UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
10-K/A

(Amendment
No. 1)



|[X] | ANNUAL
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ----------------------------------------------------------------------------------------



For
the Fiscal Year Ended December 31, 2018



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: 000-55898



SSB
Bancorp, Inc.

(Exact
Name of Registrant as Specified in its Charter)



|Maryland                                                                                                                                   |  | 82-2776224                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------
|(State or other jurisdiction of
                                                                             incorporation or organization |  | (I.R.S. Employer
                                                                             Identification Number)



|8700
    Perry Highway, Pittsburgh, Pennsylvania |  | 15237         
|------------------------------------------------ |  | --------------
|(Address
    of principal executive offices)     |  | (Zip
    code)



(412)
837-6955

(Registrant’s
telephone number, including area code)



Securities
registered pursuant to Section 12(b) of the Act: None



Securities
registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.01 per share



Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [  ]
No [X]



Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes [  ]
No [X]



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 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 every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the
registrant was required to submit such files). Yes [X] No [  ]



Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]



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



Large
accelerated filer [  ] Accelerated filer [  ] Non-accelerated filer [X] Smaller reporting company [X] Emerging
growth company [X]



If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]



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 June 30, 2018, the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant
was $7,465,872.



As
of May 17, 2019, there were 2,248,250 outstanding shares of the registrant’s common stock, of which 1,236,538 shares are
owned by SSB Bancorp, MHC.




















EXPLANATORY
NOTE



Effective
January 24, 2018, SSB Bancorp, Inc. (the “Company”) became the holding company for SSB Bank upon the reorganization
of SSB Bank into the mutual holding company structure. On March 29, 2019, the Company filed its Annual Report on Form 10-K for
the fiscal year ended December 31, 2018 (the “Original Filing”). The Original Filing includes the Company’s
audited consolidated financial statements at and for the year ended December 31, 2018 and the audit report rendered by the Company’s
independent registered public accounting firm thereon, and SSB Bank’s audited financial statements at and for the year ended
December 31, 2017. The sole purpose of this Form 10-K/A is to file the audit report rendered by the independent registered public
accounting firm that audited the financial statements of SSB Bank at and for the year ended December 31, 2017.













PART
II





|ITEM
    8. | Financial
    Statements and Supplementary Data
|----------- | -----------------------------------------------



SSB
Bancorp, Inc.



PITTSBURGH,
PENNSYLVANIA



CONSOLIDATED
FINANCIAL STATEMENTS



YEARS
ENDED DECEMBER 31, 2018 AND 2017











SSB
Bancorp, Inc.

AUDITED
CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER
31, 2018 AND 2017



|                                                                                                             | PageNumber
|------------------------------------------------------------------------------------------------------------ | ----------
|                                                                                                             |           
|Report
    of Independent Registered Public Accounting Firm                                                  | 2         
|                                                                                                             |           
|Report
of Independent Registered Public Accounting Firm                                                      | 3         
|                                                                                                             |           
|Financial
    Statements                                                                                     |           
|                                                                                                             |           
|Consolidated
    Balance Sheets as of December 31, 2018 and December 31, 2017                                | 4         
|                                                                                                             |           
|Consolidated
    Statements of Net Income for the Year Ended December 31, 2018 and 2017                      | 5         
|                                                                                                             |           
|Consolidated
    Statements of Comprehensive Income for the Year Ended December 31, 2018 and 2017            | 6         
|                                                                                                             |           
|Consolidated
    Statements of Changes in Stockholders’ Equity for the Year Ended December 31, 2018 and 2017 | 7         
|                                                                                                             |           
|Consolidated
    Statements of Cash Flows for the Year Ended December 31, 2018 and 2017                      | 8         
|                                                                                                             |           
|Notes
    to Consolidated Financial Statements                                                               | 9 - 41    



1







Report
of Independent Registered Public Accounting Firm



To
the Stockholders and the Board of Directors of SSB Bancorp, Inc.



Opinion
on the Financial Statements



We
have audited the accompanying consolidated balance sheet of SSB Bancorp, Inc. and subsidiary (the Company) as of December 31,
2018, the related consolidated statements of net income, comprehensive income, change in stockholders’ equity and cash
flows, for the year then ended, and the related notes (collectively, the financial statements). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018, and the
results of its operations and its cash flows for the year then ended in conformity with accounting principles generally
accepted in the United States of America.



Basis
for Opinion



These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent
with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.



We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.



Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.



/s/
Zeno, Pockl, Lilly and Copeland, A.C.



We
have served as the Company’s auditor since 2018.



Wheeling,
West Virginia

March
29, 2019





2













Report of Independent Registered
Public Accounting Firm



To the Board of Trustees of
SSB Bank:



Opinion on the Financial
Statements



We have audited the accompanying
balance sheet of SSB Bank (the “Bank”) as of December 31, 2017, the related statements of net income, comprehensive
income, changes in net worth and cash flows for the year then ended, and the related notes (collectively referred to as the “financial
statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of
the Bank as of December 31, 2017, and the results of its operations and its cash flows for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.



Basis for Opinion



These financial statements are the
responsibility of the Bank’s management. Our responsibility is to express an opinion on the Bank’s financial
statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (“PCAOB”) and are required to be independent with respect to the Bank in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.



We conducted our audit in accordance
with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement, whether due to error or fraud. The Bank is not required to
have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required
to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the
effectiveness of the Bank’s internal control over financial reporting. Accordingly, we express no such opinion.





Our audit included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides
a reasonable basis for our opinion.



We served as the Bank’s auditor
from 2017 to 2018.







Boston, Massachusetts

April 17, 2018





3







SSB
Bancorp, Inc.

CONSOLIDATED
BALANCE SHEETS



|                                                                                                                |  | December
    31, 2018 |             |   | December
    31, 2017 |  
|--------------------------------------------------------------------------------------------------------------- |  | --------------------- | ----------- | - | --------------------- | -
|                                                                                                                |  |                       |             |   |                       |  
|ASSETS                                                                                                          |  |                       |             |   |                       |  
|Cash
    and due from banks                                                                                     |  | $                     | 2,428,542   |   |                       | $
|Interest-bearing
    deposits with other financial institutions                                                 |  |                       | 6,605,528   |   |                       |  
|Cash and cash equivalents                                                                                       |  |                       | 9,034,070   |   |                       |  
|                                                                                                                |  |                       |             |   |                       |  
|Certificates of deposit                                                                                         |  |                       | 846,000     |   |                       |  
|Securities available
    for sale                                                                               |  |                       | 9,068,101   |   |                       |  
|Securities held
    to maturity (fair value of $6,478, and $9,494, respectively)                                |  |                       | 6,394       |   |                       |  
|Loans                                                                                                           |  |                       | 159,654,582 |   |                       |  
|Allowance
    for loan losses                                                                                   |  |                       | (1,124,925  | ) |                       |  
|Net loans                                                                                                       |  |                       | 158,529,657 |   |                       |  
|Accrued interest
    receivable                                                                                 |  |                       | 639,474     |   |                       |  
|Federal Home Loan
    Bank stock, at cost                                                                       |  |                       | 2,651,400   |   |                       |  
|Premises and equipment,
    net                                                                                 |  |                       | 4,335,514   |   |                       |  
|Bank-owned life
    insurance                                                                                   |  |                       | 2,429,014   |   |                       |  
|Deferred tax asset,
    net                                                                                     |  |                       | 312,623     |   |                       |  
|Prepaid reorganization
    and stock issuance costs                                                             |  |                       | -           |   |                       |  
|Other
    assets                                                                                                |  |                       | 940,098     |   |                       |  
|TOTAL
    ASSETS                                                                                                |  | $                     | 188,792,345 |   |                       | $
|                                                                                                                |  |                       |             |   |                       |  
|LIABILITIES                                                                                                     |  |                       |             |   |                       |  
|Deposits:                                                                                                       |  |                       |             |   |                       |  
|Noninterest-bearing
    demand                                                                                  |  | $                     | 5,698,782   |   |                       | $
|Interest-bearing
    demand                                                                                     |  |                       | 8,386,431   |   |                       |  
|Money market                                                                                                    |  |                       | 16,020,446  |   |                       |  
|Savings                                                                                                         |  |                       | 12,883,970  |   |                       |  
|Time                                                                                                            |  |                       | 93,119,137  |   |                       |  
|Total deposits                                                                                                  |  |                       | 136,108,766 |   |                       |  
|                                                                                                                |  |                       |             |   |                       |  
|Federal Home Loan
    Bank advances                                                                             |  |                       | 31,374,500  |   |                       |  
|Advances by borrowers
    for taxes and insurance                                                               |  |                       | 685,195     |   |                       |  
|Accrued interest
    payable                                                                                    |  |                       | 255,486     |   |                       |  
|Other
    liabilities                                                                                           |  |                       | 49,311      |   |                       |  
|TOTAL
    LIABILITIES                                                                                           |  |                       | 168,473,258 |   |                       |  
|                                                                                                                |  |                       |             |   |                       |  
|STOCKHOLDERS’ EQUITY                                                                                            |  |                       |             |   |                       |  
|Preferred Stock:
    $0.01 par value per share: 5,000,000 shares authorized and no shares issued or outstanding |  |                       | -           |   |                       |  
|Common Stock: 20,000,000 shares authorized
    and 2,248,250 shares issued and outstanding at $0.01 par value   |  |                       | 22,483      |   |                       |  
|Paid-in capital                                                                                                 |  |                       | 8,692,971   |   |                       |  
|Retained earnings                                                                                               |  |                       | 12,515,501  |   |                       |  
|Unearned Employee
    Stock Ownership Plan (ESOP)                                                               |  |                       | (837,245    | ) |                       |  
|Accumulated
    other comprehensive loss                                                                        |  |                       | (74,623     | ) |                       |  
|TOTAL
    STOCKHOLDERS’ EQUITY                                                                                  |  |                       | 20,319,087  |   |                       |  
|                                                                                                                |  |                       |             |   |                       |  
|TOTAL
    LIABILITIES AND STOCKHOLERS’ EQUITY                                                                   |  | $                     | 188,792,345 |   |                       | $



See
accompanying notes to the consolidated financial statements.



4







SSB
Bancorp, Inc.

CONSOLIDATED
STATEMENTS OF NET INCOME



|                                                                |  | Years
    ended December 31, |          
|--------------------------------------------------------------- |  | ---------------------------- | ---------
|                                                                |  | 2018                         |          
|                                                                |  |                              |          
|INTEREST INCOME                                                 |  |                              |          
|Loans,
    including fees                                       |  | $                            | 6,634,017
|Interest-bearing
    deposits with other financial institutions |  |                              | 83,195   
|Certificates of deposit                                         |  |                              | 14,783   
|Investment securities:                                          |  |                              | -        
|Taxable                                                         |  |                              | 252,895  
|Exempt
    from federal income tax                              |  |                              | 33,298   
|Total
    interest income                                       |  |                              | 7,018,188
|                                                                |  |                              |          
|INTEREST EXPENSE                                                |  |                              |          
|Deposits                                                        |  |                              | 2,199,932
|Federal
    Home Loan Bank advances                             |  |                              | 700,026  
|Total
    interest expense                                      |  |                              | 2,899,958
|                                                                |  |                              |          
|NET INTEREST INCOME                                             |  |                              | 4,118,230
|Provision
    for loan losses                                   |  |                              | 150,000  
|                                                                |  |                              |          
|NET INTEREST INCOME AFTER PROVISION
    FOR                     |  |                              |          
|LOAN
    LOSSES                                                 |  |                              | 3,968,230
|                                                                |  |                              |          
|NONINTEREST INCOME                                              |  |                              |          
|Securities gains,
    net                                       |  |                              | -        
|Provision for loss
    on loans held for sale                   |  |                              | -        
|Gain on sale of
    loans                                       |  |                              | 182,175  
|Loan servicing fees                                             |  |                              | 143,236  
|Earnings on bank-owned
    life insurance                       |  |                              | 70,495   
|Other                                                           |  |                              | 64,370   
|Total
    noninterest income                                    |  |                              | 460,276  
|                                                                |  |                              |          
|NONINTEREST EXPENSE                                             |  |                              |          
|Salaries and employee
    benefits                              |  |                              | 1,733,102
|Occupancy                                                       |  |                              | 375,251  
|Professional fees                                               |  |                              | 700,927  
|Federal deposit
    insurance                                   |  |                              | 157,500  
|Data processing                                                 |  |                              | 331,556  
|Director fees                                                   |  |                              | 139,570  
|Contributions and
    donations                                 |  |                              | 71,257   
|Other                                                           |  |                              | 475,663  
|Total
    noninterest expense                                   |  |                              | 3,984,826
|                                                                |  |                              |          
|Income before income taxes                                      |  |                              | 443,680  
|Provision for
    income taxes                                  |  |                              | 63,264   
|                                                                |  |                              |          
|NET INCOME                                                      |  | $                            | 380,416  
|                                                                |  |                              |          
|EARNINGS PER COMMON SHARE                                       |  |                              |          
|Basic                                                           |  | $                            | 0.18     
|Diluted                                                         |  | $                            | 0.18     
|                                                                |  |                              |          
|AVERAGE COMMON SHARES OUTSTANDING                               |  |                              |          
|Basic                                                           |  |                              | 2,162,322
|Diluted                                                         |  |                              | 2,162,322
|DIVIDENDS DECLARED PER COMMON SHARE                             |  |                              | -        
|COMPREHENSIVE
    INCOME                                        |  | $                            | 329,280  



See
accompanying notes to the consolidated financial statements.



5







SSB
Bancorp, Inc.

CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME



|                                                                                       |  | Years
    ended December 31, |        
|-------------------------------------------------------------------------------------- |  | ---------------------------- | -------
|                                                                                       |  | 2018                         |        
|                                                                                       |  |                              |        
|Net income                                                                             |  | $                            | 380,416
|Other comprehensive income (loss):                                                     |  |                              |        
|Net change in unrealized
    gain (loss) on available-for-sale securities              |  |                              | (65,130
|Income tax effect                                                                      |  |                              | 13,994 
|                                                                                       |  |                              |        
|Reclassification
    adjustment for net securities (gains) losses recognized in income |  |                              | -      
|Income
    tax effect included in provision for income taxes                           |  |                              | -      
|                                                                                       |  |                              |        
|Other comprehensive
    income (loss), net of tax                                      |  |                              | (51,136
|                                                                                       |  |                              |        
|Total comprehensive
    income                                                         |  | $                            | 329,280



See
accompanying notes to the consolidated financial statements.



6







SSB
Bancorp, Inc.

CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY



|                                                                                             |  | Common
    Stock |        |  | Paid-in
    capital |   |           | Retained
    earnings |  |   | Unearned
    Employee Stock Ownership Plan |  |  | Accumulated
    other comprehensive loss |          |   | Total |  
|-------------------------------------------------------------------------------------------- |  | ---------------- | ------ |  | ------------------- | - | --------- | --------------------- |  | - | ------------------------------------------ |  |  | ---------------------------------------- | -------- | - | ----- | -
|Balance as of January 1, 2017                                                                |  | $                | -      |  |                     | $ | -         |                       |  | $ | 11,542,127                                 |  |  | $                                        | -        |   |       | $
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Reclassification
    of certain income tax effects from accumulated other comprehensive loss |  |                  | -      |  |                     |   | -         |                       |  |   | 3,860                                      |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Net income                                                                                   |  |                  | -      |  |                     |   | -         |                       |  |   | 589,098                                    |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Other comprehensive
    income                                                               |  |                  | -      |  |                     |   | -         |                       |  |   | -                                          |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Balance as of January 1, 2018                                                                |  |                  | -      |  |                     |   | -         |                       |  |   | 12,135,085                                 |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Net income                                                                                   |  |                  | -      |  |                     |   | -         |                       |  |   | 380,416                                    |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Other comprehensive
    loss                                                                 |  |                  | -      |  |                     |   | -         |                       |  |   | -                                          |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Net proceeds from stock offering (2,248,250
    shares issued)                               |  |                  | 22,483 |  |                     |   | 8,696,044 |                       |  |   | -                                          |  |  |                                          | -        |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Purchase of ESOP shares (88,131 shares
    purchased)                                        |  |                  | -      |  |                     |   | -         |                       |  |   | -                                          |  |  |                                          | (881,310 | ) |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Amortizaton of ESOP                                                                          |  |                  | -      |  |                     |   | (3,073    | )                     |  |   | -                                          |  |  |                                          | 44,065   |   |       |  
|                                                                                             |  |                  |        |  |                     |   |           |                       |  |   |                                            |  |  |                                          |          |   |       |  
|Balance as of December 31, 2018                                                              |  | $                | 22,483 |  |                     | $ | 8,692,971 |                       |  | $ | 12,515,501                                 |  |  | $                                        | (837,245 | ) |       | $



See
accompanying notes to the consolidated financial statements.



7







SSB
Bancorp, Inc.

CONSOLIDATED
STATEMENTS OF CASH FLOWS



|                                                                                      |  | Years
    ended December 31, |            
|------------------------------------------------------------------------------------- |  | ---------------------------- | -----------
|                                                                                      |  | 2018                         |            
|                                                                                      |  |                              |            
|OPERATING ACTIVITIES                                                                  |  |                              |            
|Net
    income                                                                        |  | $                            | 380,416    
|Adjustments to reconcile
    net income to net cash provided by operating activities: |  |                              |            
|Provision for loan
    losses                                                         |  |                              | 150,000    
|Depreciation                                                                          |  |                              | 156,968    
|Net amortization
    of investment securities                                         |  |                              | 19,398     
|Origination of loans
    held for sale                                                |  |                              | (9,542,543 
|Proceeds from sale
    of loans                                                       |  |                              | 9,724,718  
|Gain on sale of
    loans                                                             |  |                              | (182,175   
|Deferred income
    tax provision (benefit)                                           |  |                              | (15,546    
|Investment securities
    gains, net                                                  |  |                              | -          
|Increase in accrued
    interest receivable                                           |  |                              | (163,057   
|Decrease in accrued
    interest payable                                              |  |                              | 48,889     
|Amortization of ESOP                                                                  |  |                              | 40,992     
|Increase in bank
    owned life insurance                                             |  |                              | (70,495    
|Other,
    net                                                                        |  |                              | (58,068    
|Net
    cash provided by (used in) operating activities                               |  |                              | 489,497    
|                                                                                      |  |                              |            
|INVESTING ACTIVITIES                                                                  |  |                              |            
|Purchase of certificates of deposit                                                   |  |                              | (248,000   
|Redemption of certificates of deposit                                                 |  |                              | 345,000    
|Investment securities
    available for sale:                                         |  |                              |            
|Purchases                                                                             |  |                              | (6,900,211 
|Proceeds from sales                                                                   |  |                              | -          
|Proceeds from principal
    repayments, calls, and maturities                         |  |                              | 363,932    
|Investment securities
    held to maturity:                                           |  |                              |            
|Proceeds from principal
    repayments, calls, and maturities                         |  |                              | 3,403      
|Redemption of Federal
    Home Loan Bank stock                                        |  |                              | 182,000    
|Purchase of Federal
    Home Loan Bank stock                                          |  |                              | (670,800   
|Purchases of loans                                                                    |  |                              | (5,841,464 
|Increase in loans
    receivable, net                                                 |  |                              | (12,341,824
|Proceeds from sale
    of portfolio loans                                             |  |                              | -          
|Proceeds from sale
    of other real estate owned                                     |  |                              | -          
|Purchases of premises
    and equipment                                               |  |                              | (134,476   
|Proceeds from sale
    of premise and equipment                                       |  |                              |            
|Purchase
    of bank-owned life insurance                                             |  |                              | -          
|Net
    cash (used for) provided by investing activities                              |  |                              | (25,242,440
|                                                                                      |  |                              |            
|FINANCING ACTIVITIES                                                                  |  |                              |            
|Increase in deposits,
    net                                                         |  |                              | 3,678,742  
|Decrease in advances
    by borrowers for taxes and insurance                         |  |                              | (3,256     
|Net proceeds from
    stock offering                                                  |  |                              | 8,718,527  
|Purchase of ESOP
    shares                                                           |  |                              | (881,310   
|Repayment of Federal
    Home Loan Bank advance                                       |  |                              | (9,291,700 
|Proceeds from Federal
    Home Loan Bank advances                                     |  |                              | 14,250,000 
|Decrease
    (increase) in prepaid reorgainization and stock issuance costs           |  |                              | 837,944    
|Net
    cash provided by (used in) financing activities                               |  |                              | 17,308,947 
|                                                                                      |  |                              |            
|Increase (decrease)
    in cash and cash equivalents                                  |  |                              | (7,443,996 
|                                                                                      |  |                              |            
|CASH AND CASH
    EQUIVALENTS AT BEGINNING OF PERIOD                                  |  |                              | 16,478,066 
|                                                                                      |  |                              |            
|CASH AND CASH
    EQUIVALENTS AT END OF PERIOD                                        |  | $                            | 9,034,070  
|                                                                                      |  |                              |            
|SUPPLEMENTAL CASH FLOW DISCLOSURES                                                    |  |                              |            
|Cash paid during
    the year for:                                                    |  |                              |            
|Interest                                                                              |  | $                            | 2,851,069  
|Income taxes                                                                          |  |                              | 117,368    
|                                                                                      |  |                              |            
|Noncash investing
    activities:                                                     |  |                              |            
|Loans held for sale
    transferred to loans held for investment                      |  |                              | -          



See
accompanying notes to the consolidated financial statements.



8







SSB
Bancorp, Inc.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS



|1. | NATURE
    OF OPERATIONS AND BASIS OF PRESENTATION
|-- | --------------------------------------------------



SSB
Bancorp, Inc.



SSB
Bancorp, Inc. was incorporated on August 17, 2017 to serve as the subsidiary stock holding company for SSB Bank upon the reorganization
of SSB Bank into a mutual holding company structure (the “Reorganization”). The Reorganization was completed effective
January 24, 2018, with SSB Bank becoming the wholly-owned subsidiary of SSB Bancorp, Inc., and SSB Bancorp, Inc. becoming the
majority-owned subsidiary of SSB Bancorp, MHC. In connection with the Reorganization, SSB Bancorp, Inc. sold 1,011,712 shares
of common stock at an offering price of $10 per share. The common stock is quoted on the OTC Bulletin Board under the symbol “SSBP”.
Also, in connection with the Reorganization, SSB Bank established an employee stock ownership plan (the “ESOP”), which
purchased 88,131 shares of common stock at a price of $10 per share. In the Reorganization SSB Bancorp, Inc. also issued 1,236,538
shares of its common stock to SSB Bancorp, MHC.



SSB
Bank



SSB
Bank (the “Bank”) provides a variety of financial services to individuals and corporate customers through its offices
in Pittsburgh, Pennsylvania. The Bank’s primary deposit products are passbook savings accounts, money market accounts, and
certificates of deposit. Its primary lending products are commercial mortgage loan and single-family residential loans. The Bank
is subject to regulation and supervision by the Federal Deposit Insurance Corporation (FDIC) and the Pennsylvania Department of
Banking and Securities.



The
consolidated financial statements include the accounts of SSB Bancorp, Inc. and SSB Bank (collectively, the “Company”).
All significant intercompany accounts and transactions have been eliminated in consolidation.



Financial
information for the periods before the Reorganization on January 24, 2018 is that of SSB Bank only.



9







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES
|-- | ----------------------------------------------



Use
of Estimates



The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.



Material
estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses
and the valuation of the deferred tax assets.



In
connection with the determination of the allowance for loan losses, management periodically obtains independent appraisals for
significant properties. A majority of the Bank’s loan portfolio consists of commercial mortgage loans and single-family
residential loans in the Pittsburgh area. Real estate prices in this market have been generally stable; however, the ultimate
collectability of the Bank’s loan portfolio is susceptible to changes in local market conditions. While management currently
uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance may be necessary
based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process,
periodically review the Bank’s allowance for losses on loans. Such agencies may require the Bank to recognize additions
to the allowance based on their judgments about information available to them at the time of their examination. Because of these
factors, it is reasonably possible that the allowance for loan losses may change materially in the near term.



In
connection with deferred tax assets, the Bank uses an estimate of future earnings to support the position that the benefit of
deferred tax assets will be realized. If future income should prove non-existent or less than the amount of the deferred tax assets
within the tax years to which they may be applied, the asset may not be realized and the Bank’s net income will be reduced.



Concentrations
of Credit Risk



The
majority of the loans and commitments to extend credit have been granted to customers in the Pittsburgh market and surrounding
communities. The Bank does not have any significant concentrations in any one industry or customer. Although the Bank has a diversified
loan portfolio at December 31, 2018 and 2017, its debtors’ ability to honor their contracts is influenced by the region’s
economy.



Cash
and Cash Equivalents



The
Bank considers all cash and amounts due from banks and interest-bearing deposits with other financial institutions with original
maturities of 90 days or less to be cash equivalents for purposes of the statements of cash flows. From time to time, the Bank
may invest funds with other financial institutions through certificates of deposit. Certificates of deposit are carried at cost
and have original maturities of greater than ninety days.



Investment
and Mortgage-Backed Securities



Investment
and mortgage-backed securities are classified at the time of purchase, based upon management’s intentions and ability, as
securities held to maturity or securities available for sale. Debt securities, including mortgage-backed securities acquired with
the intent and ability to hold to maturity are stated at cost adjusted for the amortization of premiums and accretion of discounts,
which are computed using the level yield interest method and recognized as adjustments of interest income over the contractual
terms of the securities. Unrealized holding gains and losses for available-for-sale securities are reported as a separate component
of net worth, net of tax, until realized. Realized securities gains and losses are recognized on the trade date and computed using
the specific identification method. Interest and dividends on investment securities are recognized as income when earned.



10







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Investment
and Mortgage-Backed Securities (continued)



Securities
are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the
length of time and extent to which the fair value has been less than cost, the financial condition of the underlying issuer, the
ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in
its fair value, and whether or not the Bank intends to sell the security or whether it is more likely than not that the Bank would
be required to sell the security before its anticipated recovery in fair value. For securities evaluated for impairment, management
will determine what portion of the unrealized valuation loss is attributed to projected or known loss of principal, and what portion
is attributed to market pricing based on current cash flow analysis. Management will generally record impairment equivalent to
the projected or known loss of principal, known as the credit loss. The other portion of the fair market value loss is attributed
to market factors and it is management’s opinion that these fair value losses are temporary and not permanent. A decline
in value that is considered to be other than temporary is recorded as a loss within noninterest income in the statements of net
income.



Federal
Home Loan Bank Stock



As
a member of the Federal Home Loan Bank of Pittsburgh (FHLB) the Bank is required to maintain a minimum investment in stock of
the FHLB that varies with the level of advances outstanding from the FHLB. The stock is bought from and sold to the FHLB based
upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock,
carried at cost and evaluated for impairment as necessary. The stock’s value is determined by the ultimate recoverability
of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be
recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared
to the capital stock amount and the length of time this situation has persisted; (b) commitments by the FHLB to make payments
required by law or regulation and the level of such payments in relation to the operating performance; (c) the impact of legislative
and regulatory changes on the customer base of the FHLB; and (d) the liquidity position of the FHLB. Management evaluated the
stock and concluded that the stock was not impaired for the periods presented herein.



Loans
Held for Sale



Loans
held for sale are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recognized through
a valuation allowance by charges to income. As of December 31, 2016, there were $6.1 million in commercial mortgage and $14.2
million in residential mortgage loans held for sale with a related valuation allowance of $371,780. In 2017, management sold $7.3
million of these loans and made a determination to transfer the remaining $12.6 million in loans as held for investment. The loans
were transferred to the portfolio at fair value and the remaining valuation allowance of approximately $255,000 is being amortized
into interest income utilizing the effective interest method. There were no loans held for sale as of December 31, 2018 or 2017.



In
addition, management sells certain fixed-rate residential mortgage loans periodically through the FHLB’s Mortgage Partnership
Finance Program. There were no loans held for sale outstanding under this program as of December 31, 2018 or 2017.



Loans
and Allowance for Loan Losses



Loans
that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at unpaid
principal balances, less the allowance for loan losses and as adjusted for third-party loan acquisition costs, deferred origination
fees and costs, and discounts on loans previously held for sale. Beginning in 2017, the Bank began deferring all loan origination
fees and costs. Prior to 2017, loan origination fees and costs are generally recognized as incurred and were not material for
the periods presented.



11









|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Loans
and Allowance for Loan Losses (continued)



Interest
income is recognized using the level yield method related to principal amounts outstanding. The Bank discontinues the accrual
of interest income generally when loans become 90 days past due in either principal or interest. However, these determinations
are made on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including
the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall
in relation to the principal and interest owed. In addition, if circumstances warrant, the accrual of interest may be discontinued
prior to 90 days. A non-accrual loan will generally be placed back on accrual status after the borrower has become current and
has demonstrated continued ability to service the loan.



The
allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent
in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to
the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan
losses that is charged to operations. The provision is based on management’s evaluation of the adequacy of the allowance
for loan losses which encompasses the overall risk characteristics of the various portfolio segments, past experience with losses,
the impact of economic conditions on borrowers, and other relevant factors.



Impaired
loans are those for which it is probable the Bank will not be able to collect scheduled payments when due according to the contractual
terms of the loan agreement. The Bank individually evaluates such loans for impairment and does not aggregate them by major risk
classifications. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,”
although the two categories overlap. The Bank may choose to classify a loan as impaired due to payment delinquency or uncertain
collectability while not placing the loan on nonaccrual. Factors considered by management in determining impairment include payment
status and the financial condition of the borrower. The amount of impairment for these types of loans is determined by the difference
between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value
or, as a practical expedient in the case of collateral dependent loans, the difference between the fair value of the collateral
net of estimated selling costs, if applicable, and the recorded amount of the loans.



Loans
which have undergone a significant modification are considered for potential troubled debt restructuring status. A troubled debt
restructuring is a loan where management has granted a concession from the original terms to a borrower that is experiencing financial
difficulties. A concession is generally granted in order to improve the financial condition of the borrower and improve the likelihood
of full collection by the lender. A concession is generally defined as more favorable payment or credit terms granted to a borrower
in an effort to improve the likelihood of the Bank collecting principal in its entirety. All loans modified and determined to
be a troubled debt restructuring are considered to be impaired.



Loans
that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines
the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances
surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior
payment record, and the amount of the shortfall in relation to the principal and interest owed.



Large
groups of smaller-balance homogenous loans are collectively evaluated for impairment.





12







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Loans
and Allowance for Loan Losses (continued)



In
reviewing risk within the Bank’s loan portfolio, management has determined there to be several different risk categories
within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) the one-to-four family mortgage
portfolio; (ii) the commercial mortgage portfolio; (iii) the commercial and industrial portfolio; and (iv) the consumer portfolio.
Factors considered in this process included general loan terms, collateral, and availability of historical data to support the
analysis. Risk characteristics within the portfolios are noted as follows:



One-to-four
family residential real estate – All loans in this segment are collateralized by owner-occupied residential real estate
and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment
rates and housing prices, will have an effect on the credit quality in this segment. To a lesser extent, the Bank originates construction
loans on residential properties, which have an increased risk attributable to possible construction delays or costs over-runs.



Commercial
real estate – Loans in this segment are primarily income-producing properties in the Pittsburgh area. The underlying cash
flows generated by the properties can be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates,
which in turn, could have an effect on the credit quality in this segment. Management continually monitors the cash flows of these
loans.



Commercial
and industrial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment
is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, could have an
effect on the credit quality in this segment.



Consumer
and HELOC – Loans in this segment are generally unsecured except for home equity lines of credit, which are secured by residential
real estate. Repayment on unsecured consumer loans is dependent on the credit quality of the individual borrower.



In
terms of the Bank’s loan portfolio, the commercial and industrial loans and commercial mortgage loans are deemed to have
more risk than the one-to-four family mortgage loans and other consumer loans in the portfolio. The commercial and industrial
loans are highly dependent on the borrowers’ financial condition and therefore are more dependent on economic conditions.
The commercial mortgage loans are also dependent on economic conditions but generally have stronger forms of collateral.



Management’s
assessment of historical loss experience is used as the basis for the general reserve component. Certain qualitative factors are
then added to adjust the historical allocation percentage to get the total factor to be applied to performing loans. The following
qualitative factors are analyzed:



| | ● | Quality
    of lending policies and procedures and other credit quality indicators
| | - | ----------------------------------------------------------------------------------
| | ● | 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                                                      



The
Bank analyzes its loan portfolio each month to determine the appropriateness of its allowance for loan losses.



In
calculating the allowance, management will begin by compiling the balance of loans by credit quality for each loan segment in
order that allocations can be made in aggregate based on historic losses and qualitative factors. Prior to calculating these aggregate
allocations, management will individually evaluate commercial and industrial and commercial mortgage loans for impairment. One-to-four
family mortgages and consumer loans are not individually evaluated for impairment and are therefore allocated for in aggregate,
unless the loan was subject to a modification or is nonperforming. The loans measured in aggregate are considered to be large
groups of smaller-balance homogenous loans and are measured for impairment collectively.



13







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Other
Real Estate Owned



Other
real estate owned acquired in settlement of foreclosed loans is carried as a component of other assets at fair value, less estimated
costs to sell. Prior to foreclosure, the estimated collectible value of the collateral is evaluated to determine whether a partial
charge-off of the loan balance is necessary. After transfer to other real estate owned, any subsequent write-downs are charged
against other operating expenses. Direct costs incurred in the foreclosure process and subsequent holding costs incurred on such
properties are recorded as expenses of current operations. As of December 31, 2018 and 2017, included with other assets are $138,100,
and $59,932, respectively, of property from one-to-four family residential mortgages that were foreclosed on. As of December 31,
2018, there were no foreclosures in process for residential real estate. Additionally, foreclosure proceedings have started on
one additional one-to-four family residential mortgage with a balance of $76,552.



Mortgage
Servicing Rights (MSRs)



The
Bank recognizes, as separate assets, rights to service mortgage loans for others, whether the rights are acquired through purchase
or after origination and sale of mortgage loans. The Bank initially measures MSRs at fair value. Fair value is based on market
prices for comparable mortgage servicing contracts, when available, or alternatively is based on the present value of estimated
future net servicing income. Servicing assets are subsequently measured using the amortization method, which requires servicing
rights to be amortized into noninterest income. The Bank amortizes these assets on a straight-line basis over the estimated life
of the loan which does not differ materially from the proportional amortization method. The Bank performs a periodic review for
impairment in the carrying value of mortgage servicing rights. Any impairment is recognized through a valuation allowance with
a corresponding charge in the statements of net income.



Premises
and Equipment



Land
is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using
the straight-line method over the estimated useful lives of the related assets, which range from 3 to 10 years for furniture,
fixtures, and equipment and 40 years for buildings. Expenditures for maintenance and repairs are charged against income as incurred.



Bank-Owned
Life Insurance



The
Bank invests in bank-owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing
of life insurance policies by the Bank on a chosen group of employees. The Bank is the owner and beneficiary of the policies.
This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in
cash surrender value of the policies, as well as proceeds received in excess of cash surrender values, are included in other income
in the statement of net income, and are not subject to income taxes.



Transfers
of Financial Assets



Transfers
of financial assets, including loan and loan participation sales, are accounted for as sales when control over the assets has
been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the
Bank; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge
or exchange the transferred assets; and (3) the Bank does not maintain effective control over the transferred assets through an
agreement to repurchase them before their maturity.



14







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Income
Taxes



Deferred
income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred
tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the
various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws in the period of enactment.
Accordingly, changes resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 have been recognized in the financial
statements as of and for the year ended December 31, 2017. A valuation allowance is established against deferred tax assets when,
based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all
of the deferred tax assets will not be realized.



Comprehensive
Income



Comprehensive
income or loss consists of net income or loss and other comprehensive income or loss that includes changes in the unrealized gains
and losses on securities available for sale. Additionally, the unrealized gains and losses at the end of the period are recorded
in accumulated other comprehensive income (loss) on the balance sheets, net of tax.



On
February 14, 2018, the Financial Accounting Standards Board (FASB) finalized Accounting Standards Update (ASU) 2018-02 - Income
Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated other Comprehensive
Income. This accounting standard allows companies to reclassify the “stranded” tax effects in accumulated other
comprehensive income that resulted from the Tax Cuts and Jobs Act, which requires deferred tax liabilities and assets to be adjusted
for the effect of a change in tax laws, to retained earnings.



The
Bank has elected to early adopt this accounting standard, which provides a benefit to the financial statements by more accurately
aligning the impacts of the items carried in accumulated other comprehensive income with the associated tax effect. The adoption
resulted in a one-time cumulative effect adjustment of $3,860 between retained earnings and accumulated other comprehensive income.
The adjustment had no impact on net income or any prior periods presented.



Advertising
Costs



Advertising
costs are expensed as incurred. When applicable, a contract is amortized over its term.



Recent
Accounting Standards



On
April 5, 2012, the Jumpstart Our Business Startups Act (the “JOBS Act”) was signed into law. The JOBS Act contains
provisions that among other things, reduce certain reporting requirements for qualifying public companies and define and “emerging
growth company.” As an emerging growth company, the Bank may delay adoption of new or revised financial accounting standards
until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer
companies, no deferral would be applicable. We intend to take advantage of the benefits of extended transition periods. Accordingly,
our financial statements may not be comparable to those of public companies that adopt the new or revised financial accounting
standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to
non-issuer companies.



In
May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update
create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605,
Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the
Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services. To achieve the core principle, a company should apply a five step approach to revenue recognition. The
amendments in this Update are effective for annual reporting periods beginning after December 15, 2018, and interim periods within
annual periods beginning after December 15, 2019. Early adoption is permitted, but only for annual reporting periods beginning
after December 15, 2016. The Update is not expected to have a significant impact on the Company’s consolidated financial
statements, as substantially all of the Company’s revenues are outside the scope of the guidance.



15







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Recent
Accounting Standards (Continued)



In
January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities. This Update applies to all entities that hold financial assets or owe financial
liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of
financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity
method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair
value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair
values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value
of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement
for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required
to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities
to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate
presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities
or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an
entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in
combination with the entity’s other deferred tax assets. The amendments in this Update are effective for fiscal years beginning
after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Entities may adopt the amendments
in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal
years. The Update is not expected to have a significant impact on the Company’s consolidated financial statements.



In
February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and
liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability
to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the
lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option
to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to
recognize lease payments over the lease term on a straight-line basis. The amendments in this Update are effective for fiscal
years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments
should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application
permitted as of the beginning of an interim or annual reporting period. The Update is not expected to have a significant impact
on the Company’s consolidated financial statements. As of December 31, 2018, the Company had no contractual lease payments
under operating lease agreements based on current guidance.



Reclassification
of Certain Accounts



Certain deposit account types
have been reclassified as of December 31, 2018. The amount reclassified from interest-bearing demand deposits to noninterest-bearing
demand deposits totaled $8.7 million. The reclassification is for presentation purposes and does not impact earnings.



16







|2. | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ----------------------------------------------------------



Recent
Accounting Standards (Continued)



In
June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments,
which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring
timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations.
The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount
expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance
for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining
life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial
assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU
2016-13 is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer,
for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For public business entities
that do not meet the definition of an SEC filer, for fiscal years beginning after December 15, 2020, including interim periods
within those fiscal years. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment
to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Bank expects
to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting
period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall
impact of the new guidance on the financial statements, as any adjustment will be dependent on the composition of the loan portfolio
at the time of adoption. The Company is currently in the early stages of implementing processes to comply with the requirements
of the Update.



In
March 2017, the FASB issued ASU 2017-08, Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments
in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments
require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities
held at a discount; the discount continues to be amortized to maturity. The amendments are effective for fiscal years beginning
after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted,
including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should
be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in
this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning
of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting
principle. The Update is not expected to have a significant impact on the Company’s consolidated financial statements.



In
February 2018, the FASB issued Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax
Effects from Accumulated Other Comprehensive Income. ASU 2018-02 provides the option to reclassify certain stranded income
tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 (Tax Reform Act), enacted
on December 22, 2017. ASU 2018-02 was issued in response to concerns regarding current guidance in GAAP that requires deferred
tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from
continuing operations in the reporting period that includes the enactment date, even in situations in which the related income
tax effects were originally recognized in other comprehensive income, rather than net income, and as a result the stranded tax
effects would not reflect the appropriate tax rate. The amendments of ASU 2018-02 allow an entity to make a reclassification from
accumulated other comprehensive income to retained earnings for the stranded tax effects, which is the difference between the
historical corporate income tax rate of 34.0 percent and the newly enacted corporate income tax rate of 21.0 percent. ASU 2018-02
is effective for fiscal years, and interim periods within those years, beginning after December 31, 2018; however, entities are
allowed to early adopt the amendments of ASU 2018-02 in any interim period for which the financial statements have not yet been
issued. The amendments of ASU 2018-02 may be applied either at the beginning of the period (annual or interim) of adoption or
retrospectively to each of the period(s) in which the effect of the change in the U.S. federal corporate tax rate in the Tax Reform
Act is recognized. The Bank chose to early adopt the new standard for the year ended December 31, 2017, as allowed. The amount
of the reclassification for the Bank was $3,860, as shown in the Company’s consolidated statement of changes in stockholders’
equity.



17







|3. | SECURITIES
    AVAILABLE FOR SALE
|-- | ---------------------------------



The
amortized cost and fair values of securities available for sale are as follows:



|                                                               |  | December
    31, 2018 |          
|-------------------------------------------------------------- |  | --------------------- | ---------
|                                                               |  |                       |          
|                                                               |  | Amortized             |          
|                                                               |  | Cost                  |          
|                                                               |  |                       |          
|Mortgage-backed
    securities ingovernment-sponsored entities |  | $                     | 3,883,220
|Obligations
    of state and political subdivisions            |  |                       | 1,540,053
|Corporate
    bonds                                            |  |                       | 3,547,246
|U.S.
    treasury securities                                   |  |                       | 192,443  
|Total                                                          |  | $                     | 9,162,962



|                                                               |  | December
    31, 2017 |          
|-------------------------------------------------------------- |  | --------------------- | ---------
|                                                               |  |                       |          
|                                                               |  | Amortized             |          
|                                                               |  | Cost                  |          
|                                                               |  |                       |          
|Mortgage-backed
    securities ingovernment-sponsored entities |  | $                     | 524,873  
|Obligations
    of state and political subdivisions            |  |                       | 1,626,608
|Corporate
    bonds                                            |  |                       | 300,952  
|U.S.
    treasury securities                                   |  |                       | 193,647  
|Total                                                          |  | $                     | 2,646,080



The
amortized cost and fair value of investment securities available for sale by contractual maturity are shown below. 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. Mortgage-backed securities provide for periodic payments of principal and interest and have contractual
maturities ranging from less than a year to 25 years. Due to expected repayment terms being significantly less than the underlying
mortgage pool contractual maturities, estimated lives of these securities could be significantly shorter.



|                                           |  | December
    31, 2018 |          
|------------------------------------------ |  | --------------------- | ---------
|                                           |  | Amortized             |          
|                                           |  | Cost                  |          
|                                           |  |                       |          
|Due
    within one year or less            |  | $                     | 422,899  
|Due
    after one year through five years  |  |                       | 2,658,432
|Due
    after five years through ten years |  |                       | 2,263,017
|Due
    after ten years                    |  |                       | 3,818,614
|Total                                      |  | $                     | 9,162,962



In
2017, proceeds from sales of investment securities available for sale were $314,190 with a gross realized gain of $547. There
were no sales of investment securities in 2018.



18









|4. | SECURITIES
    HELD TO MATURITY
|-- | -------------------------------



The
amortized cost and fair values of securities held to maturity are as follows:



|                                                               |  | December
    31, 2018 |      
|-------------------------------------------------------------- |  | --------------------- | -----
|                                                               |  |                       |      
|                                                               |  | Amortized             |      
|                                                               |  | Cost                  |      
|Mortgage-backed
    securities ingovernment-sponsored entities |  | $                     | 6,394
|Total                                                          |  | $                     | 6,394



|                                                               |  | December
    31, 2017 |      
|-------------------------------------------------------------- |  | --------------------- | -----
|                                                               |  |                       |      
|                                                               |  | Amortized             |      
|                                                               |  | Cost                  |      
|Mortgage-backed
    securities ingovernment-sponsored entities |  | $                     | 9,797
|Total                                                          |  | $                     | 9,797



The
amortized cost and fair value of mortgage-backed securities held to maturity at December 31, 2018, by contractual maturity, are
shown below. Mortgage-backed securities provide for periodic payments of principal and interest and have contractual maturities
ranging from less than a year to 9 years. Due to expected repayment terms being significantly less than the underlying mortgage
pool contractual maturities, actual lives of these securities could be significantly shorter.





|                                            |  | December
    31, 2018 |      
|------------------------------------------- |  | --------------------- | -----
|                                            |  | Amortized             |      
|                                            |  | Cost                  |      
|                                            |  |                       |      
|Due
    within one year or less             |  | $                     | 18   
|Due
    after one year through five years   |  |                       | 4,879
|Due
    after five years through nine years |  |                       | 1,497
|                                            |  |                       |      
|Total                                       |  | $                     | 6,394





19







|5. | UNREALIZED
    LOSSES ON SECURITIES
|-- | -----------------------------------



The
following tables show the Bank’s gross unrealized losses and fair value, aggregated by investment category and length of
time that the individual securities have been in a continuous unrealized loss position:



|                                                                |  | December
    31, 2018       |          
|--------------------------------------------------------------- |  | --------------------------- | ---------
|                                                                |  | Less
    than Twelve Months |          
|                                                                |  |                             |          
|                                                                |  | Fair                        |          
|                                                                |  | Value                       |          
|                                                                |  |                             |          
|U.S.
    treasury securities                                    |  | $                           | 159,275  
|Mortgage-backed
    securities in government-sponsored entities |  |                             | 3,458,555
|Obligations
    of state and political subdivisions             |  |                             | 55,708   
|Corporate
    bonds                                             |  |                             | 3,309,271
|Total                                                           |  | $                           | 6,982,809



|                                                                |  | December
    31, 2017       |          
|--------------------------------------------------------------- |  | --------------------------- | ---------
|                                                                |  | Less
    than Twelve Months |          
|                                                                |  |                             |          
|                                                                |  | Fair                        |          
|                                                                |  | Value                       |          
|                                                                |  |                             |          
|Mortgage-backed
    securities in government-sponsored entities |  | $                           | 519,258  
|Obligations
    of state and political subdivisions             |  |                             | 1,044,275
|Corporate
    bonds                                             |  |                             | 199,898  
|                                                                |  |                             |          
|Total                                                           |  | $                           | 1,763,431



Management
reviews the Bank’s securities positions quarterly. There were 25 investments that were temporarily impaired as of December
31, 2018, with aggregate depreciation of less than 2 percent from the Bank’s amortized cost basis. At December 31, 2018,
the declines outlined in the above table represent temporary declines and the Bank does not intend to sell and does not believe
it will be required to sell these securities before recovery of their cost basis, which may be at maturity.



The
Bank has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary
and the declines are the result of interest rate changes, sector credit rating changes, or company-specific rating changes that
are not expected to result in the noncollection of principal and interest during the period.



20







|6. | LOANS
|-- | -----



The
Bank’s loan portfolio summarized by category is as follows:



|                                                                 |  | December
    31, |             |   | December
    31, |  
|---------------------------------------------------------------- |  | ---------------- | ----------- | - | ---------------- | -
|                                                                 |  | 2018             |             |   | 2017             |  
|                                                                 |  |                  |             |   |                  |  
|Mortgage loans:                                                  |  |                  |             |   |                  |  
|One-to-four
    family                                           |  | $                | 75,520,850  |   |                  | $
|Commercial                                                       |  |                  | 59,494,384  |   |                  |  
|                                                                 |  |                  | 135,015,234 |   |                  |  
|                                                                 |  |                  |             |   |                  |  
|Commercial and industrial                                        |  |                  | 19,166,207  |   |                  |  
|Consumer                                                         |  |                  | 5,404,216   |   |                  |  
|                                                                 |  |                  | 159,585,657 |   |                  |  
|                                                                 |  |                  |             |   |                  |  
|Third-party loan acquisition
    and other net origination costs |  |                  | 268,101     |   |                  |  
|Discount on loans previously
    held for sale                   |  |                  | (199,176    | ) |                  |  
|Allowance
    for loan losses                                    |  |                  | (1,124,925  | ) |                  |  
|                                                                 |  |                  |             |   |                  |  
|Total                                                            |  | $                | 158,529,657 |   |                  | $



The
Bank’s primary business activity is with customers located in Pittsburgh and surrounding communities. The Bank’s loan
portfolio consists predominantly of one-to-four family mortgage and commercial mortgage loans. These loans are typically secured
by first-lien positions on the respective real estate properties and are subject to the Bank’s underwriting policies. Included
in consumer loans is $3,552,786 and $2,165,745 of home equity lines of credit as of December 31, 2018 and 2017, respectively.



During
the normal course of business, the Bank may transfer a portion of a loan as a participation loan, in order to manage portfolio
risk. In order to be eligible for sales treatment, all cash flows from the loan must be divided proportionately, the rights of
each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations
and warranties, and no loan holder can have the right to pledge or exchange the entire loan. The Bank transferred $7,508,671 and
$8,129,670 in participation loans, as of December 31, 2018 and 2017, respectively, to other financial institutions. As of December
31, 2018 and 2017, all of these loans were being serviced by the Bank.



In
the ordinary course of business, loans are extended to directors, principal officers, and their affiliates. In management’s
opinion, all of these loans are substantially on the same terms and conditions as loans to other individuals and businesses of
comparable credit worthiness. A summary of loan activity for these principal officers, directors, and their affiliates, is as
follows:



|                               |  | Years
    Ended December 31, |          
|------------------------------ |  | ---------------------------- | ---------
|                               |  | 2018                         |          
|                               |  |                              |          
|Balance,
    beginning of year |  | $                            | 917,968  
|Additions                      |  |                              | 484,223  
|Repayments                     |  |                              | (271,801 
|Balance,
    end of year       |  | $                            | 1,130,390



21







|7. | ALLOWANCE
    FOR LOAN LOSSES
|-- | -----------------------------



The
allowance for loan losses reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet
date. The following tables present, by portfolio segment, the changes in the allowance for loan losses:



|Year endedDecember 31, 2018:   |  | Mortgage
    One-to-FourFamily |         |   | Mortgage
    Commercial |   |         | Commercial
    andIndustrial |  |   | Consumer
    andHELOC |   |  | Total |        
|------------------------------ |  | ------------------------------ | ------- | - | ----------------------- | - | ------- | ---------------------------- |  | - | --------------------- | - |  | ----- | -------
|Allowance
    for loan losses: |  |                                |         |   |                         |   |         |                              |  |   |                       |   |  |       |        
|Beginning
    balance          |  | $                              | 513,846 |   |                         | $ | 383,535 |                              |  | $ | 80,854                |   |  | $     | 63,210 
|Charge-offs                    |  |                                | (16,429 | ) |                         |   | -       |                              |  |   | (9,270                | ) |  |       | (40,821
|Recoveries                     |  |                                | -       |   |                         |   | -       |                              |  |   | -                     |   |  |       | -      
|Provision
    (credit)         |  |                                | (74,878 | ) |                         |   | 10,365  |                              |  |   | 192,137               |   |  |       | 22,376 
|Ending balance                 |  | $                              | 422,539 |   |                         | $ | 393,900 |                              |  | $ | 263,721               |   |  | $     | 44,765 





|Year
endedDecember 31, 2017:   |  | Mortgage
    One-to-FourFamily |         |  | Mortgage
    Commercial |   |         | Commercial
    and Industrial |  |   | Consumer
    and HELOC |  |  | Total |        
|------------------------------ |  | ------------------------------ | ------- |  | ----------------------- | - | ------- | ----------------------------- |  | - | ---------------------- |  |  | ----- | -------
|Allowance
    for loan losses: |  |                                |         |  |                         |   |         |                               |  |   |                        |  |  |       |        
|Beginning
    balance          |  | $                              | 498,410 |  |                         | $ | 228,763 |                               |  | $ | 59,439                 |  |  | $     | 34,127 
|Charge-offs                    |  |                                | -       |  |                         |   | -       |                               |  |   | -                      |  |  |       | (26,336
|Recoveries                     |  |                                | -       |  |                         |   | -       |                               |  |   | -                      |  |  |       | -      
|Provision
    (credit)         |  |                                | 15,436  |  |                         |   | 154,772 |                               |  |   | 21,415                 |  |  |       | 55,419 
|Ending balance                 |  | $                              | 513,846 |  |                         | $ | 383,535 |                               |  | $ | 80,854                 |  |  | $     | 63,210 





22







|7. | ALLOWANCE
    FOR LOAN LOSSES (Continued)
|-- | -----------------------------------------



The
following tables present the composition of the allowance for loan losses as of December 31, 2018 and 2017, by loan class and
segregated by those loans that deemed impaired and those that are not deemed impaired:



|                               |  | MortgageOne-to-FourFamily |            |  | Mortgage
    Commercial |   |            | Commercial
    and Industrial |  |   | Consumer
    andHELOC |  |  | Total |          
|------------------------------ |  | ------------------------- | ---------- |  | ----------------------- | - | ---------- | ----------------------------- |  | - | --------------------- |  |  | ----- | ---------
|December 31, 2018              |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Allowance
    for loan losses: |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Loans
    deemed impaired      |  | $                         | 28,136     |  |                         | $ | -          |                               |  | $ | -                     |  |  | $     | -        
|                               |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Loans
    not deemed impaired  |  |                           | 394,403    |  |                         |   | 393,900    |                               |  |   | 263,721               |  |  |       | 44,765   
|                               |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Ending Balance                 |  | $                         | 422,539    |  |                         | $ | 393,900    |                               |  | $ | 263,721               |  |  | $     | 44,765   
|                               |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|December 31, 2018              |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Loans:                         |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Loans
    deemed impaired      |  | $                         | 2,486,210  |  |                         | $ | 1,768,845  |                               |  | $ | 155,660               |  |  | $     | 1,195    
|                               |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Loans
    not deemed impaired  |  |                           | 73,034,640 |  |                         |   | 57,725,539 |                               |  |   | 19,010,547            |  |  |       | 5,403,021
|                               |  |                           |            |  |                         |   |            |                               |  |   |                       |  |  |       |          
|Ending Balance                 |  | $                         | 75,520,850 |  |                         | $ | 59,494,384 |                               |  | $ | 19,166,207            |  |  | $     | 5,404,216



|                               |  |   | MortgageOne-to-Four
                                                                                Family |  |  |   | Mortgage
                                         Commercial |  |  |   | Commercial
                                         and Industrial |  |  |   | Consumer
                                         andHELOC |  |  |   | Total       | 
|------------------------------ |  | - | ---------------------------------------------------------------------------------------------------------- |  |  | - | ------------------------------------------------------------ |  |  | - | ------------------------------------------------------------------ |  |  | - | ---------------------------------------------------------- |  |  | - | ----------- | 
|December 31, 2017              |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Allowance
    for loan losses: |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Loans
    deemed impaired      |  | $ | 23,870                                                                                                     |  |  | $ | -                                                            |  |  | $ | -                                                                  |  |  | $ | -                                                          |  |  | $ | 23,870      | 
|                               |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Loans
    not deemed impaired  |  |   | 489,976                                                                                                    |  |  |   | 383,535                                                      |  |  |   | 80,854                                                             |  |  |   | 63,210                                                     |  |  |   | 1,017,575   | 
|                               |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Ending Balance                 |  | $ | 513,846                                                                                                    |  |  | $ | 383,535                                                      |  |  | $ | 80,854                                                             |  |  | $ | 63,210                                                     |  |  | $ | 1,041,445   | 
|                               |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|December 31, 2017              |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Loans:                         |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Loans
    deemed impaired      |  | $ | 2,508,658                                                                                                  |  |  | $ | 1,122,740                                                    |  |  | $ | 8,251                                                              |  |  | $ | 29,245                                                     |  |  | $ | 3,668,894   | 
|                               |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Loans
    not deemed impaired  |  |   | 73,349,568                                                                                                 |  |  |   | 48,999,318                                                   |  |  |   | 11,447,303                                                         |  |  |   | 3,985,013                                                  |  |  |   | 137,781,202 | 
|                               |  |   |                                                                                                            |  |  |   |                                                              |  |  |   |                                                                    |  |  |   |                                                            |  |  |   |             | 
|Ending Balance                 |  | $ | 75,858,226                                                                                                 |  |  | $ | 50,122,058                                                   |  |  | $ | 11,455,554                                                         |  |  | $ | 4,014,258                                                  |  |  | $ | 141,450,096 | 



23







|7. | ALLOWANCE
    FOR LOAN LOSSES (Continued)
|-- | -----------------------------------------



The
following tables present the recorded investment of impaired loans by class as of December 31, 2018 and 2017, segregated by those
for which a specific allowance was required and those for which a specific allowance was not necessary:



|                            |  | December
    31, 2018   |           |  | December
    31, 2017        |  
|--------------------------- |  | ----------------------- | --------- |  | ---------------------------- | -
|                            |  | Recorded
    Investment |           |  | Unpaid
    Principal Balance |  
|                            |  |                         |           |  |                              |  
|With no allowance recorded: |  |                         |           |  |                              |  
|Mortgage loans:             |  |                         |           |  |                              |  
|One-to-four
    family      |  | $                       | 2,211,525 |  |                              | $
|Commercial                  |  |                         | 1,768,845 |  |                              |  
|Commercial and Industrial   |  |                         | 155,660   |  |                              |  
|Consumer and HELOC          |  |                         | 1,195     |  |                              |  
|                            |  |                         |           |  |                              |  
|With an allowance recorded: |  |                         |           |  |                              |  
|Mortgage loans:             |  |                         |           |  |                              |  
|One-to-four
    family      |  |                         | 274,685   |  |                              |  
|Commercial                  |  |                         | -         |  |                              |  
|Commercial and Industrial   |  |                         | -         |  |                              |  
|Consumer
    and HELOC      |  |                         | -         |  |                              |  
|                            |  |                         |           |  |                              |  
|Total mortgage loans:       |  |                         |           |  |                              |  
|One-to-four
    family      |  |                         | 2,486,210 |  |                              |  
|Commercial                  |  |                         | 1,768,845 |  |                              |  
|Commercial and Industrial   |  |                         | 155,660   |  |                              |  
|Consumer
    and HELOC      |  |                         | 1,195     |  |                              |  
|                            |  |                         |           |  |                              |  
|Total                       |  | $                       | 4,411,910 |  |                              | $



24







|7. | ALLOWANCE
    FOR LOAN LOSSES (Continued)
|-- | -----------------------------------------



The
following tables presents the average recorded investment and interest income recognized for impaired loans by class for the years
ended December 31, 2018 and 2017, segregated by those for which a specific allowance was required and those for which a specific
allowance was not necessary:



|                            |  | Year
    Ended December 31, 2018 |           |  | Year
    Ended December 31, 2017 |  
|--------------------------- |  | -------------------------------- | --------- |  | -------------------------------- | -
|                            |  | Average
    Recorded Investment  |           |  | Interest
    Income Recognized   |  
|                            |  |                                  |           |  |                                  |  
|With no allowance recorded: |  |                                  |           |  |                                  |  
|Mortgage loans:             |  |                                  |           |  |                                  |  
|One-to-four
    family      |  | $                                | 1,978,510 |  |                                  | $
|Commercial                  |  |                                  | 1,335,330 |  |                                  |  
|Commercial and industrial   |  |                                  | 116,534   |  |                                  |  
|Consumer and HELOC          |  |                                  | 30,502    |  |                                  |  
|                            |  |                                  |           |  |                                  |  
|With an allowance recorded: |  |                                  |           |  |                                  |  
|Mortgage loans:             |  |                                  |           |  |                                  |  
|One-to-four
    family      |  |                                  | 356,259   |  |                                  |  
|Commercial                  |  |                                  | -         |  |                                  |  
|Commercial and industrial   |  |                                  | -         |  |                                  |  
|Consumer
    and HELOC      |  |                                  | -         |  |                                  |  
|                            |  |                                  |           |  |                                  |  
|Total mortgage loans:       |  |                                  |           |  |                                  |  
|One-to-four
    family      |  |                                  | 2,334,769 |  |                                  |  
|Commercial                  |  |                                  | 1,335,330 |  |                                  |  
|Commercial and industrial   |  |                                  | 116,534   |  |                                  |  
|Consumer
    and HELOC      |  |                                  | 30,502    |  |                                  |  
|                            |  |                                  |           |  |                                  |  
|Total                       |  | $                                | 3,817,135 |  |                                  | $



25







|7. | ALLOWANCE
    FOR LOAN LOSSES (Continued)
|-- | -----------------------------------------



Credit
Quality Information



Aging
Analysis of Past-Due Loans by Class



Management
further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a recorded payment is
past due. The following tables present the classes of the loan portfolio summarized by the aging categories:



|                          |  | December
    31, 2018   |        
|------------------------- |  | ----------------------- | -------
|                          |  | 30-59
    Days Past Due |        
|                          |  |                         |        
|Mortgage loans:           |  |                         |        
|One-to-four
    family    |  | $                       | 305,412
|Commercial                |  |                         | -      
|Commercial and industrial |  |                         | -      
|Consumer
    and HELOC    |  |                         | -      
|Total                     |  | $                       | 305,412



|                          |  | December
    31, 2017  |          
|------------------------- |  | ---------------------- | ---------
|                          |  | 30-59
    Days PastDue |          
|                          |  |                        |          
|Mortgage loans:           |  |                        |          
|One-to-four
    family    |  | $                      | 982,168  
|Commercial                |  |                        | 656,640  
|Commercial and industrial |  |                        | 301,783  
|Consumer
    and HELOC    |  |                        | 662      
|Total                     |  | $                      | 1,941,253



The
following table presents the loans on nonaccrual status, by class:



|                          |  | December
    31, |           |  | December
    31, |  
|------------------------- |  | ---------------- | --------- |  | ---------------- | -
|                          |  | 2018             |           |  | 2017             |  
|                          |  |                  |           |  |                  |  
|Mortgage loans:           |  |                  |           |  |                  |  
|One-to-four
    family    |  | $                | 2,302,267 |  |                  | $
|Commercial                |  |                  | 1,094,376 |  |                  |  
|Commercial and industrial |  |                  | 155,660   |  |                  |  
|Consumer
    and HELOC    |  |                  | 1,195     |  |                  |  
|Total                     |  | $                | 3,553,498 |  |                  | $



26







|7. | ALLOWANCE
    FOR LOAN LOSSES (Continued)
|-- | -----------------------------------------



Credit
Quality Information



The
Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt
such as: current financial information, historical payment experience, credit documentation, public information, and current economic
trends, among other factors. The Bank analyzes commercial loans individually by classifying the loans as to their credit risk.
The Bank uses a seven grade internal loan rating system for commercial



| | ● | Loans
    rated 1, 2, 3, 4 and 5: Loans in these categories are considered “pass” rated loans with low to average risk.                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                             
| | ● | Loans
    rated 6: Loans in this category are considered “special mention.” These loans have a potential weakness that
    deserves management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment
    prospects for the loan or of the institution’s credit position at some future date.
| |   |                                                                                                                                                                                                                                                                                                                                             
| | ● | Loans
    rated 7: Loans in this category are considered “substandard.” These loans have a well-defined weakness based
    on objective evidence that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility
    that the Bank will sustain some loss if the deficiencies are not corrected.     
| |   |                                                                                                                                                                                                                                                                                                                                             
| | ● | Loans
    rated 8:Loans in this category are considered “doubtful” and have all the weaknesses inherent in a loan rated
    7. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing
    circumstances.                                                                
| |   |                                                                                                                                                                                                                                                                                                                                             
| | ● | Loans
    rated 9: Loans in this category are considered “loss” and are considered to be uncollectible or of such value
    that continuance as an asset is not warranted.                                                                                                                                                                  



The
risk category of loans by class of loans is as follows:



|                      |  | December
    31, 2018 |            |  | December
    31, 2017 |  
|--------------------- |  | --------------------- | ---------- |  | --------------------- | -
|                      |  | Mortgage              |            |  | Commercial and        |  
|                      |  | Commercial            |            |  | Industrial            |  
|                      |  |                       |            |  |                       |  
|Loans rated
    1 - 5 |  | $                     | 57,773,482 |  |                       | $
|Loans rated 6         |  |                       | -          |  |                       |  
|Loans
    rated 7     |  |                       | 1,720,902  |  |                       |  
|Total                 |  | $                     | 59,494,384 |  |                       | $



There
were no loans classified as doubtful or loss at December 31, 2018 or 2017.



27







|7. | ALLOWANCE
    FOR LOAN LOSSES (Continued)
|-- | -----------------------------------------



For
one-to-four family mortgage and consumer loans, the Bank evaluates credit quality based on whether the loan is considered to be
performing or nonperforming. Loans are generally considered to be nonperforming when they are placed on nonaccrual or become 90
days past due. The following table presents the balances of loans by classes of the loan portfolio based on payment performance:



|              |  | December
    31, 2018          |            |  | December
    31, 2017 |  
|------------- |  | ------------------------------ | ---------- |  | --------------------- | -
|              |  | Mortgage
    One-to-FourFamily |            |  | Consumer
    andHELOC |  
|              |  |                                |            |  |                       |  
|Performing    |  | $                              | 73,218,583 |  |                       | $
|Nonperforming |  |                                | 2,302,267  |  |                       |  
|Total         |  | $                              | 75,520,850 |  |                       | $



Troubled
Debt Restructurings



During
the year ended December 31, 2018, the Bank modified three loans as troubled debt restructurings. The three loans were comprised
of one one-to-four family mortgage and two commercial mortgages. The one-to-four family mortgage has a balance of $145,279 as
of December 31, 2018. It had a pre- and post-modification balance of $146,053 and the concession granted by the Bank was an extension
of the maturity date. This loan defaulted in the current reporting period. The two commercial mortgages have an aggregate balance
of $674,468 as of December 31, 2018. They had an aggregate pre- and post-modification balance of $678,263 and the concessions
granted by the Bank, in both cases, was an extended interest-only period Troubled debt restructurings totaled $1.9 million at
December 31, 2018.



During
the year ended December 31, 2017, the Bank modified three loans as troubled debt restructurings. In each of these instances, the
pre- and post-modified balances were the same. The concession granted by the Bank was an extension of the maturity date for all
three of the loans noted. Troubled debt restructurings totaled $1.4 million at December 31, 2017.



As
of December 31, 2018 and 2017, the Bank allocated $1,980 and $23,870, respectively, within the allowance for loan losses to loans
modified as troubled debt restructurings.



28







|8. | PREMISES
    AND EQUIPMENT
|-- | --------------------------



Premises
and equipment are summarized as follows:



|                             |  | December
    31, |           
|---------------------------- |  | ---------------- | ----------
|                             |  | 2018             |           
|                             |  |                  |           
|Land                         |  | $                | 678,000   
|Buildings                    |  |                  | 3,924,853 
|Furniture
    and equipment  |  |                  | 932,353   
|                             |  |                  | 5,535,206 
|Accumulated
    depreciation |  |                  | (1,199,692
|                             |  |                  |           
|Total                        |  | $                | 4,335,514 



Depreciation
expense on premises and equipment was $156,968 and $57,573 for the years ended December 31, 2018 and 2017, respectively.



|9. | DEPOSITS
|-- | --------



Time
deposits include certificates of deposit and other time deposits in denominations of $250,000 or greater aggregating to $13.9
million and $11.6 million at December 31, 2018 and 2017, respectively. The aggregate maturities of time deposits in years 2019
through 2023 and thereafter are as follows at December 31, 2018:



|2019       |  |  | $ | 31,261,950 | 
|---------- |  |  | - | ---------- | 
|2020       |  |  |   | 20,733,210 | 
|2021       |  |  |   | 12,015,017 | 
|2022       |  |  |   | 9,940,388  | 
|2023       |  |  |   | 3,891,657  | 
|Thereafter |  |  |   | 15,276,915 | 
|           |  |  | $ | 93,119,137 | 



Brokered
certificates of deposits amounted to $30.7 million and $21.8 million at December 31, 2018, and 2017, respectively.





29









|10. | BORROWINGS
|--- | ----------



| | Pursuant
    to collateral agreements with the FHLB advances are secured by all stock in the FHLB and a blanket lien on qualifying first
    mortgage loans. The Bank had a maximum borrowing capacity of $91,876,000 as of December 31 2018. The following
    table shows the Bank’s fixed rate FHLB borrowings:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                        |  | December
    31, 2018 |           
|----------------------- |  | --------------------- | ----------
|                        |  |                       |           
|Maturing
    in         |  | Amount                |           
|                        |  |                       |           
|2019                    |  | $                     | 6,250,000 
|2020                    |  |                       | 7,124,500 
|2021                    |  |                       | 8,000,000 
|2025
    and thereafter |  |                       | 10,000,000
|Total                   |  | $                     | 31,374,500



|                        |  | December
    31, 2017 |           
|----------------------- |  | --------------------- | ----------
|                        |  |                       |           
|Maturing
    in         |  | Amount                |           
|                        |  |                       |           
|2018                    |  | $                     | 9,291,700 
|2019                    |  |                       | 2,000,000 
|2020                    |  |                       | 5,124,500 
|2023
    and thereafter |  |                       | 10,000,000
|Total                   |  | $                     | 26,416,200



|11. | INCOME
    TAXES
|--- | ----------------



| | Income
    tax expense is summarized as follows:
| | ------------------------------------------------



|                                         |  | Years
    Ended December 31, |       
|---------------------------------------- |  | ---------------------------- | ------
|                                         |  | 2018                         |       
|                                         |  |                              |       
|Currently
    payable:                   |  |                              |       
|Federal                                  |  | $                            | 32,408
|State                                    |  |                              | 1,317 
|                                         |  |                              | 33,725
|                                         |  |                              |       
|Deferred:                                |  |                              |       
|Change
    in federal corporate tax rate |  |                              | -     
|Federal                                  |  |                              | 29,539
|                                         |  |                              | 29,539
|                                         |  |                              |       
|Total                                    |  | $                            | 63,264



30









|11. | INCOME
    TAXES (Continued)
|--- | ----------------------------



| | The
    components of the net deferred tax asset are as follows:
| | ----------------------------------------------------------------



|                                      |  | December
    31, |         
|------------------------------------- |  | ---------------- | --------
|                                      |  | 2018             |         
|Deferred
    tax assets:              |  |                  |         
|Allowance
    for loan losses         |  | $                | 236,234 
|Premises
    and equipment            |  |                  | -       
|Accrued
    interest payable          |  |                  | 53,652  
|Nonaccrual
    loan interest          |  |                  | 74,936  
|Write-down
    on loans held for sale |  |                  | 41,827  
|Net
    unrealized loss on securities |  |                  | 20,237  
|Gross
    deferred tax assets         |  |                  | 426,886 
|                                      |  |                  |         
|Deferred
    tax liabilities:         |  |                  |         
|Mortgage
    servicing rights         |  |                  | (49,212 
|Premises
    and equipment            |  |                  | (57,754 
|Other                                 |  |                  | (7,297  
|Gross
    deferred tax liabilities    |  |                  | (114,263
|Net
    deferred tax asset            |  | $                | 312,623 





The
Tax Cuts and Jobs Act, enacted on December 22, 2017, lowered the Bank’s federal corporate income tax rate from 34 percent
to 21 percent effective January 1, 2018. As a result, the carrying value of the net deferred tax asset was reduced and income
tax expense increased by $203,152 for the year ended December 31, 2017.



No
valuation allowance was established at December 31, 2018 and 2017, in view of the Bank’s ability to recover taxes paid in
previous years, to execute certain tax strategies and to anticipate future taxable income as evidenced by the Bank’s earnings
potential.



Reconciliations
of the federal statutory rate to the Bank’s effective income tax rate are as follows:



|                                          |  | Years
    Ended December 31, |        
|----------------------------------------- |  | ---------------------------- | -------
|                                          |  | 2018                         |        
|                                          |  |                              |        
|                                          |  | Amount                       |        
|                                          |  |                              |        
|Provision
    of statutory rate           |  | $                            | 93,208 
|Tax-exempt
    interest                   |  |                              | (6,993 
|State
    income tax                      |  |                              | 1,040  
|Change
    in corporate tax rate          |  |                              | -      
|Other,
    net                            |  |                              | (23,991
|Actual
    tax expense and effective rate |  | $                            | 63,264 



| | U.S.
    generally accepted accounting principles prescribe a recognition threshold and a measurement attribute for the financial statement
    recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should
    be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon
    examination by the appropriate taxing authority that would have full
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



31









|11. | INCOME
    TAXES (Continued)
|--- | ----------------------------



| | knowledge
    of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest
    amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                             
| | The
    Company did not have any uncertain tax positions at December 31, 2018 or 2017 which would have required accrual or disclosure.
    The Bank records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years
    ended December 31, 2018 and 2017.
| |                                                                                                                                                                                                                                                                                                             
| | The
    Bank’s income tax returns are subject to review and examination by federal and state taxing authorities. With few exceptions,
    the Bank is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before
    2015.                              



|12. | EMPLOYEE
    STOCK OWNERSHIP PLAN
|--- | ---------------------------------





The
Bank established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction
with the Reorganization effective on January 24, 2018. All employees who are not union employees, leased employees, or non-resident
alien employees are eligible. As of December 31, 2018, all employees were eligible. Eligible employees become 20% vested in
their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years
of service and 100% after six years of service, or earlier, upon death, disability or attainment of normal retirement age.



The
ESOP purchased 88,131 shares of SSB Bancorp common stock, which was funded by a loan from SSB Bancorp. Unreleased ESOP shares
collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity
of the Company. Shares are to be released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment
of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the
Company to the ESOP and earnings thereon.



Compensation
expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding
shares for purposes of computing earnings per share. During the year ended December 31, 2018, the Company recognized $40,992 in
compensation expense.



|13. | REGULATORY
    CAPITAL REQUIREMENTS
|--- | -----------------------------------







The
Bank is subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet
minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that,
if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines
and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative
measure of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting
practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about
components, risk weightings, and other factors.



The
regulations require a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1
capital to risk-weighted assets of 6%, a minimum total capital ratio of 8%, and a minimum leverage ratio of 4% for all banking
organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier
1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions
and discretionary bonuses. The capital conservation buffer and certain deductions from and adjustments to regulatory capital and
risk-weighted assets were phased in over several years. The required minimum conservation buffer was 1.25% as of December 31,
2017, increased to 1.875% on January 1, 2018, and increased to 2.5% on January 1, 2019. Management believes that the Bank’s
capital levels will remain characterized as “well-capitalized” throughout the phase-in periods.





32









|13. | REGULATORY
    CAPITAL REQUIREMENTS (Continued)
|--- | -----------------------------------------------





As
of December 31 2018 the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized
under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum
capital ratios as set forth in the following table. There are no conditions or events since the notification that management believes
have changed the Bank’s category. Management believes that the Bank meets all capital adequacy requirements to which it
is subject. The Bank’s actual capital amounts and ratios are also presented in the table below.





|                                  |  | December
    31, 2018 |            |  | December
    31, 2017 | 
|--------------------------------- |  | --------------------- | ---------- |  | --------------------- | 
|                                  |  | Amount                |            |  | Ratio                 | 
|Common
    Equity Tier 1 capital  |  |                       |            |  |                       | 
|(to
    risk-weighted assets)     |  |                       |            |  |                       | 
|Actual                            |  | $                     | 20,393,710 |  |                       | 
|For
    capital adequacy purposes |  |                       | 6,453,270  |  |                       | 
|To
    be well capitalized        |  |                       | 9,321,390  |  |                       | 
|                                  |  |                       |            |  |                       | 
|Tier
    1 capital                |  |                       |            |  |                       | 
|(to
    risk-weighted assets)     |  |                       |            |  |                       | 
|Actual                            |  | $                     | 20,393,710 |  |                       | 
|For
    capital adequacy purposes |  |                       | 8,604,360  |  |                       | 
|To
    be well capitalized        |  |                       | 11,472,480 |  |                       | 
|                                  |  |                       |            |  |                       | 
|Total
    capital                 |  |                       |            |  |                       | 
|(to
    risk-weighted assets)     |  |                       |            |  |                       | 
|Actual                            |  | $                     | 21,518,635 |  |                       | 
|For
    capital adequacy purposes |  |                       | 11,472,480 |  |                       | 
|To
    be well capitalized        |  |                       | 14,340,600 |  |                       | 
|                                  |  |                       |            |  |                       | 
|Tier
    1 capital                |  |                       |            |  |                       | 
|(to
    average assets)           |  |                       |            |  |                       | 
|Actual                            |  | $                     | 20,393,710 |  |                       | 
|For
    capital adequacy purposes |  |                       | 7,036,287  |  |                       | 
|To
    be well capitalized        |  |                       | 8,795,358  |  |                       | 
|                                  |  |                       |            |  |                       | 



33







|14. | EMPLOYEE
    BENEFIT PLANS
|--- | --------------------------





The
Bank has a 401(k) plan that covers substantially all employees. The plan provides for employer-matching contributions on employee
contributions of up to 3 percent of compensation, plus 50 percent matching up to the next 2 percent of compensation. The Bank
paid required employer-matching contributions of $52,608 and $37,686 for the years ended December 31, 2018 and 2017, respectively.







|15. | COMMITMENTS
|--- | -----------



| | In
    the normal course of business, the Bank makes various commitments that are not reflected in the Bank’s financial statements.
    The Bank offers such products to enable its customers to meet their financing objectives. These instruments involve, to varying
    degrees, elements of credit and interest rate risk in excess of the amount recognized on the balance sheets. The Bank’s
    exposure to credit loss in the event of nonperformance by the other parties to the financial instruments is represented by
    the contractual amounts as disclosed. The Bank minimizes its exposure to credit loss under these commitments by subjecting
    them to credit approval, review procedures and collateral requirements as deemed necessary.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Off-balance
    sheet commitments consisted of the following:
| | -------------------------------------------------------------



|                                  |  | December
    31, |           
|--------------------------------- |  | ---------------- | ----------
|                                  |  | 2018             |           
|Commitments
    to extend credit  |  | $                | 2,736,500 
|Construction
    unadvanced funds |  |                  | 3,711,319 
|Unused
    lines of credit        |  |                  | 8,186,512 
|                                  |  |                  |           
|                                  |  | $                | 14,634,331





Commitments
to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the loan
agreement. These commitments consisted primarily of mortgage loan commitments. The Bank uses the same credit policies in making
loan commitments and conditional obligations as it does for on-balance sheet instruments. The Bank evaluates each customer’s
creditworthiness on a case-by-case basis. The amount of collateral obtained, as deemed necessary, is based upon management’s
credit evaluation in compliance with the Bank’s lending policy guidelines.



The
Bank incurred $2,736 and $69,488 in rent expense in 2018 and 2017, respectively, which is included in occupancy expense on the
statements of net income. The decrease is due to the lease of 8150 Perry Highway ending in January 2018.



In
August 2017, the Bank entered into employment agreements with three executives that provide for a base salary and certain other
benefits. The initial terms of the agreements are for three years with annual renewals thereafter. In the event of the executive’s
termination without cause, as defined, the executive will receive a lump sum cash payment equal to the amount remaining under
the contract. Additional benefits are payable upon a change in control, as defined.



34







|16. | FAIR
    VALUE MEASUREMENTS
|--- | ---------------------------



| | The
    following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized
    in measuring assets and liabilities at fair value. The three broad pricing levels are as follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                        
| | Level
    I:                                                                                                                                                                                                                           
| |                                                                                                                                                                                                                                        
| | Level
    II:                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                        
| | Level
    III:                                                                                                                                                                                                                         



| | This
    hierarchy requires the use of observable market data, when available.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | Fair
    values for securities are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing,
    which is a mathematical technique that is widely used in the industry 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. Fair values of securities determined by quoted prices in active markets, when available, are classified as Level
    I. At December 31, 2018 and 2017, fair value measurements were obtained from a third-party pricing service and not adjusted
    by management. Transfers are recognized at the end of the reporting period, as applicable.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | The
    following tables present the assets reported on the balance sheets at their fair value by level within the fair value hierarchy.
    Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value
    measurement. No liabilities were reported at fair value on a recurring basis.                                                                                                                                                                                                                                                                                                                                                                                                                



|                                                                |  | December
    31, 2018 |        
|--------------------------------------------------------------- |  | --------------------- | -------
|                                                                |  | Level
    I           |        
|Fair
    value measurements on a recurring basis:               |  |                       |        
|Mortgage-backed
    securities in government-sponsored entities |  | $                     | -      
|Obligations
    of state and political subdivisions             |  |                       | -      
|Corporate
    bonds                                             |  |                       | -      
|U.S.
    treasury securities                                    |  |                       | 192,324
|Mortgage
    servicing rights                                   |  |                       | -      
|Impaired
    loans with reserve                                 |  |                       | -      



|                                                                |  | December
    31, 2017 |                                                 
|--------------------------------------------------------------- |  | --------------------- | ------------------------------------------------
|                                                                |  |                       | Level
                                         I
|Fair
    value measurements on a recurring basis:               |  |                       |                                                 
|Mortgage-backed
    securities in government-sponsored entities |  | $                     | -                                               
|Obligations
    of state and political subdivisions             |  |                       | -                                               
|Corporate
    bonds                                             |  |                       | -                                               
|U.S.
    treasury securities                                    |  |                       | 195,316                                         
|Mortgage
    servicing rights                                   |  |                       | -                                               
|Impaired
    loans with reserve                                 |  |                       | -                                               



35









|16. | FAIR
    VALUE MEASUREMENTS (Continued)
|--- | ---------------------------------------



|                             |  | December
    31, 2018 |  
|---------------------------- |  | --------------------- | -
|                             |  | Level
    I           |  
|Fair
    value measurements  |  |                       |  
|on
    a nonrecurring basis: |  |                       |  
|Other
    real estate owned  |  | $                     | -



|                             |  | December
    31, 2017 |                                                 
|---------------------------- |  | --------------------- | ------------------------------------------------
|                             |  |                       | Level
                                         I
|Fair
    value measurements  |  |                       |                                                 
|on
    a nonrecurring basis: |  |                       |                                                 
|Other
    real estate owned  |  | $                     | -                                               



Loans
Held For Sale



Fair
values are estimated based on the discounted value of contractual cash flows adjusted for current market inputs including interest
rates and prepayment speeds, as well as adjustments for the credit quality of the borrowers.



Impaired
Loans



Certain
collateral dependent impaired loans have been adjusted to fair value based on the loan’s collateral. Fair value is generally
determined based upon independent third-party appraisals of the properties, along with management’s assumptions in various
factors, such as selling costs and discounts for time since last appraised.



Other
Real Estate Owned



Other
real estate owned (OREO) is measured at fair value, less estimated cost to sell at the date of foreclosure, establishing a new
cost basis. Subsequent to foreclosure, valuations are periodically performed by management. The assets are carried at fair value,
less estimated cost to sell. Income and expense from operations and changes in valuation allowance are included in other noninterest
expense.



The
following tables present information related to the assets measured on a nonrecurring basis on the balance sheets at their fair
value as of December 31, 2018 and 2017, respectively, by level within the fair value hierarchy. No liabilities were measured at
fair value on a nonrecurring basis.



36









|16. | FAIR
    VALUE MEASUREMENTS (Continued)
|--- | ---------------------------------------



The
following table provides the significant unobservable inputs used in the fair value measurement process for items valued using
Level III techniques at December 31, 2018 and 2017:



|                                |  | Fair
    Value at December 31, |         |  |                          |                             | Valuation               |                                   | Range
    (Weighted | 
|------------------------------- |  | ------------------------------ | ------- |  | ------------------------ | --------------------------- | ----------------------- | --------------------------------- | ------------------- | 
|                                |  | 2018                           |         |  | Valuation
    Techniques |                             | Unobservable
    Inputs |                                   | Average)            | 
|                                |  |                                |         |  |                          |                             |                         |                                   |                     | 
|Other
    real estate owned     |  | $                              | 138,100 |  |                          | Appraised collateral values |                         | Discount for time since appraisal |                     | 
|                                |  |                                |         |  |                          |                             |                         |                                   |                     | 
|                                |  |                                |         |  |                          |                             |                         | Selling costs                     |                     | 
|                                |  |                                |         |  |                          |                             |                         |                                   |                     | 
|Impaired
    loans with reserve |  |                                | 246,549 |  |                          | Discounted cash flows       |                         | Discount for evaluation           |                     | 
|                                |  |                                |         |  |                          |                             |                         |                                   |                     | 
|                                |  |                                |         |  |                          |                             |                         | Selling
    costs                 |                     | 
|                                |  |                                |         |  |                          |                             |                         |                                   |                     | 
|Mortgage
    servicing rights   |  |                                | 234,344 |  |                          | Discounted cash flows       |                         | Loan prepayment speeds            |                     | 
|                                |  |                                |         |  |                          |                             |                         |                                   |                     | 



|                                |  | Fair
    Value at |         |  |                          |                             |                         |                                   | Range     | 
|------------------------------- |  | ----------------- | ------- |  | ------------------------ | --------------------------- | ----------------------- | --------------------------------- | --------- | 
|                                |  | December
    31,  |         |  |                          |                             | Valuation               |                                   | (Weighted | 
|                                |  | 2017              |         |  | Valuation
    Techniques |                             | Unobservable
    Inputs |                                   | Average)  | 
|                                |  |                   |         |  |                          |                             |                         |                                   |           | 
|Other real estate owned         |  | $                 | 59,932  |  |                          | Appraised collateral values |                         | Discount for time since appraisal |           | 
|                                |  |                   |         |  |                          |                             |                         |                                   |           | 
|                                |  |                   |         |  |                          |                             |                         | Selling costs                     |           | 
|                                |  |                   |         |  |                          |                             |                         |                                   |           | 
|Impaired
    loans with reserve |  |                   | 112,139 |  |                          | Discounted cash flows       |                         | Discount for evaluation           |           | 
|                                |  |                   |         |  |                          |                             |                         |                                   |           | 
|                                |  |                   |         |  |                          |                             |                         | Selling
    costs                 |           | 
|                                |  |                   |         |  |                          |                             |                         |                                   |           | 
|Mortgage
    servicing rights   |  |                   | 231,977 |  |                          | Discounted
    cash flows   |                         | Loan prepayment speeds            |           | 
|                                |  |                   |         |  |                          |                             |                         |                                   |           | 



37







| | The
                                         estimated fair values of the Bank’s financial instruments are as follows:
| | ----------------------------------------------------------------------------------------------------------------------







|                                |  | December
    31, 2018 |            
|------------------------------- |  | --------------------- | -----------
|                                |  | Carrying
    Value    |            
|                                |  |                       |            
|Financial
    assets:           |  |                       |            
|Cash
    and cash equivalents   |  | $                     | 9,034,070  
|Certificates
    of deposit     |  |                       | 846,000    
|Investment
    securities:      |  |                       |            
|Available
    for sale          |  |                       | 9,068,101  
|Held
    to maturity            |  |                       | 6,394      
|Loans,
    net                  |  |                       | 158,529,657
|Accrued
    interest receivable |  |                       | 639,474    
|FHLB
    Stock                  |  |                       | 2,651,400  
|                                |  |                       |            
|Financial
    liabilities:      |  |                       |            
|Deposits                        |  |                       | 136,108,766
|FHLB
    advances               |  |                       | 31,374,500 
|Accrued
    interest payable    |  |                       | 255,486    





|                                |  | December
    31, 2017 |            
|------------------------------- |  | --------------------- | -----------
|                                |  | Carrying
    Value    |            
|                                |  |                       |            
|Financial
    assets:           |  |                       |            
|Cash
    and cash equivalents   |  | $                     | 16,478,066 
|Certificates
    of deposit     |  |                       | 943,000    
|Investment
    securities:      |  |                       |            
|Available
    for sale          |  |                       | 2,616,350  
|Held
    to maturity            |  |                       | 9,797      
|Loans,
    net                  |  |                       | 140,574,537
|Accrued
    interest receivable |  |                       | 476,417    
|FHLB
    Stock                  |  |                       | 2,162,600  
|                                |  |                       |            
|Financial
    liabilities:      |  |                       |            
|Deposits                        |  |                       | 132,430,024
|FHLB
    advances               |  |                       | 26,416,200 
|Accrued
    interest payable    |  |                       | 206,597    









| | Financial
    instruments are defined as cash, evidence of an ownership interest in an entity, or a contract which 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.



38









|17. | FAIR
    VALUE OF FINANCIAL INSTRUMENTS
|--- | ---------------------------------------



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 formulas or simulation modeling. Since many of these assumptions result from judgments
made by management based upon estimates which 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 the assumptions on which the
estimated fair values are based may have a significant impact on the resulting estimated fair values.



Since
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 Bank.



Cash
and Cash Equivalents, Accrued Interest Receivable, FHLB Stock, and Accrued Interest Payable



The
fair value is equal to the current carrying value.



Certificates
of Deposit



The
fair values of certificates of deposit 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.



Securities



Fair
values for securities are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing,
which is a mathematical technique that is widely used in the industry 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. Fair values of securities determined by quoted prices in active markets, when available, are classified as Level I.





Loans
Held For Sale



Fair
values are estimated using current market inputs including interest rates and prepayment speeds, as well as adjustments for the
credit quality of the borrowers.







Loans,
Net





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. Certain collateral dependent impaired loans have been adjusted to fair value
based on the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the
properties, along with management’s assumptions in various factors, such as selling costs and discounts for time since last
appraised.



FHLB
Advances



The
fair value of FHLB advances is 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.



Deposits



The
fair values of certificates of deposit 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 deposit
accounts are valued at the amount payable on demand as of year-end.



39







|17. | FAIR
    VALUE OF FINANCIAL INSTRUMENTS (Continued)
|--- | ---------------------------------------------------



Commitments



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 Note
15.



|18. | ACCUMULATED
    OTHER COMPREHENSIVE INCOME (LOSS)
|--- | -------------------------------------------------



The
following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax:



|                                                                                             |  | Net
    Unrealized Gain (Loss) |        
|-------------------------------------------------------------------------------------------- |  | ------------------------------ | -------
|                                                                                             |  | on
    Securities              |        
|                                                                                             |  | Year
    ended December 31,    |        
|                                                                                             |  | 2018                           |        
|Accumulated
    other comprehensive income (loss), beginning of period                       |  | $                              | (23,487
|Other
    comprehensive income (loss) on securities before reclassification, net of tax      |  |                                | (51,136
|Amounts
    reclassified from accumulated other comprehensive income (loss), net of tax      |  |                                | -      
|Net
    other comprehensive income (loss)                                                    |  |                                | (51,136
|Reclassification
    of certain income tax effects from accumulated other comprehensive loss |  |                                |        
|Accumulated
    other comprehensive income (loss), end of period                             |  | $                              | (74,623



|19. | LEGAL
    PROCEEDINGS
|--- | ---------------------



The
Bank is involved in certain claims and legal actions arising in the ordinary course of business. The outcome of these claims and
actions is not presently determinable; however, the opinion of the Bank’s management, after consulting legal counsel, the
ultimate disposition of these matters will not have a material adverse effect on the financial statements.



40









|20. | EARNINGS
    PER SHARE
|--- | ----------------------



Earnings
per common share for the year ended December 31, 2018 are presented in the following table:





|                                                |  | Year
    ended        |          
|----------------------------------------------- |  | --------------------- | ---------
|                                                |  | December
    31, 2018 |          
|Net
    Income                                  |  | $                     | 380,416  
|                                                |  |                       |          
|Shares
    outstanding for basic EPS:           |  |                       |          
|Average
    shares outstanding                  |  |                       | 2,248,250
|Less:
    Average unearned ESOP shares          |  |                       | 85,928   
|                                                |  |                       | 2,162,322
|Additional
    dilutive shares                  |  |                       | -        
|                                                |  |                       |          
|Shares
    oustanding for basic and diluted EPS |  |                       | 2,162,322
|                                                |  |                       |          
|Basic
    and diluted income per share          |  | $                     | 0.18     



|21. | SUBSEQUENT
    EVENTS
|--- | ---------------------



The
Company has assessed events occurring subsequent to December 31, 2018, through March 29, 2019, for potential recognition
and disclosure in the financial statements. No events have occurred that would require adjustment to, or disclosure in, the financial
statements which were available to be issued on March 29, 2019.





41







PART IV





|ITEM 15. | Exhibits and Financial Statement Schedules
|-------- | ------------------------------------------





|31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                           
|32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                           















SIGNATURES



Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act
of 1934, the Registrant has duly caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                       | SSB BANCORP, INC.
|---------------------- | -----------------
|                       |                  
|Date:
    May 21, 2019 | By:              
|                       |                  
|                       |                  
|                       |