178)
Balance at June 30, 2012	$	333,461	$	333,461

(1) All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

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Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Allowance For Loan Losses [Abstract]

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following tables summarize changes in the allowance for loan losses:

	Allowance for Loan Losses   For the Three and Six Months Ended June 30, 2013 and 2012
	One-to-  Four Family  Real Estate		Multi-Family  and  Commercial   Real Estate		Commercial		Home  Equity		HELOC’s		Education  and Other  Consumer		Total
Three Months Ended June 30, 2013
Allowance for Loan Losses:
Balance at beginning of period	$	687,133	$	779,608	$	-	$	12,851	$	9,314	$	10,527	$	1,499,433
Provision (credit) for loan losses		45,228		(109,216)		-		(3,104)		98,814		(2,722)		25,000
Charge-offs		-		(359,994)		-		-		(100,958)		-		(460,952)
Recoveries		2,328		-		-		-		-		-		2,328
Net (charge-offs) recoveries		2,328		(359,994)		-		-		(100,958)		-		(458,624)
Balance at end of period	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Three Months Ended June 30, 2012
Allowance for Loan Losses:
Balance at beginning of period	$	597,479	$	499,576	$	-	$	19,640	$	8,494	$	20,763	$	1,145,952
Provision (credit) for loan losses		122,375		(21,483)		-		(833)		1,284		(828)		100,515
Charge-offs		-		-		-		-		-		-		-
Recoveries		528		-		-		-		-		-		528
Net (charge-offs) recoveries		528		-		-		-		-		-		528
Balance at end of period	$	720,382	$	478,093	$	-	$	18,807	$	9,778	$	19,935	$	1,246,995
Six Months Ended June 30, 2013
Allowance for Loan Losses:
Balance at beginning of period	$	677,877	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,507,770
Provision (credit) for loan losses		151,638		(101,034)		-		(4,178)		70,736		(3,345)		113,817
Charge-offs		(97,154)		(359,994)		-		-		(100,958)		-		(558,106)
Recoveries		2,328		-		-		-		-		-		2,328
Net (charge-offs) recoveries		(94,826)		(359,994)		-		-		(100,958)		-		(555,778)
Balance at end of period	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Six Months Ended June 30, 2012
Allowance for Loan Losses:
Balance at beginning of period	$	611,280	$	618,233	$	-	$	19,304	$	8,835	$	21,356	$	1,279,008
Provision (credit) for loan losses		331,689		(140,140)		-		(497)		943		(1,421)		190,574
Charge-offs		(223,418)		-		-		-		-		-		(223,418)
Recoveries		831		-		-		-		-		-		831
Net (charge-offs) recoveries		(222,587)		-		-		-		-		-		(222,587)
Balance at end of period	$	720,382	$	478,093	$	-	$	18,807	$	9,778	$	19,935	$	1,246,995

The following tables present the allowance for credit losses and recorded investments in loans by category:

	At June 30, 2013
	One-to- Four Family Real Estate		Multi-family  and Commercial Real Estate		Commercial		Home Equity		HELOCs		Education and Other Consumer		Total
Allowance for loan losses:
Ending balance	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Ending balance: individually    evaluated for impairment	$	29,288	$	-	$	-	$	-	$	-	$	-	$	29,288
Ending balance: collectively    evaluated for impairment	$	705,401	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,036,521
Ending balance: loans acquired    with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans:
Ending balance	$	145,205,579	$	15,310,312	$	113,014	$	2,499,053	$	812,821	$	2,857,319	$	166,798,098
Ending balance: individually    evaluated for impairment	$	2,448,881	$	614,308	$	-	$	10,579	$	-	$	-	$	3,073,768
Ending balance: collectively    evaluated for impairment	$	132,128,991	$	7,235,847	$	-	$	2,488,474	$	812,821	$	1,959,730	$	144,625,863
Ending balance: loans acquired    with deteriorated credit quality	$	10,627,707	$	7,460,157	$	113,014	$	-	$	-	$	897,589	$	19,098,467

	At December 31, 2012
	One-to- Four Family Real Estate		Multi-family  and Commercial Real Estate		Commercial		Home Equity		HELOCs		Education and Other Consumer		Total
Allowance for loan losses:
Ending balance	$	677,877	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,507,770
Ending balance: individually    evaluated for impairment	$	39,640	$	-	$	-	$	-	$	-	$	-	$	39,640
Ending balance: collectively    evaluated for impairment	$	638,237	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,468,130
Ending balance: loans acquired    with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans:
Ending balance	$	113,445,238	$	18,079,171	$	29,456	$	2,489,433	$	1,852,532	$	3,129,207	$	139,025,037
Ending balance: individually    evaluated for impairment	$	1,628,519	$	1,125,968	$	-	$	-	$	-	$	-	$	2,754,487
Ending balance: collectively    evaluated for impairment	$	100,164,151	$	7,375,265	$	-	$	2,489,433	$	1,852,532	$	2,230,141	$	114,111,522
Ending balance: loans acquired    with deteriorated credit quality	$	11,652,568	$	9,577,938	$	29,456	$	-	$	-	$	899,066	$	22,159,028

Financing Receivable Credit Quality Indicators [Table Text Block]

                The following table presents classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful, and Loss within the internal risk rating system as of June 30, 2013 and December 31, 2012. 

	June 30,				December 31,
	2013				2012
	Multi-Family				Multi-Family
	and Commercial				and Commercial
	Real Estate		Commercial		Real Estate		Commercial
Pass	$	11,004,155	$	113,014	$	11,955,576	$	29,456
Special Mention		2,580,431		-		2,645,840		-
Substandard		1,725,726		-		3,477,755		-
Doubtful		-		-		-		-
Loss		-		-		-		-
Total	$	15,310,312	$	113,014	$	18,079,171	$	29,456

Schedule Of Recorded Investment In The Loan Classes Based On Payment Activity [Table Text Block]

The following table presents recorded investment in the loan classes based on payment activity as of June 30, 2013 and December 31, 2012:

	At June 30, 2013
	One-to-  Four Family  Real Estate		Home Equity		HELOCs		Education  and Other  Consumer		Non-covered  Consumer Loans  Purchased
Performing	$	142,567,290	$	2,488,474	$	812,821	$	1,812,085	$	897,589
Nonperforming		2,638,289		10,579		-		147,645		-
Total	$	145,205,579	$	2,499,053	$	812,821	$	1,959,730	$	897,589

	At December 31, 2012
	One-to-  Four Family  Real Estate		Home  Equity		HELOCs		Education  and Other  Consumer		Non-covered  Consumer Loans  Purchased
Performing	$	111,617,358	$	2,479,104	$	1,852,532	$	2,077,866	$	798,905
Nonperforming		1,827,880		10,329		-		152,275		100,161
Total	$	113,445,238	$	2,489,433	$	1,852,532	$	2,230,141	$	899,066

Past Due Financing Receivables [Table Text Block]

Following is a table which includes an aging analysis of the recorded investment of past due loans:

	At June 30, 2013
	30-59 Days  Past Due		60-89 Days  Past Due		90 Days   Or Greater		Total Past  Due		Current		Total  Loans  Receivable		Recorded  Investment  >  90 Days and  Accruing
One-to-four family    real estate	$	238,568	$	-	$	2,638,289	$	2,876,857	$	142,328,722	$	145,205,579	$	-
Multi-family and														-
commercial real estate		-		-		781,956		781,956		14,528,356		15,310,312		-
Commercial		-		68,845		-		68,845		44,169		113,014		-
Home equity		-		-		10,579		10,579		2,488,474		2,499,053		-
HELOC’s		-		-		-		-		812,821		812,821		-
Education and other														-
consumer		39,848		29,460		147,645		216,953		1,742,777		1,959,730		-
Non-covered consumer														-
loans purchased		8,976		-		-		8,976		888,613		897,589		-
Total	$	287,392	$	98,305	$	3,578,469	$	3,964,166	$	162,833,932	$	166,798,098	$	-

	At December 31, 2012
	30-59 Days  Past Due		60-89 Days  Past Due		90 Days   Or Greater		Total Past  Due		Current		Total Loans  Receivable		Recorded  Investment >  90 Days and  Accruing
One-to-four family
real estate	$	941,721	$	55,802	$	1,827,880	$	2,825,403	$	110,619,835	$	113,445,238	$	-
Multi-family and														-
commercial real estate		637,442		-		1,484,495		2,121,937		15,957,234		18,079,171		-
Commercial		-		-		-		-		29,456		29,456		-
Home equity		-		-		10,329		10,329		2,479,104		2,489,433		-
HELOC’s		-		-		-		-		1,852,532		1,852,532		-
Education and other														-
consumer		46,422		41,691		152,275		240,388		1,989,753		2,230,141		-
Non-covered consumer														-
loans purchased		-		-		100,161		100,161		798,905		899,066		-
Total	$	1,625,585	$	97,493	$	3,575,140	$	5,298,218	$	133,726,819	$	139,025,037	$	-

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

                On the following table are the loans on nonaccrual status as of June 30, 2013 and December 31, 2012.  The balances are presented by class of loans.

	June 30,  2013		December 31,  2012
One-to-four family mortgage	$	2,638,289	$	1,827,880
Multi-family and commercial real estate		781,956		1,484,495
Home Equity		10,579		10,329
Education and other consumer		147,645		152,275
Non-covered consumer loans purchased		-		100,161
Total	$	3,578,469	$	3,575,140

Impaired Financing Receivables [Table Text Block]

                The following table presents the recorded investment and unpaid principal balances for impaired loans and related allowance, if applicable.  Also, presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	June 30, 2013
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Witn no related allowance recorded:
One -to-four family real estate	$	1,489,289	$	1,901,548	$	-	$	794,846	$	690
Multi-family and commercial real estate		894,127		996,037		-		895,078		18,650
Home equity		10,579		10,579		-		1,763		-
With an allowance recorded:
One -to-four family real estate	$	957,499	$	957,499	$	29,288	$	853,136	$	17,512
Multi-family and commercial real estate		-		-		-		-		-
Home equity		-		-		-		-		-
Total:
One -to-four family real estate	$	2,446,788	$	2,859,047	$	29,288	$	1,647,982	$	18,202
Multi-family and commercial real estate		894,127		996,037		-		895,078		18,650
Home equity		10,579		10,579		-		1,763		-

	December 31, 2012
	Recorded  Investment		Unpaid  Principal  Balance		Related  Allowance		Average  Recorded  Investment		Interest  Income  Recognized
With no related allowance recorded:
One-to-four family real estate	$	701,324	$	837,806	$	-	$	489,509	$	116
Multi-family and commercial real estate		1,405,787		1,867,431		-		1,107,636		56,790
With an allowance recorded:
One-to-four family real estate	$	927,195	$	936,739	$	39,640	$	944,346	$	28,304
Multi-family and commercial real estate		-		-		-		-		-
Total:
One-to-four family real estate	$	1,628,519	$	1,774,545	$	39,640	$	1,433,855	$	28,420
Multi-family and commercial real estate		1,405,787		1,867,431		-		1,107,636		56,790

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

                Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2013 and 2012, respectively were as follows:

(In Thousands, Except Number of Contracts)	Three Months Ended June 30,
	2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding  Recorded Investment		Post- Modification  Outstanding Recorded Investment
Troubled debt restructurings
One-to-four family mortgage	1	$	160,992	$	160,992	-	$	-	$	-
Total	1	$	160,992	$	160,992	-	$	-	$	-

(In Thousands, Except Number of Contracts)	Six Months Ended June 30,
	2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Troubled debt restructurings
One-to-four family mortgage	2	$	283,456	$	218,292	-	$	-	$	-
Total	2	$	283,456	$	218,292	-	$	-	$	-

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Allowance for Loan Losses (Details 2) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
Total	$ 166,798,098	$ 139,025,037
One To Four Family Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	145,205,579	113,445,238
One To Four Family Portfolio [Member] | Performing Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	142,567,290	111,617,358
One To Four Family Portfolio [Member] | Nonperforming Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	2,638,289	1,827,880
Home Equity Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	2,499,053	2,489,433
Home Equity Portfolio Segment [Member] | Performing Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	2,488,474	2,479,104
Home Equity Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	10,579	10,329
Home Equity Lines Of Credit Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	812,821	1,852,532
Home Equity Lines Of Credit Portfolio Segment [Member] | Performing Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	812,821	1,852,532
Home Equity Lines Of Credit Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	0	0
Education and Other Consumer Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	1,959,730	2,230,141
Education and Other Consumer Portfolio [Member] | Performing Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	1,812,085	2,077,866
Education and Other Consumer Portfolio [Member] | Nonperforming Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	147,645	152,275
Non - Covered Consumer Loans Purchased Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	897,589	899,066
Non - Covered Consumer Loans Purchased Portfolio [Member] | Performing Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	897,589	798,905
Non - Covered Consumer Loans Purchased Portfolio [Member] | Nonperforming Financing Receivable [Member]
Schedule of Allowance for Loan Losses [Line Items]
Total	$ 0	$ 100,161

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Fair Value Measurements (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Fair Value Measurements [Line Items]
Total Assets	$ 14,679,868	$ 16,139,282
Fair Value, Inputs, Level 1 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	0	0
Fair Value, Inputs, Level 2 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	14,679,868	16,139,282
Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	0	0
Collateralized Mortgage Backed Securities [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	5,346,107	6,767,393
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	0	0
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	5,346,107	6,767,393
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	0	0
Corporate Debt Securities [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	9,333,761	9,371,889
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	0	0
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	9,333,761	9,371,889
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Fair Value Measurements [Line Items]
Total Assets	$ 0	$ 0

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Loans Receivable (Details 2) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Acquired Loans With Specific Evidence Of Deterioration In Credit Quality (Asc 310-30) [Member]
Schedule of Loans Receivable [Line Items]
Outstanding balance	$ 1,300,860	$ 2,505,032
Carrying amount, net of allowance	781,066	982,086
Acquired Loans Without Specific Evidence Of Deterioration In Credit Quality (Asc310-30 Analogized) [Member]
Schedule of Loans Receivable [Line Items]
Outstanding balance	30,152,302	35,002,943
Carrying amount, net of allowance	$ 18,302,349	$ 21,176,942

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Investment Securities (Details 2) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Investment Securities [Line Items]
Available for Sale, Amortized Cost, Due within one year	$ 1,974,113
Available for Sale, Amortized Cost, Due after one year through five years	5,754,317
Available for Sale, Amortized Cost, Due after five years through ten years	3,405,409
Available for Sale, Amortized Cost, Due after ten years	3,110,551
Available for Sale, Amortized Cost, Total	14,244,390
Available for Sale, Fair Value, Due within one year	2,019,727
Available for Sale, Fair Value, Due after one year through five years	5,878,275
Available for Sale, Fair Value, Due after five years through ten years	3,504,129
Available for Sale, Fair Value, Due after ten years	3,277,737
Available for Sale, Fair Value, Total	14,679,868	16,139,282
Held to Maturity, Amortized Cost, Due within one year	0
Held to Maturity, Amortized Cost, Due after one year through five years	0
Held to Maturity, Amortized Cost, Due after five years through ten years	11,665,672
Held to Maturity, Amortized Cost, Due after ten years	44,779,068
Held to Maturity, Amortized Cost, Total	56,444,740	58,605,490
Held to Maturity, Fair Value, Due within one year	0
Held to Maturity, Fair Value, Due after one year through five years	0
Held to Maturity, Fair Value, Due after five years through ten years	12,061,243
Held to Maturity, Fair Value, Due after ten years	45,311,913
Held to Maturity, Fair Value, Total	$ 57,373,156	$ 61,615,682

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Investment Securities (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Schedule of Investment Securities [Line Items]
Proceeds from sales	$ 0	$ 0	$ 0	$ 0
Description Of Available For Sale Securities Debt Contractual Maturities Period			Mortgage-backed securities provide for periodic, general monthly, payments of principal and interest and have contractual maturities ranging from 1 to 32 years.

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Indemnification Asset

6 Months Ended

Jun. 30, 2013

Banking and Thrift [Abstract]

Banking and Thrift Disclosure [Text Block]

6. Indemnification Asset

Changes in the FDIC indemnification asset during the six months ended June 30, 2013 and the year ended December 31, 2012 are as follows:

	June 30, 2013		December 31, 2012
Balance at the beginning of year	$	4,234,931	$	5,218,506
Cash payments received or receivable due from the FDIC		(590,117)		(408,610)
Increase in FDIC share of estimated losses		-		-
Net amortization		(556,783)		(574,965)
Balance at the end of the period	$	3,088,031	$	4,234,931

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Accumulated Other Comprehensive Income (Details Textual)	6 Months Ended
	Jun. 30, 2013
Provision at statutory rate, % of pretax Income	34.00%

XML

Summary of Significant Accounting Policies (Details Textual)	6 Months Ended
	Jun. 30, 2013	Nov. 09, 2012
Summary of Significant Accounting Policies [Line Items]
Minority Ownership Description	Upon consummation of the conversion which occurred on November 9, 2012, the Company became the holding company for the Bank and a 100 percent publicly owned stock holding company. As a result of the conversion, each share of Polonia Bancorp’s common stock owned by public shareholders was exchanged for 1.1136 shares of the Company’s common stock, with cash being paid in lieu of issuing fractional shares.
Conversion of Stock, Description	Concurrent with the conversion, the Company sold a total of 2,025,078 shares of common stock in the subscription and community offerings at $8.00 per share, including 136,693 shares to the Polonia Bank Employee Stock Ownership Plan (“ESOP”). The Company had common shares outstanding of 3,511,276 after the conversion, offering, and exchange.
Common Stock, Shares, Outstanding	3,511,276
Stock Issued During Period, Shares, Employee Stock Ownership Plan	136,693
Stock Issued During Period, Shares, New Issues	2,025,078
Step Conversion Exchange Rate Per Share		1.1136
Step Conversion Community Offerings	8.00

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Allowance for Loan Losses (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	$ 1,499,433	$ 1,145,952	$ 1,507,770	$ 1,279,008	$ 1,279,008
Provision (credit) for loan losses	25,000	100,515	113,817	190,574
Charge-offs	(460,952)	0	(558,106)	(223,418)	(52,465)
Recoveries	2,328	528	2,328	831
Net (charge-offs) recoveries	(458,624)	528	(555,778)	(222,587)
Balance at end of period	1,065,809	1,246,995	1,065,809	1,246,995	1,507,770
Allowance for loan losses: Ending balance	1,065,809		1,065,809		1,507,770
Allowance for loan losses: Ending balance: individually evaluated for impairment	29,288		29,288		39,640
Allowance for loan losses: Ending balance: collectively evaluated for impairment	1,036,521		1,036,521		1,468,130
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	166,798,098		166,798,098		139,025,037
Loans: Ending balance: individually evaluated for impairment	3,073,768		3,073,768		2,754,487
Loans: Ending balance: collectively evaluated for impairment	144,625,863		144,625,863		114,111,522
Loans: Ending balance: loans acquired with deteriorated credit quality	19,098,467		19,098,467		22,159,028
One To Four Family [Member]
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	687,133	597,479	677,877	611,280	611,280
Provision (credit) for loan losses	45,228	122,375	151,638	331,689
Charge-offs	0	0	(97,154)	(223,418)
Recoveries	2,328	528	2,328	831
Net (charge-offs) recoveries	2,328	528	(94,826)	(222,587)
Balance at end of period	734,689	720,382	734,689	720,382
Allowance for loan losses: Ending balance	734,689		734,689		677,877
Allowance for loan losses: Ending balance: individually evaluated for impairment	29,288		29,288		39,640
Allowance for loan losses: Ending balance: collectively evaluated for impairment	705,401		705,401		638,237
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	145,205,579		145,205,579		113,445,238
Loans: Ending balance: individually evaluated for impairment	2,448,881		2,448,881		1,628,519
Loans: Ending balance: collectively evaluated for impairment	132,128,991		132,128,991		100,164,151
Loans: Ending balance: loans acquired with deteriorated credit quality	10,627,707		10,627,707		11,652,568
Multi - Family and Commercial Real Estate [Member]
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	779,608	499,576	771,426	618,233	618,233
Provision (credit) for loan losses	(109,216)	(21,483)	(101,034)	(140,140)
Charge-offs	(359,994)	0	(359,994)	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	(359,994)	0	(359,994)	0
Balance at end of period	310,398	478,093	310,398	478,093
Allowance for loan losses: Ending balance	310,398		310,398		771,426
Allowance for loan losses: Ending balance: individually evaluated for impairment	0		0		0
Allowance for loan losses: Ending balance: collectively evaluated for impairment	310,398		310,398		771,426
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	15,310,312		15,310,312		18,079,171
Loans: Ending balance: individually evaluated for impairment	614,308		614,308		1,125,968
Loans: Ending balance: collectively evaluated for impairment	7,235,847		7,235,847		7,375,265
Loans: Ending balance: loans acquired with deteriorated credit quality	7,460,157		7,460,157		9,577,938
Commercial Loan [Member]
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	0	0	0	0	0
Provision (credit) for loan losses	0	0	0	0
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Balance at end of period	0	0	0	0
Allowance for loan losses: Ending balance	0		0		0
Allowance for loan losses: Ending balance: individually evaluated for impairment	0		0		0
Allowance for loan losses: Ending balance: collectively evaluated for impairment	0		0		0
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	113,014		113,014		29,456
Loans: Ending balance: individually evaluated for impairment	0		0		0
Loans: Ending balance: collectively evaluated for impairment	0		0		0
Loans: Ending balance: loans acquired with deteriorated credit quality	113,014		113,014		29,456
Home Equity Line of Credit [Member]
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	12,851	19,640	13,925	19,304	19,304
Provision (credit) for loan losses	(3,104)	(833)	(4,178)	(497)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Balance at end of period	9,747	18,807	9,747	18,807
Allowance for loan losses: Ending balance	9,747		9,747		13,925
Allowance for loan losses: Ending balance: individually evaluated for impairment	0		0		0
Allowance for loan losses: Ending balance: collectively evaluated for impairment	9,747		9,747		13,925
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	2,499,053		2,499,053		2,489,433
Loans: Ending balance: individually evaluated for impairment	10,579		10,579		0
Loans: Ending balance: collectively evaluated for impairment	2,488,474		2,488,474		2,489,433
Loans: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Home Equity Lines Of Credit [Member]
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	9,314	8,494	33,392	8,835	8,835
Provision (credit) for loan losses	98,814	1,284	70,736	943
Charge-offs	(100,958)	0	(100,958)	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	(100,958)	0	(100,958)	0
Balance at end of period	3,170	9,778	3,170	9,778
Allowance for loan losses: Ending balance	3,170		3,170		33,392
Allowance for loan losses: Ending balance: individually evaluated for impairment	0		0		0
Allowance for loan losses: Ending balance: collectively evaluated for impairment	3,170		3,170		33,392
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	812,821		812,821		1,852,532
Loans: Ending balance: individually evaluated for impairment	0		0		0
Loans: Ending balance: collectively evaluated for impairment	812,821		812,821		1,852,532
Loans: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Education and Other Consumer [Member]
Schedule of Allowance for Loan Losses [Line Items]
Balance at beginning of period	10,527	20,763	11,150	21,356	21,356
Provision (credit) for loan losses	(2,722)	(828)	(3,345)	(1,421)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Balance at end of period	7,805	19,935	7,805	19,935
Allowance for loan losses: Ending balance	7,805		7,805		11,150
Allowance for loan losses: Ending balance: individually evaluated for impairment	0		0		0
Allowance for loan losses: Ending balance: collectively evaluated for impairment	7,805		7,805		11,150
Allowance for loan losses: Ending balance: loans acquired with deteriorated credit quality	0		0		0
Loans: Ending balance	2,857,319		2,857,319		3,129,207
Loans: Ending balance: individually evaluated for impairment	0		0		0
Loans: Ending balance: collectively evaluated for impairment	1,959,730		1,959,730		2,230,141
Loans: Ending balance: loans acquired with deteriorated credit quality	$ 897,589		$ 897,589		$ 899,066

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value, Option [Text Block]

9. Fair Value Measurements

GAAP establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by GAAP hierarchy are as follows:

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.

Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the assets reported on the consolidated balance sheets at their fair value as of June 30, 2013 and December 31, 2012, respectively, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012, are as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Available for Sale
Mortgage-backed securities	$	-	$	5,346,107	$	-	$	5,346,107
Corporate Securities		-		9,333,761		-		9,333,761
Total	$	-	$	14,679,868	$	-	$	14,679,868

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Available for Sale
Mortgage-backed securities	$	-	$	6,767,393	$	-	$	6,767,393
Corporate Securities		-		9,371,889		-		9,371,889
Total	$	-	$	16,139,282	$	-	$	16,139,282

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012, are as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	-	$	-	$	3,322,206	$	3,322,206
Other real estate owned		-		-		128,809		128,809

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	-	$	-	$	2,994,666	$	2,994,666
Other real estate owned		-		-		171,826		171,826

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value.

	June 30, 2013 Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
Impaired loans	$	3,322,206	Appraisal of	Appraisal
			collateral (1)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%
Other real estate owned		128,809	Appraisal of	Appraisal
			collateral (1), (3)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%

	December 31, 2012 Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
Impaired loans	$	2,994,666	Appraisal of	Appraisal
			collateral (1)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%
Other real estate owned		171,826	Appraisal of	Appraisal
			collateral (1), (3)	adjustments (2)	0% to 30%
				Liquidation
				expenses (2)	0% to 6%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

All of the securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions among other things.

Impaired loans are reported at fair value utilizing level three inputs. For these loans, a review of the collateral is conducted and an appropriate allowance for loan losses is allocated to the loan. At June 30, 2013, and December 31, 2012 impaired loans with a carrying value of $3,351,494 and $3,034,306 were reduced by specific valuation allowances totaling $29,288 and $39,640 resulting in a net fair value of $3,322,206 and $2,994,666 based on Level 3 inputs.

Other real estate owned is reported at fair value utilizing level 3 inputs. For these assets, a review of the collateral and an analysis of the expenses related to selling these assets is conducted and a charge-offs recorded to the allowance for loan losses.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiplies derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. As of June 30, 2013 and December 31, 2012, all of the financial assets measured at fair value, on a recurring basis, utilized the market approach.

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Allowance for Loan Losses

6 Months Ended

Jun. 30, 2013

Allowance For Loan Losses [Abstract]

Allowance For Loan Losses [Text Block]

5.      Allowance for Loan Losses

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio.  For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type.  Loans are segmented into the following pools: 1-4 family, multi-family and commercial real estate, commercial, home equity, home equity lines of credit, and education and other loans.  Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations.  These historical loss percentages are calculated over a three year period for all portfolio segments.  Certain qualitative factors are then added to the historical allocation percentage to arrive and get the adjusted factor to be applied to nonclassified loans.  The following qualitative factors are analyzed for each portfolio segment:

· Levels of and trends in delinquencies

· Trends in volume and terms

· Trends in credit quality ratings

· Changes in management and lending staff

· Economic trends

· Concentrations of credit

· Changes in lending policies

· Changes in loan review

· External factors

These qualitative factors are reviewed each quarter and adjusted based upon relevant changes within the portfolio.

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet date.  The Company considers the allowance for loan losses adequate to cover loan losses inherent in the loan portfolio, at June 30, 2013.  Included in the allowance for loan losses is $15,052 related to loans covered by loss share agreements with the FDIC as of June 30, 2013 and December 31, 2012, respectively.

The following tables summarize changes in the allowance for loan losses:

	Allowance for Loan Losses   For the Three and Six Months Ended June 30, 2013 and 2012
	One-to-  Four Family  Real Estate		Multi-Family  and  Commercial   Real Estate		Commercial		Home  Equity		HELOC’s		Education  and Other  Consumer		Total
Three Months Ended June 30, 2013
Allowance for Loan Losses:
Balance at beginning of period	$	687,133	$	779,608	$	-	$	12,851	$	9,314	$	10,527	$	1,499,433
Provision (credit) for loan losses		45,228		(109,216)		-		(3,104)		98,814		(2,722)		25,000
Charge-offs		-		(359,994)		-		-		(100,958)		-		(460,952)
Recoveries		2,328		-		-		-		-		-		2,328
Net (charge-offs) recoveries		2,328		(359,994)		-		-		(100,958)		-		(458,624)
Balance at end of period	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Three Months Ended June 30, 2012
Allowance for Loan Losses:
Balance at beginning of period	$	597,479	$	499,576	$	-	$	19,640	$	8,494	$	20,763	$	1,145,952
Provision (credit) for loan losses		122,375		(21,483)		-		(833)		1,284		(828)		100,515
Charge-offs		-		-		-		-		-		-		-
Recoveries		528		-		-		-		-		-		528
Net (charge-offs) recoveries		528		-		-		-		-		-		528
Balance at end of period	$	720,382	$	478,093	$	-	$	18,807	$	9,778	$	19,935	$	1,246,995
Six Months Ended June 30, 2013
Allowance for Loan Losses:
Balance at beginning of period	$	677,877	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,507,770
Provision (credit) for loan losses		151,638		(101,034)		-		(4,178)		70,736		(3,345)		113,817
Charge-offs		(97,154)		(359,994)		-		-		(100,958)		-		(558,106)
Recoveries		2,328		-		-		-		-		-		2,328
Net (charge-offs) recoveries		(94,826)		(359,994)		-		-		(100,958)		-		(555,778)
Balance at end of period	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Six Months Ended June 30, 2012
Allowance for Loan Losses:
Balance at beginning of period	$	611,280	$	618,233	$	-	$	19,304	$	8,835	$	21,356	$	1,279,008
Provision (credit) for loan losses		331,689		(140,140)		-		(497)		943		(1,421)		190,574
Charge-offs		(223,418)		-		-		-		-		-		(223,418)
Recoveries		831		-		-		-		-		-		831
Net (charge-offs) recoveries		(222,587)		-		-		-		-		-		(222,587)
Balance at end of period	$	720,382	$	478,093	$	-	$	18,807	$	9,778	$	19,935	$	1,246,995

The following tables present the allowance for credit losses and recorded investments in loans by category:

	At June 30, 2013
	One-to- Four Family Real Estate		Multi-family  and Commercial Real Estate		Commercial		Home Equity		HELOCs		Education and Other Consumer		Total
Allowance for loan losses:
Ending balance	$	734,689	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,065,809
Ending balance: individually    evaluated for impairment	$	29,288	$	-	$	-	$	-	$	-	$	-	$	29,288
Ending balance: collectively    evaluated for impairment	$	705,401	$	310,398	$	-	$	9,747	$	3,170	$	7,805	$	1,036,521
Ending balance: loans acquired    with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans:
Ending balance	$	145,205,579	$	15,310,312	$	113,014	$	2,499,053	$	812,821	$	2,857,319	$	166,798,098
Ending balance: individually    evaluated for impairment	$	2,448,881	$	614,308	$	-	$	10,579	$	-	$	-	$	3,073,768
Ending balance: collectively    evaluated for impairment	$	132,128,991	$	7,235,847	$	-	$	2,488,474	$	812,821	$	1,959,730	$	144,625,863
Ending balance: loans acquired    with deteriorated credit quality	$	10,627,707	$	7,460,157	$	113,014	$	-	$	-	$	897,589	$	19,098,467

	At December 31, 2012
	One-to- Four Family Real Estate		Multi-family  and Commercial Real Estate		Commercial		Home Equity		HELOCs		Education and Other Consumer		Total
Allowance for loan losses:
Ending balance	$	677,877	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,507,770
Ending balance: individually    evaluated for impairment	$	39,640	$	-	$	-	$	-	$	-	$	-	$	39,640
Ending balance: collectively    evaluated for impairment	$	638,237	$	771,426	$	-	$	13,925	$	33,392	$	11,150	$	1,468,130
Ending balance: loans acquired    with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans:
Ending balance	$	113,445,238	$	18,079,171	$	29,456	$	2,489,433	$	1,852,532	$	3,129,207	$	139,025,037
Ending balance: individually    evaluated for impairment	$	1,628,519	$	1,125,968	$	-	$	-	$	-	$	-	$	2,754,487
Ending balance: collectively    evaluated for impairment	$	100,164,151	$	7,375,265	$	-	$	2,489,433	$	1,852,532	$	2,230,141	$	114,111,522
Ending balance: loans acquired    with deteriorated credit quality	$	11,652,568	$	9,577,938	$	29,456	$	-	$	-	$	899,066	$	22,159,028

Credit Quality Information

                The following tables represent credit exposures by internally assigned grades at June 30, 2013 and December 31, 2012.  The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all.  The Company’s internal credit risk grading system is based on experiences with similarly graded loans.

                The Company’s internally assigned grades are as follows:

                Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.  There are six sub-grades within the pass category to further distinguish the loan.

                Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

                Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

                Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset.  In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

                Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

                The following table presents classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful, and Loss within the internal risk rating system as of June 30, 2013 and December 31, 2012. 

	June 30,				December 31,
	2013				2012
	Multi-Family				Multi-Family
	and Commercial				and Commercial
	Real Estate		Commercial		Real Estate		Commercial
Pass	$	11,004,155	$	113,014	$	11,955,576	$	29,456
Special Mention		2,580,431		-		2,645,840		-
Substandard		1,725,726		-		3,477,755		-
Doubtful		-		-		-		-
Loss		-		-		-		-
Total	$	15,310,312	$	113,014	$	18,079,171	$	29,456

Multi-family and commercial real estate and commercial loans are categorized by risk classification as of June 30, 2013 and December 31, 2012.  For one –to-four family real estate, home equity, HELOCs, and education and other loans, the Company evaluates credit quality based on the performance of the individual credits.  Payment activity is reviewed by management on a monthly basis to determine how loans are performing.  Loans are considered to be nonperforming when they become 90 days past due.

The following table presents recorded investment in the loan classes based on payment activity as of June 30, 2013 and December 31, 2012:

	At June 30, 2013
	One-to-  Four Family  Real Estate		Home Equity		HELOCs		Education  and Other  Consumer		Non-covered  Consumer Loans  Purchased
Performing	$	142,567,290	$	2,488,474	$	812,821	$	1,812,085	$	897,589
Nonperforming		2,638,289		10,579		-		147,645		-
Total	$	145,205,579	$	2,499,053	$	812,821	$	1,959,730	$	897,589

	At December 31, 2012
	One-to-  Four Family  Real Estate		Home  Equity		HELOCs		Education  and Other  Consumer		Non-covered  Consumer Loans  Purchased
Performing	$	111,617,358	$	2,479,104	$	1,852,532	$	2,077,866	$	798,905
Nonperforming		1,827,880		10,329		-		152,275		100,161
Total	$	113,445,238	$	2,489,433	$	1,852,532	$	2,230,141	$	899,066

Following is a table which includes an aging analysis of the recorded investment of past due loans:

	At June 30, 2013
	30-59 Days  Past Due		60-89 Days  Past Due		90 Days   Or Greater		Total Past  Due		Current		Total  Loans  Receivable		Recorded  Investment  >  90 Days and  Accruing
One-to-four family    real estate	$	238,568	$	-	$	2,638,289	$	2,876,857	$	142,328,722	$	145,205,579	$	-
Multi-family and														-
commercial real estate		-		-		781,956		781,956		14,528,356		15,310,312		-
Commercial		-		68,845		-		68,845		44,169		113,014		-
Home equity		-		-		10,579		10,579		2,488,474		2,499,053		-
HELOC’s		-		-		-		-		812,821		812,821		-
Education and other														-
consumer		39,848		29,460		147,645		216,953		1,742,777		1,959,730		-
Non-covered consumer														-
loans purchased		8,976		-		-		8,976		888,613		897,589		-
Total	$	287,392	$	98,305	$	3,578,469	$	3,964,166	$	162,833,932	$	166,798,098	$	-

	At December 31, 2012
	30-59 Days  Past Due		60-89 Days  Past Due		90 Days   Or Greater		Total Past  Due		Current		Total Loans  Receivable		Recorded  Investment >  90 Days and  Accruing
One-to-four family
real estate	$	941,721	$	55,802	$	1,827,880	$	2,825,403	$	110,619,835	$	113,445,238	$	-
Multi-family and														-
commercial real estate		637,442		-		1,484,495		2,121,937		15,957,234		18,079,171		-
Commercial		-		-		-		-		29,456		29,456		-
Home equity		-		-		10,329		10,329		2,479,104		2,489,433		-
HELOC’s		-		-		-		-		1,852,532		1,852,532		-
Education and other														-
consumer		46,422		41,691		152,275		240,388		1,989,753		2,230,141		-
Non-covered consumer														-
loans purchased		-		-		100,161		100,161		798,905		899,066		-
Total	$	1,625,585	$	97,493	$	3,575,140	$	5,298,218	$	133,726,819	$	139,025,037	$	-

Nonaccrual Loans

                Loans are generally considered for nonaccrual status upon 90 days delinquency.  When a loan is placed in nonaccrual status, previously accrued but unpaid interest is deducted from interest income. 

                On the following table are the loans on nonaccrual status as of June 30, 2013 and December 31, 2012.  The balances are presented by class of loans.

	June 30,  2013		December 31,  2012
One-to-four family mortgage	$	2,638,289	$	1,827,880
Multi-family and commercial real estate		781,956		1,484,495
Home Equity		10,579		10,329
Education and other consumer		147,645		152,275
Non-covered consumer loans purchased		-		100,161
Total	$	3,578,469	$	3,575,140

                Interest income on loans would have been increased by approximately $108,201 during the six month period ended June 30, 2013 and $121,717 during the period ending December 31, 2012, if these loans had performed in accordance with their original terms.  Management evaluates commercial real estate loans which are 90 days or more past due for impairment.

Impaired Loans

                The following table presents the recorded investment and unpaid principal balances for impaired loans and related allowance, if applicable.  Also, presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	June 30, 2013
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Witn no related allowance recorded:
One -to-four family real estate	$	1,489,289	$	1,901,548	$	-	$	794,846	$	690
Multi-family and commercial real estate		894,127		996,037		-		895,078		18,650
Home equity		10,579		10,579		-		1,763		-
With an allowance recorded:
One -to-four family real estate	$	957,499	$	957,499	$	29,288	$	853,136	$	17,512
Multi-family and commercial real estate		-		-		-		-		-
Home equity		-		-		-		-		-
Total:
One -to-four family real estate	$	2,446,788	$	2,859,047	$	29,288	$	1,647,982	$	18,202
Multi-family and commercial real estate		894,127		996,037		-		895,078		18,650
Home equity		10,579		10,579		-		1,763		-

	December 31, 2012
	Recorded  Investment		Unpaid  Principal  Balance		Related  Allowance		Average  Recorded  Investment		Interest  Income  Recognized
With no related allowance recorded:
One-to-four family real estate	$	701,324	$	837,806	$	-	$	489,509	$	116
Multi-family and commercial real estate		1,405,787		1,867,431		-		1,107,636		56,790
With an allowance recorded:
One-to-four family real estate	$	927,195	$	936,739	$	39,640	$	944,346	$	28,304
Multi-family and commercial real estate		-		-		-		-		-
Total:
One-to-four family real estate	$	1,628,519	$	1,774,545	$	39,640	$	1,433,855	$	28,420
Multi-family and commercial real estate		1,405,787		1,867,431		-		1,107,636		56,790

Loan Modifications and Troubled Debt Restructurings

                A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrowers’ financial condition that it would not otherwise consider.  Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk.

                Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2013 and 2012, respectively were as follows:

(In Thousands, Except Number of Contracts)	Three Months Ended June 30,
	2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding  Recorded Investment		Post- Modification  Outstanding Recorded Investment
Troubled debt restructurings
One-to-four family mortgage	1	$	160,992	$	160,992	-	$	-	$	-
Total	1	$	160,992	$	160,992	-	$	-	$	-

(In Thousands, Except Number of Contracts)	Six Months Ended June 30,
	2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Troubled debt restructurings
One-to-four family mortgage	2	$	283,456	$	218,292	-	$	-	$	-
Total	2	$	283,456	$	218,292	-	$	-	$	-

                There were no TDRs modified within the past year that subsequently defaulted during the three or six month periods ended June 30, 2013 and 2012.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
OPERATING ACTIVITIES
Net (loss) income	$ (18,878)	$ 40,318
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Provision for loan losses	113,817	190,574
Depreciation, amortization, and accretion	803,530	199,885
Proceeds from sale of loans	71,797,153	10,957,692
Net gain on sale of loans	(2,581,243)	(340,978)
Loans originated for sale	(68,489,016)	(12,350,240)
Gain on the sale of other real estate owned	(7,553)	(22,562)
Earnings on bank-owned life insurance	(14,179)	(20,915)
Deferred federal income taxes	(13,260)	(42,802)
Decrease in accrued interest receivable	27,249	86,965
Increase (decrease) in accrued interest payable	9,935	(12,768)
Increase in accrued payroll and commissions	267,294	0
Compensation expense for stock options, ESOP and restricted stock	84,555	128,841
Other, net	(13,111)	(342,827)
Net cash provided by (used for) operating activities	1,966,293	(1,528,817)
INVESTING ACTIVITIES
Proceeds from principal repayments and maturities	1,291,574	2,745,831
Purchases	0	(1,805,800)
Investment securities held to maturity:
Proceeds from principal repayments and maturities	8,093,106	5,184,255
Purchases	(6,062,361)	(4,490,347)
(Increase) decrease in loans receivable, net	(31,734,121)	14,347,144
Decrease in covered loans	3,082,243	2,805,130
Purchases of Federal Home Loan Bank stock	(772,000)	0
Redemptions of Federal Home Loan Bank stock	290,400	188,900
Proceeds from the sale of other real estate owned	234,351	349,947
Payments received from FDIC under loss share agreement	590,117	364,420
Purchase of premises and equipment	(210,138)	(245,494)
Net cash (used for) provided by investing activities	(25,196,829)	19,443,986
FINANCING ACTIVITES
Decrease in deposits, net	(3,378,179)	(1,978,007)
Proceeds from Federal Home Loan Bank advances - long-term	16,000,000	0
Repayment of Federal Home Loan Bank advances - long-term	(3,500,000)	(5,292,796)
Increase (decrease) in advances by borrowers for taxes and insurance, net	369,706	(58,442)
Net cash provided by (used for) financing activities	9,491,527	(7,329,245)
Increase (decrease) in cash and cash equivalents	(13,739,009)	10,585,924
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	25,061,666	17,416,198
CASH AND CASH EQUIVALENTS AT END OF PERIOD	11,322,657	28,002,122
SUPPLEMENTAL CASH FLOW DISCLOSURES
Interest	1,152,707	1,430,158
Income taxes	300,000	200,000
Noncash items:
Loans transferred to other real estate owned	$ 208,759	$ 269,263

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Life Insurance and Retirement Plan (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Components of net periodic benefit cost:
Service cost	$ 23,417	$ 36,109	$ 48,389	$ 73,604
Interest cost	27,424	25,336	54,848	50,673
Net periodic benefit cost	$ 50,841	$ 61,445	$ 103,237	$ 124,277

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Allowance for Loan Losses (Details 5) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Schedule of Allowance for Loan Losses [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 3,351,494	$ 3,034,306
Impaired Financing Receivable, Related Allowance	29,288	39,640
One To Four Family Portfolio [Member]
Schedule of Allowance for Loan Losses [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,489,289	701,324
Impaired Financing Receivable, with Related Allowance, Recorded Investment	957,499	927,195
Impaired Financing Receivable, Recorded Investment	2,446,788	1,628,519
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,901,548	837,806
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	957,499	936,739
Impaired Financing Receivable, Unpaid Principal Balance	2,859,047	1,774,545
Impaired Financing Receivable, Related Allowance	29,288	39,640
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	794,846	489,509
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	853,136	944,346
Average recorded investment on impaired loans	1,647,982	1,433,855
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	690	116
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	17,512	28,304
Impaired Financing Receivable, Interest Income, Cash Basis Method	18,202	28,420
Multi Family and Commercial Real Estate Portfolio Segment [Member]
Schedule of Allowance for Loan Losses [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	894,127	1,405,787
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, Recorded Investment	894,127	1,405,787
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	996,037	1,867,431
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	0
Impaired Financing Receivable, Unpaid Principal Balance	996,037	1,867,431
Impaired Financing Receivable, Related Allowance	0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	895,078	1,107,636
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0	0
Average recorded investment on impaired loans	895,078	1,107,636
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	18,650	56,790
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0	0
Impaired Financing Receivable, Interest Income, Cash Basis Method	18,650	56,790
Home Equity [Member]
Schedule of Allowance for Loan Losses [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	10,579
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0
Impaired Financing Receivable, Recorded Investment	10,579
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	10,579
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0
Impaired Financing Receivable, Unpaid Principal Balance	10,579
Impaired Financing Receivable, Related Allowance	0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	1,763
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0
Average recorded investment on impaired loans	1,763
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0
Impaired Financing Receivable, Interest Income, Cash Basis Method	$ 0

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Investment Securities (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Available for Sale
Available-for-sale, Amortized Cost	$ 14,244,390	$ 15,521,424
Available-for-sale, Gross Unrealized Gains	509,932	683,774
Available-for-sale, Gross Unrealized Losses	(74,454)	(65,916)
Available-for-sale, Fair Value	14,679,868	16,139,282
Held to Maturity
Held to Maturity, Amortized Cost	56,444,740	58,605,490
Held-to-maturity, Unrecognized Holding Gain	1,465,241	3,010,192
Held-to-maturity, Unrecognized Holding Loss	(536,825)	0
Held-to-maturity, Fair Value	57,373,156	61,615,682
Mortgage Backed Securities, Fannie Mae [Member]
Available for Sale
Available-for-sale, Amortized Cost	2,591,655	3,361,216
Available-for-sale, Gross Unrealized Gains	169,516	264,117
Available-for-sale, Gross Unrealized Losses	0	0
Available-for-sale, Fair Value	2,761,171	3,625,333
Held to Maturity
Held to Maturity, Amortized Cost	41,563,536	44,893,424
Held-to-maturity, Unrecognized Holding Gain	1,227,104	2,510,301
Held-to-maturity, Unrecognized Holding Loss	(230,975)	0
Held-to-maturity, Fair Value	42,559,665	47,403,725
Mortgage Backed Securities, Freddie Mac [Member]
Available for Sale
Available-for-sale, Amortized Cost	98,305	128,634
Available-for-sale, Gross Unrealized Gains	5,862	9,158
Available-for-sale, Gross Unrealized Losses	0	0
Available-for-sale, Fair Value	104,167	137,792
Held to Maturity
Held to Maturity, Amortized Cost	14,881,204	13,712,066
Held-to-maturity, Unrecognized Holding Gain	238,137	499,891
Held-to-maturity, Unrecognized Holding Loss	(305,850)	0
Held-to-maturity, Fair Value	14,813,491	14,211,957
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Available for Sale
Available-for-sale, Amortized Cost	612,944	693,893
Available-for-sale, Gross Unrealized Gains	73,951	100,342
Available-for-sale, Gross Unrealized Losses	(2)	0
Available-for-sale, Fair Value	686,893	794,235
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available for Sale
Available-for-sale, Amortized Cost	1,757,664	2,166,686
Available-for-sale, Gross Unrealized Gains	50,510	69,368
Available-for-sale, Gross Unrealized Losses	(14,298)	(26,021)
Available-for-sale, Fair Value	1,793,876	2,210,033
Collateralized Mortgage Backed Securities [Member]
Available for Sale
Available-for-sale, Amortized Cost	5,060,568	6,350,429
Available-for-sale, Gross Unrealized Gains	299,839	442,985
Available-for-sale, Gross Unrealized Losses	(14,300)	(26,021)
Available-for-sale, Fair Value	5,346,107	6,767,393
Corporate Debt Securities [Member]
Available for Sale
Available-for-sale, Amortized Cost	9,183,822	9,170,995
Available-for-sale, Gross Unrealized Gains	210,093	240,789
Available-for-sale, Gross Unrealized Losses	(60,154)	(39,895)
Available-for-sale, Fair Value	$ 9,333,761	$ 9,371,889

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Fair Value Disclosure (Details 1) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Financial assets:
Cash and cash equivalents	$ 11,322,657	$ 25,061,666
Investment securities
Available for sale	14,679,868	16,139,282
Held to maturity	57,373,156	61,615,682
Loans Held For Sale	11,333,280	12,060,174
Net loans receivable	166,383,868	143,651,214
Accrued interest receivable	788,224	815,473
Federal Home Loan Bank stock	3,089,200	2,607,600
Bank-owned life insurance	4,254,543	4,240,364
FDIC idemnification asset	3,088,031	4,234,931
Financial liabilities:
Deposits	194,937,200	198,186,758
FHLB advances- long-term	39,094,400	27,392,100
Advances by borrowers for taxes and insurance	1,312,270	942,564
Accrued interest payable	74,695	64,760
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and cash equivalents	11,322,657	25,061,666
Investment securities
Available for sale	0	0
Held to maturity	0	0
Loans Held For Sale	11,333,280	12,060,174
Net loans receivable	0	0
Accrued interest receivable	788,224	815,473
Federal Home Loan Bank stock	3,089,200	2,607,600
Bank-owned life insurance	4,254,543	4,240,364
FDIC idemnification asset	0	0
Financial liabilities:
Deposits	89,284,064	91,434,681
FHLB advances- long-term	0	0
Advances by borrowers for taxes and insurance	1,312,270	942,564
Accrued interest payable	74,695	64,760
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Cash and cash equivalents	0	0
Investment securities
Available for sale	14,679,868	16,139,282
Held to maturity	57,373,156	61,615,682
Loans Held For Sale	0	0
Net loans receivable	0	0
Accrued interest receivable	0	0
Federal Home Loan Bank stock	0	0
Bank-owned life insurance	0	0
FDIC idemnification asset	0	0
Financial liabilities:
Deposits	0	0
FHLB advances- long-term	0	0
Advances by borrowers for taxes and insurance	0	0
Accrued interest payable	0	0
Fair Value, Inputs, Level 3 [Member]
Financial assets:
Cash and cash equivalents	0	0
Investment securities
Available for sale	0	0
Held to maturity	0	0
Loans Held For Sale	0	0
Net loans receivable	166,383,868	143,651,214
Accrued interest receivable	0	0
Federal Home Loan Bank stock	0	0
Bank-owned life insurance	0	0
FDIC idemnification asset	3,088,031	4,234,931
Financial liabilities:
Deposits	105,653,136	106,752,077
FHLB advances- long-term	39,094,400	27,392,100
Advances by borrowers for taxes and insurance	0	0
Accrued interest payable	$ 0	$ 0

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [ PolicyText Block]

Basis of Presentation

Polonia Bancorp, Inc. (“Polonia Bancorp” or the “Company”), a Maryland corporation, was incorporated in August 2011 and organized by Polonia MHC, Polonia Bancorp, and Polonia Bank (the “Bank”) to facilitate the second-step conversion of Polonia MHC from the mutual holding company structure to the stock holding company structure (the “Conversion”).  Upon consummation of the Conversion, which occurred on November 9, 2012, the Company became the holding company for the Bank and a 100 percent publicly owned stock holding company.  As a result of the Conversion, each share of Polonia Bancorp’s common stock owned by public shareholders was exchanged for 1.1136 shares of the Company’s common stock, with cash being paid in lieu of issuing fractional shares.  As a result of the Conversion, all share information has been revised to reflect the conversion rate.

                Concurrent with the Conversion, the Company sold a total of 2,025,078 shares of common stock in the subscription and community offerings at $8.00 per share, including 136,693 shares to the Polonia Bank Employee Stock Ownership Plan (“ESOP”).  The Company had common shares outstanding of 3,511,276 after the conversion, offering, and exchange.

               The Bank is a federally chartered savings bank located in Huntingdon Valley, Pennsylvania, whose principal sources of revenue derive from its investment securities portfolio and its portfolio of residential real estate, commercial real estate, and consumer loans, as well as a variety of deposit services offered to its customers through seven offices located in the Greater Philadelphia area.  The Bank is subject to regulation by the office of Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”).

               The consolidated financial statements include the accounts of the Bank and the Bank’s wholly owned subsidiaries, PBHMC (“PBMHC”), a Delaware investment company and Community Abstract Agency, LLC (“CAA”). CAA provides title insurance on loans secured by real estate.  All significant intercompany transactions have been eliminated in consolidation.  The investment in subsidiaries on the parent Company’s financial statements is carried at the parent Company’s equity in the underlying net assets.

                 On December 10, 2010, Polonia Bank assumed certain of the deposits and acquired certain assets of Earthstar Bank (“Earthstar”), a state charted bank from the FDIC as receiver for Earthstar.

                The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three and six month periods ended June 30, 2013 are not necessarily indicative of the results that may be expected for the full year.  The December 31, 2012 balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”).  For additional information, refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2012.

Use of Estimates, Policy [Policy Text Block]

                Use of Estimates in the Preparation of Financial Statements.  The accounting principles followed by the Company and the methods of applying these principles conform to GAAP and to general practice within the banking industry.  In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Consolidated Balance Sheet date and reported amounts of revenues and expenses for the period.  Actual results could differ significantly from those estimates.  Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, and the fair value of financial instruments.

New Accounting Pronouncements, Policy [Policy Text Block]

                Recent Accounting and Regulatory Pronouncements

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220):  Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts.  For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012.  For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013.  Early adoption is permitted.  The Company has provided the necessary disclosures in Note 11.

                In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405):  Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance under GAAP.  Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings.  GAAP does not include specific guidance on accounting for such obligations with joint and several liabilities, which has resulted in diversity in practice.  Some entities record the entire amount under the joint and several liability arrangements on the basis of the concept of a liability and the guidance that must be met to extinguish a liability.  Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities.  The amendments in the update are effective for fiscal years, and the interim periods with those years, beginning after December 15, 2013.  For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter.  This ASU is not expected to have a significant impact on the Company’s financial statements.

Reclassification, Policy [Policy Text Block]

                Reclassification of Comparative Amounts

Certain items previously reported have been reclassified to conform to the current year’s reporting format.  Such reclassifications did not affect consolidated net income (loss) or consolidated stockholders’ equity.

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Life Insurance and Retirement Plan

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

8. Life Insurance and Retirement Plan

The Bank has a Supplemental Life Insurance Plan (the “Plan”) for three officers of the Bank. The Plan requires the Bank to make annual payments to the beneficiaries upon their death. In connection with the Plan, the Bank funded life insurance policies with an original investment of $3,085,000 on the lives of those officers. These life insurance policies currently have a death benefit of $11,975,329. The cash surrender value of these policies totaled $4,254,543 and $4,240,364 at June 30, 2013 and December 31, 2012, respectively. The Plan provides that death benefits totaling $6.0 million at June 30, 2013, will be paid to their beneficiaries in the event the officers should die.

Additionally, the Bank has a Supplemental Retirement Plan (“SRP”) for the Bank’s current and former presidents as well as two senior officers of the Bank. At June 30, 2013 and December 31, 2012, $1,794,777 and $1,755,140 had been accrued under these SRPs, respectively, and this liability and the related deferred tax assets of $610,224 and $596,748 for the respective periods, are recognized in the financial statements. The deferred compensation for the current and former president is to be paid for the remainder of their lives commencing with the first year following the termination of employment after completion of required service. The current president's payment is based on 60 percent of his final full year annual gross taxable compensation adjusted annually for the change in the consumer price index or 4 percent, whichever is higher. The former president’s payment is based on 60 percent of his final full year annual gross taxable compensation adjusted annually for the change in the consumer price index. The deferred compensation for the two senior officers is to be paid at the rate of $50,000 per year for twenty years commencing five years after retirement or age 65, whichever comes first, following the termination of employment. The Company records periodic accruals for the cost of providing such benefits by charges to income. The amount accrued was approximately $50,841 and $61,445 for the three months ended June 30, 2013 and 2012 and $103,237 and $124,277 for the six months ended June 30, 2013 and 2012, respectively.

The following table illustrates the components of the net periodic benefit cost for the supplemental retirement plan:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Components of net periodic benefit cost:
Service cost	$	23,417	$	36,109	$	48,389	$	73,604
Interest cost		27,424		25,336		54,848		50,673
Net periodic benefit cost	$	50,841	$	61,445	$	103,237	$	124,277

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Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans receivable consist of the following:

	June 30,		December 31,
	2013		2012
Mortgage Loans:
One-to-four family	$	134,577,872	$	101,792,670
Multi-family and commercial real estate		7,850,155		8,501,233
		142,428,027		110,293,903
Home equity loans		2,499,053		2,489,433
Home equity lines of credit (“HELOCs”)		812,821		1,852,532
Education loans		1,959,389		2,228,512
Other consumer loans		341		1,629
Non-covered consumer loans purchased		897,589		899,066
Covered loans		18,200,878		21,259,962
		166,798,098		139,025,037
Less:
Net deferred loan fees		52,550		222,704
Allowance for loan losses		1,065,809		1,507,770
Total	$	165,679,739	$	137,294,563

Components Of Covered Loans [Table Text Block]

The components of covered loans by portfolio class as of June 30, 2013 and December 31, 2012 were as follows:

	June 30,		December 31,
	2013		2012
Mortgage loans:
One-to-four family	$	10,627,707	$	11,652,568
Multi-family and commercial real estate		7,460,157		9,577,938
		18,087,864		21,230,506
Commercial		113,014		29,456
Total Loans	$	18,200,878	$	21,259,962

Schedule Of Outstanding Balance, Including Interest, and Carrying Values Of Loans Acquired [Table Text Block]

The outstanding balance, including interest, and carrying values of loans acquired were as follows:

	June 30, 2013				December 31, 2012
			Acquired Loans				Acquired Loans
	Acquired Loans		Without Specific		Acquired Loans		Without Specific
	With Specific		Evidence of		With Specific		Evidence of
	Evidence of		Deterioration in		Evidence of		Deterioration in
	Deterioration in		Credit Quality		Deterioration in		Credit Quality
	Credit Quality		(ASC 310-30		Credit Quality		(ASC 310-30
	(ASC 310-30)		Analogized)		(ASC 310-30)		Analogized)
Outstanding balance	$	1,300,860	$	30,152,302	$	2,505,032	$	35,002,943
Carrying amount, net of allowance	$	781,066	$	18,302,349	$	982,086	$	21,176,942

Summary Of Changes In The Accretable Yield For Acquired Loans [Table Text Block]

Changes in the accretable yield for acquired loans were as follows for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
	Acquired Loans		Acquired Loans
	Without Specific		Without Specific
	Evidence of		Evidence of
	Deterioration in		Deterioration in
	Credit Quality		Credit Quality
	(ASC 310-30		(ASC 310-30
	Analogized)		Analogized)
Balance at beginning of period	$	9,927,911	$	11,044,664
Reclassifications and other		(368,683)		(1,122,827)
Accretion		(334,753)		(697,362)
Balance at end of period	$	9,224,475	$	9,224,475

	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
			Acquired Loans				Acquired Loans
	Acquired Loans		Without Specific		Acquired Loans		Without Specific
	With Specific		Evidence of		With Specific		Evidence of
	Evidence of		Deterioration in		Evidence of		Deterioration in
	Deterioration in		Credit Quality		Deterioration in		Credit Quality
	Credit Quality		(ASC 310-30		Credit Quality		(ASC 310-30
	(ASC 310-30)		Analogized)		(ASC 310-30)		Analogized)
Balance at beginning of period	$	36,434	$	8,165,501	$	48,637	$	8,680,970
Reclassifications and other		-		4,782,910		-		4,645,794
Accretion		(36,434)		(360,243)		(48,637)		(738,596)
Balance at end of period	$	-	$	12,588,168	$	-	$	12,588,168

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

The following table set forth the composition of the weighted average shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net Income (Loss):	$	46,903	$	(35,496)	$	(18,878)	$	40,318
Weighted average number of shares issued		3,657,607		3,306,250		3,657,607		3,306,250
Less weighted average number of treasury stock shares		-		(151,136)		-		(151,136)
Less weighted average number of unearned ESOP shares		(212,158)		(82,829)		(214,414)		(83,909)
Less weighted average number of nonvested restricted     stock awards		-		(4,172)		-		(4,651)
Weighted average shares outstanding basic		3,445,449		3,068,113		3,443,193		3,066,554
Weighted average shares outstanding diluted		3,445,449		3,068,113		3,443,193		3,066,554
Earnings per share:
Basic	$	0.01	$	(0.01)	$	(0.01)	$	0.01
Diluted		0.01		(0.01)		(0.01)		0.01

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Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 14, 2013
Document Information [Line Items]
Entity Registrant Name	Polonia Bancorp Inc
Entity Central Index Key	0001528610
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	PBCP
Entity Common Stock, Shares Outstanding		3,511,276
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Trading Securities (and Certain Trading Assets) [Table Text Block]

The amortized cost and fair value of investment securities available for sale are summarized as follows:

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
Mortgage-backed securities:
Fannie Mae	$	2,591,655	$	169,516	$	-	$	2,761,171
Freddie Mac		98,305		5,862		-		104,167
Government National Mortgage Association		612,944		73,951		(2)		686,893
Collateralized mortgage obligations- government sponsored entities		1,757,664		50,510		(14,298)		1,793,876
Total mortgage-backed securities		5,060,568		299,839		(14,300)		5,346,107
Corporate securities		9,183,822		210,093		(60,154)		9,333,761
Total	$	14,244,390	$	509,932	$	(74,454)	$	14,679,868
Held to Maturity
Mortgage-backed securities:
Fannie Mae	$	41,563,536	$	1,227,104	$	(230,975)	$	42,559,665
Freddie Mac		14,881,204		238,137		(305,850)		14,813,491
Total mortgage-backed securities	$	56,444,740	$	1,465,241	$	(536,825)	$	57,373,156

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
Mortgage-backed securities:
Fannie Mae	$	3,361,216	$	264,117	$	-	$	3,625,333
Freddie Mac		128,634		9,158		-		137,792
Government National Mortgage Association		693,893		100,342		-		794,235
Collateralized mortgage obligations- government sponsored entities		2,166,686		69,368		(26,021)		2,210,033
Total mortgage-backed securities		6,350,429		442,985		(26,021)		6,767,393
Corporate securities		9,170,995		240,789		(39,895)		9,371,889
Total	$	15,521,424	$	683,774	$	(65,916)	$	16,139,282
Held to Maturity
Mortgage-backed securities:
Fannie Mae	$	44,893,424	$	2,510,301	$	-	$	47,403,725
Freddie Mac		13,712,066		499,891		-		14,211,957
Total mortgage-backed securities	$	58,605,490	$	3,010,192	$	-	$	61,615,682

Schedule of Unrealized Loss on Investments [Table Text Block]

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous loss position.

	June 30, 2013
	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities:
Fannie Mae	$	9,814,310	$	(230,975)	$	-	$	-	$	9,814,310	$	(230,975)
Freddie Mac		8,337,248		(305,850)		-		-		8,337,248		(305,850)
Government National Mortgage      Association		466		(2)		-		-		466		(2)
Collateralized mortgage obligations- government sponsored entities		170,098		(4,497)		341,904		(9,801)		512,002		(14,298)
Total mortgage-backed securities		18,322,122		(541,324)		341,904		(9,801)		18,664,026		(551,125)
Corporate securities		2,830,029		(49,354)		489,200		(10,800)		3,319,229		(60,154)
Total	$	21,152,151	$	(590,678)	$	831,104	$	(20,601)	$	21,983,255	$	(611,279)

	December 31, 2012
	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Mortgage-backed securities:
Collateralized mortgage obligations- government sponsored entities	$	445,009	$	(19,122)	$	248,884	$	(6,899)	$	693,893	$	(26,021)
Total mortgage-backed securities		445,009		(19,122)		248,884		(6,899)		693,893		(26,021)
Corporate securities		980,450		(4,065)		964,170		(35,830)		1,944,620		(39,895)
Total	$	1,425,459	$	(23,187)	$	1,213,054	$	(42,729)	$	2,638,513	$	(65,916)

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost and fair value of debt securities at June 30, 2013, by contractual maturity, are shown below.  Mortgage-backed securities provide for periodic, general monthly, payments of principal and interest and have contractual maturities ranging from 1 to 32 years.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	1,974,113	$	2,019,727	$	-	$	-
Due after one year through five years		5,754,317		5,878,275		-		-
Due after five years through ten years		3,405,409		3,504,129		11,665,672		12,061,243
Due after ten years		3,110,551		3,277,737		44,779,068		45,311,913
Total	$	14,244,390	$	14,679,868	$	56,444,740	$	57,373,156

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Accumulated Other Comprehensive Income (Details) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012		Jun. 30, 2013		Jun. 30, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	$ 420,167	[1]	$ 359,639	[1]	$ 407,786	[1]	$ 303,657	[1]
Other comprehensive income before reclassifications	(132,751)	[1]	(26,178)	[1]	(120,370)	[1]	29,804	[1]
Period change	(132,751)	[1]	(26,178)	[1]	(120,370)	[1]	29,804	[1]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	287,416	[1]	333,461	[1]	287,416	[1]	333,461	[1]
Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	420,167	[1]	359,639	[1]	407,786	[1]	303,657	[1]
Other comprehensive income before reclassifications	(132,751)	[1]	(26,178)	[1]	(120,370)	[1]	29,804	[1]
Period change	(132,751)	[1]	(26,178)	[1]	(120,370)	[1]	29,804	[1]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	$ 287,416	[1]	$ 333,461	[1]	$ 287,416	[1]	$ 333,461	[1]

[1] All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal income tax rate at 34%.

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Fair Value Disclosure (Details Textual) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Fair Value Disclosure [Line Items]
Percentage Realized Losses Reimbursed	80.00%
Fdic Indemnification Asset	$ 3,088,031	$ 4,234,931	$ 5,218,506