Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 07, 2018 | |
Document and Entity Information [Abstract] | ||
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 | 4,796,896 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash on hand and due from banks | $ 3,171 | $ 3,523 |
Interest-earning deposits in other institutions | 24,810 | 12,742 |
Cash and Cash Equivalents | 27,981 | 16,265 |
Investment securities available for sale, at fair value | 58,377 | 65,559 |
Equity securities, at fair value | 4,609 | |
Mortgage-backed securities available for sale, at fair value | 82,784 | 67,630 |
Certificate of deposit | 499 | 749 |
Federal Home Loan Bank stock, at cost | 8,535 | 9,468 |
Loans receivable, net of allowance for loan losses of $4,360 and $4,127 | 734,875 | 747,035 |
Foreclosed real estate | 354 | 419 |
Office properties and equipment, net | 7,932 | 8,191 |
Bank-owned life insurance | 22,304 | 22,040 |
Goodwill | 25,836 | 25,836 |
Core deposit intangible | 2,894 | 3,344 |
Accrued interest receivable and other assets | 5,958 | 6,064 |
TOTAL ASSETS | 982,938 | 972,600 |
Deposits: | ||
Demand, savings and club accounts | 489,994 | 482,902 |
Certificate accounts | 228,728 | 211,944 |
Total Deposits | 718,722 | 694,846 |
Federal Home Loan Bank short-term borrowings | 27,021 | |
Federal Home Loan Bank advances | 121,103 | 107,652 |
Securities sold under agreements to repurchase | 4,378 | 4,240 |
Advance deposits by borrowers for taxes and insurance | 66 | 782 |
Accrued interest payable and other liabilities | 4,095 | 4,087 |
TOTAL LIABILITIES | 848,364 | 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, 4,796,896 and 4,790,687 shares outstanding, respectively | 48 | 48 |
Additional paid-in-capital | 75,275 | 75,063 |
Retained earnings | 63,124 | 60,172 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,763) | (1,839) |
Accumulated other comprehensive income (loss) | (2,110) | 528 |
TOTAL STOCKHOLDERS' EQUITY | 134,574 | 133,972 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 982,938 | $ 972,600 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Loans receivable, net of allowance for loan losses (in dollars) | $ 4,360 | $ 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 | 4,796,896 | 4,790,687 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 7,996 | $ 7,202 | $ 15,913 | $ 10,962 |
Mortgage-backed securities | 516 | 440 | 973 | 514 |
Investments: | ||||
Taxable | 107 | 163 | 206 | 232 |
Tax-exempt | 359 | 381 | 714 | 577 |
Federal Home Loan Bank stock | 161 | 90 | 322 | 128 |
Interest-earning deposits and federal funds sold | 56 | 36 | 106 | 47 |
Total Interest and Dividend Income | 9,195 | 8,312 | 18,234 | 12,460 |
Interest Expense | ||||
Deposits | 1,147 | 872 | 2,122 | 1,539 |
Federal Home Loan Bank short-term borrowings | 68 | 180 | 225 | 180 |
Federal Home Loan Bank advances | 592 | 203 | 1,090 | 396 |
Securities sold under agreements to repurchase | 2 | 1 | 4 | 1 |
Total Interest Expense | 1,809 | 1,256 | 3,441 | 2,116 |
Net Interest Income | 7,386 | 7,056 | 14,793 | 10,344 |
Provision for Loan Losses | 175 | 167 | 175 | 167 |
Net Interest Income after Provision for Loan Losses | 7,211 | 6,889 | 14,618 | 10,177 |
Noninterest Income | ||||
Earnings on bank-owned life insurance | 105 | 138 | 264 | 234 |
Net gains (losses) on sales of securities | (17) | 57 | (17) | (7) |
Net gains on sales of equities | 23 | 63 | ||
Net equity securities fair value adjustment gains | 155 | 205 | ||
Net loan sale gains | 22 | 110 | 27 | 114 |
Other income | 31 | 73 | 44 | 118 |
Total Noninterest Income | 1,276 | 1,245 | 2,385 | 1,779 |
Noninterest Expenses | ||||
Compensation and employee benefits | 2,937 | 2,618 | 6,395 | 4,298 |
Data processing | 154 | 137 | 308 | 256 |
Premises and occupancy costs | 652 | 583 | 1,337 | 919 |
Automatic teller machine expense | 125 | 93 | 253 | 183 |
Federal deposit insurance | 67 | 84 | 148 | 123 |
Core deposit amortization | 193 | 257 | 450 | 257 |
Merger related expenses | 2,837 | 3,089 | ||
Other operating expenses | 1,227 | 1,000 | 2,244 | 1,471 |
Total Noninterest Expenses | 5,355 | 7,609 | 11,135 | 10,596 |
Income before Income Tax Expense | 3,132 | 525 | 5,868 | 1,360 |
Income Tax Expense (Benefit) | ||||
Federal | 537 | (17) | 1,013 | 207 |
State | 101 | 157 | 201 | 205 |
Total Income Tax Expense | 638 | 140 | 1,214 | 412 |
Net Income | $ 2,494 | $ 385 | $ 4,654 | $ 948 |
Earnings Per Share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.09 | $ 1.01 | $ 0.28 |
Diluted earnings per common share (in dollars per share) | 0.53 | 0.08 | 0.98 | 0.27 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 |
Basic weighted average shares outstanding (in shares) | 4,629,297 | 4,427,698 | 4,625,859 | 3,427,321 |
Diluted weighted average shares outstanding (in shares) | 4,748,977 | 4,536,055 | 4,743,688 | 3,523,022 |
Service charges | ||||
Noninterest Income | ||||
Fees and commissions | $ 762 | $ 745 | $ 1,472 | $ 1,126 |
Investment management fees | ||||
Noninterest Income | ||||
Fees and commissions | $ 195 | $ 122 | $ 327 | $ 194 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 2,494 | $ 385 | $ 4,654 | $ 948 |
Other comprehensive income (loss): | ||||
Change in unrealized (loss) gain on securities available for sale | (396) | 1,517 | (2,855) | 1,796 |
Tax effect | 83 | (516) | 599 | (611) |
Reclassification adjustment for security losses (gains) realized in income | 17 | (57) | 17 | 7 |
Tax effect | (4) | 19 | (4) | (2) |
Change in pension obligation for defined benefit plan | 24 | 23 | 27 | 213 |
Tax effect | (5) | (8) | (6) | (73) |
Total other comprehensive (loss) income | (281) | 978 | (2,222) | 1,330 |
Total Comprehensive Income | $ 2,213 | $ 1,363 | $ 2,432 | $ 2,278 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 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 | 4,654 | 4,654 | ||||
Other comprehensive loss | (2,222) | (2,222) | ||||
Change in accounting principle for adoption of ASU 2016-01 | 416 | (416) | ||||
Stock repurchases (4,675 shares) | (140) | (140) | ||||
Cash dividends ($0.44 per share) | (2,118) | (2,118) | ||||
Stock options exercised (10,884 shares) | 210 | 210 | ||||
Compensation expense on ESOP | 142 | 76 | 218 | |||
Balance at Jun. 30, 2018 | $ 48 | $ 75,275 | $ 63,124 | $ (1,763) | $ (2,110) | $ 134,574 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Consolidated Statement of Changes in Stockholders' Equity | |
Stock repurchases, shares | 4,675 |
Cash dividends paid per common share (in dollars per share) | $ / shares | $ 0.44 |
Number of stock options exercised | 10,884 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 4,654 | $ 948 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 636 | 274 |
Provision for loan losses | 175 | 167 |
Amortization of core deposit intangible | 450 | 257 |
Net loss on sale of securities available for sale | 17 | 7 |
Net gain on sale of equity securities | (63) | |
Net equity securities fair value adjustment gains | (205) | |
Origination of loans held for sale | (2,675) | (4,157) |
Proceeds from sale of loans held for sale | 2,702 | 3,427 |
Net loan sale gains | (27) | (114) |
Compensation expense on ESOP | 218 | 192 |
Compensation expense on stock awards | 420 | |
Deferred income taxes | 635 | (522) |
Increase in accrued interest receivable | (50) | (1,213) |
Earnings on bank-owned life insurance | (264) | (234) |
Increase in accrued interest payable | 9 | 700 |
Other, net | 189 | 1,485 |
Net Cash Provided by Operating Activities | 6,401 | 1,637 |
Cash Flows Used In Investing Activities | ||
Net decrease (increase) in loans | 12,050 | (40,312) |
Purchases of investment securities | (3,052) | (3,566) |
Purchases of equity securities | (554) | |
Purchases of mortgage-backed securities | (22,171) | (15,637) |
Proceeds from maturities of certificates of deposits | 250 | |
Proceeds from maturities/principal repayments/calls of investment securities | 30 | 3,777 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 5,111 | 6,399 |
Proceeds from sales of investment securities | 4,830 | 6,158 |
Proceeds from sales of equity securities | 331 | |
Proceeds from sales of mortgage-backed securities | 15,576 | |
Purchase of Federal Home Loan Bank stock | (3,185) | (2,161) |
Redemption of Federal Home Loan Bank stock | 4,118 | 1,704 |
Proceeds from sales of foreclosed real estate | 160 | |
Net purchases of office properties and equipment | (123) | (364) |
Cash and cash equivalents acquired | 9,611 | |
Net Cash Used in Investing Activities | (2,365) | (18,655) |
Cash Flows From Financing Activities | ||
Net increase in demand, savings and club accounts | 7,092 | 8,356 |
Net increase in certificate accounts | 16,784 | 8,239 |
Net increase in securities sold under agreements to repurchase | 138 | 187 |
Repayments of Federal Home Loan Bank short term borrowings | (165,490) | (37,636) |
Proceeds from Federal Home Loan Bank short term borrowing | 138,469 | 53,541 |
Repayments of Federal Home Loan Bank advances | (16,549) | (4,761) |
Proceeds from Federal Home Loan Bank advances | 30,000 | |
Net (decrease) increase in advance deposits by borrowers for taxes and insurance | (716) | 8 |
Exercise of stock options | 210 | 100 |
Dividends paid | (2,118) | (1,302) |
Stock repurchases | (140) | |
Net Cash Provided by Financing Activities | 7,680 | 26,732 |
Net Increase (Decrease) in Cash and Cash Equivalents | 11,716 | 9,714 |
Cash and Cash Equivalents - Beginning | 16,265 | 10,520 |
Cash and Cash Equivalents - Ending | 27,981 | 20,234 |
Supplementary Cash Flows Information: | ||
Interest paid | 3,432 | 2,031 |
Income taxes paid | $ 458 | 521 |
Merger with Allegheny Valley Bancorp. Inc. : Non-cash assets acquired | ||
Investment securities available for sale | 95,919 | |
Federal Home Loan Bank stock | 4,739 | |
Loans receivable, net of allowance for loan losses | 311,736 | |
Office properties and equipment, net | 4,434 | |
Accrued interest receivable | 1,144 | |
Bank owned life insurance | 6,486 | |
Core deposit intangible | 4,116 | |
Other assets | 2,742 | |
Goodwill | 17,216 | |
Total non-cash assets acquired | 448,532 | |
Liabilities assumed | ||
Certificate accounts | (70,422) | |
Deposits other than certificate accounts | (263,522) | |
Federal Home Loan Bank short-term borrowings | (64,624) | |
Accrued interest payable | (615) | |
Other liabilities | (1,288) | |
Total liabilities assumed | (400,471) | |
Net Non Cash Assets Acquired | 48,061 | |
Cash and cash equivalents acquired | $ 9,611 |
Consolidation
Consolidation | 6 Months Ended |
Jun. 30, 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. 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 | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2018 and 2017 (dollars in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to common stockholders $ 2,494 $ 385 $ 4,654 $ 948 Basic EPS: Weighted average shares outstanding 4,629,297 4,427,698 4,625,859 3,427,321 Basic EPS $ 0.54 $ 0.09 $ 1.01 $ 0.28 Diluted EPS: Weighted average shares outstanding 4,629,297 4,427,698 4,625,859 3,427,321 Diluted effect of common stock equivalents 119,680 108,357 117,829 95,701 Total diluted weighted average shares outstanding 4,748,977 4,536,055 4,743,688 3,523,022 Diluted EPS $ 0.53 $ 0.08 $ 0.98 $ 0.27 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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. ASU 2018-06, Codification Improvements to Topic 942, Financial Services-Depository and Lending Financial Services-Depository and Lending-Income Taxes In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) ASU 2018-09, Codification Improvements ASU 2018-10, Codification Improvements to Topic 842, Leases |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Available-for-sale securities other than mortgage backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Securities | (5) Investment Securities Investment securities available for sale at June 30, 2018 and December 31, 2017 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 6,444 $ - (93 ) $ 6,351 Beyond 5 year but within 10 years 1,907 - (56 ) 1,851 Corporate bonds due: Within 1 year 752 - (6 ) 746 Beyond 1 year but within 5 years 1,011 - (18 ) 993 Beyond 5 years but within 10 years 506 11 - 517 Municipal obligations due: Beyond 1 year but within 5 years 5,245 349 (1 ) 5,593 Beyond 5 years but within 10 years 20,856 27 (209 ) 20,674 Beyond 10 years 22,063 30 (441 ) 21,652 $ 58,784 $ 417 $ (824 ) $ 58,377 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 Equity securities 3,647 557 (34 ) 4,170 $ 64,245 $ 1,494 $ (180 ) $ 65,559 For the three and six months ended June 30, 2018, losses on sales of investment securities were $17,000 and proceeds from such sales were $4.8 million. During the three months ended June 30, 2017, gains on the sales of investment securities were $14,000, losses on sales were $17,000 and proceeds from such sales were $5.9 million. For the six months ended June 30, 2017, gains on the sales of investment securities were $24,000, losses on sales were $91,000 and proceeds from such sales were $6.2 million. Investment securities with a carrying value of $11.4 million and $16.4 million were pledged to secure repurchase agreements and public funds accounts at June 30, 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 June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 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 $ 8,202 $ (149 ) $ - $ - $ 8,202 $ (149 ) Corporate bonds 747 (6 ) 993 (18 ) 1,740 (24 ) Municipal obligations 27,093 (318 ) 5,946 (333 ) 33,039 (651 ) Total $ 36,042 $ (473 ) $ 6,939 $ (351 ) $ 42,981 $ (824 ) 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 ) Equity securities 857 (34 ) - - 857 (34 ) Total $ 12,443 $ (64 ) $ 5,492 $ (116 ) $ 17,935 $ (180 ) At June 30, 2018, the Company held 68 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 three months and six months ended June 30, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at June 30, 2018 (dollars in thousands): Three Months Six Months Net equity securities fair value adjustment gains $ 155 $ 205 Net gains realized on the sale of equity securities during the period 23 63 Gains recognized on equity securities during the period $ 178 $ 268 During the three months ended June 30, 2018, gains on sales of equity securities were $23,000 and proceeds from such sales were $154,000. For the six months ended June 30, 2018, gains on sales of equity securities were $63,000 and proceeds from such sales were $331,000. |
Mortgage-Backed Securities
Mortgage-Backed Securities | 6 Months Ended |
Jun. 30, 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 June 30, 2018 and December 31, 2017 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2018: Government pass-throughs: Ginnie Mae $ 21,472 $ 1 $ (456 ) $ 21,017 Fannie Mae 14,994 7 (452 ) 14,549 Freddie Mac 13,612 - (397 ) 13,215 Private pass-throughs 25,440 1 (284 ) 25,157 Collateralized mortgage obligations 9,161 - (315 ) 8,846 $ 84,679 $ 9 $ (1,904 ) $ 82,784 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 or six months ended June 30, 2018. For the three and six months ended June 30, 2017, gains on sales of mortgage-backed securities totaled $75,000, losses totaled $15,000 and total proceeds from sales were $15.6 million. The amortized cost and fair value of mortgage-backed securities at June 30, 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 one year through five years $ 913 $ 914 Due after five years through ten years 6,586 6,535 Due after ten years 77,180 75,335 Total Mortgage-Backed Securities $ 84,679 $ 82,784 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 June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 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 $ 18,536 $ (381 ) $ 2,199 $ (75 ) $ 20,735 $ (456 ) Fannie Mae 13,921 (452 ) - - 13,921 (452 ) Freddie Mac 13,215 (397 ) - - 13,215 (397 ) Private pass-throughs 21,390 (237 ) 2,872 (47 ) 24,262 (284 ) Collateralized mortgage obligations 3,950 (125 ) 4,896 (190 ) 8,846 (315 ) Total $ 71,012 $ (1,592 ) $ 9,967 $ (312 ) $ 80,979 $ (1,904 ) 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 June 30, 2018, the Company held 69 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 $11.0 million and $25.5 million were pledged to secure repurchase agreements and public fund accounts at June 30, 2018 and December 31, 2017, respectively. |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2018: Collectively evaluated for impairment $ 256,933 $ 304,573 $ 125,036 $ 51,165 $ 1,233 $ 738,940 Individually evaluated for impairment - 295 - - - 295 Total loans before allowance for loan losses $ 256,933 $ 304,868 $ 125,036 $ 51,165 $ 1,233 $ 739,235 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 June 30, 2018 and December 31, 2017 were net of deferred loan fees of $243,000 and $276,000, respectively. 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 June 30, 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 30, 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 and six month period ended June 30, 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 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 or six month periods ended June 30, 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 or six month periods ending June 30, 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 June 30, 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 June 30, 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 June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Average investment in impaired loans: Commercial real estate $ 295 $ 422 $ 295 $ 422 $ 295 $ 422 $ 295 $ 422 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 June 30, 2018 and December 31, 2017 (dollars in thousands): Special Pass Mention Substandard Doubtful Total June 30, 2018: Real estate loans: One-to-four-family residential and construction $ 255,000 $ - $ 1,933 $ - $ 256,933 Commercial real estate 299,124 4,930 814 - 304,868 Home equity loans and lines of credit 124,753 65 218 - 125,036 Commercial business loans 50,924 236 5 - 51,165 Other loans 1,223 - 10 - 1,233 Total $ 731,024 $ 5,231 $ 2,980 $ - $ 739,235 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 June 30, 2018 there were 2 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 June 30, 2018 and December 31, 2017 (dollars in thousands): 30-59 Days 60-89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans June 30, 2018: Real estate loans: One-to-four-family residential and construction $ 254,979 $ 21 $ - $ 1,933 $ - $ 256,933 Commercial real estate 303,801 155 201 711 - 304,868 Home equity loans and lines of credit 124,690 128 - 218 - 125,036 Commercial business loans 51,100 7 44 5 9 51,165 Other loans 1,191 5 - 10 27 1,233 Total $ 735,761 $ 316 $ 245 $ 2,877 $ 36 $ 739,235 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 June 30, 2018 and December 31, 2017. Activity in the allowance is presented for the three and six months ended June 30, 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 March 31, 2018 $ 1,399 $ 2,122 $ 390 $ 270 $ 4 $ 4,185 Charge-offs - - - (11 ) - (11 ) Recoveries - - 11 - - 11 Provision (216 ) 308 (16 ) 100 (1 ) 175 Balance June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 Balance at March 31, 2017 $ 1,299 $ 1,687 $ 532 $ 255 $ 4 $ 3,777 Charge-offs (1 ) - (6 ) - (4 ) (11 ) Recoveries 28 - - 1 3 32 Provision 20 100 16 30 1 167 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Six Months Ended: Balance December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs - (9 ) - (11 ) (2 ) (22 ) Recoveries 69 - 11 - - 80 Provision (270 ) 436 (26 ) 37 (2 ) 175 Balance June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 Balance at December 31, 2016 $ 1,280 $ 1,787 $ 547 $ 211 $ 12 $ 3,837 Charge-offs (42 ) - (6 ) (1 ) (22 ) (71 ) Recoveries 28 - - 1 3 32 Provision 80 - 1 75 11 167 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 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 1,183 2,430 385 359 3 4,360 Balance at June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 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 | 6 Months Ended |
Jun. 30, 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 foreclosed real estate on the Consolidated Statement of Financial Condition. As of June 30, 2018 and December 31, 2017, foreclosed real estate totaled $354,000 and $419,000, respectively. As of June 30, 2018, the $354,000 included two residential properties acquired through foreclosure, prior to the period end. As of June 30, 2018, the Company had initiated formal foreclosure procedures on $1.5 million of loans, consisting of $1.0 million 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2018. As a result of the merger with Allegheny Valley on April 7, 2017, the Company assumed the Allegheny Valley 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 and six months ended June 30, 2018, the options were fully vested and there was no compensation expense recognized. Compensation expense on the options was $19,000 with a related tax benefit recorded of $2,000 for the three months ended June 30, 2017 and $38,000, with a related tax benefit recorded of $4,000 for the six months ended June 30, 2017. The following table summarizes transactions regarding the options under the plans: Options Weighted Weighted Outstanding at December 31, 2017 302,231 $ 17.25 4.11 Granted - - Exercised (10,884 ) 19.30 Forfeited - - Outstanding at June 30, 2018 291,347 $ 17.18 3.66 Exercisable at June 30, 2018 291,347 $ 17.18 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 six months ended June 30, 2018, there were no restricted stock awards granted or forfeited. At and for the three and six months ended June 30, 2018, the existing restricted stock awards were fully vested and there was no compensation expense recognized. Compensation expense on the grants was $92,000 with a related tax benefit recorded of $30,000 for the three months ended June 30, 2017 and $183,000, with a related tax benefit recorded of $61,000 for the six months ended June 30, 2017. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2018 | |
Shareholders Equity And Share Based Payments Disclosure [Abstract] | |
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 $110,000 and $97,000 was recognized during the three months ended June 30, 2018 and 2017, respectively. Compensation expense related to the ESOP of $218,000 and $192,000 was recognized during the six months ended June 30, 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 June 30, 2018, the ESOP held a total of 255,786 shares of the Company’s stock, and there were 173,458 unallocated shares. The fair market value of the unallocated ESOP shares was $5.3 million at June 30, 2018. |
Pension Information
Pension Information | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest Cost $ 33 $ 36 $ 66 $ 108 Expected return on plan assets (41 ) (40 ) (82 ) (120 ) Amortization of net loss 3 23 6 69 Settlement obligation 30 - 30 105 Net periodic pension cost $ 25 $ 19 $ 20 $ 162 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 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, Mortgage-Backed and Equity 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 June 30, 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 June 30, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands): June 30, 2018: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ - $ 8,202 $ - $ 8,202 Corporate bonds - 2,256 - 2,256 Municipal obligations - 47,919 - 47,919 Total investment securities available for sale - 58,377 - 58,377 Equity securities available for sale 4,609 - - 4,609 Mortgage-backed securities available for sale - 82,784 - 82,784 Total recurring fair value measurements $ 4,609 $ 141,161 $ - $ 145,770 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 June 30, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands): June 30, 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 June 30, 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 June 30, 2018 and December 31, 2017 (dollars in thousands): Carrying Estimated Level 1 Level 2 Level 3 June 30, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,171 $ 3,171 $ 3,171 $ - $ - Interest-earning deposits in other institutions (1) 24,810 24,810 24,810 - - Certificate of deposit (1) 499 499 499 - - Investment securities (2) 58,377 58,377 - 58,377 - Mortgage-backed securities (2) 82,784 82,784 - 82,784 - Equity Securities (3) 4,609 4,609 4,609 - - Federal Home Loan Bank stock (1) 8,535 8,535 8,535 - - Loans receivable (1) (4) 734,875 725,523 - - 725,523 Bank-owned life insurance (1) 22,304 22,304 22,304 - - Accrued interest receivable (1) 2,707 2,707 2,707 - - Financial Instruments - Liabilities: Demand, savings and club accounts (1) $ 489,994 $ 489,994 $ 489,994 $ - $ - Certificate deposit accounts (1) 228,728 226,176 - - 226,176 Federal Home Loan Bank advances (1) 121,103 119,786 - - 119,786 Securities sold under agreements to repurchase (1) 4,378 4,378 4,378 - - Accrued interest payable (1) 1,002 1,002 1,002 - - 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 June 30, 2018. (2) The financial instrument is carried at fair value through other comprehensive income at June 30, 2018. (3) The financial instrument is carried at fair value through net income at June 30, 2018. (4) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of June 30, 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2018 and 2017 (dollars in thousands): Unrealized Gains (Losses) on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2018 $ (1,519 ) $ (310 ) $ (1,829 ) Other comprehensive loss before reclassification (313 ) - (313 ) Amount reclassified from accumulated other comprehensive income 13 19 32 Total other comprehensive (loss) income (300 ) 19 (281 ) Balance as of June 30, 2018 $ (1,819 ) $ (291 ) $ (2,110 ) Balance as of December 31, 2017 $ 840 $ (312 ) $ 528 Other comprehensive loss before reclassification (2,256 ) - (2,256 ) Amount reclassified from accumulated other comprehensive income 13 21 34 Total other comprehensive (loss) income (2,243 ) 21 (2,222 ) Change in accounting principle for adoption of ASU 2016-01 (416 ) - (416 ) Balance as of June 30, 2018 $ (1,819 ) $ (291 ) $ (2,110 ) Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended June 30, 2018: Unrealized losses on available for sale securities $ 17 Net gains (losses) on sales of securities (4 ) Income tax expense (benefit) $ 13 Net of tax Amortization of defined benefit items: Actuarial loss $ 3 Other operating expenses Distribution settlement $ 21 Other operating expenses (5 ) Income tax expense (benefit) $ 19 Net of tax Total reclassification for the period $ 32 Net income Six months ended June 30, 2018: Unrealized losses on available for sale securities $ 17 Net gains (losses) on sales of securities (4 ) Income tax expense (benefit) $ 13 Net of tax Amortization of defined benefit items: Actuarial loss $ 6 Other operating expenses Distribution settlement $ 21 Other operating expenses (6 ) Income tax expense (benefit) $ 21 Net of tax Total reclassification for the period $ 34 Net income Unrealized Gains (Losses) on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2017 $ 196 $ (620 ) $ (424 ) Other comprehensive income before reclassification 1,001 - 1,001 Amount reclassified from accumulated other comprehensive income (38 ) 15 (23 ) Total other comprehensive income 963 15 978 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Balance as of December 31, 2016 $ (31 ) $ (745 ) $ (776 ) Other comprehensive income before reclassification 1,185 - 1,185 Amount reclassified from accumulated other comprehensive income 5 140 145 Total other comprehensive income 1,190 140 1,330 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended June 30, 2017: Unrealized gains on available for sale securities $ (57 ) Net gains (losses) on sales of securities 19 Income tax expense (benefit) $ (38 ) Net of tax Amortization of defined benefit items: Actuarial loss $ 23 Other operating expenses (8 ) Income tax expense (benefit) $ 15 Net of tax Total reclassification for the period $ (23 ) Net income Six months ended June 30, 2017: Unrealized losses on available for sale securities $ 7 Net gains (losses) on sales of securities (2 ) Income tax expense (benefit) $ 5 Net of tax Amortization of defined benefit items: Actuarial loss $ 69 Other operating expenses Distribution settlement 144 Other operating expenses (73 ) Income tax expense $ 140 Net of tax Total reclassification for the period $ 145 Net income |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 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 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, “in advance” beginning in the first month of account opening and funding in accordance with a customer signed agreement. The first quarter’s pro-rated initial advisory fees are then paid to the Company the month after the account is opened and funded. Thereafter the first pro-rated quarter, advisory fees are paid to the Company monthly with 1/3 of the quarterly fee being earned each month. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 615 $ 631 $ 1,222 $ 968 Investment management fees 195 122 327 194 Noninterest income (in-scope of Topic 606) 810 753 1,549 1,162 Noninterest income (out-of-scope of Topic 606) 466 492 836 617 Total noninterest income $ 1,276 $ 1,245 $ 2,385 $ 1,779 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 June 30, 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. | 6 Months Ended |
Jun. 30, 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 Corp. 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 Corp. common stock issued for exchange, subject to adjustment for fractional shares. Cash for any fractional shares of Standard AVB Financial Corp. 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 Corp. 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 Corp. 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 or six months ended June 30, 2018. The carrying amount of goodwill at June 30, 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 June 30, 2018 was $2.9 million with $1.2 million of accumulated amortization as of that date. As of June 30, 2018, the remaining current year and estimated future amortization expense for the core deposit intangible is (dollars in thousands): 2018 $ 386 2019 628 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 2,894 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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. 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 and six month periods ended June 30, 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. ASU 2018-06, Codification Improvements to Topic 942, Financial Services-Depository and Lending Financial Services-Depository and Lending-Income Taxes In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) ASU 2018-09, Codification Improvements ASU 2018-10, Codification Improvements to Topic 842, Leases |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings per Share | |
Schedule of computation of basic and diluted EPS | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to common stockholders $ 2,494 $ 385 $ 4,654 $ 948 Basic EPS: Weighted average shares outstanding 4,629,297 4,427,698 4,625,859 3,427,321 Basic EPS $ 0.54 $ 0.09 $ 1.01 $ 0.28 Diluted EPS: Weighted average shares outstanding 4,629,297 4,427,698 4,625,859 3,427,321 Diluted effect of common stock equivalents 119,680 108,357 117,829 95,701 Total diluted weighted average shares outstanding 4,748,977 4,536,055 4,743,688 3,523,022 Diluted EPS $ 0.53 $ 0.08 $ 0.98 $ 0.27 |
Investment Securities (Tables)
Investment Securities (Tables) - Available-for-sale securities other than mortgage backed securities | 6 Months Ended |
Jun. 30, 2018 | |
Investment Securities | |
Schedule of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 6,444 $ - (93 ) $ 6,351 Beyond 5 year but within 10 years 1,907 - (56 ) 1,851 Corporate bonds due: Within 1 year 752 - (6 ) 746 Beyond 1 year but within 5 years 1,011 - (18 ) 993 Beyond 5 years but within 10 years 506 11 - 517 Municipal obligations due: Beyond 1 year but within 5 years 5,245 349 (1 ) 5,593 Beyond 5 years but within 10 years 20,856 27 (209 ) 20,674 Beyond 10 years 22,063 30 (441 ) 21,652 $ 58,784 $ 417 $ (824 ) $ 58,377 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 Equity securities 3,647 557 (34 ) 4,170 $ 64,245 $ 1,494 $ (180 ) $ 65,559 |
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 | June 30, 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 $ 8,202 $ (149 ) $ - $ - $ 8,202 $ (149 ) Corporate bonds 747 (6 ) 993 (18 ) 1,740 (24 ) Municipal obligations 27,093 (318 ) 5,946 (333 ) 33,039 (651 ) Total $ 36,042 $ (473 ) $ 6,939 $ (351 ) $ 42,981 $ (824 ) 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 ) Equity securities 857 (34 ) - - 857 (34 ) Total $ 12,443 $ (64 ) $ 5,492 $ (116 ) $ 17,935 $ (180 ) |
Equity Securities (Tables)
Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Securities [Abstract] | |
Schedule of gains and losses on equity investments | Three Months Six Months Net equity securities fair value adjustment gains $ 155 $ 205 Net gains realized on the sale of equity securities during the period 23 63 Gains recognized on equity securities during the period $ 178 $ 268 |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities | 6 Months Ended |
Jun. 30, 2018 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2018: Government pass-throughs: Ginnie Mae $ 21,472 $ 1 $ (456 ) $ 21,017 Fannie Mae 14,994 7 (452 ) 14,549 Freddie Mac 13,612 - (397 ) 13,215 Private pass-throughs 25,440 1 (284 ) 25,157 Collateralized mortgage obligations 9,161 - (315 ) 8,846 $ 84,679 $ 9 $ (1,904 ) $ 82,784 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 one year through five years $ 913 $ 914 Due after five years through ten years 6,586 6,535 Due after ten years 77,180 75,335 Total Mortgage-Backed Securities $ 84,679 $ 82,784 |
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 | June 30, 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 $ 18,536 $ (381 ) $ 2,199 $ (75 ) $ 20,735 $ (456 ) Fannie Mae 13,921 (452 ) - - 13,921 (452 ) Freddie Mac 13,215 (397 ) - - 13,215 (397 ) Private pass-throughs 21,390 (237 ) 2,872 (47 ) 24,262 (284 ) Collateralized mortgage obligations 3,950 (125 ) 4,896 (190 ) 8,846 (315 ) Total $ 71,012 $ (1,592 ) $ 9,967 $ (312 ) $ 80,979 $ (1,904 ) 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2018: Collectively evaluated for impairment $ 256,933 $ 304,573 $ 125,036 $ 51,165 $ 1,233 $ 738,940 Individually evaluated for impairment - 295 - - - 295 Total loans before allowance for loan losses $ 256,933 $ 304,868 $ 125,036 $ 51,165 $ 1,233 $ 739,235 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 June 30, 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 June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Average investment in impaired loans: Commercial real estate $ 295 $ 422 $ 295 $ 422 $ 295 $ 422 $ 295 $ 422 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 June 30, 2018: Real estate loans: One-to-four-family residential and construction $ 255,000 $ - $ 1,933 $ - $ 256,933 Commercial real estate 299,124 4,930 814 - 304,868 Home equity loans and lines of credit 124,753 65 218 - 125,036 Commercial business loans 50,924 236 5 - 51,165 Other loans 1,223 - 10 - 1,233 Total $ 731,024 $ 5,231 $ 2,980 $ - $ 739,235 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 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans June 30, 2018: Real estate loans: One-to-four-family residential and construction $ 254,979 $ 21 $ - $ 1,933 $ - $ 256,933 Commercial real estate 303,801 155 201 711 - 304,868 Home equity loans and lines of credit 124,690 128 - 218 - 125,036 Commercial business loans 51,100 7 44 5 9 51,165 Other loans 1,191 5 - 10 27 1,233 Total $ 735,761 $ 316 $ 245 $ 2,877 $ 36 $ 739,235 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 March 31, 2018 $ 1,399 $ 2,122 $ 390 $ 270 $ 4 $ 4,185 Charge-offs - - - (11 ) - (11 ) Recoveries - - 11 - - 11 Provision (216 ) 308 (16 ) 100 (1 ) 175 Balance June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 Balance at March 31, 2017 $ 1,299 $ 1,687 $ 532 $ 255 $ 4 $ 3,777 Charge-offs (1 ) - (6 ) - (4 ) (11 ) Recoveries 28 - - 1 3 32 Provision 20 100 16 30 1 167 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Six Months Ended: Balance December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs - (9 ) - (11 ) (2 ) (22 ) Recoveries 69 - 11 - - 80 Provision (270 ) 436 (26 ) 37 (2 ) 175 Balance June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 Balance at December 31, 2016 $ 1,280 $ 1,787 $ 547 $ 211 $ 12 $ 3,837 Charge-offs (42 ) - (6 ) (1 ) (22 ) (71 ) Recoveries 28 - - 1 3 32 Provision 80 - 1 75 11 167 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 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 1,183 2,430 385 359 3 4,360 Balance at June 30, 2018 $ 1,183 $ 2,430 $ 385 $ 359 $ 3 $ 4,360 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) | 6 Months Ended |
Jun. 30, 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 (10,884 ) 19.30 Forfeited - - Outstanding at June 30, 2018 291,347 $ 17.18 3.66 Exercisable at June 30, 2018 291,347 $ 17.18 |
Pension Information (Tables)
Pension Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic pension (benefit) cost | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest Cost $ 33 $ 36 $ 66 $ 108 Expected return on plan assets (41 ) (40 ) (82 ) (120 ) Amortization of net loss 3 23 6 69 Settlement obligation 30 - 30 105 Net periodic pension cost $ 25 $ 19 $ 20 $ 162 |
Fair Value of Assets and Liab33
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value of Assets and Liabilities | |
Schedule of assets measured at fair value on a recurring basis | June 30, 2018: Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government and agency obligations $ - $ 8,202 $ - $ 8,202 Corporate bonds - 2,256 - 2,256 Municipal obligations - 47,919 - 47,919 Total investment securities available for sale - 58,377 - 58,377 Equity securities available for sale 4,609 - - 4,609 Mortgage-backed securities available for sale - 82,784 - 82,784 Total recurring fair value measurements $ 4,609 $ 141,161 $ - $ 145,770 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 | June 30, 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 June 30, 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 June 30, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,171 $ 3,171 $ 3,171 $ - $ - Interest-earning deposits in other institutions (1) 24,810 24,810 24,810 - - Certificate of deposit (1) 499 499 499 - - Investment securities (2) 58,377 58,377 - 58,377 - Mortgage-backed securities (2) 82,784 82,784 - 82,784 - Equity Securities (3) 4,609 4,609 4,609 - - Federal Home Loan Bank stock (1) 8,535 8,535 8,535 - - Loans receivable (1) (4) 734,875 725,523 - - 725,523 Bank-owned life insurance (1) 22,304 22,304 22,304 - - Accrued interest receivable (1) 2,707 2,707 2,707 - - Financial Instruments - Liabilities: Demand, savings and club accounts (1) $ 489,994 $ 489,994 $ 489,994 $ - $ - Certificate deposit accounts (1) 228,728 226,176 - - 226,176 Federal Home Loan Bank advances (1) 121,103 119,786 - - 119,786 Securities sold under agreements to repurchase (1) 4,378 4,378 4,378 - - Accrued interest payable (1) 1,002 1,002 1,002 - - 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 June 30, 2018. (2) The financial instrument is carried at fair value through other comprehensive income at June 30, 2018. (3) The financial instrument is carried at fair value through net income at June 30, 2018. (4) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of June 30, 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) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains (Losses) on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2018 $ (1,519 ) $ (310 ) $ (1,829 ) Other comprehensive loss before reclassification (313 ) - (313 ) Amount reclassified from accumulated other comprehensive income 13 19 32 Total other comprehensive (loss) income (300 ) 19 (281 ) Balance as of June 30, 2018 $ (1,819 ) $ (291 ) $ (2,110 ) Balance as of December 31, 2017 $ 840 $ (312 ) $ 528 Other comprehensive loss before reclassification (2,256 ) - (2,256 ) Amount reclassified from accumulated other comprehensive income 13 21 34 Total other comprehensive (loss) income (2,243 ) 21 (2,222 ) Change in accounting principle for adoption of ASU 2016-01 (416 ) - (416 ) Balance as of June 30, 2018 $ (1,819 ) $ (291 ) $ (2,110 ) Unrealized Gains (Losses) on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2017 $ 196 $ (620 ) $ (424 ) Other comprehensive income before reclassification 1,001 - 1,001 Amount reclassified from accumulated other comprehensive income (38 ) 15 (23 ) Total other comprehensive income 963 15 978 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Balance as of December 31, 2016 $ (31 ) $ (745 ) $ (776 ) Other comprehensive income before reclassification 1,185 - 1,185 Amount reclassified from accumulated other comprehensive income 5 140 145 Total other comprehensive income 1,190 140 1,330 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended June 30, 2018: Unrealized losses on available for sale securities $ 17 Net gains (losses) on sales of securities (4 ) Income tax expense (benefit) $ 13 Net of tax Amortization of defined benefit items: Actuarial loss $ 3 Other operating expenses Distribution settlement $ 21 Other operating expenses (5 ) Income tax expense (benefit) $ 19 Net of tax Total reclassification for the period $ 32 Net income Six months ended June 30, 2018: Unrealized losses on available for sale securities $ 17 Net gains (losses) on sales of securities (4 ) Income tax expense (benefit) $ 13 Net of tax Amortization of defined benefit items: Actuarial loss $ 6 Other operating expenses Distribution settlement $ 21 Other operating expenses (6 ) Income tax expense (benefit) $ 21 Net of tax Total reclassification for the period $ 34 Net income Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three months ended June 30, 2017: Unrealized gains on available for sale securities $ (57 ) Net gains (losses) on sales of securities 19 Income tax expense (benefit) $ (38 ) Net of tax Amortization of defined benefit items: Actuarial loss $ 23 Other operating expenses (8 ) Income tax expense (benefit) $ 15 Net of tax Total reclassification for the period $ (23 ) Net income Six months ended June 30, 2017: Unrealized losses on available for sale securities $ 7 Net gains (losses) on sales of securities (2 ) Income tax expense (benefit) $ 5 Net of tax Amortization of defined benefit items: Actuarial loss $ 69 Other operating expenses Distribution settlement 144 Other operating expenses (73 ) Income tax expense $ 140 Net of tax Total reclassification for the period $ 145 Net income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of noninterest income, segregated by revenue | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 615 $ 631 $ 1,222 $ 968 Investment management fees 195 122 327 194 Noninterest income (in-scope of Topic 606) 810 753 1,549 1,162 Noninterest income (out-of-scope of Topic 606) 466 492 836 617 Total noninterest income $ 1,276 $ 1,245 $ 2,385 $ 1,779 |
Merger with Allegheny Valley 36
Merger with Allegheny Valley Bancorp, Inc. (Tables) | 6 Months Ended |
Jun. 30, 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 $ 386 2019 628 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 2,894 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings per Share | ||||
Net income available to common stockholders | $ 2,494 | $ 385 | $ 4,654 | $ 948 |
Basic EPS: | ||||
Weighted average shares outstanding | 4,629,297 | 4,427,698 | 4,625,859 | 3,427,321 |
Basic EPS | $ 0.54 | $ 0.09 | $ 1.01 | $ 0.28 |
Diluted EPS: | ||||
Weighted average shares outstanding | 4,629,297 | 4,427,698 | 4,625,859 | 3,427,321 |
Diluted effect of common stock equivalents | 119,680 | 108,357 | 117,829 | 95,701 |
Total diluted weighted average shares outstanding | 4,748,977 | 4,536,055 | 4,743,688 | 3,523,022 |
Diluted EPS (in dollars per share) | $ 0.53 | $ 0.08 | $ 0.98 | $ 0.27 |
Recent Accounting Pronounceme38
Recent Accounting Pronouncements (Detail Textuals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Recent Accounting Pronouncements | ||
Result of one time cumulative effect adjustment | $ 416,000 | $ 90,000 |
Investment Securities - Debt se
Investment Securities - Debt securities, available for sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Amortized Cost | $ 58,784 | |
Gross Unrealized Gains | ||
Gross Unrealized Gains | 417 | |
Gross Unrealized Losses | ||
Gross Unrealized Losses | (824) | |
Fair Value | ||
Fair Value | 58,377 | |
U.S. government and agency obligations | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 6,444 | $ 7,400 |
Beyond 5 years but within 10 years | 1,907 | 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 | (93) | (8) |
Beyond 5 years but within 10 years | (56) | 0 |
Fair Value | ||
Beyond 1 year but within 5 years | 6,351 | 7,396 |
Beyond 5 years but within 10 years | 1,851 | 944 |
Corporate bonds | ||
Amortized Cost | ||
Within 1 year | 752 | |
Beyond 1 year but within 5 years | 1,011 | 2,276 |
Beyond 5 years but within 10 years | 506 | |
Gross Unrealized Gains | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 0 | 14 |
Beyond 5 years but within 10 years | 11 | |
Gross Unrealized Losses | ||
Within 1 year | 6 | |
Beyond 1 year but within 5 years | (18) | (18) |
Beyond 5 years but within 10 years | 0 | |
Fair Value | ||
Within 1 year | 746 | |
Beyond 1 year but within 5 years | 993 | 2,272 |
Beyond 5 years but within 10 years | 517 | |
Municipal obligations | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 5,245 | 8,702 |
Beyond 5 years but within 10 years | 20,856 | 25,803 |
Beyond 10 years | 22,063 | 15,483 |
Gross Unrealized Gains | ||
Beyond 1 year but within 5 years | 349 | 441 |
Beyond 5 years but within 10 years | 27 | 339 |
Beyond 10 years | 30 | 129 |
Gross Unrealized Losses | ||
Beyond 1 year but within 5 years | (1) | 0 |
Beyond 5 years but within 10 years | (209) | (21) |
Beyond 10 years | (441) | (99) |
Fair Value | ||
Beyond 1 year but within 5 years | 5,593 | 9,143 |
Beyond 5 years but within 10 years | 20,674 | 26,121 |
Beyond 10 years | $ 21,652 | $ 15,513 |
Investment Securities - Equity
Investment Securities - Equity securities, available for sale (Details 1) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Equity securities, Amortized Cost | $ 3,647 |
Equity securities, Gross Unrealized Gains | 557 |
Equity securities, Gross Unrealized Losses | (34) |
Equity securities, Fair Value | $ 4,170 |
Investment Securities - Investm
Investment Securities - Investment securities, available for sale (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available for sale, debt and equity securities: | ||
Amortized Cost | $ 64,245 | |
Gross Unrealized Gains | 1,494 | |
Gross Unrealized Losses | (180) | |
Fair Value | $ 58,377 | $ 65,559 |
Investment Securities - Fair va
Investment Securities - Fair value and gross unrealized losses on available for sale debt securities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 36,042 | |
Less than 12 Months, Gross Unrealized Losses | (473) | |
12 Months or More, Fair Value | 6,939 | |
12 Months or More, Gross Unrealized Losses | (351) | |
Total, Fair Value | 42,981 | |
Total, Gross Unrealized Losses | (824) | |
U.S. government and agency obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 8,202 | $ 5,924 |
Less than 12 Months, Gross Unrealized Losses | (149) | (8) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 8,202 | 5,924 |
Total, Gross Unrealized Losses | (149) | (8) |
Corporate bonds | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 747 | 751 |
Less than 12 Months, Gross Unrealized Losses | (6) | (3) |
12 Months or More, Fair Value | 993 | 1,001 |
12 Months or More, Gross Unrealized Losses | (18) | (15) |
Total, Fair Value | 1,740 | 1,752 |
Total, Gross Unrealized Losses | (24) | (18) |
Municipal obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 27,093 | 4,911 |
Less than 12 Months, Gross Unrealized Losses | (318) | (19) |
12 Months or More, Fair Value | 5,946 | 4,491 |
12 Months or More, Gross Unrealized Losses | (333) | (101) |
Total, Fair Value | 33,039 | 9,402 |
Total, Gross Unrealized Losses | $ (651) | $ (120) |
Investment Securities - Fair 43
Investment Securities - Fair value and gross unrealized losses on available for sale equity securities (Details 4) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Equity securities, Less than 12 months, Fair Value | $ 857 |
Equity securities, Less than 12 months, Unrealized Losses | (34) |
Equity securities, 12 months or more, Fair Value | 0 |
Equity securities, 12 months or more, Unrealized Losses | 0 |
Equity securities, Total, Fair Value | 857 |
Equity securities, Total, Unrealized Losses | $ (34) |
Investment Securities - Fair 44
Investment Securities - Fair value and gross unrealized losses on available for sale investment securities (Details 5) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Less than 12 months, Fair Value | $ 12,443 |
Less than 12 months, Unrealized Losses | (64) |
12 months or more, Fair Value | 5,492 |
12 months or more, Unrealized Losses | (116) |
Total, Fair Value | 17,935 |
Total, Unrealized Losses | $ (180) |
Investment Securities (Detail T
Investment Securities (Detail Textuals) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)Security | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Security | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Number of securities held in an unrealized loss position | Security | 20 | 20 | |||
Gains on sales of investment securities | $ 14,000 | $ 24,000 | |||
Losses on sales of investment securities | $ 17,000 | 17,000 | $ 17,000 | 91,000 | |
Proceeds from sales of investment securities | $ 4,800,000 | $ 5,900,000 | $ 4,830,000 | $ 6,158,000 | |
Investment securities available for sale | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Number of securities held in an unrealized loss position | Security | 68 | 68 | |||
Investment securities pledged to secure repurchase agreements and public funds accounts | $ 11,400,000 | $ 11,400,000 | $ 16,400,000 |
Equity Securities (Details)
Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Equity Securities [Abstract] | ||
Net equity securities fair value adjustment gains | $ 155 | $ 205 |
Net gains realized on the sale of equity securities during the period | 23 | 63 |
Gains recognized on equity securities during the period | $ 178 | $ 268 |
Equity Securities (Detail Textu
Equity Securities (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Equity Securities [Abstract] | ||
Net gains on sales of equities | $ 23 | $ 63 |
Proceeds from sale of equity | $ 154 | $ 331 |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Mortgage-backed securities | ||
Amortized Cost | $ 58,784 | |
Gross Unrealized Gains | 417 | |
Gross Unrealized Losses | (824) | |
Fair Value | 58,377 | |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Amortized Cost | 84,679 | $ 67,884 |
Gross Unrealized Gains | 9 | 130 |
Gross Unrealized Losses | (1,904) | (384) |
Fair Value | 82,784 | 67,630 |
Government pass-throughs, Ginnie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 21,472 | 17,416 |
Gross Unrealized Gains | 1 | 6 |
Gross Unrealized Losses | (456) | (131) |
Fair Value | 21,017 | 17,291 |
Government pass-throughs, Fannie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 14,994 | 16,078 |
Gross Unrealized Gains | 7 | 75 |
Gross Unrealized Losses | (452) | (8) |
Fair Value | 14,549 | 16,145 |
Government pass-throughs, Freddie Mac | ||
Mortgage-backed securities | ||
Amortized Cost | 13,612 | 12,510 |
Gross Unrealized Gains | 0 | 41 |
Gross Unrealized Losses | (397) | (14) |
Fair Value | 13,215 | 12,537 |
Private pass-throughs | ||
Mortgage-backed securities | ||
Amortized Cost | 25,440 | 14,603 |
Gross Unrealized Gains | 1 | 8 |
Gross Unrealized Losses | (284) | (113) |
Fair Value | 25,157 | 14,498 |
Collateralized mortgage obligations | ||
Mortgage-backed securities | ||
Amortized Cost | 9,161 | 7,277 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (315) | (118) |
Fair Value | $ 8,846 | $ 7,159 |
Mortgage-Backed Securities (D49
Mortgage-Backed Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized cost by contractual maturity: | ||
Amortized Cost | $ 58,784 | |
Fair value by contractual maturity: | ||
Fair Value | 58,377 | |
Mortgage-backed securities | ||
Amortized cost by contractual maturity: | ||
Due after one year through five years | 913 | |
Due after five years through ten years | 6,586 | |
Due after ten years | 77,180 | |
Amortized Cost | 84,679 | $ 67,884 |
Fair value by contractual maturity: | ||
Due after one year through five years | 914 | |
Due after five years through ten years | 6,535 | |
Due after ten years | 75,335 | |
Fair Value | $ 82,784 | $ 67,630 |
Mortgage-Backed Securities (D50
Mortgage-Backed Securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 36,042 | |
Less than 12 Months, Gross Unrealized Losses | (473) | |
12 Months or More, Fair Value | 6,939 | |
12 Months or More, Gross Unrealized Losses | (351) | |
Total, Fair Value | 42,981 | |
Total, Gross Unrealized Losses | (824) | |
Mortgage-backed securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 71,012 | $ 39,934 |
Less than 12 Months, Gross Unrealized Losses | (1,592) | (301) |
12 Months or More, Fair Value | 9,967 | 3,782 |
12 Months or More, Gross Unrealized Losses | (312) | (83) |
Total, Fair Value | 80,979 | 43,716 |
Total, Gross Unrealized Losses | (1,904) | (384) |
Government pass-throughs, Ginnie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 18,536 | 12,231 |
Less than 12 Months, Gross Unrealized Losses | (381) | (87) |
12 Months or More, Fair Value | 2,199 | 2,591 |
12 Months or More, Gross Unrealized Losses | (75) | (44) |
Total, Fair Value | 20,735 | 14,822 |
Total, Gross Unrealized Losses | (456) | (131) |
Government pass-throughs, Fannie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 13,921 | 3,227 |
Less than 12 Months, Gross Unrealized Losses | (452) | (8) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 13,921 | 3,227 |
Total, Gross Unrealized Losses | (452) | (8) |
Government pass-throughs, Freddie Mac | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 13,215 | 5,949 |
Less than 12 Months, Gross Unrealized Losses | (397) | (14) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 13,215 | 5,949 |
Total, Gross Unrealized Losses | (397) | (14) |
Private pass-throughs | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 21,390 | 12,559 |
Less than 12 Months, Gross Unrealized Losses | (237) | (113) |
12 Months or More, Fair Value | 2,872 | 0 |
12 Months or More, Gross Unrealized Losses | (47) | 0 |
Total, Fair Value | 24,262 | 12,559 |
Total, Gross Unrealized Losses | (284) | (113) |
Collateralized mortgage obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 3,950 | 5,968 |
Less than 12 Months, Gross Unrealized Losses | (125) | (79) |
12 Months or More, Fair Value | 4,896 | 1,191 |
12 Months or More, Gross Unrealized Losses | (190) | (39) |
Total, Fair Value | 8,846 | 7,159 |
Total, Gross Unrealized Losses | $ (315) | $ (118) |
Mortgage-Backed Securities (D51
Mortgage-Backed Securities (Detail Textuals) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Security | Dec. 31, 2017USD ($) | |
Mortgage-backed securities | ||||
Total proceeds from sales | $ 15,576,000 | |||
Gains on sales of mortgage-backed securities | $ 75,000 | 75,000 | ||
Loss on sales of mortgage-backed securities | $ 15,000 | $ 15,000 | ||
Number of mortgage-backed securities held in an unrealized loss position | Security | 20 | |||
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 25,500,000 | |||
Mortgage-backed securities available for sale | ||||
Mortgage-backed securities | ||||
Number of mortgage-backed securities held in an unrealized loss position | Security | 69 | |||
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 11,000,000 |
Loans Receivable and Related 52
Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 738,940 | $ 750,867 |
Individually evaluated for impairment | 295 | 295 |
Total loans before allowance for loan losses | 739,235 | 751,162 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 256,933 | 261,715 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 256,933 | 261,715 |
Real Estate Loans | Commercial Real Estate | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 304,573 | 300,702 |
Individually evaluated for impairment | 295 | 295 |
Total loans before allowance for loan losses | 304,868 | 300,997 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 125,036 | 130,915 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 125,036 | 130,915 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 51,165 | 56,122 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 51,165 | 56,122 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 1,233 | 1,413 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | $ 1,233 | $ 1,413 |
Loans Receivable and Related 53
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 54
Loans Receivable and Related Allowance for Loan Losses (Details 2) $ in Thousands | Jun. 30, 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 55
Loans Receivable and Related Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Impaired Loans | |||||
Impaired Loans With Allowance, Recorded Investment | $ 0 | $ 0 | $ 0 | ||
Impaired Loans With Allowance, Related Allowance | 0 | 0 | 0 | ||
Impaired loans without allowance recorded investment | 295 | 295 | 295 | ||
Total Impaired Loans, Recorded Investment | 295 | 295 | 295 | ||
Total Impaired Loans, Unpaid Principal Balance | 295 | 295 | 295 | ||
Average investment in impaired loans | 295 | $ 422 | 295 | $ 422 | |
Interest income recognized on impaired loans | 0 | 0 | 0 | 0 | |
Real Estate Loans | Commercial real estate | |||||
Impaired Loans | |||||
Impaired Loans With Allowance, Recorded Investment | 0 | 0 | 0 | ||
Impaired Loans With Allowance, Related Allowance | 0 | 0 | 0 | ||
Impaired loans without allowance recorded investment | 295 | 295 | 295 | ||
Total Impaired Loans, Recorded Investment | 295 | 295 | 295 | ||
Total Impaired Loans, Unpaid Principal Balance | 295 | 295 | $ 295 | ||
Average investment in impaired loans | $ 295 | $ 422 | $ 295 | $ 422 |
Loans Receivable and Related 56
Loans Receivable and Related Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 739,235 | $ 751,162 |
Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 731,024 | 742,679 |
Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 5,231 | 5,527 |
Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,980 | 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 | 256,933 | 261,715 |
Real Estate Loans | One-to-four-family residential and construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 255,000 | 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 | 0 | 211 |
Real Estate Loans | One-to-four-family residential and construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,933 | 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 | 304,868 | 300,997 |
Real Estate Loans | Commercial real estate | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 299,124 | 295,164 |
Real Estate Loans | Commercial real estate | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 4,930 | 5,077 |
Real Estate Loans | Commercial real estate | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 814 | 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 | 125,036 | 130,915 |
Real Estate Loans | Home equity loans and lines of credit | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 124,753 | 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 | 65 | 0 |
Real Estate Loans | Home equity loans and lines of credit | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 218 | 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 | 51,165 | 56,122 |
Commercial business loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 50,924 | 55,878 |
Commercial business loans | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 236 | 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 | 1,233 | 1,413 |
Other loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,223 | 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 | 10 | 2 |
Other loans | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 0 | $ 0 |
Loans Receivable and Related 57
Loans Receivable and Related Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 735,761 | $ 745,883 |
Non-Accrual | 2,877 | 2,907 |
90 Days Past Due and Accruing | 36 | 19 |
Total loans before allowance for loan losses | 739,235 | 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 | 316 | 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 | 245 | 454 |
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 | 254,979 | 258,202 |
Non-Accrual | 1,933 | 1,899 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 256,933 | 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 | 21 | 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 | Commercial real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 303,801 | 299,888 |
Non-Accrual | 711 | 756 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 304,868 | 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 | 155 | 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 | 201 | 15 |
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 | 124,690 | 130,383 |
Non-Accrual | 218 | 244 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 125,036 | 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 | 128 | 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 |
Commercial business loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 51,100 | 56,034 |
Non-Accrual | 5 | 5 |
90 Days Past Due and Accruing | 9 | 0 |
Total loans before allowance for loan losses | 51,165 | 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 | 7 | 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 | 44 | 0 |
Other loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 1,191 | 1,376 |
Non-Accrual | 10 | 3 |
90 Days Past Due and Accruing | 27 | 19 |
Total loans before allowance for loan losses | 1,233 | 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 | 5 | 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 | $ 0 | $ 1 |
Loans Receivable and Related 58
Loans Receivable and Related Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for loan losses | ||||||
Balance at the beginning of the period | $ 4,185 | $ 3,777 | $ 4,127 | $ 3,837 | ||
Charge-offs | (11) | (11) | (22) | (71) | ||
Recoveries | 11 | 32 | 80 | 32 | ||
Provision | 175 | 167 | 175 | 167 | ||
Balance at the end of the period | 4,360 | 3,965 | 4,360 | 3,965 | ||
Evaluated for Impairment: | ||||||
Individually | $ 0 | $ 0 | ||||
Collectively | 4,360 | 4,127 | ||||
Balance at the end of the period | 4,185 | 3,777 | 4,127 | 3,837 | 4,360 | 4,127 |
Real Estate Loans | One-to-four-family Residential and Construction | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 1,399 | 1,299 | 1,384 | 1,280 | ||
Charge-offs | 0 | (1) | 0 | (42) | ||
Recoveries | 0 | 28 | 69 | 28 | ||
Provision | (216) | 20 | (270) | 80 | ||
Balance at the end of the period | 1,183 | 1,346 | 1,183 | 1,346 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 1,183 | 1,384 | ||||
Balance at the end of the period | 1,399 | 1,299 | 1,384 | 1,280 | 1,183 | 1,384 |
Real Estate Loans | Commercial Real Estate | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 2,122 | 1,687 | 2,003 | 1,787 | ||
Charge-offs | 0 | 0 | (9) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 308 | 100 | 436 | 0 | ||
Balance at the end of the period | 2,430 | 1,787 | 2,430 | 1,787 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 2,430 | 2,003 | ||||
Balance at the end of the period | 2,122 | 1,687 | 2,003 | 1,787 | 2,430 | 2,003 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 390 | 532 | 400 | 547 | ||
Charge-offs | 0 | (6) | 0 | (6) | ||
Recoveries | 11 | 0 | 11 | 0 | ||
Provision | (16) | 16 | (26) | 1 | ||
Balance at the end of the period | 385 | 542 | 385 | 542 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 385 | 400 | ||||
Balance at the end of the period | 390 | 532 | 400 | 547 | 385 | 400 |
Commercial Business | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 270 | 255 | 333 | 211 | ||
Charge-offs | (11) | 0 | (11) | (1) | ||
Recoveries | 0 | 1 | 0 | 1 | ||
Provision | 100 | 30 | 37 | 75 | ||
Balance at the end of the period | 359 | 286 | 359 | 286 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 359 | 333 | ||||
Balance at the end of the period | 270 | 255 | 333 | 211 | 359 | 333 |
Other Loans | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 4 | 4 | 7 | 12 | ||
Charge-offs | 0 | (4) | (2) | (22) | ||
Recoveries | 0 | 3 | 0 | 3 | ||
Provision | (1) | 1 | (2) | 11 | ||
Balance at the end of the period | 3 | 4 | 3 | 4 | ||
Evaluated for Impairment: | ||||||
Individually | 0 | 0 | ||||
Collectively | 3 | 7 | ||||
Balance at the end of the period | $ 4 | $ 4 | $ 7 | $ 12 | $ 3 | $ 7 |
Loans Receivable and Related 59
Loans Receivable and Related Allowance for Loan Losses (Detail Textuals) | 6 Months Ended | |
Jun. 30, 2018USD ($)SecurityLoan | Dec. 31, 2017USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Deferred loan costs of loans receivable | $ 243,000 | $ 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 | 2 | |
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 Sa60
Foreclosed Assets Held For Sale (Detail Textuals) | Jun. 30, 2018USD ($)Residentialproperties | Dec. 31, 2017USD ($) |
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | $ 354,000 | $ 419,000 |
Number of properties | Residentialproperties | 2 | |
Initiated formal foreclosure procedures | $ 1,500,000 | |
One-to-four family residential loans | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | 1,000,000 | |
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 | 6 Months Ended | 12 Months Ended |
Jul. 25, 2012 | Jun. 30, 2018 | Dec. 31, 2017 | |
Options | |||
Exercised (in shares) | (10,884) | ||
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) | (10,884) | ||
Forfeited (in shares) | 0 | ||
Outstanding at June 30, 2018 (in shares) | 291,347 | 302,231 | |
Exercisable at June 30, 2018 (in shares) | 291,347 | ||
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) | 19.3 | ||
Forfeited (in dollars per share) | 0 | ||
Outstanding at June 30, 2018 (in dollars per share) | 17.18 | $ 17.25 | |
Exercisable at June 30, 2018 (in dollars per share) | $ 17.18 | ||
Weighted Average Remaining Contractual Term | 10 years | 3 years 7 months 28 days | 4 years 1 month 10 days |
Stock Based Compensation (Det62
Stock Based Compensation (Detail Textuals) - USD ($) | Apr. 10, 2017 | Apr. 07, 2017 | Jul. 25, 2012 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 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 | $ 110,000 | $ 97,000 | $ 218,000 | $ 192,000 | ||||
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 7 months 28 days | 4 years 1 month 10 days | |||||
Number of shares available to be issued | 69,742 | 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 | 38,000 | ||||||
Tax benefit recorded related to compensation expense | 2,000 | 4,000 | ||||||
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 | 27,826 | ||||||
Compensation expense | 92,000 | 183,000 | ||||||
Tax benefit recorded related to compensation expense | $ 30,000 | $ 61,000 | ||||||
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Shareholders Equity And Share Based Payments Disclosure [Abstract] | ||||
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 | $ 110,000 | $ 97,000 | $ 218,000 | $ 192,000 |
Total shares held by ESOP | 255,786 | 255,786 | ||
Unallocated shares | 173,458 | 173,458 | ||
Fair market value of the unallocated ESOP shares | $ 5,300,000 | $ 5,300,000 |
Pension Information (Details)
Pension Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Interest Cost | $ 33 | $ 36 | $ 66 | $ 108 |
Expected return on plan assets | (41) | (40) | (82) | (120) |
Amortization of net loss | 3 | 23 | 6 | 69 |
Settlement obligation | 30 | 0 | 30 | 105 |
Net periodic pension cost | $ 25 | $ 19 | $ 20 | $ 162 |
Fair Value of Assets and Liab65
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Assets measured at fair value | ||||
Total investment securities available for sale | $ 58,377 | $ 65,559 | ||
Equity securities available for sale | 4,170 | |||
Mortgage-backed securities available for sale | 82,784 | 67,630 | ||
Level 1 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | [1] | 4,170 | |
Equity securities available for sale | [2] | 4,609 | ||
Mortgage-backed securities available for sale | 0 | [1] | 0 | |
Level 2 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 58,377 | [1] | 61,389 | |
Equity securities available for sale | [2] | 0 | ||
Mortgage-backed securities available for sale | 82,784 | [1] | 67,630 | |
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 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 58,377 | 65,559 | ||
Equity securities available for sale | 4,609 | 4,170 | ||
Mortgage-backed securities available for sale | 82,784 | 67,630 | ||
Total recurring fair value measurements | 145,770 | 133,189 | ||
Recurring basis | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 8,202 | 8,340 | ||
Recurring basis | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 2,256 | 2,272 | ||
Recurring basis | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 47,919 | 50,777 | ||
Recurring basis | Level 1 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 4,170 | ||
Equity securities available for sale | 4,609 | 4,170 | ||
Mortgage-backed securities available for sale | 0 | 0 | ||
Total recurring fair value measurements | 4,609 | 4,170 | ||
Recurring basis | Level 1 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Level 1 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Level 1 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Level 2 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 58,377 | 61,389 | ||
Equity securities available for sale | 0 | 0 | ||
Mortgage-backed securities available for sale | 82,784 | 67,630 | ||
Total recurring fair value measurements | 141,161 | 129,019 | ||
Recurring basis | Level 2 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 8,202 | 8,340 | ||
Recurring basis | Level 2 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 2,256 | 2,272 | ||
Recurring basis | Level 2 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 47,919 | 50,777 | ||
Recurring basis | Level 3 | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Equity securities available for sale | 0 | 0 | ||
Mortgage-backed securities available for sale | 0 | 0 | ||
Total recurring fair value measurements | 0 | 0 | ||
Recurring basis | Level 3 | U.S. government and agency obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Level 3 | Corporate bonds | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | 0 | 0 | ||
Recurring basis | Level 3 | Municipal obligations | ||||
Assets measured at fair value | ||||
Total investment securities available for sale | $ 0 | $ 0 | ||
[1] | The financial instrument is carried at fair value through other comprehensive income at June 30, 2018. | |||
[2] | The financial instrument is carried at fair value through net income at June 30, 2018. |
Fair Value of Assets and Liab66
Fair Value of Assets and Liabilities (Details 1) - Nonrecurring basis - USD ($) $ in Thousands | Jun. 30, 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 Liab67
Fair Value of Assets and Liabilities (Details 2) - Nonrecurring basis - Level 3 $ in Thousands | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate | $ 354 | $ 419 | |
Impaired loans | $ 295 | $ 295 | |
Appraisal Of Collateral | Appraisal adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 0 | |
Appraisal Of Collateral | Appraisal adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 40 | |
Appraisal Of Collateral | Liquidation expenses | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 0 | |
Appraisal Of Collateral | Liquidation expenses | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 10 | |
Fair Value Of Collateral | Appraisal adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 0 | |
Fair Value Of Collateral | Appraisal adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 20 | |
Fair Value Of Collateral | Liquidation expenses | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 0 | |
Fair Value Of Collateral | Liquidation expenses | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 10 | |
[1] | 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. | ||
[2] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||
[3] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value of Assets and Liab68
Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | $ 3,171 | $ 3,523 | ||
Interest-earning deposits in other institutions | 24,810 | 12,742 | ||
Investment securities | 58,377 | 65,559 | ||
Mortgage-backed securities | 82,784 | 67,630 | ||
Equity Securities | 4,170 | |||
Bank-owned life insurance | 22,304 | 22,040 | ||
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 489,994 | 482,902 | ||
Certificate deposit accounts | 228,728 | 211,944 | ||
Federal Home Loan Bank short-term borrowings | 27,021 | |||
Carrying Amount | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 3,171 | [1] | 3,523 | |
Interest-earning deposits in other institutions | 24,810 | [1] | 12,742 | |
Certificate of deposit | 499 | [1] | 749 | |
Investment securities | 58,377 | [2] | 65,559 | |
Mortgage-backed securities | 82,784 | [2] | 67,630 | |
Equity Securities | [3] | 4,609 | ||
Federal Home Loan Bank stock | 8,535 | [1] | 9,468 | |
Loans receivable | 734,875 | [1],[4] | 747,035 | |
Bank-owned life insurance | 22,304 | [1] | 22,040 | |
Accrued interest receivable | 2,707 | [1] | 2,657 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 489,994 | [1] | 482,902 | |
Certificate deposit accounts | 228,728 | [1] | 211,944 | |
Federal Home Loan Bank short-term borrowings | 27,021 | |||
Federal Home Loan Bank advances | 121,103 | [1] | 107,652 | |
Securities sold under agreements to repurchase | 4,378 | [1] | 4,240 | |
Accrued interest payable | 1,002 | [1] | 993 | |
Fair Value | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 3,171 | [1] | 3,523 | |
Interest-earning deposits in other institutions | 24,810 | [1] | 12,742 | |
Certificate of deposit | 499 | [1] | 749 | |
Investment securities | 58,377 | [2] | 65,559 | |
Mortgage-backed securities | 82,784 | [2] | 67,630 | |
Equity Securities | [3] | 4,609 | ||
Federal Home Loan Bank stock | 8,535 | [1] | 9,468 | |
Loans receivable | 725,523 | [1],[4] | 747,371 | |
Bank-owned life insurance | 22,304 | [1] | 22,040 | |
Accrued interest receivable | 2,707 | [1] | 2,657 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 489,994 | [1] | 482,902 | |
Certificate deposit accounts | 226,176 | [1] | 211,454 | |
Federal Home Loan Bank short-term borrowings | 119,786 | [1] | 27,021 | |
Federal Home Loan Bank advances | 0 | [1] | 107,223 | |
Securities sold under agreements to repurchase | 4,378 | [1] | 4,240 | |
Accrued interest payable | 1,002 | [1] | 993 | |
Level 1 | ||||
Financial Instruments - Assets: | ||||
Cash on hand and due from banks | 3,171 | [1] | 3,523 | |
Interest-earning deposits in other institutions | 24,810 | [1] | 12,742 | |
Certificate of deposit | 499 | [1] | 749 | |
Investment securities | 0 | [2] | 4,170 | |
Mortgage-backed securities | 0 | [2] | 0 | |
Equity Securities | [3] | 4,609 | ||
Federal Home Loan Bank stock | 8,535 | [1] | 9,468 | |
Loans receivable | 0 | [1],[4] | 0 | |
Bank-owned life insurance | 22,304 | [1] | 22,040 | |
Accrued interest receivable | 2,707 | [1] | 2,657 | |
Financial Instruments - Liabilities: | ||||
Demand, savings and club accounts | 489,994 | [1] | 482,902 | |
Certificate deposit accounts | 0 | [1] | 0 | |
Federal Home Loan Bank short-term borrowings | 27,021 | |||
Federal Home Loan Bank advances | 0 | [1] | 0 | |
Securities sold under agreements to repurchase | 4,378 | [1] | 4,240 | |
Accrued interest payable | 1,002 | [1] | 993 | |
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 | 58,377 | [2] | 61,389 | |
Mortgage-backed securities | 82,784 | [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 | |||
Federal Home Loan Bank advances | 0 | [1] | 0 | |
Securities sold under agreements to repurchase | 0 | [1] | 0 | |
Accrued interest payable | 0 | [1] | 0 | |
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 | 725,523 | [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 | 226,176 | [1] | 211,454 | |
Federal Home Loan Bank short-term borrowings | 119,786 | [1] | 0 | |
Federal Home Loan Bank advances | 0 | [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 June 30, 2018. | |||
[2] | The financial instrument is carried at fair value through other comprehensive income at June 30, 2018. | |||
[3] | The financial instrument is carried at fair value through net income at June 30, 2018. | |||
[4] | In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of June 30, 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 Comprehensi69
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | $ (1,829) | $ (424) | $ 528 | $ (776) |
Total other comprehensive (loss) income | (281) | 978 | (2,222) | 1,330 |
Balance at the end of the period | (2,110) | 554 | (2,110) | 554 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | (1,829) | (424) | 528 | (776) |
Other comprehensive loss before reclassification | (313) | 1,001 | (2,256) | 1,185 |
Amount reclassified from accumulated other comprehensive income | 32 | (23) | 34 | 145 |
Total other comprehensive (loss) income | (281) | 978 | (2,222) | 1,330 |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |||
Balance at the end of the period | (2,110) | 554 | (2,110) | 554 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Securities | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | (1,519) | 196 | 840 | (31) |
Other comprehensive loss before reclassification | (313) | 1,001 | (2,256) | 1,185 |
Amount reclassified from accumulated other comprehensive income | 13 | (38) | 13 | 5 |
Total other comprehensive (loss) income | (300) | 963 | (2,243) | 1,190 |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |||
Balance at the end of the period | (1,819) | 1,159 | (1,819) | 1,159 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrecognized Pension Costs | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | (310) | (620) | (312) | (745) |
Other comprehensive loss before reclassification | 0 | 0 | 0 | 0 |
Amount reclassified from accumulated other comprehensive income | 19 | 15 | 21 | 140 |
Total other comprehensive (loss) income | 19 | 15 | 21 | 140 |
Change in accounting principle for adoption of ASU 2016-01 | 0 | |||
Balance at the end of the period | $ (291) | $ (605) | $ (291) | $ (605) |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on sales of securities | $ (17) | $ 57 | $ (17) | $ (7) |
Other operating expenses | 1,227 | 1,000 | 2,244 | 1,471 |
Income tax expense (benefit) | 638 | 140 | 1,214 | 412 |
Net income | 2,494 | 385 | 4,654 | 948 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income | 32 | (23) | 34 | 145 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized gains on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on sales of securities | 17 | (57) | 17 | 7 |
Income tax expense (benefit) | (4) | 19 | (4) | (2) |
Amount reclassified from accumulated other comprehensive income | 13 | (38) | 13 | 5 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | (5) | (8) | (6) | (73) |
Amount reclassified from accumulated other comprehensive income | 19 | 15 | 21 | 140 |
Net income | 32 | (23) | 34 | 145 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other operating expenses | 3 | $ 23 | 6 | 69 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Distribution settlement | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other operating expenses | $ 21 | $ 21 | $ 144 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Noninterest Income | ||||
Total noninterest income | $ 1,276 | $ 1,245 | $ 2,385 | $ 1,779 |
Service charges on deposit accounts | ||||
Noninterest Income | ||||
Fees and commissions | 762 | 745 | 1,472 | 1,126 |
Investment management fees | ||||
Noninterest Income | ||||
Fees and commissions | 195 | 122 | 327 | 194 |
Accounting Standards Update 2014-09 (Topic 606) | ||||
Noninterest Income | ||||
Noninterest income (in-scope of Topic 606) | 810 | 753 | 1,549 | 1,162 |
Noninterest income (out-of-scope of Topic 606) | 466 | 492 | 836 | 617 |
Total noninterest income | 1,276 | 1,245 | 2,385 | 1,779 |
Accounting Standards Update 2014-09 (Topic 606) | Service charges on deposit accounts | ||||
Noninterest Income | ||||
Fees and commissions | 615 | 631 | 1,222 | 968 |
Accounting Standards Update 2014-09 (Topic 606) | Investment management fees | ||||
Noninterest Income | ||||
Fees and commissions | $ 195 | $ 122 | $ 327 | $ 194 |
Merger with Allegheny Valley 72
Merger with Allegheny Valley Bancorp, Inc. (Details) $ / shares in Units, $ in Thousands | Apr. 07, 2017USD ($)$ / sharesshares | Jun. 30, 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 73
Merger with Allegheny Valley Bancorp, Inc. (Details 1) - USD ($) $ in Thousands | Apr. 07, 2017 | Jun. 30, 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 74
Merger with Allegheny Valley Bancorp, Inc. (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Total | $ 2,894 | $ 3,344 |
Allegheny Valley | Core deposit intangible | ||
Business Acquisition [Line Items] | ||
2,018 | 386 | |
2,019 | 628 | |
2,020 | 472 | |
2,021 | 352 | |
2,022 | 325 | |
2,023 | 325 | |
2,024 | 325 | |
2,025 | 81 | |
Total | $ 2,894 |
Merger with Allegheny Valley 75
Merger with Allegheny Valley Bancorp, Inc. (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | Apr. 07, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Purchased credit impaired loans | $ 2,500 | ||
Goodwill resulting from the AVLY merger | 25,836 | $ 25,836 | |
Core deposit intangible | 2,894 | $ 3,344 | |
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 | ||
Percentage reserved for collection of principal and interest on loans | 100.00% | ||
Loan portfolio without evidence of deterioration | $ 316,448 | ||
Fair value of loan | 311,736 | ||
Interest rate adjustment | 861 | ||
General credit adjustment | 3,851 | ||
Goodwill and other intangible assets | 21,300 | ||
Goodwill resulting from the AVLY merger | $ 17,216 | 17,100 | |
Allegheny Valley | Core deposit intangible | |||
Business Acquisition [Line Items] | |||
Core deposit intangible | 2,894 | ||
Accumulated amortization of core deposit intangible | $ 1,200 |