LOANS AND SERVICING (Tables)

9 Months Ended

Sep. 30, 2016

Loans and Servicing

Summary of loans

	At				At
	September 30,				December 31,
	2016				2015
	Amount		Percent		Amount		Percent
	(In thousands)
Residential loans:
One- to four-family	$	89,206	32.57	%	$	86,472	33.78	%
Home equity loans and lines of credit		15,934	5.82			18,263	7.13
Total residential mortgage loans		105,140	38.39			104,735	40.91
Commercial loans:
One- to four-family investment property		13,708	5.01			15,255	5.96
Multi-family real estate		28,026	10.23			30,709	12.00
Commercial real estate		81,691	29.83			67,152	26.23
Commercial business		20,319	7.42			17,548	6.85
Total commercial loans		143,744	52.49			130,664	51.04
Construction loans:
One- to four-family		13,459	4.91			12,967	5.07
Multi-family		4,696	1.72			1,486	0.58
Non-residential		6,628	2.42			5,925	2.31
Total construction loans		24,783	9.05			20,378	7.96
Consumer		203	0.07			237	0.09
Total loans		273,870	100.00	%		256,014	100.00	%
Other items:
Net deferred loan costs		479				377
Allowance for loan losses		(2,551)				(2,408)
Total loans, net	$	271,798			$	253,983

Schedule of information pertaining to the allowance for loan losses

	Residential				Commercial								Construction
					One‑ to four‑
			Home equity		family
	One‑ to four‑		loans and		investment		Multi‑family		Commercial		Commercial		One‑ to four‑				Non-
	family		lines of credit		property		real estate		real estate		business		family		Multi‑family		residential		Consumer		Unallocated		Total
	(In thousands)
Allowance for loan losses
Nine Months Ended September 30, 2016
Beginning Balance	$	197	$	276	$	90	$	233	$	1,021	$	305	$	113	$	12	$	91	$	2	$	68	$	2,408
Charge-offs		—		—		—		—		—		—		—		—		—		(2)		—		(2)
Recoveries		—		1		—		—		—		—		—		—		—		3		—		4
(Benefit) provision		(28)		(38)		(8)		(20)		213		52		1		27		11		(1)		(68)		141
Ending Balance	$	169	$	239	$	82	$	213	$	1,234	$	357	$	114	$	39	$	102	$	2	$	—	$	2,551
Nine Months Ended September 30, 2015
Beginning Balance	$	273	$	249	$	46	$	113	$	943	$	311	$	117	$	97	$	77	$	3	$	—	$	2,229
Charge-offs		—		—		—		—		—		(22)		—		—		—		(3)		—		(25)
Recoveries		—		1		—		—		—		—		—		—		—		3		—		4
(Benefit) provision		(72)		30		27		62		65		39		12		(31)		7		(1)		—		138
Ending Balance	$	201	$	280	$	73	$	175	$	1,008	$	328	$	129	$	66	$	84	$	2	$	—	$	2,346
At September 30, 2016
Allowance for loan losses
Individually evaluated for impairment	$	—	$	—	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	7
Collectively evaluated for impairment		169		239		75		213		1,234		357		114		39		102		2		—		2,544
	$	169	$	239	$	82	$	213	$	1,234	$	357	$	114	$	39	$	102	$	2	$	—	$	2,551
Loans
Individually evaluated for impairment	$	1,554	$	102	$	86	$	—	$	282	$	—	$	—	$	—	$	—	$	—	$	—	$	2,024
Collectively evaluated for impairment		87,652		15,832		13,622		28,026		81,409		20,319		13,459		4,696		6,628		203		—		271,846
	$	89,206	$	15,934	$	13,708	$	28,026	$	81,691	$	20,319	$	13,459	$	4,696	$	6,628	$	203	$	—	$	273,870
At December 31, 2015
Allowance for loan losses
Individually evaluated for impairment	$	7	$	—	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	14
Collectively evaluated for impairment		190		276		83		233		1,021		305		113		12		91		2		68		2,394
	$	197	$	276	$	90	$	233	$	1,021	$	305	$	113	$	12	$	91	$	2	$	68	$	2,408
Loans
Individually evaluated for impairment	$	1,567	$	104	$	88	$	—	$	287	$	—	$	—	$	—	$	—	$	—	$	—	$	2,046
Collectively evaluated for impairment		84,905		18,159		15,167		30,709		66,865		17,548		12,967		1,486		5,925		237		—		253,968
	$	86,472	$	18,263	$	15,255	$	30,709	$	67,152	$	17,548	$	12,967	$	1,486	$	5,925	$	237	$	—	$	256,014

Summary of past-due and non-accrual loans

	Loans delinquent for:												90 days
					90 days		Total		Total		Total		or more		Non-accrual
	30 - 59 Days		60 - 89 Days		or more		Past Due		Current		Loans		and accruing		Loans
	(In thousands)
At September 30, 2016
Residential loans:
One- to four-family	$	—	$	—	$	766	$	766	$	88,440	$	89,206	$	—	$	766
Home equity loans and lines of credit		314		—		41		355		15,579		15,934		—		198
Commercial loans:
One- to four-family investment property		—		—		—		—		13,708		13,708		—		—
Multi-family real estate		—		—		—		—		28,026		28,026		—		—
Commercial real estate		—		—		—		—		81,691		81,691		—		—
Commercial business		—		—		—		—		20,319		20,319		—		—
Construction loans:
One- to four-family		—		—		—		—		13,459		13,459		—		—
Multi-family		—		—		—		—		4,696		4,696		—		—
Non-residential		—		—		—		—		6,628		6,628		—		—
Consumer		—		—		—		—		203		203		—		—
Total	$	314	$	—	$	807	$	1,121	$	272,749	$	273,870	$	—	$	964

	Loans delinquent for:												90 days
					90 days		Total		Total		Total		or more		Non-accrual
	30 - 59 Days		60 - 89 Days		or more		Past Due		Current		Loans		and accruing		Loans
	(In thousands)
At December 31, 2015
Residential loans:
One- to four-family	$	—	$	—	$	649	$	649	$	85,823	$	86,472	$	—	$	776
Home equity loans and lines of credit		273		—		—		273		17,990		18,263		—		—
Commercial loans:
One- to four-family investment property		—		—		—		—		15,255		15,255		—		—
Multi-family real estate		—		—		—		—		30,709		30,709		—		—
Commercial real estate		—		—		—		—		67,152		67,152		—		—
Commercial business		12		—		—		12		17,536		17,548		—		—
Construction loans:
One- to four-family		—		—		—		—		12,967		12,967		—		—
Multi-family		—		—		—		—		1,486		1,486		—		—
Non-residential		—		—		—		—		5,925		5,925		—		—
Consumer		—		4		—		4		233		237		—		—
Total	$	285	$	4	$	649	$	938	$	255,076	$	256,014	$	—	$	776

Schedule of analysis of impaired loans

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
At September 30, 2016
Impaired loans without a valuation allowance
Residential loans:
One- to four-family	$	1,554	$	1,554	$	—	$	1,564	$	31
Home equity loans and lines of credit		102		102		—		103		3
Commercial loans:
One- to four-family investment property		—		—		—		—		—
Multi-family real estate		—		—		—		—		—
Commercial real estate		282		282		—		285		13
Commercial business		—		—		—		—		—
Construction loans:
One- to four-family		—		—		—		—		—
Multi-family		—		—		—		—		—
Non-residential		—		—		—		—		—
Consumer		—		—		—		—		—
Total impaired with no related allowance	$	1,938	$	1,938	$	—	$	1,952	$	47
Impaired loans with a valuation allowance
Residential loans:
One- to four-family	$	—	$	—	$	—	$	—	$	—
Home equity loans and lines of credit		—		—		—		—		—
Commercial loans:
One- to four-family investment property		86		86		7		87		3
Multi-family real estate		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Commercial business		—		—		—		—		—
Construction loans:
One- to four-family		—		—		—		—		—
Multi-family		—		—		—		—		—
Non-residential		—		—		—		—		—
Consumer		—		—		—		—		—
Total with an allowance recorded	$	86	$	86	$	7	$	87	$	3

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
At December 31, 2015
Impaired loans without a valuation allowance
Residential loans:
One- to four-family	$	1,255	$	1,255	$	—	$	236	$	12
Home equity loans and lines of credit		104		104		—		51		2
Commercial loans:
One- to four-family investment property		—		—		—		—		—
Multi-family real estate		—		—		—		—		—
Commercial real estate		287		287		—		292		17
Commercial business		—		—		—		74		9
Construction loans:
One- to four-family		—		—		—		—		—
Multi-family		—		—		—		—		—
Non-residential		—		—		—		—		—
Consumer		—		—		—		—		—
Total impaired with no related allowance	$	1,646	$	1,646	$	—	$	653	$	40
Impaired loans with a valuation allowance
Residential loans:
One- to four-family	$	312	$	312	$	7	$	314	$	16
Home equity loans and lines of credit		—		—		—		—		—
Commercial loans:
One- to four-family investment property		88		88		7		55		4
Multi-family real estate		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Commercial business		—		—		—		—		—
Construction loans:
One- to four-family		—		—		—		—		—
Multi-family		—		—		—		—		—
Non-residential		—		—		—		—		—
Consumer		—		—		—		—		—
Total with an allowance recorded	$	400	$	400	$	14	$	369	$	20

Schedule of loans by risk rating

	Residential				Commercial								Construction
					One‑ to four‑
			Home equity		family
	One‑ to four‑		loans and lines		investment		Multi‑family		Commercial		Commercial		One‑ to four‑				Non-
	family		of credit		property		real estate		real estate		business		family		Multi‑family		residential		Consumer		Total
	(In thousands)
At September 30, 2016
Classification:
Not formally rated	$	87,526	$	15,656	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	203	$	103,385
Pass		—		—		13,622		28,026		80,975		20,170		13,459		4,696		6,628		—		167,576
Special mention		—		—		—		—		—		—		—		—		—		—		—
Substandard		1,680		278		86		—		716		149		—		—		—		—		2,909
Doubtful		—		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—		—
Total loans	$	89,206	$	15,934	$	13,708	$	28,026	$	81,691	$	20,319	$	13,459	$	4,696	$	6,628	$	203	$	273,870
At December 31, 2015
Classification:
Not formally rated	$	84,778	$	18,183	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	237	$	103,198
Pass		—		—		15,167		30,709		66,420		17,454		12,967		1,486		5,925		—		150,128
Special mention		—		—		—		—		732		94		—		—		—		—		826
Substandard		1,694		80		88		—		—		—		—		—		—		—		1,862
Doubtful		—		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—		—
Total loans	$	86,472	$	18,263	$	15,255	$	30,709	$	67,152	$	17,548	$	12,967	$	1,486	$	5,925	$	237	$	256,014

Schedule of mortgage servicing rights capitalized and amortized

	Nine Months Ended
	September 30,
	2016		2015
	(In thousands)
Mortgage servicing rights:
Balance at beginning of period	$	523	$	840
Additions		—		10
Amortization		(213)		(255)
Balance at end of period		310		595
Valuation allowance:
Balance at beginning of period		4		6
Additions		13		13
Reductions		(8)		(15)
Balance at end of period		9		4
Mortgage servicing rights, net	$	301	$	591
Fair value of mortgage servicing rights	$	691	$	1,140