Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-34893 | |
Entity Registrant Name | Standard AVB Financial Corp. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-3100949 | |
Entity Address, Address Line One | 2640 Monroeville Blvd | |
Entity Address, City or Town | Monroeville | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15146 | |
City Area Code | 412 | |
Local Phone Number | 856-0363 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | STND | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,774,165 | |
Entity Central Index Key | 0001492915 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash on hand and due from banks | $ 3,591 | $ 3,396 |
Interest-earning deposits in other institutions | 62,603 | 29,031 |
Cash and Cash Equivalents | 66,194 | 32,427 |
Investment securities available for sale, at fair value | 86,057 | 69,884 |
Equity securities, at fair value | 2,252 | 2,955 |
Mortgage-backed securities available for sale, at fair value | 88,568 | 91,478 |
Certificate of deposit | 249 | 249 |
Federal Home Loan Bank and other restricted stock, at cost | 9,032 | 7,486 |
Loans receivable, net of allowance for loan losses of $7,345 and $4,882 | 743,991 | 712,965 |
Loans held for sale | 1,753 | 373 |
Foreclosed real estate | 497 | 404 |
Office properties and equipment, net | 9,598 | 9,930 |
Bank-owned life insurance | 24,792 | 23,374 |
Goodwill | 25,836 | 25,836 |
Core deposit intangible | 1,519 | 1,881 |
Accrued interest receivable and other assets | 5,669 | 5,145 |
TOTAL ASSETS | 1,066,007 | 984,387 |
Deposits: | ||
Demand and savings accounts | 580,378 | 489,339 |
Time deposits | 227,232 | 245,114 |
Total Deposits | 807,610 | 734,453 |
Long-term borrowings | 96,078 | 99,098 |
Securities sold under agreements to repurchase | 9,089 | 3,740 |
Accrued interest payable and other liabilities | 8,939 | 5,248 |
TOTAL LIABILITIES | 921,716 | 842,539 |
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, 4,692,213 and 4,689,354 shares outstanding, respectively | 47 | 47 |
Additional paid-in-capital | 71,947 | 72,155 |
Retained earnings | 71,514 | 70,037 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,418) | (1,533) |
Accumulated other comprehensive income | 2,201 | 1,142 |
TOTAL STOCKHOLDERS' EQUITY | 144,291 | 141,848 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,066,007 | $ 984,387 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Consolidated Statements of Financial Condition | ||
Allowance for loan losses, loans receivable (in dollars) | $ 7,345 | $ 4,882 |
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 | 4,692,213 | 4,689,354 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 7,744 | $ 8,239 | $ 23,236 | $ 24,426 |
Mortgage-backed securities | 346 | 572 | 1,186 | 1,690 |
Investments: | ||||
Taxable | 139 | 112 | 360 | 345 |
Tax-exempt | 471 | 402 | 1,302 | 1,170 |
Federal Home Loan Bank and other restricted stock | 134 | 147 | 368 | 476 |
Interest-earning deposits and federal funds sold | 17 | 90 | 119 | 268 |
Total Interest and Dividend Income | 8,851 | 9,562 | 26,571 | 28,375 |
Interest Expense | ||||
Deposits | 1,242 | 1,818 | 4,233 | 5,202 |
Federal Home Loan Bank short-term borrowings | 7 | 44 | ||
Long-term borrowings | 521 | 570 | 1,608 | 1,640 |
Securities sold under agreements to repurchase | 3 | 3 | 10 | 13 |
Total Interest Expense | 1,766 | 2,398 | 5,851 | 6,899 |
Net Interest Income | 7,085 | 7,164 | 20,720 | 21,476 |
Provision for Loan Losses | 368 | 254 | 2,538 | 544 |
Net Interest Income after Provision for Loan Losses | 6,717 | 6,910 | 18,182 | 20,932 |
Noninterest Income | ||||
Earnings on bank-owned life insurance | 141 | 136 | 418 | 401 |
Net gains (losses) on sales of securities | 23 | 23 | (1) | |
Net equity securities fair value adjustment gains (losses) | 87 | 120 | (703) | 155 |
Net loan sale gains and referral fees | 788 | 78 | 1,269 | 160 |
Other income | 14 | 187 | 67 | 266 |
Total Noninterest Income | 1,984 | 1,487 | 3,854 | 3,719 |
Noninterest Expenses | ||||
Compensation and employee benefits | 3,210 | 3,161 | 9,597 | 9,595 |
Data processing | 181 | 177 | 547 | 530 |
Premises and occupancy costs | 602 | 565 | 1,822 | 1,834 |
Automatic teller machine expense | 155 | 160 | 436 | 445 |
Federal deposit insurance | 67 | (32) | 89 | 104 |
Core deposit amortization | 109 | 144 | 362 | 482 |
Merger expenses | 553 | 553 | ||
Other operating expenses | 1,079 | 1,051 | 3,270 | 3,093 |
Total Noninterest Expenses | 5,956 | 5,226 | 16,676 | 16,083 |
Income before Income Tax Expense | 2,745 | 3,171 | 5,360 | 8,568 |
Income Tax Expense | ||||
Federal | 346 | 509 | 605 | 1,351 |
State | 162 | 198 | 271 | 486 |
Total Income Tax Expense | 508 | 707 | 876 | 1,837 |
Net Income | $ 2,237 | $ 2,464 | $ 4,484 | $ 6,731 |
Earnings Per Share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.49 | $ 0.54 | $ 0.99 | $ 1.45 |
Diluted earnings per common share (in dollars per share) | 0.49 | 0.53 | 0.97 | 1.42 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 |
Basic weighted average shares outstanding (in shares) | 4,524,953 | 4,573,856 | 4,529,127 | 4,628,308 |
Diluted weighted average shares outstanding (in shares) | 4,585,355 | 4,665,801 | 4,602,793 | 4,725,186 |
Service charges | ||||
Noninterest Income | ||||
Fees and commissions | $ 775 | $ 794 | $ 2,275 | $ 2,197 |
Investment management fees | ||||
Noninterest Income | ||||
Fees and commissions | $ 156 | $ 172 | $ 505 | $ 541 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 2,237 | $ 2,464 | $ 4,484 | $ 6,731 |
Other comprehensive (loss) income: | ||||
Change in unrealized gain on securities available for sale | (353) | 324 | 1,356 | 3,613 |
Tax effect | 72 | (68) | (285) | (759) |
Reclassification adjustment for security (gains) losses realized in income | (23) | (23) | 1 | |
Tax effect | 5 | 5 | ||
Change in pension obligation for defined benefit plan | 3 | 2 | 8 | 7 |
Tax effect | (1) | (2) | (1) | |
Total other comprehensive (loss) income | (297) | 258 | 1,059 | 2,861 |
Total Comprehensive Income | $ 1,940 | $ 2,722 | $ 5,543 | $ 9,592 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2018 | $ 48 | $ 75,571 | $ 65,301 | $ (1,686) | $ (1,344) | $ 137,890 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 6,731 | 6,731 | ||||
Other comprehensive income (loss) | 2,861 | 2,861 | ||||
Stock repurchases | (1) | (3,700) | (3,701) | |||
Cash dividends | (3,069) | (3,069) | ||||
Stock options exercised | 206 | 206 | ||||
Compensation expense on stock awards | 58 | 58 | ||||
Compensation expense on ESOP | 192 | 115 | 307 | |||
Balance at Sep. 30, 2019 | 47 | 72,327 | 68,963 | (1,571) | 1,517 | 141,283 |
Balance at Jun. 30, 2019 | 48 | 74,340 | 67,508 | (1,609) | 1,259 | 141,546 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 2,464 | 2,464 | ||||
Other comprehensive income (loss) | 258 | 258 | ||||
Stock repurchases | (1) | (2,096) | (2,097) | |||
Cash dividends | (1,009) | (1,009) | ||||
Compensation expense on stock awards | 23 | 23 | ||||
Compensation expense on ESOP | 60 | 38 | 98 | |||
Balance at Sep. 30, 2019 | 47 | 72,327 | 68,963 | (1,571) | 1,517 | 141,283 |
Balance at Dec. 31, 2019 | 47 | 72,155 | 70,037 | (1,533) | 1,142 | 141,848 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,484 | 4,484 | ||||
Other comprehensive income (loss) | 1,059 | 1,059 | ||||
Stock repurchases | (1,283) | (1,283) | ||||
Cash dividends | (3,007) | (3,007) | ||||
Stock options exercised | 822 | 822 | ||||
Compensation expense on stock awards | 108 | 108 | ||||
Compensation expense on ESOP | 145 | 115 | 260 | |||
Balance at Sep. 30, 2020 | 47 | 71,947 | 71,514 | (1,418) | 2,201 | 144,291 |
Balance at Jun. 30, 2020 | 47 | 71,391 | 70,247 | (1,456) | 2,498 | 142,727 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 2,237 | 2,237 | ||||
Other comprehensive income (loss) | (297) | (297) | ||||
Stock repurchases | (86) | (86) | ||||
Cash dividends | (970) | (970) | ||||
Stock options exercised | 564 | 564 | ||||
Compensation expense on stock awards | 40 | 40 | ||||
Compensation expense on ESOP | 38 | 38 | 76 | |||
Balance at Sep. 30, 2020 | $ 47 | $ 71,947 | $ 71,514 | $ (1,418) | $ 2,201 | $ 144,291 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statement of Changes in Stockholders' Equity | ||||
Stock repurchases, shares | 2,631 | 76,039 | 52,131 | 133,096 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 |
Number of stock options exercised | 34,195 | 48,637 | 11,665 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities | ||
Net income | $ 4,484,000 | $ 6,731,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,483,000 | 1,401,000 |
Provision for loan losses | 2,538,000 | 544,000 |
Amortization of core deposit intangible | 362,000 | 482,000 |
Net (gain) loss on sale of securities available for sale | (23,000) | 1,000 |
Net equity securities fair value adjustment losses (gains) | 703,000 | (155,000) |
Net gain on sale of office properties and equipment | (26,000) | (29,000) |
Net gain on sale of foreclosed real estate | (12,000) | |
Origination of loans held for sale | (56,335,000) | (9,070,000) |
Proceeds from sale of loans held for sale | 56,195,000 | 9,230,000 |
Net loan sale gains and referral fees | (1,269,000) | (160,000) |
Compensation expense on ESOP | 260,000 | 307,000 |
Compensation expense on stock awards | 108,000 | 58,000 |
Deferred income taxes | (396,000) | (126,000) |
Increase in accrued interest receivable | (471,000) | (78,000) |
Earnings on bank-owned life insurance | (418,000) | (401,000) |
Decrease in accrued interest payable | (164,000) | (134,000) |
Other, net | 840,000 | 3,085,000 |
Net Cash Provided by Operating Activities | 7,859,000 | 11,686,000 |
Cash Flows Used In Investing Activities | ||
Net (increase) decrease in loans | (33,831,000) | 4,122,000 |
Purchases of investment securities | (31,043,000) | (10,776,000) |
Purchases of mortgage-backed securities | (24,196,000) | (24,720,000) |
Proceeds from maturities/principal repayments/calls of investment securities | 17,555,000 | 2,535,000 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 23,937,000 | 13,752,000 |
Proceeds from sales of investment securities | 874,000 | 6,328,000 |
Proceeds from sales of mortgage-backed securities | 3,508,000 | 1,286,000 |
Purchase of Federal Home Loan Bank stock | (2,463,000) | (2,969,000) |
Redemption of Federal Home Loan Bank stock | 917,000 | 3,204,000 |
Proceeds from sales of foreclosed real estate | 171,000 | 45,000 |
Purchase of bank-owned life insurance | (1,000,000) | (265,000) |
Proceeds from sales of office properties and equipment | 26,000 | 997,000 |
Purchases of office properties and equipment | (339,000) | (527,000) |
Net Cash Used by Investing Activities | (45,884,000) | (6,988,000) |
Cash Flows From Financing Activities | ||
Net increase in demand and savings accounts | 91,039,000 | 20,569,000 |
Net decrease in time deposits | (17,882,000) | (1,492,000) |
Net increase in securities sold under agreements to repurchase | 5,349,000 | 788,000 |
Net repayments of Federal Home Loan Bank short-term borrowings | (4,524,000) | |
Repayments of Federal Home Loan Bank advances | (27,969,000) | (25,308,000) |
Proceeds from Federal Home Loan Bank advances | 25,000,000 | 25,208,000 |
Lease liabilities payments | (277,000) | (305,000) |
Exercise of stock options | 822,000 | 206,000 |
Dividends paid | (3,007,000) | (3,069,000) |
Stock repurchases | (1,283,000) | (3,701,000) |
Net Cash Provided by Financing Activities | 71,792,000 | 8,372,000 |
Net Increase in Cash and Cash Equivalents | 33,767,000 | 13,070,000 |
Cash and Cash Equivalents - Beginning | 32,427,000 | 16,207,000 |
Cash and Cash Equivalents - Ending | 66,194,000 | 29,277,000 |
Supplementary Cash Flows Information: | ||
Interest paid | 6,015,000 | 7,033,000 |
Income taxes paid | 409,000 | 2,061,000 |
Investment securities purchased not settled | 3,189,000 | |
Loans transferred to foreclosed real estate | 267,000 | 62,000 |
Right-of-use asset | (114,000) | (1,132,000) |
Lease liability | $ 114,000 | 1,158,000 |
Prepaid lease payments | $ (26,000) |
Consolidation
Consolidation | 9 Months Ended |
Sep. 30, 2020 | |
Consolidation | |
Consolidation | (1) Consolidation The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | (2) Basis of Presentation The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2019 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2020. The results for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any future interim period. Certain amounts in the 2019 financial statements have been reclassified to conform to the 2020 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Proposed Merger with Dollar
Proposed Merger with Dollar | 9 Months Ended |
Sep. 30, 2020 | |
Proposed Merger with Dollar | |
Proposed Merger with Dollar | (3) Proposed Merger with Dollar On September 25, 2020 the Company, and Dollar Mutual Bancorp announced they had entered into a definitive agreement under which Dollar Mutual Bancorp will acquire the Company in an all cash transaction valued at approximately $158 million. The Company’s stockholders will receive $33.00 for each share of Company common stock that they own. The transaction is expected to close in the first half of 2021 and is subject to customary closing conditions, including the approval of the Company’s stockholders and required regulatory approvals. However, it is possible that factors outside the control of both companies, including whether or when the required regulatory approvals will be received, could result in the merger being completed at a different time or not at all. In connection with the acquisition, the Company had incurred $553,000 ($544,000 after tax) of merger-related expenses for the three months ended September 30, 2020, primarily legal and investment banker costs, which are included in the Consolidated Statements of Income. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings per Share | |
Earnings per Share | (4) Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income available to common stockholders $ 2,237 $ 2,464 $ 4,484 $ 6,731 Basic EPS: Weighted average shares outstanding 4,524,953 4,573,856 4,529,127 4,628,308 Basic EPS $ 0.49 $ 0.54 $ 0.99 $ 1.45 Diluted EPS: Weighted average shares outstanding 4,524,953 4,573,856 4,529,127 4,628,308 Dilutive effect of common stock equivalents 60,402 91,945 73,666 96,878 Total diluted weighted average shares outstanding 4,585,355 4,665,801 4,602,793 4,725,186 Diluted EPS $ 0.49 $ 0.53 $ 0.97 $ 1.42 Options to purchase 199,144 and 255,030 shares of common stock were outstanding as of September 30, 2020 and September 30, 2019, respectively, with an average exercise price of $17.11 and $17.09, respectively. There were 605 and 252 anti-dilutive shares for the three and nine months ended September 30, 2020, respectively, which were excluded from the calculation of diluted EPS. There were no anti-dilutive shares as of September 30, 2019. As of September 30, 2020 and September 30, 2019, there were 8,172 and 3,307 shares of outstanding restricted stock, respectively, that were not fully vested and were taken into consideration in the computation of both basic and diluted earnings per common share. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (5) Recent Accounting Pronouncements Accounting Standards Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). 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 th Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Intangibles – Goodwill and Other In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20) In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, w Topic 326, Financial Instruments – Credit Losses Topic 815, Derivatives and Hedging Topic 825, Financial Instruments Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) of the effective dates of the ASUs on derivatives and hedging for companies that are not public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Intangibles ‒ Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill) In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses In March 2020, the FASB issued ASU 2020-3 , Codification Improvements to Financial Instruments. Financial Instruments amendments are effective upon issuance of this ASU. This Update is not expected to have a significant impact on the Company’s financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Available-for-sale securities other than mortgage backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Securities | (6) Investment Securities Investment securities available for sale at September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 1,000 $ 2 $ — $ 1,002 Beyond 5 year but within 10 years 3,000 2 (1) 3,001 Corporate bonds due: Within 1 year 998 8 — 1,006 Beyond 1 year but within 5 years 3,973 260 — 4,233 Municipal obligations due: Within 1 year 1,438 35 — 1,473 Beyond 1 year but within 5 years 4,096 155 — 4,251 Beyond 5 years but within 10 years 17,796 556 (1) 18,351 Beyond 10 years 52,003 825 (88) 52,740 $ 84,304 $ 1,843 $ (90) $ 86,057 December 31, 2019: U.S. government and agency obligations due: Within 1 year $ 5,986 $ 12 $ — $ 5,998 Beyond 1 year but within 5 years 1,470 29 — 1,499 Beyond 5 year but within 10 years 948 44 — 992 Corporate bonds due: Beyond 1 year but within 5 years 2,477 102 — 2,579 Municipal obligations due: Within 1 year 260 2 — 262 Beyond 1 year but within 5 years 5,085 244 — 5,329 Beyond 5 years but within 10 years 18,210 456 — 18,666 Beyond 10 years 33,951 648 (40) 34,559 $ 68,387 $ 1,537 $ (40) $ 69,884 For both the three and nine months ended September 30, 2020, gains on the sales of investment securities were $53,000 and proceeds from such sales were $874,000. For the three months ended September 30, 2019, there were no sales of investment securities. For the nine months ended September 30, 2019, proceeds from the sales of investment securities were $6.3 million, with total gains of $7,000 offset by total losses of $7,000 during the period. Investment securities with a carrying value of $11.4 million and $11.7 million were pledged to secure repurchase agreements and public funds accounts at September 30, 2020 and December 31, 2019, respectively. The following table presents the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020: U.S. government and agency obligations $ 998 $ (1) $ — $ — $ 998 $ (1) Municipal obligations 9,900 (86) 519 (3) 10,419 (89) Total $ 10,898 $ (87) $ 519 $ (3) $ 11,417 $ (90) December 31, 2019: Municipal obligations $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) Total $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) At September 30, 2020, the Company held 19 investment securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. There were no potential credit concerns identified with regard to the municipal obligations as of September 30, 2020. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses. |
Equity Securities
Equity Securities | 9 Months Ended |
Sep. 30, 2020 | |
Equity Securities | |
Equity Securities | (7) Equity Securities The following table presents the net gains and losses on equity investments recognized in earnings during the three and nine months ended September 30, 2020 and September 30, 2019, and the portion of unrealized gains and losses for those periods that relate to equity investments held (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net equity securities fair value adjustment gains (losses) $ 87 $ 120 $ (703) $ 155 Net gains realized on the sale of equity securities during the period — — — — Gains (losses) recognized on equity securities during the period $ 87 $ 120 $ (703) $ 155 There were no sales of equity securities during the three or nine month periods ended September 30, 2020 or September 30, 2019, respectively. |
Mortgage-Backed Securities
Mortgage-Backed Securities | 9 Months Ended |
Sep. 30, 2020 | |
Mortgage-backed securities available for sale | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-Backed Securities | (8) Mortgage-Backed Securities Mortgage-backed securities available for sale at September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020: Government pass-throughs: Ginnie Mae $ 23,142 $ 452 $ (35) $ 23,559 Fannie Mae 19,979 572 (70) 20,481 Freddie Mac 13,128 409 — 13,537 Private pass-throughs 18,459 30 (229) 18,260 Collateralized mortgage obligations 12,524 238 (31) 12,731 $ 87,232 $ 1,701 $ (365) $ 88,568 December 31, 2019: Government pass-throughs: Ginnie Mae $ 21,386 $ 188 $ (70) $ 21,504 Fannie Mae 20,537 258 — 20,795 Freddie Mac 13,986 134 (34) 14,086 Private pass-throughs 21,904 — (301) 21,603 Collateralized mortgage obligations 13,406 110 (26) 13,490 $ 91,219 $ 690 $ (431) $ 91,478 Private pass-throughs include Small Business Administration (“SBA”) securities that are each an aggregation of SBA guaranteed portions of loans made by SBA lenders under section 7(a) of the Small Business Act. The guaranty is backed by the full faith and credit of the United States. For both the three and nine months ended September 30, 2020, losses on the sales of mortgage-backed securities were $30,000 and proceeds from such sales were $3.5 million. For the three months ended September 30, 2019, there were no sales of mortgage-backed securities. For the nine months ended September 30, 2019, losses on the sales of mortgage-backed securities were $1,000 and proceeds from such sales were $1.3 million. The amortized cost and fair value of mortgage-backed securities at September 30, 2020, 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 $ 858 $ 854 Due after five years through ten years 4,819 4,858 Due after ten years 81,555 82,856 Total Mortgage-Backed Securities $ 87,232 $ 88,568 The following table presents the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020: Government pass-throughs: Ginnie Mae $ 2,781 $ (20) $ 1,388 $ (15) $ 4,169 $ (35) Fannie Mae 5,553 (70) — — 5,553 (70) Private pass-throughs — — 16,539 (229) 16,539 (229) Collateralized mortgage obligations 4,067 (31) — — 4,067 (31) Total $ 12,401 $ (121) $ 17,927 $ (244) $ 30,328 $ (365) December 31, 2019: Government pass-throughs: Ginnie Mae $ 4,070 $ (27) $ 3,516 $ (43) $ 7,586 $ (70) Freddie Mac 5,537 (34) — — 5,537 (34) Private pass-throughs 2,060 (29) 19,197 (272) 21,257 (301) Collateralized mortgage obligations 562 (2) 3,526 (24) 4,088 (26) Total $ 12,229 $ (92) $ 26,239 $ (339) $ 38,468 $ (431) At September 30, 2020, the Company held 27 mortgage-backed securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized loss to be temporary impairment loss. Mortgage-backed securities with a carrying value of $14.6 million and $15.1 million were pledged to secure repurchase agreements and public funds accounts at September 30, 2020 and December 31, 2019, respectively. |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Loans Receivable and Related Allowance for Loan Losses | |
Loans Receivable and Related Allowance for Loan Losses | (9) Loans Receivable and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio by the amounts collectively evaluated for impairment and the amounts individually evaluated for impairment, and the related allowance for loan losses, as of September 30, 2020 and December 31, 2019 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total September 30, 2020: Collectively evaluated for impairment $ 202,193 $ 358,527 $ 99,692 $ 86,714 $ 521 $ 747,647 Individually evaluated for impairment — 3,071 — 618 — 3,689 Total loans before allowance for loan losses $ 202,193 $ 361,598 $ 99,692 $ 87,332 $ 521 $ 751,336 December 31, 2019: Collectively evaluated for impairment $ 234,421 $ 323,008 $ 111,499 $ 46,907 $ 570 $ 716,405 Individually evaluated for impairment — 835 — 607 — 1,442 Total loans before allowance for loan losses $ 234,421 $ 323,843 $ 111,499 $ 47,514 $ 570 $ 717,847 Total loans at September 30, 2020 and December 31, 2019 were net of deferred loan fees of $1.5 million and $233,000, respectively. The increase in net deferred loan fees was primarily the result of fees booked related to Paycheck Protection Program (“PPP”) loans booked during the period which are discussed further below. 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 (including commercial construction loans) consists of loans to commercial borrowers secured by commercial or residential real estate. 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 and includes PPP loans. 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 repayment of the commercial business loan is dependent upon the ongoing cash flow of the operating entity and the ability of a guarantor to support the company. 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. The following table provides additional information with respect to the Company’s commercial real estate and construction and commercial business loans by industry sector at September 30, 2020 (dollars in thousands): Type of Loan (1) Number of Loans Balance Real Estate Rental and Leasing 1,299 $ 294,846 Construction 159 26,758 Accommodation and Food Services 76 23,927 Other Services (except Public Administration) 142 15,613 Health Care and Social Assistance 118 15,180 Retail Trade 83 13,595 Manufacturing 48 11,747 Professional, Scientific, and Technical Services 142 10,697 Wholesale Trade 58 7,712 Finance and Insurance 41 7,191 Other 224 21,664 Total 2,390 $ 448,930 (1) Loan types are based on the North American Industry Classification System (NAICS). As of September 30, 2020, the real estate rental and leasing sector included the following industry categories: Detail of Real Estate Rental and Leasing Number of Loans Balance Lessors or Residential Buildings and Dwellings 941 $ 152,603 Lessors of Nonresidential Buildings 215 108,489 Other Activities Related to Real Estate 48 7,926 Lessors of Mini warehouses and Self-Storage Units 15 5,862 Other General Government Support 18 6,144 Lessors of Other Real Estate Property 13 5,486 Real Estate Property Managers 13 2,886 All Other Real Estate Rental and Leasing 36 5,450 Total 1,299 $ 294,846 The Company’s primary business activity is with customers located within its local market area. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in its immediate market area. At September 30, 2020, the Company’s largest commercial loan concentrations are to the lessors of residential properties and the lessors of nonresidential properties representing 34.0% and 24.2% of the commercial loan portfolio, respectively. The construction portfolio is very well diversified with no exposure in any NAICS above $6.7 million. Additionally, the Bank had approximately $15.5 million in hotel and motel loans and $7.6 million in restaurant loans at September 30, 2020. Included in the hotel and motel and restaurant loans were $153,000 and $2.9 million of PPP loans, respectively. The Coronavirus Aid Relief and Economic Security Act, (the “CARES Act”), was signed into law on March 27, 2020, and provided over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES act authorized the SBA to temporarily guarantee PPP loans under a new 7(a) loan program. As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. As of September 30, 2020, the Company had received approval from the SBA for 428 PPP loans totaling $42.4 million which generated $1.7 million in fees to be recognized over the life of the loans. The PPP loan program closed on August 8, 2020. The Company is currently working with customers to submit the required information to the SBA in order to receive the maximum amount of loan forgiveness. Eligible businesses were able to apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10.0 million. PPP loans have: (a) an interest rate of 1.0%, (b) a five-year loan term to maturity for loans made on or after June 5, 2020 (loans made prior to June 5, 2020 have a two-year term, however borrowers and lenders may mutually agree to extend the maturity for such loans to five years); and (c) principal and interest payments deferred for nine months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses. Management evaluates individual loans in all of the commercial segments for possible impairment if the relationship is greater than $200,000, and the loan is in nonaccrual status, risk-rated Substandard or Doubtful, 90 days or more past due or represents a troubled debt restructuring ("TDR"). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a TDR. Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Consistent with accounting and regulatory guidance, the Company recognizes a TDR when a borrower is experiencing financial difficulties and 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. The Company did not modify any loans as TDRs during the three or nine month periods ended September 30, 2020 or September 30, 2019. As of September 30, 2020, all TDRs were performing in accordance with their modified terms and are included in the impaired loan table below. 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 September 30, 2020 and December 31, 2019 (dollars in thousands): Impaired Loans Impaired Loans With Without Allowance Allowance Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance September 30, 2020: Commercial real estate and construction $ — $ — $ 3,071 $ 3,071 $ 3,071 Commercial business — — 618 618 618 Total impaired loans $ — $ — $ 3,689 $ 3,689 $ 3,689 December 31, 2019: Commercial real estate and construction $ — $ — $ 835 $ 835 $ 835 Commercial business — — 607 607 607 Total impaired loans $ — $ — $ 1,442 $ 1,442 $ 1,442 The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Average investment in impaired loans: Commercial real estate and construction $ 3,077 $ — $ 2,302 $ — Commercial business 614 — 610 — $ 3,691 $ — $ 2,912 $ — Interest income recognized on impaired loans $ 40 $ — $ 134 $ — The Company has elected to follow the loan modification guidance under Section 4013 of the CARES Act with regard to COVID-19 modifications made between March 1, 2020 and the earlier of either December 31, 2020 or the 60th day after the end of the COVID-19 national emergency. Under that guidance, any short-term loan modification that is done as a result of COVID-19 for a loan that was current prior to any relief, will not be categorized as a TDR. A modification of nine months or less is considered to be a short-term loan modification. The interagency guidance defines current as a loan that is less than 30 days past due on the contractual payments at the time of modification. The Company has developed loan payment deferral programs to provide assistance to both individuals and small business clients directly impacted by the COVID-19 pandemic. As of September 30, 2020, the Bank had existing payment deferrals for 60 commercial loans totaling $10.5 million and 19 consumer loans totaling $1.9 million as a result of COVID-19. All of these loans were initially provided a deferral period of 90 days and, if necessary, an additional deferral period was provided upon request. The following table provides additional information with respect to the loans modified under Section 4013 of the CARES Act in the Company’s loan portfolio at September 30, 2020 (dollars in thousands): Weighted Average Type of Loan Number of Loans Balance Interest Rate One-to-four family and residential and construction 12 $ 1,648 3.89 % Commercial real estate and construction 57 9,810 5.05 % Home equity loans and lines of credit 7 237 3.81 % Commercial business 3 682 3.61 % Total 79 $ 12,377 4.79 % 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 90 days or more 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 categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of September 30, 2020 and December 31, 2019 (dollars in thousands): Special Pass Mention Substandard Doubtful Total September 30, 2020: Real estate loans: One-to-four-family residential and construction $ 200,075 $ — $ 2,118 $ — $ 202,193 Commercial real estate and construction 357,679 1,142 2,777 — 361,598 Home equity loans and lines of credit 99,398 58 236 — 99,692 Commercial business loans 86,189 1,052 91 — 87,332 Other loans 518 — 3 — 521 Total $ 743,859 $ 2,252 $ 5,225 $ — $ 751,336 December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 232,354 $ — $ 2,067 $ — $ 234,421 Commercial real estate and construction 320,988 2,544 311 — 323,843 Home equity loans and lines of credit 111,165 62 272 — 111,499 Commercial business loans 46,636 818 60 — 47,514 Other loans 564 — 6 — 570 Total $ 711,707 $ 3,424 $ 2,716 $ — $ 717,847 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as all nonaccrual loans. At September 30, 2020, there were 31 loans on non-accrual status that were less than 90 days past due totaling $1.4 million. There were no loans on non-accrual status that were less than 90 days past due at December 31, 2019. The following table presents the segments of the loan portfolio summarized by the past due status of the loans still accruing and nonaccrual loans as of September 30, 2020 and December 31, 2019 (dollars in thousands): 30 ‑ 59 Days 60 ‑ 89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans September 30, 2020: Real estate loans: One-to-four-family residential and construction $ 200,022 $ 53 $ — $ 2,118 $ — $ 202,193 Commercial real estate and construction 360,252 42 — 1,304 — 361,598 Home equity loans and lines of credit 99,395 56 5 236 — 99,692 Commercial business loans 86,902 338 20 72 — 87,332 Other loans 516 2 — 3 — 521 Total $ 747,087 $ 491 $ 25 $ 3,733 $ — $ 751,336 December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 230,952 $ 1,021 $ 381 $ 2,067 $ — $ 234,421 Commercial real estate and construction 322,922 610 — 311 — 323,843 Home equity loans and lines of credit 110,634 591 2 272 — 111,499 Commercial business loans 47,420 34 — 60 — 47,514 Other loans 564 — — 6 — 570 Total $ 712,492 $ 2,256 $ 383 $ 2,716 $ — $ 717,847 An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The loan portfolio for the purposes of the ALL excludes all merger-related loans as well as PPP loans which are guaranteed by the SBA. 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. During the prior quarter, Management added a new qualitative factor to address several risks that could potentially impact customers credit worthiness as a result of the COVID-19 pandemic. Additionally, Management identified the hotel sector as an area where additional reserves were needed. Both the addition of the new qualitative factor and the identification of the hotel sector had a significant impact on the provision for the nine month period. 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 methodology to track and apply the various components of the allowance. During the three months ended September 30, 2020, there was (1) a decrease in the provision for the one-to-four family residential and construction loan class primarily due to decreases in the qualitative factors related to both the changes in loans balances and the COVID-19 pandemic; (2) an increase in the provision for the commercial real estate and construction loan class primarily due to an increase in the qualitative factor related to balance changes in loan concentrations as well as an increase in the loan balances included in the allowance calculation during the period; (3) an increase in the provision for the commercial business loan class primarily due to an increase in the qualitative factor related to balance changes in loan concentrations. During nine months ended September 30, 2020, there was (1) a decrease in the provision for both the one-to four family residential and construction and the home equity loans and lines of credit loan classes primarily due to decreases in the qualitive factors related to changes in loan balances, lending policies and the experience, depth and ability of management partially offset by increases in several qualitative factors as a result of the COVID-19 pandemic and charge-offs incurred during the nine month period; (2) an increase in the provision for the commercial real estate and construction loan class primarily due to the addition of a new qualitative factor for the COVID-19 pandemic, additional reserves required for the hotel sector and increases in the qualitative factors related to balance changes in loan concentrations, internal loan review and changes in loan balances partially offset by decreases in the qualitative factors related to changes in lending policies and the experience, depth and ability of management; and (3) an increase in the provision for the commercial business loan class due to the addition of a new qualitative factor due to the COVID-19 pandemic, increases in the qualitative factors related to balance changes in loan concentrations and internal loan review and charge-offs incurred during the nine month period offset by decreases in the qualitative factors related to changes in loan balances, lending policies and the experience, depth and ability of management. The following tables summarize the activity in the primary segments of the ALL for the three and nine months ended September 30, 2020 and September 30, 2019 as well as the allowance required for loans individually and collectively evaluated for impairment as of September 30, 2020 and December 31, 2019 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Three Months Ended : Balance June 30, 2020 $ 946 $ 5,313 $ 278 $ 427 $ 4 $ 6,968 Charge-offs — — — — — — Recoveries 2 7 — — — 9 Provision (351) 665 (5) 59 — 368 Balance September 30, 2020 $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Balance June 30, 2019 $ 851 $ 2,836 $ 295 $ 510 $ 2 $ 4,494 Charge-offs (1) — — — (8) (9) Recoveries — — 3 — 1 4 Provision (56) 330 3 (30) 7 254 Balance at September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Nine Months Ended : Balance December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Charge-offs (23) — (13) (51) (2) (89) Recoveries 5 8 — 1 — 14 Provision (106) 2,664 (24) 2 2 2,538 Balance September 30, 2020 $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Charge-offs (1) (121) (59) — (41) (222) Recoveries — — 6 — 1 7 Provision (256) 526 42 194 38 544 Balance at September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Evaluated for Impairment: Collectively $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Individually — — — — — — Balance at September 30, 2020 $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Evaluated for Impairment: Collectively $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Individually — — — — — — Balance at December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date. In addition, federal regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make changes to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to Management. Based on Management’s comprehensive analysis of the loan portfolio, they believe the current level of the allowance for loan losses is adequate. |
Foreclosed Assets Held For Sale
Foreclosed Assets Held For Sale | 9 Months Ended |
Sep. 30, 2020 | |
Foreclosed Assets Held For Sale | |
Foreclosed Assets Held For Sale | (10) 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 Statements of Financial Condition. As of September 30, 2020, and December 31, 2019, foreclosed real estate totaled $497,000 and $404,000, respectively. As of September 30, 2020, foreclosed assets consisted of four residential properties. The Company had initiated formal foreclosure procedures totaling $785,000 in one-to-four family residential loans, $934,000 in commercial real estate loans, and $53,000 in home equity loans as of September 30, 2020. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stock Based Compensation | |
Stock Based Compensation | (11) Stock Based Compensation The Company currently has two stock plans that allow for the issuance of stock based compensation, the Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) and the Standard Financial Corp. 2012 Equity Incentive Plan (the “2012 Plan”). On February 5, 2020, 3,058 shares of restricted stock were awarded to directors out of the 2011 Plan. The awards vest on December 31, 2020 and the related compensation expense is being recognized using the straight line method over the 11 month vesting period. On March 10, 2020, 3,295 shares of restricted stock were awarded to employees out of the 2011 Plan. The awards become 1/3 The following table summarizes transactions regarding restricted stock under the Plans: Weighted Average Number of Grant Date Restricted Price Per Shares Share Non-vested shares at December 31, 2019 1,944 $ 28.90 Granted 6,353 28.25 Vested (125) 31.10 Forfeited — — Non-vested shares at September 30, 2020 8,172 $ 28.36 For the three and nine months ended September 30, 2020, there was $40,000 and $108,000 of compensation expense recorded on restricted stock grants, respectively. For the three and nine months ended September 30, 2019, there was $23,000 and $58,000 of compensation expense recorded on restricted stock grants, respectively. As of September 30, 2020, there was $129,000 of unrecognized compensation expense that will be recognized over the remaining vesting periods. The following table summarizes transactions regarding the stock options under the Plans: Weighted Weighted Average Average Exercise Remaining Options Price Contractual Term Outstanding at December 31, 2019 247,781 $ 17.07 2.47 Granted — — Exercised (48,637) 16.91 Forfeited — — Outstanding at September 30, 2020 199,144 $ 17.11 1.85 Exercisable at September 30, 2020 199,144 $ 17.11 For both the three and nine months ended September 30, 2020 and September 30, 2019, there was no compensation expense related to stock options. As of September 30, 2020, all outstanding stock options were fully vested and there was no unrecognized compensation expense. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2020 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (12) Employee Stock Ownership Plan The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010. Eligible employees begin to participate in the plan after one year of service and become 20% vested in their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years of service and 100% after six years of service, or earlier, upon death, disability or attainment of normal retirement age. In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank. Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity of the Company. Shares are released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the Company to the ESOP and earnings thereon. Compensation expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding shares for purposes of computing earnings per share. Compensation expense related to the ESOP of $76,000 and $98,000 was recognized during the three months ended September 30, 2020 and 2019, respectively. Compensation expense related to the ESOP of $260,000 and $307,000 was recognized during the nine months ended September 30, 2020 and 2019, respectively. Dividends on unallocated shares are not treated as ordinary dividends but are instead used to repay the ESOP loan and recorded as compensation expense. As of September 30, 2020, the ESOP held a total of 249,404 shares of the Company’s stock. Of the 249,404 shares, there were 144,548 unallocated as of September 30, 2020 with a fair market value of $4.7 million. |
Pension Information
Pension Information | 9 Months Ended |
Sep. 30, 2020 | |
Pension Information | |
Pension Information | (13) Pension Information The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. Effective August 1, 2005, the annual benefit provided to employees under this defined benefit pension plan was frozen by the Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained. The net periodic pension (benefit) cost for the three and nine months ended September 30, 2020 and September 30, 2019 was as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest Cost $ 25 $ 31 $ 75 $ 93 Expected return on plan assets (32) (32) (96) (96) Amortization of net loss 3 2 8 6 Net periodic pension (benefit) cost $ (4) $ 1 $ (13) $ 3 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | (14) Fair Value of Assets and Liabilities Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis. Assets Measured at Fair Value on a Recurring Basis Investment, Mortgage-Backed and Equity Securities Fair values of investment and mortgage-backed securities were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 securities are comprised of equity securities. As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements. Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs. As of September 30, 2020 and December 31, 2019, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The following table presents the assets measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total September 30, 2020: Investment securities available for sale: U.S. government and agency obligations $ — $ 4,003 $ — $ 4,003 Corporate bonds — 5,239 — 5,239 Municipal obligations — 76,815 — 76,815 Total investment securities available for sale — 86,057 — 86,057 Equity securities 2,252 — — 2,252 Mortgage-backed securities available for sale — 88,568 — 88,568 Total recurring fair value measurements $ 2,252 $ 174,625 $ — $ 176,877 December 31, 2019: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,489 $ — $ 8,489 Corporate bonds — 2,579 — 2,579 Municipal obligations — 58,816 — 58,816 Total investment securities available for sale — 69,884 — 69,884 Equity securities 2,955 — — 2,955 Mortgage-backed securities available for sale — 91,478 — 91,478 Total recurring fair value measurements $ 2,955 $ 161,362 $ — $ 164,317 Assets Measured at Fair Value on a Nonrecurring Basis The following table presents the assets measured at fair value on a nonrecurring basis as of September 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total September 30, 2020: Foreclosed real estate $ — $ — $ 497 $ 497 Total nonrecurring fair value measurements $ — $ — $ 497 $ 497 December 31, 2019: Foreclosed real estate $ — $ — $ 404 $ 404 Total nonrecurring fair value measurements $ — $ — $ 404 $ 404 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements September 30, December 31, Valuation Unobservable 2020 2019 Techniques Input Range Foreclosed real estate $ 497 $ 404 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% Liquidation expenses (2) (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. The following table presents the carrying value, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments not required to be carried at fair value as of September 30, 2020 and December 31, 2019 (dollars in thousands): Carrying Estimated Value Fair Value Level 1 Level 2 Level 3 September 30, 2020: Financial Instruments - Assets: Loans receivable (1) $ 743,991 $ 750,666 $ — $ — $ 750,666 Financial Instruments - Liabilities: Demand and savings accounts (1) $ 580,378 $ 580,378 $ 580,378 $ — $ — Time deposits (1) 227,232 232,657 — — 232,657 Long-term borrowings (1) 96,078 99,243 — — 99,243 December 31, 2019: Financial Instruments - Assets: Loans receivable (1) $ 712,965 $ 721,197 $ — $ — $ 721,197 Financial Instruments - Liabilities: Demand and savings accounts (1) $ 489,339 $ 489,339 $ 489,339 $ — $ — Time deposits (1) 245,114 247,456 — — 247,456 Long-term borrowings (1) 99,098 100,032 — — 100,032 (1) The financial instrument is carried at amortized cost. The carrying amounts for cash and cash equivalents, certificates of deposit, FHLB and other restricted stock, BOLI, accrued interest receivable and payable and securities sold under agreements to repurchase approximate fair value and are considered Level 1. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | (15) 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 (loss) by component for the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Unrealized Gains Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2020 $ 2,738 $ (240) $ 2,498 Other comprehensive loss before reclassification (281) — (281) Amount reclassified from accumulated other comprehensive income (18) 2 (16) Total other comprehensive (loss) income (299) 2 (297) Balance as of September 30, 2020 $ 2,439 $ (238) $ 2,201 Balance as of December 31, 2019 $ 1,386 $ (244) $ 1,142 Other comprehensive income before reclassification 1,071 — 1,071 Amount reclassified from accumulated other comprehensive income (18) 6 (12) Total other comprehensive income 1,053 6 1,059 Balance as of September 30, 2020 $ 2,439 $ (238) $ 2,201 Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three Months Ended September 30, 2020: Unrealized gains on available for sale securities $ (23) Net gains on sales of securities 5 Income tax expense $ (18) Net of tax Amortization of defined benefit items: Actuarial loss $ 3 Other operating expenses (1) Income tax expense $ 2 Net of tax Total reclassification for the period $ (16) Net income Nine Months Ended September 30, 2020: Unrealized gains on available for sale securities $ (23) Net gains on sales of securities 5 Income tax expense $ (18) Net of tax Amortization of defined benefit items: Actuarial loss $ 8 Other operating expenses (2) Income tax expense $ 6 Net of tax Total reclassification for the period $ (12) Net income Unrealized Gains (Losses) Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2019 $ 1,496 $ (237) $ 1,259 Other comprehensive income before reclassification 256 — 256 Amount reclassified from accumulated other comprehensive income — 2 2 Total other comprehensive income 256 2 258 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Balance as of December 31, 2018 $ (1,103) $ (241) $ (1,344) Other comprehensive income before reclassification 2,854 — 2,854 Amount reclassified from accumulated other comprehensive income 1 6 7 Total other comprehensive income 2,855 6 2,861 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three Months Ended September 30, 2019: Amortization of defined benefit items: Actuarial loss $ 2 Other operating expenses — Income tax expense $ 2 Net of tax Total reclassification for the period $ 2 Net income Nine Months Ended September 30, 2019: Unrealized losses on available for sale securities $ 1 Net loss on sales of securities — Income tax expense $ 1 Net of tax Amortization of defined benefit items: Actuarial loss $ 7 Other operating expenses (1) Income tax expense $ 6 Net of tax Total reclassification for the period $ 7 Net income |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Revenue Recognition | (16) Revenue Recognition The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Noninterest income In scope of Topic 606: Service charges $ 752 $ 777 $ 2,214 $ 2,146 Investment management fees 156 172 505 541 Noninterest income (in-scope of Topic 606) 908 949 2,719 2,687 Noninterest income (out-of-scope of Topic 606) 1,076 538 1,135 1,032 Total noninterest income $ 1,984 $ 1,487 $ 3,854 $ 3,719 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Other Intangibles | |
Goodwill and Other Intangibles | (17) Goodwill and Other Intangibles The Company has recorded goodwill associated with mergers totaling $25.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during either of the three or nine months ended September 30, 2020 or September 30, 2019. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The balance of the core deposit intangible at September 30, 2020 was $1.5 million net of $2.6 million of accumulated amortization as of that date. As of September 30, 2020, the estimated future amortization expense for the core deposit intangible was (dollars in thousands): 2020 $ 108 2021 353 2022 326 2023 326 2024 325 2025 81 $ 1,519 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Principles of 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 | 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, 2019 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2020. The results for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any future interim period. Certain amounts in the 2019 financial statements have been reclassified to conform to the 2020 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Recent Accounting Pronouncements | Accounting Standards Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). 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 th Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Intangibles – Goodwill and Other In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20) In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, w Topic 326, Financial Instruments – Credit Losses Topic 815, Derivatives and Hedging Topic 825, Financial Instruments Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) of the effective dates of the ASUs on derivatives and hedging for companies that are not public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Intangibles ‒ Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill) In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses In March 2020, the FASB issued ASU 2020-3 , Codification Improvements to Financial Instruments. Financial Instruments amendments are effective upon issuance of this ASU. This Update is not expected to have a significant impact on the Company’s financial statements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings per Share | |
Schedule of computation of basic and diluted EPS | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income available to common stockholders $ 2,237 $ 2,464 $ 4,484 $ 6,731 Basic EPS: Weighted average shares outstanding 4,524,953 4,573,856 4,529,127 4,628,308 Basic EPS $ 0.49 $ 0.54 $ 0.99 $ 1.45 Diluted EPS: Weighted average shares outstanding 4,524,953 4,573,856 4,529,127 4,628,308 Dilutive effect of common stock equivalents 60,402 91,945 73,666 96,878 Total diluted weighted average shares outstanding 4,585,355 4,665,801 4,602,793 4,725,186 Diluted EPS $ 0.49 $ 0.53 $ 0.97 $ 1.42 |
Investment Securities (Tables)
Investment Securities (Tables) - Available-for-sale securities other than mortgage backed securities | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities | |
Schedule of investment securities available for sale | Investment securities available for sale at September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 1,000 $ 2 $ — $ 1,002 Beyond 5 year but within 10 years 3,000 2 (1) 3,001 Corporate bonds due: Within 1 year 998 8 — 1,006 Beyond 1 year but within 5 years 3,973 260 — 4,233 Municipal obligations due: Within 1 year 1,438 35 — 1,473 Beyond 1 year but within 5 years 4,096 155 — 4,251 Beyond 5 years but within 10 years 17,796 556 (1) 18,351 Beyond 10 years 52,003 825 (88) 52,740 $ 84,304 $ 1,843 $ (90) $ 86,057 December 31, 2019: U.S. government and agency obligations due: Within 1 year $ 5,986 $ 12 $ — $ 5,998 Beyond 1 year but within 5 years 1,470 29 — 1,499 Beyond 5 year but within 10 years 948 44 — 992 Corporate bonds due: Beyond 1 year but within 5 years 2,477 102 — 2,579 Municipal obligations due: Within 1 year 260 2 — 262 Beyond 1 year but within 5 years 5,085 244 — 5,329 Beyond 5 years but within 10 years 18,210 456 — 18,666 Beyond 10 years 33,951 648 (40) 34,559 $ 68,387 $ 1,537 $ (40) $ 69,884 |
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 | The following table presents the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020: U.S. government and agency obligations $ 998 $ (1) $ — $ — $ 998 $ (1) Municipal obligations 9,900 (86) 519 (3) 10,419 (89) Total $ 10,898 $ (87) $ 519 $ (3) $ 11,417 $ (90) December 31, 2019: Municipal obligations $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) Total $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) |
Equity Securities (Tables)
Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Securities | |
Schedule of gains and losses on equity investments | The following table presents the net gains and losses on equity investments recognized in earnings during the three and nine months ended September 30, 2020 and September 30, 2019, and the portion of unrealized gains and losses for those periods that relate to equity investments held (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net equity securities fair value adjustment gains (losses) $ 87 $ 120 $ (703) $ 155 Net gains realized on the sale of equity securities during the period — — — — Gains (losses) recognized on equity securities during the period $ 87 $ 120 $ (703) $ 155 |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities available for sale | 9 Months Ended |
Sep. 30, 2020 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Mortgage-backed securities available for sale at September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020: Government pass-throughs: Ginnie Mae $ 23,142 $ 452 $ (35) $ 23,559 Fannie Mae 19,979 572 (70) 20,481 Freddie Mac 13,128 409 — 13,537 Private pass-throughs 18,459 30 (229) 18,260 Collateralized mortgage obligations 12,524 238 (31) 12,731 $ 87,232 $ 1,701 $ (365) $ 88,568 December 31, 2019: Government pass-throughs: Ginnie Mae $ 21,386 $ 188 $ (70) $ 21,504 Fannie Mae 20,537 258 — 20,795 Freddie Mac 13,986 134 (34) 14,086 Private pass-throughs 21,904 — (301) 21,603 Collateralized mortgage obligations 13,406 110 (26) 13,490 $ 91,219 $ 690 $ (431) $ 91,478 |
Schedule of contractual maturity | Amortized Cost Fair Value Due after one year through five years $ 858 $ 854 Due after five years through ten years 4,819 4,858 Due after ten years 81,555 82,856 Total Mortgage-Backed Securities $ 87,232 $ 88,568 |
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 | The following table presents the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020: Government pass-throughs: Ginnie Mae $ 2,781 $ (20) $ 1,388 $ (15) $ 4,169 $ (35) Fannie Mae 5,553 (70) — — 5,553 (70) Private pass-throughs — — 16,539 (229) 16,539 (229) Collateralized mortgage obligations 4,067 (31) — — 4,067 (31) Total $ 12,401 $ (121) $ 17,927 $ (244) $ 30,328 $ (365) December 31, 2019: Government pass-throughs: Ginnie Mae $ 4,070 $ (27) $ 3,516 $ (43) $ 7,586 $ (70) Freddie Mac 5,537 (34) — — 5,537 (34) Private pass-throughs 2,060 (29) 19,197 (272) 21,257 (301) Collateralized mortgage obligations 562 (2) 3,526 (24) 4,088 (26) Total $ 12,229 $ (92) $ 26,239 $ (339) $ 38,468 $ (431) |
Loans Receivable and Related _2
Loans Receivable and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans Receivable and Related Allowance for Loan Losses | |
Schedule of loans receivable | The following table summarizes the primary segments of the loan portfolio by the amounts collectively evaluated for impairment and the amounts individually evaluated for impairment, and the related allowance for loan losses, as of September 30, 2020 and December 31, 2019 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total September 30, 2020: Collectively evaluated for impairment $ 202,193 $ 358,527 $ 99,692 $ 86,714 $ 521 $ 747,647 Individually evaluated for impairment — 3,071 — 618 — 3,689 Total loans before allowance for loan losses $ 202,193 $ 361,598 $ 99,692 $ 87,332 $ 521 $ 751,336 December 31, 2019: Collectively evaluated for impairment $ 234,421 $ 323,008 $ 111,499 $ 46,907 $ 570 $ 716,405 Individually evaluated for impairment — 835 — 607 — 1,442 Total loans before allowance for loan losses $ 234,421 $ 323,843 $ 111,499 $ 47,514 $ 570 $ 717,847 |
Schedule of additional information with respect to loans receivable | The following table provides additional information with respect to the Company’s commercial real estate and construction and commercial business loans by industry sector at September 30, 2020 (dollars in thousands): Type of Loan (1) Number of Loans Balance Real Estate Rental and Leasing 1,299 $ 294,846 Construction 159 26,758 Accommodation and Food Services 76 23,927 Other Services (except Public Administration) 142 15,613 Health Care and Social Assistance 118 15,180 Retail Trade 83 13,595 Manufacturing 48 11,747 Professional, Scientific, and Technical Services 142 10,697 Wholesale Trade 58 7,712 Finance and Insurance 41 7,191 Other 224 21,664 Total 2,390 $ 448,930 (1) Loan types are based on the North American Industry Classification System (NAICS). |
Schedule of real estate rental and leasing sector | Detail of Real Estate Rental and Leasing Number of Loans Balance Lessors or Residential Buildings and Dwellings 941 $ 152,603 Lessors of Nonresidential Buildings 215 108,489 Other Activities Related to Real Estate 48 7,926 Lessors of Mini warehouses and Self-Storage Units 15 5,862 Other General Government Support 18 6,144 Lessors of Other Real Estate Property 13 5,486 Real Estate Property Managers 13 2,886 All Other Real Estate Rental and Leasing 36 5,450 Total 1,299 $ 294,846 |
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 | 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 September 30, 2020 and December 31, 2019 (dollars in thousands): Impaired Loans Impaired Loans With Without Allowance Allowance Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance September 30, 2020: Commercial real estate and construction $ — $ — $ 3,071 $ 3,071 $ 3,071 Commercial business — — 618 618 618 Total impaired loans $ — $ — $ 3,689 $ 3,689 $ 3,689 December 31, 2019: Commercial real estate and construction $ — $ — $ 835 $ 835 $ 835 Commercial business — — 607 607 607 Total impaired loans $ — $ — $ 1,442 $ 1,442 $ 1,442 |
Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated | The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Average investment in impaired loans: Commercial real estate and construction $ 3,077 $ — $ 2,302 $ — Commercial business 614 — 610 — $ 3,691 $ — $ 2,912 $ — Interest income recognized on impaired loans $ 40 $ — $ 134 $ — |
Schedule of modified financing receivables | The following table provides additional information with respect to the loans modified under Section 4013 of the CARES Act in the Company’s loan portfolio at September 30, 2020 (dollars in thousands): Weighted Average Type of Loan Number of Loans Balance Interest Rate One-to-four family and residential and construction 12 $ 1,648 3.89 % Commercial real estate and construction 57 9,810 5.05 % Home equity loans and lines of credit 7 237 3.81 % Commercial business 3 682 3.61 % Total 79 $ 12,377 4.79 % |
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 | The following table presents the classes of the loan portfolio summarized by the aggregate Pass rating and the criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of September 30, 2020 and December 31, 2019 (dollars in thousands): Special Pass Mention Substandard Doubtful Total September 30, 2020: Real estate loans: One-to-four-family residential and construction $ 200,075 $ — $ 2,118 $ — $ 202,193 Commercial real estate and construction 357,679 1,142 2,777 — 361,598 Home equity loans and lines of credit 99,398 58 236 — 99,692 Commercial business loans 86,189 1,052 91 — 87,332 Other loans 518 — 3 — 521 Total $ 743,859 $ 2,252 $ 5,225 $ — $ 751,336 December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 232,354 $ — $ 2,067 $ — $ 234,421 Commercial real estate and construction 320,988 2,544 311 — 323,843 Home equity loans and lines of credit 111,165 62 272 — 111,499 Commercial business loans 46,636 818 60 — 47,514 Other loans 564 — 6 — 570 Total $ 711,707 $ 3,424 $ 2,716 $ — $ 717,847 |
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | 30 ‑ 59 Days 60 ‑ 89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans September 30, 2020: Real estate loans: One-to-four-family residential and construction $ 200,022 $ 53 $ — $ 2,118 $ — $ 202,193 Commercial real estate and construction 360,252 42 — 1,304 — 361,598 Home equity loans and lines of credit 99,395 56 5 236 — 99,692 Commercial business loans 86,902 338 20 72 — 87,332 Other loans 516 2 — 3 — 521 Total $ 747,087 $ 491 $ 25 $ 3,733 $ — $ 751,336 December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 230,952 $ 1,021 $ 381 $ 2,067 $ — $ 234,421 Commercial real estate and construction 322,922 610 — 311 — 323,843 Home equity loans and lines of credit 110,634 591 2 272 — 111,499 Commercial business loans 47,420 34 — 60 — 47,514 Other loans 564 — — 6 — 570 Total $ 712,492 $ 2,256 $ 383 $ 2,716 $ — $ 717,847 |
Schedule of activity in the allowance | The following tables summarize the activity in the primary segments of the ALL for the three and nine months ended September 30, 2020 and September 30, 2019 as well as the allowance required for loans individually and collectively evaluated for impairment as of September 30, 2020 and December 31, 2019 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Three Months Ended : Balance June 30, 2020 $ 946 $ 5,313 $ 278 $ 427 $ 4 $ 6,968 Charge-offs — — — — — — Recoveries 2 7 — — — 9 Provision (351) 665 (5) 59 — 368 Balance September 30, 2020 $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Balance June 30, 2019 $ 851 $ 2,836 $ 295 $ 510 $ 2 $ 4,494 Charge-offs (1) — — — (8) (9) Recoveries — — 3 — 1 4 Provision (56) 330 3 (30) 7 254 Balance at September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Nine Months Ended : Balance December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Charge-offs (23) — (13) (51) (2) (89) Recoveries 5 8 — 1 — 14 Provision (106) 2,664 (24) 2 2 2,538 Balance September 30, 2020 $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Charge-offs (1) (121) (59) — (41) (222) Recoveries — — 6 — 1 7 Provision (256) 526 42 194 38 544 Balance at September 30, 2019 $ 794 $ 3,166 $ 301 $ 480 $ 2 $ 4,743 Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Evaluated for Impairment: Collectively $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Individually — — — — — — Balance at September 30, 2020 $ 597 $ 5,985 $ 273 $ 486 $ 4 $ 7,345 Evaluated for Impairment: Collectively $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Individually — — — — — — Balance at December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock Based Compensation | |
Schedule of transactions regarding the options under the plan | Weighted Weighted Average Average Exercise Remaining Options Price Contractual Term Outstanding at December 31, 2019 247,781 $ 17.07 2.47 Granted — — Exercised (48,637) 16.91 Forfeited — — Outstanding at September 30, 2020 199,144 $ 17.11 1.85 Exercisable at September 30, 2020 199,144 $ 17.11 |
Schedule of transactions regarding restricted stock under the Plan | Weighted Average Number of Grant Date Restricted Price Per Shares Share Non-vested shares at December 31, 2019 1,944 $ 28.90 Granted 6,353 28.25 Vested (125) 31.10 Forfeited — — Non-vested shares at September 30, 2020 8,172 $ 28.36 |
Pension Information (Tables)
Pension Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Pension Information | |
Schedule of net periodic pension (benefit) cost | The net periodic pension (benefit) cost for the three and nine months ended September 30, 2020 and September 30, 2019 was as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest Cost $ 25 $ 31 $ 75 $ 93 Expected return on plan assets (32) (32) (96) (96) Amortization of net loss 3 2 8 6 Net periodic pension (benefit) cost $ (4) $ 1 $ (13) $ 3 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Assets and Liabilities | |
Schedule of assets measured at fair value on a recurring basis | The following table presents the assets measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total September 30, 2020: Investment securities available for sale: U.S. government and agency obligations $ — $ 4,003 $ — $ 4,003 Corporate bonds — 5,239 — 5,239 Municipal obligations — 76,815 — 76,815 Total investment securities available for sale — 86,057 — 86,057 Equity securities 2,252 — — 2,252 Mortgage-backed securities available for sale — 88,568 — 88,568 Total recurring fair value measurements $ 2,252 $ 174,625 $ — $ 176,877 December 31, 2019: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,489 $ — $ 8,489 Corporate bonds — 2,579 — 2,579 Municipal obligations — 58,816 — 58,816 Total investment securities available for sale — 69,884 — 69,884 Equity securities 2,955 — — 2,955 Mortgage-backed securities available for sale — 91,478 — 91,478 Total recurring fair value measurements $ 2,955 $ 161,362 $ — $ 164,317 |
Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy | The following table presents the assets measured at fair value on a nonrecurring basis as of September 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total September 30, 2020: Foreclosed real estate $ — $ — $ 497 $ 497 Total nonrecurring fair value measurements $ — $ — $ 497 $ 497 December 31, 2019: Foreclosed real estate $ — $ — $ 404 $ 404 Total nonrecurring fair value measurements $ — $ — $ 404 $ 404 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements September 30, December 31, Valuation Unobservable 2020 2019 Techniques Input Range Foreclosed real estate $ 497 $ 404 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% Liquidation expenses (2) (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. |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments | The following table presents the carrying value, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments not required to be carried at fair value as of September 30, 2020 and December 31, 2019 (dollars in thousands): Carrying Estimated Value Fair Value Level 1 Level 2 Level 3 September 30, 2020: Financial Instruments - Assets: Loans receivable (1) $ 743,991 $ 750,666 $ — $ — $ 750,666 Financial Instruments - Liabilities: Demand and savings accounts (1) $ 580,378 $ 580,378 $ 580,378 $ — $ — Time deposits (1) 227,232 232,657 — — 232,657 Long-term borrowings (1) 96,078 99,243 — — 99,243 December 31, 2019: Financial Instruments - Assets: Loans receivable (1) $ 712,965 $ 721,197 $ — $ — $ 721,197 Financial Instruments - Liabilities: Demand and savings accounts (1) $ 489,339 $ 489,339 $ 489,339 $ — $ — Time deposits (1) 245,114 247,456 — — 247,456 Long-term borrowings (1) 99,098 100,032 — — 100,032 (1) The financial instrument is carried at amortized cost. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2020 $ 2,738 $ (240) $ 2,498 Other comprehensive loss before reclassification (281) — (281) Amount reclassified from accumulated other comprehensive income (18) 2 (16) Total other comprehensive (loss) income (299) 2 (297) Balance as of September 30, 2020 $ 2,439 $ (238) $ 2,201 Balance as of December 31, 2019 $ 1,386 $ (244) $ 1,142 Other comprehensive income before reclassification 1,071 — 1,071 Amount reclassified from accumulated other comprehensive income (18) 6 (12) Total other comprehensive income 1,053 6 1,059 Balance as of September 30, 2020 $ 2,439 $ (238) $ 2,201 Unrealized Gains (Losses) Unrecognized on Available for Sale Pension Securities Costs Total Balance as of June 30, 2019 $ 1,496 $ (237) $ 1,259 Other comprehensive income before reclassification 256 — 256 Amount reclassified from accumulated other comprehensive income — 2 2 Total other comprehensive income 256 2 258 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 Balance as of December 31, 2018 $ (1,103) $ (241) $ (1,344) Other comprehensive income before reclassification 2,854 — 2,854 Amount reclassified from accumulated other comprehensive income 1 6 7 Total other comprehensive income 2,855 6 2,861 Balance as of September 30, 2019 $ 1,752 $ (235) $ 1,517 |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three Months Ended September 30, 2020: Unrealized gains on available for sale securities $ (23) Net gains on sales of securities 5 Income tax expense $ (18) Net of tax Amortization of defined benefit items: Actuarial loss $ 3 Other operating expenses (1) Income tax expense $ 2 Net of tax Total reclassification for the period $ (16) Net income Nine Months Ended September 30, 2020: Unrealized gains on available for sale securities $ (23) Net gains on sales of securities 5 Income tax expense $ (18) Net of tax Amortization of defined benefit items: Actuarial loss $ 8 Other operating expenses (2) Income tax expense $ 6 Net of tax Total reclassification for the period $ (12) Net income Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income (Loss) Statements of Income Three Months Ended September 30, 2019: Amortization of defined benefit items: Actuarial loss $ 2 Other operating expenses — Income tax expense $ 2 Net of tax Total reclassification for the period $ 2 Net income Nine Months Ended September 30, 2019: Unrealized losses on available for sale securities $ 1 Net loss on sales of securities — Income tax expense $ 1 Net of tax Amortization of defined benefit items: Actuarial loss $ 7 Other operating expenses (1) Income tax expense $ 6 Net of tax Total reclassification for the period $ 7 Net income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Schedule of noninterest income, segregated by revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Noninterest income In scope of Topic 606: Service charges $ 752 $ 777 $ 2,214 $ 2,146 Investment management fees 156 172 505 541 Noninterest income (in-scope of Topic 606) 908 949 2,719 2,687 Noninterest income (out-of-scope of Topic 606) 1,076 538 1,135 1,032 Total noninterest income $ 1,984 $ 1,487 $ 3,854 $ 3,719 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Other Intangibles | |
Schedule of estimated future amortization expense | As of September 30, 2020, the estimated future amortization expense for the core deposit intangible was (dollars in thousands): 2020 $ 108 2021 353 2022 326 2023 326 2024 325 2025 81 $ 1,519 |
Proposed Merger with Dollar (De
Proposed Merger with Dollar (Details) - USD ($) | Sep. 25, 2020 | Sep. 30, 2020 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||
Merger expenses | $ 553,000 | $ 553,000 | |
Dollar Mutual Bancorp | |||
Business Acquisition [Line Items] | |||
Total consideration | $ 158,000,000 | ||
Consideration per share | $ 33 | ||
Merger expenses | 553,000 | ||
Merger expenses per share | $ 544,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings per Share | ||||
Net income available to common stockholders | $ 2,237 | $ 2,464 | $ 4,484 | $ 6,731 |
Basic EPS: | ||||
Weighted average shares outstanding | 4,524,953 | 4,573,856 | 4,529,127 | 4,628,308 |
Basic EPS | $ 0.49 | $ 0.54 | $ 0.99 | $ 1.45 |
Diluted EPS: | ||||
Weighted average shares outstanding | 4,524,953 | 4,573,856 | 4,529,127 | 4,628,308 |
Dilutive effect of common stock equivalents | 60,402 | 91,945 | 73,666 | 96,878 |
Total diluted weighted average shares outstanding | 4,585,355 | 4,665,801 | 4,602,793 | 4,725,186 |
Diluted EPS (in dollars per share) | $ 0.49 | $ 0.53 | $ 0.97 | $ 1.42 |
Earnings per Share - Additional
Earnings per Share - Additional information (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Anti-dilutive options | 605 | 252 | 0 | |
Unearned ESOP Shares | ||||
Number of options to purchase common stock outstanding | 199,144 | 199,144 | 255,030 | 247,781 |
Average exercise price of options outstanding | $ 17.11 | $ 17.11 | $ 17.09 | $ 17.07 |
Restricted stock | ||||
Number of unvested restricted stock | 8,172 | 8,172 | 3,307 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Amortized Cost | $ 84,304 | $ 68,387 |
Gross Unrealized Gains | ||
Gross Unrealized Gains | 1,843 | 1,537 |
Gross Unrealized Losses | ||
Gross Unrealized Losses | (90) | (40) |
Fair Value | ||
Fair Value | 86,057 | 69,884 |
U.S. government and agency obligations | ||
Amortized Cost | ||
Within 1 year | 5,986 | |
Beyond 1 year but within 5 years | 1,000 | 1,470 |
Beyond 5 years but within 10 years | 3,000 | 948 |
Gross Unrealized Gains | ||
Within 1 year | 12 | |
Beyond 1 year but within 5 years | 2 | 29 |
Beyond 5 years but within 10 years | 2 | 44 |
Gross Unrealized Losses | ||
Beyond 5 years but within 10 years | (1) | |
Fair Value | ||
Within 1 year | 5,998 | |
Beyond 1 year but within 5 years | 1,002 | 1,499 |
Beyond 5 years but within 10 years | 3,001 | 992 |
Corporate bonds | ||
Amortized Cost | ||
Within 1 year | 998 | |
Beyond 1 year but within 5 years | 3,973 | 2,477 |
Gross Unrealized Gains | ||
Within 1 year | 8 | |
Beyond 1 year but within 5 years | 260 | 102 |
Fair Value | ||
Within 1 year | 1,006 | |
Beyond 1 year but within 5 years | 4,233 | 2,579 |
Municipal obligations | ||
Amortized Cost | ||
Within 1 year | 1,438 | 260 |
Beyond 1 year but within 5 years | 4,096 | 5,085 |
Beyond 5 years but within 10 years | 17,796 | 18,210 |
Beyond 10 years | 52,003 | 33,951 |
Gross Unrealized Gains | ||
Within 1 year | 35 | 2 |
Beyond 1 year but within 5 years | 155 | 244 |
Beyond 5 years but within 10 years | 556 | 456 |
Beyond 10 years | 825 | 648 |
Gross Unrealized Losses | ||
Beyond 5 years but within 10 years | (1) | |
Beyond 10 years | (88) | (40) |
Fair Value | ||
Within 1 year | 1,473 | 262 |
Beyond 1 year but within 5 years | 4,251 | 5,329 |
Beyond 5 years but within 10 years | 18,351 | 18,666 |
Beyond 10 years | $ 52,740 | $ 34,559 |
Investment Securities - Fair va
Investment Securities - Fair value and gross unrealized losses on available for sale debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale securities other than mortgage backed securities | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 10,898 | $ 4,496 |
Less than 12 Months, Gross Unrealized Losses | (87) | (40) |
12 Months or More, Fair Value | 519 | |
12 Months or More, Gross Unrealized Losses | (3) | |
Total, Fair Value | 11,417 | 4,496 |
Total, Gross Unrealized Losses | (90) | (40) |
U.S. government and agency obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 998 | |
Less than 12 Months, Gross Unrealized Losses | (1) | |
Total, Fair Value | 998 | |
Total, Gross Unrealized Losses | (1) | |
Municipal obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 9,900 | 4,496 |
Less than 12 Months, Gross Unrealized Losses | (86) | (40) |
12 Months or More, Fair Value | 519 | |
12 Months or More, Gross Unrealized Losses | (3) | |
Total, Fair Value | 10,419 | 4,496 |
Total, Gross Unrealized Losses | $ (89) | $ (40) |
Investment Securities - Additio
Investment Securities - Additional information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Losses on sales of investment securities | $ 7,000 | ||||
Gains on sales of investment securities | $ 53,000 | $ 0 | $ 53,000 | 7,000 | |
Proceeds from sales of investment securities | 874,000 | 874,000 | $ 6,328,000 | ||
Available-for-sale securities other than mortgage backed securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment securities pledged to secure repurchase agreements and public funds accounts | $ 11,400,000 | $ 11,400,000 | $ 11,700,000 | ||
Number of securities held in an unrealized loss position | security | 19 | 19 |
Equity Securities (Details)
Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity Securities | ||||
Net equity securities fair value adjustment gains (losses) | $ 87 | $ 120 | $ (703) | $ 155 |
Gains (losses) recognized on equity securities during the period | 87 | 120 | (703) | 155 |
Sales of equity securities | $ 0 | $ 0 | $ 0 | $ 0 |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Mortgage-backed securities | ||
Amortized Cost | $ 84,304 | $ 68,387 |
Gross Unrealized Gains | 1,843 | 1,537 |
Gross Unrealized Losses | (90) | (40) |
Investment securities available for sale, at fair value | 86,057 | 69,884 |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Amortized Cost | 87,232 | 91,219 |
Gross Unrealized Gains | 1,701 | 690 |
Gross Unrealized Losses | (365) | (431) |
Investment securities available for sale, at fair value | 88,568 | 91,478 |
Government pass-throughs, Ginnie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 23,142 | 21,386 |
Gross Unrealized Gains | 452 | 188 |
Gross Unrealized Losses | (35) | (70) |
Investment securities available for sale, at fair value | 23,559 | 21,504 |
Government pass-throughs, Fannie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 19,979 | 20,537 |
Gross Unrealized Gains | 572 | 258 |
Gross Unrealized Losses | (70) | |
Investment securities available for sale, at fair value | 20,481 | 20,795 |
Government pass-throughs, Freddie Mac | ||
Mortgage-backed securities | ||
Amortized Cost | 13,128 | 13,986 |
Gross Unrealized Gains | 409 | 134 |
Gross Unrealized Losses | (34) | |
Investment securities available for sale, at fair value | 13,537 | 14,086 |
Private pass-throughs | ||
Mortgage-backed securities | ||
Amortized Cost | 18,459 | 21,904 |
Gross Unrealized Gains | 30 | |
Gross Unrealized Losses | (229) | (301) |
Investment securities available for sale, at fair value | 18,260 | 21,603 |
Collateralized mortgage obligations | ||
Mortgage-backed securities | ||
Amortized Cost | 12,524 | 13,406 |
Gross Unrealized Gains | 238 | 110 |
Gross Unrealized Losses | (31) | (26) |
Investment securities available for sale, at fair value | $ 12,731 | $ 13,490 |
Mortgage-Backed Securities - Co
Mortgage-Backed Securities - Contractual maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized cost by contractual maturity: | ||
Amortized Cost | $ 84,304 | $ 68,387 |
Fair value by contractual maturity: | ||
Fair Value | 86,057 | 69,884 |
Mortgage-backed securities available for sale | ||
Amortized cost by contractual maturity: | ||
Due after one year through five years | 858 | |
Due after five years through ten years | 4,819 | |
Due after ten years | 81,555 | |
Amortized Cost | 87,232 | 91,219 |
Fair value by contractual maturity: | ||
Due after one year through five years | 854 | |
Due after five years through ten years | 4,858 | |
Due after ten years | 82,856 | |
Fair Value | $ 88,568 | $ 91,478 |
Mortgage-Backed Securities - Fa
Mortgage-Backed Securities - Fair value and gross unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Mortgage-backed securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 12,401 | $ 12,229 |
Less than 12 Months, Gross Unrealized Losses | (121) | (92) |
12 Months or More, Fair Value | 17,927 | 26,239 |
12 Months or More, Gross Unrealized Losses | (244) | (339) |
Total, Fair Value | 30,328 | 38,468 |
Total, Gross Unrealized Losses | (365) | (431) |
Government pass-throughs, Ginnie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 2,781 | 4,070 |
Less than 12 Months, Gross Unrealized Losses | (20) | (27) |
12 Months or More, Fair Value | 1,388 | 3,516 |
12 Months or More, Gross Unrealized Losses | (15) | (43) |
Total, Fair Value | 4,169 | 7,586 |
Total, Gross Unrealized Losses | (35) | (70) |
Government pass-throughs, Fannie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 5,553 | |
Less than 12 Months, Gross Unrealized Losses | (70) | |
Total, Fair Value | 5,553 | |
Total, Gross Unrealized Losses | (70) | |
Government pass-throughs, Freddie Mac | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 5,537 | |
Less than 12 Months, Gross Unrealized Losses | (34) | |
Total, Fair Value | 5,537 | |
Total, Gross Unrealized Losses | (34) | |
Private pass-throughs | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 2,060 | |
Less than 12 Months, Gross Unrealized Losses | (29) | |
12 Months or More, Fair Value | 16,539 | 19,197 |
12 Months or More, Gross Unrealized Losses | (229) | (272) |
Total, Fair Value | 16,539 | 21,257 |
Total, Gross Unrealized Losses | (229) | (301) |
Collateralized mortgage obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 4,067 | 562 |
Less than 12 Months, Gross Unrealized Losses | (31) | (2) |
12 Months or More, Fair Value | 3,526 | |
12 Months or More, Gross Unrealized Losses | (24) | |
Total, Fair Value | 4,067 | 4,088 |
Total, Gross Unrealized Losses | $ (31) | $ (26) |
Mortgage-Backed Securities - Ad
Mortgage-Backed Securities - Additional information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Mortgage-backed securities | |||||
Loss on sales of mortgage-backed securities | $ 30,000 | $ 0 | $ 30,000 | $ 1,000 | |
Total proceeds from sales | $ 3,500,000 | $ 3,508,000 | $ 1,286,000 | ||
Mortgage-backed securities available for sale | |||||
Mortgage-backed securities | |||||
Number of securities held in an unrealized loss position | security | 27 | 27 | |||
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 14,600,000 | $ 14,600,000 | $ 15,100,000 |
Loans Receivable and Related _3
Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 747,647 | $ 716,405 |
Individually evaluated for impairment | 3,689 | 1,442 |
Total loans before allowance for loan losses | 751,336 | 717,847 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 202,193 | 234,421 |
Total loans before allowance for loan losses | 202,193 | 234,421 |
Real Estate Loans | Commercial Real Estate and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 358,527 | 323,008 |
Individually evaluated for impairment | 3,071 | 835 |
Total loans before allowance for loan losses | 361,598 | 323,843 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 99,692 | 111,499 |
Total loans before allowance for loan losses | 99,692 | 111,499 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 86,714 | 46,907 |
Individually evaluated for impairment | 618 | 607 |
Total loans before allowance for loan losses | 87,332 | 47,514 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 521 | 570 |
Total loans before allowance for loan losses | $ 521 | $ 570 |
Loans Receivable and Related _4
Loans Receivable and Related Allowance for Loan Losses - Types of Loans by Industry Sector (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)loan | |
Commercial and Industrial Sector [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 2,390 |
Balance | $ | $ 448,930 |
Real Estate Rental and Leasing | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 1,299 |
Balance | $ | $ 294,846 |
Construction | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 159 |
Balance | $ | $ 26,758 |
Accommodation and Food Services | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 76 |
Balance | $ | $ 23,927 |
Other Services (except Public Administration) | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 142 |
Balance | $ | $ 15,613 |
Health Care and Social Assistance | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 118 |
Balance | $ | $ 15,180 |
Retail Trade | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 83 |
Balance | $ | $ 13,595 |
Manufacturing | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 48 |
Balance | $ | $ 11,747 |
Professional, Scientific, and Technical Services | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 142 |
Balance | $ | $ 10,697 |
Wholesale Trade | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 58 |
Balance | $ | $ 7,712 |
Finance and Insurance | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 41 |
Balance | $ | $ 7,191 |
Other | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 224 |
Balance | $ | $ 21,664 |
Loans Receivable and Related _5
Loans Receivable and Related Allowance for Loan Losses - Real estate rental and leasing sector (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)loan | |
Real Estate Rental and Leasing | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 1,299 |
Balance | $ | $ 294,846 |
Lessors or Residential Buildings and Dwellings | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 941 |
Balance | $ | $ 152,603 |
Lessors of Nonresidential Buildings | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 215 |
Balance | $ | $ 108,489 |
Other Activities Related to Real Estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 48 |
Balance | $ | $ 7,926 |
Lessors of Mini warehouses and Self-Storage Units | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 15 |
Balance | $ | $ 5,862 |
Other General Government Support | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 18 |
Balance | $ | $ 6,144 |
Lessors of Other Real Estate Property | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 13 |
Balance | $ | $ 5,486 |
Real Estate Property Managers | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 13 |
Balance | $ | $ 2,886 |
All Other Real Estate Rental and Leasing | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans | loan | 36 |
Balance | $ | $ 5,450 |
Loans Receivable and Related _6
Loans Receivable and Related Allowance for Loan Losses - Schedule of impaired loans by class and Specific allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Impaired Loans | |||
Impaired loans without allowance Recorded Investment | $ 3,689 | $ 3,689 | $ 1,442 |
Total Impaired Loans, Recorded Investment | 3,689 | 3,689 | 1,442 |
Total Impaired Loans, Unpaid Principal Balance | 3,689 | 3,689 | 1,442 |
Average investment in impaired loans | 3,691 | 2,912 | |
Interest income recognized on impaired loans | 40 | 134 | |
Commercial Real Estate and Construction | |||
Impaired Loans | |||
Impaired loans without allowance Recorded Investment | 3,071 | 3,071 | 835 |
Total Impaired Loans, Recorded Investment | 3,071 | 3,071 | 835 |
Total Impaired Loans, Unpaid Principal Balance | 3,071 | 3,071 | 835 |
Average investment in impaired loans | 3,077 | 2,302 | |
Commercial Business | |||
Impaired Loans | |||
Impaired loans without allowance Recorded Investment | 618 | 618 | 607 |
Total Impaired Loans, Recorded Investment | 618 | 618 | 607 |
Total Impaired Loans, Unpaid Principal Balance | 618 | 618 | $ 607 |
Average investment in impaired loans | $ 614 | $ 610 |
Loans Receivable and Related _7
Loans Receivable and Related Allowance for Loan Losses - Schedule of modified financing receivables (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 79 |
Balance | $ | $ 12,377 |
Weighted Average Interest Rate | 4.79% |
One-to-four-family Residential and Construction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 12 |
Balance | $ | $ 1,648 |
Weighted Average Interest Rate | 3.89% |
Home Equity Loans and Lines of Credit | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 7 |
Balance | $ | $ 237 |
Weighted Average Interest Rate | 3.81% |
Commercial Loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 60 |
Balance | $ | $ 10,500 |
Commercial Loan | Commercial Real Estate and Construction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 57 |
Balance | $ | $ 9,810 |
Weighted Average Interest Rate | 5.05% |
Commercial Loan | Commercial Business | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 3 |
Balance | $ | $ 682 |
Weighted Average Interest Rate | 3.61% |
Consumer Loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans modified | loan | 19 |
Balance | $ | $ 1,900 |
Loans Receivable and Related _8
Loans Receivable and Related Allowance for Loan Losses - Aggregate Pass rating (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 751,336 | $ 717,847 |
Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 743,859 | 711,707 |
Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,252 | 3,424 |
Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 5,225 | 2,716 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 202,193 | 234,421 |
Real Estate Loans | One-to-four-family Residential and Construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 200,075 | 232,354 |
Real Estate Loans | One-to-four-family Residential and Construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,118 | 2,067 |
Real Estate Loans | Commercial Real Estate and Construction | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 361,598 | 323,843 |
Real Estate Loans | Commercial Real Estate and Construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 357,679 | 320,988 |
Real Estate Loans | Commercial Real Estate and Construction | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,142 | 2,544 |
Real Estate Loans | Commercial Real Estate and Construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,777 | 311 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 99,692 | 111,499 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 99,398 | 111,165 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 58 | 62 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 236 | 272 |
Commercial Business | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 87,332 | 47,514 |
Commercial Business | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 86,189 | 46,636 |
Commercial Business | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,052 | 818 |
Commercial Business | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 91 | 60 |
Other Loans | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 521 | 570 |
Other Loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 518 | 564 |
Other Loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 3 | $ 6 |
Loans Receivable and Related _9
Loans Receivable and Related Allowance for Loan Losses - Loans accruing and nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 747,087 | $ 712,492 |
Non-Accrual | 3,733 | 2,716 |
Total loans before allowance for loan losses | 751,336 | 717,847 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 491 | 2,256 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 25 | 383 |
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 | 200,022 | 230,952 |
Non-Accrual | 2,118 | 2,067 |
Total loans before allowance for loan losses | 202,193 | 234,421 |
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 | 53 | 1,021 |
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 | 381 | |
Real Estate Loans | Commercial Real Estate and Construction | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 360,252 | 322,922 |
Non-Accrual | 1,304 | 311 |
Total loans before allowance for loan losses | 361,598 | 323,843 |
Real Estate Loans | Commercial Real Estate 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 | 42 | 610 |
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 | 99,395 | 110,634 |
Non-Accrual | 236 | 272 |
Total loans before allowance for loan losses | 99,692 | 111,499 |
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 | 56 | 591 |
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 | 5 | 2 |
Commercial Business | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 86,902 | 47,420 |
Non-Accrual | 72 | 60 |
Total loans before allowance for loan losses | 87,332 | 47,514 |
Commercial Business | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 338 | 34 |
Commercial Business | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 20 | |
Other Loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 516 | 564 |
Non-Accrual | 3 | 6 |
Total loans before allowance for loan losses | 521 | $ 570 |
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 | $ 2 |
Loans Receivable and Related_10
Loans Receivable and Related Allowance for Loan Losses - Allowance required for loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for loan losses | ||||||
Balance at the beginning of the period | $ 6,968 | $ 4,494 | $ 4,882 | $ 4,414 | ||
Charge-offs | (9) | (89) | (222) | |||
Recoveries | 9 | 4 | 14 | 7 | ||
Provision | 368 | 254 | 2,538 | 544 | ||
Balance at the end of the period | 7,345 | 4,743 | 7,345 | 4,743 | ||
Evaluated for Impairment: | ||||||
Collectively | $ 7,345 | $ 4,882 | ||||
Balance at the end of the period | 6,968 | 4,743 | 4,882 | 4,414 | 7,345 | 4,882 |
Real Estate Loans | One-to-four-family Residential and Construction | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 946 | 851 | 721 | 1,051 | ||
Charge-offs | (1) | (23) | (1) | |||
Recoveries | 2 | 5 | ||||
Provision | (351) | (56) | (106) | (256) | ||
Balance at the end of the period | 597 | 794 | 597 | 794 | ||
Evaluated for Impairment: | ||||||
Collectively | 597 | 721 | ||||
Balance at the end of the period | 597 | 794 | 721 | 1,051 | 597 | 721 |
Real Estate Loans | Commercial Real Estate and Construction | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 5,313 | 2,836 | 3,313 | 2,761 | ||
Charge-offs | (121) | |||||
Recoveries | 7 | 8 | ||||
Provision | 665 | 330 | 2,664 | 526 | ||
Balance at the end of the period | 5,985 | 3,166 | 5,985 | 3,166 | ||
Evaluated for Impairment: | ||||||
Collectively | 5,985 | 3,313 | ||||
Balance at the end of the period | 5,985 | 3,166 | 3,313 | 2,761 | 5,985 | 3,313 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 278 | 295 | 310 | 312 | ||
Charge-offs | (13) | (59) | ||||
Recoveries | 3 | 6 | ||||
Provision | (5) | 3 | (24) | 42 | ||
Balance at the end of the period | 273 | 301 | 273 | 301 | ||
Evaluated for Impairment: | ||||||
Collectively | 273 | 310 | ||||
Balance at the end of the period | 273 | 301 | 310 | 312 | 273 | 310 |
Commercial Business | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 427 | 510 | 534 | 286 | ||
Charge-offs | (51) | |||||
Recoveries | 1 | |||||
Provision | 59 | (30) | 2 | 194 | ||
Balance at the end of the period | 486 | 480 | 486 | 480 | ||
Evaluated for Impairment: | ||||||
Collectively | 486 | 534 | ||||
Balance at the end of the period | 486 | 480 | 486 | 286 | 486 | 534 |
Other Loans | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 4 | 2 | 4 | 4 | ||
Charge-offs | (8) | (2) | (41) | |||
Recoveries | 1 | 1 | ||||
Provision | 7 | 2 | 38 | |||
Balance at the end of the period | 4 | 2 | 4 | 2 | ||
Evaluated for Impairment: | ||||||
Collectively | 4 | 4 | ||||
Balance at the end of the period | $ 4 | $ 2 | $ 4 | $ 4 | $ 4 | $ 4 |
Loans Receivable and Related_11
Loans Receivable and Related Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)securityloanitem | Sep. 30, 2020USD ($)securityloanitem | Dec. 31, 2019USD ($)loan | |
Financing Receivable, Recorded Investment [Line Items] | |||
Deferred loan costs of loans receivable | $ 1,500,000 | $ 1,500,000 | $ 233,000 |
Maximum deferment of payment term | 90 days | ||
Possible impairment of past due troubled debt restructuring | 200,000 | $ 200,000 | |
Average investment in impaired loans | 3,691,000 | $ 2,912,000 | |
Past due period for troubled debt restructuring | 90 days | ||
Threshold limit of watch list loans for external loan review | $ 100,000 | ||
Number of loans on non-accrual status | loan | 31 | 0 | |
Non-accrual status less than 90 days past due | 1,400,000 | $ 1,400,000 | |
Real Estate Acquired Through Foreclosure | 497,000 | 497,000 | $ 404,000 |
Paycheck Protection Program ("PPP") loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loan outstanding | $ 42,400,000 | $ 42,400,000 | |
Number of applications received | loan | 428 | 428 | |
Loan application fees received | $ 1,700,000 | $ 1,700,000 | |
Residential property | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Number of Real Estate Properties | item | 4 | 4 | |
Minimum | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Number of semi annual review loan relationship | security | 50 | 50 | |
Amount of new loan originations limit selected for external loan review | $ 200,000 | ||
Maximum | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Number of semi annual review loan relationship | security | 60 | 60 | |
Amount of new loan originations limit selected for external loan review | $ 500,000 | ||
Residential Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Percentage of loan portfolio | 34.00% | ||
Non Residential Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Percentage of loan portfolio | 24.20% | ||
Hotel And Motel Loans [Member | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loan outstanding | $ 15,500,000 | $ 15,500,000 | |
Amount of PPP loans outstanding | 153,000 | 153,000 | |
Restaurant Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loan outstanding | 7,600,000 | 7,600,000 | |
Amount of PPP loans outstanding | 2,900,000 | 2,900,000 | |
Construction Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Construction portfolio | 6,700,000 | $ 6,700,000 | |
PPP | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Paycheck Protection Program ("PPP") Loan term | 5 years | ||
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 | ||
Commercial Business | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Average investment in impaired loans | $ 614,000 | $ 610,000 |
Foreclosed Assets Held For Sa_2
Foreclosed Assets Held For Sale (Details) | Sep. 30, 2020USD ($)item | Dec. 31, 2019USD ($) |
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | $ 497,000 | $ 404,000 |
Residential property | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Number of properties | item | 4 | |
One-to-four family residential loans | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 785,000 | |
Commercial Real Estate and Construction | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | 934,000 | |
Home Equity Loans and Lines of Credit | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 53,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Options | ||||
Exercised (in shares) | (34,195) | (48,637) | (11,665) | |
Unearned ESOP Shares | ||||
Options | ||||
Outstanding at the beginning of the year | 247,781 | |||
Exercised (in shares) | (48,637) | |||
Outstanding at the ending of the year | 199,144 | 199,144 | 255,030 | 247,781 |
Exercisable (in shares) | 199,144 | 199,144 | ||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the year (in dollars per share) | $ 17.07 | |||
Exercise price (in dollars per share) | 16.91 | |||
Outstanding at the ending of the year (in dollars per share) | $ 17.11 | 17.11 | $ 17.09 | $ 17.07 |
Exercisable (in dollars per share) | $ 17.11 | $ 17.11 | ||
Weighted Average Remaining Contractual Term | 1 year 10 months 6 days | 2 years 5 months 19 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock (Details) - Restricted stock | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Restricted Shares | |
Non-vested shares at beginning (in shares) | shares | 1,944 |
Granted | shares | 6,353 |
Vested | shares | 125 |
Non-vested shares at ending (in shares) | shares | 8,172 |
Weighted Average Grant Date Price Per Share | |
Non-vested shares at the beginning of the period (in dollars per share) | $ / shares | $ 28.90 |
Granted | $ / shares | 28.25 |
Vested | $ / shares | 31.10 |
Non-vested shares at the end of the period (in dollars per share) | $ / shares | $ 28.36 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) | Mar. 10, 2020shares | Feb. 05, 2020shares | Mar. 12, 2019shares | Feb. 26, 2019shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)itemshares | Sep. 30, 2019USD ($) |
Stock Based Compensation | ||||||||
Number of stock option plan | item | 2 | |||||||
Standard Financial Corp. 2012 Equity Incentive Plan (the "2012 Plan") | ||||||||
Stock Based Compensation | ||||||||
Number of shares available to be issued | shares | 101,144 | 101,144 | ||||||
Restricted stock | ||||||||
Stock Based Compensation | ||||||||
Compensation expense | $ | $ 40,000 | $ 23,000 | $ 108,000 | $ 58,000 | ||||
Unrecognized compensation expense | $ | $ 129,000 | $ 129,000 | ||||||
Restricted stock | Directors and officers | ||||||||
Stock Based Compensation | ||||||||
Number of shares available to be issued | shares | 66,235 | 66,235 | ||||||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | Directors and officers | ||||||||
Stock Based Compensation | ||||||||
Aggregate number of shares reserved for issuance under the 2011 Equity Incentive Plan | shares | 3,058 | 1,820 | ||||||
Vesting period | 11 months | |||||||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | Employee | ||||||||
Stock Based Compensation | ||||||||
Aggregate number of shares reserved for issuance under the 2011 Equity Incentive Plan | shares | 3,295 | 2,727 | ||||||
Vesting percentage per year | 33.00% | |||||||
Vesting period | 3 years | 34 months | ||||||
Unearned ESOP Shares | ||||||||
Stock Based Compensation | ||||||||
Vesting period | 11 months | |||||||
Compensation expense | $ | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Unrecognized compensation expense | $ | $ 0 | $ 0 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Stock Ownership Plan | ||||
Number of years of service to be completed to participate in the plan | 1 year | |||
Employees vesting rate in ESOP account after two years of service (as a percent) | 20.00% | |||
Employees vesting rate in ESOP account after three years of service (as a percent) | 40.00% | |||
Employees vesting rate in ESOP account after four years of service (as a percent) | 60.00% | |||
Employees vesting rate in ESOP account after five years of service (as a percent) | 80.00% | |||
Employees vesting rate in ESOP account after six years of service (as a percent) | 100.00% | |||
Stock purchased by the ESOP, funded by loan (in shares) | 278,254 | |||
ESOP expense | $ 76,000 | $ 98,000 | $ 260,000 | $ 307,000 |
Total shares held by ESOP | 249,404 | 249,404 | ||
Unallocated shares | 144,548 | 144,548 | ||
Fair market value of the unallocated ESOP shares | $ 4,700,000 | $ 4,700,000 |
Pension Information (Details)
Pension Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Information | ||||
Interest Cost | $ 25 | $ 31 | $ 75 | $ 93 |
Expected return on plan assets | (32) | (32) | (96) | (96) |
Amortization of net loss | 3 | 2 | 8 | 6 |
Net periodic pension (benefit) cost | $ (4) | $ 1 | $ (13) | $ 3 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets measured at fair value | ||
Total investment securities available for sale | $ 86,057 | $ 69,884 |
Equity securities | 2,252 | 2,955 |
Mortgage-backed securities available for sale | 88,568 | 91,478 |
Recurring basis | ||
Assets measured at fair value | ||
Total investment securities available for sale | 86,057 | 69,884 |
Equity securities | 2,252 | 2,955 |
Mortgage-backed securities available for sale | 88,568 | 91,478 |
Total recurring fair value measurements | 176,877 | 164,317 |
Recurring basis | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,003 | 8,489 |
Recurring basis | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 5,239 | 2,579 |
Recurring basis | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 76,815 | 58,816 |
Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Equity securities | 2,252 | 2,955 |
Total recurring fair value measurements | 2,252 | 2,955 |
Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 86,057 | 69,884 |
Mortgage-backed securities available for sale | 88,568 | 91,478 |
Total recurring fair value measurements | 174,625 | 161,362 |
Recurring basis | Level 2 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,003 | 8,489 |
Recurring basis | Level 2 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 5,239 | 2,579 |
Recurring basis | Level 2 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | $ 76,815 | $ 58,816 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Nonrecurring (Details) - Nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 497 | $ 404 |
Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 497 | 404 |
Foreclosed real estate | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 497 | 404 |
Foreclosed real estate | Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 497 | $ 404 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Additional quantitative information (Details) - Nonrecurring basis - Level 3 $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate | $ 497 | $ 404 |
Appraisal Of Collateral | Appraisal adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate, unobservable input (in percent) | 0 | |
Appraisal Of Collateral | Appraisal adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate, unobservable input (in percent) | 30 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Fair value hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | $ 580,378 | $ 489,339 |
Time deposits | 227,232 | 245,114 |
Carrying Amount | ||
Financial Instruments - Assets: | ||
Loans receivable | 743,991 | 712,965 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 580,378 | 489,339 |
Time deposits | 227,232 | 245,114 |
Long-term borrowings | 96,078 | 99,098 |
Estimated Fair Value | ||
Financial Instruments - Assets: | ||
Loans receivable | 750,666 | 721,197 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 580,378 | 489,339 |
Time deposits | 232,657 | 247,456 |
Long-term borrowings | 99,243 | 100,032 |
Level 1 | ||
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 580,378 | 489,339 |
Level 3 | ||
Financial Instruments - Assets: | ||
Loans receivable | 750,666 | 721,197 |
Financial Instruments - Liabilities: | ||
Time deposits | 232,657 | 247,456 |
Long-term borrowings | $ 99,243 | $ 100,032 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | $ 1,142 | |||
Total other comprehensive (loss) income | $ (297) | $ 258 | 1,059 | $ 2,861 |
Balance at the end of the period | 2,201 | 2,201 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | 2,498 | 1,259 | 1,142 | (1,344) |
Other comprehensive income before reclassification | (281) | 256 | 1,071 | 2,854 |
Amount reclassified from accumulated other comprehensive income | (16) | 2 | (12) | 7 |
Total other comprehensive (loss) income | (297) | 258 | 1,059 | 2,861 |
Balance at the end of the period | 2,201 | 1,517 | 2,201 | 1,517 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains on Available for Sale Securities | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | 2,738 | 1,496 | 1,386 | (1,103) |
Other comprehensive income before reclassification | (281) | 256 | 1,071 | 2,854 |
Amount reclassified from accumulated other comprehensive income | (18) | 0 | (18) | 1 |
Total other comprehensive (loss) income | (299) | 256 | 1,053 | 2,855 |
Balance at the end of the period | 2,439 | 1,752 | 2,439 | 1,752 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | (240) | (237) | (244) | (241) |
Amount reclassified from accumulated other comprehensive income | 2 | 2 | 6 | 6 |
Total other comprehensive (loss) income | 2 | 2 | 6 | 6 |
Balance at the end of the period | $ (238) | $ (235) | $ (238) | $ (235) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Significant amounts reclassified (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on sales of securities | $ 23 | $ 23 | $ (1) | |
Other operating expenses | 1,079 | $ 1,051 | 3,270 | 3,093 |
Income tax expense | 508 | 707 | 876 | 1,837 |
Net income | 2,237 | 2,464 | 4,484 | 6,731 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | (16) | 2 | (12) | 7 |
Net income | (16) | 2 | (12) | 7 |
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 | (23) | (23) | 1 | |
Income tax expense | 5 | 5 | ||
Net of tax | (18) | 0 | (18) | 1 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | (1) | |||
Net of tax | 2 | 2 | 6 | 6 |
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 | 2 | 8 | $ 7 |
Income tax expense | (1) | (2) | ||
Net of tax | $ 2 | $ 2 | $ 6 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Noninterest Income | ||||
Noninterest income (In-scope of Topic 606) | $ 908 | $ 949 | $ 2,719 | $ 2,687 |
Noninterest income (out-of-scope of Topic 606) | 1,076 | 538 | 1,135 | 1,032 |
Noninterest income | 1,984 | 1,487 | 3,854 | 3,719 |
Accounting Standards Update 2014-09 (Topic 606) | Service charges | ||||
Noninterest Income | ||||
Noninterest income (In-scope of Topic 606) | 752 | 777 | 2,214 | 2,146 |
Accounting Standards Update 2014-09 (Topic 606) | Investment management fees | ||||
Noninterest Income | ||||
Noninterest income (In-scope of Topic 606) | $ 156 | $ 172 | $ 505 | $ 541 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 1,519 | $ 1,881 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 | 108 | |
2021 | 353 | |
2022 | 326 | |
2023 | 326 | |
2024 | 325 | |
2025 | 81 | |
Total | $ 1,519 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill and Other Intangibles | ||
Goodwill | $ 25,836 | $ 25,836 |
Core deposit intangible | 1,519 | $ 1,881 |
Accumulated amortization of core deposit intangible | $ 2,600 |