Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 08, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Standard AVB Financial Corp. | |
Entity Central Index Key | 1,492,915 | |
Trading Symbol | stnd | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,796,643 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash on hand and due from banks | $ 3,453 | $ 3,523 |
Interest-earning deposits in other institutions | 10,777 | 12,742 |
Cash and Cash Equivalents | 14,230 | 16,265 |
Investment securities available for sale, at fair value | 62,683 | 65,559 |
Equity securities, at fair value | 4,468 | |
Mortgage-backed securities available for sale, at fair value | 80,059 | 67,630 |
Certificate of deposit | 499 | 749 |
Federal Home Loan Bank stock, at cost | 9,420 | 9,468 |
Loans receivable, net of allowance for loan losses of $4,185 and $4,127 | 742,861 | 747,035 |
Foreclosed real estate | 354 | 419 |
Office properties and equipment, net | 8,092 | 8,191 |
Bank-owned life insurance | 22,171 | 22,040 |
Goodwill | 25,836 | 25,836 |
Core deposit intangible | 3,087 | 3,344 |
Accrued interest receivable and other assets | 5,713 | 6,064 |
TOTAL ASSETS | 979,473 | 972,600 |
Deposits: | ||
Demand, savings and club accounts | 480,524 | 482,902 |
Certificate accounts | 211,563 | 211,944 |
Total Deposits | 692,087 | 694,846 |
Federal Home Loan Bank short-term borrowings | 22,883 | 27,021 |
Federal Home Loan Bank advances | 121,296 | 107,652 |
Securities sold under agreements to repurchase | 4,559 | 4,240 |
Advance deposits by borrowers for taxes and insurance | 714 | 782 |
Accrued interest payable and other liabilities | 4,624 | 4,087 |
TOTAL LIABILITIES | 846,163 | 838,628 |
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, 4,796,643 and 4,790,687 shares outstanding, respectively | 48 | 48 |
Additional paid-in-capital | 75,203 | 75,063 |
Retained earnings | 61,689 | 60,172 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,801) | (1,839) |
Accumulated other comprehensive income (loss) | (1,829) | 528 |
TOTAL STOCKHOLDERS' EQUITY | 133,310 | 133,972 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 979,473 | $ 972,600 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Consolidated Statements of Financial Condition | ||
Loans receivable, allowance for loan losses (in dollars) | $ 4,185 | $ 4,127 |
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 | 4,796,643 | 4,790,687 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest and Dividend Income | ||
Loans, including fees | $ 7,916 | $ 3,766 |
Mortgage-backed securities | 457 | 74 |
Investments: | ||
Taxable | 100 | 71 |
Tax-exempt | 355 | 196 |
Federal Home Loan Bank stock | 160 | 38 |
Interest-earning deposits and federal funds sold | 50 | 9 |
Total Interest and Dividend Income | 9,038 | 4,154 |
Interest Expense | ||
Deposits | 974 | 666 |
Federal Home Loan Bank short-term borrowings | 158 | |
Federal Home Loan Bank advances | 497 | 193 |
Securities sold under agreements to repurchase | 2 | 1 |
Total Interest Expense | 1,631 | 860 |
Net Interest Income | 7,407 | 3,294 |
Provision for Loan Losses | 0 | 0 |
Net Interest Income after Provision for Loan Losses | 7,407 | 3,294 |
Noninterest Income | ||
Service charges | 710 | 374 |
Earnings on bank-owned life insurance | 158 | 121 |
Net losses on sales of securities | (65) | |
Net gains on sales of equities | 40 | |
Net equity securities fair value adjustment gains | 50 | |
Net loan sale gains | 4 | 4 |
Investment management fees | 132 | 72 |
Other income | 15 | 11 |
Total Noninterest Income | 1,109 | 517 |
Noninterest Expenses | ||
Compensation and employee benefits | 3,457 | 1,745 |
Data processing | 154 | 119 |
Premises and occupancy costs | 685 | 337 |
Automatic teller machine expense | 129 | 90 |
Federal deposit insurance | 81 | 39 |
Core deposit amortization | 257 | |
Merger related expenses | 252 | |
Other operating expenses | 1,017 | 394 |
Total Noninterest Expenses | 5,780 | 2,976 |
Income before Income Tax Expense | 2,736 | 835 |
Income Tax Expense | ||
Federal | 476 | 224 |
State | 100 | 48 |
Total Income Tax Expense | 576 | 272 |
Net Income | $ 2,160 | $ 563 |
Earnings Per Share: | ||
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.23 |
Diluted earnings per common share (in dollars per share) | 0.46 | 0.23 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.11 |
Basic weighted average shares outstanding (in shares) | 4,622,384 | 2,415,829 |
Diluted weighted average shares outstanding (in shares) | 4,738,280 | 2,499,495 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 2,160 | $ 563 |
Other comprehensive income (loss): | ||
Change in unrealized gain (loss) on securities available for sale | (2,460) | 279 |
Tax effect | 517 | (95) |
Reclassification adjustment for security losses realized in income | 65 | |
Tax effect | (22) | |
Change in pension obligation for defined benefit plan | 3 | 190 |
Tax effect | (1) | (65) |
Total other comprehensive income (loss) | (1,941) | 352 |
Total Comprehensive Income | $ 219 | $ 915 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2018 - 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 | 2,160 | 2,160 | ||||
Other comprehensive loss | (1,941) | (1,941) | ||||
Change in accounting principle for adoption of ASU 2016-01 | 416 | (416) | ||||
Stock repurchases (2,845 shares) | (86) | (86) | ||||
Cash dividends ($0.22 per share) | (1,059) | (1,059) | ||||
Stock options exercised (8,801 shares) | 155 | 155 | ||||
Compensation expense on ESOP | 71 | 38 | 109 | |||
Balance at Mar. 31, 2018 | $ 48 | $ 75,203 | $ 61,689 | $ (1,801) | $ (1,829) | $ 133,310 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Consolidated Statement of Changes in Stockholders' Equity | |
Stock repurchases, shares | 2,845 |
Cash dividends paid per common share (in dollars per share) | $ / shares | $ 0.22 |
Number of stock options exercised | 8,801 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 2,160 | $ 563 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 305 | 198 |
Provision for loan losses | 0 | 0 |
Amortization of core deposit intangible | 257 | |
Net loss on securities available for sale | 65 | |
Net gain on equity securities | (40) | |
Origination of loans held for sale | (1,116) | (184) |
Proceeds from sale of loans held for sale | 1,120 | 188 |
Net loan sale gains | (4) | (4) |
Compensation expense on ESOP | 109 | 95 |
Compensation expense on stock awards | 110 | |
Deferred income taxes | 635 | (344) |
Increase in accrued interest receivable | (70) | (10) |
Earnings on bank-owned life insurance | (158) | (121) |
Decrease in accrued interest payable | (47) | (10) |
Other, net | 867 | 760 |
Net Cash Provided by Operating Activities | 4,018 | 1,306 |
Cash Flows Used In Investing Activities | ||
Net decrease (increase) in loans | 4,239 | (6,395) |
Purchases of investment and equity securities | (2,943) | (71) |
Purchases of mortgage-backed securities | (16,147) | |
Proceeds from maturities of certificates of deposits | 250 | |
Proceeds from maturities/principal repayments/calls of investment securities | 30 | 1,955 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 2,377 | 1,084 |
Proceeds from sales of investment securities | 238 | |
Proceeds from sales of equity securities | 178 | |
Purchase of Federal Home Loan Bank stock | (2,207) | (156) |
Redemption of Federal Home Loan Bank stock | 2,255 | 330 |
Proceeds from sales of foreclosed real estate | 95 | |
Net purchases of office properties and equipment | (93) | (53) |
Net Cash Used in Investing Activities | (12,061) | (2,973) |
Cash Flows From Financing Activities | ||
Net (decrease) increase in demand, savings and club accounts | (2,378) | 2,730 |
Net (decrease) increase in certificate accounts | (381) | 4,708 |
Net increase in securities sold under agreements to repurchase | 319 | 183 |
Repayments of Federal Home Loan Bank short term borrowings | (84,500) | |
Proceeds from Federal Home Loan Bank short term borrowing | 80,362 | |
Repayments of Federal Home Loan Bank advances | (6,356) | (3,567) |
Proceeds from Federal Home Loan Bank advances | 20,000 | |
Net (decrease) increase in advance deposits by borrowers for taxes and insurance | (68) | 15 |
Exercise of stock options | 155 | 100 |
Dividends paid | (1,059) | (266) |
Stock repurchases | (86) | |
Net Cash Provided by Financing Activities | 6,008 | 3,903 |
Net (Decrease) Increase in Cash and Cash Equivalents | (2,035) | 2,236 |
Cash and Cash Equivalents - Beginning | 16,265 | 10,520 |
Cash and Cash Equivalents - Ending | 14,230 | 12,756 |
Supplementary Cash Flows Information: | ||
Interest paid | 1,678 | 849 |
Income taxes paid | $ 36 | $ 53 |
Consolidation
Consolidation | 3 Months Ended |
Mar. 31, 2018 | |
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. The quarter ended March 31, 2018 reflects the impact of the acquisition of Allegheny Valley Bancorp, Inc. which was effective April 7, 2017. 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 | 3 Months Ended |
Mar. 31, 2018 | |
Basis Of Presentation [Abstract] | |
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, 2017 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on April 2, 2018. The results for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 or any future interim period. Certain amounts in the 2017 financial statements have been reclassified to conform to the 2018 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 and 2017 (dollars in thousands, except per share data): Three Months Ended March 31, 2018 2017 Net income available to common stockholders $ 2,160 $ 563 Basic EPS: Weighted average shares outstanding 4,622,384 2,415,829 Basic EPS $ 0.47 $ 0.23 Diluted EPS: Weighted average shares outstanding 4,622,384 2,415,829 Diluted effect of common stock equivalents 115,896 83,666 Total diluted weighted average shares outstanding 4,738,280 2,499,495 Diluted EPS $ 0.46 $ 0.23 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (4) Recent Accounting Pronouncements Accounting Standards Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Revenue Recognition In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value of Assets and Liabilities In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business the number of transactions that need to be further evaluated. This standard was effective for the Company beginning on January 1, 2018 and had no impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) The amendments in this Update should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption of the standard by the Company, on January 1, 2018, did not have a material impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) In February 2018, the FASB finalized ASU 2018-02, Income Statement –Reporting Comprehensive Income (Topic 220), to allow a reclassification from In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) Fair Value Measurement Derivatives and Hedging—Embedded Derivatives Financial Instruments—Overall Financial Services— Insurance ASU 2018-04, Investments – Debt Securities (Topic 320) Regulated Operations (Topic 980) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118, Accounting Standards Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments 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. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg 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. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investment securities available for sale | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Securities | (5) Investment Securities Investment securities available for sale at March 31, 2018 and December 31, 2017 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,407 $ - $ (99 ) $ 7,308 Beyond 5 year but within 10 years 935 - (20 ) 915 Corporate bonds due: Beyond 1 year but within 5 years 2,273 12 (27 ) 2,258 Municipal obligations due: Beyond 1 year but within 5 years 9,264 375 (14 ) 9,625 Beyond 5 years but within 10 years 25,238 59 (290 ) 25,007 Beyond 10 years 18,010 9 (449 ) 17,570 $ 63,127 $ 455 $ (899 ) $ 62,683 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,400 $ 4 $ (8 ) $ 7,396 Beyond 5 year but within 10 years 934 10 - 944 Corporate bonds due: Beyond 1 year but within 5 years 2,276 14 (18 ) 2,272 Municipal obligations due: Beyond 1 year but within 5 years 8,702 441 - 9,143 Beyond 5 years but within 10 years 25,803 339 (21 ) 26,121 Beyond 10 years 15,483 129 (99 ) 15,513 $ 60,598 $ 937 $ (146 ) $ 61,389 There were no sales of investment securities for the three months ended March 31, 2018 and 2017, respectively. Investment securities with a carrying value of $17.2 million and $16.4 million were pledged to secure repurchase agreements and public funds accounts at March 31, 2018 and December 31, 2017, 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 March 31, 2018 and December 31, 2017 (dollars in thousands): March 31, 2018: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 8,223 $ (119 ) $ - $ - $ 8,223 $ (119 ) Corporate bonds 745 (7 ) 995 (20 ) 1,740 (27 ) Municipal obligations 29,795 (443 ) 4,277 (310 ) 34,072 (753 ) Total $ 38,763 $ (569 ) $ 5,272 $ (330 ) $ 44,035 $ (899 ) December 31, 2017: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 5,924 $ (8 ) $ - $ - $ 5,924 $ (8 ) Corporate bonds 751 (3 ) 1,001 (15 ) 1,752 (18 ) Municipal obligations 4,911 (19 ) 4,491 (101 ) 9,402 (120 ) Total $ 11,586 $ (30 ) $ 5,492 $ (116 ) $ 17,078 $ (146 ) At March 31, 2018, the Company held 71 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, and the Company believes the collection of the investment 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 | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities, Equity Securities [Abstract] | |
Equity Securities | (6) Equity Securities The following table presents the net gains and losses on equity investments recognized in earnings during the quarter ended March 31, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at March 31, 2018: Net gains recognized in equity securities during the period $ 50 Less: Net gains realized on the sale of equity securities during the period 40 Unrealized gains recognized in equity securities held at reporting date $ 10 For the three months ended March 31, 2018, gains on sales of equity securities were $40,000 and proceeds from such sales were $178,000. At March 31, 2018, the Company held 19 equity 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, and the Company believes the collection of the investment and related interest is probable. Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses. |
Mortgage-Backed Securities
Mortgage-Backed Securities | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-Backed Securities | (7) Mortgage-Backed Securities Mortgage-backed securities available for sale at March 31, 2018 and December 31, 2017 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018: Government pass-throughs: Ginnie Mae $ 18,710 $ 2 $ (381 ) $ 18,331 Fannie Mae 15,546 13 (370 ) 15,189 Freddie Mac 14,068 - (321 ) 13,747 Private pass-throughs 23,714 11 (124 ) 23,601 Collateralized mortgage obligations 9,500 - (309 ) 9,191 $ 81,538 $ 26 $ (1,505 ) $ 80,059 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017: Government pass-throughs: Ginnie Mae $ 17,416 $ 6 $ (131 ) $ 17,291 Fannie Mae 16,078 75 (8 ) 16,145 Freddie Mac 12,510 41 (14 ) 12,537 Private pass-throughs 14,603 8 (113 ) 14,498 Collateralized mortgage obligations 7,277 - (118 ) 7,159 $ 67,884 $ 130 $ (384 ) $ 67,630 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. There were no sales of mortgage-backed securities for the three months ended March 31, 2018 and 2017, respectively. The amortized cost and fair value of mortgage-backed securities at March 31, 2018, 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 five years through ten years $ 7,330 $ 7,298 Due after ten years 74,208 72,761 Total Mortgage-Backed Securities $ 81,538 $ 80,059 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 March 31, 2018 and December 31, 2017 (dollars in thousands): March 31, 2018: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 15,680 $ (308 ) $ 2,350 $ (73 ) $ 18,030 $ (381 ) Fannie Mae 14,512 (370 ) - - 14,512 (370 ) Freddie Mac 13,742 (321 ) - - 13,742 (321 ) Private pass-throughs 17,871 (124 ) - - 17,871 (124 ) Collateralized mortgage obligations 8,081 (241 ) 1,110 (68 ) 9,191 (309 ) Total $ 69,886 $ (1,364 ) $ 3,460 $ (141 ) $ 73,346 $ (1,505 ) December 31, 2017: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 12,231 $ (87 ) $ 2,591 $ (44 ) $ 14,822 $ (131 ) Fannie Mae 3,227 (8 ) - - 3,227 (8 ) Freddie Mac 5,949 (14 ) - - 5,949 (14 ) Private pass-throughs 12,559 (113 ) - - 12,559 (113 ) Collateralized mortgage obligations 5,968 (79 ) 1,191 (39 ) 7,159 (118 ) Total $ 39,934 $ (301 ) $ 3,782 $ (83 ) $ 43,716 $ (384 ) At March 31, 2018, the Company held 62 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, and the Company believes the collection of the investment 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 $24.1 million and $25.5 million were pledged to secure repurchase agreements and public fund accounts at March 31, 2018 and December 31, 2017, respectively. |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
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 March 31, 2018 and December 31, 2017 (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 March 31, 2018: Collectively evaluated for impairment $ 259,449 $ 306,190 $ 128,294 $ 51,539 $ 1,279 $ 746,751 Individually evaluated for impairment - 295 - - - 295 Total loans before allowance for loan losses $ 259,449 $ 306,485 $ 128,294 $ 51,539 $ 1,279 $ 747,046 December 31, 2017: Collectively evaluated for impairment $ 261,715 $ 300,702 $ 130,915 $ 56,122 $ 1,413 $ 750,867 Individually evaluated for impairment - 295 - - - 295 Total loans before allowance for loan losses $ 261,715 $ 300,997 $ 130,915 $ 56,122 $ 1,413 $ 751,162 Total loans at March 31, 2018 were net of deferred loan fees of $267,000 and at December 31, 2017 were net of deferred loan fees of $276,000. Included in total loans above are loans acquired from Allegheny Valley at the acquisition date, net of fair value adjustments of (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 April 7, 2017 $ 66,995 $ 160,626 $ 51,759 $ 26,841 $ 5,515 $ 311,736 As a result of the acquisition of Allegheny Valley, the Company added $2.5 million of loans that were accounted for in accordance with ASC 310-30. Based on a review of the loans acquired by senior lending management, which included an analysis of credit deterioration of the loans since origination, the Company recorded a specific credit fair value adjustment of $2.5 million. For loans that were acquired with specific evidence of deterioration in credit quality, loan losses will be accounted for through a reduction of the specific reserve and will not impact the allowance for loan losses. For loans acquired without a deterioration of credit quality, losses incurred will result in adjustments to the allowance for loan losses through the allowance for loan loss adequacy calculation. As of March 31, 2018, the outstanding balance of ASC 310-30 loans acquired from Allegheny Valley was $0 and the carrying value was $0 as all loans with a specific mark were charged off against that mark during the June 2017 quarter, with no resulting impact on net income. The following table presents the components of the purchase accounting adjustments related to the purchased credit-impaired loans acquired: Contractually required principal and interest $ 2,467 Non-accretable discount (2,467 ) Expected cash flows - Accretable discount - Estimated fair value $ - There was no amortizable yield for purchased credit-impaired loans for the three month period ended March 31, 2018. 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) include 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 if the loan either is in nonaccrual status, risk-rated Substandard or Doubtful, greater than 90 days past due or represents a troubled debt restructuring. 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 trouble debt restructuring (“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 Corporation’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 month periods ended March 31, 2018 or 2017 nor did it have any TDRs within the preceding year where a concession had been made that then defaulted during the three month periods ending March 31, 2018 or 2017. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at March 31, 2018 and December 31, 2017 (dollars in thousands): Impaired Loans With Impaired Loans Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance March 31, 2018: Commercial real estate $ - $ - $ 295 $ 295 $ 295 Total impaired loans $ - $ - $ 295 $ 295 $ 295 December 31, 2017: Commercial real estate $ - $ - $ 295 $ 295 $ 295 Total impaired loans $ - $ - $ 295 $ 295 $ 295 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (dollars in thousands): For the Three Months Ended March 31, 2018 2017 Average investment in impaired loans: Commercial real estate $ 295 $ 445 $ 295 $ 445 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 March 31, 2018 and December 31, 2017 (dollars in thousands): Special Pass Mention Substandard Doubtful Total March 31, 2018: Real estate loans: One-to-four-family residential and construction $ 257,291 $ 140 $ 2,018 $ - $ 259,449 Commercial real estate 300,703 4,949 833 - 306,485 Home equity loans and lines of credit 127,994 66 234 - 128,294 Commercial business loans 51,297 237 5 - 51,539 Other loans 1,276 - 3 - 1,279 Total $ 738,561 $ 5,392 $ 3,093 $ - $ 747,046 December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 259,463 $ 211 $ 2,041 $ - $ 261,715 Commercial real estate 295,164 5,077 756 - 300,997 Home equity loans and lines of credit 130,763 - 152 - 130,915 Commercial business loans 55,878 239 5 - 56,122 Other loans 1,411 - 2 - 1,413 Total $ 742,679 $ 5,527 $ 2,956 $ - $ 751,162 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 other nonaccrual loans. At March 31, there were 11 loans on non-accrual status that were less than 90 days past due. 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 March 31, 2018 and December 31, 2017 (dollars in thousands): 30-59 Days 60-89 Days Non-Accrual 90 Days Past Total Current Past Due Past Due (90 Days+) Due & Accruing Loans March 31, 2018: Real estate loans: One-to-four-family residential and construction $ 256,630 $ 851 $ - $ 1,968 $ - $ 259,449 Commercial real estate 305,335 420 - 730 - 306,485 Home equity loans and lines of credit 128,034 26 - 234 - 128,294 Commercial business loans 51,495 34 5 5 - 51,539 Other loans 1,221 21 2 3 32 1,279 Total $ 742,715 $ 1,352 $ 7 $ 2,940 $ 32 $ 747,046 December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 258,202 $ 1,342 $ 272 $ 1,899 $ - $ 261,715 Commercial real estate 299,888 338 15 756 - 300,997 Home equity loans and lines of credit 130,383 122 166 244 - 130,915 Commercial business loans 56,034 83 - 5 - 56,122 Other loans 1,376 14 1 3 19 1,413 Total $ 745,883 $ 1,899 $ 454 $ 2,907 $ 19 $ 751,162 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. The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2018 and December 31, 2017. Activity in the allowance is presented for the three months ended March 31, 2018 and 2017 (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 December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs - - - (9 ) (2 ) (11 ) Recoveries 69 - - - - 69 Provision (54 ) 119 (10 ) (54 ) (1 ) - Balance March 31, 2018 $ 1,399 $ 2,122 $ 390 $ 270 $ 4 $ 4,185 Balance at December 31, 2016 $ 1,280 $ 1,787 $ 547 $ 211 $ 12 $ 3,837 Charge-offs (41 ) - - (1 ) (18 ) (60 ) Recoveries - - - - - - Provision 60 (100 ) (15 ) 45 10 - Balance at March 31, 2017 $ 1,299 $ 1,687 $ 532 $ 255 $ 4 $ 3,777 Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Three Months Ended: Construction Estate of Credit Business Loans Total Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,399 2,122 390 270 4 4,185 Balance at March 31, 2018 $ 1,399 $ 2,122 $ 390 $ 270 $ 4 $ 4,185 Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,384 2,003 400 333 7 4,127 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 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 | 3 Months Ended |
Mar. 31, 2018 | |
Foreclosed Assets Held For Sale [Abstract] | |
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 other assets on the Consolidated Statement of Financial Condition. As of March 31, 2018 and December 31, 2017, a total of $354,000 and $419,000, respectively, of foreclosed assets were included in other assets. As of March 31, 2018, included within the foreclosed assets totaling $354,000 were two residential properties acquired upon foreclosure, prior to the period end. As of March 31, 2018, the Company had initiated formal foreclosure procedures on $704,000 of loans, consisting of $188,000 in one-to-four family residential loans, a $53,000 home equity loan and $463,000 in commercial real estate loans. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Stock Based Compensation | |
Stock Based Compensation | (10) Stock Based Compensation In 2012, the Company’s stockholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The purpose of the 2012 Plan is to provide officers, employees and directors with additional incentives to promote growth and performance of Standard AVB Financial Corp. The 2012 Plan authorizes the granting of options to purchase shares of the Company’s stock, which may be nonqualified stock options or incentive stock options, and restricted stock which is subject to vesting conditions and other restrictions. The 2012 Plan reserved an aggregate number of 486,943 shares of which 347,817 may be issued in connection with the exercise of stock options and 139,126 may be issued as restricted stock. On July 25, 2012, certain directors and officers of the Company were awarded an aggregate of 278,075 options to purchase shares of common stock and 111,300 restricted shares of common stock. The awards vested over five years at the rate of 20% per year and the stock options have a ten year contractual life from the date of grant. The Company recognized expense associated with the restricted share awards over the five year vesting period. Remaining shares available to be issued under the stock option and restricted stock plans were 69,742 and 27,826, respectively as of March 31, 2018. As a result of the merger with Allegheny Valley on April 7, 2017, the Company assumed the stock plans allowing for the issuance of an additional 77,634 shares of Standard AVB Financial Corp. stock, of which 249 shares expired on April 10, 2017. The Plans provide for the granting of incentive stock options (as defined in section 422 of the Internal Revenue Code), nonstatutory stock options, restricted stock, and stock appreciation rights to eligible employees and directors. The Plans had an original term of ten years and they are administered by the Board of Directors or a committee designated by the Board of Directors. The Company’s common stock closed at $16.50 per share on July 25, 2012, which is the exercise price of the options granted on that date. The estimated fair value of the stock options was $423,000, before the impact of income taxes. The per share weighted-average fair value of stock options granted with an exercise price equal to the market value on July 25, 2012 was $1.52 using the following Black-Scholes option pricing model assumptions: expected life of 7.5 years, expected dividend rate of 1.13%, risk-free interest rate of 1.10% and an expected volatility of 9.5% based on historical results of the stock prices of a bank peer group. At and for the three months ended March 31, 2018, the options were fully vested and there was no compensation expense recognized. For the three months ended March 31, 2017, compensation expense on the options was $19,000, with a related tax benefit recorded of $2,000. The following table summarizes transactions regarding the options under the Plan: Options Weighted Weighted Outstanding at December 31, 2017 302,231 $ 17.25 4.11 Granted - - Exercised (8,801 ) 17.59 Forfeited - - Outstanding at March 31, 2018 293,430 $ 17.24 3.88 Exercisable at March 31, 2018 293,430 $ 17.24 On July 25, 2012, the date of grant, the fair value of the restricted stock awards was approximately $1.8 million, before the impact of income taxes. During the quarter ended March 31, 2018, there were no restricted stock awards granted or forfeited. At and for the three months ended March 31, 2018, the existing restricted stock awards were fully vested and there was no compensation expense recognized. For the three months ended March 31, 2017, compensation expense on the grants was $91,000, with a related tax benefit recorded of $31,000. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 3 Months Ended |
Mar. 31, 2018 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (11) 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 $109,000 and $95,000 was recognized during the three months ended March 31, 2018 and 2017, 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 March 31, 2018, the ESOP held a total of 260,909 shares of the Company’s stock, and there were 173,458 unallocated shares. The fair market value of the unallocated ESOP shares was $5.2 million at March 31, 2018. |
Pension Information
Pension Information | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Information | (12) 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 Standard Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained. Net periodic pension (benefit) cost was as follows: Three Months Ended March 31, 2018 2017 Interest Cost $ 33 $ 72 Expected return on plan assets (41 ) (80 ) Amortization of net loss 3 46 Settlement obligation - 105 Net periodic pension (benefit) cost $ (5 ) $ 143 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | (13) 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 and Mortgage-Backed Securities Available for Sale Fair values of investment and mortgage-backed securities available for sale 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands): March 31, 2018: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ - $ 8,223 $ - $ 8,223 Corporate bonds - 2,258 - 2,258 Municipal obligations - 52,202 - 52,202 Total investment securities available for sale - 62,683 - 62,683 Equity securities available for sale 4,468 - - 4,468 Mortgage-backed securities available for sale - 80,059 - 80,059 Total recurring fair value measurements $ 4,468 $ 142,742 $ - $ 147,210 December 31, 2017: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ - $ 8,340 $ - $ 8,340 Corporate bonds - 2,272 - 2,272 Municipal obligations - 50,777 - 50,777 Equity securities 4,170 - - 4,170 Total investment securities available for sale 4,170 61,389 - 65,559 Mortgage-backed securities available for sale - 67,630 - 67,630 Total recurring fair value measurements $ 4,170 $ 129,019 $ - $ 133,189 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 March 31, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands): March 31, 2018: Level 1 Level 2 Level 3 Total Foreclosed real estate $ - $ - $ 354 $ 354 Impaired loans - - 295 295 Total nonrecurring fair value measurements $ - $ - $ 649 $ 649 December 31, 2017: Level 1 Level 2 Level 3 Total Foreclosed real estate $ - $ - $ 419 $ 419 Impaired loans - - 295 295 Total nonrecurring fair value measurements $ - $ - $ 714 $ 714 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 March 31, December 31, Valuation Unobservable 2018 2017 Techniques Input Range Foreclosed real estate $ 354 $ 419 Appraisal of Appraisal adjustments (2) 0% to 40% collateral (1) Liquidation expenses (2) 0% to 10% Impaired loans $ 295 $ 295 Fair value of Appraisal adjustments (2) 0% to 20% collateral (1), (3) Liquidation expenses (2) 0% to 10% (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2018 and December 31, 2017 (dollars in thousands): Carrying Estimated Level 1 Level 2 Level 3 March 31, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,453 $ 3,453 $ 3,453 $ - $ - Interest-earning deposits in other institutions (1) 10,777 10,777 10,777 - - Certificate of deposit (1) 499 499 499 - - Investment securities (2) 62,683 62,683 - 62,683 - Mortgage-backed securities (2) 80,059 80,059 - 80,059 - Equity Securities (3) 4,468 4,468 4,468 - - Federal Home Loan Bank stock (1) 9,420 9,420 9,420 - - Loans receivable (1) (4) 742,861 731,625 - - 731,625 Bank-owned life insurance (1) 22,171 22,171 22,171 - - Accrued interest receivable (1) 2,727 2,727 2,727 - - Financial Instruments - Liabilities: - Demand, savings and club accounts (1) $ 480,524 $ 480,524 $ 480,524 $ - $ - Certificate deposit accounts (1) 211,563 210,303 - - 210,303 Federal Home Loan Bank short-term borrowings (1) 22,883 22,883 22,883 - - Federal Home Loan Bank advances (1) 121,296 120,085 - - 120,085 Securities sold under agreements to repurchase (1) 4,559 4,559 4,559 - - Accrued interest payable (1) 946 946 946 - - December 31, 2017: Financial Instruments - Assets: Cash on hand and due from banks $ 3,523 $ 3,523 $ 3,523 $ - $ - Interest-earning deposits in other institutions 12,742 12,742 12,742 - - Certificate of deposit 749 749 749 - - Investment securities 65,559 65,559 4,170 61,389 - Mortgage-backed securities 67,630 67,630 - 67,630 - Federal Home Loan Bank stock 9,468 9,468 9,468 - - Loans receivable 747,035 747,371 - - 747,371 Bank-owned life insurance 22,040 22,040 22,040 - - Accrued interest receivable 2,657 2,657 2,657 - - Financial Instruments - Liabilities: - Demand, savings and club accounts $ 482,902 $ 482,902 $ 482,902 $ - $ - Certificate deposit accounts 211,944 211,454 - - 211,454 Federal Home Loan Bank short-term borrowings 27,021 27,021 27,021 - - Federal Home Loan Bank advances 107,652 107,223 - - 107,223 Securities sold under agreements to repurchase 4,240 4,240 4,240 - - Accrued interest payable 993 993 993 - - (1) The financial instrument is carried at amortized cost at March 31, 2018. (2) The financial instrument is carried at fair value through other comprehensive income at March 31, 2018. (3) The financial instrument is carried at fair value through net income at March 31, 2018. (4) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of March 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | (14) Accumulated Other Comprehensive Income The following tables present the significant amounts reclassified out of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income by component for the three months ended March 31, 2018 and 2017 (dollars in thousands): Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of December 31, 2017 $ 840 $ (312 ) $ 528 Other comprehensive income before reclassification (1,943 ) - (1,943 ) Amount reclassified from accumulated other comprehensive income - 2 2 Total other comprehensive income (1,943 ) 2 (1,941 ) Change in accounting principle for adoption of ASU 2016-01 (416 ) - (416 ) Balance as of March 31, 2018 $ (1,519 ) $ (310 ) $ (1,829 ) Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended March 31, 2018: Amortization of defined benefit items: Actuarial gains $ 3 Other operating expenses (1 ) Income tax expense (benefit) $ 2 Net of tax Total reclassification for the period $ 2 Net income Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of December 31, 2016 $ (31 ) $ (745 ) $ (776 ) Other comprehensive loss before reclassification 184 - 184 Amount reclassified from accumulated other comprehensive income 43 125 168 Total other comprehensive income 227 125 352 Balance as of March 31, 2017 $ 196 $ (620 ) $ (424 ) Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended March 31, 2017: Unrealized gains on available for sale securities $ (65 ) Net securities gains 22 Income tax expense $ (43 ) Net of tax Amortization of defined benefit items: Actuarial gains $ (46 ) Compensation and employee benefits Distribution settlement (144 ) Compensation and employee benefits 65 Income tax expense $ (125 ) Net of tax Total reclassification for the period $ (168 ) Net income |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (15) Revenue Recognition Effective January 1, 2018, the Company adopted ASU No. 2014-09 Revenue from Contracts with Customers - Topic 606 Summary of Significant Accounting Policies Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as loan servicing fees, gains on the sale of loans, earnings on bank-owned life insurance, and gains on the sale of investments are also not within the scope of the new guidance. As a result, no changes were made during the period related to these sources of revenue. Topic 606 is applicable to noninterest revenue streams such as service charges, which includes charges on deposit accounts, interchange fees, and other service fees, and investment management fees. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. The main types of noninterest revenue within the scope of the standard are as follows: Service Charges Service charges on deposit accounts consist of insufficient funds (NSF) fees, monthly service fees, minimum balance fees, and other deposit account related fees. The Company’s performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. NSF fees, minimum balance fees, and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges is primarily received immediately or in the following month through a direct charge to customers’ accounts. Income from debit and credit cards is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks. The Company’s performance obligation for interchange fees is largely satisfied, and related revenue recognized, when the services are rendered. Payment is typically received immediately. Other fee income is primarily comprised of ATM fees and other service charges. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Other service charges include revenue from processing wire transfers, bill pay service, ACH origination, and other services. The Company’s performance obligation for ATM fees and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Investment Management Fees Investment management fees include three basic components including brokerage commissions, trailers and advisory fees. Brokerage commissions are fees earned from the sale of annuities, stocks, bonds, mutual funds and insurance products and are recognized in the month following the settlement date, which is when the Company has satisfied its performance obligation (that is successful consummation of trade in a compliant manner) and is paid. The Company also receives periodic services fees (i.e. trailers) from mutual fund companies typically based on a percentage of market value and are paid quarterly. Advisory fees are earned over time and based on an annual percentage rate of the market value of the accounts. Advisory fees are charged to customer’s accounts, on a quarterly basis, beginning in the month of funding said account in accordance with a customer signed agreement. The advisory fees are then paid to the Company monthly over the following three months on a prorated basis. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 607 $ 337 Investment management fees 132 72 Noninterest income (in-scope of Topic 606) 739 409 Noninterest income (out-of-scope of Topic 606) 370 108 Total noninterest income $ 1,109 $ 517 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Merger with Allegheny Valley Ba
Merger with Allegheny Valley Bancorp, Inc. | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Merger with Allegheny Valley Bancorp, Inc. | (16) Merger with Allegheny Valley Bancorp, Inc. On August 29, 2016, Standard Financial Corp. and Allegheny Valley entered into an Agreement and Plan of Merger, which contemplated that Allegheny Valley would merge with and into Standard Financial Corp., with Standard Financial Corp. as the surviving entity to be known as “Standard AVB Financial Corp.” On April 7, 2017, Allegheny Valley merged with and into Standard Financial Corp. Accordingly, the Company is now referred to as “Standard AVB Financial Corp.” Under the terms of the Merger Agreement, each outstanding share of Allegheny Valley common stock was converted into the right to receive 2.083 shares of Standard AVB Financial common stock and cash in lieu of fractional shares (the “Merger Consideration”). As of the closing date, there were 1,040,924 outstanding shares of Allegheny Valley common stock which resulted in a total of 2,168,097 shares of Standard AVB Financial common stock issued for exchange, subject to adjustment for fractional shares. Cash for any fractional shares of Standard AVB Financial common stock was based on $26.60 for each whole share, based on the average closing price of Standard Financial common stock for the five trading days immediately preceding the merger date. In addition, each option to purchase Allegheny Valley common stock was converted into an option to purchase Standard AVB Financial common stock at the same terms and conditions as were applicable prior to the holding company merger, except that the number of shares of Standard AVB Financial common stock issuable upon exercise of a converted option was adjusted by multiplying the number of shares of Allegheny Valley common stock issuable by 2.083. Additionally, the exercise price per share of a converted option was adjusted by dividing the exercise price per share of the Allegheny Valley option by 2.083. Additionally, at the consummation of the holding company merger, each Allegheny Valley restricted stock award became fully vested and was converted into the right to receive the Merger Consideration. The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgement in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, historical loss factors of Allegheny Valley and charge-off statistics published by the FDIC. The Company also recorded an identifiable intangible asset representing the core deposit base of Allegheny Valley based on management’s evaluation of the cost of deposits relative to alternative funding sources. Management used significant estimates including the average lives of depository accounts, future interest rate levels, and the cost of servicing various depository products. Management used market quotations to determine the fair value of investment securities. The merger resulted in the acquisition of loans with and without evidence of credit quality deterioration. The fair value of the loan portfolio included separate adjustments to reflect a credit risk and marketability component and a yield component reflecting the differential between portfolio and market yields. Allegheny Valley loans were deemed impaired at the acquisition date if the Company did not expect to receive all contractually required payments at the acquisition date. At the acquisition date, the Company recorded $2,467,000 of purchased credit impaired loans. These loans were reserved at 100% given the unlikelihood of collection of the principal and interest on the loans. Allegheny Valley’s loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using observable discount rates for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and payment speeds. At acquisition date, Allegheny Valley’s loan portfolio without evidence of deterioration totaled $316,448,000 and was recorded at a fair value of $311,736,000, which included an interest rate adjustment of $861,000 and a general credit adjustment of $3,851,000. The following table summarizes the merger with Allegheny Valley as of April 7, 2017: (Dollars in thousands, except per share data) Purchase Price Consideration in Common Stock AVLY common shares settled for stock 1,040,924 Exchange Ratio 2.083 Standard AVB Financial Corp. shares issued 2,168,097 Value assigned to Standard AVB Financial common share $ 26.60 Purchase price per share $ 55.41 Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. $ 57,672 Net Assets Acquired: AVLY shareholders' equity 48,398 AVLY Goodwill (8,144 ) Total tangible equity 40,254 Adjustments to reflect assets acquired at fair value: Loans Interest rate (861 ) General Credit (3,851 ) Specific Credit-non amortizing (2,467 ) Elimination of existing loan ALLL 3,886 Certificates of Deposit Yield Premium (902 ) Core Deposit Intangible 4,116 Fixed assets 384 Deferred Tax Asset (103 ) 40,456 Goodwill resulting from the merger $ 17,216 The following condensed statement reflects the values assigned to Allegheny Valley net assets as of the acquisition date: Total Purchase Price $ 57,672 Net Assets Acquired: Cash 9,611 Securities available for sale 95,919 Loan 311,736 Premises 4,434 Accrued Interest receivable 1,144 Bank-owned life insurance 6,486 Deferred tax assets - Core deposit intangible 4,116 Other assets 7,481 Time deposits (70,422 ) Deposits other than time deposits (263,522 ) Borrowings (64,624 ) Accrued interest payable and other liabilities (1,903 ) 40,456 Goodwill resulting from the AVLY merger $ 17,216 The Company recorded goodwill and other intangibles associated with the merger totaling $21.3 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the three months ended March 31, 2018. The carrying amount of goodwill at March 31, 2018 related to the Allegheny Valley merger was $17.1 million, of which none is deductible for tax purposes. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The gross carrying amount of the core deposit intangible at March 31, 2018 was $3.1 million with $1.0 million of accumulated amortization as of that date. As of March 31, 2018, the remaining current year and estimated future amortization expense for the core deposit intangible is (dollars in thousands): 2018 $ 579 2019 628 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 3,087 Results of operations for Allegheny Valley prior to the acquisition date are not included in the Consolidated Statement of Income for the three month period ended March 31, 2017. Financial information regarding the former Allegheny Valley operations that are included in the Consolidated Statement of Income for the three months ended March 31, 2018 is impracticable to provide.. Providing this information would have required assumptions and significant estimates of amounts that could not be independently substantiated due to the data integration that occurred during the data processing system conversion. The following table presents unaudited pro forma information as if the acquisition of Allegheny Valley had occurred on January 1, 2017. This has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition. Merger and acquisition costs and amortization of fair value adjustments are included in the amounts below. Actual Proforma For the three For the three months ended months ended March 31, 2018 March 31, 2017 Net interest income $ 7,407 $ 7,086 Noninterest income 1,109 977 Net income 2,160 963 Pro forma earnings per share: Basic $ 0.47 $ 0.21 Diluted $ 0.46 $ 0.21 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
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. The quarter ended March 31, 2018 reflects the impact of the acquisition of Allegheny Valley Bancorp, Inc. which was effective April 7, 2017. 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, 2017 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on April 2, 2018. The results for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 or any future interim period. Certain amounts in the 2017 financial statements have been reclassified to conform to the 2018 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Revenue Recognition In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value of Assets and Liabilities In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business the number of transactions that need to be further evaluated. This standard was effective for the Company beginning on January 1, 2018 and had no impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) The amendments in this Update should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption of the standard by the Company, on January 1, 2018, did not have a material impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) In February 2018, the FASB finalized ASU 2018-02, Income Statement –Reporting Comprehensive Income (Topic 220), to allow a reclassification from In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) Fair Value Measurement Derivatives and Hedging—Embedded Derivatives Financial Instruments—Overall Financial Services— Insurance ASU 2018-04, Investments – Debt Securities (Topic 320) Regulated Operations (Topic 980) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118, Accounting Standards Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments 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. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg 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. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per Share | |
Schedule of computation of basic and diluted EPS | Three Months Ended March 31, 2018 2017 Net income available to common stockholders $ 2,160 $ 563 Basic EPS: Weighted average shares outstanding 4,622,384 2,415,829 Basic EPS $ 0.47 $ 0.23 Diluted EPS: Weighted average shares outstanding 4,622,384 2,415,829 Diluted effect of common stock equivalents 115,896 83,666 Total diluted weighted average shares outstanding 4,738,280 2,499,495 Diluted EPS $ 0.46 $ 0.23 |
Investment Securities (Tables)
Investment Securities (Tables) - Investment securities available for sale | 3 Months Ended |
Mar. 31, 2018 | |
Investment Securities | |
Schedule of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,407 $ - $ (99 ) $ 7,308 Beyond 5 year but within 10 years 935 - (20 ) 915 Corporate bonds due: Beyond 1 year but within 5 years 2,273 12 (27 ) 2,258 Municipal obligations due: Beyond 1 year but within 5 years 9,264 375 (14 ) 9,625 Beyond 5 years but within 10 years 25,238 59 (290 ) 25,007 Beyond 10 years 18,010 9 (449 ) 17,570 $ 63,127 $ 455 $ (899 ) $ 62,683 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,400 $ 4 $ (8 ) $ 7,396 Beyond 5 year but within 10 years 934 10 - 944 Corporate bonds due: Beyond 1 year but within 5 years 2,276 14 (18 ) 2,272 Municipal obligations due: Beyond 1 year but within 5 years 8,702 441 - 9,143 Beyond 5 years but within 10 years 25,803 339 (21 ) 26,121 Beyond 10 years 15,483 129 (99 ) 15,513 $ 60,598 $ 937 $ (146 ) $ 61,389 |
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 | March 31, 2018: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 8,223 $ (119 ) $ - $ - $ 8,223 $ (119 ) Corporate bonds 745 (7 ) 995 (20 ) 1,740 (27 ) Municipal obligations 29,795 (443 ) 4,277 (310 ) 34,072 (753 ) Total $ 38,763 $ (569 ) $ 5,272 $ (330 ) $ 44,035 $ (899 ) December 31, 2017: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 5,924 $ (8 ) $ - $ - $ 5,924 $ (8 ) Corporate bonds 751 (3 ) 1,001 (15 ) 1,752 (18 ) Municipal obligations 4,911 (19 ) 4,491 (101 ) 9,402 (120 ) Total $ 11,586 $ (30 ) $ 5,492 $ (116 ) $ 17,078 $ (146 ) |
Equity Securities (Tables)
Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities, Equity Securities [Abstract] | |
Schedule of gains and losses on equity investments | Net gains recognized in equity securities during the period $ 50 Less: Net gains realized on the sale of equity securities during the period 40 Unrealized gains recognized in equity securities held at reporting date $ 10 |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2018: Government pass-throughs: Ginnie Mae $ 18,710 $ 2 $ (381 ) $ 18,331 Fannie Mae 15,546 13 (370 ) 15,189 Freddie Mac 14,068 - (321 ) 13,747 Private pass-throughs 23,714 11 (124 ) 23,601 Collateralized mortgage obligations 9,500 - (309 ) 9,191 $ 81,538 $ 26 $ (1,505 ) $ 80,059 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017: Government pass-throughs: Ginnie Mae $ 17,416 $ 6 $ (131 ) $ 17,291 Fannie Mae 16,078 75 (8 ) 16,145 Freddie Mac 12,510 41 (14 ) 12,537 Private pass-throughs 14,603 8 (113 ) 14,498 Collateralized mortgage obligations 7,277 - (118 ) 7,159 $ 67,884 $ 130 $ (384 ) $ 67,630 |
Schedule of contractual maturity | Amortized Cost Fair Value Due after five years through ten years $ 7,330 $ 7,298 Due after ten years 74,208 72,761 Total Mortgage-Backed Securities $ 81,538 $ 80,059 |
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 | March 31, 2018: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 15,680 $ (308 ) $ 2,350 $ (73 ) $ 18,030 $ (381 ) Fannie Mae 14,512 (370 ) - - 14,512 (370 ) Freddie Mac 13,742 (321 ) - - 13,742 (321 ) Private pass-throughs 17,871 (124 ) - - 17,871 (124 ) Collateralized mortgage obligations 8,081 (241 ) 1,110 (68 ) 9,191 (309 ) Total $ 69,886 $ (1,364 ) $ 3,460 $ (141 ) $ 73,346 $ (1,505 ) December 31, 2017: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 12,231 $ (87 ) $ 2,591 $ (44 ) $ 14,822 $ (131 ) Fannie Mae 3,227 (8 ) - - 3,227 (8 ) Freddie Mac 5,949 (14 ) - - 5,949 (14 ) Private pass-throughs 12,559 (113 ) - - 12,559 (113 ) Collateralized mortgage obligations 5,968 (79 ) 1,191 (39 ) 7,159 (118 ) Total $ 39,934 $ (301 ) $ 3,782 $ (83 ) $ 43,716 $ (384 ) |
Loans Receivable and Related 30
Loans Receivable and Related Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
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 March 31, 2018: Collectively evaluated for impairment $ 259,449 $ 306,190 $ 128,294 $ 51,539 $ 1,279 $ 746,751 Individually evaluated for impairment - 295 - - - 295 Total loans before allowance for loan losses $ 259,449 $ 306,485 $ 128,294 $ 51,539 $ 1,279 $ 747,046 December 31, 2017: Collectively evaluated for impairment $ 261,715 $ 300,702 $ 130,915 $ 56,122 $ 1,413 $ 750,867 Individually evaluated for impairment - 295 - - - 295 Total loans before allowance for loan losses $ 261,715 $ 300,997 $ 130,915 $ 56,122 $ 1,413 $ 751,162 |
Schedule of loans acquired | 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 April 7, 2017 $ 66,995 $ 160,626 $ 51,759 $ 26,841 $ 5,515 $ 311,736 |
Schedule of components purchase accounting adjustments related to purchased credit Impaired loans acquired | Contractually required principal and interest $ 2,467 Non-accretable discount (2,467 ) Expected cash flows - Accretable discount - Estimated fair value $ - |
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary | Impaired Loans With Impaired Loans Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance March 31, 2018: Commercial real estate $ - $ - $ 295 $ 295 $ 295 Total impaired loans $ - $ - $ 295 $ 295 $ 295 December 31, 2017: Commercial real estate $ - $ - $ 295 $ 295 $ 295 Total impaired loans $ - $ - $ 295 $ 295 $ 295 |
Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated | For the Three Months Ended March 31, 2018 2017 Average investment in impaired loans: Commercial real estate $ 295 $ 445 $ 295 $ 445 Interest income recognized on impaired loans $ - $ - |
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 March 31, 2018: Real estate loans: One-to-four-family residential and construction $ 257,291 $ 140 $ 2,018 $ - $ 259,449 Commercial real estate 300,703 4,949 833 - 306,485 Home equity loans and lines of credit 127,994 66 234 - 128,294 Commercial business loans 51,297 237 5 - 51,539 Other loans 1,276 - 3 - 1,279 Total $ 738,561 $ 5,392 $ 3,093 $ - $ 747,046 December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 259,463 $ 211 $ 2,041 $ - $ 261,715 Commercial real estate 295,164 5,077 756 - 300,997 Home equity loans and lines of credit 130,763 - 152 - 130,915 Commercial business loans 55,878 239 5 - 56,122 Other loans 1,411 - 2 - 1,413 Total $ 742,679 $ 5,527 $ 2,956 $ - $ 751,162 |
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | 30-59 Days 60-89 Days Non-Accrual 90 Days Past Total Current Past Due Past Due (90 Days+) Due & Accruing Loans March 31, 2018: Real estate loans: One-to-four-family residential and construction $ 256,630 $ 851 $ - $ 1,968 $ - $ 259,449 Commercial real estate 305,335 420 - 730 - 306,485 Home equity loans and lines of credit 128,034 26 - 234 - 128,294 Commercial business loans 51,495 34 5 5 - 51,539 Other loans 1,221 21 2 3 32 1,279 Total $ 742,715 $ 1,352 $ 7 $ 2,940 $ 32 $ 747,046 December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 258,202 $ 1,342 $ 272 $ 1,899 $ - $ 261,715 Commercial real estate 299,888 338 15 756 - 300,997 Home equity loans and lines of credit 130,383 122 166 244 - 130,915 Commercial business loans 56,034 83 - 5 - 56,122 Other loans 1,376 14 1 3 19 1,413 Total $ 745,883 $ 1,899 $ 454 $ 2,907 $ 19 $ 751,162 |
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 December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs - - - (9 ) (2 ) (11 ) Recoveries 69 - - - - 69 Provision (54 ) 119 (10 ) (54 ) (1 ) - Balance March 31, 2018 $ 1,399 $ 2,122 $ 390 $ 270 $ 4 $ 4,185 Balance at December 31, 2016 $ 1,280 $ 1,787 $ 547 $ 211 $ 12 $ 3,837 Charge-offs (41 ) - - (1 ) (18 ) (60 ) Recoveries - - - - - - Provision 60 (100 ) (15 ) 45 10 - Balance at March 31, 2017 $ 1,299 $ 1,687 $ 532 $ 255 $ 4 $ 3,777 Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Three Months Ended: Construction Estate of Credit Business Loans Total Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,399 2,122 390 270 4 4,185 Balance at March 31, 2018 $ 1,399 $ 2,122 $ 390 $ 270 $ 4 $ 4,185 Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,384 2,003 400 333 7 4,127 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock Based Compensation | |
Schedule of transactions regarding the options under the Plan | Options Weighted Weighted Outstanding at December 31, 2017 302,231 $ 17.25 4.11 Granted - - Exercised (8,801 ) 17.59 Forfeited - - Outstanding at March 31, 2018 293,430 $ 17.24 3.88 Exercisable at March 31, 2018 293,430 $ 17.24 |
Pension Information (Tables)
Pension Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic pension (benefit) cost | Three Months Ended March 31, 2018 2017 Interest Cost $ 33 $ 72 Expected return on plan assets (41 ) (80 ) Amortization of net loss 3 46 Settlement obligation - 105 Net periodic pension (benefit) cost $ (5 ) $ 143 |
Fair Value of Assets and Liab33
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Assets and Liabilities | |
Schedule of assets measured at fair value on a recurring basis | March 31, 2018: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ - $ 8,223 $ - $ 8,223 Corporate bonds - 2,258 - 2,258 Municipal obligations - 52,202 - 52,202 Total investment securities available for sale - 62,683 - 62,683 Equity securities available for sale 4,468 - - 4,468 Mortgage-backed securities available for sale - 80,059 - 80,059 Total recurring fair value measurements $ 4,468 $ 142,742 $ - $ 147,210 December 31, 2017: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ - $ 8,340 $ - $ 8,340 Corporate bonds - 2,272 - 2,272 Municipal obligations - 50,777 - 50,777 Equity securities 4,170 - - 4,170 Total investment securities available for sale 4,170 61,389 - 65,559 Mortgage-backed securities available for sale - 67,630 - 67,630 Total recurring fair value measurements $ 4,170 $ 129,019 $ - $ 133,189 |
Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy | March 31, 2018: Level 1 Level 2 Level 3 Total Foreclosed real estate $ - $ - $ 354 $ 354 Impaired loans - - 295 295 Total nonrecurring fair value measurements $ - $ - $ 649 $ 649 December 31, 2017: Level 1 Level 2 Level 3 Total Foreclosed real estate $ - $ - $ 419 $ 419 Impaired loans - - 295 295 Total nonrecurring fair value measurements $ - $ - $ 714 $ 714 |
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 March 31, December 31, Valuation Unobservable 2018 2017 Techniques Input Range Foreclosed real estate $ 354 $ 419 Appraisal of Appraisal adjustments (2) 0% to 40% collateral (1) Liquidation expenses (2) 0% to 10% Impaired loans $ 295 $ 295 Fair value of Appraisal adjustments (2) 0% to 20% collateral (1), (3) Liquidation expenses (2) 0% to 10% (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments | Carrying Estimated Level 1 Level 2 Level 3 March 31, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,453 $ 3,453 $ 3,453 $ - $ - Interest-earning deposits in other institutions (1) 10,777 10,777 10,777 - - Certificate of deposit (1) 499 499 499 - - Investment securities (2) 62,683 62,683 - 62,683 - Mortgage-backed securities (2) 80,059 80,059 - 80,059 - Equity Securities (3) 4,468 4,468 4,468 - - Federal Home Loan Bank stock (1) 9,420 9,420 9,420 - - Loans receivable (1) (4) 742,861 731,625 - - 731,625 Bank-owned life insurance (1) 22,171 22,171 22,171 - - Accrued interest receivable (1) 2,727 2,727 2,727 - - Financial Instruments - Liabilities: - Demand, savings and club accounts (1) $ 480,524 $ 480,524 $ 480,524 $ - $ - Certificate deposit accounts (1) 211,563 210,303 - - 210,303 Federal Home Loan Bank short-term borrowings (1) 22,883 22,883 22,883 - - Federal Home Loan Bank advances (1) 121,296 120,085 - - 120,085 Securities sold under agreements to repurchase (1) 4,559 4,559 4,559 - - Accrued interest payable (1) 946 946 946 - - December 31, 2017: Financial Instruments - Assets: Cash on hand and due from banks $ 3,523 $ 3,523 $ 3,523 $ - $ - Interest-earning deposits in other institutions 12,742 12,742 12,742 - - Certificate of deposit 749 749 749 - - Investment securities 65,559 65,559 4,170 61,389 - Mortgage-backed securities 67,630 67,630 - 67,630 - Federal Home Loan Bank stock 9,468 9,468 9,468 - - Loans receivable 747,035 747,371 - - 747,371 Bank-owned life insurance 22,040 22,040 22,040 - - Accrued interest receivable 2,657 2,657 2,657 - - Financial Instruments - Liabilities: - Demand, savings and club accounts $ 482,902 $ 482,902 $ 482,902 $ - $ - Certificate deposit accounts 211,944 211,454 - - 211,454 Federal Home Loan Bank short-term borrowings 27,021 27,021 27,021 - - Federal Home Loan Bank advances 107,652 107,223 - - 107,223 Securities sold under agreements to repurchase 4,240 4,240 4,240 - - Accrued interest payable 993 993 993 - - (1) The financial instrument is carried at amortized cost at March 31, 2018. (2) The financial instrument is carried at fair value through other comprehensive income at March 31, 2018. (3) The financial instrument is carried at fair value through net income at March 31, 2018. (4) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of March 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of December 31, 2017 $ 840 $ (312 ) $ 528 Other comprehensive income before reclassification (1,943 ) - (1,943 ) Amount reclassified from accumulated other comprehensive income - 2 2 Total other comprehensive income (1,943 ) 2 (1,941 ) Change in accounting principle for adoption of ASU 2016-01 (416 ) - (416 ) Balance as of March 31, 2018 $ (1,519 ) $ (310 ) $ (1,829 ) Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended March 31, 2018: Amortization of defined benefit items: Actuarial gains $ 3 Other operating expenses (1 ) Income tax expense (benefit) $ 2 Net of tax Total reclassification for the period $ 2 Net income |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of December 31, 2016 $ (31 ) $ (745 ) $ (776 ) Other comprehensive loss before reclassification 184 - 184 Amount reclassified from accumulated other comprehensive income 43 125 168 Total other comprehensive income 227 125 352 Balance as of March 31, 2017 $ 196 $ (620 ) $ (424 ) Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended March 31, 2017: Unrealized gains on available for sale securities $ (65 ) Net securities gains 22 Income tax expense $ (43 ) Net of tax Amortization of defined benefit items: Actuarial gains $ (46 ) Compensation and employee benefits Distribution settlement (144 ) Compensation and employee benefits 65 Income tax expense $ (125 ) Net of tax Total reclassification for the period $ (168 ) Net income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of noninterest income, segregated by revenue | Three Months Ended March 31, 2018 2017 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 607 $ 337 Investment management fees 132 72 Noninterest income (in-scope of Topic 606) 739 409 Noninterest income (out-of-scope of Topic 606) 370 108 Total noninterest income $ 1,109 $ 517 |
Merger with Allegheny Valley 36
Merger with Allegheny Valley Bancorp, Inc. (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of merger with Allegheny Valley | Purchase Price Consideration in Common Stock AVLY common shares settled for stock 1,040,924 Exchange Ratio 2.083 Standard AVB Financial Corp. shares issued 2,168,097 Value assigned to Standard AVB Financial common share $ 26.60 Purchase price per share $ 55.41 Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. $ 57,672 Net Assets Acquired: AVLY shareholders' equity 48,398 AVLY Goodwill (8,144 ) Total tangible equity 40,254 Adjustments to reflect assets acquired at fair value: Loans Interest rate (861 ) General Credit (3,851 ) Specific Credit-non amortizing (2,467 ) Elimination of existing loan ALLL 3,886 Certificates of Deposit Yield Premium (902 ) Core Deposit Intangible 4,116 Fixed assets 384 Deferred Tax Asset (103 ) 40,456 Goodwill resulting from the merger $ 17,216 |
Schedule of condensed statement reflects the values assigned to Allegheny Valley | Total Purchase Price $ 57,672 Net Assets Acquired: Cash 9,611 Securities available for sale 95,919 Loan 311,736 Premises 4,434 Accrued Interest receivable 1,144 Bank-owned life insurance 6,486 Deferred tax assets - Core deposit intangible 4,116 Other assets 7,481 Time deposits (70,422 ) Deposits other than time deposits (263,522 ) Borrowings (64,624 ) Accrued interest payable and other liabilities (1,903 ) 40,456 Goodwill resulting from the AVLY merger $ 17,216 |
Schedule of estimated future amortization expense | 2018 $ 579 2019 628 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 3,087 |
Schedule of merger and acquisition costs and amortization of fair value adjustments | Actual Proforma For the three For the three months ended months ended March 31, 2018 March 31, 2017 Net interest income $ 7,407 $ 7,086 Noninterest income 1,109 977 Net income 2,160 963 Pro forma earnings per share: Basic $ 0.47 $ 0.21 Diluted $ 0.46 $ 0.21 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings per Share | ||
Net income available to common stockholders | $ 2,160 | $ 563 |
Basic EPS: | ||
Weighted average shares outstanding | 4,622,384 | 2,415,829 |
Basic EPS | $ 0.47 | $ 0.23 |
Diluted EPS: | ||
Weighted average shares outstanding | 4,622,384 | 2,415,829 |
Diluted effect of common stock equivalents | 115,896 | 83,666 |
Total diluted weighted average shares outstanding | 4,738,280 | 2,499,495 |
Diluted EPS (in dollars per share) | $ 0.46 | $ 0.23 |
Recent Accounting Pronounceme38
Recent Accounting Pronouncements (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Recent Accounting Pronouncements | ||
Result of one time cumulative effect adjustment | $ 416,000 | $ 90,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment securities available for sale | ||
Investment securities available for sale | ||
Amortized Cost | $ 63,127 | $ 60,598 |
Gross Unrealized Gains | 455 | 937 |
Gross Unrealized Losses | (899) | (146) |
Fair Value | 62,683 | 61,389 |
U.S. government and agency obligations | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 7,407 | 7,400 |
Beyond 5 years but within 10 years | 935 | 934 |
Gross Unrealized Gains | ||
Beyond 1 year but within 5 years | 0 | 4 |
Beyond 5 years but within 10 years | 0 | 10 |
Gross Unrealized Losses | ||
Beyond 1 year but within 5 years | (99) | (8) |
Beyond 5 years but within 10 years | (20) | 0 |
Fair Value | ||
Beyond 1 year but within 5 years | 7,308 | 7,396 |
Beyond 5 years but within 10 years | 915 | 944 |
Corporate bonds | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 2,273 | 2,276 |
Gross Unrealized Gains | ||
Beyond 1 year but within 5 years | 12 | 14 |
Gross Unrealized Losses | ||
Beyond 1 year but within 5 years | (27) | (18) |
Fair Value | ||
Beyond 1 year but within 5 years | 2,258 | 2,272 |
Municipal obligations | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 9,264 | 8,702 |
Beyond 5 years but within 10 years | 25,238 | 25,803 |
Beyond 10 years | 18,010 | 15,483 |
Gross Unrealized Gains | ||
Beyond 1 year but within 5 years | 375 | 441 |
Beyond 5 years but within 10 years | 59 | 339 |
Beyond 10 years | 9 | 129 |
Gross Unrealized Losses | ||
Beyond 1 year but within 5 years | (14) | 0 |
Beyond 5 years but within 10 years | (290) | (21) |
Beyond 10 years | (449) | (99) |
Fair Value | ||
Beyond 1 year but within 5 years | 9,625 | 9,143 |
Beyond 5 years but within 10 years | 25,007 | 26,121 |
Beyond 10 years | $ 17,570 | $ 15,513 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 38,763 | $ 11,586 |
Less than 12 Months, Gross Unrealized Losses | (569) | (30) |
12 Months or More, Fair Value | 5,272 | 5,492 |
12 Months or More, Gross Unrealized Losses | (330) | (116) |
Total, Fair Value | 44,035 | 17,078 |
Total, Gross Unrealized Losses | (899) | (146) |
U.S. government and agency obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 8,223 | 5,924 |
Less than 12 Months, Gross Unrealized Losses | (119) | (8) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 8,223 | 5,924 |
Total, Gross Unrealized Losses | (119) | (8) |
Corporate bonds | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 745 | 751 |
Less than 12 Months, Gross Unrealized Losses | (7) | (3) |
12 Months or More, Fair Value | 995 | 1,001 |
12 Months or More, Gross Unrealized Losses | (20) | (15) |
Total, Fair Value | 1,740 | 1,752 |
Total, Gross Unrealized Losses | (27) | (18) |
Municipal obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 29,795 | 4,911 |
Less than 12 Months, Gross Unrealized Losses | (443) | (19) |
12 Months or More, Fair Value | 4,277 | 4,491 |
12 Months or More, Gross Unrealized Losses | (310) | (101) |
Total, Fair Value | 34,072 | 9,402 |
Total, Gross Unrealized Losses | $ (753) | $ (120) |
Investment Securities (Detail T
Investment Securities (Detail Textuals) $ in Millions | Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities held in an unrealized loss position | 19 | |
Investment securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities held in an unrealized loss position | 71 | |
Investment securities pledged to secure repurchase agreements and public funds accounts | $ | $ 17.2 | $ 16.4 |
Equity Securities (Details)
Equity Securities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Marketable Securities, Equity Securities [Abstract] | |
Net gains recognized in equity securities during the period | $ 50 |
Less: Net gains realized on the sale of equity securities during the period | 40 |
Unrealized gains recognized in equity securities held at reporting date | $ 10 |
Equity Securities (Detail Textu
Equity Securities (Detail Textuals) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)Security | |
Marketable Securities, Equity Securities [Abstract] | |
Net gains on sales of equities | $ 40 |
Proceeds from sale of equity | $ 178 |
Number of equity securities held in unrealized loss position | Security | 19 |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Amortized Cost | $ 81,538 | $ 67,884 |
Gross Unrealized Gains | 26 | 130 |
Gross Unrealized Losses | (1,505) | (384) |
Fair Value | 80,059 | 67,630 |
Government pass-throughs, Ginnie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 18,710 | 17,416 |
Gross Unrealized Gains | 2 | 6 |
Gross Unrealized Losses | (381) | (131) |
Fair Value | 18,331 | 17,291 |
Government pass-throughs, Fannie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 15,546 | 16,078 |
Gross Unrealized Gains | 13 | 75 |
Gross Unrealized Losses | (370) | (8) |
Fair Value | 15,189 | 16,145 |
Government pass-throughs, Freddie Mac | ||
Mortgage-backed securities | ||
Amortized Cost | 14,068 | 12,510 |
Gross Unrealized Gains | 0 | 41 |
Gross Unrealized Losses | (321) | (14) |
Fair Value | 13,747 | 12,537 |
Private pass-throughs | ||
Mortgage-backed securities | ||
Amortized Cost | 23,714 | 14,603 |
Gross Unrealized Gains | 11 | 8 |
Gross Unrealized Losses | (124) | (113) |
Fair Value | 23,601 | 14,498 |
Collateralized mortgage obligations | ||
Mortgage-backed securities | ||
Amortized Cost | 9,500 | 7,277 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (309) | (118) |
Fair Value | $ 9,191 | $ 7,159 |
Mortgage-Backed Securities (D45
Mortgage-Backed Securities (Details 1) - Mortgage-backed securities - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized cost by contractual maturity: | ||
Due after five years through ten years | $ 7,330 | |
Due after ten years | 74,208 | |
Amortized Cost | 81,538 | $ 67,884 |
Fair value by contractual maturity: | ||
Due after five years through ten years | 7,298 | |
Due after ten years | 72,761 | |
Fair Value | $ 80,059 | $ 67,630 |
Mortgage-Backed Securities (D46
Mortgage-Backed Securities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage-backed securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 69,886 | $ 39,934 |
Less than 12 Months, Gross Unrealized Losses | (1,364) | (301) |
12 Months or More, Fair Value | 3,460 | 3,782 |
12 Months or More, Gross Unrealized Losses | (141) | (83) |
Total, Fair Value | 73,346 | 43,716 |
Total, Gross Unrealized Losses | (1,505) | (384) |
Government pass-throughs, Ginnie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 15,680 | 12,231 |
Less than 12 Months, Gross Unrealized Losses | (308) | (87) |
12 Months or More, Fair Value | 2,350 | 2,591 |
12 Months or More, Gross Unrealized Losses | (73) | (44) |
Total, Fair Value | 18,030 | 14,822 |
Total, Gross Unrealized Losses | (381) | (131) |
Government pass-throughs, Fannie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 14,512 | 3,227 |
Less than 12 Months, Gross Unrealized Losses | (370) | (8) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 14,512 | 3,227 |
Total, Gross Unrealized Losses | (370) | (8) |
Government pass-throughs, Freddie Mac | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 13,742 | 5,949 |
Less than 12 Months, Gross Unrealized Losses | (321) | (14) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 13,742 | 5,949 |
Total, Gross Unrealized Losses | (321) | (14) |
Private pass-throughs | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 17,871 | 12,559 |
Less than 12 Months, Gross Unrealized Losses | (124) | (113) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 17,871 | 12,559 |
Total, Gross Unrealized Losses | (124) | (113) |
Collateralized mortgage obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 8,081 | 5,968 |
Less than 12 Months, Gross Unrealized Losses | (241) | (79) |
12 Months or More, Fair Value | 1,110 | 1,191 |
12 Months or More, Gross Unrealized Losses | (68) | (39) |
Total, Fair Value | 9,191 | 7,159 |
Total, Gross Unrealized Losses | $ (309) | $ (118) |
Mortgage-Backed Securities (D47
Mortgage-Backed Securities (Detail Textuals) $ in Millions | Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Mortgage-backed securities | ||
Number of mortgage-backed securities held in an unrealized loss position | 19 | |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Number of mortgage-backed securities held in an unrealized loss position | 62 | |
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ | $ 24.1 | $ 25.5 |
Loans Receivable and Related 48
Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 746,751 | $ 750,867 |
Individually evaluated for impairment | 295 | 295 |
Total loans before allowance for loan losses | 747,046 | 751,162 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 259,449 | 261,715 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 259,449 | 261,715 |
Real Estate Loans | Commercial Real Estate | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 306,190 | 300,702 |
Individually evaluated for impairment | 295 | 295 |
Total loans before allowance for loan losses | 306,485 | 300,997 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 128,294 | 130,915 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 128,294 | 130,915 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 51,539 | 56,122 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 51,539 | 56,122 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 1,279 | 1,413 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | $ 1,279 | $ 1,413 |
Loans Receivable and Related 49
Loans Receivable and Related Allowance for Loan Losses (Details 1) $ in Thousands | Apr. 07, 2017USD ($) |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | $ 311,736 |
Real Estate Loans | One-to-four-family Residential and Construction | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 66,995 |
Real Estate Loans | Commercial Real Estate | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 160,626 |
Real Estate Loans | Home Equity Loans and Lines of Credit | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 51,759 |
Commercial Business | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 26,841 |
Other Loans | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | $ 5,515 |
Loans Receivable and Related 50
Loans Receivable and Related Allowance for Loan Losses (Details 2) $ in Thousands | Mar. 31, 2018USD ($) |
Receivables [Abstract] | |
Contractually required principal and interest | $ 2,467 |
Non-accretable discount | (2,467) |
Expected cash flows | 0 |
Accretable discount | 0 |
Estimated fair value | $ 0 |
Loans Receivable and Related 51
Loans Receivable and Related Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Impaired Loans | |||
Impaired Loans With Allowance, Recorded Investment | $ 0 | $ 0 | |
Impaired Loans With Allowance, Related Allowance | 0 | 0 | |
Total Impaired Loans, Recorded Investment | 295 | 295 | |
Impaired loans without allowance recorded investment | 295 | 295 | |
Total Impaired Loans, Unpaid Principal Balance | 295 | 295 | |
Average investment in impaired loans | 295 | $ 445 | |
Interest income recognized on impaired loans | 0 | 0 | |
Real Estate Loans | Commercial real estate | |||
Impaired Loans | |||
Impaired Loans With Allowance, Recorded Investment | 0 | 0 | |
Impaired Loans With Allowance, Related Allowance | 0 | 0 | |
Total Impaired Loans, Recorded Investment | 295 | 295 | |
Impaired loans without allowance recorded investment | 295 | 295 | |
Total Impaired Loans, Unpaid Principal Balance | 295 | $ 295 | |
Average investment in impaired loans | $ 295 | $ 445 |
Loans Receivable and Related 52
Loans Receivable and Related Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 747,046 | $ 751,162 |
Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 738,561 | 742,679 |
Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 5,392 | 5,527 |
Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 3,093 | 2,956 |
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 | 259,449 | 261,715 |
Real Estate Loans | One-to-four-family residential and construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 257,291 | 259,463 |
Real Estate Loans | One-to-four-family residential and construction | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 140 | 211 |
Real Estate Loans | One-to-four-family residential and construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,018 | 2,041 |
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 | 306,485 | 300,997 |
Real Estate Loans | Commercial real estate | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 300,703 | 295,164 |
Real Estate Loans | Commercial real estate | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 4,949 | 5,077 |
Real Estate Loans | Commercial real estate | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 833 | 756 |
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 | 128,294 | 130,915 |
Real Estate Loans | Home equity loans and lines of credit | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 127,994 | 130,763 |
Real Estate Loans | Home equity loans and lines of credit | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 66 | 0 |
Real Estate Loans | Home equity loans and lines of credit | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 234 | 152 |
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 loans | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 51,539 | 56,122 |
Commercial business loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 51,297 | 55,878 |
Commercial business loans | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 237 | 239 |
Commercial business loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 5 | 5 |
Commercial business loans | 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 | 1,279 | 1,413 |
Other loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,276 | 1,411 |
Other loans | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Other loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 3 | 2 |
Other loans | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 0 | $ 0 |
Loans Receivable and Related 53
Loans Receivable and Related Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 742,715 | $ 745,883 |
90 Days Past Due and Accruing | 32 | 19 |
Total loans before allowance for loan losses | 747,046 | 751,162 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 1,352 | 1,899 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 7 | 454 |
Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 2,940 | 2,907 |
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 | 256,630 | 258,202 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 259,449 | 261,715 |
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 | 851 | 1,342 |
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 | 0 | 272 |
Real Estate Loans | One-to-four-family Residential and Construction | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 1,968 | 1,899 |
Real Estate Loans | Commercial real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 305,335 | 299,888 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 306,485 | 300,997 |
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 | 420 | 338 |
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 | 15 |
Real Estate Loans | Commercial real estate | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 730 | 756 |
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 | 128,034 | 130,383 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 128,294 | 130,915 |
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 | 26 | 122 |
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 | 166 |
Real Estate Loans | Home equity loans and lines of credit | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 234 | 244 |
Commercial business loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 51,495 | 56,034 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 51,539 | 56,122 |
Commercial business loans | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 34 | 83 |
Commercial business loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 5 | 0 |
Commercial business loans | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 5 | 5 |
Other loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 1,221 | 1,376 |
90 Days Past Due and Accruing | 32 | 19 |
Total loans before allowance for loan losses | 1,279 | 1,413 |
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 | 21 | 14 |
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 | 2 | 1 |
Other loans | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | $ 3 | $ 3 |
Loans Receivable and Related 54
Loans Receivable and Related Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses | ||||
Balance at the beginning of the period | $ 4,127 | $ 3,837 | ||
Charge-offs | (11) | (60) | ||
Recoveries | 69 | 0 | ||
Provision for Loan Losses | 0 | 0 | ||
Balance at the end of the period | 4,185 | 3,777 | ||
Evaluated for Impairment: | ||||
Individually evaluated for impairment | $ 0 | $ 0 | ||
Collectively evaluated for impairment | 4,185 | 4,127 | ||
Balance at the end of the period | 4,127 | 3,837 | 4,185 | 4,127 |
Real Estate Loans | One-to-four-family Residential and Construction | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 1,384 | 1,280 | ||
Charge-offs | 0 | (41) | ||
Recoveries | 69 | 0 | ||
Provision for Loan Losses | (54) | 60 | ||
Balance at the end of the period | 1,399 | 1,299 | ||
Evaluated for Impairment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,399 | 1,384 | ||
Balance at the end of the period | 1,384 | 1,280 | 1,399 | 1,384 |
Real Estate Loans | Commercial Real Estate | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 2,003 | 1,787 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for Loan Losses | 119 | (100) | ||
Balance at the end of the period | 2,122 | 1,687 | ||
Evaluated for Impairment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,122 | 2,003 | ||
Balance at the end of the period | 2,003 | 1,787 | 2,122 | 2,003 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 400 | 547 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for Loan Losses | (10) | (15) | ||
Balance at the end of the period | 390 | 532 | ||
Evaluated for Impairment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 390 | 400 | ||
Balance at the end of the period | 400 | 547 | 390 | 400 |
Commercial Business | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 333 | 211 | ||
Charge-offs | (9) | (1) | ||
Recoveries | 0 | 0 | ||
Provision for Loan Losses | (54) | 45 | ||
Balance at the end of the period | 270 | 255 | ||
Evaluated for Impairment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 270 | 333 | ||
Balance at the end of the period | 333 | 211 | 270 | 333 |
Other Loans | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 7 | 12 | ||
Charge-offs | (2) | (18) | ||
Recoveries | 0 | 0 | ||
Provision for Loan Losses | (1) | 10 | ||
Balance at the end of the period | 4 | 4 | ||
Evaluated for Impairment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4 | 7 | ||
Balance at the end of the period | $ 7 | $ 12 | $ 4 | $ 7 |
Loans Receivable and Related 55
Loans Receivable and Related Allowance for Loan Losses (Detail Textuals) | 3 Months Ended | |
Mar. 31, 2018USD ($)SecurityLoan | Dec. 31, 2017USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Deferred loan costs of loans receivable | $ 267,000 | $ 276,000 |
Acquisition of Allegheny Valley | 2,500,000 | |
Recorded specific credit fair value adjustment | 2,467,000 | |
Outstanding balance of loans acquired from Allegheny Valley | 0 | |
Carrying value of loans acquired from Allegheny Valley | 0 | |
Possible impairment of past due troubled debt restructuring | $ 200,000 | |
Past due period for troubled debt restructuring | 90 days | |
Threshold limit of watch list loans | $ 100,000 | |
Number of loans on non-accrual status | Loan | 11 | |
Minimum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of semi annual review loan relationship | Security | 50 | |
Amount of new loan originations limit | $ 200,000 | |
Maximum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of semi annual review loan relationship | Security | 60 | |
Amount of new loan originations limit | $ 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 Sa56
Foreclosed Assets Held For Sale (Detail Textuals) | Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 704,000 | |
Other Assets | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | $ 354,000 | $ 419,000 |
Residential property | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Number of properties | Security | 2 | |
One-to-four family residential loans | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 188,000 | |
Home equity loans and lines of credit | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | 53,000 | |
Commercial real estate | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 463,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 25, 2012 | Mar. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Exercised (in shares) | (8,801) | ||
Weighted Average Exercise Price | |||
Granted (in dollars per share) | $ 16.50 | ||
Employee Stock Option | |||
Options | |||
Outstanding at December 31, 2017 (in shares) | 302,231 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (8,801) | ||
Forfeited (in shares) | 0 | ||
Outstanding at March 31, 2018 (in shares) | 293,430 | 302,231 | |
Exercisable at March 31, 2018 (in shares) | 293,430 | ||
Weighted Average Exercise Price | |||
Outstanding at December 31, 2017 (in dollars per share) | $ 17.25 | ||
Granted (in dollars per share) | 0 | ||
Exercise price (in dollars per share) | 17.59 | ||
Forfeited (in dollars per share) | 0 | ||
Outstanding at March 31, 2018 (in dollars per share) | 17.24 | $ 17.25 | |
Exercisable at March 31, 2018 (in dollars per share) | $ 17.24 | ||
Weighted Average Remaining Contractual Term | 10 years | 3 years 10 months 17 days | 4 years 1 month 10 days |
Stock Based Compensation (Det58
Stock Based Compensation (Detail Textuals) - USD ($) | Apr. 10, 2017 | Apr. 07, 2017 | Jul. 25, 2012 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Stock Based Compensation | ||||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 486,943 | |||||
Vesting period | 5 years | |||||
Vesting percentage per year | 20.00% | |||||
Compensation expense | $ 109,000 | $ 95,000 | ||||
Number of additional shares authorized | 77,634 | |||||
Number of shares expired | 249 | |||||
Original term under the plan | 10 years | |||||
Common stock price (in dollars per share) | $ 16.50 | |||||
Employee Stock Option | ||||||
Stock Based Compensation | ||||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 347,817 | |||||
Contractual life of stock options | 10 years | 3 years 10 months 17 days | 4 years 1 month 10 days | |||
Number of shares available to be issued | 69,742 | |||||
Estimated fair value of stock options before income taxes | $ 423,000 | |||||
Weighted-average fair value of stock options granted (in dollars per share) | $ 1.52 | |||||
Expected life | 7 years 6 months | |||||
Expected dividend rate (as a percent) | 1.13% | |||||
Risk-free interest rate (as a percent) | 1.10% | |||||
Expected volatility (as a percent) | 9.50% | |||||
Compensation expense | 19,000 | |||||
Tax benefit recorded related to compensation expense | 2,000 | |||||
Common stock price (in dollars per share) | $ 0 | |||||
Employee Stock Option | Directors and officers | ||||||
Stock Based Compensation | ||||||
Number of shares granted | 278,075 | |||||
Restricted stock | ||||||
Stock Based Compensation | ||||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 139,126 | |||||
Vesting period | 5 years | |||||
Number of shares available to be issued | 27,826 | |||||
Compensation expense | 91,000 | |||||
Tax benefit recorded related to compensation expense | $ 31,000 | |||||
Fair value of restricted stock awards before income taxes | $ 1,800,000 | |||||
Restricted stock | Directors and officers | ||||||
Stock Based Compensation | ||||||
Number of shares granted | 111,300 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Detail Textuals) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | $ 109,000 | $ 95,000 |
Total shares held by ESOP | 260,909 | |
Unallocated shares | 173,458 | |
Fair market value of the unallocated ESOP shares | $ 5,200,000 |
Pension Information (Details)
Pension Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | ||
Interest Cost | $ 33 | $ 72 |
Expected return on plan assets | (41) | (80) |
Amortization of net loss | 3 | 46 |
Settlement obligation | 0 | 105 |
Net periodic pension (benefit) cost | $ (5) | $ 143 |
Fair Value of Assets and Liab61
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | ||
Assets measured at fair value | ||||
Equity securities available for sale | $ 4,468 | |||
Mortgage-backed securities available for sale | 80,059 | $ 67,630 | ||
Total | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 62,683 | [1] | 65,559 | |
Equity securities available for sale | [2] | 4,468 | ||
Mortgage-backed securities available for sale | 80,059 | [1] | 67,630 | |
Total | Level 1 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | [1] | 4,170 | |
Equity securities available for sale | [2] | 4,468 | ||
Mortgage-backed securities available for sale | 0 | [1] | 0 | |
Total | Level 2 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 62,683 | [1] | 61,389 | |
Equity securities available for sale | [2] | 0 | ||
Mortgage-backed securities available for sale | 80,059 | [1] | 67,630 | |
Total | Level 3 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | [1] | 0 | |
Equity securities available for sale | [2] | 0 | ||
Mortgage-backed securities available for sale | 0 | [1] | 0 | |
Recurring basis | Level 1 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | |||
Recurring basis | Level 1 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | |||
Recurring basis | Level 1 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | |||
Recurring basis | Level 1 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | |||
Recurring basis | Level 1 | Equity securities | ||||
Assets measured at fair value | ||||
Mortgage-backed securities available for sale | 0 | |||
Total recurring fair value measurements | 4,468 | |||
Recurring basis | Level 2 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 8,223 | |||
Recurring basis | Level 2 | Corporate bonds | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 2,258 | |||
Recurring basis | Level 2 | Municipal obligations | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 52,202 | |||
Recurring basis | Level 2 | Equity securities | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 0 | |||
Mortgage-backed securities available for sale | 80,059 | |||
Total recurring fair value measurements | 142,742 | |||
Recurring basis | Level 3 | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 0 | |||
Mortgage-backed securities available for sale | 0 | |||
Total recurring fair value measurements | 0 | |||
Recurring basis | Level 3 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 0 | |||
Recurring basis | Level 3 | Corporate bonds | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 0 | |||
Recurring basis | Level 3 | Municipal obligations | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 0 | |||
Recurring basis | Level 3 | Equity securities | ||||
Assets measured at fair value | ||||
Equity securities available for sale | 0 | |||
Recurring basis | Total | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 62,683 | 65,559 | ||
Equity securities available for sale | 4,468 | |||
Mortgage-backed securities available for sale | 80,059 | 67,630 | ||
Total recurring fair value measurements | 147,210 | 133,189 | ||
Recurring basis | Total | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 8,223 | 8,340 | ||
Recurring basis | Total | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 2,258 | 2,272 | ||
Recurring basis | Total | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 52,202 | 50,777 | ||
Recurring basis | Total | Equity securities | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 4,170 | |||
Recurring basis | Total | Level 1 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 4,170 | ||
Equity securities available for sale | 4,468 | |||
Mortgage-backed securities available for sale | 0 | 0 | ||
Total recurring fair value measurements | 4,468 | 4,170 | ||
Recurring basis | Total | Level 1 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Total | Level 1 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Total | Level 1 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Total | Level 1 | Equity securities | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 4,170 | |||
Recurring basis | Total | Level 2 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 62,683 | 61,389 | ||
Equity securities available for sale | 0 | |||
Mortgage-backed securities available for sale | 80,059 | 67,630 | ||
Total recurring fair value measurements | 142,742 | 129,019 | ||
Recurring basis | Total | Level 2 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 8,223 | 8,340 | ||
Recurring basis | Total | Level 2 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 2,258 | 2,272 | ||
Recurring basis | Total | Level 2 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 52,202 | 50,777 | ||
Recurring basis | Total | Level 2 | Equity securities | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | |||
Recurring basis | Total | Level 3 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Equity securities available for sale | 0 | |||
Mortgage-backed securities available for sale | 0 | 0 | ||
Total recurring fair value measurements | 0 | 0 | ||
Recurring basis | Total | Level 3 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Total | Level 3 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Total | Level 3 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | $ 0 | 0 | ||
Recurring basis | Total | Level 3 | Equity securities | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | $ 0 | |||
[1] | The financial instrument is carried at fair value through other comprehensive income at March 31, 2018. | |||
[2] | The financial instrument is carried at fair value through net income at March 31, 2018. |
Fair Value of Assets and Liab62
Fair Value of Assets and Liabilities (Details 1) - Nonrecurring basis - Total - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 649 | $ 714 |
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 | 649 | 714 |
Foreclosed real estate | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 354 | 419 |
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 | 354 | 419 |
Impaired loans | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 295 | 295 |
Impaired loans | Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Impaired loans | Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Impaired loans | Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 295 | $ 295 |
Fair Value of Assets and Liab63
Fair Value of Assets and Liabilities (Details 2) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
Foreclosed real estate | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Estimate | $ 354 | $ 419 | |
Valuation Techniques | [1] | Appraisal of collateral | |
Unobservable Input | [2] | Appraisal adjustments Liquidation expenses | |
Foreclosed real estate | Minimum | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | 0.00% | ||
Liquidation expenses (as a percent) | 0.00% | ||
Foreclosed real estate | Maximum | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | 40.00% | ||
Liquidation expenses (as a percent) | 10.00% | ||
Impaired loans | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Estimate | $ 295 | $ 295 | |
Valuation Techniques | [1],[3] | Fair value of collateral | |
Unobservable Input | [2] | Appraisal adjustments Liquidation expenses | |
Impaired loans | Minimum | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | 0.00% | ||
Liquidation expenses (as a percent) | 0.00% | ||
Impaired loans | Maximum | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | 20.00% | ||
Liquidation expenses (as a percent) | 10.00% | ||
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[3] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value of Assets and Liab64
Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | ||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | $ 3,453 | $ 3,523 | ||
Interest-earning deposits in other institutions | 10,777 | 12,742 | ||
Mortgage-backed securities | 80,059 | 67,630 | ||
Equity Securities | 4,468 | |||
Bank-owned life insurance | 22,171 | 22,040 | ||
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 480,524 | 482,902 | ||
Certificate deposit accounts | 211,563 | 211,944 | ||
Federal Home Loan Bank short-term borrowings | 22,883 | 27,021 | ||
Carrying Amount | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 3,453 | [1] | 3,523 | |
Interest-earning deposits in other institutions | 10,777 | [1] | 12,742 | |
Certificate of deposit | 499 | [1] | 749 | |
Investment securities | 62,683 | [2] | 65,559 | |
Mortgage-backed securities | 80,059 | [2] | 67,630 | |
Equity Securities | [3] | 4,468 | ||
Federal Home Loan Bank stock | 9,420 | [1] | 9,468 | |
Loans receivable | 742,861 | [1],[4] | 747,035 | |
Bank-owned life insurance | 22,171 | [1] | 22,040 | |
Accrued interest receivable | 2,727 | [1] | 2,657 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 480,524 | [1] | 482,902 | |
Certificate deposit accounts | 211,563 | [1] | 211,944 | |
Federal Home Loan Bank short-term borrowings | 22,883 | [1] | 27,021 | |
Federal Home Loan Bank advances | 121,296 | [1] | 107,652 | |
Securities sold under agreements to repurchase | 4,559 | [1] | 4,240 | |
Accrued interest payable | 946 | [1] | 993 | |
Fair Value | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 3,453 | [1] | 3,523 | |
Interest-earning deposits in other institutions | 10,777 | [1] | 12,742 | |
Certificate of deposit | 499 | [1] | 749 | |
Investment securities | 62,683 | [2] | 65,559 | |
Mortgage-backed securities | 80,059 | [2] | 67,630 | |
Equity Securities | [3] | 4,468 | ||
Federal Home Loan Bank stock | 9,420 | [1] | 9,468 | |
Loans receivable | 731,625 | [1],[4] | 747,371 | |
Bank-owned life insurance | 22,171 | [1] | 22,040 | |
Accrued interest receivable | 2,727 | [1] | 2,657 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 480,524 | [1] | 482,902 | |
Certificate deposit accounts | 210,303 | [1] | 211,454 | |
Federal Home Loan Bank short-term borrowings | 22,883 | [1] | 27,021 | |
Federal Home Loan Bank advances | 120,085 | [1] | 107,223 | |
Securities sold under agreements to repurchase | 4,559 | [1] | 4,240 | |
Accrued interest payable | 946 | [1] | 993 | |
Fair Value | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 3,453 | [1] | 3,523 | |
Interest-earning deposits in other institutions | 10,777 | [1] | 12,742 | |
Certificate of deposit | 499 | [1] | 749 | |
Investment securities | 0 | [2] | 4,170 | |
Mortgage-backed securities | 0 | [2] | 0 | |
Equity Securities | [3] | 4,468 | ||
Federal Home Loan Bank stock | 9,420 | [1] | 9,468 | |
Loans receivable | 0 | [1],[4] | 0 | |
Bank-owned life insurance | 22,171 | [1] | 22,040 | |
Accrued interest receivable | 2,727 | [1] | 2,657 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 480,524 | [1] | 482,902 | |
Certificate deposit accounts | 0 | [1] | 0 | |
Federal Home Loan Bank short-term borrowings | 22,883 | [1] | 27,021 | |
Federal Home Loan Bank advances | 0 | [1] | 0 | |
Securities sold under agreements to repurchase | 4,559 | [1] | 4,240 | |
Accrued interest payable | 946 | [1] | 993 | |
Fair Value | Significant Other Observable Inputs (Level 2) | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 0 | [1] | 0 | |
Interest-earning deposits in other institutions | 0 | [1] | 0 | |
Certificate of deposit | 0 | [1] | 0 | |
Investment securities | 62,683 | [2] | 61,389 | |
Mortgage-backed securities | 80,059 | [2] | 67,630 | |
Equity Securities | [3] | 0 | ||
Federal Home Loan Bank stock | 0 | [1] | 0 | |
Loans receivable | 0 | [1],[4] | 0 | |
Bank-owned life insurance | 0 | [1] | 0 | |
Accrued interest receivable | 0 | [1] | 0 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 0 | [1] | 0 | |
Certificate deposit accounts | 0 | [1] | 0 | |
Federal Home Loan Bank short-term borrowings | 0 | [1] | 0 | |
Federal Home Loan Bank advances | 0 | [1] | 0 | |
Securities sold under agreements to repurchase | 0 | [1] | 0 | |
Accrued interest payable | 0 | [1] | 0 | |
Fair Value | Significant Unobservable Inputs (Level 3) | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 0 | [1] | 0 | |
Interest-earning deposits in other institutions | 0 | [1] | 0 | |
Certificate of deposit | 0 | [1] | 0 | |
Investment securities | 0 | [2] | 0 | |
Mortgage-backed securities | 0 | [2] | 0 | |
Equity Securities | [3] | 0 | ||
Federal Home Loan Bank stock | 0 | [1] | 0 | |
Loans receivable | 731,625 | [1],[4] | 747,371 | |
Bank-owned life insurance | 0 | [1] | 0 | |
Accrued interest receivable | 0 | [1] | 0 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 0 | [1] | 0 | |
Certificate deposit accounts | 210,303 | [1] | 211,454 | |
Federal Home Loan Bank short-term borrowings | 0 | [1] | 0 | |
Federal Home Loan Bank advances | 120,085 | [1] | 107,223 | |
Securities sold under agreements to repurchase | 0 | [1] | 0 | |
Accrued interest payable | $ 0 | [1] | $ 0 | |
[1] | The financial instrument is carried at amortized cost at March 31, 2018. | |||
[2] | The financial instrument is carried at fair value through other comprehensive income at March 31, 2018. | |||
[3] | The financial instrument is carried at fair value through net income at March 31, 2018. | |||
[4] | In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of March 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | $ 528 | $ (776) |
Other comprehensive income (loss) before reclassification | (1,943) | 184 |
Amount reclassified from accumulated other comprehensive income (loss) | 2 | 168 |
Total other comprehensive income (loss) | (1,941) | 352 |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |
Balance at the end of the period | (1,829) | (424) |
Unrealized Gains on Available for Sale Securities | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | 840 | (31) |
Other comprehensive income (loss) before reclassification | (1,943) | 184 |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 43 |
Total other comprehensive income (loss) | (1,943) | 227 |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |
Balance at the end of the period | (1,519) | 196 |
Unrecognized Pension Costs | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | (312) | (745) |
Other comprehensive income (loss) before reclassification | 0 | 0 |
Amount reclassified from accumulated other comprehensive income (loss) | 2 | 125 |
Total other comprehensive income (loss) | 2 | 125 |
Change in accounting principle for adoption of ASU 2016-01 | 0 | |
Balance at the end of the period | (310) | (620) |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Changes in accumulated other comprehensive income by component | ||
Amount reclassified from accumulated other comprehensive income (loss) | 2 | (168) |
Unrealized gains on available for sale securities, net securities gains | (65) | |
Unrealized gains on available for sale securities, income tax expense | 22 | |
Unrealized gains on available for sale securities, net of tax | (43) | |
Amortization of defined benefit items: Actuarial gains | 3 | (46) |
Amortization of defined benefit distribution settlement | (144) | |
Amortization of defined benefit distribution settlement, Income tax expense | (1) | 65 |
Amortization of defined benefit distribution settlement net of tax | $ 2 | $ (125) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Noninterest Income [Abstract] | ||
Service charges on deposit accounts | $ 607 | $ 337 |
Investment Management Fees | 132 | 72 |
Noninterest income (in-scope of Topic 606) | 739 | 409 |
Noninterest income (out-of-scope of Topic 606) | 370 | 108 |
Total noninterest income | $ 1,109 | $ 517 |
Merger with Allegheny Valley 67
Merger with Allegheny Valley Bancorp, Inc. (Details) $ / shares in Units, $ in Thousands | Apr. 07, 2017USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Loans | |||
Goodwill resulting from the merger | $ 25,836 | $ 25,836 | |
Allegheny Valley | |||
Purchase Price Consideration in Common Stock | |||
AVLY common shares settled for stock | shares | 1,040,924 | ||
Exchange Ratio | 2.083 | ||
Standard AVB Financial Corp. shares issued | shares | 2,168,097 | ||
Value assigned to Standard AVB Financial common share | $ / shares | $ 26.60 | ||
Purchase price per share | $ / shares | $ 55.41 | ||
Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. | $ 57,672 | ||
Net Assets Acquired: | |||
AVLY shareholders' equity | 48,398 | ||
AVLY Goodwill | (8,144) | ||
Total tangible equity | 40,254 | ||
Loans | |||
Interest rate | (861) | ||
General Credit | (3,851) | ||
Specific Credit-non amortizing | (2,467) | ||
Elimination of existing loan ALLL | 3,886 | ||
Certificates of Deposit Yield Premium | (902) | ||
Core Deposit Intangible | 4,116 | ||
Fixed assets | 384 | ||
Deferred Tax Asset | (103) | ||
Adjustments to reflect assets acquired at fair value | 40,456 | ||
Goodwill resulting from the merger | $ 17,216 | $ 17,100 |
Merger with Allegheny Valley 68
Merger with Allegheny Valley Bancorp, Inc. (Details 1) - USD ($) $ in Thousands | Apr. 07, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Net Assets Acquired: | |||
Goodwill resulting from the AVLY merger | $ 25,836 | $ 25,836 | |
Allegheny Valley | |||
Business Acquisition [Line Items] | |||
Total Purchase Price | $ 57,672 | ||
Net Assets Acquired: | |||
Cash | 9,611 | ||
Securities available for sale | 95,919 | ||
Loan | 311,736 | ||
Premises | 4,434 | ||
Accrued Interest receivable | 1,144 | ||
Bank-owned life insurance | 6,486 | ||
Deferred tax assets | 0 | ||
Core deposit intangible | 4,116 | ||
Other assets | 7,481 | ||
Time deposits | (70,422) | ||
Deposits other than time deposits | (263,522) | ||
Borrowings | (64,624) | ||
Accrued interest payable and other liabilities | (1,903) | ||
Net assets | 40,456 | ||
Goodwill resulting from the AVLY merger | $ 17,216 | $ 17,100 |
Merger with Allegheny Valley 69
Merger with Allegheny Valley Bancorp, Inc. (Details 2) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Total | $ 3,087 | $ 3,344 |
Allegheny Valley | Core deposit intangible | ||
Business Acquisition [Line Items] | ||
2,018 | 579 | |
2,019 | 628 | |
2,020 | 472 | |
2,021 | 352 | |
2,022 | 325 | |
2,023 | 325 | |
2,024 | 325 | |
2,025 | 81 | |
Total | $ 3,087 |
Merger with Allegheny Valley 70
Merger with Allegheny Valley Bancorp, Inc. (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 9,038 | $ 4,154 |
Noninterest income | 1,109 | 517 |
Net income | 2,160 | 563 |
Allegheny Valley | ||
Business Acquisition [Line Items] | ||
Net interest income | 7,407 | 7,086 |
Noninterest income | 1,109 | 977 |
Net income | $ 2,160 | $ 963 |
Pro forma earnings per share: | ||
Basic | $ 0.47 | $ 0.21 |
Diluted | $ 0.46 | $ 0.21 |
Merger with Allegheny Valley 71
Merger with Allegheny Valley Bancorp, Inc. (Detail Textuals) - USD ($) | Apr. 07, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Purchased credit impaired loans | $ 2,500,000 | ||
Goodwill resulting from the AVLY merger | 25,836,000 | $ 25,836,000 | |
Core deposit intangible | 3,087,000 | $ 3,344,000 | |
Allegheny Valley | |||
Business Acquisition [Line Items] | |||
Number of shares received under merger agreement | 2.083 | ||
Outstanding shares of Allegheny Valley common stock | 1,040,924 | ||
Common stock issued for exchange | 2,168,097 | ||
Per share price for fractional shares | $ 26.60 | ||
Purchased credit impaired loans | $ 2,467,000 | ||
Percentage reserved for collection of principal and interest on loans | 100.00% | ||
Loan portfolio without evidence of deterioration | $ 316,448,000 | ||
Fair value of loan | 311,736,000 | ||
Interest rate adjustment | 861,000 | ||
General credit adjustment | 3,851,000 | ||
Goodwill and other intangible assets | 21,300,000 | ||
Goodwill resulting from the AVLY merger | $ 17,216,000 | 17,100,000 | |
Allegheny Valley | Core deposit intangible | |||
Business Acquisition [Line Items] | |||
Core deposit intangible | 3,087,000 | ||
Accumulated amortization of core deposit intangible | $ 1,000,000 |