Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | Standard AVB Financial Corp. | |
Entity Central Index Key | 0001492915 | |
Trading Symbol | STND | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,686,940 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash on hand and due from banks | $ 3,275 | $ 3,371 |
Interest-earning deposits in other institutions | 26,002 | 12,836 |
Cash and Cash Equivalents | 29,277 | 16,207 |
Investment securities available for sale, at fair value | 69,730 | 66,169 |
Equity securities, at fair value | 2,880 | 2,725 |
Mortgage-backed securities available for sale, at fair value | 92,883 | 81,794 |
Certificate of deposit | 249 | 249 |
Federal Home Loan Bank and other restricted stock, at cost | 7,665 | 7,900 |
Loans receivable, net of allowance for loan losses of $4,743 and $4,414 | 724,254 | 728,982 |
Loans held for sale | 96 | |
Foreclosed real estate | 459 | 486 |
Office properties and equipment, net | 7,715 | 7,794 |
Bank-owned life insurance | 23,238 | 22,572 |
Goodwill | 25,836 | 25,836 |
Core deposit intangible | 2,026 | 2,508 |
Accrued interest receivable and other assets | 5,180 | 8,574 |
TOTAL ASSETS | 991,488 | 971,796 |
Deposits: | ||
Demand, savings and club accounts | 491,758 | 471,177 |
Certificate accounts | 245,205 | 246,697 |
Total Deposits | 736,963 | 717,874 |
Federal Home Loan Bank short-term borrowings | 4,524 | |
Long-term borrowings | 105,738 | 104,963 |
Securities sold under agreements to repurchase | 2,925 | 2,137 |
Advance deposits by borrowers for taxes and insurance | 33 | 45 |
Accrued interest payable and other liabilities | 4,546 | 4,363 |
TOTAL LIABILITIES | 850,205 | 833,906 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 4,696,107 and 4,812,991 shares outstanding, respectively | 47 | 48 |
Additional paid-in-capital | 72,327 | 75,571 |
Retained earnings | 68,963 | 65,301 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,571) | (1,686) |
Accumulated other comprehensive gain (loss) | 1,517 | (1,344) |
TOTAL STOCKHOLDERS' EQUITY | 141,283 | 137,890 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 991,488 | $ 971,796 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated Statements of Financial Condition | ||
Allowance for loan losses, loans receivable (in dollars) | $ 4,743 | $ 4,414 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 4,696,107 | 4,812,991 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 8,239 | $ 8,007 | $ 24,426 | $ 23,919 |
Mortgage-backed securities | 572 | 504 | 1,690 | 1,477 |
Investments: | ||||
Taxable | 112 | 101 | 345 | 308 |
Tax-exempt | 402 | 343 | 1,170 | 1,057 |
Federal Home Loan Bank and other restricted stock | 147 | 134 | 476 | 455 |
Interest-earning deposits and federal funds sold | 90 | 112 | 268 | 218 |
Total Interest and Dividend Income | 9,562 | 9,201 | 28,375 | 27,434 |
Interest Expense | ||||
Deposits | 1,818 | 1,335 | 5,202 | 3,456 |
Federal Home Loan Bank short-term borrowings | 7 | 44 | 226 | |
Long-term borrowings | 570 | 599 | 1,640 | 1,688 |
Securities sold under agreements to repurchase | 3 | 2 | 13 | 6 |
Total Interest Expense | 2,398 | 1,936 | 6,899 | 5,376 |
Net Interest Income | 7,164 | 7,265 | 21,476 | 22,058 |
Provision for Loan Losses | 254 | 223 | 544 | 398 |
Net Interest Income after Provision for Loan Losses | 6,910 | 7,042 | 20,932 | 21,660 |
Noninterest Income | ||||
Earnings on bank-owned life insurance | 136 | 134 | 401 | 398 |
Net losses on sales of securities | (1) | (17) | ||
Net gains on sales of equities | 331 | 394 | ||
Net equity securities fair value adjustment gains (losses) | 120 | (218) | 155 | (13) |
Net loan sale gains | 78 | 20 | 160 | 47 |
Other income | 187 | 17 | 266 | 60 |
Total Noninterest Income | 1,487 | 1,161 | 3,719 | 3,546 |
Noninterest Expenses | ||||
Compensation and employee benefits | 3,161 | 2,956 | 9,595 | 9,351 |
Data processing | 177 | 164 | 530 | 472 |
Premises and occupancy costs | 565 | 645 | 1,834 | 1,983 |
Automatic teller machine expense | 160 | 126 | 445 | 380 |
Federal deposit insurance | (32) | 72 | 104 | 220 |
Core deposit amortization | 144 | 193 | 482 | 643 |
Other operating expenses | 1,051 | 1,154 | 3,093 | 3,396 |
Total Noninterest Expenses | 5,226 | 5,310 | 16,083 | 16,445 |
Income before Income Tax Expense | 3,171 | 2,893 | 8,568 | 8,761 |
Income Tax Expense | ||||
Federal | 509 | 357 | 1,351 | 1,370 |
State | 198 | 156 | 486 | 357 |
Total Income Tax Expense | 707 | 513 | 1,837 | 1,727 |
Net Income | $ 2,464 | $ 2,380 | $ 6,731 | $ 7,034 |
Earnings Per Share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.51 | $ 1.45 | $ 1.52 |
Diluted earnings per common share (in dollars per share) | 0.53 | 0.50 | 1.42 | 1.48 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 |
Basic weighted average shares outstanding (in shares) | 4,573,856 | 4,635,129 | 4,628,308 | 4,628,983 |
Diluted weighted average shares outstanding (in shares) | 4,665,801 | 4,759,026 | 4,725,186 | 4,752,487 |
Service charges | ||||
Noninterest Income | ||||
Fees and commissions | $ 794 | $ 736 | $ 2,197 | $ 2,208 |
Investment management fees | ||||
Noninterest Income | ||||
Fees and commissions | $ 172 | $ 141 | $ 541 | $ 469 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 2,464 | $ 2,380 | $ 6,731 | $ 7,034 |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on securities available for sale | 324 | (918) | 3,613 | (3,772) |
Tax effect | (68) | 193 | (759) | 791 |
Reclassification adjustment for security losses realized in income | 1 | 17 | ||
Tax effect | (4) | |||
Change in pension obligation for defined benefit plan | 2 | 3 | 7 | 29 |
Tax effect | (1) | (1) | (6) | |
Total other comprehensive income (loss) | 258 | (723) | 2,861 | (2,945) |
Total Comprehensive Income | $ 2,722 | $ 1,657 | $ 9,592 | $ 4,089 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2017 | $ 48 | $ 75,063 | $ 60,172 | $ (1,839) | $ 528 | $ 133,972 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 7,034 | 7,034 | ||||
Other comprehensive loss | (2,945) | (2,945) | ||||
Change in accounting principle for adoption of ASU 2016-01 | 416 | (416) | ||||
Stock repurchases | (346) | (346) | ||||
Cash dividends | (3,180) | (3,180) | ||||
Stock options exercised | 448 | 448 | ||||
Compensation expense on ESOP | 216 | 115 | 331 | |||
Balance at Sep. 30, 2018 | 48 | 75,381 | 64,442 | (1,724) | (2,833) | 135,314 |
Balance at Jun. 30, 2018 | 48 | 75,275 | 63,124 | (1,763) | (2,110) | 134,574 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 2,380 | 2,380 | ||||
Other comprehensive loss | (723) | (723) | ||||
Stock repurchases | (206) | (206) | ||||
Cash dividends | (1,062) | (1,062) | ||||
Stock options exercised | 238 | 238 | ||||
Compensation expense on ESOP | 74 | 39 | 113 | |||
Balance at Sep. 30, 2018 | 48 | 75,381 | 64,442 | (1,724) | (2,833) | 135,314 |
Balance at Dec. 31, 2018 | 48 | 75,571 | 65,301 | (1,686) | (1,344) | 137,890 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 6,731 | 6,731 | ||||
Other comprehensive loss | 2,861 | 2,861 | ||||
Stock repurchases | (1) | (3,700) | (3,701) | |||
Cash dividends | (3,069) | (3,069) | ||||
Stock options exercised | 206 | 206 | ||||
Compensation expense on stock awards | 58 | 58 | ||||
Compensation expense on ESOP | 192 | 115 | 307 | |||
Balance at Sep. 30, 2019 | 47 | 72,327 | 68,963 | (1,571) | 1,517 | 141,283 |
Balance at Jun. 30, 2019 | 48 | 74,340 | 67,508 | (1,609) | 1,259 | 141,546 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 2,464 | 2,464 | ||||
Other comprehensive loss | 258 | 258 | ||||
Stock repurchases | (1) | (2,096) | (2,097) | |||
Cash dividends | (1,009) | (1,009) | ||||
Compensation expense on stock awards | 23 | 23 | ||||
Compensation expense on ESOP | 60 | 38 | 98 | |||
Balance at Sep. 30, 2019 | $ 47 | $ 72,327 | $ 68,963 | $ (1,571) | $ 1,517 | $ 141,283 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statement of Changes in Stockholders' Equity | ||||
Stock repurchases, shares | 76,039 | 6,064 | 133,096 | 10,739 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 |
Number of stock options exercised | 13,910 | 11,665 | 24,794 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 6,731 | $ 7,034 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,401 | 990 |
Provision for loan losses | 544 | 398 |
Amortization of core deposit intangible | 482 | 643 |
Net loss on sale of securities available for sale | 1 | 17 |
Net gain on sale of equity securities | (394) | |
Net gain on sale of office properties and equipment | (29) | |
Net equity securities fair value adjustment (gains) losses | (155) | 13 |
Origination of loans held for sale | (9,070) | (4,193) |
Proceeds from sale of loans held for sale | 9,230 | 4,240 |
Net loan sale gains | (160) | (47) |
Compensation expense on ESOP | 307 | 331 |
Compensation expense on stock awards | 58 | |
Deferred income taxes | (126) | (258) |
Increase in accrued interest receivable | (78) | (208) |
Earnings on bank-owned life insurance | (401) | (398) |
(Decrease) increase in accrued interest payable | (134) | 56 |
Other, net | 3,085 | 1,108 |
Net Cash Provided by Operating Activities | 11,686 | 9,332 |
Cash Flows Used In Investing Activities | ||
Net decrease in loans | 4,122 | 18,585 |
Purchases of investment securities | (10,776) | (4,937) |
Purchases of Equity Securities | (554) | |
Purchases of mortgage-backed securities | (24,720) | (25,946) |
Proceeds from maturities of certificates of deposits | 250 | |
Proceeds from maturities/principal repayments/calls of investment securities | 2,535 | 115 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 13,752 | 8,661 |
Proceeds from sales of investment securities | 6,328 | 4,830 |
Proceeds from sales of equity securities | 1,900 | |
Proceeds from sales of mortgage-backed securities | 1,286 | |
Purchase of Federal Home Loan Bank stock | (2,969) | (3,219) |
Redemption of Federal Home Loan Bank stock | 3,204 | 4,703 |
Proceeds from sales of foreclosed real estate | 45 | |
Purchase of bank-owned life insurance | (265) | |
Proceeds from sales of office properties and equipment | 997 | |
Net additions of office properties and equipment | (527) | (274) |
Net Cash Provided by (Used in) Investing Activities | (6,988) | 4,114 |
Cash Flows From Financing Activities | ||
Net increase in demand, savings and club accounts | 20,581 | 2,074 |
Net (decrease) increase in certificate accounts | (1,492) | 28,444 |
Net increase (decrease) in securities sold under agreements to repurchase | 788 | (134) |
Repayments of Federal Home Loan Bank short-term borrowings | (108,719) | (165,490) |
Proceeds from Federal Home Loan Bank short-term borrowing | 104,195 | 138,469 |
Repayments of Federal Home Loan Bank advances | (25,308) | (24,600) |
Proceeds from Federal Home Loan Bank advances | 25,208 | 30,000 |
Lease liabilities payments | (305) | |
Net decrease in advance deposits by borrowers for taxes and insurance | (12) | (775) |
Exercise of stock options | 206 | 448 |
Dividends paid | (3,069) | (3,180) |
Stock repurchases | (3,701) | (346) |
Net Cash Provided by Financing Activities | 8,372 | 4,910 |
Net Increase in Cash and Cash Equivalents | 13,070 | 18,356 |
Cash and Cash Equivalents - Beginning | 16,207 | 16,265 |
Cash and Cash Equivalents - Ending | 29,277 | 34,621 |
Supplementary Cash Flows Information: | ||
Interest paid | 7,033 | 5,320 |
Income taxes paid | 2,061 | 1,194 |
Investment securities purchased not settled | $ 596 | |
Right-of-use asset | (1,132) | |
Lease liability | 1,158 | |
Prepaid lease payments | $ (26) |
Consolidation
Consolidation | 9 Months Ended |
Sep. 30, 2019 | |
Consolidation | |
Consolidation | (1) Consolidation The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | (2) Basis of Presentation The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2018 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019. The results for the three and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future interim period. Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings per Share | |
Earnings per Share | (3) Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2019 and September 30, 2018 (dollars in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income available to common stockholders $ 2,464 $ 2,380 $ 6,731 $ 7,034 Basic EPS: Weighted average shares outstanding 4,573,856 4,635,129 4,628,308 4,628,983 Basic EPS $ 0.54 $ 0.51 $ 1.45 $ 1.52 Diluted EPS: Weighted average shares outstanding 4,573,856 4,635,129 4,628,308 4,628,983 Dilutive effect of common stock equivalents 91,945 123,897 96,878 123,504 Total diluted weighted average shares outstanding 4,665,801 4,759,026 4,725,186 4,752,487 Diluted EPS $ 0.53 $ 0.50 $ 1.42 $ 1.48 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (4) Recent Accounting Pronouncements Accounting Standards Adopted in 2019 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. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements, which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 10 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required. Accounting Standards Pending Adoption 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 annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. 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. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. The Company 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 consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20) . This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) . This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to 1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and 2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other public business entities, the effective date is for fiscal years beginning after December 15, 2020, and for all other entities, the effective date is for fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. Topic 815, Derivatives and Hedging amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. For entities that have adopted the amendments in Update 2017-12, the effective date is as of the beginning of the first annual period beginning after the issuance of this Update. Topic 825, Financial Instruments amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. This Update is not expected to have a significant impact on the Company’s financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Available-for-sale securities other than mortgage backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Securities | (5) Investment Securities Investment securities available for sale at September 30, 2019 and December 31, 2018 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2019: U.S. government and agency obligations due: Within 1 year $ 3,486 $ 4 $ — $ 3,490 Beyond 1 year but within 5 years 3,963 26 — 3,989 Beyond 5 year but within 10 years 946 44 — 990 Corporate bonds due: Beyond 1 year but within 5 years 2,475 106 — 2,581 Municipal obligations due: Within 1 year 260 2 — 262 Beyond 1 year but within 5 years 6,076 266 — 6,342 Beyond 5 years but within 10 years 18,946 484 — 19,430 Beyond 10 years 31,905 743 (2) 32,646 $ 68,057 $ 1,675 $ (2) $ 69,730 December 31, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,428 $ — $ (81) $ 7,347 Beyond 5 year but within 10 years 940 — (17) 923 Corporate bonds due: Within 1 year 1,758 — (15) 1,743 Beyond 1 year but within 5 years 1,472 2 (10) 1,464 Beyond 5 years but within 10 years 996 — (2) 994 Municipal obligations due: Beyond 1 year but within 5 years 6,658 298 — 6,956 Beyond 5 years but within 10 years 22,384 132 (81) 22,435 Beyond 10 years 24,504 82 (279) 24,307 $ 66,140 $ 514 $ (485) $ 66,169 For the three months ended September 30, 2019, there were no sales of investment securities. For the nine months ended September 30, 2019, proceeds from the sales of investment securities were $6.3 million, with total gains of $7,000 offset by total losses of $7,000 during the period. There were no sales of investment securities for the three months ended September 30, 2018. For the nine months ended September 30, 2018, losses on sales of investment securities were $17,000 and proceeds from such sales were $4.8 million. Investment securities with a carrying value of $11.7 million and $11.6 million were pledged to secure repurchase agreements and public funds accounts at September 30, 2019 and December 31, 2018, respectively. The following table shows the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2019: Municipal obligations 1,001 (2) — — 1,001 (2) Total $ 1,001 $ (2) $ — $ — $ 1,001 $ (2) December 31, 2018: U.S. government and agency obligations $ — $ — $ 8,270 $ (98) $ 8,270 $ (98) Corporate bonds 1,490 (12) 1,743 (15) 3,233 (27) Municipal obligations 10,049 (55) 11,730 (305) 21,779 (360) Total $ 11,539 $ (67) $ 21,743 $ (418) $ 33,282 $ (485) At September 30, 2019, the Company held 2 investment securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses. |
Equity Securities
Equity Securities | 9 Months Ended |
Sep. 30, 2019 | |
Equity Securities | |
Equity Securities | (6) Equity Securities The following table presents the net gains and losses on equity investments recognized in earnings during the three and nine months ended September 30, 2019 and September 30, 2018, and the portion of unrealized gains and losses for those periods that relate to equity investments held (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net equity securities fair value adjustment gains (losses) $ 120 $ (218) $ 155 $ (13) Net gains realized on the sale of equity securities during the period — 331 — 394 Gains recognized on equity securities during the period $ 120 $ 113 $ 155 $ 381 There were no sales of equity securities during the three or nine months ended September 30, 2019. During the three months ended September 30, 2018, gains on sales of equity securities were $331,000 and proceeds from such sales were $1.6 million. For the nine months ended September 30, 2018, gains on sales of equity securities were $394,000 and proceeds from such sales were $1.9 million. |
Mortgage-Backed Securities
Mortgage-Backed Securities | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage-backed securities available for sale | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-Backed Securities | (7) Mortgage-Backed Securities Mortgage-backed securities available for sale at September 30, 2019 and December 31, 2018 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2019: Government pass-throughs: Ginnie Mae $ 18,531 $ 194 $ (52) $ 18,673 Fannie Mae 22,502 549 — 23,051 Freddie Mac 13,346 105 (25) 13,426 Private pass-throughs 23,111 — (291) 22,820 Collateralized mortgage obligations 14,848 119 (54) 14,913 $ 92,338 $ 967 $ (422) $ 92,883 December 31, 2018: Government pass-throughs: Ginnie Mae $ 19,213 $ 1 $ (324) $ 18,890 Fannie Mae 13,952 7 (339) 13,620 Freddie Mac 12,662 — (252) 12,410 Private pass-throughs 25,064 — (349) 24,715 Collateralized mortgage obligations 12,328 11 (180) 12,159 $ 83,219 $ 19 $ (1,444) $ 81,794 Private pass-throughs include Small Business Administration (SBA) securities that are each an aggregation of SBA guaranteed portions of loans made by SBA lenders under section 7(a) of the Small Business Act. The guaranty is backed by the full faith and credit of the United States. For the three months ended September 30, 2019, there were no sales of mortgage-backed securities. For the nine months ended September 30, 2019, losses on sales of mortgage-backed securities were $1,000 and proceeds from such sales were $1.3 million. There were no sales of mortgage-backed securities during the three or nine months ended September 30, 2018. The amortized cost and fair value of mortgage-backed securities at September 30, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to repay obligations with or without prepayment penalties (dollars in thousands): Amortized Cost Fair Value Due after one year through five years $ 704 $ 702 Due after five years through ten years 6,384 6,368 Due after ten years 85,250 85,813 Total Mortgage-Backed Securities $ 92,338 $ 92,883 The following table shows the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019: Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ — $ — $ 3,900 $ (52) $ 3,900 $ (52) Freddie Mac 2,489 (25) — — 2,489 (25) Private pass-throughs 2,115 (11) 20,478 (280) 22,593 (291) Collateralized mortgage obligations 2,021 (7) 3,947 (47) 5,968 (54) Total $ 6,625 $ (43) $ 28,325 $ (379) $ 34,950 $ (422) December 31, 2018: Government pass-throughs: Ginnie Mae $ 4,850 $ (26) $ 13,794 $ (298) $ 18,644 $ (324) Fannie Mae 403 (2) 12,152 (337) 12,555 (339) Freddie Mac 680 (24) 11,699 (228) 12,379 (252) Private pass-throughs 14,436 (134) 9,359 (215) 23,795 (349) Collateralized mortgage obligations 4,091 (40) 6,048 (140) 10,139 (180) Total $ 24,460 $ (226) $ 53,052 $ (1,218) $ 77,512 $ (1,444) At September 30, 2019, the Company held 34 mortgage-backed securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized loss to be temporary impairment loss. Mortgage-backed securities with a carrying value of $15.1 million and $10.4 million were pledged to secure repurchase agreements and public funds accounts at September 30, 2019 and December 31, 2018, respectively. |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Loans Receivable and Related Allowance for Loan Losses | |
Loans Receivable and Related Allowance for Loan Losses | (8) Loans Receivable and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio, and the related allowance for loan losses, as of September 30, 2019 and December 31, 2018 (dollars in thousands): Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total September 30, 2019: Collectively evaluated for impairment $ 242,000 $ 321,956 $ 114,517 $ 49,952 $ 572 $ 728,997 Individually evaluated for impairment — — — — — — Total loans before allowance for loan losses $ 242,000 $ 321,956 $ 114,517 $ 49,952 $ 572 $ 728,997 December 31, 2018: Collectively evaluated for impairment $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 Individually evaluated for impairment — — — — — — Total loans before allowance for loan losses $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 Total loans at September 30, 2019 and December 31, 2018 were net of deferred loan fees of $251,000 and $226,000, respectively. The Company’s primary business activity is with customers located within its local trade area. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in its immediate trade area. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The three segments are: real estate, commercial business and other. The real estate loan segment is further disaggregated into three classes. One-to-four family residential mortgages (including residential construction loans) includes loans to individuals secured by residential properties having maturities up to 30 years. Commercial real estate consists of loans to commercial borrowers secured by commercial or residential real estate. The repayment of commercial real estate loans is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Home equity loans and lines of credit include loans having maturities up to 20 years. The commercial business loan segment consists of loans to finance the activities of commercial business customers. The other loan segment consists primarily of consumer loans and overdraft lines of credit. The portfolio segments utilized in the calculation of the allowance for loan losses are disaggregated at the same level that management uses to monitor risk in the portfolio. Therefore the portfolio segments and classes of loans are the same. There are various risks associated with lending to each portfolio segment. One-to-four family residential mortgage loans are typically longer-term loans which generally entail greater interest rate risk than consumer and commercial loans. Under certain economic conditions, housing values may decline, which may increase the risk that the collateral values are insufficient. Commercial real estate loans generally present a higher level of risk than loans secured by residences. This greater risk is due to several factors including but not limited to concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty in monitoring these types of loans. Furthermore, the repayment of commercial real estate loans is typically dependent upon successful operation of the related real estate project. If the cash flow from the project is reduced by such occurrences as leases not being obtained, renewed or not entirely fulfilled, the borrower’s ability to repay the loan may be impaired. Commercial business loans are primarily secured by business assets, inventories and accounts receivable which present collateral risk. The other loan segment generally has higher interest rates and shorter terms than one-to-four family residential mortgage loans, however, they can have additional credit risk due to the type of collateral securing the loan. Management evaluates individual loans in all of the commercial segments for possible impairment if the relationship is greater than $200,000, and the loan is in nonaccrual status, risk-rated Substandard or Doubtful, greater than 90 days past due or represents a troubled debt restructuring ("TDR"). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. 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. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a TDR. Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Consistent with accounting and regulatory guidance, the Company recognizes a TDR when the Bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Company's objective in offering a TDR is to increase the probability of repayment of the borrower's loan. To be considered a TDR, the borrower must be experiencing financial difficulties and the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would not otherwise be considered. The Company did not modify any loans as TDRs during the three or nine month periods ended September 30, 2019 or 2018 nor did it have any TDRs within the preceding year where a concession had been made that then defaulted during the three or nine month periods ending September 30, 2019 or 2018. There were no impaired loans at September 30, 2019 or December 31, 2018. For both the three and nine months ended September 30, 2019, there was no recorded investment in impaired loans compared to an average recorded investment of $295,000 for both the three and nine months ended September 30, 2018. For both the three and nine months ended September 30, 2019 and September 30, 2018, there was no interest income recognized on impaired loans. Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first five categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently performing but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the collection of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any loan that has a specific allocation of the allowance for loan losses and is in the process of liquidation of the collateral is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolio at origination. Commercial relationships are periodically reviewed internally for credit deterioration or improvement in order to confirm that the relationship is appropriately risk rated. The Audit Committee of the Company also engages an external consultant to conduct loan reviews. The scope of the annual external engagement, which is performed through semi-annual loan reviews, includes reviewing approximately the top 50 to 60 loan relationships, all watchlist loans greater than $100,000, all commercial Reg O loans, and a random sampling of new loan originations between $200,000 and $500,000 during the year. Status reports are provided to management for loans classified as Substandard on a quarterly basis, which results in a proactive approach to resolution. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass rating and the criticized ratings of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of September 30, 2019 and December 31, 2018 (dollars in thousands): Special Pass Mention Substandard Doubtful Total September 30, 2019: Real estate loans: One-to-four-family residential and construction $ 240,316 $ — $ 1,684 $ — $ 242,000 Commercial real estate 318,923 2,699 334 — 321,956 Home equity loans and lines of credit 114,141 64 312 — 114,517 Commercial business loans 49,701 216 35 — 49,952 Other loans 563 — 9 — 572 Total $ 723,644 $ 2,979 $ 2,374 $ — $ 728,997 December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 252,186 $ — $ 1,727 $ — $ 253,913 Commercial real estate 303,161 4,851 763 — 308,775 Home equity loans and lines of credit 123,053 62 258 — 123,373 Commercial business loans 45,902 232 62 — 46,196 Other loans 1,120 — 19 — 1,139 Total $ 725,422 $ 5,145 $ 2,829 $ — $ 733,396 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as all nonaccrual loans. At September 30 2019, there were 16 loans on non-accrual status that were less than 90 days past due totaling $694,000. The following table presents the segments of the loan portfolio summarized by the past due status of the loans still accruing and nonaccrual loans as of September 30, 2019 and December 31, 2018 (dollars in thousands): 30‑59 Days 60‑89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans September 30, 2019: Real estate loans: One-to-four-family residential and construction $ 239,962 $ 25 $ 329 $ 1,684 $ — $ 242,000 Commercial real estate 321,517 105 — 334 — 321,956 Home equity loans and lines of credit 113,837 368 — 312 — 114,517 Commercial business loans 49,869 47 — 36 — 49,952 Other loans 562 1 — 9 — 572 Total $ 725,747 $ 546 $ 329 $ 2,375 $ — $ 728,997 December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 250,691 $ 1,341 $ 154 $ 1,727 $ — $ 253,913 Commercial real estate 307,740 374 — 661 — 308,775 Home equity loans and lines of credit 122,929 163 23 258 — 123,373 Commercial business loans 45,434 690 10 62 — 46,196 Other loans 1,111 3 3 19 3 1,139 Total $ 727,905 $ 2,571 $ 190 $ 2,727 $ 3 $ 733,396 An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310‑10‑35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450‑20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. Management tracks the historical net charge-off activity for the loan segments which may be adjusted for qualitative factors. Pass rated credits are segregated from criticized credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors are evaluated using information obtained from internal, regulatory, and governmental sources such as national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, depth and ability of management; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Management utilizes an internally developed spreadsheet to track and apply the various components of the allowance. During the three and nine months ended September 30, 2019, there was an increase in the provision for the Commercial Real Estate loan class primarily due to charge-offs incurred during the nine month period as well as growth in the loan balances during the periods included in the allowance calculation for that loan class. During the three and nine months ended September 30, 2019, there was a decrease in the provision for the One-to-four family Residential and Construction loan class primarily due to a decline in the loan balances included in the allowance calculation for that loan class as well as a decrease in the qualitative factors. The Home Equity loans and Lines of Credit loan class increased primarily due to the charge-offs incurred during the nine month period. During the three months ended September 30, 2019 there was a decrease in the provision for the Commercial Business loan class due to a decline in the balances included in the allowance calculation for that loan class. During the nine months ended September 30, 2019 there was an increase in the provision for the Commercial Business loan class due to both an increase in the balance of loans included in the allowance calculation for that loan class as well as an increase in the qualitative factors for the periods. The following tables summarize the activity in the primary segments of the ALL for the three and nine months ended September 30, 2019 and September 30, 2018 as well as the allowance required for loans individually and collectively evaluated for impairment as of September 30, 2019 and December 31, 2018 (dollars in thousands): Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Three Months Ended : Balance June 30, 2019 $ 851 $ 2,836 $ 295 $ 510 $ 2 $ 4,494 Charge-offs (1) — — — (8) (9) Recoveries — — 3 — 1 4 Provision (56) 330 3 (30) 7 254 Balance September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Balance at June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 Charge-offs — (41) — — (4) (45) Recoveries — 1 — — — 1 Provision (144) 353 4 5 5 223 Balance at September 30, 2018 $ 1,039 $ 2,743 $ 389 $ 364 $ 4 $ 4,539 Nine Months Ended : Balance December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Charge-offs (1) (121) (59) — (41) (222) Recoveries — — 6 — 1 7 Provision (256) 526 42 194 38 544 Balance September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs — (50) — (11) (6) (67) Recoveries 69 1 11 — — 81 Provision (414) 789 (22) 42 3 398 Balance at September 30, 2018 $ 1,039 $ 2,743 $ 389 $ 364 $ 4 $ 4,539 Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 794 3,166 301 480 2 4,743 Balance at September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 1,051 2,761 312 286 4 4,414 Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date. In addition, federal regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make changes to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to Management. Based on Management’s comprehensive analysis of the loan portfolio, they believe the current level of the allowance for loan losses is adequate. |
Foreclosed Assets Held For Sale
Foreclosed Assets Held For Sale | 9 Months Ended |
Sep. 30, 2019 | |
Foreclosed Assets Held For Sale | |
Foreclosed Assets Held For Sale | (9) Foreclosed Assets Held For Sale Foreclosed assets acquired in the settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate on the Consolidated Statement of Financial Condition. As of September 30, 2019 and December 31, 2018, foreclosed real estate totaled $459,000 and $486,000, respectively. As of September 30, 2019, the $459,000 included three residential properties and one commercial real estate property. As of September 30, 2019, the Company had initiated formal foreclosure procedures on $1.3 million of loans, including $1.0 million in one-to-four family residential loans, $168,000 in commercial real estate loans, and $151,000 in home equity loans. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | (10) Leases The Company currently has four financing lease agreements for branch offices. In conjunction with the implementation of ASU 2016-02, the Company recognized right-of-use assets totaling $1.1 million and lease liabilities totaling $1.2 million related to those financing leases. One of the leases includes an option to extend which was recognized as part of the Company’s right-of-use asset and corresponding lease liability for that property because the Company believes that it is more likely than not to exercise the extension option. The right-of-use assets are included with office properties and equipment while lease liabilities are included in long-term borrowings on the September 30, 2019 Consolidated Statements of Financial Condition. Amortization of right-of-use assets is included in premises and occupancy costs while interest expense on the lease liabilities is included in the interest expense on long-term borrowings on the Consolidated Statements of Income. The following table presents the financing lease costs during the three and nine months ended September 30, 2019 (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Financing lease costs Amortization of right-of-use asset $ 94 $ 283 Interest expense 7 22 Total financing lease costs $ 101 $ 305 The discount rates utilized to determine the interest expense portion of the lease liability were obtained by utilizing FHLB advance rates for a similar term borrowings as of January 1, 2019. The following table presents the weighted-average remaining term and discount rates for financing leases outstanding as of September 30, 2019: Financing Weighted-average term (years) 4.7 Weighted-average discount rate 2.80 % The following table presents the undiscounted cash flows due related to financing leases as of September 30, 2019, along with a reconciliation to the discounted amount recorded on the September 30, 2019 Consolidated Statements of Financial Condition (dollars in thousands): Financing Undiscounted cash flows due within: 2019 $ 102 2020 292 2021 124 2022 102 2023 102 2024 and thereafter 212 Total undiscounted cash flows 934 Impact of present value discount (59) Amount reported on balance sheet $ 875 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Stock Based Compensation | |
Stock Based Compensation | (11) Stock Based Compensation The Company currently has two stock plans that allow for the issuance of stock based compensation, the Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) and the Standard Financial Corp. 2012 Equity Incentive Plan (the “2012 Plan”). On February 26, 2019, 1,820 shares of restricted stock were awarded to directors out of the 2011 Plan. The awards vest quarterly through December 31, 2019 and the related compensation expense is being recognized straight line over the 11 month vesting period. On March 12, 2019, 2,727 shares of restricted stock were awarded to employees out of the 2011 Plan. The awards vest over 34 months and the related compensation expense is being recognized straight line over the vesting period. At September 30, 2019, there were 72,588 and 101,144 shares available to be issued under the 2011 Plan and the 2012 Plan, respectively. For both the three months and nine months ended September 30, 2019 and September 30, 2018, there was no recorded compensation expense related to stock options. As of September 30, 2019, all outstanding stock options were fully vested and there was no unrecognized compensation cost. The following table summarizes transactions regarding the options under the Plans: Weighted Weighted Average Average Exercise Remaining Options Price Contractual Term Outstanding at December 31, 2018 266,695 $ Granted — — Exercised (11,665) 17.64 Forfeited — — Outstanding at September 30, 2019 255,030 $ 17.09 2.67 Exercisable at September 30, 2019 255,030 $ 17.09 For the three months ended September 30, 2019, there was $23,000 of compensation expense recorded on restricted stock grants. For the nine months ended September 30, 2019, there was $58,000 of compensation expense recorded on restricted stock grants. For the three and nine months ended September 30, 2018, there was no recorded compensation expense on restricted stock. As of September 30, 2019, there was $81,000 of unrecognized compensation expense that will be recognized over the remaining vesting periods. The following table summarizes transactions regarding the restricted stock under the Plans: Weighted Average Number of Grant Date Restricted Price Per Shares Share Non-vested shares at December 31, 2018 250 $ 31.10 Granted 4,547 29.13 Vested 1,490 29.83 Forfeited — — Non-vested shares at September 30, 2019 3,307 $ 28.97 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2019 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (12) Employee Stock Ownership Plan The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010. Eligible employees begin to participate in the plan after one year of service and 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. In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank. 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 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. Compensation expense related to the ESOP of $98,000 and $113,000 was recognized during the three months ended September 30, 2019 and 2018, respectively. Compensation expense related to the ESOP of $307,000 and $331,000 was recognized during the nine months ended September 30, 2019 and 2018, respectively. Dividends on unallocated shares are not treated as ordinary dividends and are instead used to repay the ESOP loan and recorded as compensation expense. As of September 30, 2019, the ESOP held a total of 253,590 shares of the Company’s stock . Of the 253,590 shares, there were 159,003 unallocated as of September 30, 2019 with a fair market value of $4.3 million. |
Pension Information
Pension Information | 9 Months Ended |
Sep. 30, 2019 | |
Pension Information | |
Pension Information | (13) Pension Information The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. Effective August 1, 2005, the annual benefit provided to employees under this defined benefit pension plan was frozen by the Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained. The net periodic pension cost for the three and nine months ended September 30, 2019 and September 30, 2018 are as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Cost $ 31 $ 33 $ 93 $ 99 Expected return on plan assets (32) (41) (96) (123) Amortization of net loss 2 3 6 9 Settlement obligation — — — 30 Net periodic pension cost $ 1 $ (5) $ 3 $ 15 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | (14) Fair Value of Assets and Liabilities Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis. Assets Measured at Fair Value on a Recurring Basis Investment, Mortgage-Backed and Equity Securities Fair values of investment and mortgage-backed securities were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 securities are comprised of equity securities. As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements. Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs. As of September 30, 2019 and December 31, 2018, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The following table presents the assets measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands): September 30, 2019: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ — $ 8,469 $ — $ 8,469 Corporate bonds — 2,581 — 2,581 Municipal obligations — 58,680 — 58,680 Total investment securities available for sale — 69,730 — 69,730 Equity securities 2,880 — — 2,880 Mortgage-backed securities available for sale — 92,883 — 92,883 Total recurring fair value measurements $ 2,880 $ 162,613 $ — $ 165,493 December 31, 2018: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,270 $ — $ 8,270 Corporate bonds — 4,201 — 4,201 Municipal obligations — 53,698 — 53,698 Total investment securities available for sale — 66,169 — 66,169 Equity securities 2,725 — — 2,725 Mortgage-backed securities available for sale — 81,794 — 81,794 Total recurring fair value measurements $ 2,725 $ 147,963 $ — $ 150,688 Assets Measured at Fair Value on a Nonrecurring Basis The following table presents the assets measured at fair value on a nonrecurring basis as of September 30, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands): September 30, 2019: Level 1 Level 2 Level 3 Total Foreclosed real estate $ — $ — $ 459 $ 459 Total nonrecurring fair value measurements $ — $ — $ 459 $ 459 December 31, 2018: Foreclosed real estate $ — $ — $ 486 $ 486 Total nonrecurring fair value measurements $ — $ — $ 486 $ 486 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses level 3 inputs to determine fair value (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements September 30, December 31, Valuation Unobservable 2019 2018 Techniques Input Range Foreclosed real estate $ 459 $ 486 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% (1) (2) The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2019 and December 31, 2018 (dollars in thousands): Carrying Estimated Value Fair Value Level 1 Level 2 Level 3 September 30, 2019: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,275 $ 3,275 $ 3,275 $ — $ — Interest-earning deposits in other institutions (1) 26,002 26,002 26,002 — — Investment securities (2) 69,730 69,730 — 69,730 — Equity Securities (3) 2,880 2,880 2,880 — — Mortgage-backed securities (2) 92,883 92,883 — 92,883 — Certificate of deposit (1) 249 249 249 — — Federal Home Loan Bank and other restricted stocks (1) 7,665 7,665 7,665 — — Loans receivable (1) 724,254 733,965 — — 733,965 Bank-owned life insurance (1) 23,238 23,238 23,238 — — Accrued interest receivable (1) 2,901 2,901 2,901 — — Financial Instruments - Liabilities: Demand, savings and club accounts (1) $ 491,758 $ 491,758 $ 491,758 $ — $ — Certificate deposit accounts (1) 245,205 248,324 — — 248,324 Long-term borrowings (1) 105,738 106,850 — — 106,850 Securities sold under agreements to repurchase (1) 2,925 2,925 2,925 — — Accrued interest payable (1) 1,020 1,020 1,020 — — December 31, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,371 $ 3,371 $ 3,371 $ — $ — Interest-earning deposits in other institutions (1) 12,836 12,836 12,836 — — Investment securities (2) 66,169 66,169 — 66,169 — Equity Securities (3) 2,725 2,725 2,725 — — Mortgage-backed securities (2) 81,794 81,794 — 81,794 — Certificate of deposit (1) 249 249 249 — — Federal Home Loan Bank and other restricted stocks (1) 7,900 7,900 7,900 — — Loans receivable (1) 728,982 717,491 — — 717,491 Bank-owned life insurance (1) 22,572 22,572 22,572 — — Accrued interest receivable (1) 2,823 2,823 2,823 — — Financial Instruments - Liabilities: Demand, savings and club accounts (1) $ 471,177 $ 471,177 $ 471,177 $ — $ — Certificate deposit accounts (1) 246,697 245,740 — — 245,740 Federal Home Loan Bank short-term borrowings (1) 4,524 4,524 4,524 — — Federal Home Loan Bank advances (1) 104,963 104,345 — — 104,345 Securities sold under agreements to repurchase (1) 2,137 2,137 2,137 — — Accrued interest payable (1) 1,154 1,154 1,154 — — (1) The financial instrument is carried at amortized cost. (2) The financial instrument is carried at fair value through other comprehensive income. (3) The financial instrument is carried at fair value through net income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated Other Comprehensive (Loss) Income | (15) Accumulated Other Comprehensive (Loss) Income The following tables present the significant amounts reclassified out of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2019 and September 30, 2018 (dollars in thousands): Unrealized Gains (Losses) Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2019 $ 1,496 $ (237) $ 1,259 Other comprehensive income before reclassification 256 — 256 Amount reclassified from accumulated other comprehensive income — 2 2 Total other comprehensive income 256 2 258 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Balance as of December 31, 2018 $ (1,103) $ (241) $ (1,344) Other comprehensive income before reclassification 2,854 — 2,854 Amount reclassified from accumulated other comprehensive income 1 6 7 Total other comprehensive income 2,855 6 2,861 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three Months Ended September 30, 2019: Amortization of defined benefit items: Actuarial loss $ 2 Other operating expenses — Income tax expense $ 2 Net of tax Total reclassification for the period $ 2 Net income Nine Months Ended September 30, 2019: Unrealized losses on available for sale securities $ 1 Net losses on sales of securities — Income tax expense $ 1 Net of tax Amortization of defined benefit items: Actuarial loss $ 7 Other operating expenses (1) Income tax expense $ 6 Net of tax Total reclassification for the period $ 7 Net income Unrealized Gains (Losses) Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2018 $ (1,819) $ (291) $ (2,110) Other comprehensive loss before reclassification (725) — (725) Amount reclassified from accumulated other comprehensive loss — 2 2 Total other comprehensive (loss) income (725) 2 (723) Balance as of September 30, 2018 $ (2,544) $ (289) $ (2,833) Balance as of December 31, 2017 $ 840 $ (312) $ 528 Other comprehensive loss before reclassification (2,981) — (2,981) Amount reclassified from accumulated other comprehensive loss 13 23 36 Total other comprehensive (loss) income (2,968) 23 (2,945) Change in accounting principle for adoption of ASU 2016-01 (416) — (416) Balance as of September 30, 2018 $ (2,544) $ (289) $ (2,833) Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended September 30, 2018: Amortization of defined benefit items: Actuarial loss $ 3 Other operating expenses (1) Income tax expense $ 2 Net of tax Total reclassification for the period $ 2 Net income Nine months ended September 30, 2018: Unrealized losses on available for sale securities $ 17 Net loss on sales of securities (4) Income tax expense $ 13 Net of tax Amortization of defined benefit items: Actuarial loss $ 9 Other operating expenses Distribution settlement 20 Other operating expenses (6) Income tax expense $ 23 Net of tax Total reclassification for the period $ 36 Net income |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Revenue Recognition | (16) Revenue Recognition The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2019 and September 30, 2018 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 777 $ 718 $ 2,146 $ 2,155 Investment management fees 172 141 541 469 Noninterest income (in-scope of Topic 606) 949 859 2,687 2,624 Noninterest income (out-of-scope of Topic 606) 538 302 1,032 922 Total noninterest income $ 1,487 $ 1,161 $ 3,719 $ 3,546 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangibles | |
Goodwill and Other Intangibles | (17) Goodwill and Other Intangibles The Company has recorded goodwill associated with mergers totaling $25.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the three or nine months ended September 30, 2019 or September 30, 2018. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The balance of the core deposit intangible at September 30, 2019 was $2.0 million net of $2.1 million of accumulated amortization as of that date. As of September 30, 2019, the remaining current year and estimated future amortization expense for the core deposit intangible was (dollars in thousands): 2019 146 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 2,026 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2018 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019. The results for the three and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future interim period. Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2019 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. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements, which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 10 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required. Accounting Standards Pending Adoption 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 annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. 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. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. The Company 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 consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20) . This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) . This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to 1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and 2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other public business entities, the effective date is for fiscal years beginning after December 15, 2020, and for all other entities, the effective date is for fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. Topic 815, Derivatives and Hedging amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. For entities that have adopted the amendments in Update 2017-12, the effective date is as of the beginning of the first annual period beginning after the issuance of this Update. Topic 825, Financial Instruments amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. This Update is not expected to have a significant impact on the Company’s financial statements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings per Share | |
Schedule of computation of basic and diluted EPS | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income available to common stockholders $ 2,464 $ 2,380 $ 6,731 $ 7,034 Basic EPS: Weighted average shares outstanding 4,573,856 4,635,129 4,628,308 4,628,983 Basic EPS $ 0.54 $ 0.51 $ 1.45 $ 1.52 Diluted EPS: Weighted average shares outstanding 4,573,856 4,635,129 4,628,308 4,628,983 Dilutive effect of common stock equivalents 91,945 123,897 96,878 123,504 Total diluted weighted average shares outstanding 4,665,801 4,759,026 4,725,186 4,752,487 Diluted EPS $ 0.53 $ 0.50 $ 1.42 $ 1.48 |
Investment Securities (Tables)
Investment Securities (Tables) - Available-for-sale securities other than mortgage backed securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Schedule of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2019: U.S. government and agency obligations due: Within 1 year $ 3,486 $ 4 $ — $ 3,490 Beyond 1 year but within 5 years 3,963 26 — 3,989 Beyond 5 year but within 10 years 946 44 — 990 Corporate bonds due: Beyond 1 year but within 5 years 2,475 106 — 2,581 Municipal obligations due: Within 1 year 260 2 — 262 Beyond 1 year but within 5 years 6,076 266 — 6,342 Beyond 5 years but within 10 years 18,946 484 — 19,430 Beyond 10 years 31,905 743 (2) 32,646 $ 68,057 $ 1,675 $ (2) $ 69,730 December 31, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,428 $ — $ (81) $ 7,347 Beyond 5 year but within 10 years 940 — (17) 923 Corporate bonds due: Within 1 year 1,758 — (15) 1,743 Beyond 1 year but within 5 years 1,472 2 (10) 1,464 Beyond 5 years but within 10 years 996 — (2) 994 Municipal obligations due: Beyond 1 year but within 5 years 6,658 298 — 6,956 Beyond 5 years but within 10 years 22,384 132 (81) 22,435 Beyond 10 years 24,504 82 (279) 24,307 $ 66,140 $ 514 $ (485) $ 66,169 |
Schedule of fair value and gross unrealized losses on investment securities and the length of time the securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2019: Municipal obligations 1,001 (2) — — 1,001 (2) Total $ 1,001 $ (2) $ — $ — $ 1,001 $ (2) December 31, 2018: U.S. government and agency obligations $ — $ — $ 8,270 $ (98) $ 8,270 $ (98) Corporate bonds 1,490 (12) 1,743 (15) 3,233 (27) Municipal obligations 10,049 (55) 11,730 (305) 21,779 (360) Total $ 11,539 $ (67) $ 21,743 $ (418) $ 33,282 $ (485) |
Equity Securities (Tables)
Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Securities | |
Schedule of gains and losses on equity investments | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net equity securities fair value adjustment gains (losses) $ 120 $ (218) $ 155 $ (13) Net gains realized on the sale of equity securities during the period — 331 — 394 Gains recognized on equity securities during the period $ 120 $ 113 $ 155 $ 381 |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities available for sale | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2019: Government pass-throughs: Ginnie Mae $ 18,531 $ 194 $ (52) $ 18,673 Fannie Mae 22,502 549 — 23,051 Freddie Mac 13,346 105 (25) 13,426 Private pass-throughs 23,111 — (291) 22,820 Collateralized mortgage obligations 14,848 119 (54) 14,913 $ 92,338 $ 967 $ (422) $ 92,883 December 31, 2018: Government pass-throughs: Ginnie Mae $ 19,213 $ 1 $ (324) $ 18,890 Fannie Mae 13,952 7 (339) 13,620 Freddie Mac 12,662 — (252) 12,410 Private pass-throughs 25,064 — (349) 24,715 Collateralized mortgage obligations 12,328 11 (180) 12,159 $ 83,219 $ 19 $ (1,444) $ 81,794 |
Schedule of contractual maturity | Amortized Cost Fair Value Due after one year through five years $ 704 $ 702 Due after five years through ten years 6,384 6,368 Due after ten years 85,250 85,813 Total Mortgage-Backed Securities $ 92,338 $ 92,883 |
Schedule of fair value and gross unrealized losses on mortgage-backed securities and the length of time the securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019: Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ — $ — $ 3,900 $ (52) $ 3,900 $ (52) Freddie Mac 2,489 (25) — — 2,489 (25) Private pass-throughs 2,115 (11) 20,478 (280) 22,593 (291) Collateralized mortgage obligations 2,021 (7) 3,947 (47) 5,968 (54) Total $ 6,625 $ (43) $ 28,325 $ (379) $ 34,950 $ (422) December 31, 2018: Government pass-throughs: Ginnie Mae $ 4,850 $ (26) $ 13,794 $ (298) $ 18,644 $ (324) Fannie Mae 403 (2) 12,152 (337) 12,555 (339) Freddie Mac 680 (24) 11,699 (228) 12,379 (252) Private pass-throughs 14,436 (134) 9,359 (215) 23,795 (349) Collateralized mortgage obligations 4,091 (40) 6,048 (140) 10,139 (180) Total $ 24,460 $ (226) $ 53,052 $ (1,218) $ 77,512 $ (1,444) |
Loans Receivable and Related _2
Loans Receivable and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans Receivable and Related Allowance for Loan Losses | |
Schedule of loans receivable | Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total September 30, 2019: Collectively evaluated for impairment $ 242,000 $ 321,956 $ 114,517 $ 49,952 $ 572 $ 728,997 Individually evaluated for impairment — — — — — — Total loans before allowance for loan losses $ 242,000 $ 321,956 $ 114,517 $ 49,952 $ 572 $ 728,997 December 31, 2018: Collectively evaluated for impairment $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 Individually evaluated for impairment — — — — — — Total loans before allowance for loan losses $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 |
Schedule of classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system | Special Pass Mention Substandard Doubtful Total September 30, 2019: Real estate loans: One-to-four-family residential and construction $ 240,316 $ — $ 1,684 $ — $ 242,000 Commercial real estate 318,923 2,699 334 — 321,956 Home equity loans and lines of credit 114,141 64 312 — 114,517 Commercial business loans 49,701 216 35 — 49,952 Other loans 563 — 9 — 572 Total $ 723,644 $ 2,979 $ 2,374 $ — $ 728,997 December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 252,186 $ — $ 1,727 $ — $ 253,913 Commercial real estate 303,161 4,851 763 — 308,775 Home equity loans and lines of credit 123,053 62 258 — 123,373 Commercial business loans 45,902 232 62 — 46,196 Other loans 1,120 — 19 — 1,139 Total $ 725,422 $ 5,145 $ 2,829 $ — $ 733,396 |
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | 30‑59 Days 60‑89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans September 30, 2019: Real estate loans: One-to-four-family residential and construction $ 239,962 $ 25 $ 329 $ 1,684 $ — $ 242,000 Commercial real estate 321,517 105 — 334 — 321,956 Home equity loans and lines of credit 113,837 368 — 312 — 114,517 Commercial business loans 49,869 47 — 36 — 49,952 Other loans 562 1 — 9 — 572 Total $ 725,747 $ 546 $ 329 $ 2,375 $ — $ 728,997 December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 250,691 $ 1,341 $ 154 $ 1,727 $ — $ 253,913 Commercial real estate 307,740 374 — 661 — 308,775 Home equity loans and lines of credit 122,929 163 23 258 — 123,373 Commercial business loans 45,434 690 10 62 — 46,196 Other loans 1,111 3 3 19 3 1,139 Total $ 727,905 $ 2,571 $ 190 $ 2,727 $ 3 $ 733,396 |
Schedule of activity in the allowance | Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Three Months Ended : Balance June 30, 2019 $ 851 $ 2,836 $ 295 $ 510 $ 2 $ 4,494 Charge-offs (1) — — — (8) (9) Recoveries — — 3 — 1 4 Provision (56) 330 3 (30) 7 254 Balance September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Balance at June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 Charge-offs — (41) — — (4) (45) Recoveries — 1 — — — 1 Provision (144) 353 4 5 5 223 Balance at September 30, 2018 $ 1,039 $ 2,743 $ 389 $ 364 $ 4 $ 4,539 Nine Months Ended : Balance December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Charge-offs (1) (121) (59) — (41) (222) Recoveries — — 6 — 1 7 Provision (256) 526 42 194 38 544 Balance September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs — (50) — (11) (6) (67) Recoveries 69 1 11 — — 81 Provision (414) 789 (22) 42 3 398 Balance at September 30, 2018 $ 1,039 $ 2,743 $ 389 $ 364 $ 4 $ 4,539 Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 794 3,166 301 480 2 4,743 Balance at September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 1,051 2,761 312 286 4 4,414 Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Schedule of financing lease costs | Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Financing lease costs Amortization of right-of-use asset $ 94 $ 283 Interest expense 7 22 Total financing lease costs $ 101 $ 305 |
Schedule of weighted-average remaining term and discount rates for financing leases outstanding | Financing Weighted-average term (years) 4.7 Weighted-average discount rate 2.80 % |
Schedule of maturities of undiscounted cash flows | Financing Undiscounted cash flows due within: 2019 $ 102 2020 292 2021 124 2022 102 2023 102 2024 and thereafter 212 Total undiscounted cash flows 934 Impact of present value discount (59) Amount reported on balance sheet $ 875 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock Based Compensation | |
Schedule of transactions regarding the options under the plan | Weighted Weighted Average Average Exercise Remaining Options Price Contractual Term Outstanding at December 31, 2018 266,695 $ Granted — — Exercised (11,665) 17.64 Forfeited — — Outstanding at September 30, 2019 255,030 $ 17.09 2.67 Exercisable at September 30, 2019 255,030 $ 17.09 Weighted Average Number of Grant Date Restricted Price Per Shares Share Non-vested shares at December 31, 2018 250 $ 31.10 Granted 4,547 29.13 Vested 1,490 29.83 Forfeited — — Non-vested shares at September 30, 2019 3,307 $ 28.97 |
Pension Information (Tables)
Pension Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Pension Information | |
Schedule of net periodic pension (benefit) cost | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Cost $ 31 $ 33 $ 93 $ 99 Expected return on plan assets (32) (41) (96) (123) Amortization of net loss 2 3 6 9 Settlement obligation — — — 30 Net periodic pension cost $ 1 $ (5) $ 3 $ 15 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value of Assets and Liabilities | |
Schedule of assets measured at fair value on a recurring basis | September 30, 2019: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ — $ 8,469 $ — $ 8,469 Corporate bonds — 2,581 — 2,581 Municipal obligations — 58,680 — 58,680 Total investment securities available for sale — 69,730 — 69,730 Equity securities 2,880 — — 2,880 Mortgage-backed securities available for sale — 92,883 — 92,883 Total recurring fair value measurements $ 2,880 $ 162,613 $ — $ 165,493 December 31, 2018: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,270 $ — $ 8,270 Corporate bonds — 4,201 — 4,201 Municipal obligations — 53,698 — 53,698 Total investment securities available for sale — 66,169 — 66,169 Equity securities 2,725 — — 2,725 Mortgage-backed securities available for sale — 81,794 — 81,794 Total recurring fair value measurements $ 2,725 $ 147,963 $ — $ 150,688 |
Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy | September 30, 2019: Level 1 Level 2 Level 3 Total Foreclosed real estate $ — $ — $ 459 $ 459 Total nonrecurring fair value measurements $ — $ — $ 459 $ 459 December 31, 2018: Foreclosed real estate $ — $ — $ 486 $ 486 Total nonrecurring fair value measurements $ — $ — $ 486 $ 486 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs | Quantitative Information about Level 3 Fair Value Measurements September 30, December 31, Valuation Unobservable 2019 2018 Techniques Input Range Foreclosed real estate $ 459 $ 486 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% (1) (2) |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments | Carrying Estimated Value Fair Value Level 1 Level 2 Level 3 September 30, 2019: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,275 $ 3,275 $ 3,275 $ — $ — Interest-earning deposits in other institutions (1) 26,002 26,002 26,002 — — Investment securities (2) 69,730 69,730 — 69,730 — Equity Securities (3) 2,880 2,880 2,880 — — Mortgage-backed securities (2) 92,883 92,883 — 92,883 — Certificate of deposit (1) 249 249 249 — — Federal Home Loan Bank and other restricted stocks (1) 7,665 7,665 7,665 — — Loans receivable (1) 724,254 733,965 — — 733,965 Bank-owned life insurance (1) 23,238 23,238 23,238 — — Accrued interest receivable (1) 2,901 2,901 2,901 — — Financial Instruments - Liabilities: Demand, savings and club accounts (1) $ 491,758 $ 491,758 $ 491,758 $ — $ — Certificate deposit accounts (1) 245,205 248,324 — — 248,324 Long-term borrowings (1) 105,738 106,850 — — 106,850 Securities sold under agreements to repurchase (1) 2,925 2,925 2,925 — — Accrued interest payable (1) 1,020 1,020 1,020 — — December 31, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,371 $ 3,371 $ 3,371 $ — $ — Interest-earning deposits in other institutions (1) 12,836 12,836 12,836 — — Investment securities (2) 66,169 66,169 — 66,169 — Equity Securities (3) 2,725 2,725 2,725 — — Mortgage-backed securities (2) 81,794 81,794 — 81,794 — Certificate of deposit (1) 249 249 249 — — Federal Home Loan Bank and other restricted stocks (1) 7,900 7,900 7,900 — — Loans receivable (1) 728,982 717,491 — — 717,491 Bank-owned life insurance (1) 22,572 22,572 22,572 — — Accrued interest receivable (1) 2,823 2,823 2,823 — — Financial Instruments - Liabilities: Demand, savings and club accounts (1) $ 471,177 $ 471,177 $ 471,177 $ — $ — Certificate deposit accounts (1) 246,697 245,740 — — 245,740 Federal Home Loan Bank short-term borrowings (1) 4,524 4,524 4,524 — — Federal Home Loan Bank advances (1) 104,963 104,345 — — 104,345 Securities sold under agreements to repurchase (1) 2,137 2,137 2,137 — — Accrued interest payable (1) 1,154 1,154 1,154 — — (1) The financial instrument is carried at amortized cost. (2) The financial instrument is carried at fair value through other comprehensive income. (3) The financial instrument is carried at fair value through net income. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive (Loss) Income | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains (Losses) Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2019 $ 1,496 $ (237) $ 1,259 Other comprehensive income before reclassification 256 — 256 Amount reclassified from accumulated other comprehensive income — 2 2 Total other comprehensive income 256 2 258 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Balance as of December 31, 2018 $ (1,103) $ (241) $ (1,344) Other comprehensive income before reclassification 2,854 — 2,854 Amount reclassified from accumulated other comprehensive income 1 6 7 Total other comprehensive income 2,855 6 2,861 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Unrealized Gains (Losses) Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2018 $ (1,819) $ (291) $ (2,110) Other comprehensive loss before reclassification (725) — (725) Amount reclassified from accumulated other comprehensive loss — 2 2 Total other comprehensive (loss) income (725) 2 (723) Balance as of September 30, 2018 $ (2,544) $ (289) $ (2,833) Balance as of December 31, 2017 $ 840 $ (312) $ 528 Other comprehensive loss before reclassification (2,981) — (2,981) Amount reclassified from accumulated other comprehensive loss 13 23 36 Total other comprehensive (loss) income (2,968) 23 (2,945) Change in accounting principle for adoption of ASU 2016-01 (416) — (416) Balance as of September 30, 2018 $ (2,544) $ (289) $ (2,833) |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three Months Ended September 30, 2019: Amortization of defined benefit items: Actuarial loss $ 2 Other operating expenses — Income tax expense $ 2 Net of tax Total reclassification for the period $ 2 Net income Nine Months Ended September 30, 2019: Unrealized losses on available for sale securities $ 1 Net losses on sales of securities — Income tax expense $ 1 Net of tax Amortization of defined benefit items: Actuarial loss $ 7 Other operating expenses (1) Income tax expense $ 6 Net of tax Total reclassification for the period $ 7 Net income Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended September 30, 2018: Amortization of defined benefit items: Actuarial loss $ 3 Other operating expenses (1) Income tax expense $ 2 Net of tax Total reclassification for the period $ 2 Net income Nine months ended September 30, 2018: Unrealized losses on available for sale securities $ 17 Net loss on sales of securities (4) Income tax expense $ 13 Net of tax Amortization of defined benefit items: Actuarial loss $ 9 Other operating expenses Distribution settlement 20 Other operating expenses (6) Income tax expense $ 23 Net of tax Total reclassification for the period $ 36 Net income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Schedule of noninterest income, segregated by revenue | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 777 $ 718 $ 2,146 $ 2,155 Investment management fees 172 141 541 469 Noninterest income (in-scope of Topic 606) 949 859 2,687 2,624 Noninterest income (out-of-scope of Topic 606) 538 302 1,032 922 Total noninterest income $ 1,487 $ 1,161 $ 3,719 $ 3,546 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangibles | |
Schedule of estimated future amortization expense | 2019 146 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 2,026 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per Share | ||||
Net income available to common stockholders | $ 2,464 | $ 2,380 | $ 6,731 | $ 7,034 |
Basic EPS: | ||||
Weighted average shares outstanding | 4,573,856 | 4,635,129 | 4,628,308 | 4,628,983 |
Basic EPS | $ 0.54 | $ 0.51 | $ 1.45 | $ 1.52 |
Diluted EPS: | ||||
Weighted average shares outstanding | 4,573,856 | 4,635,129 | 4,628,308 | 4,628,983 |
Dilutive effect of common stock equivalents | 91,945 | 123,897 | 96,878 | 123,504 |
Total diluted weighted average shares outstanding | 4,665,801 | 4,759,026 | 4,725,186 | 4,752,487 |
Diluted EPS (in dollars per share) | $ 0.53 | $ 0.50 | $ 1.42 | $ 1.48 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - ASU 2016-02 $ in Millions | Sep. 30, 2019USD ($) |
Finance right-of-use assets | $ 1.1 |
Finance lease liabilities | $ 1.2 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Amortized Cost | $ 68,057 | $ 66,140 |
Gross Unrealized Gains | ||
Gross Unrealized Gains | 1,675 | 514 |
Gross Unrealized Losses | ||
Gross Unrealized Losses | (2) | (485) |
Fair Value | ||
Investment securities available for sale, at fair value | 69,730 | 66,169 |
U.S. government and agency obligations | ||
Amortized Cost | ||
Within 1 year | 3,486 | |
Beyond 1 year but within 5 years | 3,963 | 7,428 |
Beyond 5 years but within 10 years | 946 | 940 |
Gross Unrealized Gains | ||
Within 1 year | 4 | |
Beyond 1 year but within 5 years | 26 | 0 |
Beyond 5 years but within 10 years | 44 | 0 |
Gross Unrealized Losses | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 0 | (81) |
Beyond 5 years but within 10 years | 0 | (17) |
Fair Value | ||
Within 1 year | 3,490 | |
Beyond 1 year but within 5 years | 3,989 | 7,347 |
Beyond 5 years but within 10 years | 990 | 923 |
Corporate bonds | ||
Amortized Cost | ||
Within 1 year | 1,758 | |
Beyond 1 year but within 5 years | 2,475 | 1,472 |
Beyond 5 years but within 10 years | 996 | |
Gross Unrealized Gains | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 106 | 2 |
Beyond 5 years but within 10 years | 0 | |
Gross Unrealized Losses | ||
Within 1 year | (15) | |
Beyond 1 year but within 5 years | 0 | (10) |
Beyond 5 years but within 10 years | (2) | |
Fair Value | ||
Within 1 year | 1,743 | |
Beyond 1 year but within 5 years | 2,581 | 1,464 |
Beyond 5 years but within 10 years | 994 | |
Municipal obligations | ||
Amortized Cost | ||
Within 1 year | 260 | |
Beyond 1 year but within 5 years | 6,076 | 6,658 |
Beyond 5 years but within 10 years | 18,946 | 22,384 |
Beyond 10 years | 31,905 | 24,504 |
Gross Unrealized Gains | ||
Within 1 year | 2 | |
Beyond 1 year but within 5 years | 266 | 298 |
Beyond 5 years but within 10 years | 484 | 132 |
Beyond 10 years | 743 | 82 |
Gross Unrealized Losses | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 0 | 0 |
Beyond 5 years but within 10 years | 0 | (81) |
Beyond 10 years | (2) | (279) |
Fair Value | ||
Within 1 year | 262 | |
Beyond 1 year but within 5 years | 6,342 | 6,956 |
Beyond 5 years but within 10 years | 19,430 | 22,435 |
Beyond 10 years | $ 32,646 | $ 24,307 |
Investment Securities - Fair va
Investment Securities - Fair value and gross unrealized losses on available for sale debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities other than mortgage backed securities | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 1,001 | $ 11,539 |
Less than 12 Months, Gross Unrealized Losses | (2) | (67) |
12 Months or More, Fair Value | 0 | 21,743 |
12 Months or More, Gross Unrealized Losses | 0 | (418) |
Total, Fair Value | 1,001 | 33,282 |
Total, Gross Unrealized Losses | (2) | (485) |
U.S. government and agency obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
12 Months or More, Fair Value | 8,270 | |
12 Months or More, Gross Unrealized Losses | (98) | |
Total, Fair Value | 8,270 | |
Total, Gross Unrealized Losses | (98) | |
Corporate bonds | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 1,490 | |
Less than 12 Months, Gross Unrealized Losses | (12) | |
12 Months or More, Fair Value | 1,743 | |
12 Months or More, Gross Unrealized Losses | (15) | |
Total, Fair Value | 3,233 | |
Total, Gross Unrealized Losses | (27) | |
Municipal obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 1,001 | 10,049 |
Less than 12 Months, Gross Unrealized Losses | (2) | (55) |
12 Months or More, Fair Value | 0 | 11,730 |
12 Months or More, Gross Unrealized Losses | 0 | (305) |
Total, Fair Value | 1,001 | 21,779 |
Total, Gross Unrealized Losses | $ (2) | $ (360) |
Investment Securities - Additio
Investment Securities - Additional information (Details) | 9 Months Ended | ||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Losses on sales of investment securities | $ 7,000 | $ 17,000 | |
Proceeds from sales of investment securities | 6,328,000 | $ 4,830,000 | |
Gains on sales of investment securities | 7,000 | ||
Available-for-sale securities other than mortgage backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities pledged to secure repurchase agreements and public funds accounts | $ 11,700,000 | $ 11,600,000 | |
Number of securities held in an unrealized loss position | security | 2 |
Equity Securities (Details)
Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity Securities | ||||
Net equity securities fair value adjustment gains (losses) | $ 120 | $ (218) | $ 155 | $ (13) |
Net gains realized on the sale of equity securities during the period | 0 | 331 | 0 | 394 |
Gains recognized on equity securities during the period | $ 120 | $ 113 | $ 155 | $ 381 |
Equity Securities - Additional
Equity Securities - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Equity Securities | ||
Net gains on sales of equities | $ 331 | $ 394 |
Proceeds from sale of equity | $ 1,600 | $ 1,900 |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Mortgage-backed securities | ||
Amortized Cost | $ 68,057 | $ 66,140 |
Gross Unrealized Gains | 1,675 | 514 |
Gross Unrealized Losses | (2) | (485) |
Fair Value | 69,730 | 66,169 |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Amortized Cost | 92,338 | 83,219 |
Gross Unrealized Gains | 967 | 19 |
Gross Unrealized Losses | (422) | (1,444) |
Fair Value | 92,883 | 81,794 |
Government pass-throughs, Ginnie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 18,531 | 19,213 |
Gross Unrealized Gains | 194 | 1 |
Gross Unrealized Losses | (52) | (324) |
Fair Value | 18,673 | 18,890 |
Government pass-throughs, Fannie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 22,502 | 13,952 |
Gross Unrealized Gains | 549 | 7 |
Gross Unrealized Losses | (339) | |
Fair Value | 23,051 | 13,620 |
Government pass-throughs, Freddie Mac | ||
Mortgage-backed securities | ||
Amortized Cost | 13,346 | 12,662 |
Gross Unrealized Gains | 105 | |
Gross Unrealized Losses | (25) | (252) |
Fair Value | 13,426 | 12,410 |
Private pass-throughs | ||
Mortgage-backed securities | ||
Amortized Cost | 23,111 | 25,064 |
Gross Unrealized Losses | (291) | (349) |
Fair Value | 22,820 | 24,715 |
Collateralized mortgage obligations | ||
Mortgage-backed securities | ||
Amortized Cost | 14,848 | 12,328 |
Gross Unrealized Gains | 119 | 11 |
Gross Unrealized Losses | (54) | (180) |
Fair Value | $ 14,913 | $ 12,159 |
Mortgage-Backed Securities - Co
Mortgage-Backed Securities - Contractual maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized cost by contractual maturity: | ||
Amortized Cost | $ 68,057 | $ 66,140 |
Fair value by contractual maturity: | ||
Fair Value | 69,730 | 66,169 |
Mortgage-backed securities available for sale | ||
Amortized cost by contractual maturity: | ||
Due after one year through five years | 704 | |
Due after five years through ten years | 6,384 | |
Due after ten years | 85,250 | |
Amortized Cost | 92,338 | 83,219 |
Fair value by contractual maturity: | ||
Due after one year through five years | 702 | |
Due after five years through ten years | 6,368 | |
Due after ten years | 85,813 | |
Fair Value | $ 92,883 | $ 81,794 |
Mortgage-Backed Securities - Fa
Mortgage-Backed Securities - Fair value and gross unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Mortgage-backed securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 6,625 | $ 24,460 |
Less than 12 Months, Gross Unrealized Losses | (43) | (226) |
12 Months or More, Fair Value | 28,325 | 53,052 |
12 Months or More, Gross Unrealized Losses | (379) | (1,218) |
Total, Fair Value | 34,950 | 77,512 |
Total, Gross Unrealized Losses | (422) | (1,444) |
Government pass-throughs, Ginnie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 0 | 4,850 |
Less than 12 Months, Gross Unrealized Losses | 0 | (26) |
12 Months or More, Fair Value | 3,900 | 13,794 |
12 Months or More, Gross Unrealized Losses | (52) | (298) |
Total, Fair Value | 3,900 | 18,644 |
Total, Gross Unrealized Losses | (52) | (324) |
Government pass-throughs, Fannie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 403 | |
Less than 12 Months, Gross Unrealized Losses | (2) | |
12 Months or More, Fair Value | 12,152 | |
12 Months or More, Gross Unrealized Losses | (337) | |
Total, Fair Value | 12,555 | |
Total, Gross Unrealized Losses | (339) | |
Government pass-throughs, Freddie Mac | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 2,489 | 680 |
Less than 12 Months, Gross Unrealized Losses | (25) | (24) |
12 Months or More, Fair Value | 0 | 11,699 |
12 Months or More, Gross Unrealized Losses | 0 | (228) |
Total, Fair Value | 2,489 | 12,379 |
Total, Gross Unrealized Losses | (25) | (252) |
Private pass-throughs | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 2,115 | 14,436 |
Less than 12 Months, Gross Unrealized Losses | (11) | (134) |
12 Months or More, Fair Value | 20,478 | 9,359 |
12 Months or More, Gross Unrealized Losses | (280) | (215) |
Total, Fair Value | 22,593 | 23,795 |
Total, Gross Unrealized Losses | (291) | (349) |
Collateralized mortgage obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 2,021 | 4,091 |
Less than 12 Months, Gross Unrealized Losses | (7) | (40) |
12 Months or More, Fair Value | 3,947 | 6,048 |
12 Months or More, Gross Unrealized Losses | (47) | (140) |
Total, Fair Value | 5,968 | 10,139 |
Total, Gross Unrealized Losses | $ (54) | $ (180) |
Mortgage-Backed Securities - Ad
Mortgage-Backed Securities - Additional information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Mortgage-backed securities | |||||
Loss on sales of mortgage-backed securities | $ 0 | $ 0 | $ 1,000 | $ 0 | |
Total proceeds from sales | $ 1,286,000 | ||||
Mortgage-backed securities available for sale | |||||
Mortgage-backed securities | |||||
Number of securities held in an unrealized loss position | security | 34 | 34 | |||
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 15,100,000 | $ 15,100,000 | $ 10,400,000 |
Loans Receivable and Related _3
Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 728,997 | $ 733,396 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 728,997 | 733,396 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 242,000 | 253,913 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 242,000 | 253,913 |
Real Estate Loans | Commercial Real Estate | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 321,956 | 308,775 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 321,956 | 308,775 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 114,517 | 123,373 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 114,517 | 123,373 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 49,952 | 46,196 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 49,952 | 46,196 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 572 | 1,139 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | $ 572 | $ 1,139 |
Loans Receivable and Related _4
Loans Receivable and Related Allowance for Loan Losses - Aggregate Pass rating (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 728,997 | $ 733,396 |
Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 723,644 | 725,422 |
Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,979 | 5,145 |
Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,374 | 2,829 |
Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 242,000 | 253,913 |
Real Estate Loans | One-to-four-family Residential and Construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 240,316 | 252,186 |
Real Estate Loans | One-to-four-family Residential and Construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,684 | 1,727 |
Real Estate Loans | One-to-four-family Residential and Construction | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 321,956 | 308,775 |
Real Estate Loans | Commercial Real Estate | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 318,923 | 303,161 |
Real Estate Loans | Commercial Real Estate | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,699 | 4,851 |
Real Estate Loans | Commercial Real Estate | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 334 | 763 |
Real Estate Loans | Commercial Real Estate | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 114,517 | 123,373 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 114,141 | 123,053 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 64 | 62 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 312 | 258 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Commercial Business | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 49,952 | 46,196 |
Commercial Business | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 49,701 | 45,902 |
Commercial Business | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 216 | 232 |
Commercial Business | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 35 | 62 |
Commercial Business | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Other Loans | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 572 | 1,139 |
Other Loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 563 | 1,120 |
Other Loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 9 | 19 |
Other Loans | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 0 | $ 0 |
Loans Receivable and Related _5
Loans Receivable and Related Allowance for Loan Losses - Loans accruing and nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 725,747 | $ 727,905 |
Non-Accrual | 2,375 | 2,727 |
90 Days Past Due and Accruing | 0 | 3 |
Total loans before allowance for loan losses | 728,997 | 733,396 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 546 | 2,571 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 329 | 190 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 239,962 | 250,691 |
Non-Accrual | 1,684 | 1,727 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 242,000 | 253,913 |
Real Estate Loans | One-to-four-family Residential and Construction | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 25 | 1,341 |
Real Estate Loans | One-to-four-family Residential and Construction | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 329 | 154 |
Real Estate Loans | Commercial Real Estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 321,517 | 307,740 |
Non-Accrual | 334 | 661 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 321,956 | 308,775 |
Real Estate Loans | Commercial Real Estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 105 | 374 |
Real Estate Loans | Commercial Real Estate | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 0 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 113,837 | 122,929 |
Non-Accrual | 312 | 258 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 114,517 | 123,373 |
Real Estate Loans | Home Equity Loans and Lines of Credit | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 368 | 163 |
Real Estate Loans | Home Equity Loans and Lines of Credit | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 23 |
Commercial Business | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 49,869 | 45,434 |
Non-Accrual | 36 | 62 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 49,952 | 46,196 |
Commercial Business | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 47 | 690 |
Commercial Business | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 10 |
Other Loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 562 | 1,111 |
Non-Accrual | 9 | 19 |
90 Days Past Due and Accruing | 0 | 3 |
Total loans before allowance for loan losses | 572 | 1,139 |
Other Loans | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 1 | 3 |
Other Loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | $ 0 | $ 3 |
Loans Receivable and Related _6
Loans Receivable and Related Allowance for Loan Losses - Allowance required for loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Allowance for loan losses | ||||||
Balance at the beginning of the period | $ 4,494 | $ 4,360 | $ 4,414 | $ 4,127 | ||
Charge-offs | (9) | (45) | (222) | (67) | ||
Recoveries | 4 | 1 | 7 | 81 | ||
Provision | 254 | 223 | 544 | 398 | ||
Balance at the end of the period | 4,743 | 4,539 | 4,743 | 4,539 | ||
Evaluated for Impairment: | ||||||
Individually | $ 0 | $ 0 | ||||
Collectively | 4,743 | 4,414 | ||||
Balance at the end of the period | 4,494 | 4,360 | 4,414 | 4,127 | 4,743 | 4,414 |
Real Estate Loans | One-to-four-family Residential and Construction | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 851 | 1,183 | 1,051 | 1,384 | ||
Charge-offs | (1) | 0 | (1) | 0 | ||
Recoveries | 0 | 0 | 0 | 69 | ||
Provision | (56) | (144) | (256) | (414) | ||
Balance at the end of the period | 794 | 1,039 | 794 | 1,039 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 794 | 1,051 | ||||
Balance at the end of the period | 851 | 1,183 | 1,051 | 1,384 | 794 | 1,051 |
Real Estate Loans | Commercial Real Estate | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 2,836 | 2,430 | 2,761 | 2,003 | ||
Charge-offs | 0 | (41) | (121) | (50) | ||
Recoveries | 0 | 1 | 0 | 1 | ||
Provision | 330 | 353 | 526 | 789 | ||
Balance at the end of the period | 3,166 | 2,743 | 3,166 | 2,743 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 3,166 | 2,761 | ||||
Balance at the end of the period | 2,836 | 2,430 | 2,761 | 2,003 | 3,166 | 2,761 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 295 | 385 | 312 | 400 | ||
Charge-offs | 0 | 0 | (59) | 0 | ||
Recoveries | 3 | 0 | 6 | 11 | ||
Provision | 3 | 4 | 42 | (22) | ||
Balance at the end of the period | 301 | 389 | 301 | 389 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 301 | 312 | ||||
Balance at the end of the period | 295 | 385 | 312 | 400 | 301 | 312 |
Commercial Business | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 510 | 359 | 286 | 333 | ||
Charge-offs | 0 | 0 | 0 | (11) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | (30) | 5 | 194 | 42 | ||
Balance at the end of the period | 480 | 364 | 480 | 364 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 480 | 286 | ||||
Balance at the end of the period | 510 | 359 | 286 | 333 | 480 | 286 |
Other Loans | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 2 | 3 | 4 | 7 | ||
Charge-offs | (8) | (4) | (41) | (6) | ||
Recoveries | 1 | 0 | 1 | 0 | ||
Provision | 7 | 5 | 38 | 3 | ||
Balance at the end of the period | 2 | 4 | 2 | 4 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 2 | 4 | ||||
Balance at the end of the period | $ 2 | $ 3 | $ 4 | $ 7 | $ 2 | $ 4 |
Loans Receivable and Related _7
Loans Receivable and Related Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)securityloan | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Deferred loan costs of loans receivable | $ 251,000 | $ 251,000 | $ 226,000 | ||
Possible impairment of past due troubled debt restructuring | 200,000 | 200,000 | |||
Average investment in impaired loans | 0 | $ 295,000 | $ 0 | $ 295,000 | |
Past due period for troubled debt restructuring | 90 days | ||||
Threshold limit of watch list loans for external loan review | $ 100,000 | ||||
Number of loans on non-accrual status | loan | 16 | ||||
Non-accrual status less than 90 days past due | $ 694,000 | $ 694,000 | |||
Minimum | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Number of semi annual review loan relationship | security | 50 | 50 | |||
Amount of new loan originations limit selected for external loan review | $ 200,000 | ||||
Maximum | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Number of semi annual review loan relationship | security | 60 | 60 | |||
Amount of new loan originations limit selected for external loan review | $ 500,000 | ||||
Real Estate Loans | One-to-four-family Residential and Construction | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loan receivable maturity | 30 years | ||||
Real Estate Loans | Home Equity Loans and Lines of Credit | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loan receivable maturity | 20 years |
Foreclosed Assets Held For Sa_2
Foreclosed Assets Held For Sale (Details) | Sep. 30, 2019USD ($)item | Dec. 31, 2018USD ($) |
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | $ 459,000 | $ 486,000 |
Initiated formal foreclosure procedures | $ 1,300,000 | |
Residential property | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Number of properties | item | 3 | |
One-to-four family residential loans | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 1,000,000 | |
Commercial Real Estate | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Number of properties | item | 1 | |
Initiated formal foreclosure procedures | $ 168,000 | |
Home Equity Loans and Lines of Credit | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 151,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases | ||
Amortization of right-of-use asset | $ 94 | $ 283 |
Interest expense | 7 | 22 |
Total financing lease costs | $ 101 | $ 305 |
Leases - Weighted-average remai
Leases - Weighted-average remaining term and discount rates (Details) | Sep. 30, 2019 |
Leases | |
Weighted-average term (years) | 4 years 8 months 12 days |
Weighted-average discount rate | 2.80% |
Leases - Undiscounted cash flow
Leases - Undiscounted cash flows due (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Undiscounted cash flows due within: | |
2019 | $ 102 |
2020 | 292 |
2021 | 124 |
2022 | 102 |
2023 | 102 |
2024 and thereafter | 212 |
Total undiscounted cash flows | 934 |
Impact of present value discount | (59) |
Amount reported on balance sheet | $ 875 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($)agreement |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of financing lease agreements | agreement | 4 |
ASU 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Finance right-of-use assets | $ 1.1 |
Finance lease liabilities | $ 1.2 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Options | ||||
Exercised (in shares) | (13,910) | (11,665) | (24,794) | |
Unearned ESOP Shares | ||||
Options | ||||
Outstanding at December 31, 2018 (in shares) | 266,695 | |||
Granted (in shares) | 0 | |||
Exercised (in shares) | (11,665) | |||
Forfeited (in shares) | 0 | |||
Outstanding at September 30, 2019 (in shares) | 255,030 | 266,695 | ||
Exercisable at September 30, 2019 (in shares) | 255,030 | |||
Weighted Average Exercise Price | ||||
Outstanding at December 31, 2018 (in dollars per share) | $ 17.12 | |||
Granted (in dollars per share) | 0 | |||
Exercise price (in dollars per share) | 17.64 | |||
Forfeited (in dollars per share) | 0 | |||
Outstanding at September 30, 2019 (in dollars per share) | 17.09 | $ 17.12 | ||
Exercisable at September 30, 2019 (in dollars per share) | $ 17.09 | |||
Weighted Average Remaining Contractual Term | 2 years 8 months 1 day | 3 years 3 months 26 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock (Details) - Restricted stock | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Restricted Shares | |
Non-vested shares at beginning (in shares) | shares | 250 |
Granted | shares | 4,547 |
Vested | shares | 1,490 |
Non-vested shares at ending (in shares) | shares | 3,307 |
Weighted Average Grant Date Price Per Share | |
Non-vested shares at the beginning of the period (in dollars per share) | $ / shares | $ 31.10 |
Granted | $ / shares | 29.13 |
Vested | $ / shares | 29.83 |
Non-vested shares at the end of the period (in dollars per share) | $ / shares | $ 28.97 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) | Mar. 12, 2019shares | Feb. 26, 2019shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2019USD ($)itemshares |
Stock Based Compensation | ||||
Number of stock option plan | item | 2 | |||
Standard Financial Corp. 2012 Equity Incentive Plan (the "2012 Plan") | ||||
Stock Based Compensation | ||||
Number of shares available to be issued | 101,144 | 101,144 | ||
Unearned ESOP Shares | ||||
Stock Based Compensation | ||||
Vesting period | 11 months | |||
Restricted stock | ||||
Stock Based Compensation | ||||
Compensation expense | $ | $ 23,000 | $ 58,000 | ||
Unrecognized compensation expense | $ | $ 81,000 | $ 81,000 | ||
Restricted stock | Directors and officers | ||||
Stock Based Compensation | ||||
Number of shares available to be issued | 72,588 | 72,588 | ||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | Directors and officers | ||||
Stock Based Compensation | ||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 1,820 | |||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | Employee | ||||
Stock Based Compensation | ||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 2,727 | |||
Vesting period | 34 months |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Stock Ownership Plan | ||||
Number of years of service to be completed to participate in the plan | 1 year | |||
Employees vesting rate in ESOP account after two years of service (as a percent) | 20.00% | |||
Employees vesting rate in ESOP account after three years of service (as a percent) | 40.00% | |||
Employees vesting rate in ESOP account after four years of service (as a percent) | 60.00% | |||
Employees vesting rate in ESOP account after five years of service (as a percent) | 80.00% | |||
Employees vesting rate in ESOP account after six years of service (as a percent) | 100.00% | |||
Stock purchased by the ESOP, funded by loan (in shares) | 278,254 | |||
Compensation expense related to the ESOP | $ 98 | $ 113 | $ 307 | $ 331 |
Total shares held by ESOP | 253,590 | 253,590 | ||
Unallocated shares | 159,003 | 159,003 | ||
Fair market value of the unallocated ESOP shares | $ 4,300 | $ 4,300 |
Pension Information (Details)
Pension Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Information | ||||
Interest Cost | $ 31 | $ 33 | $ 93 | $ 99 |
Expected return on plan assets | (32) | (41) | (96) | (123) |
Amortization of net loss | 2 | 3 | 6 | 9 |
Settlement obligation | 0 | 0 | 0 | 30 |
Net periodic pension cost | $ 1 | $ (5) | $ 3 | $ 15 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets measured at fair value | ||
Total investment securities available for sale | $ 69,730 | $ 66,169 |
Equity securities | 2,880 | 2,725 |
Mortgage-backed securities available for sale | 92,883 | 81,794 |
Level 1 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 2,880 | 2,725 |
Mortgage-backed securities available for sale | 0 | 0 |
Level 2 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 69,730 | 66,169 |
Equity securities | 0 | 0 |
Mortgage-backed securities available for sale | 92,883 | 81,794 |
Level 3 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed securities available for sale | 0 | 0 |
Recurring basis | ||
Assets measured at fair value | ||
Total investment securities available for sale | 69,730 | 66,169 |
Equity securities | 2,880 | 2,725 |
Mortgage-backed securities available for sale | 92,883 | 81,794 |
Total recurring fair value measurements | 165,493 | 150,688 |
Recurring basis | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 8,469 | 8,270 |
Recurring basis | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,581 | 4,201 |
Recurring basis | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 58,680 | 53,698 |
Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 2,880 | 2,725 |
Mortgage-backed securities available for sale | 0 | 0 |
Total recurring fair value measurements | 2,880 | 2,725 |
Recurring basis | Level 1 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 1 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 1 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 69,730 | 66,169 |
Equity securities | 0 | 0 |
Mortgage-backed securities available for sale | 92,883 | 81,794 |
Total recurring fair value measurements | 162,613 | 147,963 |
Recurring basis | Level 2 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 8,469 | 8,270 |
Recurring basis | Level 2 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,581 | 4,201 |
Recurring basis | Level 2 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 58,680 | 53,698 |
Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed securities available for sale | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Recurring basis | Level 3 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 3 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 3 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | $ 0 | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Nonrecurring (Details) - Nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 459 | $ 486 |
Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 459 | 486 |
Foreclosed real estate | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 459 | 486 |
Foreclosed real estate | Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Foreclosed real estate | Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Foreclosed real estate | Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 459 | $ 486 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Additional quantitative information (Details) - Nonrecurring basis - Level 3 $ in Thousands | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate | $ 459 | $ 486 |
Appraisal Of Collateral | Appraisal adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate, unobservable input (in percent) | 0 | |
Appraisal Of Collateral | Appraisal adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate, unobservable input (in percent) | 30 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Fair value hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Instruments - Assets: | ||
Cash on hand and due from banks | $ 3,275 | $ 3,371 |
Interest-earning deposits in other institutions | 26,002 | 12,836 |
Investment securities available for sale, at fair value | 69,730 | 66,169 |
Mortgage-backed securities | 92,883 | 81,794 |
Equity Securities | 2,880 | 2,725 |
Bank-owned life insurance | 23,238 | 22,572 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 491,758 | 471,177 |
Certificate deposit accounts | 245,205 | 246,697 |
Federal Home Loan Bank short-term borrowings | 4,524 | |
Carrying Amount | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 3,275 | 3,371 |
Interest-earning deposits in other institutions | 26,002 | 12,836 |
Certificate of deposit | 249 | 249 |
Investment securities available for sale, at fair value | 69,730 | 66,169 |
Mortgage-backed securities | 92,883 | 81,794 |
Equity Securities | 2,880 | 2,725 |
Federal Home Loan Bank stock | 7,665 | 7,900 |
Loans receivable | 724,254 | 728,982 |
Bank-owned life insurance | 23,238 | 22,572 |
Accrued interest receivable | 2,901 | 2,823 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 491,758 | 471,177 |
Certificate deposit accounts | 245,205 | 246,697 |
Long-term borrowings | 105,738 | |
Federal Home Loan Bank short-term borrowings | 4,524 | |
Federal Home Loan Bank advances | 104,963 | |
Securities sold under agreements to repurchase | 2,925 | 2,137 |
Accrued interest payable | 1,020 | 1,154 |
Estimated Fair Value | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 3,275 | 3,371 |
Interest-earning deposits in other institutions | 26,002 | 12,836 |
Certificate of deposit | 249 | 249 |
Investment securities available for sale, at fair value | 69,730 | 66,169 |
Mortgage-backed securities | 92,883 | 81,794 |
Equity Securities | 2,880 | 2,725 |
Federal Home Loan Bank stock | 7,665 | 7,900 |
Loans receivable | 733,965 | 717,491 |
Bank-owned life insurance | 23,238 | 22,572 |
Accrued interest receivable | 2,901 | 2,823 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 491,758 | 471,177 |
Certificate deposit accounts | 248,324 | 245,740 |
Long-term borrowings | 106,850 | |
Federal Home Loan Bank short-term borrowings | 4,524 | |
Federal Home Loan Bank advances | 104,345 | |
Securities sold under agreements to repurchase | 2,925 | 2,137 |
Accrued interest payable | 1,020 | 1,154 |
Level 1 | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 3,275 | 3,371 |
Interest-earning deposits in other institutions | 26,002 | 12,836 |
Certificate of deposit | 249 | 249 |
Investment securities available for sale, at fair value | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Equity Securities | 2,880 | 2,725 |
Federal Home Loan Bank stock | 7,665 | 7,900 |
Loans receivable | 0 | 0 |
Bank-owned life insurance | 23,238 | 22,572 |
Accrued interest receivable | 2,901 | 2,823 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 491,758 | 471,177 |
Certificate deposit accounts | 0 | 0 |
Long-term borrowings | 0 | |
Federal Home Loan Bank short-term borrowings | 4,524 | |
Federal Home Loan Bank advances | 0 | |
Securities sold under agreements to repurchase | 2,925 | 2,137 |
Accrued interest payable | 1,020 | 1,154 |
Level 2 | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 0 | 0 |
Interest-earning deposits in other institutions | 0 | 0 |
Certificate of deposit | 0 | 0 |
Investment securities available for sale, at fair value | 69,730 | 66,169 |
Mortgage-backed securities | 92,883 | 81,794 |
Equity Securities | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 0 | 0 |
Certificate deposit accounts | 0 | 0 |
Long-term borrowings | 0 | |
Federal Home Loan Bank short-term borrowings | 0 | |
Federal Home Loan Bank advances | 0 | |
Securities sold under agreements to repurchase | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 0 | 0 |
Interest-earning deposits in other institutions | 0 | 0 |
Certificate of deposit | 0 | 0 |
Investment securities available for sale, at fair value | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Equity Securities | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans receivable | 733,965 | 717,491 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 0 | 0 |
Certificate deposit accounts | 248,324 | 245,740 |
Long-term borrowings | 106,850 | |
Federal Home Loan Bank short-term borrowings | 0 | |
Federal Home Loan Bank advances | 104,345 | |
Securities sold under agreements to repurchase | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | $ (1,344) | |||
Total other comprehensive income (loss) | $ 258 | $ (723) | 2,861 | $ (2,945) |
Balance at the end of the period | 1,517 | 1,517 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | 1,259 | (2,110) | (1,344) | 528 |
Other comprehensive loss before reclassification | 256 | (725) | 2,854 | (2,981) |
Amount reclassified from accumulated other comprehensive income | 2 | 2 | 7 | 36 |
Total other comprehensive income (loss) | 258 | (723) | 2,861 | (2,945) |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |||
Balance at the end of the period | 1,517 | (2,833) | 1,517 | (2,833) |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Securities | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | 1,496 | (1,819) | (1,103) | 840 |
Other comprehensive loss before reclassification | 256 | (725) | 2,854 | (2,981) |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 1 | 13 |
Total other comprehensive income (loss) | 256 | (725) | 2,855 | (2,968) |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |||
Balance at the end of the period | 1,752 | (2,544) | 1,752 | (2,544) |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | (237) | (291) | (241) | (312) |
Other comprehensive loss before reclassification | 0 | 0 | 0 | |
Amount reclassified from accumulated other comprehensive income | 2 | 2 | 6 | 23 |
Total other comprehensive income (loss) | 2 | 2 | 6 | 23 |
Change in accounting principle for adoption of ASU 2016-01 | 0 | |||
Balance at the end of the period | $ (235) | $ (289) | $ (235) | $ (289) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Significant amounts reclassified (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net losses on sales of securities | $ (1) | $ (17) | ||
Other operating expenses | $ 1,051 | $ 1,154 | 3,093 | 3,396 |
Income tax expense | 707 | 513 | 1,837 | 1,727 |
Net income | 2,464 | 2,380 | 6,731 | 7,034 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | 2 | 2 | 7 | 36 |
Net income | 2 | 2 | 7 | 36 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net losses on sales of securities | 1 | 17 | ||
Income tax expense | (4) | |||
Net of tax | 0 | 0 | 1 | 13 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | (1) | (1) | (6) | |
Net of tax | 2 | 2 | 6 | 23 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other operating expenses | 2 | $ 3 | $ 7 | 9 |
Net of tax | $ 2 | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Distribution settlement | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other operating expenses | $ 20 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noninterest Income | ||||
Noninterest income (in-scope of Topic 606) | $ 949 | $ 859 | $ 2,687 | $ 2,624 |
Noninterest income (out-of-scope of Topic 606) | 538 | 302 | 1,032 | 922 |
Noninterest income | 1,487 | 1,161 | 3,719 | 3,546 |
Accounting Standards Update 2014-09 (Topic 606) | Service charges | ||||
Noninterest Income | ||||
Noninterest income (in-scope of Topic 606) | 777 | 718 | 2,146 | 2,155 |
Accounting Standards Update 2014-09 (Topic 606) | Investment management fees | ||||
Noninterest Income | ||||
Noninterest income (out-of-scope of Topic 606) | $ 172 | $ 141 | $ 541 | $ 469 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 2,026 | $ 2,508 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 | 146 | |
2020 | 472 | |
2021 | 352 | |
2022 | 325 | |
2023 | 325 | |
2024 | 325 | |
2025 | 81 | |
Total | $ 2,026 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Other Intangibles | ||
Goodwill | $ 25,836 | $ 25,836 |
Core deposit intangible | 2,026 | $ 2,508 |
Accumulated amortization of core deposit intangible | $ 2,100 |